LPP MORTGAGE, LTD v. Club Comanche, Inc.

CourtDistrict Court, Virgin Islands
DecidedMay 29, 2023
Docket1:14-cv-00057
StatusUnknown

This text of LPP MORTGAGE, LTD v. Club Comanche, Inc. (LPP MORTGAGE, LTD v. Club Comanche, Inc.) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LPP MORTGAGE, LTD v. Club Comanche, Inc., (vid 2023).

Opinion

DISTRICT COURT OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX

LPP MORTGAGE, INC., ) ) Plaintiff, ) ) v. ) Civil Action No. 2014-0057 ) CLUB COMANCHE, INC.; RICHARD M. ) BOEHM, AS ADMINISTRATOR OF THE ) ESTATE OF MARY BOEHM, DECEASED; ) DONOVAN M. HAMM, JR., AS EXECUTOR ) OF THE ESTATE OF RICHARD J. BOEHM, ) DECEASED; RICHARD M. BOEHM a/k/a ) RICHARD “DERRYCK” BOEHM; MARK E. ) DAVIS; JAMES MCNAMARA, AS TRUSTEE ) OF THE JAMES MCNAMARA REVOCABLE ) TRUST, SUCCESSOR IN INTEREST TO ) FRANK MCNAMARA; DICK BOEHM ) ENTERPRISES, INC.; FLORENCE ) MCDONNELL; CITIZEN BANK OF LAS ) CRUCES; APPLEGLEN INVESTOR, LP; & ) JACK D. PICKEL, ) ) Defendants. ) __________________________________________) Appearances: Warren B. Cole, Esq., St. Croix, U.S.V.I. For Plaintiff

Shari N. D’Andrade, Esq., St. Thomas, U.S.V.I. Edward L. Barry, Esq., St. Croix, U.S.V.I. For Defendant Club Comanche, Inc.

Martial A. Webster, Sr., Esq., St. Croix, U.S.V.I For Defendants Richard M. Boehm, as Administrator of the Estate of Mary Boehm, Deceased and Dick Boehm Enterprises, Inc.

Mark E. Davis, Pro Se Scot F. McChain, Esq., St. Croix, U.S.V.I. For Defendant Jack D. Pickel

MEMORANDUM OPINION Lewis, District Judge THIS MATTER comes before the Court on Plaintiff LPP Mortgage, Ltd.’s (“Plaintiff”) “First Supplemental Motion for Award of Costs and Attorney’s Fees” (“First Supplemental Motion”) (Dkt. No. 122); “Amendment to First Supplemental Motion for Award of Costs and Attorney’s Fees” (Dkt. No. 133); and “Second Supplemental Motion for Award of Costs and Attorney’s Fees” (“Second Supplemental Motion”) (Dkt. No. 134). For the reasons that follow, the Court will grant in part and deny in part Plaintiff’s First Supplemental Motion and will grant the Second Supplemental Motion. I. FACTUAL BACKGROUND On September 12, 2014, Plaintiff commenced this action for debt and foreclosure of a mortgage on real property. (Dkt. No. 1). On August 12, 2020, the Court entered Judgment, which was thereafter amended, awarding Plaintiff $302,062.77 in principal, accrued unpaid interest, recoverable expenses, and post-Judgment interest accruing at the statutory rate pursuant to 28 U.S.C. § 1961(a) from August 12, 2020 until Judgment is satisfied.1 (Dkt. Nos. 105, 109). The Amended Judgment also provides that Plaintiff may seek an additional award of attorneys’ fees, costs, and expenses upon appropriate application with the Court at any time prior to entry of an Order confirming the sale of the Property. (Dkt. No. 109 at 3). On May 19, 2021, Plaintiff filed a “Notice of Publication” advising the Court that proper notice of the Marshal’s Sale had been published and the sale of the foreclosed property was

