$FNMA #FANNIEGATE

The U.S. Court of Appeals for the Federal Circuit issued its decision today affirming dismissal of the lawsuit filed by Mr. Piszel, Freddie's former CFO, in the Court of Federal Claims.  The Federal Circuit agrees with Mr. Piszel that the rights under his employment contract were a cognizable Fifth Amendment property interest.  The Federal Circuit disagrees with the government's position that a breach of contract suit was a prerequisite to asserting a takings claim.  The Federal Circuit faults Mr. Piszel for not filing a breach of contract suit against Freddie Mac in Virginia state court before the statute of limitation expired and for not alleging in his complaint filed in the Court of Federal Claims that a lawsuit in Virginia would have been futile.  A copy of today's ruling is attached to this e-mail message.15-5100-0068