Nearly a decade ago, several local banks were closed by the Utah Department of Financial Institutions (UDFI). The owners of one of these banks, America West Bank, sued the state of Utah via the UDFI and the Commissioner of Financial Institution asserting that seizure of the Bank was unlawful and done without sufficient cause and evidence.
On February 6, 2018, the U.S. District Court, Judge Clark Waddoups (Case No. 2:16-cv-326-CW-EJF) ruled that America West Bank Members (“AWBM”), the owners of the Bank, had sufficiently alleged in their Complaint that prior to the seizure of America West Bank’s assets in 2009, the Bank should have received a non-arbitrary, fair and impartial hearing.
Judge Waddoups found that AWMB’s Complaint properly alleged that constitutionally guaranteed rights of due process had not been upheld by the government at the time of seizure.