City National Bank v. Tress et al, No. 7:2011cv00073 - Document 28 (W.D. Va. 2012)

Court Description: MEMORANDUM OPINION. Signed by Judge James C. Turk on 9/11/12. (med)

Download PDF
cv RK' OF CE U. DI COURT s FI S. ST. AT ROANOKE, VA FI LED I TH E U N I N TED STA TES D I STR I T CO UR T C FO R TH E W ESTERN DISTR I T O F V IR G I IA C N RO AN O K E D I VISIO N CITY N AT I N A L BAN K ,a nat onal O i banki associ i as acqui of ng at on, rer cert n asset from t FederalD epos t ai s he i lnsurance C orporat on actng as i i r ceve ofI pe i C api alBank, e i r m r al t SEF 1l2 1 22 A LI C DUDLE CLERK A X B;Z P CEK Y D O LR C i lA cton N o. 7: cvvi i : 11- 73 M em orandum O pi on ni By:H on.Jam e C.Turk s Seni U ni ed Stat Di t ctJudge or t es s ri Pl ntf , ai if M O ISH E TR ESS & Y EH U DA D A CH S, D ef endant s. Thi ma tri be o e t Cour on Pl i ifsuno s te s f r he t antf ppos d M oton f Sum ma yJ e i or r udgme nt ( . 1 a t Dee DktNo. 3) s o fndantDa hslAlhoughDac hasbe n gi nampl opporuniyt c . t hs e ve e t t o rs e pond, hasnotdone s Bot Ciy N a i lBa a D ac have i c t d t tor l he o. h t tona nk nd hs ndi a e ha a a gum e i unne es a y a t m a t r i no rpe f di poston. t r a ons s tf t r nt s c s r nd he te s w i or s ii For he e s e orh be ow ,t M oto f Sum m a y J l he i n or r udgm e i G R AN TED . nt s 1. FA CTUA L A N D PR O CED UR AL BA CK G RO UN D Th us a p a tc o amoinf rs mmayj d me ti t c nsr etefcsi t el h e u l rcie n to o u r u g n s o o tu h a t n h i t g m os f vor bl t t no m ovi pa t s Se bul Of s e Lt v. m .H o e A s ur Co. t a a e o he nng r y, ee a k f hor s d. A m s . , 377F. 408,41 ( hCi. 3d 8 4t r 2004) howe r be a et M oi f SummayJ ; ve , c us he ton or r udgme i nt s unoppos d,a lf c sa e t n f om t M oton f r Sum m a y J e 1 a t r ake r he i o r udgm en . n D e e be 27,2006, tO cm r l ilCa t Ba l ne $ 200, 00t Roa mpera pial nk oa d 3, 00. o nokeHol ngs LLC (t nokeHol ngs'. di , dRoa di ' ) 1Deenda Tr s i i t pr s ofbei s ved. Ther or ,heCour wïlonl a e st M otonast f nt e s s n he oce s ng er ef e t t l y ddr s he i o Def nda Da . e nt chs Dee nsTrs andDac ,onbe l ofRoa keHoli , i apr sor noe(é e' fnda t e s hs haf no dngs sgned omis y t t Not ' ) if n avorofl peralCapialBank,pr i i t repay t l m i t om s ng o he oanson t t m sand condii he er tons s a ed t r i t t he e n. A s a c ton ofRoa ondii noke Hol ngsr ce vi t l n, m pera Ca t lBa a s di e i ng he oa I i l pia nk l o r quie pe s lg rntesfom Dee nt Tr s a Da hstt rnt '. fndansa e d e rd rona uaa i ' r fnda s e s nd c û a y' Dee t gre Gua l t pa t monisdueunde t not s d Roa o y he e r he e, houl nokeHol ngsde a t di f ul. Ata ltm e r l va t t sm a t r Pl i ifCiy N a i lBa a na i 1 i s e e nt o hi te , a ntf t tona nk, tonalba ng nki as oc a i asa r rofce t n a s t f om t Fe r De i I ur nc Co po a i ac i s i ton, cquie rai s e s r he de al post ns a e r r ton tng asr e ve ofI pe i Ca t Ba i a orw a t owne , de , nd orpe s e il t ec i r m ral pial nk, s nd/ s he r hol r a / r on ntted o e or t N ot a Gua a y. nf ce he e nd r nt On orafe N ove ber 1 2009,Roa