Federal Savings and Loan Insurance Corporation v. Glen Ridge I Condominiums

This is an appeal by Petitioner Federal Savings and Loan Insurance Corporation ("FSLIC") from a judgment of the court of appeals declaring portions of the federal Financial Institutions Supervisory Act of 1966 and the National Housing Act of 1934 unconstitutional. The trial court dismissed the action of respondents pursuant to 12 U.S.C. § 1464(d)(6)(c) (a part of the Financial Institutions Supervisory Act of 1966) and 12 U.S.C. § 1729(d) (a part of the National Housing Act of 1934). The court of appeals reversed the judgment of the trial court and remanded the cause, finding that both sections violated Article III of the United States Constitution. 734 S.W.2d 374. Although a majority of the court disagrees with that finding, we agree with the courts judgment that the district court has jurisdiction over the investors claims. Accordingly, FSLICs application for writ of error is denied.