Federal Deposit Insurance v. Shoop

KLEINFELD, Circuit Judge:

The FDIC sued on a promissory note for FSLIC as successor to a failed savings and loan association. The debtors on the note claim that the suit is barred by Montana’s “one action rule.” Montana and several other states have a statute providing for “but one action” on a mortgage and the promissory note secured by it. The district court granted summary judgment for the FDIC, but we reverse.1

I. Facts.

In 1980, Bill Boyer and Jeff Shoop bought a business and associated real estate from Virginia O’Brien. They bought the real estate on a contract, with the deed to be held in…