City National Bank v. Tress et al, No. 7:2011cv00073 - Document 41 (W.D. Va. 2012)

Court Description: MEMORANDUM OPINION. Signed by Judge James C. Turk on 12/17/12. (sas)
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cteRK' OFFI U.B.DI s CE ATRM NOK ST. COURT I THE UNI N TED STATES DI STRI COURT CT FOR TH E W ESTERN DI STR I O F VI G I A CT R NI RO ANOK E DI SI VI ON FI LED ES VA DE2 17 2 1 92 J BKUL . D , CLERK PUT CLERK Y CI NATI TY ONAL BANK,a natonal i banki associ i asacqui of ng at on, rer cert n ass sfrom t FederalD eposi ai d he t Ins urance Cor poraton actng as i i r ceverofI pe i lCapialBank, e i m ra t C i lA c i N o. 7: c 73 vi ton : 11- v- M EM OM NDUM OPI ON NI By:Hon.Jam e C.Turk s Se or U ni e St e D i t i tJudge ni t d at s s r c Pl nt f , ai i f V. M O I E TRE SS,eta . SH l, D efendant s. Thi m a tri be or t Cour on De e ntsM oton t Dimi s ECF No.35. Bo h s te s f e he t f nda ' i o s s. 1 t pa tesha tld bre sa ahe rngwashe d on De e be ,1 201 t m a tri now rpe ri ve se i f nd ai l c m r 4, 2; he te s i f rdiposto Fort r as s tf t beow,t M o i t Dim isi DENI . o s ii n. he e ons e orh l he ton o s s s ED 1 . FACTUAL AND PRO CEDUR AL BACK GRO UND Forpum os oft m oton t dim i s t f t i t c pl i ta e t ken t be t ue es he i o s s , he ac s n he om a n r a o r . Frnci v.Gicomel,588F. 18 1 ( h Ci. a s a li 3d 6, 93 4t r 2009)(ii Eatr ShoeMkt.nc. JD. ctng sen r s I v. . Asocs Lt P'hi 21 F. 1 1 ( hCi.2000).OnDe mber27,2006,l ra Ca tl s . d. s p, 3 3d 75, 80 4t r ) ce mpe il pia Ba k la e $ ,0 ,00 t Ro n k Hodng , n o n d 32 00 .0 o a o e li s LLC (f a keHoligs). fn a t Tr s f no Ro dn ' Dee d n s e s a d Da hs o b h l o Ro n k Ho dn s sg e ap o s oynoeCç t' i fv ro n c , n e af f a o e l ig , in d r mis r t No e' n a o f ) l ralCa t lBn pr ii t r pa t l nson t tr a c tonssa e t en. mpe i pia nk, om sng o e y he oa he e ms nd ondii tt d her i Asac ton ofRoa ondii nokeHol ngsr ei ng t l n,I pe i Ca t Bn alo di ec vi he oa m ral pial nk s rquie pe s guaa isfom Dee nt Tr sa Da hs(ç ant '. f nt agee e rd ronal rnte r fnda s es nd c s Gum' y' Deenda s r d ) l eCo r h sara ye trdj d me ta an t fn a tDa h . No 2 . esi teo l rmann Th u t a le d nee u g n g is Dee d n c s ECF . 9 Trs s h ny e iig Def nt enda . t pa t moni sd undert Not Ata 1tm e r l va t t sm at r Pli ifCiyN ai na o y he e ue he e. 1 i s e e nt o hi te , antf t to l Bar (ç ',anai lbn ngasocai a a uie ofce ti a s t fom t Fe r l 1 k CNB' ) tona nki s iton, s cq rr ran s es r he deal D e i I ur nc Co por ton a tng asr e ve ofl pe i Ca t lBn i a orwast post ns a e r a i c i ec i r m ral pia nk, s nd/ he o r hol r a orpe s n e il t e or et Not a Gua a y. wne , de , nd/ r o ntted o nf c he e nd r nt On ora trNove be 1 