Background
Michael Kelly and his banking entities sued the government after losing assets during the two thousand eight financial crisis when government-sponsored enterprises entered conservatorship. The banks alleged breach of contract and unconstitutional taking. The Court of Federal Claims dismissed the case as time-barred under the six-year statute of limitations.
The court’s reasoning
The court held that the six-year statute of limitations in Section twenty-eight of the United States Code, Section two thousand five hundred and one is not subject to tolling under American Pipe. This decision implicitly overrules a portion of Bright versus United States regarding tolling in this context.
We affirm and hold that 28 U.S.C. § 2501 is not subject to American Pipe tolling.
What it means going forward
Banks and other plaintiffs must file claims in the Court of Federal Claims within six years of accrual without relying on tolling from related class actions.