Federal Deposit Ins. Corp. v. Huston, 11-87-230-CV

• Decision Date: 22 September 1988
• Docket Number: No. 11-87-230-CV,11-87-230-CV
• Citation: 757 S.W.2d 912
• Parties: FEDERAL DEPOSIT INSURANCE CORPORATION, Appellant, v. Rex M. HUSTON, Trustee, Appellee.
• Court: Texas Court of Appeals

Page 912

757 S.W.2d 912

FEDERAL DEPOSIT INSURANCE CORPORATION, Appellant, v. Rex M. HUSTON, Trustee, Appellee.

No. 11-87-230-CV.

Court of Appeals of Texas,

Eastland.

Sept. 22, 1988.

Rehearing Denied Oct. 20, 1988.

T. Ray Guy, Truman Spring, Jenkens & Gilchrist, Donald B. McKinley, FDIC, Dallas, for appellant.

Jeff Joyce, David A. Given, Charles J. McGuire, Winstead, McGuire, Sechrest & Minick, Dallas, for appellee.

OPINION

DICKENSON, Justice.

The principal issues in this appeal are: (1) whether the Federal Deposit Insurance Corporation [as Receiver for the Bank of Woodson] has standing to prosecute an appeal from the trial court's order terminating the receivership of an insolvent bank; and (2) whether the owners ¹ of claims against the insolvent bank are entitled to recover interest as well as principal before any surplus is distributed to the shareholders ² of the insolvent bank. We answer both questions in the affirmative.

The Bank of Woodson ³ was closed by the Texas Department of Banking on March 1, 1982. The Federal Deposit Insurance Corporation accepted appointment as receiver of the insolvent bank on March 11, 1982. The Inventory of Assets which was filed by FDIC on March 12, 1982, shows total assets of $3,168,192.75 and liabilities which exceeded the asset value by the sum of $301,896.79. The present surplus was created by the recovery of $672,864.00 from the bonding company which insured the bank against losses from the dishonest and fraudulent acts by two of the bank's former officers. [This recovery is due in large part to Huston's opposition to FDIC attempts to settle the bonding company claim for $236,500.00. If the claim had been settled pursuant to the FDIC requests, there would have been no surplus for distribution, neither to the claimants for their lost interest nor to the shareholders for partial recoupment of their loss.]

After the FDIC receivership had been pending for more than five years, the trial court entered an order on July 21, 1987, which reads in part as shown:

(1) IT IS, THEREFORE, ORDERED, ADJUDGED and DECREED that the final accounting and final report of the Receiver of The Bank of Woodson, Woodson, Texas (filed herein on September 29, 1986, as augmented as of May 4, 1987), be, and the same hereby is, approved, subject to the following exceptions and/or adjustments;

(A) The expenses claimed by the FDIC shall be paid only through December 31, 1986 in an amount of $37,495.80 as a full and final payment by the Receivership estate with the balance of said claimed expenses being disallowed and denied.

(B) The fees and expenses aggregating $11,195.38 shall be paid by the Receivership estate as a full and final payment to the firm of "Bankston and Lobingier", and that if these fees and expenses have already been paid by the FDIC, FDIC shall be reimbursed in like amount by the Receivership estate.

(2) It is further ORDERED, ADJUDGED and DECREED that on or before the thirtieth (30th) day after date of entry of this Order, the FDIC, Receiver, shall deliver possession of all remaining assets of the Bank of Woodson, Woodson, Texas to Rex M. Huston, as Trustee for all stockholders of The Bank of Woodson, Woodson, Texas, accompanied by any and all records that FDIC, Receiver, has pertaining to remaining assets in order to allow Rex M. Huston, as Trustee, to maximize recoveries for said shareholders. The FDIC, Receiver, shall execute such assignments, transfers, conveyances and/or endorsements as may be required to accomplish the transfer of the remaining assets of The Bank of Woodson, Woodson, Texas, to Rex M. Huston, Trustee. The Trustee shall post the $25,000 bond payable to the Court as described above and shall be entitled to reimbursement for his efforts and time on a reasonable basis, the said Trustee being allowed to apply to the Court for such reimbursement on a periodic basis. As soon after the transfer of the above assets to the Trustee as is reasonably practicable, the Trustee may apply to the Court for permission to distribute a portion of the assets held by the Trustee to the stockholders on a pro rata basis according to the percentage of the total outstanding shares of stock of The Bank of Woodson, Woodson, Texas, that each such stockholder owns as of the date of such payment. The remaining cash deposits and/or cash assets shall be placed in an interest bearing account for the payment of reasonable fees and expenses of the trust and/or further distribution to stockholders at a later date. The Trustee shall administer and liquidate the remaining assets of The Bank of Woodson for the benefit of all such stockholders under the continuing supervision of this Court, and any proceeds of any such cash or non-cash assets received by the FDIC after May 4, 1987, shall be delivered to such Trustee.

For purposes hereof, the shareholders of The Bank of Woodson as of March 1, 1982, are reflected in the Receiver's opening Inventory on file herein, as said ownership may have changed or may continue to change until all assets of The Bank of Woodson are distributed by the Trustee, Rex M. Huston. At the...