Feigel v. Federal Deposit Insurance

935 F. Supp. 1090, 1996 U.S. Dist. LEXIS 19570
CourtDistrict Court, S.D. California
DecidedMay 22, 1996
DocketCivil No. 95-1934-BTM(AJB)
StatusPublished
Cited by4 cases

This text of 935 F. Supp. 1090 (Feigel v. Federal Deposit Insurance) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Feigel v. Federal Deposit Insurance, 935 F. Supp. 1090, 1996 U.S. Dist. LEXIS 19570 (S.D. Cal. 1996).

Opinion

MEMORANDUM DECISION AND ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT AND DENYING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT

MOSKOWITZ, District Judge.

INTRODUCTION

The parties have filed cross-motions for summary judgment. The plaintiffs, four former directors of Home Federal Savings & Loan Association, subsequently HomeFed Bank, F.S.B. (“HomeFed”), contend that they are entitled to retirement benefits pursuant to a Director’s Retirement Plan instituted by HomeFed in 1987. On July 6, 1992 the RTC was appointed receiver for Ho-meFed. The FDIC has since replaced the RTC and asserts that the court does not have subject matter jurisdiction over plaintiffs’ claims because the plaintiffs failed to properly exhaust their administrative remedies pursuant to the Financial Reform, Recovery and Enforcement Act of 1989, Pub.L. No. 101-73, 103 Stat. 548 (August 9, 1989) (“FIRREA”), 12 U.S.C. §§ 1821(d)(5)-(6). A hearing on the cross-motions for summary judgment was held on May 10,1996.

BACKGROUND

On November 24, 1987, HomeFed approved and adopted a Director’s Retirement Plan (the “Plan”) specifically covering current and future non-employee directors joining HomeFed’s Board of Directors. (Complaint at ¶5). Each of the individual plaintiffs qualified for benefits under the Plan at the time of its 1987 adoption by virtue of having served three or more years on the board of directors. (Id. at ¶ 13). On August 22, 1991, HomeFed voted to suspend the Plan by deferring any unvested payments until HomeFed returned to capital compliance. (Id.) Prior to the suspension of the Plan only one of the individual plaintiffs, Jack C. Feigel (“Feigel”) retired and began receiving Plan benefits. Feigel began receiving his benefits in March 1989. (Feigel Declaration at ¶7). Plaintiff Terry Lingerfelder (“Lingerfelder”) retired in February 1992 and plaintiffs T.C. Young (“Young”) and Owen W. Strange (“Strange”), retired in April 1992. Ho-meFed did not pay benefits to either Ling-erfelder, Strange or Young upon their retirement. Other than payments made to Feigel, no monies were paid to any of the plaintiffs pursuant to the Plan. Feigel stopped receiving benefits in July 1992.

On July 6,1992, the Office of Thrift Supervision (“OTS”) appointed the RTC as receiver for HomeFed.1 (Complaint at ¶ 5). Thereafter, the RTC, as receiver for Ho-meFed, repudiated the Plan pursuant to 12 U.S.C. § 1821(e) on the basis that it was [1094]*1094burdensome and that its repudiation and dis-affirmance would promote the orderly administration of HomeFed. (See Complaint at ¶ 17(a), (b), (c) and (d)).

On July 10, 1992, August 10, 1992 and September 10, 1992, the RTC caused a “Notice to Creditors” of HomeFed to be published in the San Diego Union Tribune and Los Angeles Times. (Declaration of Clarke Adams (“Adams Decl.”) at Exs. A and B). The Notice to Creditors stated that all claims by creditors against the assets of HomeFed needed to be filed on or before October 13, 1992. In addition to these published notices, the RTC mailed two separate notices to the plaintiffs prior to the October 13,1992 claims bar date informing them of the need to file proofs of claims. (Adams Decl. at ¶6 and Exs. I, J, L and M). On September 16,1992, the RTC also mailed a letter entitled “Potential Claimant” to the plaintiffs informing them of the date for filing claims. (Id. at ¶ 7 and Exs. N, O, P and Q).

The plaintiffs do not dispute that they received the required notice for filing claims pursuant to 12 U.S.C. § 1821(d)(3)(B). Plaintiffs Lingerfelder, Young and Strange each responded in interrogatories that they had learned of the appointment of a receiver for HomeFed on July 6, 1992. (Declaration of Carl P. Luckadoo (“Luekadoo Decl.”) at Exs. F, G, H and I). Plaintiff Feigel learned of the appointment of a receiver on September 30, 1992. (Id. at Ex. E). More importantly, three of the plaintiffs, Young, Linger-felder and Strange, actually filed claims against HomeFed with the RTC other than for benefits under the Plan on or before the October 13, 1992 notice date. (Adams Decl. at ¶4 and Exs. C, D, E, F, G and H).

Another HomeFed outside director, Terence P. Daly, who was also eligible for benefits under the Plan, filed a claim for benefits under the Plan prior to the October 13, 1992 deadline. This claim was litigated in the district court in Daly v. RTC, 94-0027-T (S.D.Cal.1994). In Daly, the court addressed the issue of whether the terms of the Plan had vested prior to repudiation by the RTC and whether Daly was entitled to recover his retirement benefits. District Judge Turren-tine held that Daly was entitled to receive Plan benefits and that “since [Daly] was vested prior to suspension of the Plan, the August 21, 1991 suspension did not affect his right to demand payments....” (Complaint at Ex. B, Order Re: Motions For Summary Judgment, filed August 26, 1994 at 4). The court further held that Daly was entitled to all benefits other than attorney’s fees. (Id.) The Daly decision did not address whether the plaintiff, Daly, was required to file a claim with the RTC prior to the October 13, 1992 date because Daly had in fact complied with FIRREA’s exhaustion requirements and timely filed a claim.

The plaintiffs in this action filed claims for payment of retirement benefits under the Plan with the RTC on February 13, 1995, more than two years after the time for filing such claims. (Complaint at ¶ 20). The RTC did not respond to these claims and the complaint in this action was filed on September 8, 1995. The plaintiffs have sued to obtain declaratory relief that they are entitled to retirement payments under the Plan and that these rights cannot be abrogated, diminished or affected by the provisions of FIRREA, including its provisions for the submission and barring of claims. They have also alleged a claim for breach of the Plan based upon their claim that they have performed all conditions required and that the RTC, as receiver, is required under the Plan to pay HomeFed’s obligations pursuant to 12 U.S.C. § 1821(d)(5), (6). The parties have each moved for summary judgment.

DISCUSSION

A Standard for Summary Judgment

Summary Judgement is appropriate if the record, read in the light most favorable to the non-moving party demonstrates no genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986). Material facts are those necessary to the proof or defense of a claim, and are determined by reference to the substantive law. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). Any doubt as to the existence of any issue of material fact re[1095]*1095quires denial of the motion. Anderson, 477 U.S. at 255,106 S.Ct. at 2513-14.

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Bluebook (online)
935 F. Supp. 1090, 1996 U.S. Dist. LEXIS 19570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/feigel-v-federal-deposit-insurance-casd-1996.