Fleischer v. Resolution Trust Corp.

882 F. Supp. 999, 1995 U.S. Dist. LEXIS 4395, 1995 WL 146871
CourtDistrict Court, D. Kansas
DecidedMarch 31, 1995
DocketCiv. A. No. 92-4018-DES; No. 92-4019-DES
StatusPublished
Cited by1 cases

This text of 882 F. Supp. 999 (Fleischer v. Resolution Trust Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleischer v. Resolution Trust Corp., 882 F. Supp. 999, 1995 U.S. Dist. LEXIS 4395, 1995 WL 146871 (D. Kan. 1995).

Opinion

MEMORANDUM AND ORDER

SAFFELS, Senior District Judge.

I. INTRODUCTION

This matter is before the court on the Resolution Trust Corporation’s (“RTC”) motion for partial summary judgment (Doc. 145). Ernest Fleischer (“Fleischer”) and John Seowcroft (“Seowcroft”) are former members of the Board of Directors of Franklin Savings Association (“FSA”). They contend that the RTC, as conservator of FSA, breached their employment contracts. They seek post-conservatorship and severance pay. Seowcroft also seeks relocation expenses pursuant to a pre-conservatorship agreement.

II. SUMMARY JUDGMENT STANDARDS

A court shall render summary judgment upon a showing that there is no genuine issue of material fact and that the movant is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). The rule provides that “the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). The substantive law identifies which issues are material. Id. at 248,106 S.Ct. at 2510. A dispute over a material fact is genuine when the evidence is such that a reasonable jury could find for the nonmovant. Id. “Only disputes over facts that might properly affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.” Id.

The movant has the initial burden of showing the absence of a genuine issue of material fact. Shapolia v. Los Alamos National Laboratory, 992 F.2d 1033, 1036 (10th Cir.1993). The movant may discharge its burden “by ‘showing’ — that is, pointing out to the district court — that there is an absence of evidence to support the [nonmovant’s] case.” Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2554, 91 L.Ed.2d 265 (1986). The movant need not negate the nonmovant’s claim. Id. at 323, 106 S.Ct. at 2553.

Once the movant makes a properly supported motion, the nonmovant must do more than merely show there is some metaphysical doubt as to the material facts. Matsushita Elec. Industrial Co. v. Zenith Radio, 475 U.S. 574, 586, 106 S.Ct. 1348, 1355, 89 L.Ed.2d 538 (1986). The nonmovant must go beyond the pleadings and, by affidavits or the depositions, answers to the interrogatories, and admissions on file, designate specific facts showing there is a genuine issue for trial. Celotex, 477 U.S. at 324, 106 S.Ct. at 2553 (interpreting Rule 56(e)). Rule 56(c) requires the court to enter summary judgment against a nonmovant who fails to make a showing sufficient to establish the existence of an essential element to that party’s case, and on which that party will bear the burden of proof. Id. at 322,106 S.Ct. at 2552. Such a complete failure of proof on an essential element of the nonmovant’s case renders all other facts immaterial. Id. at 323, 106 S.Ct. at 2553.

A court must view the facts in the light most favorable to the nonmovant and allow the nonmovant the benefit of all reasonable inferences to be drawn from the [1003]*1003evidence. See, e.g., United States v. O’Block, 788 F.2d 1433, 1435 (10th Cir.1986) (stating that “[t]he court must consider factual inferences tending to show triable issues in the light most favorable to the existence of those issues”). The court’s function is not to weigh the evidence, but merely to determine whether there is sufficient evidence favoring the nonmovant for a finder of fact to return a verdict in that party’s favor. Anderson, 477 U.S. at 249, 106 S.Ct. at 2510. Essentially, the court performs the threshold inquiry of determining whether a trial is necessary. Id. at 250, 106 S.Ct. at 2511.

III. FACTUAL BACKGROUND

The Factual Background heading of the instant Memorandum and Order is divided into two subheadings. The first subheading sets forth the facts relevant to plaintiffs’ claims for post-conservatorship and severance pay. The second subheading sets forth the facts relevant to Scowcroft’s claim for his relocation expenses.

For the purposes of the RTC’s motion for partial summary judgment, the following facts are either uncontroverted or construed in the light most favorable to plaintiffs.

A. Post-Conservatorship and Severance Pay

FSA is a state chartered, stock savings and loan association engaged in business in the state of Kansas. Fleischer was Chairman of the Board of Directors of FSA and Scowcroft was Vice Chairman. Fleischer’s annual salary was $500,000.00, plus fringe benefits. Scowcroft’s annual salary was $250,000.00, plus fringe benefits. Neither Fleischer nor Scowcroft had an integrated written employment contract with FSA.

At some time prior to February 15, 1990, the Board of Directors of FSA instructed Fleischer and Scowcroft to challenge the Office of Thrift Supervision (“OTS”) should it impose a conservatorship. On February 15, 1990, the Director of the OTS determined FSA was unsafe and unsound. As a result, the Director appointed the RTC as FSA’s conservator. On February 16, 1990, John L. Carr (“Carr”) was appointed Managing Agent of the conservatorship. Charles P. Farrell, Jr. replaced Carr as Managing Agent August 13, 1990. Farrell served as Managing Agent until February 13, 1992. Neither the Director of the OTS nor either of the Managing Agents of FSA ever issued an express determination that plaintiffs’ employment was necessary for the continued operation of FSA.

On February 16, 1990, the day after the conservatorship was imposed, Carr, as Managing Agent, sent the following letter to both plaintiffs:

This letter is to inform you that the Office of Thrift Supervision (“OTS”) has determined that Franklin Savings Association is insolvent, and on February 16, 1990, appointed the Resolution Trust Corporation (“RTC”) as Conservator. The business of the Association will continue without interruption under the direction of the RTC as Conservator.
It is our understanding that you have served as a director of the Association from time to time, and that you may have records or other property of the Association in your possession. You are hereby requested to deliver to the Conservator, at the office of the Association at 1890 Benson, Overland Park, Kansas 66210, all assets and property of any kind now in your possession or control that belong or belonged to the Association. Your immediate attention and compliance with this request is required by law. I look forward to your cooperation. If you have any questions please feel free to consult with me.

On February 23, 1990, the RTC removed plaintiffs from FSA’s pay roll by placing them on unpaid leaves of absence retroactive to February 16, 1990.1

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
882 F. Supp. 999, 1995 U.S. Dist. LEXIS 4395, 1995 WL 146871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleischer-v-resolution-trust-corp-ksd-1995.