Three Rivers Landing of Gulfport, LP et al v. Three Rivers Landing, LLC et al, No. 7:2011cv00025 - Document 31 (W.D. Va. 2012)

Court Description: MEMORANDUM OPINION. Signed by Judge James C. Turk on 5/4/12. (med)
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CLERK' OFFI U. DI . S CE S. ST COURT A- ROANOKE, r VA FIED L I TH E UN I N TED STA TES DI STR I T C O UR T C FO R TH E W ESTERN DI STR I O F V I I I CT RG N A R O AN O K E DI ISIO N V MAY 2i 2 1 22 L B : RK . ' TH R EE R W ER S LA ND I G O F N G U LFPO RT ,LP, Case N o.7: 11-cv00025 and A PO LLO TA X CR EDIT FUN D X 3 LI I M TED PA RTN ER SH I P Pl ntif ai f s, M EM OM NDUM OPI ON NI V. TH REE R W ER S LA ND I ,LLC, NG H G DEV ELO PER ,I C . N , U NLIM ITED C O N STRU C TIO N ,IN C. , M A RK D.K IN SER , and H O RIZO N M AN A G EM EN T IN C. , By: H on.Jam es C .Turk Se or U nie St e Di t i tJudge ni t d at s s r c Defendant s. Thi matri pr e l befr t Co ton t Dee ns M oton t Dimis ( . s te s esnty oe he ur he fnda t' i o s s. Dkt No.1 . The Pli if fl a me r ndum i opposton t Defnda s M oi t Dimis 6) antfs ied mo a n ii o e nt' ton o s s ( t No.1 )a t Dee nsrple ( .No.20) TheCour he r orla g n o t Dk. 8 nd he fnda t e id Dkt . t ad a r ume t n he m oton on M a 23, 1. The pa te t n r ue t d a or rr f ni t c e t m e a i but i y 201 r i s he eq s e n de e e ng he as o di ton, t pa tes wer una e t r ac a s tl m e t AtmlA prl 1 201 s a us c e e e t pa tes he ri e bl o e h e te n . i 7, 2 t t onf r nc he ri r que t d t Cour r e on t pendi m oton t di m i s For t f l i r e s e he t ul he ng i o s s. he olow ng easons, t he Def endant M oton t D i m i i D ENIED . s' i o s ss s Background Thi c s a i e ou oft cons r to ofa 1 uni l -nc e a r m e c pl x i s a e r s s t he t uc i n 70- t ow i om pa t nt om e n Gulpo t M i ss i a t al ge mius ofa o ma ey $2 milon by De e ntThr e f r, s isppi nd he le d s e ppr xi t l li f nda e Ri r La ng, (sheFor rGe r Pa t r).Twoc r cs t Pa t rhi ves ndi LLC l t me neal rne' onta t,he rnes p Agr me andt De l e Ag e me ,c ai pr vi i r r ng t pa e oft $2 ee nt he veopm nt r e nt ont n o sons ega di he ym nt he m ilon a i s he e The Def nda si t s c s a e Thr Ri r La ng, li t s ue r . e nt n hi a e r ee ve s ndi LLC;H G De eo e, n .Ch De lp r'; l tdCo sr ci n lc (teMa g r'; rz n v lp r I c (l e veo e' Uni e n tu to ,n .ûh na e' Ho io t l mi û l Ma a e n ,nc (t M a a e n Co n ' ; n M akD. ns r(Kis r'.Kis r n g me t l .ûhe n g me t mpa y' a d r Ki e t n e' n e t l t ) o ne t Fonne G e r lPa t , hi h he c r l d t ough t M a w d he r ne a rner w c ontole hr he nage . 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C ount 1 I ,VI ,VI I s,V I I De e n s m oton t di m i scha l esf c f nda t ' i o s s leng our ount- count1 Con r i Coun I s 2 ve s on, tV Br a h ofFi i r D ut CountVI : a a CountV l I N eglg tM i r pr e a i --on ec duc a y y, I Fr ud, nd I: i en s e es nt ton t basst tt pur td ca esofaci n s he i ha he pore us to ound onl i c r ta noti t t Thi Co t y n ontac nd n or. s ur di a r e . The V igi a Supr m e Cour hasa know l ge C ha a s ngl a toroc ur e e c n, sges r ni e t c ed d i t i e c t c r nc a i c ran cr umsmwe ,s n e ti ic t s uppor c us ofa ton bot f br c ofc r ta f rbr a h ofa t a es c i h or ea h ontac nd o e c d t aiigi tr. Au u t M uu lns Co. . ao 6 5S. 2 2 0 2 3( . 