Federal Deposit Insurance v. Sumner Financial Corp.

JOHN R. BROWN, Chief Judge:

This case raises an interesting jurisdictional problem. In 1970, the Federal Deposit Insurance Corporation (FDIC), suing as the receiver of an insolvent Michigan state bank and as the subrogee of the rights of certain of the depositors, brought suit against the defendants alleging that they had conspired to fraudulently convert some $3 million of the bank’s funds. Some two and one-half years later, near the end of the trial, counsel for FDIC announced that he had discovered a case that called into seri*672ous question the Court’s subject matter jurisdiction.1 The trial…