The Georgia Court of Appeals recently affirmed a trial court’s dismissal of a county’s claim on developer bonds based on its failure to exhaust administrative remedies. Douglas County v. Hamilton State Bank, — Ga. App. –, A16A1708 (Mar. 16, 2017). Specifically, because the bank was under FDIC receivership, the County was required to pursue administrative remedies under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (the “Act”).
While the Court agreed that the developer bonds were not “assets” under the Act, another section of the Act applies to claims “relating to any act or omission of the [failed bank] or [FDIC as receiver].” Thus, even though the developer bonds were considered liabilities, the County was required to exhaust administrative remedies.
Read the opinion here.