0 7 .Th s uy rsn n o t' c sa ta l . v M s n, 4 E.d 9 , 9 Va 2 0 ) e e ' crumsanc saeme whençhed yt tousyorne i ntybr c d(s aco ic t e r t û ut ori l t glge l ea he ij mmonlw a dut noto e s i be w ee t pa tess e y by vi t oft co r c . For i n M i s on Bd. y, ne xi tng t n he ri ol l r ue he nt a t ea si v.W a ,409S. 2d 1 1 ( 1 )( tngSpe ev. f k& W .R. Co.22 S. 81 de E. 44, 48 Va. 991 cii nc Norol R. , E. 5, 818( .1 ) Todeemi whehe t duyi ac Va 895). tr ne t r he t s ommo 1w duyoradut t te ss na t y ha xit s el by vi t oft c r c t cour e m i s t he s c oft dut vi a e ' Ri hm ond ol y rue he ont a t he t xa ne i our e he y ol t d. c t ' M er Aut v. c vitSte Bovisl ,507S. 2 3 347( .1 . to. h. M De t ret s nc. E.d 44, Va 998) W ih r ga d t Co 1 a ge r lpa t rha a c m on 1 w dut nott a opra e f t e r o unt , ne a r ne s om a y o ppr i t unds fo t epate s i S eVa Co eAn j5 -3.0 ( ()(A p rn rsd t o ly lyt te r m h rn rhp. e . d n. 07 1 2 B)1 t a te ' uy f o at o h t pa t rhi a t ot rpa t r'i l t dut Cll a c t t pa t s pa hol a rnes p nd he he rnes'ncudes he y çto c ount o he rnerhi nd d s tusee f r i any pr t pr i,orbe f tde i by t pa t ri t c r t o t opery, oft ne i rved he rne n he onduc a wi ng up t nd ndi oft pa t r hi bus nes orde i d f o a us by t pa t r ofpa t s p pr ry, he rne s p i s rve r m e he rne rner hi ope t i udi t a o itonofapa t rhi opporuniy..' .Thi d ye ssspart ya ncl ng he pprprai rnes p t t ..' ) s ut xit e ael nd i pe en l f om a oblga i nsr a di t pa en oft deve opm e f e esabls d nde nd ty r ny i to eg r ng he ym t he l nt e t i he unde t Pa t r hi A g e m e orD e l pm e A g ee e . See PG I l .v.Ra he Pr . r he r ne s p r e nt ve o nt r m nt , nc t ods . l .576S. 2d438, ( 2003 (( c eofa i f c rin lesi pe ntofal nc, E. 443 Va. ) û aus cton or onve so i nde nde A l acton i contactand m ay pr de a separa e bas s di i f om t contact upon w hi one i n r ovi t i , stnct r he r , ch pat rmays a he . Roce v. he a Smih.nc.No.1 757,1 4 W L 1 1 a rne ue not r' ); l Huc s nd t I , 3l 99 03 484, t *2- ( Ci.Ct De 30,1 4)(fimi tilc tsde ii t al algai ofbr c 4 Va. r . c. 99 afr ng ra our' cson o low le tons ea h o fd cayd t fa d c n e so a db e c o c nr c t g t tej r ) Th P anif h v f iu ir uy, ru , o v r in n ra h f o ta t o o o h u y . e litfs a e pr pe l pl d a c us ofac i f c o ry e a e ton or onve s on be a e t Pl i if ha a l ge t tt For e ri c us he a ntf s ve le d ha he m r Ge r lPa t r a tng on be foft Pa t rhi pad Pa t r hi fmdst t De l ne a rne , c i hal he rne s p, i rne s p t o he veoper be or t y w e e d a t tt D e l pert n pa s t e f ndsont a he e iy owne f e he r ue nd ha he ve o he s ed hos u o not r ntt d by K i e . ( ns r Compl!!4- . SeeUni ra C.. Crdi Co . Ka a 92 S. 2d 359, . 