(CN) - The Court of Federal Claims ruled against a Renton, Wash., family who sought to recover the $200,000 it lost when the federal government seized Washington Mutual and sold it to JP Morgan Chase in 2008.
Job, Corvilia and Grace Thykkuttathil filed a pro se takings claim after the bank's seizure and sale, contending they have suffered a loss totaling $195,413. They also claimed that the bank had not failed at the time of the seizure and sale.
The claims court in Washington, D.C., held that government seizure of a bank is not a valid takings claim in federal court, regardless of whether it failed or not.
The court ruled that it "must conform to binding precedent on this issue," and that a "takings claim will not lie for the seizure of a bank by federal regulators, even if an allegation is made that the seized bank had not yet failed when it is seized."
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