Groom v. Fickes

966 F. Supp. 1466, 1997 U.S. Dist. LEXIS 23967, 1997 WL 405128
CourtDistrict Court, S.D. Texas
DecidedJanuary 2, 1997
DocketCivil Action H-96-1736
StatusPublished
Cited by5 cases

This text of 966 F. Supp. 1466 (Groom v. Fickes) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Groom v. Fickes, 966 F. Supp. 1466, 1997 U.S. Dist. LEXIS 23967, 1997 WL 405128 (S.D. Tex. 1997).

Opinion

MEMORANDUM AND ORDER GRANTING MOTION TO DISMISS

HOYT, District Judge.

I. INTRODUCTION

The plaintiff, Rudy M. Groom, commenced this action under 42 U.S.C. section 1983, 1 alleging that the defendants Kenton R. Fickes, Jr., 2 a state-appointed receiver, Michael E. Clark, an assistant United States attorney, and Ellen Rodriguez and Thomas E. Artru, special agents with the Internal Revenue Service’s (“IRS”) Criminal Investigation Division, conspired to violate his constitutional rights by subjecting him to a malicious prosecution. The plaintiff also sues for intentional infliction of emotional harm, a common-law claim.

Pending before the Court are Rule 12(b)(6) motions to dismiss for defendants Clark, Ar-tru, and Rodriguez, for failure to state a claim upon which relief can be granted. The Court, having reviewed the motions, the record, and the applicable law, is of the opinion that the motions to dismiss should be granted.

II. STATEMENT OF FACTS AND PROCEDURAL HISTORY

On July 23, 1993, a grand jury returned a five-count indictment against the plaintiff, charging him with four counts of bank fraud and one count of tax fraud. The indictment stemmed from the plaintiffs allegedly dubious business dealings with Universal Savings Association (“Universal”), a failed savings and loan institution.

The facts reveal that in 1985, the plaintiff and a business associate, George T. Bass, (“lessors”) entered into a five-year lease agreement with Universal to lease to Universal a 1973 King Air aircraft. Universal, in turn, loaned the lessors $400,000 so that they could purchase and refurbish the aircraft. Other parts of the agreement required Universal to pay all of the aircraft-related expenses and maintenance costs, as well as an hourly usage rate. However, Universal had an option to purchase the aircraft at a price equal to the unpaid note balance. It is undisputed that Universal came into possession of the aircraft and, thereafter, treated the aircraft as its own. Because of this conduct, the plaintiff alleges that he and Bass believed *1471 that Universal had exercised the purchase option on the aircraft, pursuant to the lease agreement.

The indictment, however, alleged that the aircraft was intended to be used exclusively by the officers of Universal as a company or personal aircraft, and that Universal’s failure to appropriately report the lessors’ loan to government regulators, as well as the plaintiffs role in this scheme, was illegal. As evidence of the scheme, the government points to a letter from the plaintiff to Universal, dated July 6,1987, “den[ying] any liability on the note,” because, according to the plaintiff, he was simply a “nominee” owner who had executed the loan on Universal’s behalf. Now, however, the plaintiff emphatically insists that he was the true owner of the aircraft at all relevant times. 3

Universal was, subsequently, taken into receivership and Artru, Rodriguez and other agents with the IRS’s Criminal Investigation Division (“CID”) were assigned to investigate the activities of Universal and its subsidiaries. The plaintiff alleges that it was then that Fiekes, Artru and Rodriguez “undertook to make a criminal case” against him and the officers and directors of Universal and its subsidiaries. He also alleges that Clark participated in the ensuing investigation by directing the IRS agents, including Rodriguez, to interview and secure information from the plaintiff.

In July of 1986, RMG Investments, Inc. (“RMG”), a company in which the plaintiff had a majority ownership interest (see supra footnote 3), disposed of its major asset, a Cessna aircraft. At this point, RMG had no assets and significant liabilities, which in the plaintiff’s opinion, rendered his RMG stock worthless. The plaintiff took a $25,785 loss on his 1986 individual tax return by treating the stock as worthless, generating a long-term capital loss deduction. The plaintiff claims that he was simply following IRS regulations, which among other things, require that worthless securities be treated as a sale of stock. However, the plaintiffs financial statement contained in Universal’s records, dated August 1, 1987, indicated that the plaintiff still owned the RMG stock and that it had a value of $15,000.

As a result of this and other evidence presented to the grand jury, the plaintiff was indicted. During his criminal trial in 1994, this Court overruled the plaintiffs motion for judgement of acquittal under Federal Rule of Civil Procedure 29 on the four bank fraud Charges, finding that the prosecutors had produced sufficient evidence to sustain these charges. However, this Court dismissed the fifth count of the indictment concerning tax fraud only because it was subsumed by the other charges. A jury subsequently acquitted the plaintiff of the remaining charges.

On May 30,1996, the plaintiff initiated this section 1983 action against the defendants. The plaintiff amended his original complaint after Clark, Artru, and Rodriguez initially moved to dismiss his claims for failure to state a claim. Nevertheless, the defendants’ motions to dismiss are not compromised by the amended pleadings.

III. CONTENTIONS OF THE PARTIES

The plaintiff alleges that Clark, Artru, and Rodriguez conspired to violate his Fourth, Fifth and Fourteenth Amendment rights to be free from an unreasonable search and *1472 seizure and against self incrimination. Also, the plaintiff asserts that the defendants engaged in the conduct for the sole purpose of intentionally inflicting emotional harm upon him.

Clark contends that both absolute and qualified prosecutorial immunity shield him from any liability arising from the plaintiffs allegations. Artru and Rodriguez contend that qualified immunity bars any liability for their conduct. This is so, the defendants claim, because the plaintiff has not articulated a violation of any clearly established constitutional rights. This Court will consider the defendants’ affirmative defenses in turn.

IV. AUTHORITIES AND DISCUSSION

A Standard of Review on a Rule 12(b)(6) Motion

Federal Rule of Civil Procedure 12(b)(6) permits the dismissal of a complaint when it “fails to state a claim upon which relief can be granted.” In reviewing a Rule 12(b)(6) motion, the court must accept as true the factual allegations in the complaint and view them in the light most favorable to the plaintiff. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974); Colle v. Brazos County, 981 F.2d 237, 243 (5th Cir.1993).

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Cite This Page — Counsel Stack

Bluebook (online)
966 F. Supp. 1466, 1997 U.S. Dist. LEXIS 23967, 1997 WL 405128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/groom-v-fickes-txsd-1997.