Opinion ID: 170364
Heading Depth: 3
Heading Rank: 2

Heading: Travel Expenses

Text: Next, Mr. Hirsch argues that Mr. Weiss personally received a benefit from loan funds by improperly paying for travel expenses he incurred. Mr. Hirsch argues that the fact that Mr. Weiss did not get authorization for these expenses creates a reasonable inference that these expenses would not have been approved had they been submitted to the lender’s representative. This is not a reasonable inference. Again, Mr. Hirsch stated in his affidavit that Mr. Weiss did not receive authorization for any disbursement of the loan funds, yet he does not argue that all of the loan funds were used for Mr. Weiss’ personal benefit. Accordingly, the lack of authorization from the lender’s representative for disbursement of the travel expenses does not establish that the travel was for Mr. Weiss’ personal benefit. Mr. Hirsch also makes the conclusory assertion that it may be reasonably inferred that these expenses were not proper “operating expenses” under the loan agreement and that therefore Mr. Weiss used the funds for his own benefit. The bulk of the travel expenses at issue involved airfare, hotels and meals in Stuttgart, Germany, where the development project was located. As the district court explained in its order, “[u]nder the Loan Agreement, the proceeds were explicitly to be used for, among other things, ‘all due diligence investigations’ and -7- ‘obtaining all governmental approvals and permits’ for a project that was in Suttgart, Germany.” Aplt. App. at 115. The district court noted that both Mr. Weiss and Mr. Hirsch were residents of the United States, and concluded that there was no material factual dispute about whether some travel was necessary for this project. Moreover, the district court pointed out that Mr. Hirsch was relying on equity in advancing his defense of the contribution action, and that Mr. Weiss had provided evidence that the loan proceeds were used to reimburse Mr. Hirsch for thousands of dollars of travel as well. Finally, Mr. Hirsch argues that Mr. Weiss was not entitled to summary judgment because Mr. Hirsch stated in his affidavit that “some of the borrowed funds were misspent, dissipated and spent outside of the manner intended under the Loan Agreement.” Aplt. Br. at 15. Because Mr. Hirsch did not set forth any facts to support this statement, this portion of his affidavit may not be used to defeat summary judgment. See Harvey Barnett, Inc. v. Shidler, 338 F.3d 1125, 1136 (10th Cir. 2003) (“Conclusory allegations that are unsubstantiated do not create an issue of fact and are insufficient to oppose summary judgment.” (quotation omitted)). -8- C. Improper Weighing of Evidence and Determination of Amount Due Mr. Hirsch argues that the district court should have denied summary judgment, but instead decided an issue of fact. Mr. Hirsch is again complaining about the district court’s decision to deduct $16,814.52 of Mr. Weiss’ previously-incurred expenses from Mr. Hirsch’s one-third obligation on the debt. Because Mr. Hirsch benefitted from the district court’s decision on this issue, it is unclear why Mr. Hirsch is complaining about it on appeal. Moreover, although the district court concluded that these prior-incurred expenses represented a factual dispute, the dispute surrounding these expenses was not material to the question of whether Mr. Weiss benefitted unequally from the loan proceeds. Because any factual dispute regarding these expenses did not present a “genuine issue as to any material fact,” summary judgment in favor of Mr. Weiss was appropriate. See Fed. R. Civ. P. 56(c). Finally, Mr. Hirsch argues the district court’s decision on this issue has “denied [him] the opportunity to make a full presentation of all of the expenses at issue at trial.” Aplt. Br. at 16. Mr. Hirsch should have presented all evidence of material factual disputes in his opposition to summary judgment. His failure to do so does not provide a basis to overturn the district court’s decision. Mr. Hirsch also complains that the district court incorrectly calculated the amount he owed. The district court entered judgment against Mr. Hirsch based on one-third of $330,835.74, less $16,814.52. Aplt. App. at 116. The district court -9- resolved the parties’ dispute over the total debt by using the figure provided by Mr. Hirsch, $330,835.74, rather than the figure provided by Mr. Weiss, $313,530.90. Id. For the first time on appeal, Mr. Hirsch argues that the correct figure is in fact $313,530.90. Because this argument was not presented to the district court, we will not consider it for the first time on appeal. See Walker v. Mather (In re Walker), 959 F.2d 894, 896 (10th Cir. 1992). The judgment of the district court is AFFIRMED. Entered for the Court Michael R. Murphy