Arcturus International LLC v. Geller-Stoff

CourtDistrict Court, N.D. Georgia
DecidedFebruary 2, 2024
Docket1:21-cv-05155
StatusUnknown

This text of Arcturus International LLC v. Geller-Stoff (Arcturus International LLC v. Geller-Stoff) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arcturus International LLC v. Geller-Stoff, (N.D. Ga. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION ARCTURUS INTERNATIONAL LLC, Plaintiff, CIVIL ACTION FILE v. NO. 1:21-CV-5155-TWT DARLENE GELLER-STOFF, Defendant. OPINION AND ORDER This is an action for breach of contract. It is before the Court on

Defendant’s Motion for Partial Summary Judgment [Doc. 41]. For the reasons set forth below, the Defendant’s Motion for Partial Summary Judgment [Doc. 41] is GRANTED in part and DENIED in part. I. Background1 This case involves an alleged breach of contract and conversion of nearly $1.5 million as well as a residential home. The Plaintiff Arcturus International LLC (“Arcturus”) is a Delaware limited liability company in the business of

real estate development and film production. (Compl. ¶¶ 4, 8). The Defendant Darlene Geller-Stoff is the owner and sole member of a consulting and

1 The operative facts on the Motion for Summary Judgment are taken from the parties’ Statements of Undisputed Material Facts and the responses thereto. The Court will deem the parties’ factual assertions, where supported by evidentiary citations, admitted unless the respondent makes a proper objection under Local Rule 56.1(B). professional services firm. (Def.’s Statement of Undisputed Material Facts ¶ 6). The Third-Party Defendant David Allen Weisman is a real estate developer, investor, and former CEO of several companies. (Compl. ¶ 8).

Weisman has not been a member of Arcturus, individually or through a company, since 2014. (Def.’s Statement of Undisputed Material Facts ¶ 93). On May 25, 2018, Bradfield LLC obtained 100 percent interest in Arcturus. ( ¶ 97). During Bradfield LLC’s ownership, Weisman was never a member, officer, or employee of Arcturus. ( at ¶ 135). In September 2019, Bradfield LLC transferred its interest in Arcturus to Michael Quakenbush, who remains

the managing member ( at ¶ 111, 120; Ahern Aff., Ex. F). Geller-Stoff and Weisman met in 2013, and the two had a personal relationship that was “romantic” and/or “very deep” that lasted from August 2013 through June 2020. (Def.’s Statement of Undisputed Material Facts ¶¶ 9, 11; Pl.’s Response to Def.’s Statement of Undisputed Material Facts ¶ 11). In 2016, they formed Anderlex Holdings LLC (“Anderlex”). (Def.’s Statement of Undisputed Material Fact ¶¶ 15, 19). Throughout 2016, Weisman caused

$1,491,990 to be deposited into the Anderlex operating account with Bank of America (“Anderlex Bank Account”). ( at ¶¶ 19, 20, 27, 33, 34). These funds came from Arcturus and have been referred to in this case as the “Arcturus Fund.” (Pl.’s Response to Def.’s Statement of Undisputed Material Facts ¶¶ 27, 33, 34; Def.’s Br. in Supp. of Def.’s Mot. for Summ. J., at 7, 9; Pl.’s Br. in Opp’n to Def.’s Mot. for Summ. J., at 5-6). 2 Weisman used money from the Anderlex Bank Account for Arcturus’s business as well as his personal expenses. (Pl.’s Response to Def.’s Statement of Undisputed Material Facts ¶¶ 28-29). Similarly, money was transferred

from the Anderlex Bank Account into Geller-Stoff’s personal checking account. ( at ¶ 40).2 In June 2016, Anderlex created a stock trading account with Merrill Edge and used the account for margin trading. (Def.’s Statement of Undisputed Material Facts ¶¶ 48-49, 51, 55). After Anderlex shut down in the summer of 2017, all but $300 in the Anderlex Bank Account was transferred to Geller-Stoff’s personal bank account and trading accounts at Bank of

America, and the margin debt and stocks in the Anderlex Trading Account were transferred into Geller-Stoff’s personal trading account at SunTrust. ( at ¶¶ 41, 43, 57). Weisman continued to execute stock trades for the Arcturus Fund after the funds were transferred to the SunTrust Trading Account, which realized a loss of $69,230.88 in 2018. (Pl.’s Response to Def.’s Statement of

