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Texas Lawyers Insurance Exchange v. Resolution Trust Corp.

United States District Court for the Western District of Texas
822 F. Supp. 380 (1993)


Facts

Texas Lawyers Insurance Exchange (TLIE) (plaintiff) was a legal malpractice insurance company. TLIE provided malpractice insurance policies to the law firm of Eikenburg & Stiles. Resolution Trust Corporation (RTC) (defendant) was involved in litigation against Eikenburg & Stiles. RTC issued a subpoena duces tecum to TLIE seeking production of documents related to Eikenburg & Stiles pursuant to 12 U.S.C. § 1818(n). Under § 1818(n), an agency or party to proceedings brought pursuant to that section may seek to enforce a subpoena through the district courts. TLIE maintained that the documents subpoenaed were privileged and brought suit in district court to quash or modify the subpoena duces tecum. TLIE argued that the district court had jurisdiction to hear the motion to quash because, otherwise, § 1818(n) would subject TLIE to immediate prosecution if it failed to comply with the subpoena. RTC moved to dismiss the action on the ground that § 1818(n) was not self-executing. RTC argued that, because RTC was required to first initiate a court action to compel compliance, the district court lacked jurisdiction. The magistrate judge issued a report finding the subpoena was not self-executing and recommending the district court dismiss the case for lack of jurisdiction.

Rule of Law

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Issue

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Holding and Reasoning (Nowlin, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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