[DOWNLOAD] "Resolution Trust Corp. v. Scaletty" by Supreme Court of Kansas ~ eBook PDF Kindle ePub Free
eBook details
- Title: Resolution Trust Corp. v. Scaletty
- Author : Supreme Court of Kansas
- Release Date : January 17, 1995
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 66 KB
Description
The opinion of the court was delivered by This case is before the court on two questions certified by the United States Court of Appeals for the Tenth Circuit pursuant to the Uniform Certification of Questions of Law Act, K.S.A. 60-3201 et seq. The questions are: 1. ""Under Kansas law, does an action against corporate directors accrue only when those directors no longer control or `adversely dominate' the corporation?"" 2. ""If so, does adverse domination delay accrual or toll the statute of limitations when the directors were guilty only of negligence, gross negligence, or breach of fiduciary duty?"" The facts are set forth in the certification order as follows: ""BACKGROUND ""LaForge was a director of the state-chartered Peoples Savings & Loan Association of Parsons, Kansas (PSLA). In April and May 1983, the PSLA directors approved participations in three loans for condominium projects in Texas. The Resolution Trust Corporation (RTC) claims that the directors' approval was negligent, grossly negligent, and a breach of fiduciary duty. They allege in particular that the directors lacked the expertise to make reasonable judgments about whether to buy such participations; relied upon unverified representations of the loan originator or broker; did not require and analyze sufficient information to make a reasonable decision; did not establish procedures to monitor the analysis of participation loans by PSLA's officers; and did not monitor or evaluate appraisal reports. ""LaForge resigned in February 1985, after the board received and reviewed a joint federal and state examination report criticizing two of the three participations. Two of the remaining seven directors also resigned after LaForge. However, the board filled only one vacancy: in January 1986, Beulah Neff, a longtime PSLA employee, became a director. Apparently the rest of the board remained the same at least until the Federal Savings & Loan Insurance Corporation (FSLIC) became the conservator of PSLA on February 28, 1989. The RTC subsequently became receiver of PSLA in May 1990. The RTC in its corporate capacity acquired this claim and filed its complaint on February 27, 1992.""