tr m , noke Hol ngsc s d m aki pa e son t N ot di ea e ng ym nt he e a D e e nt Tr s a D a hs ha notm a a pa en s a pe s lg r nt s oft nd f nda s e s nd c ve de ny ym t s r ona ua a or he N ot e. II. LEG A L STA N DA R D S mmayj dg n i a p o raewh r temo a t' h wsta t r i n g n ie u r u me t s p r p it e e h v n ' o h t hee s o e un s d s uea t a ymaeil a ta dt emo a ti e t ldt j d me t samatroflw. F d R. ip t s o n tra f c n h v n s ni e o u g n a t te a ' e . ' Ci P. a.AlhoughDee v. 56() t fndantDa hsha fiedt rs ndt t M oton,lavi i c s al o epo o he i e ng t unoppos t sdoesno r ivePli ifoft bur ni e byRul 56() ed,hi t ele antf he de mpos d e a. Alh u htefi r o ap ryt rs n t as mmayj d me t to ma t o g h al e f a t o epo d o u r u g n moin y u l a unc r r e t e f c se t bls d by t m oton,t m ovi pa t m us e ve ontove t d hos a t s a i he he i he ng r y t sils o t a t eu c nr v re f cse t l t ep ryt ç ud me ta amatr tl h w h t h n o to e td a t n ie h a t o s g n s te t aj ofl w . The f l e t r pond t t m oton doesno a om a i aly ac om pls a ' ' aiur o es o he i t ut tc l c ih t s Thus t c ut i co i i amotonf rs hi. ,he ot' n nsderng , i o umma yj r udgme ,mus rviw nt t e e t m oton,even i unoppos and det m i f om whati has bef e i w het he i f ed, er ne r t or t her t movi pa t i e ildt s he ng ry s ntte o umma yj men a amatroflw. r udg t s te a Cuse v. nAm.Liel .Co. 1 F. 41 41 ( hCi.1 ) Themovi pat beast tr Pa f ns , 2 3d 0, 6 4t r 993 . ng ry r he bu de ç o s r n i how i ta l t a e e ofa ge ne i s c e ni a m a e i lf t' Ce ot x t nii ly he bs nc nui s ue onc r ng ny t r a ac . l e ' Com.v. tet 477U. 317, ( 98 . Cart, S. 325 1 6) 11 1. A N ALY SI S Be a s teCo r'j rs it ni b sdo tedv riyo tepate ,h Co r a p is c u e h u ts u id ci s a e n h ie st f h ris t e u t p le o t c c ofl w r l s ofV igi a t f um sa e S igi a l w l he hoi e a u e r ni , he or t t . s r ni a ooks f vor bl upon c c of v a a y hoi e l w c a esi a c r t g vi t m f le f c e e i unus lc r um s a s ' H iac a l us n ontac , i ng he ul f e t xc pt n ua ic t nce . t hi ' Cr tAm. p. Si tBa 1 F.d 61 624( hCi.1 .Be aus t patesc e edi Cor v. gne nk, 66 3 4, 4t r 999) c e he ri hos V i g ni l i t co r c , 2 t Cour w ila y Vigi a s t i l . r i a aw n he nt a t he t l ppl r ni ubsantve aw U nde V igi a l w , gua a y i r r ni a a r nt s a i pe ntc r c , w hi h t gua a orunde t ke ,i w rtng,upon a n nde nde ont a t by c he r nt r a s n ii s fcentunde tki t bea wer bl f t debt orf t pe f ufi i ra ng, o ns a e or he , or he ronna eof nc s e dut i c s oft f l e ofs e ot rpe s w ho i prm a iy la e t om y, n a e he aiur om he r on s i rl i bl o pa orpe f r .I a ac i n t e or e a i e nde c t a tofgua a t t y r o m n n to o nf c n nd pe nt on r c r n y, he oblg i pr e ng o t gua a y,no ont unde l ngnot Thus t iee s oce di n he r nt t he ryi e. ,o r c ron a gua a y,t oblg m us e t bls a ong o he t ngs t e ove r nt he i ee t s a ih, m t r hi , he e s e e a owne s p oft gua a y c r c ,t t nns oft prm a y xit nc nd r hi he r nt onta t he e he i r oblg i a de a ton t toblg i by t d t ,a nonpa