Nowlin v. Resolution Trust Corp.

33 F.3d 498, 1994 WL 499723
Procedural entryThis page is a short order in Nowlin v. Resolution Trust Corp.. Read the opinion of the Court — 33 F.3d 498
Court of Appeals for the Fifth Circuit·Decided September 29, 1994·No. 93-2683·Published

Opinion

33 F.3d 498

65 Fair Empl.Prac.Cas. (BNA) 1870,
65 Empl. Prac. Dec. P 43,413
Jolene NOWLIN, et al., Plaintiffs-Appellants,
v.
RESOLUTION TRUST CORPORATION, et al., Defendants,
Resolution Trust Corporation, Litton Mortgage Servicing
Center, Inc., and Mitchell Jobe & Co., Defendants-Appellees.

No. 93-2683.

United States Court of Appeals,
Fifth Circuit.

Sept. 29, 1994.

William E. King, Kemah, TX, for appellants.

Barbara L. Johnson, A. Martin Wickliff, Jr., Wickliff & Hall, Houston, TX, for Resolution Trust Corp.

Martha Susan Hardie, Butler & Binion, Houston, TX, for Litton Mortg. Corp.

Dean J. Schaner, Jonathan C. Wilson, Hayes & Boone, Dallas, TX, for Mitchell.

Appeal from the United States District Court for the Southern District of Texas.

Before GOLDBERG, KING and WIENER, Circuit Judges.

GOLDBERG, Circuit Judge:

This case resulted from the termination of employment of nine former employees at a failed financial institution. These individuals ("plaintiffs") sued the Resolution Trust Corporation ("RTC"), which was the receiver of the institution, and two of the RTC's personnel contractors, Litton Mortgage Servicing Center, Inc. ("Litton") and Mitchell Jobe & Company ("Mitchell Jobe") (together, the "defendants"). The plaintiffs sought relief on several causes of action. The first was retaliatory discharge in violation of 12 U.S.C. Sec. 1831j (the "Banking Whistleblower Act"). The second and third were violations of 42 U.S.C. Sec. 2000e-3 ("Title VII"), for sexual discrimination and retaliatory discharge. Finally, the plaintiffs claimed a breach of oral contract under Texas common law. The district court granted summary judgment in favor of the defendants on all claims, and the plaintiffs appealed to this court. We partially affirm and partially reverse the district court's grant of summary judgment and remand for further proceedings.

I. Facts1

Columbia Savings Association, Nassau Bay, was a federally insured, state-chartered institution. In December 1989, it was placed in the conservatorship of the RTC. The institution was succeeded by Columbia Federal Savings Association ("Columbia") when the Federal Home Bank Loan Board issued it a federal charter. The change in name did not spell a change in fortune, and in September 1991 the RTC put Columbia into receivership and picked up the reins.

The RTC contracted with Mitchell Jobe to meet some of Columbia's staffing needs. Mitchell Jobe hired seventeen former Columbia employees for the receivership. The plaintiffs in this case are nine of those individuals. The plaintiffs signed employment contracts with Mitchell Jobe, which stated that employment would be "for an unspecified amount of time and for limited projects of a temporary nature...." The RTC paid Mitchell Jobe a fee in addition to the amount of the temporary employees' wages.

The RTC also contracted with Litton to be a Resolution Assistance Contractor (RAC). Litton's task was twofold. First, Litton was to wind down Columbia's affairs by returning assets to Columbia's former customers and extinguishing Columbia's liabilities. Second, and more important in this case, Litton was to supervise the day-to-day activities which engaged the employees at Columbia. Litton installed a three-member management team to accomplish these goals. The RTC compensated Litton according to number of hours the Litton team worked.

In September, Columbia's employees were gathered and told about Columbia's transformation into a receivership. Representatives of the RTC and Litton encouraged the plaintiffs to accept positions with the receivership. No one disputes that the plaintiffs entered "at will" employment contracts with Mitchell Jobe. However, the plaintiffs claim they also entered oral contracts with the RTC and Litton guaranteeing them four months of employment plus two weeks severance pay. During the September gathering, Tom Emerson, the manager of the Litton team, represented to the plaintiffs that their employment would be for at least four months, that they would receive two weeks severance pay, and that if they refused the job, he would challenge their applications for unemployment benefits. The RTC and Litton dispute plaintiffs' claim that an oral contract arose and insist that the plaintiffs' only contracts were those with Mitchell Jobe.

The plaintiffs and Litton had a difficult relationship from the start. One of the plaintiffs, Jolene Nowlin, alleged that Emerson began a campaign of sexual harassment soon after Litton was installed at the receivership. In addition, Emerson orchestrated a scheme to increase Litton's fees. Emerson instructed the plaintiffs to inflate their time sheets by adding three to three and a half hours to the amount of time they actually worked. He stated that he would verify the falsified time sheets. The plaintiffs complied at first, but then reported the time sheet fraud and sexual harassment to the RTC. The plaintiffs also claimed that the Litton team was unable to perform its management functions effectively due to ignorance and incompetence.

After an investigation by members of the RTC and Litton, the entire Litton team was replaced with one headed by Carolyn McDonald. However, this did not ease the friction in the receivership's operation. Specifically, there were confrontations regarding the plaintiffs' responsibilities. In addition, the plaintiffs complained to the RTC that the new team was also ineffective. Nowlin complained about the Litton team to an RTC official, Robert Van Buren. Van Buren later met with Litton and Mitchell Jobe representatives, and asked Mitchell Jobe to discharge Nowlin. Linda Wood, the Mitchell Jobe personnel manager, refused, stating that Mitchell Jobe preferred to build a documented file upon which to base Nowlin's termination.

RTC officials met on Friday October 18, 1991 and decided to accelerate Columbia's "final resolution" date and merge Columbia's assets and liabilities with another failed institution. Litton's and the plaintiffs' employment would be terminated, and Columbia would be closed. Later that afternoon, representatives from the RTC and Litton went to Columbia, gathered the employees, and told them to pack their belongings and to never return. The plaintiffs, in turn, filed this lawsuit.

II. Standard of Review for Summary Judgment

Summary judgment is proper under Rule 56 of the Federal Rules of Civil Procedure if there is "no genuine issue as to any material fact and ... the moving party is entitled to judgment as a matter of law." Anderson v. Liberty Lobby Inc., 477 U.S. 242, 257, 106 S.Ct. 2505, 2514, 91 L.Ed.2d 202 (1986). "[T]he plaintiff must present affirmative evidence in order to defeat a properly supported motion for summary judgment." Id.

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Nowlin v. Resolution Trust Corp., 33 F.3d 498, 1994 WL 499723 (5th Cir. 1994).

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