Erie Properties, LLC v. Global Growth Holdings, Inc.

CourtIdaho Supreme Court
DecidedAugust 27, 2025
Docket51266 51616
StatusPublished

This text of Erie Properties, LLC v. Global Growth Holdings, Inc. (Erie Properties, LLC v. Global Growth Holdings, Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Erie Properties, LLC v. Global Growth Holdings, Inc., (Idaho 2025).

Opinion

IN THE SUPREME COURT OF THE STATE OF IDAHO Docket Nos. 51266 and 51616

ERIE PROPERTIES, LLC, a ) Wyoming limited liability company, ) ) Plaintiff-Counterdefendant- ) Respondent ) v. ) ) Boise, June 2025 Term GLOBAL GROWTH HOLDINGS, ) INC., a Delaware corporation; ) Opinion Filed: August 27, 2025 formerly known as “Academy ) Association, Inc.” ) Melanie Gagnepain, Clerk ) Defendant-Counterclaimant- ) Appellant, ) ) and ) ) ACADEMY ASSOCIATION, INC., ) a North Carolina corporation; and ) SPOKANE TEACHERS CREDIT ) UNION, a Washington credit union, ) ) Defendants. ) ____________________________________)

Appeal from the District Court of the First Judicial District of the State of Idaho, Bonner County. Lamont C. Berecz, District Judge.

The district court’s judgment is affirmed.

Condon Tobin Sladek Thornton Nerenberg, PLLC, Dallas, TX and Parsons Behle & Latimer, Boise, attorneys for Appellant, Global Growth Holdings, Inc. Jared T.S. Pace submitted argument on the briefs.

Givens Pursley, LLP, Boise, attorneys for Respondent, Erie Properties, LLC. Morgan D. Goodin submitted argument on the briefs.

_________________________________

1 BEVAN, Chief Justice. This appeal concerns the breach of a lease. Erie Properties, LLC (“Erie”) leased commercial property in northern Idaho to Global Growth Holdings (“Global”) for use as a corporate retreat. Erie alleged that Global failed to pay the required rent under the lease, and Erie was ultimately granted summary judgment for its damages and attorney fees. The district court dismissed Global’s counterclaim for unjust enrichment relating to costs Global incurred for the construction of new buildings on Erie’s property. The court also denied Global’s subsequent motion for reconsideration. On appeal, Global argues that the district court erred because genuine issues of material fact precluded summary judgment on the issue of whether Erie agreed to accept payments for the construction of a residence on the property in lieu of rent payments. For the reasons below, we affirm. I. FACTUAL AND PROCEDURAL BACKGROUND A. Factual Background 1. The parties The business entities involved in this case have convoluted ties, but all of them had their genesis with a man named Greg Lindberg. Lindberg is not a party to this case, but his actions precipitated the ultimate filing of the lawsuit by Erie. Erie was incorporated on April 15, 2009. Dunhill Holdings, LLC was the sole member of Erie, and Lindberg was its sole manager. Lindberg was also the sole member and manager of Dunhill. Eli Research, Inc. (later Academy Association, Inc. (“AAI”) and now Global) was originally incorporated on October 24, 1996. Lindberg was the president, sole principal officer, and sole director of Eli Research, Inc. This chart summarizes the relationship between the four entities: Lindberg’s Relationship to Erie and Global

