LOS ANGELES (5/10/13)--The National Credit Union Administration Wednesday asked a federal court hearing its residential mortgage-backed securities lawsuit against Goldman Sachs in Los Angeles to reconsider that court's dismissal of certain claims or certify the ruling for interlocutory appeal to a higher court.
U.S. District Court of the Central District of California--Western Division Judge George Wu on Sept. 4 had dismissed several claims that NCUA made against the bank, ruling that the statute that allows for extension of the time period for filing a suit "does not apply to "statutes of repose" because the statute uses the phrase "statute of limitations." That meant NCUA did not file the suit within the period allowed for several of the securities certificates in question.
However, Congress provided that "'the statute of limitations with regard to any action brought by the board as conservator or liquidating agent shall be' at least three years from 'the date of the appointment of the board as conservator or liquidating agent,'" said NCUA's motion for reconsideration.
NCUA cited new contrary rulings by other federal courts hearing similar lawsuits brought by the agency against Wall Street banks and seeking recompensation for losses related to the securities sold to several corporate credit unions. The losses led to the conservatorship of those corporates. NCUA filed the suits in its role of liquidating agency for U.S. Central FCU and Western Corporate FCU.
In its motion, NCUA maintained that the U.S. Court of Appeals for the Second Circuit recently issued a contrary ruling that said, "although the statutes of limitations and statutes of repose are distinct in theory, the courts--including the Supreme Court and this court--have long used the term 'statutes of limitations' to refer to statutes of repose."
In addition, the agency noted that courts in the Second Circuit, Southern District of New York, District of Kansas and the Central District of California "have disagreed with this court's interpretation of the language," according to the document filed in court.
"NCUA respectfully submits that the reasoning of these courts is persuasive, and on that basis, seeks reconsideration of this court's prior ruling that" the law does not displace statutes of repose. "In the alternative, NCUA asks this court to certify that question for interlocutory appeal," the document said.