Coy U. Spawn, Jr. v. Western Bank--Westheimer, Federal Deposit Insurance Corporation

KING, Circuit Judge:

The FDIC, in its corporate capacity as insurer of bank deposits, appeals from the district court’s final judgment, which awarded Coy Spawn prejudgment interest and attorney’s fees in connection with his claim for deposit insurance. As discussed below, we conclude (a) that the FDIC is immune from awards of prejudgment interest in the context of its decisions regarding deposit insurance, and (b) that the district court abused its discretion in determining that the FDIC’s position was not substantially justified for purposes of the Equal Access to Justice Act. We therefore…