2 2. The Property and Lease In October 2014, Erie requested financing from Spokane Teachers Credit Union (“STCU”) in the amount of $6,933,500 to purchase commercial real estate in Hope, Idaho, consisting of “three separate but adjacent properties that include two residential lake-side properties and a small island.” STCU initiated a third-party review of Erie’s loan proposal. The report prepared by the third-party reviewer states that “[t]he properties are to be leased to Academy Association, Inc., wholly owned by Greg Lindberg, for use as a corporate retreat for clients and employees.” Source of repayment of the loan would be “projected lease cash flow based on the lease agreement for the subject properties. . . . The annual lease arrangement will be $1.0 million per year with monthly payments triple net.” On November 18, 2014, Erie executed a deed of trust, with Erie as the grantor, STCU as the lender or beneficiary, and Sandpoint Title Insurance, Inc. as the trustee. On November 26, 2014, that deed of trust was recorded in Bonner County. The properties related to the deed of trust consist of the above-noted real estate in Hope, Idaho. On November 26, 2014, Erie entered a triple net lease (“Lease”) with AAI to lease the premises owned by Erie, including some of the parcels in the deed of trust discussed above. Under the Lease, AAI was to pay a base rent of $1,000,000 annually, in twelve monthly installments starting at $83,333.33. The payments were to increase 3% per year. The monthly payments were to be made “without deductions or offsets in advance during the Lease Term, on a [triple net] basis, with Lesee [sic] paying all operating expenses of the property, including real estate taxes, assessments, utilities and all other expenses.” AAI was obligated to pay rent to Erie or its agent at its office in Cheyenne, Wyoming. If rent was not paid as required in the Lease, AAI was obligated to pay a penalty as additional rent, 5% of the outstanding base rent currently due each day the rent is late beginning on the first day of the month in which it was originally due. This additional rent shall accrue for the following twenty (20) days. The parties agree that after twenty (20) days, the Lessee agrees that the default provisions of the agreement shall be fully enforced due to Lessee’s breach of Lease. Failure to pay this additional rent or late charges shall constitute a default of this Lease by Lessee. Additionally, an assignment of rents executed between Erie and STCU was recorded in Bonner County. The assignment transferred Erie’s interest in the rent payments that were the subject of the lease to STCU. 3 The Lease also included default and remedies provisions. Under those provisions, if AAI failed to comply with the Lease, Erie could terminate: “[i]n the event: (a) Lessee fails to comply with any term, provision, condition, or covenant of this Lease including the payment of all monies due . . .; Lessee shall be in default and Lessor shall have the option to do any one or more of the following: . . . Lessor may terminate this Lease . . . .” In 2015, Erie contracted with McMahon & Easterbrook Custom Builders to construct a residence on 90 Kullyspell Drive—one of the parcels on the property at issue in this appeal. The contract is signed by Lindberg as the Chairperson for Erie. McMahon explained during a deposition that all construction invoices were sent to Erie and that from the start of construction in 2015 until sometime in 2019, he was paid by Dunhill, the LLC that owned and controlled Erie. In total, Dunhill paid McMahon approximately $8,838,467.58 in construction costs, $8,350,624.17 of which were made by Dunhill on behalf of Erie. During the Lease term, and consistent with the provisions of the Assignment, it appeared that AAI made some monthly rent payments directly to STCU on the loan that was secured by the deed of trust. However, these payments were generally in the amount of $34,060.67,1 which was much less than the required base rent listed above. On December 31, 2018, Lindberg and several of his entities, including Dunhill, PBX Holdings, LLC, PBX Bermuda Holdings, Ltd., Private Bankers Life and Annuity, Ltd. (“PBLA”), entered into a Membership Interest Contribution Agreement with PBLA ULICO 20172 wherein, through various transfers, Dunhill transferred 100% of its membership interests in Erie to PBLA ULICO 2017. Lindberg signed on behalf of Dunhill, PBX Holdings, PBX Bermuda Holdings, and PBLA, and BNY Mellon signed as Trustee of PBLA ULICO 2017. That same day, PBLA ULICO 2017 (the new sole member of Erie) and Lindberg executed the First Amended and Restated Operating Agreement of Erie Properties, LLC, which appointed Lindberg as the sole manager of Erie. On March 30, 2020, AAI and Global filed Articles of Conversion to a Foreign Entity with the North Carolina Secretary of State. Those Articles provided that AAI was being converted into a Delaware corporation, Global Growth Holdings, Inc., and the mailing address was changed

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Erie Properties, LLC v. Global Growth Holdings, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/erie-properties-llc-v-global-growth-holdings-inc-idaho-2025.