Harbour v. Sirico

CourtDistrict Court, M.D. Louisiana
DecidedMarch 18, 2021
Docket3:18-cv-01055
StatusUnknown

This text of Harbour v. Sirico (Harbour v. Sirico) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harbour v. Sirico, (M.D. La. 2021).

Opinion

UNITED STATES DISTRICT COURT

MIDDLE DISTRICT OF LOUISIANA

MICHAEL HARBOUR AND TASMAN HOLDINGS, LLC CIVIL ACTION VERSUS NO. 18-1055-JWD-EWD LOUIS ANTHONY SIRICO AND LISA GRACE LOUD

RULING AND ORDER This matter comes before the Court on the Ex Parte Motion for Rule 54(b) Certification (Doc. 55) filed by Plaintiff Tasman Holdings, LLC (“Plaintiff” or “Tasman”). Defendants Louis Anthony Sirico and Lisa Grace Loud (collectively “Defendants”) oppose the motion. (Doc. 59.) Plaintiff has filed a reply. (Doc. 60.) Oral argument is not necessary. The Court has carefully considered the law, the facts in the record, and the arguments and the submissions of the parties and is prepared to rule. For the following reasons, the motion is granted. I. Introduction A. Factual Background1 This action arises out of a loan secured for the renovation of a hotel purchased by LL Hotels, LLC (“LL Hotels”). LL Hotels is a limited liability company created by Defendants to purchase the hotel. In connection with these renovations, Defendants obtained two promissory notes: the Tasman Note, which is the subject of the instant motion, and the Harbour Note. 1. Tasman Note

1 For a full recitation of the facts in this case, see this Court’s March 18, 2020 Ruling and Order (Doc. 50). On April 14, 2014, before renovations started on the hotel, LL Hotels obtained financing from Maple Bridge Funding, LLC through a promissory note dated April 14, 2014 in the amount of $1,050,000.00 (the “Tasman Note”). (Doc. 37-2.) On that same day, Maple Bridge Funding, LLC transferred the Tasman Note to Ability Insurance Company. (Doc. 37-2 at 45.) Subsequently, on February 26, 2016, Ability Insurance Company transferred the Tasman

Note to Tasman Holdings, LLC by an Act of Transfer and Assignment of Promissory Note and Related Security without Recourse. (Doc. 37-2 at 46–57.) At the time of the transfer, Tasman Holdings was managed by Michael Harbour (“Harbour”).2 The Tasman Note has been in default for non-payment since October 16, 2015. (Doc. 37-1 at ¶ 12.) Default interest, fees, and attorneys’ fees continue to accrue. (Doc. 37-1 at ¶ 13; Docs. 37-2, 37-3.) 2. Harbour Note3 This lawsuit also involves a second note—the Harbour Note, which is a separate note from the Tasman Note and was executed roughly a year after the Tasman Note. (Doc. 10 at 5.) Specifically, on or about February 5, 2015, LL Hotels executed a promissory note and mortgage

on the hotel in favor of Michael Harbour, pursuant to which Harbour agreed to lend LL Hotels $1,000,000.00 (the “Harbour Note”). (Doc. 10 at ¶ 15.) Some time thereafter, Defendants defaulted on this note too. Subsequently, on May 3, 2016, Harbour filed foreclosure proceedings against the hotel, and the order of executive seizure was filed on May 3, 2016 and signed on May 9, 2016. (Doc. 16-7.) Following these foreclosure proceedings, Tasman voluntarily cancelled the security interest in the hotel on August 9, 2016.

2 See Doc. 37-1 at ¶ 2. 3 While the Harbour Note is not the subject of the instant motion, the Court discusses it to the extent it is relevant for purposes of the present motion involving the Tasman Note. (Doc. 37-2 at 58.) Tasman was not a party to the transaction or the foreclosure on the property secured by the Harbour Note and Mortgage. (Doc. 50 at 18, Doc. 55-1 at 2.)

