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United States Court of Appeals for the Eleventh Circuit - 812 F.2d 640
tl;dr:
This case is an example of a motion for impleader being dismissed, as it fails to meet the requirement of the third party defendant being liable to the defendant for all or part of their claim.Video Summary
Case Summary
In the 1987 case United States v. Olavarrieta, the Eleventh Circuit Court of Appeals made an important decision regarding student loans and third-party claims in civil lawsuits. The plaintiff, the United States, had guaranteed Jose Olavarrieta's student loans which he had borrowed from Inter-National Bank of Miami. After Olavarrieta failed to repay his loans, the government paid the bank and then sued Olavarrieta for the money. He, in turn, filed a third-party claim against the University of Florida and the Board of Regents, alleging that they had breached their contract with him by not awarding him a J.D. degree.
The district court ruled in favor of the government, stating that Olavarrieta owed the money and that his defenses were not valid. It dismissed the third-party claims against the University of Florida and the Board of Regents due to reasons such as lacking the capacity to be sued, insufficient service of process, and claims being barred by the statute of limitations. Olavarrieta appealed both orders to the Eleventh Circuit.
The Eleventh Circuit agreed with the district court's decision and found that Olavarrieta had no valid defenses for his liability in repaying the student loans. It also concluded that the dismissal of the third-party claims was correct.
This case is significant because it demonstrates how courts apply federal and state laws in deciding whether summary judgment is suitable in student loan cases and if third-party claims can be maintained against state entities. It also highlights the importance of meeting procedural requirements and following statutes of limitations for litigation to proceed properly.
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The United States filed a lawsuit against Jose Olavarrieta to collect unpaid student loans. Olavarrieta filed a third party complaint against the University of Florida and the Board of Regents of the Division of Universities of the Florida Department of Education, seeking indemnification. The district court dismissed the University of Florida's motion and granted the Board of Regents' motion to dismiss. The district court also granted the United States' motion for summary judgment. Olavarrieta appealed all three orders, which were consolidated. The Court has jurisdiction over the appeal and has held that the district court properly dismissed the third party complaint against the University of Florida because it lacks the capacity to be sued in its own name under Florida law. The district court was correct in dismissing Olavarrieta's third party complaint against the Board of Regents as he failed to state any legal or factual grounds for indemnification. The district court was also correct in granting summary judgment in favor of the government as the government's cause of action accrued when it paid the lender, not when it became the holder-in-due-course of the promissory notes, and therefore the action was not barred by the statute of limitations.
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