Gordon v. Community First State Bank

587 N.W.2d 343, 255 Neb. 637, 1998 Neb. LEXIS 235
CourtNebraska Supreme Court
DecidedDecember 4, 1998
DocketS-97-618, S-97-1183
StatusPublished
Cited by34 cases

This text of 587 N.W.2d 343 (Gordon v. Community First State Bank) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. Community First State Bank, 587 N.W.2d 343, 255 Neb. 637, 1998 Neb. LEXIS 235 (Neb. 1998).

Opinion

Stephan, J.

In this consolidated action, Richard L. Gordon seeks damages from Community First State Bank, formerly The Abbott Bank (Bank), and several of its officers, as well as the director and two other employees of the Nebraska Department of Banking and Finance (Department). Gordon asserts alternative theories of recovery, including abuse of process and denial of civil rights in violation of 42 U.S.C. § 1983 (1994). The district court for Douglas County sustained demurrers and entered an order of dismissal in each action, from which Gordon appeals. We conclude that we lack jurisdiction over Gordon’s appeal in case No. S-97-618 with respect to the individual appellees because there is no final, appealable order as to them. We affirm the judgment in that case with respect to the Bank, and we affirm the judgment in case No. S-97-1183 in its entirety.

I. SCOPE OF REVIEW

An order sustaining a demurrer will be affirmed if any one of the grounds on which it was asserted is well taken. Parker v. Lancaster Cty. Sch. Dist. No. 001, 254 Neb. 754, 579 N.W.2d 526 (1998); Lawry v. County of Sarpy, 254 Neb. 193, 575 N.W.2d 605 (1998).

In considering a demurrer, a court must assume that the facts pled, as distinguished from legal conclusions, are true as alleged and must give the pleading the benefit of any reasonable inference from the facts alleged, but cannot assume the exis *640 tence of facts not alleged, make factual findings to aid the pleading, or consider evidence which might be adduced at trial. Id.

When a demurrer to a petition is sustained, a court must grant leave to amend the petition unless it is clear that no reasonable possibility exists that amendment will correct the defect. Vanice v. Oehm, 255 Neb. 166, 582 N.W.2d 615 (1998); State ex rel. Wood v. Fisher Foods, 254 Neb. 982, 581 N.W.2d 409 (1998).

II. FACTUAL ALLEGATIONS

The operative petitions in both of these actions contain similar factual allegations, which we summarize here, recalling that we must assume the truth of such allegations under the aforementioned standard of review. The Bank is chartered by the State of Nebraska and maintains its principal place of business in Alliance, Nebraska. Approximately 99 percent of the Bank’s outstanding common stock was owned by Abbott Bank Group, Inc. (ABGI), a bank holding company incorporated in Delaware. In June 1982, James E. Abbott became the majority shareholder of ABGI.

Prior to a reorganization which occurred between 1987 and 1989, Abbott’s banking interests included 10 independent banks, each of which was owned by a separate holding company. In 1987, Abbott became chairman of each bank’s board of directors. At that time, Gordon was a shareholder, director, and officer of an Omaha law firm which had represented the banking interests of Abbott and his family since 1978. Abbott designated Gordon as general counsel to the Abbott banks and their respective holding companies and gave Gordon broad authority to review all legal matters involving these entities. As general counsel, Gordon had an attorney-client relationship with the Bank which was founded on an oral contract.

Between 1987 and 1989, the 10 separate banks were reorganized into a single bank owned by ABGI, The Abbott Bank, resulting in the loss of each bank’s local name, autonomy, and board of directors. In addition, the reorganization resulted in significant reductions in bank personnel. Gordon alleges that this reorganization created “extremely hard feelings” directed toward those perceived to be responsible for the changes, par *641 ticularly Gordon and his law firm. As a part of the reorganization, the Bank instituted a credit card program, which met with resistance from the Bank’s management. Also, various actions of the Bank taken to reform policies and collect delinquent accounts furthered animosity toward Abbott and his advisors.

In 1990, Gordon advised Abbott that unless issues regarding management and leadership were addressed, it was likely that the Bank’s various professional fees would increase significantly. Rather than replace management, Abbott decided to pursue a sale or merger of the Bank into a larger organization in order to resolve the management issues and realize the value of the investment in the credit card operation. Abbott informed Gordon of this decision in confidence.

