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Case Citations [1] (July 2020 - April 2021)

handle is hein.ali/rethrida0135 and id is 1 raw text is: AGENCY 3D CHAPTER 1. INTRODUCTORY MATTERS TOPIC 1. DEFINITIONS AND TERMINOLOGY § 1.01 Agency Defined Ct.Fed.C1.2020. Com. (f) quot. in case quot. in sup. In a shareholder-derivative action, shareholders of the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) sued the United States, alleging that the director of the Federal Housing Finance Agency (Agency), through his conservatorship of Freddie Mac and Fannie Mae pursuant to federal law following the 2008 financial crisis, breached his fiduciary duties by acquiescing to an amendment to a preferred stock purchase agreement with the United States Department of the Treasury (Treasury) that imposed substantially unfair terms on Freddie Mac and Fannie Mae, and that the Treasury illegally exacted money from Freddie Mac and Fannie Mae pursuant to the amendment. This court denied defendant's motion to dismiss on other grounds, holding that it did not have jurisdiction to entertain plaintiffs' claims on the theory that director's actions were attributable to defendant because he was an agent of the United States. The court looked to a U.S. Supreme Court case quoting Restatement Third of Agency § 1.01, Comment f, in reasoning that the Treasury did not control director's conduct as required to sustain a finding that director was the Treasury's agent, because federal statutes explicitly stated that Agency was not subservient to any other agency, the record did not indicate that the Treasury exercised any control notwithstanding the statutory bar, and the Treasury urging Agency to pursue conservatorship and pushing for amendments to the stock-purchase agreement did not rise to the level of control necessary to establish a principal-agent relationship. Appaloosa Investment Limited Partnership I v. United States, 148 Fed.Cl. 679, 697-698. Ct.Fed.C1.2020. Com. (f)(1) quot. in case quot. in sup. Owners of stock in government-sponsored enterprises that operated in the housing market sued the United States, which had appointed a conservator for the enterprises during a financial crisis, challenging the conservator's decision to amend funding agreements between the enterprises and the Department of the Treasury, which caused plaintiffs to lose their economic interests in the enterprises. This court granted defendant's motion to dismiss, holding, among other things, that the conservator's actions were not attributable to defendant, because it was not defendant's agent. The court explained that, under Restatement Third of Agency § 1.01, an essential element of agency was the principal's right to control the agent's actions, and plaintiffs failed to allege facts establishing that the Department of the Treasury exercised control over the conservator. Arrowood Indemnity Company v. United States, 148 Fed.Cl. 299, 319. Ct.Fed.C1.2020. Com. (f) quot. in case quot. in sup. In a shareholder-derivative action, shareholders of the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) filed a putative class action against the United States, alleging that the director of the Federal Housing Finance Agency (Agency), through his conservatorship of Freddie Mac and Fannie Mae pursuant to federal law following the 2008 financial crisis, breached his fiduciary duties by acquiescing to an amendment to a preferred stock purchase agreement with the United States COPYRIGHT ©2021 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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