7)2 ves l IT. e t m v. pln, E. 365 ( 95 )(ttngt ee nt ofc rin ae:tit om wrhi o rghtt posesi oft 1 6) sai he lme s onve so r û() he s p r i o s son he pr rya t tmeoft c rin a (i t wr ule r s ofdomi on o co r by ope t the i he onve so nd i) he ongf xecie ni r ntol d fn a to e t ep an ifsp o e t,h sd p iigpanif fp s e so ' ee d n v r h litf r p ry tu e rvn litf o o s si n). W ih r ga d t Cou I ,t Pl ntf sa l ge t twhe t For e Gene alPa t rpa d t e r o nt V he ai i f le ha n he m r r rne i t de l e f t t D e l pe be or i wasdue, he For erGene alPa t rbr c d hi he ve opm nt ee o he ve o r f e t t m r rne ea he s fduci r dute t t Parne s p. Fi i r du i owed by o pa t t ot pa t r a e i a y i s o he t r hi duc a y tes ne rner o her rne s r c omm on 1w dute a t i pe nt9om dute t tm a be i a i s nd hus nde nde is ha y mpos unde t Pa t rhi ed r he rne s p Ag e me .SeeVa. r e nt CodeAnn.j50- 1 B) Thepr sntc ei ditng s efom 73.02( . ee as s si uihabl r A uc t M ut . l A ugus a M ut t de e ntf ie t obt i a ur t i o m a i n usa ual n t ual he f nda a l d o a n cc a e nf r to r a di t co to oft hom ebeng i ur d t rby e e sy vi ai t c r c eg r ng he ndii n he i ns e hee xpr s l ol tng he onta t be w ee t pa test tds ii a l r quie ç d lge i obt ni ac ur t i or a i n t n he r i ha ûpec f c ly e r d due ii nce n ai ng c a e nf m to a m aki a 1ne s a y i pe tonsr ui e '' S. 2d a 294. W he e ,i t pr s nt nd ng 1 ce s r ns c i eq r d.' 645 E. t r as n he e e c e, he Parne s p A gr em e c a ne no e e spr s on t tf bi t For e G e r as t t r hi e nt ont i d xpr s ovi i ha or d he m r ne al Pa t rf om pa ng t de l pm e f e e r y. Thus unlke Aug t M ut lt For e rne r yi he ve o nt e a l , i us a ua he m r 2ThePli if ale t tt Fom e Ge r lPa t ra t tr h t M a rw how a u rt c r of antfs lge ha he r r ne a rne ced h oug he nage s nde he ontol Ki e . ns r Ge r lPa t rdi notvi a eanexp e sco r cual o son a t Pli tfs'c am s ne a rne d olt r s nta t pr vii nd he a n if l i ounds it . n ort W ih r ar t Count V l a V Il t Pl i i f ale t tt For e Gene a Pa t r t eg d o s 1 nd I , he a ntf s l ge ha he m r r l r ne , t M a ge , nd K i erc m it d f a t ough m i r pr s nt to co a ne i t Ge r l he na r a ns om te r ud hr s e e e a i ns nt i d n he ne a Pa t Ce tf c t t ti rner rii a e ha nduc d t Li ie Pa t rt m a t Fi t Ca t lCont i i n. e he m t d r ne o ke he fh pia rbuto ( Compl ! 31 64, ) ThePl ntfsf t raleg dt tt Li t Pa t rr i o t s . ! , 65 . ai if urhe l e ha he mied rne eled n he e r pr e t tonsa s f r d da a i t f m oft l n t tt Li t d Pa t m a t t e es n a i nd ufe e m ges n he or he oa ha he mie rner de o he Pa t s pt twa notc e ae unde t Pa t rhi Agre nt ( rnerhi ha s ontmpltd r he rnes p e me . Compl!!31 34) . , . The e a l tonsa e s fci ntt s a e a c us ofa ton f f a a neglgen s lega i r uf i e o t t a e c i or r ud nd i t m i r pr s nt ton. se e e ai The pr e c e i di tng s bl on isf c sf om M c e t . l M c e t , he es nt as s s i uiha e t a t r D vi t n D vit t con r c or s it pa entr ues f t a t ubm ted ym eq t onnst co a ne a s o n s a e e c r iyi t hat nt i d w r t t m nt e tf ng he consr c i ha bee c pl t d i a c da wih t a i a e co r ct 5 S. 2d a 3 t u ton d n om e e n c or nce t he pplc bl nt a . 