e oft i aton nd f ul ha i aton he eb or nd ym nt he a o due f om t gua a orunde t t r s o t gua a y c r c . m unt r he r nt r he e m f he r nt ont a t M c l v. tona Entprs s l ,5 S. 2d204,207( 2001 (ntr cttons Donad Nai l e ie .nc. 47 E. Va. ) i enal iai omit ) ted . Pl i ifhasm e is i ta bur n ofs w i t a enc ofa ge ne i s ofm a e i l a ntf t t nii l de ho ng he bs e nui s ue tra f t Pli ifha pr edt conrc bywhih Da hsa e t t pes lg r nt ( e ac. antf s oduc he ta t c c gred o he rona ua a y. Se DktNo.1 Ex.C. Dac c et S ol ey,unc tonal a irvoc bl g rnt )t . 4, ) hs hos o s utl abs ondii ly nd re a y uaa eel o 2Un e S cinFo ren(4) fteGu rny t gu rny'h lbeg v re b telwso t j rsito i d r e to ute 1 o h aa t,he aa t ' al o en d y h a fhe u idcin n s wh c t eLa d i I c td ( ' r p ry J rs ito ' . ( t No 1 , C, tj 1 . Un e p r g a hB o t e ih h n s o ae t ' o e t u id c in' ' Dk . . 4 Ex. a 4 ) d r a a r p f h he P l' Gu rny tr n t e ie i teGu rnyaed f da i teS c rt l tu n .Dk. .1 Ex C, t( ) aa t,ems o d fn d n h aa t r ei s n h e ui nsrme t( tNo 4, . a !B. ne y Unde pa a a A oft G ua a y, he Se iy I tum e i t de oft us e ut d by Roa r r gr ph he r nt t curt ns r nt s he ed r t xec e noke Hol ngs di , LLC ( tNo. 4, B, t!A) i tefv ro teoii lln e t sc r terp y n o ten t.Dk. . Dk . 1 Ex. a ( ,n h a o fh rgna e d r o e ue h e a me t fh oe ( tNo 1 Ex C, tjA. l s c in lt o te S c rt I sr me t tetr ' n 'sd f e a t eln d s rb dï 4, . a g ) n e to () f h e u i n tu n ,h e m ' d'i e i d s h a d e c ie n y La n Ex i t t eeo, ih i i Roa o e Vign a ( tNo 1 Ex. a j lt. hbiA h rt whc s n n k , r ii . Dk . . 4, B, t ()) Le rt f la pr nde he ul nd omptpa ntwhe due. (. a !B,j2. Thetr oft Not a yme n 'J t 'i ) ems he e nd G ua a y a e cl a a una bi r nt r e r nd m guous y de ons r t t t r soft a ee ent I i undi put d l m t a e he e m he gr m . t s s e t tRoa ha noke H ol ngs LLC,de a t on t l n. e e ntDac 's g t e a a son t di , f uled he oa D f nda hs i na ur ppe r he N ot and t Gua a y a a not r publc a t t d t hi s g t e on t G ua a y.The Coul e he r nt nd ay i tes e o s i na ur he r nt ' t tndst tDac sgne t pe s lGua a y a i t r f epe s l r ponsbl f t l a i ha hs i d he r ona r nt nd s he e or r onaly es i e or he o n m a t Roa de o noke Hol ngs LLC . di , 1V . DA M A G E SJ BILI LIA TY l is r ques f dn age ,Pl i i fa l est i ha s f r d da age i t a ountof n t e t or m s a ntf leg hat t s uf e e m s n he m $2, 62l05 a ofOc obe 1 2011 wih i e e tt r n a t c r t r t ofe g e n 482, . s t r 7, , t nt r s he eo t he ontacual a e i ht e ( )pec ntpe a 18 re r mmm untlf l pad.TheCo t e mi dt c rc ( . 1 Ex. i uly i ur has xa ne he onta t DktNo. 4, A)t afda tpr ngda ge ( . 1 ,a ot rrlva doc ,he fi vi ovi ma s DktNo. 