Tentacles Of Bank Failure Reach Wrongful Termination Case.

When a bank failed, the Federal Deposit Insurance Corporation [FDIC] promptly published notices informing creditors where, when and how to file claims against the failed bank. Six months after the end of the time to file a claim, plaintiff filed his wrongful termination action against the failed bank. The takeover bank successfully moved to compel arbitration, and the arbitrator dismissed the case due to plaintiff’s failure to exhaust his administrative remedy. The trial court confirmed the arbitration “award” of dismissal of the case. Plaintiff appealed, and the appellate court agreed with plaintiff’s contention the arbitration agreement was unenforceable, but went a lot further than plaintiff wanted to go with that line of reasoning, concluding plaintiff’s failure to timely comply with the administrative procedure created a complete jurisdictional bar to his claims. The matter was remanded to the trial court for dismissal due to a lack of subject matter jurisdiction.  (Saffer v. JP Morgan Chase Bank (Cal. App. Second Dist., Div. 8; April 29, 2014)225 Cal.App.4th 1239.)