The opinion of the court was delivered by: HAROLD A. ACKERMAN
ACKERMAN, District Judge:
This matter comes before the court on the motions of plaintiff Malcolm Marsa ("Marsa") and defendant Resolution Trust Corporation ("RTC")
for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. For the following reasons, Marsa's motion is granted and the RTC's motion is denied.
The following facts are undisputed.
Plaintiff Marsa is the former President and Chairman/Chief Executive Officer of Metrobank for Savings F.S.B. ("Metrobank F.S.B.") and Metrobank Financial Group, Inc. ("Metrobank Financial") ("collectively Metrobank"). Marsa resigned from Metrobank on May 10, 1990 pursuant to a "Settlement Agreement and Release" ("Settlement Agreement") executed by the parties that same date.
At the time of his resignation, the terms of Marsa's employment with Metrobank were governed by an employment agreement, dated January 1, 1988 ("Employment Agreement"). The initial term of the Employment Agreement was to end December 31, 1992, at which time it was to be automatically renewed to December 1994. The Employment Agreement provided for a base salary of $ 270,000, plus fringe benefits. Including benefits, Marsa's total yearly earnings were approximately $ 400,000.
In 1989 and 1990, Metrobank suffered considerable losses. Specifically, the 1989 and 1990 Annual Reports for Metrobank Financial show a net income loss for the year ending December 31, 1989 of $ 20,493,000 and a net income loss for the year ending December 31, 1990 of $ 8,330,000. According to the Settlement Agreement, these losses prompted Metrobank to downsize its operations. As a result of the downsizing, Marsa's services were no longer needed and the parties entered into the Settlement Agreement, terminating Marsa's relationship with Metrobank.
According to the Settlement Agreement, Marsa had a claim under the Employment Agreement for approximately $ 1.8 million (four and one-half years remaining under the Employment Agreement x $ 400,000 per year) plus fringe benefits. Pursuant to the Settlement Agreement, the parties agreed to the following:
1) Marsa immediately resigned as an officer, director and employee of Metrobank and its subsidiaries;
2) The Employment Agreement was terminated and Marsa waived all future salary and benefits thereunder;
3) Marsa agreed to receive immediately, upon execution of the Settlement Agreement, a lump sum payment of $ 250,000, and an annual fee of $ 100,000, payable in monthly installments over the succeeding 4 years starting in 1991 and continuing to 1994. In addition, Marsa agreed to sign over all insurance benefits to Metrobank;
4) Marsa agreed that, upon the reasonable request of Metrobank, he would cooperate with Metrobank in connection with any matters pertaining to the business of Metrobank and/or in connection with any litigation against Metrobank; and
5) Marsa agreed to release Metrobank from any claims and rights against Metrobank, including any claims arising under the Employment Agreement.
The settlement Agreement also provided as follows:
In the event any party fails to comply with or breaches any of its obligations under this Settlement Agreement, the other party shall have the right to bring an action against the defaulting party for enforcement of its or his obligations ...