4) nd he ee nt ument a tndst s nd i he Pl i if suno a ntf ppos d r e eque tf da a st be t pr rm e s e. r f e t Cour g a s s or m ge o he ope a ur The e or , he t r nt s ummayj me t Pli ifi t n r udg nt o antf n he mountof$ 48 62105a ofOcobe 1 2011 The 2, 2, . s t r 7, . pr rr t ofi e e t how e r i am or dif c tm a t r ope a e nt r s , ve , s e f i ul te . Pl i ifha s a e t tt con r c ua de a tr t of 1 i t pr rm e ur of a ntf s t t d ha he t a t l f ul a e 8% s he ope as e d ma e .nt sdv ri a to teCo r as a pisVign a1w a t p eu g n itrs. a g s l hi iest cin,h u t lo p le r ii a s o rj d me tn eet y SçeHia hiCrdi Am.Com . Si tBank,166F. 61 633( h Ci.1 (i r ni lw tc e t v. ane 3d 4, 4t r 999) d gi a a vi g v r st ea r o p eu g n itrs i adv riyc s .) Untd Sae v. l rRe tA o en h wad f rj d me t n eet n ie st a e' ' ie tts Dol n ', a Ca Sys.l , 2F, 938,940( hCi.1 (sslaelw a ist quesi i vi r . nc.71 2d 4t r 983) çl tt a pple o tons nvol ng prj d me titrs i dv riyc s s)(iigc s s. a pia l Vigni saueg v r i eu g n n eet n iest a e . ctn a e) The p l b e r i a tt t o enng c prj eudgme i ers i Va. nt nt et s CodeAl j8. -38 W hehe prj me i ers s dbe m. 01 2. t r eudg nt nt e t houl a r dund 58. -382i amatrwihi t s wa de er 01 s te t n he ounddicei oft dititc tSe s rton he src our. e Ha nnonAnnsr & Co. SumiomoTr t& Ba ngCo.973F. 359,369( hCi.1 . tong v. t us nki , 2d 4t r 992) , Dar a dl . v. uha, 4 S. 2 7 9 8 ( . 9 4 . t t p o e i tr s rt , iyln ns Co. Do t t4 9 E.d 9 , 01 Va 1 9 ) As o he r p r nee t ae j8. -382pr dest tf neg ibl i tu nt,her t ofi ees s lbet ttae 01 ovi ha or ota e nsr me s t ae ntr t hal ha t t r s cii d i t i t m e . l i unc e t d t tt r t pr ded f r i t i t m e was pe fe n he nsnz nt' t s ont s e ha he a e ovi ' o n he ns nz nt 1 % pe amum.( eDktNo.1 Ex. !8) Theeor t i ers fom Ocobe 1 2011 8 rl Se . 4, A, . rf e,he nt e t r t r 7, untlt dae oft e r oft sor rs l be l . orgi a ountof$2, 2, 1. pl i he t he nty hi de ha l 8% The i nal m 48 62 05, us 18 i e e tf om O c obe 1 2011 t t da e oft e r oft sor r yi l a t a a ountof % nt r s r t r 7, o he t he nty hi de , e ds ot l m $2,886, 12. 642. 3 F d rllw, ahe ta saelw, o r st c luaino p s-u g n itrs i e ea a rt r h n tt a g ven he ac lto f o tj d me t nee t n di riyc es Se For tSalsCor v. ngfed,881F. 111 11 (t Ci.1 ) The vest as . e es e p. Bedi il 2d , 3 4h r 989 . a i bl f de a sa ut pr vi f i e e ta a s cii d r t ,c m onl r f r e t a t pplca e e r l t t e o des or nt r s t pe fe a e om y e e r d o s he lg l ae 2 U. C. 1 61 Th rf r, nee t ntej d me t fe t d t o tee tyo ti e a rt. 8 S. j 9 . eeo e itr s o h u g n a tr he ae f h nr f h s or rs l bet l galr t . de hal he e a e V. CO NC LU SI N O Th Co r GRANTSt ePlit fsMo infrS mma yJ dg n ( tNo. 3 a d e ut h ani f to o u r u me t Dk . 1 ) n e esj me agans Def ntDa hsi t n ntr udg nt i t enda c n he mountof$2, 6, 1 pl i ees a t 88 642.2, us ntr t t he l lr t un i f l pai I t e ntt tco- enda tTr s i a s he d t be la e t ega a e t l uly d. n he ve ha Def n e s s l o l o i bl o Plitf, ewil ej i t a s v rlyl bl wi Dee d n Da hs an if h l b o nl nd e eal i e t fn a t c . y a h ENTER: s / Thi / d yo S p e e, 01 . a f e tmb r 2 2 KJ Hon. am es C.Tur k Seni Unied St esD i r ctJudge or t at sti 3Cac aedusng t N orh Car i Cour Syse J lult i he t olna t tm udgm e Cae ra nt lnda t h :www.c o dso Fco MscRsl d me t luao/ e / / n c u .r u / /u g ncac ltr.

Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.