2009, nokeHol ngsce s d m a ng pa e son t N ot fe m r , Roa di ae ki m nt he e a D e e nt Tr s a D a hsha notm a a pa en s a pe s lg r nt r oft nd f nda s es nd c ve de ny ym t s r ona ua a o s he N ot e. l. l LE G A L STA N DA R D The sa r on a moton t dimi s i f mii :t s vi a m o i t dim is t t nda d i o s s s n lar o ur ve ton o s s , he pli ifsa l ato m us tsae acl m t r le t ti pl usbl on isf c 'As r tv.I ba , antf leg i ns t ét t ai o e if ha s a i e t a e. hc of g l ' 556U. 662,678( ) çtr quiest pli ift a tc aef cs whe a ce edast e t t S. 2009 .t e r he antf o riult a t, n c pt l nl,ha (how' t t t pli if ha saed a c am e ilng hi t r i ,ie. t d a i lt of s ha he antf s tt l i ntti m o elef . , he pl usbiiy e tte n t rle .' a csv. a o li 5 8 F.d 1 6 1 3 (t Ci. 00 )( u tn l b l n ilme t o eif' Frn i Gic mel, 8 3 8 , 9 4h r 2 9 q o ig g a, ' 556U. a 678) S. t . 111 . A N ALY SIS Be a et eCo r' j s ito i b s do t edvest o t p ris teCo r a p is c us h u ts mi dcin s a e n h i riy f he a t ,h u t p le e t c ceofl w r e ofVigi a t f m sae.i r ni lw l he hoi a uls r ni, he onz tt <vigi a a ooksf vo a y upon c c of a r bl hoi e 1 w c a esi a co r c ,gi ng t m f 1ef e te pti t us lc r tm smw e .' iac a l us n nt a t vi he u1 f c xce n m ua i c l t s ' H t hi Cr dt Co p. S g t n 1 6F.d 6 4, 2 (t Ci. 9 9 . c u et p risc o e e iAm. r v. ine Bn k, 6 3 1 6 4 4 h r 1 9 ) Be a s he a t h s e t l ppl r ni ubsa i aw v igi a 1 i t c r c , t e Cour wila y Vigi as t ntvel . r ni aw n he ont a t 2 h l s n uppor oft M o i t Dimis Tr s s t f rh t eea gtm e s CNB hasnot t he ton o s s , e s e s o t hr r l nt : s fc e l a l ge t ti i t hol roft N ot ,t N ot w a no pr r y e uf i i nty le d ha t s he de he e he e s t ope l ndor e t CN B sd o 2Un e S cinFo ren(4 o teGu rny teGu rnyçh lb g v r db telwso tejzidcini d r e t u te 1) fh aa t,h aa t s al e o ene y h a fh l s ito n o s r whc t La di lctd(he( o et J rs ito n. ECFNo. - , E, tj1 l i u dsue ta teln i ih he n s o ae t Trp ry uidcin l' ' 15 Ex. a 4.t s n ip td h th a d s l a e i Roa oc t d n noke, r ni The e o e, r ni 1w ap i . Vigi a. r f r Vigi a a ples a t r or CN B c nd he ef e annote or e t N o e,a t N ot i c tonala t r f e nf c he t nd he e s ondii nd he e or t nf c bl The Cour nee notadd e st ea gumen sbe us t Cour co l me or ea e. t d r s hes r t ca e he t ncudest t ha e n i aloft e mg l sa e c e t t afe tonl t e or a lt oft Not no ve f l hes ment r on-c , hey f c y he nf ce biiy he e, t Trs ' o i tonsunde t Guaa y.Tr si re tya s rst tçgq t Not i no e ss blgai r he rnt es ncor cl s e t ha iif he e s t e or d,M r Tr s soblga i unde t N o ea enotti r The ef e unl s CNB c n nf ce . es ' i tons r he t r rgge ed. r or , e s a e or et oblga i t de l ngt Gua an y,t