B. Procedural Background On October 25, 2018, Tasman and Harbour filed suit against Defendants on both the

Tasman Note and the Harbour Note in the 19th Judicial District Court. (Doc. 1-2.) On November 30, 2018, Defendants removed the suit to this Court. (Doc. 1.) Defendants then filed an Answer and asserted counterclaims against Tasman. (Doc. 10.) However, Defendants voluntarily dismissed their counterclaims on February 12, 2019 by Notice of Voluntary Dismissal without Prejudice of Counterclaims. (Doc. 17.) Defendants do not have any counterclaims pending against Tasman. On June 3, 2019, a separate entity, LL Hotels, intervened in the lawsuit against both Tasman Holdings and Michael Harbour. (Doc. 31.) On August 23, 2019 Tasman filed a Motion for Summary Judgment (Doc. 37) seeking judgment on its claims against Defendants arising out

of the Tasman Note and Guaranties. On March 18, 2020, this Court granted Tasman’s motion for summary judgment finding that there were no genuine issues of material fact regarding Defendants’ liability to Tasman under the Tasman Note and that it was entitled to judgment as a matter of law. (Doc. 50.) The Ruling and Order entered by the Court on March 18, 2020 provide in relevant part: IT IS ORDERED that Tasman Holdings, LLC’s Motion for Summary Judgment (Doc. 37) filed by Tasman Holdings, LLC is GRANTED.

IT IS FURTHER ORDERED that Defendants Louis Anthony Sirico and Lisa Grace Loud are liable in solido to Tasman Holdings, LLC, in the principal amount of $1,050,000.00, plus interest accruing through July 31, 2019 in the amount of $726,600.00, plus five (5%) percent late fees in the amount of $88,830.00, for a total of $1,865,430.00, plus interest accruing until paid. (Doc. 50 at 19.)

On April 1, 2020, Tasman filed the instant motion to have this Court’s March 18, 2020 Ruling and Order certified as final under Federal Rule of Civil Procedure 54(b). (Doc. 55.) In support of its motion, Tasman argues that this Court’s Ruling resolved all of its claims and disposed of all of Defendants’ affirmative defenses. Additionally, Tasman contends that the only remaining claims in this suit arise out of and relate to a separate note—the Harbour Note—entitling it to a final judgment with no just reason for delay. (Doc. 55.) II. Discussion A. Relevant Standard Rule 54(b) is an exception to the rule that a final judgment is appealable only after the adjudication of the rights and liabilities of all parties to a proceeding. Westmoreland v. Venice Marine & Outdoor Consultants, Inc., 2018 WL 2124040, at *1 (E.D. La. May 8, 2018). The rule provides in pertinent part: When an action presents more than one claim for relief–whether as a claim, counterclaim, crossclaim, or third-party claim–or when multiple parties are involved, the court may direct entry of a final judgment as to one or more, but fewer than all, claims or parties only if the court expressly determines that there is no just reason for delay….

Fed. R. Civ. P. 54(b). Thus, to certify an otherwise interlocutory order for immediate appeal, a district court must make two separate findings under Rule 54(b): A district court must first determine that it is dealing with a “final judgment.” It must be a “judgment” in the sense that it is a decision upon a cognizable claim for relief, and it must be “final” in the sense that it is “an ultimate disposition of an individual claim entered in the course of a multiple claims action.” Once having found finality, the district court must go on to determine whether there is any just reason for delay. Curtiss-Wright Corp. v. Gen. Elec. Co., 446 U.S. 1, 7-8 (1980) (citing Sears, Roebuck & Co. v. Mackey, 351 U.S. 427, 76 (1956)). The Fifth Circuit has explained that Rule 54(b) “reflects a balancing of two policies: avoiding the ‘danger of hardship or injustice through delay which would be alleviated by immediate appeal’ and ‘avoid[ing] piecemeal appeals.’ ” Eldredge v. Martin Marietta Corp., 207

F.3d 737, 740 (5th Cir. 2000) (quoting PYCA Indus., Inc. v. Harrison Cty. Waste Water Mgmt. Dist.,

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