In 1993, Abbott retained an investment banking firm to assist in the sale of the Bank. He intentionally did not disclose this fact to some persons on the management team. In July, the decision to sell the Bank was disclosed to Richard J. Chapin, the chief financial officer of the Bank, who later became its president. Gordon alleges that Chapin pretended to support the decision while secretly planning to remove Abbott from controlling the Bank’s policies and operations. Gordon alleges that Bank officers Darrell Raum, Pat Keslar, and Tom Willnerd conspired with Chapin (collectively referred to as “the individual officers”) to remove Abbott from control of the Bank and place themselves in control. Gordon alleges that the individual officers determined that in order to carry out their plan, they had to first remove Gordon from his position as general counsel.

Gordon contends that in order to attract regulatory disapproval sufficient to cause Abbott’s removal and block Abbott’s plan to sell the Bank or control the terms of any sale, the individual officers (1) attacked the viability of the credit card operation, (2) attacked the ability of Abbott to set Bank policy and to counsel with Gordon, (3) attacked Gordon as having too much control over the affairs of the Bank, (4) attacked the financial condition of the Bank, (5) attempted to place the Bank in various conditions of default with its primary lender and regulators, (6) alleged that the Bank illegally paid Abbott’s personal legal and accounting fees, (7) failed to timely produce a business plan for the Bank, (8) attacked the legal fees of *642 Gordon’s law firm, (9) attacked the fees of the Bank’s accounting firm, (10) attacked the fees of the Bank’s advertising company, and (11) threatened to quit their respective services to the Bank unless regulators supported them in their efforts to “ ‘get rid of’ ” Abbott and Gordon.

Gordon alleges that in late 1993 and early 1994, the individual officers further conspired to take control of the Bank by forming a “joint plan or agreement with the intent of controlling the Bank so that any potential buyer would have to deal with them and thereby preserve their influence and jobs.” He alleges that in December 1993, Chapin hired an attorney to represent the Bank without the knowledge or approval of the board of directors. Gordon alleges that the individual officers then began a series of discussions with state and federal banking regulators in which they made the following misrepresentations: (1) that the Bank had unlawfully permitted Gordon to act as an unlicensed Bank officer, (2) that the Bank was in a very perilous financial condition, and (3) that the Bank “‘was in imminent danger of failure.’ ”

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

Related

Wike v. Douglas County
D. Nebraska, 2024
Warner v. Warner
D. Nebraska, 2024
Stanko v. Smith, King, Simmons & Conn Law
Nebraska Court of Appeals, 2022
Haynes v. Coleman
30 So. 3d 420 (Court of Civil Appeals of Alabama, 2009)
Moore v. Western Forge Corp.
192 P.3d 427 (Colorado Court of Appeals, 2007)
Larobina v. McDonald
876 A.2d 522 (Supreme Court of Connecticut, 2005)
J & H Swine, Inc. v. Hartington Concrete, Inc.
687 N.W.2d 9 (Nebraska Court of Appeals, 2004)
Mumin v. Dees
663 N.W.2d 125 (Nebraska Supreme Court, 2003)
Stagemeyer v. County of Dawson
192 F. Supp. 2d 998 (D. Nebraska, 2002)
Holmes v. Crossroads Joint Venture
629 N.W.2d 511 (Nebraska Supreme Court, 2001)
Claypool v. Hibberd
626 N.W.2d 539 (Nebraska Supreme Court, 2001)
Cole v. Wilson
627 N.W.2d 140 (Nebraska Court of Appeals, 2001)
J.B. Contracting Services, Inc. v. Universal Surety Co.
624 N.W.2d 13 (Nebraska Supreme Court, 2001)
JB Contracting Servs. v. UNIVERSAL SUR.
624 N.W.2d 13 (Nebraska Supreme Court, 2001)
Noffsinger v. Nebraska State Bar Ass'n
622 N.W.2d 620 (Nebraska Supreme Court, 2001)
White v. Board of Regents
614 N.W.2d 330 (Nebraska Supreme Court, 2000)
MacH v. County of Douglas
612 N.W.2d 237 (Nebraska Supreme Court, 2000)
Wachter v. Gratech Co., Ltd.
2000 ND 62 (North Dakota Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
587 N.W.2d 343, 255 Neb. 637, 1998 Neb. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-community-first-state-bank-neb-1998.