United States v. Gauber

499 U.S. 315 (1991)

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Nature of the Case

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Facts

This suit arose out of the supervision of federal regulators of the activities of IASA. Gaubert, (P) was IASA's chairman and largest shareholder. Officials at the FHLBB and FHLB-D (Ds) sought to have IASA merge with Investex Savings, a failing Texas thrift. Ds sought to have P sign a neutralization agreement, which effectively removed P from IASA's management as part of the merger deal. P was also asked to post a $25 million interest in real property as security for his personal guarantee that IASA's net worth would exceed regulatory minimums. P agreed to both conditions. In the spring of 1986, D threatened to close IASA unless its management and board of directors were replaced. New management took over, and that management followed the advice of Ds to the letter. Almost immediately, the new directors announced that IASA had a substantial negative net worth. P filed under the FTCA seeking $75 million and $25 million for the property he had forfeited under his personal guarantee. P's administrative claim was denied, and P sued D in district court; $100 million for alleged negligence in management of IASA. D moved to dismiss.