Federal Deposit Insurance Corp. v. Meyer

The statute establishing the Federal Savings and Loan Insurance Corporation (FSLIC) (defendant) enabled FSLIC to sue and be sued. However, the Federal Tort Claims Act (FTCA) stated that if a lawsuit was cognizable under the FTCA, this remedy was exclusive, meaning that a plaintiff could not sue a federal agency in its own name pursuant to another statute. FSLIC was appointed as receiver for Fidelity Savings and Loans Association (Fidelity). In this role, FSLIC fired John Meyer (plaintiff), a Fidelity executive. Meyer sued FSLIC in the United States District Court for the Northern District of California, claiming that FSLIC violated his constitutional rights by taking his property without due process. Meyer sought to extend the implied right of action granted by Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics from individual federal employees to federal agencies. A jury found in favor of Meyer and awarded a $130,000 judgment against FSLIC. The Federal Deposit Insurance Corporation (FDIC), successor to FSLIC, appealed, arguing that the agency had sovereign immunity. The United States Court of Appeals for the Ninth Circuit affirmed the judgment, ruling that Meyer’s claim against FSLIC was valid because the claim was not cognizable under the FTCA and because FSLIC’s enabling legislation waived its sovereign immunity. The United States Supreme Court granted certiorari.