Coleman v. Federal Intermediate Credit Bank

600 F. Supp. 97, 1984 U.S. Dist. LEXIS 21310
CourtDistrict Court, D. Oregon
DecidedDecember 12, 1984
DocketNo. CV 84-6251E-PA
StatusPublished
Cited by2 cases

This text of 600 F. Supp. 97 (Coleman v. Federal Intermediate Credit Bank) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coleman v. Federal Intermediate Credit Bank, 600 F. Supp. 97, 1984 U.S. Dist. LEXIS 21310 (D. Or. 1984).

Opinion

OPINION

PANNER, Chief Judge.

This action involves essentially the same parties as were before me in VanLeeuwen v. The Farm Credit Administration, CV 83-1413-PA. VanLeeuwen was dismissed after the parties signed and filed a Settlement Agreement on May 15, 1984. Plaintiffs Herbert C. Coleman and Fred Kaser were plaintiffs in VanLeeuwen. The Farm Credit Administration (FCA), the Federal Intermediate Credit Bank of Spokane, Washington (FICB), and Donald Wilkinson, defendants in the present action, were defendants in VanLeeuwen.

Plaintiffs in the present case attempt to bring their claims as a class action under Fed.R.Civ.P. 23.1 (FRCP 23.1). Plaintiffs allege: (1) tortious interference with a contractual relationship by defendants in declaring the Willamette Production Credit Association (WPCA) to be in default; (2) tortious interference with a contractual relationship by improperly cutting off plaintiffs’ loan funds; (3) tortious interference with a contractual relationship by freezing WPCA stock from August 10, 1983 through May 21, 1984; (4) breach of fiduciary duties by the FICB and its directors; (5) misrepresentation by Larry K. Butter-field in a letter to WPCA stockholders relating to the new audit, dissolution of WPCA, and formation of a new production credit association; (6) violation of Oregon securities law by the FICB in approving the allegedly inaccurate forty-ninth financial statement of the WPCA; (7) defamation by defendants Larry Edwards and Donald Wilkinson by publishing false information about the WPCA, its directors, and the quality of its loans; and (8) conspiracy to violate the Farm Credit Act by usurping control of production credit associations and centralizing this control in federal agencies.

[99]*99The federal defendants and nonfederal defendants have each filed a motion to dismiss. Defendants move to dismiss the complaint on these grounds:

(1) Res judicata;

(2) The federal defendants are protected by absolute immunity, and, in some cases, prosecutorial immunity;

(3) Plaintiffs failed to comply with the requirements of FRCP 23.1;

(4) The John Doe defendants were not proper parties; and

(5) The court lacks personal jurisdiction over all federal defendants.

For the reasons stated below, I grant both defendants’ motions and dismiss this case with prejudice.

DISCUSSION

1. Res Judicata.

Oregon law determines whether res judicata bars plaintiffs’ action. Erie Railroad v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938). Oregon requires a plaintiff to seek and exhaust all alternate grounds or theories for recovery in one action. Dean v. Exotic Veneers, Inc., 271 Or. 188, 531 P.2d 266 (1975). The plaintiff must combine in a single action all available legal theories arising from a single cause of action. The cause of action is an “aggregate of operative facts giving rise to a right or rights.” Id. at 196, 531 P.2d at 269. See also Fox v. Firestone Tire & Rubber Co., CV 83-6468-RE (D.Or. Sept. 27, 1984).

In VanLeeuwen plaintiffs contended that the FCA improperly devalued security on loans and charged off assets when performing a special audit of the association’s books. See VanLeeuwen, supra, at 2. They contended that FCA auditors acted arbitrarily in making many of the individual calculations underlying their decisions and that the FCA violated its own regulations in performing the special audit. Id.

Plaintiffs’ present claims of tortious interference with the contractual relationship by declaring WPCA in default, cutting off loan funds, and freezing stock are all claims which were previously brought before this court in the VanLeeuwen litigation. Claims of breach of fiduciary duty, misrepresentation, conspiracy, securities violations, and defamation are claims which arose from the same operative facts giving rise to the VanLeeuwen litigation. If they were not before the court, they should have been.

During oral argument on this motion, plaintiffs’ counsel conceded that at the time of the VanLeeuwen stipulation he could have asked for the same relief he asks for in the present case. The present action is barred by res judicata.

2. Immunity.

A. Absolute Immunity.

Plaintiffs have named defendants in the present case who were not named in the VanLeeuwen litigation. Their claims against these defendants are barred by immunity. Federal executive officials are absolutely immune for alleged violations of care arising out of ordinary tort law if the officials are acting within the scope of their offices. Barr v. Matteo, 360 U.S. 564, 79 S.Ct. 1335, 3 L.Ed.2d 1434 (1959). This absolute immunity is not altered by allegations of malice. Spalding v. Vilas, 161 U.S. 483, 16 S.Ct. 631, 40 L.Ed. 780 (1896).

When the alleged violation is one of state tort or statutory law, the immunity is absolute. Miller v. DeLaune, 602 F.2d 198 (9th Cir.1979). This absolute immunity applies only if the court finds that defendants were acting within the outer perimeter of their duties when they performed the complained of acts. Mir v. Fosburg, 646 F.2d 342 (9th Cir.1980) (federal defendants absolutely immune from claims of defamation and intentional infliction of emotional distress if actions were within outer perimeter of their duties). This immunity applies to discretionary actions. Barr at 523.

Each of the claims made against the federal defendants alleges a common law tort or a violation of a state statute. They [100]*100are therefore absolutely immune from suit if their duties were discretionary and the complained of acts were within the outer perimeter of these duties.

Federal defendant Wilkinson is governor of the FCA. The governor of the FCA is responsible for the execution of all of the administrative functions and duties of the FCA. 12 U.S.C. § 2244 (1980); see also 12 C.F.R. § 600.3. The enumerated powers of the FCA include the power to:

(11) Regulate the borrowing, repayment, and transfer of funds and equities between institutions of the System.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Narvis Nonnette v. Gavin Newsom
C.D. California, 2021
Shannon v. Recording Industry Ass'n of America
661 F. Supp. 205 (S.D. Ohio, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
600 F. Supp. 97, 1984 U.S. Dist. LEXIS 21310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coleman-v-federal-intermediate-credit-bank-ord-1984.