wi,t Not ,i cn nf c he i ton m ryi he z t o t he e t nnotsaea cai f whi t t l m or ch r i fc n begr nt d. ECF No.36, e .Supp.M ot Dim is a 4. es c t no a hort f ele a a e ' ' M m . s s , t Tr s ies ut iy or hi cai t tt Gua a y i une or e bl i CNB ca talo e or et Not .l f c , he s l m ha he r nt s nf c a e f nno s nf c he e n a t t Supr m eCour ofVigi ahasc ude t oppost . e t r ni oncl d he ie U nderV i gi a l w ,a g r nt i r ni a ua a y s a i pe ntc r c , w hi h t g r nt unde t ke ,i w rtng,upon a n nde nde ont a t by c he ua a or r a s n ii s t i tt ra ng, o be a we a ef t de ,orf t pe f ma eof ufk en mde tki t ns r bl or he bt or he ror nc s edut i c e oft f lle ofs eot rpe s whoi prma iy la et om y,n as he aitr om he r on s i rl ibl o pa orpe f m ....I a aci t e or ea i pe ntco r c ofgua an v. y ror n n ton o nf c n nde nde nta t r t t oblc i pr ee ngon t g r t noto t unde l ncnot Thus t he i ee s oc di he ua an v. n he ryi e. ,o rc e overon aguar nt t oblge m us esa ih.n o o he t ncs t a y, he i e t tbls m nc t r hi . he e se e a owne s p oft gua a y c r c . het r oft prmar xit nc nd rhi he r nt onta t t e ms he i y oblaai n a de a to t toblg ton by t de or a nonpa e o t i to nd f ul n ha i a i he bt . nd ym nt f he n mountduefom t a r nt rund t t r soft aua a v c r c .... r he ua a o er he e m he r nt onta t Thenon- nf c biiy ofano east t m a rdoe no ne s a iy e i uih e or ea lt t o he ke s t ce s rl xtng s t oblga i Se Fi lt & Cas Co. La kl nd,1 Va.1 18 8 S. 2d he i ton. e deiy . v. c a 75 78, 7, E. 3 6 3 9( 9 0 (u nngo sau eo l tto a ans p i r o lg rd e n t 0 , 0 1 4 ) r n i f ttt f i ains g i t rmay b io o s o mi e i s de ofg rntr.Howe r i t ei nooblgai ont patoft xtnguih bt uaa o ) ve ,f her s i ton he r he prncpa oblgor t n t r i a s none o t g r nt .... i i l i , he he e s lo n he ua a or M c n l v Na 'Ene .nc, 4 S. 2 2 4, 0 ( . 0 )(mp a i a de ) W h ti ce r Do ad . tl tr I .5 7 E.d 0 2 7 Va 2 01 e h ss d d . a s la fom M cDf d i t tan a ton s e ng t e or ea g r nt doe no de nd e usve y o r mal s ha c i e ki o nf c ua a y s t pe xcl i l n t va i t oft not buti a i pe ntc r c . he ldiy he e, s n nde nde onta t Thus e n t ug t sa ut of , ve ho h he tt e lm iatons had nm on t not i Lackl i ti he e n and,t pl ntf w as s ilabl t seek relefon t he ai if tl e o i he guar nt Ofco ls a t Supr m e Cour ofV i gi a m a c e r i t prnc palde oror a y. tr e, s he e t r ni de l a , f he i i bt oblgorhasno oblga i t pa t de , he ne t rdoest gua a t . i i ton o y he bt t n ihe he r n or I t i t ntc s ,none ofTr s sg oundsf dim is ladd es t c nta quesi n he nsa a e es ' r or s s a r s he e r l tonwhet rCNB hassa e aplusbl cli f r le . a et Gua a y i i pe ntfom he tt d a i e am or e if Bec us he r nt s nde