2 Arcturus argues that the information on which ¶ 40 of Geller-Stoff’s Statement of Undisputed Material Facts relies is hearsay that is inadmissible for purposes of the Motion for Summary Judgment. (Pl.’s Response to Def.’s Statement of Undisputed Material Facts ¶ 40). Without the benefit of briefing on this issue, it appears to the Court that this may be a summary of voluminous recordings pursuant to Fed. R. Civ. P. 1006 with the underlying information falling under the business records exception to hearsay. Furthermore, Arcturus does not challenge the accuracy of any of the information in the spreadsheet. ( ). To the contrary, Arcturus states that the information “provides substantial support” for its position and uses the information in its brief. ( ; Pl.’s Br. in Opp’n to Def.’s Mot. for Summ. J., at 4-5, 15-16). For these reasons, the Court will consider this information for the purposes of this Order. In future pleadings, Arcturus may provide further argument on why the spreadsheet is inadmissible. 3 Undisputed Material Facts ¶ 59). In the summer of 2018, Geller-Stoff loaned $600,000 to DP2018 SPV, LLC to fund a tour in Mexico by the band Deep Purple. (Def.’s Statement of

Undisputed Material Facts ¶ 45). The money came from the same bank account in which the assets of the Anderlex Bank Account were deposited. ( at ¶ 43, 46). DP2018 SPV, LLC executed a promissory note committing to repay the loan to Geller-Stoff. ( at ¶ 47). On May 25, 2018, Geller-Stoff purchased real property located at 11820 Mt. Laurel Drive, Roswell, Georgia (“Mt. Laurel Property”) from Arcturus for

$675,000 ( at ¶ 8). Geller-Stoff obtained a loan to help her pay for the property. ( at ¶ 68). When Geller-Stoff purchased the Mt. Laurel Property, Weisman was living in the home and continued to do so after the purchase. ( at ¶ 61-62). Following the unraveling of the relationship between Geller-Stoff and Weisman in mid-2020, Geller-Stoff pursued a dispossessory action to evict Weisman. (Compl. ¶¶ 45-47). Arcturus subsequently made a written demand for the balance of the Arcturus Fund and for an accounting of its cash and

securities. (Compl. ¶ 52). Geller-Stoff rejected the demand. (Compl. ¶ 53). Arcturus brought the present suit, and Geller-Stoff now moves for summary judgment. II. Legal Standard Summary judgment is appropriate only when the pleadings, depositions, and affidavits submitted by the parties show that no genuine issue 4 of material fact exists, and that the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a), (c). The court should view the evidence and draw any inferences in the light most favorable to the nonmovant.

, 398 U.S. 144, 158-59 (1970). The party seeking summary judgment must first identify grounds that show the absence of a genuine issue of material fact. , 477 U.S. 317, 323-24 (1986). The burden then shifts to the nonmovant, who must go beyond the pleadings and present affirmative evidence to show that a genuine issue of material fact exists. , 477 U.S. 242, 257 (1986).

III. Discussion Geller-Stoff raises several arguments in support of her Motion for Summary Judgment. The Court addresses each in turn. A. Whether Arcturus is Properly Before the Court The Court starts by analyzing whether this case is properly before the Court. Geller-Stoff argues that Weisman initiated and has guided the litigation for Arcturus and did so without proper authority since “there are no documents

authorizing Weisman to act on Arcturus’s behalf and Weisman is not the Manager of Arcturus.” (Def.’s Br.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Adickes v. S. H. Kress & Co.
398 U.S. 144 (Supreme Court, 1970)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Chatham Amusement Co. v. Perry
117 S.E.2d 320 (Supreme Court of Georgia, 1960)
Jakel v. FOUNTAINHEAD DEVELOPMENT CORP.
534 S.E.2d 199 (Court of Appeals of Georgia, 2000)
Bowden v. MEWS DEVELOPMENT CORPORATION
277 S.E.2d 653 (Supreme Court of Georgia, 1981)
Engram v. Engram
463 S.E.2d 12 (Supreme Court of Georgia, 1995)
Black v. Maddox
30 S.E. 723 (Supreme Court of Georgia, 1898)
Larned v. Wentworth
39 S.E. 855 (Supreme Court of Georgia, 1901)
Edwards v. Sewell
656 S.E.2d 246 (Court of Appeals of Georgia, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
Arcturus International LLC v. Geller-Stoff, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arcturus-international-llc-v-geller-stoff-gand-2024.