Pegasus Holding Group Stables, LLC v. Lawrence Share

CourtSuperior Court of The Virgin Islands
DecidedAugust 21, 2020
DocketST-2014-CV-000069
StatusUnpublished
Cited by1 cases

This text of Pegasus Holding Group Stables, LLC v. Lawrence Share (Pegasus Holding Group Stables, LLC v. Lawrence Share) is published on Counsel Stack Legal Research, covering Superior Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pegasus Holding Group Stables, LLC v. Lawrence Share, (visuper 2020).

Opinion

IN THE SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST THOMAS AND ST JOHN *******x******

PEGASUS HOLDING GROUP ) CASE NO ST 2014 CV 0000069 STABLES LLC ) Plaintiff ) ACTION FOR DEBT AND ) BREACH OF CONTRACT vs ) ) LAWRENCE SHARE ) ) Defendant ) __—_) Cite as 2020 VI Super 59U

MEMORANDUM OPINION AND ORDER

111 Pending before the Court are the following

1 Defendant 5 Motion to Dismiss the Complaint with Points and Authorities filed on June 7 2016 and

2 Plaintiff’s Opposition to Defendant s Second Motion to Dismiss on June 30, 2016

Defendant 5 second Motion to Dismiss will be denied because when Viewing the facts alleged in the pleadings and inferences to be drawn from those facts in the light most favorable to the Plaintiff its claims are not barred by the statute of limitation or the statutes of fraud Further, Defendant 5 Motion relies upon matters outside the pleadings which emphasizes the material facts left to resolve

FACTUAL AND PROCEDURAL HISTORY

112 Plaintiff initiated this action on January 31, 2014 seeking damages for an alleged breach of contract and debt owed Plaintiff alleges that [a]t the end of 2009, at the request of Defendant, [Plaintiff] advanced $460 000 to HM Ruby on Defendant s behalf 1 Defendant allegedly made this request to Plaintiff to satisfy Defendant s obligations in an investment mechanism 2 Under the alleged terms of this investment mechanism, Defendant needed to deposit this money before January 1, 2010 3 In January 2010 recognizing the debt owed to Plaintiff from the $460,000 advanced on his behalf Defendant repaid $50,000 to [Plaintiff][,] promising to pay the remaining balance 4 Plaintiff alleges that Defendant has made no additional payments, and refuses to make

1 Compl fl 4 Id fl 5 3 [d 11 6 4 Id 11 7 Pegasus Hol(lmg Group Stable, LLC v Lawrence Share Case No ST 14 CV 69 Memorandum Opinion and Order Page 2 of9 2020 VI Super 59U

any remaining payments, and has an outstanding balance in excess of $410,000 not including interest, penalties, fees, and/or/attorney s fees 5

113 Based upon these allegations, the Complaint contains seven causes of action (1) breach of contract due to Defendant s alleged failure to repay the amount advanced to HM Ruby by Plaintiff 0n Defendant s behalf;6 (2) breach of implied in fact contract as an alternative to Count I if the Court determines that no express contract exists 7 (3) quasi contract as an alternative to Count I if the Court determines that no express contract exists;8 (4) fraud, based upon representations allegedly made by Defendant to induce Plaintiff to loan Defendant the money 9 (5) breach of covenant of good faith and fair dealing'10 (6) unjust enrichment11 and (7) promissory estoppel/detrimental reliance '2 Defendant filed his first Motion to Dismiss on May 5, 2014, which was denied on all stated grounds in this Court s September 14, 2015 Memorandum Opinion Defendant then filed his Answer to the Complaint on October 2, 2015

114 On June 7, 2016, Defendant filed his second Motion to Dismiss the Complaint with Points and Authorities Defendant argues that the Plaintiff failed to state a claim because there was no contract13 and that the statute of frauds applies for count one; '4 that a two year statute of limitations applies to counts two through seven;15 and that the clean hands doctrine applies to all actions in equity notably counts two, three, and six ‘6 On June 30, 2016, Plaintiff filed an Opposition to Defendant 5 Second Motion to Dismiss

APPLICABLE LEGAL STANDARD

I Federal Rule of Civil Procedure 12(b)(6) applies because it would be unjust to apply the Virgin Island Rule of Civil Procedure 12(b)(6) when the parties briefed Defendant’s second motion to dismiss prior to the March 31, 2017 implementation of the Virgin Islands Rules of Civil Procedure

115 The Complaint in this case was filed January 31, 2014 and Defendant s second Motion to Dismiss and Plaintiff’s Opposition were filed on June 7, 2016 and June 30, 2016, respectively Both parties rely on the plausibility pleading standard set forth in Bell Atlantic Corp v Twombly, 550 U S 544 (2007) and Ashcroft v Iqbal 556 U S 662 129 (2009) citing t0 the Federal Rule of Civil Procedure 12(b)(6) pursuant to then Superior Court Rule 7

[d 1] 8 See also Id fl ll (alleging same) 6 See Id 1111 12 17 (setting forth Plaintiff‘s breach of contract claim) 7 See Id 1111 18 22 (setting foxth Plaintiff‘s beach of implied in fact contract claim) 8 See Id 1111 23 28 (setting fonh Plaintiff‘s quasi contract claim) 9 See Id 111] 29 39 (setting foxth Plaintiff’s fraud claim) '0 See 1d 1111 40—42 (setting forth Plaintiff‘s breach of covenant of good faith and fair dealing claim) " See 1d 111] 43 56 (setting forth Plaintiff‘s unjust enrichment claim) '7 See Id 111] 57 61 (setting forth Plaintiff‘s promissory estoppel/detrimental reliance claim) 13 See Def 5 second Mot to Dismiss 8 14 See Id 15 See Id 9 13 16Seela/ 911 12 Pegasus Holding Group Stable, LLC v Lawrence Share Case No ST 14 CV 69 Memorandum Opinion and Order Page 3 0f9 2020 VI Super 59U

116 However, effective March 31, 2017, the Supreme Court adopted the Virgin Islands Rules of Civil Procedure, which supersede all previous civil procedure rules applicable to the Superior

Court, including the Federal Rules of Civil Procedure ‘7 As a result, the plausibility standard has been abolished for proceedings in any actions that were pending on March 31, 2017, unless the Supreme Court of the Virgin Islands specifies otherwise by order or the Superior Court makes an express finding that an injustice or infeasibility would result from the application of the Virgin Islands Rules of Civil Procedure '8

1|7 In light of the change in rules, the Court considers the timing of this filing well before March 31, 2017, along with the fact that both parties rely on the prior standard in their filings, and finds that it would be unjust to apply the Virgin Islands Rules of Civil Procedure and the notice pleading standard as set forth in V I R Civ P 8(a)(2) It would be unfair to expect the parties to anticipate the new notice pleading standard Therefore, the Federal Rules of Civil Procedure applies through Superior Court Rule 7 applying the plausibility pleading standard

11 The Defendant’s 12(b)(6) Motion to Dismiss will be converted to a 12(c) Motion for 3 Judgment on the Pleadings because a Motion to Dismiss under 12(b)(6) must be filed prior to the filing of a responsive pleading

118 Under the plain language of Federal Rule of Civil Procedure 12(b)(6), a motion to dismiss must be made before the first responsive pleading ‘9 Here, Defendant filed an Answer to the Complaint on October 2 2015 Therefore Defendant 5 second Motion to Dismiss will be treated as a motion for judgment on the pleadings and Federal Rule of Civil Procedure 12(c) applied 20

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Pegasus Holding Group Stables, LLC v. Lawrence Share
Superior Court of The Virgin Islands, 2021

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