nde r t Not t r e n quesi i whehe CNB ha s fce l pla t ee e sr uie by he e, he elva t ton s t r s ufi inty e ded he lm nt eq r d t Supr m eCour o Vigi a:é hee se a owne s p oft gua ant c r c ,t t r s he e t f r ni t xit nce nd t r hi he r y onta t he e m oft pr m a y o i a i and de a ton t toblga i by t de or a non ym e oft he i r blg ton f ul ha i ton he bt , nd pa nt he a mountd fom t guar nt undert t r soft g r nt c r c . M c nad,5 S. 2d ue r he a or he e m he ua a y onta t' Do l 47 E. ' a 207. Cour co l st tCNB ha i f c sa e apl usbl ca m f r if CNB a l d t The t ncude ha s n a t t t d a i e li or ele . lege t e se oft Guarnt ECFNo.1, he xitnce he a y. Compl! 30- ECFNo.15,Ex.E.CNB alge . ! 32; le d o e s i o t eGu rn y ECFNo. , mp . !3 - 5 CNB h salg dt tr o t e wn rhp f h aa t . 1 Co l! 4 3 . a le e he ems f h Guaa y,ECF No.1 Compl! 33, atc t Guaanyc r c t t Compli . rnt , . and ta hed he r t onta t o he antECF No.1 5,Ex.E.CN B al ge t t r oft prma y o i ton a t de a toft oblga i le d he e ms he i r blga i nd he f ul he i ton b t d b o , a o eHo dn s LLC. No. , mpl! 6 1 , 2 28 ECFNo. - ; y he e t r Ro n k l ig , ECF 1 Co . ! - 5 2 - ; 1 l ECF No.1 2. - CNB ha a s ale d t nonpa e by Tr s ast gua a t . s lo l ge he ym nt e s he r n or ECF No.1 Compl , . ! 3 40 ECFNo 15 Ex. ! 3- , . . - , E. Def nda ' m an contnton a or la gumen wa t tt defc e i soft Not e nts i e i t a r t s ha he i i nc e he e, es i l ass pecaly oughtt be e o c d by CNB,go t t oblga i owe by t de ora no t o nf r e o he i ton d he bt nd t o t e or a lt oft de by CNB agans t de o . tm a bet ca e butt f c he nf ce biiy he bt i t he bt r Tha y he s , he a t r m anst tCNB haspl usbl pl a d e r r quiedelm e .CNB m a notbe a et e i ha a i y e de ve y e r e nt y bl o pr dee de et tt de toblga i sile ss butt ti am a trpr ry a e s d on a ovi vi nc ha he b i ton tl xit , ha s te ope l ddr s e mo inf rs mmayj d me t to o u r u g n . 3 Be us CNB ha pl i y pl a a c am f rr le on a 1t ee e sr quie by t ca e s ausbl e ded l i o ei f 1 he lm nt e r d he Su e e Cour ofV igi a o a c a m o a gua a y,t Co tD ENI t M oton t D i m i s pr m t r ni n l i n r nt he ur ES he i o s s. 3A tor la gum e , Plitf noe ta d futu g n ha bene trda ans Ro n k Hodng , a r nt an if td h t ea lj d me t s e nee g i t a o e li s LLC,h te prnci de o undert N o ea Guaant TheCo te esesno o ni on t e f tofe r ofde a tast i pal bt r he t nd r y. ur xpr s pi on he fec nty f ul o whehe t o i i i duef rpur e oft Gua a y. t r he blgaton s o pos s he r nt 4 l . V CO N CLU SI N O The Cou tDENI t Defnda ' M oto t Dimis ECF No.35. r ES he e nts i n o s s . ENTER: s / Thi 7 - d yo De e e , 01 a f c mb r 2 2. 4 ' ' , Ho . a C. lk mes Ttr Se orUnie Stt sDititJ ni t d a e src udge