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team headed up by former Solicitor General Rex E. Lee, contended
that there was a recurring conflict among the circuits as to
whether Federal or State law should apply to proceedings under
federally guaranteed private loans such as the partnership’s FFB
loan. In its brief in opposition to the petition for writ of
certiorari, the United States did not suggest that ANR lacked
authority or standing to pursue that litigation. On November 2,
1987, the Supreme Court denied the petition for writ of
certiorari, and the foreclosure litigation came to an end.
The Partnership’s Ratification of ANR’s Appeal
The partners had monitored the appeal and petition for writ
of certiorari. On September 3, 1987, the partnership’s
management committee had adopted resolutions that expressly
ratified ANR’s actions relating to the foreclosure litigation.
By its terms, the ratification was effective retroactive to the
date these actions were taken by ANR, as if ANR “had obtained the
prior authorization of the Management Committee”. The
resolutions also authorized the partnership’s legal committee to
determine the manner in which the litigation would be conducted
on the partnership’s behalf in the event the Supreme Court
granted the petition for writ of certiorari.
Discharge of Remaining Debt
As previously noted, ANRC owned the outstanding stock of
ANG, which was the project administrator. ANRC had pledged this
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