1 The Amended Judgment included an award of attorneys’ fees in the amount of $19,326.89. (Dkt. No. 109 at 3). scheduled for May 27, 2021. (Dkt. Nos. 117, 117-1). On the same day that the Notice was filed, Defendant Club Comanche (“Club Comanche”) filed a Notice informing the Court that it had filed for bankruptcy in the Bankruptcy Division of the District Court of the Virgin Islands. (Dkt. No. 118). The Magistrate Judge then issued an Order staying the instant proceeding pursuant to the automatic stay provision of the Bankruptcy Code. (Dkt. No. 119). The matter remained stayed

until September 2021 when Plaintiff notified the Court that Club Comanche’s bankruptcy action had been dismissed at Club Comanche’s request. (Dkt. Nos. 120, 121). Following the lifting of the bankruptcy stay, Plaintiff filed its First Supplemental Motion. (Dkt. No. 122). In that Motion, Plaintiff seeks a total amount of $34,714.20, consisting of attorneys’ fees of $11,687.50; statutory costs of $262.34; and costs recoverable under the terms of the Note and Mortgage—publication costs and force-placed flood insurance—in the amount of $22,764.36. (Dkt. No. 122-1 at 3).2 Thereafter, on October 27, 2021—the eve of the Marshal’s Sale—Club Comanche filed an “Emergency Motion to Deposit Funds in Court Registry to Satisfy Judgment and to Cancel

Marshal’s Sale” (“Emergency Motion”). (Dkt. No. 125). In its Emergency Motion, Club Comanche sought: 1) leave to deposit $350,000 in the Court’s Registry, stating that such amount would “more than satisf[y] the Amended Judgment, plus statutory post judgment interest, plus the amounts sought in the pending Supplemental Motion for Award of Costs and Attorneys’ Fees”; and 2) cancellation of the Marshal’s Sale. Id. at 3. Club Comanche also noted that while it sought to satisfy the Amended Judgment, Plaintiff “unreasonably refuse[d] to provide the updated

2 On November 29, 2021, Plaintiff filed an “Amendment to First Supplemental Motion for Award of Costs and Attorney’s Fees” (“Amendment”) stating that Plaintiff’s counsel made a clerical error in the First Supplemental Motion regarding the amount of fees paid to the U.S. Marshal. (Dkt. No. 133). Plaintiff seeks to amend the statutory costs in the First Supplemental Motion by $0.10 from $262.24 to $262.34 because the receipts reflect this total. indebtedness” in response to Club Comanche’s request for that information. Id. The Court granted the Motion, cancelled the Marshal’s Sale, and ordered Club Comanche to deposit a certified check in the amount of $350,000 with the Clerk of Court. (Dkt. No. 126). Following the cancellation of the Marshal’s Sale, Plaintiff filed a Second Supplemental Motion for Award of Costs and Fees. (Dkt. No. 134). In that Motion, Plaintiff requests $5,060.00

in attorneys’ fees incurred by Plaintiff subsequent to September 30, 2021 that are mainly associated with preparation for the Marshal’s Sale and the activities surrounding its eventual cancellation. Id. On December 21, 2021, the Court granted Plaintiff’s Motion for Interim Distribution of Funds (Dkt. No. 137), ordering the Clerk of Court to distribute $302,597.543 from the funds deposited by Club Comanche in satisfaction of the Court’s Amended Order and Judgment. (Dkt. No. 140). To date, $47,402.46 remains in the Court’s Registry. In its Opposition, Club Comanche argues that the additional attorneys’ fees requested in Plaintiff’s Second Supplemental Motion are unreasonable.4 (Dkt. No. 135). Club Comanche alleges that beginning on October 22, 2021—six days prior to the Marshal’s Sale—Club

Comanche sought to satisfy the Amended Judgment and contacted Plaintiff’s counsel by email and telephone to obtain the satisfaction amount. Id. at 2. Club Comanche asserts that despite its efforts Plaintiff’s counsel refused to provide the satisfaction amount and moved forward with its preparation for the Marshal’s Sale. Id. Accordingly, Club Comanche objects to the fees requested in Plaintiff’s Second Supplemental Motion on the grounds that Plaintiff acted in bad faith in

3 This amount consisted of the amount of Judgment entered, totaling $302,062.77, plus post- Judgment interest at 0.13% per annum from August 12, 2020 through December 21, 2021. (Dkt. No. 140).

4 Club Comanche did not file an opposition to the First Supplemental Motion. refusing to provide the satisfaction amount and continuing with preparation for the Marshal’s Sale. Id. at 4. In its Reply, Plaintiff rejects Club Comanche’s assertions that it unreasonably seeks attorneys’ fees and costs in its Second Supplemental Motion. (Dkt. No. 136). Instead, Plaintiff asserts that it reasonably incurred such fees and costs because Club Comanche had “merely asked”

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