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.