07 E. t 45. Subs que ty, tw a di c r t tt c r c orha notc ple w ih t c r t e n l i s s ove ed ha he ont a t d om i d t he ontac s c fc tons l On t e f c s t Vi gi a Supr m e Cour r e t tt tt c us ofac i pe i i a i . d. hos a t , he r ni e t ul d ha ha he a e ton s ounde onl i co r c a noti t t a e t dute br c d e sed s e y i t c r c d y n nt a t nd n or bec us he i s ea he xi t ol l n he ont a t a nota c nd t ommonlw.J. a 347.l t pr e ca e ho vert For rGenea Pa t r a - t I L n he esnt s , we ,he me rl rne w a a fduc a y t t Parne s p. Th t du i be w e n t Fo m e G e a Pa t a t s i i r o he t r hi us he tes t e he r r ner l rner nd he Pa t r hi do notars s el f om t c t a t a t y di i t c e oft co r c ori rne s p i e ol y r he on r c , s he d n he as he nt a t n M c e t . The For e Ge r lPa t rbr a hed hi co m on 1 w dute t t Pa t r hi w he D vit m r ne a r ne e c s m a i s o he rne s p n he m ade m i r pr e a i i t Gene a Pa t r hi Ce tfca e. Thust ac i f f a a s e es nt tons n he r l rne s p r ii t he ton or r ud nd neglgentm i r i s epres aton are pr l pl 3 ent i opery ed. 3A lhough t Vigi a Supr m e Cour hasbe c ef t ts e r a i tt r ng eve y br a ofco r ti o t he r ni e t en ar ul o taf gua d ga ns u ni r e ch ntac nt a a tona ecam f fa 'M cDe t, S. 2d a 348 t tca i nes s d notbe i e prt ast cou t n ci bl li or rudy ' vit507 E. t , ha utous s houl ntr eed he r 7 C . 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CountI : Breach ofAf ii e G uarant X f lat y ThePli if aleget Fonue Ge r lPa t rbr ac d t Afiit Gua a y whe he a ntfs l he r nç a rne e he he flae r nt n f ie t pay t Exce sD e l e tCos s The De enda t a gue how e ,t tt Pl n if a ld o he s ve opm n t. f ns r , ver ha he ai tf s cam o s a e a c a m f rbr a h be a e t t r soft A fii t Gua a y r uie a w rte l t t t l i o e c c us he e m he fla e r nt eq r it n de ndfrpay ntt twa notma i t sc e.( . 1 a 1 .ThePli if r pond ma o me ha s de n hi as DktNo. 7, t 4) antfs es t tunde Secin 8()oft Afiit Guaa y,heGuaa or -her t Dee nt ha r to e he flae rnt t rnt s e he fnda s e e sywai da rghtt a sr l kofde nda adee e.( . 18,a 22) Tosae xprs l ve ny i o se tac ma s fns DktNo. t . tt ac am f rbr c oft Afii t Gua a y r quiest s me eeme sasar r quie t sa e l i o ea h he tlae r nt e r he a l nt e e r d o tt a br a h ofc ta tc am .Thus b al ngt e se eoft Afii t Guar nt t ny e c on r c l i , y legi he xit nc he flae a y, he Def nda s f iur t pay t de a pr vi i n oft A f ii t Guar nt a t m one ar dam a s e nt a l e o m r o so he fla e a y, nd he t y ge s t ne a a r ul,i t f m oft l tExc s De opm e Cos st tw e e pa bl by t usai d s es t n he or he os es vel nt t ha r ya e he For e Ge r lPa t r t Pl i if ha s fc e ty pl d a c ai f br c oft A fi i t m r ne a rne , he a ntf s ve uf i i n l e l m or ea h he tla e Gua an y. 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I . Conc us on V l i I i cl art tt Pl i if ha s fci nty pl t i c a m s ag ns t D e e nt t t s e ha he a ntf s ve uf i e l ed he r l i ai t he f nda s o be a l w e t pr e lo d o oc ed. A c di y,t De enda t ' M o i t D i m i s i D ENI . An cor ngl he f ns ton o s s s ED a opra eor rs l is t sday. ppr it de ha l s ue hi EN TER : Thi s : ?-? a o y 2012 /-Z d y fMa , ( ) , . . ' J Se ' rU nied St es Di t i dge t at s rct 11