Solar Leasing, Inc. v. William L. Hutchinson

CourtDistrict Court, Virgin Islands
DecidedApril 26, 2024
Docket3:17-cv-00076
StatusUnknown

This text of Solar Leasing, Inc. v. William L. Hutchinson (Solar Leasing, Inc. v. William L. Hutchinson) 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
Solar Leasing, Inc. v. William L. Hutchinson, (vid 2024).

Opinion

DISTRICT COURT OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX

SOLAR LEASING, INC., ) ) Plaintiff, ) ) v. ) Civil Action No. 2017-0076 ) WILLIAM L. HUTCHINSON, ) ) Defendant. ) ____________________________________)

Attorneys: A. Jeffrey Weiss, Esq. St. Thomas, U.S.V.I. For Plaintiff

Christopher Allen Kroblin, Esq. St. Thomas, U.S.V.I. Shari Natalya D’Andrade, Esq. St. Thomas, U.S.V.I. For Defendant

MEMORANDUM OPINION Lewis, District Judge THIS MATTER comes before the Court on Plaintiff Solar Leasing, Inc.’s (“Plaintiff”) “Motion to Confirm Arbitration Award, for Award of Prejudgment Interest and Attorneys Fees; and Combined Memorandum of Law in Support” (“Motion to Confirm”) (Dkt. No. 62); Defendant William L. Hutchinson’s (“Defendant”) “Notice to the Court” (Dkt. No. 64); and Plaintiff’s “Notice of Partial Payment.” (Dkt. No. 65). For the reasons that follow, the Court will confirm the Arbitration Award, deny the request for prejudgment interest, and grant in part the request for attorneys’ fees in the amount of $1,860.00. I. BACKGROUND Plaintiff is a California corporation and Defendant was the managing member or principal of Dun-Run Golf, LLC; Dun-Run Development, LLC; and Dun-Run Holdings, LLC (collectively “Dun-Run”). (Dkt. No. 1 ¶¶ 1-2; Dkt. No. 10 ¶ 2). Dun-Run owned and operated the Mahogany Run golf course on St. Thomas, United States Virgin Islands. (Dkt. No. 1 ¶ 2; Dkt. No. 10 ¶ 2).

On or about February 13, 2013, Plaintiff and Defendant, acting on behalf of Dun-Run, entered into a contract (“Lease Agreement”) for the installation and lease of a solar energy system on the golf course. (Dkt. No. 1 ¶ 5; Dkt. No. 10 ¶ 5). The lease was for a 13-year term. (Dkt. No. 1 ¶ 5; Dkt. No. 10 ¶ 5). Defendant personally guaranteed Dun Run’s obligations pursuant to the Lease Agreement. (Dkt. No. 62-4). In September 2017, the solar energy system was completely destroyed by Hurricane Irma. (Dkt. No 62-1 at 3). On December 21, 2017, Plaintiff filed this action against Defendant. (Dkt. No. 1). Plaintiff asserted various claims—all generally revolving around the allegation that Dun-Run failed to maintain windstorm insurance for the solar energy system. (Dkt. No. 62-1 at 3). Plaintiff sought

$591,587.85 in damages, plus reasonable attorneys’ fees and costs, as well as prejudgment interest. (Dkt. No. 1 ¶ 26). On March 9, 2018, Defendant filed a “Motion to Compel Arbitration & For Dismissal,” requesting that the Court compel Plaintiff to pursue binding arbitration pursuant to the terms of the Lease Agreement. (Dkt. No. 13). On September 20, 2019, Magistrate Judge Ruth Miller granted Defendant’s Motion over Plaintiff’s opposition (Dkt. No. 26), stayed the action, and ordered the parties to engage in mediation. (Dkt. No. 30 at 17). In the event that mediation was unsuccessful, Magistrate Judge Miller ordered the parties to engage in binding arbitration pursuant to the Federal Arbitration Act (“FAA”). Id. On April 28, 2021, Defendant filed a “Motion to Lift Stay & Incorporated Status Update,” requesting that the stay be lifted so that the parties could proceed with litigation in this Court. (Dkt. No. 41). Plaintiff opposed the Motion, seeking to proceed through arbitration rather than litigation. (Dkt. No. 43). On August 24, 2021, Magistrate Judge Miller denied Defendant’s Motion, directing the parties to proceed with arbitration. (Dkt. No. 54 at 7-8).

On February 23, 2023, the Arbitrator awarded Plaintiff the sum of $87,954.32. (Dkt. No. 62-1 at 9.) Plaintiff then moved for reconsideration and a modification of the Arbitration Award, seeking a greater award. (Dkt. No. 62-2 at 1). On April 21, 2023, the Arbitrator entered an Amended Award denying Plaintiff’s motion for reconsideration and maintaining an award amount of $87,954.32. (See Dkt. No. 62-3 at 1, 9). Following the conclusion of the arbitration process, Plaintiff filed the instant Motion to Confirm on August 4, 2023, seeking confirmation of both the February 23, 2023 Arbitration Award and the April 21, 2023 Amended Award (together, “Arbitration Award”). (Dkt. No. 62). Plaintiff also seeks prejudgment interest and reasonable attorneys’ fees incurred in seeking confirmation of

the Arbitration Award. (Dkt. No. 62 at 1). In support of its request for relief, Plaintiff asserts that Defendant has “failed and refused to pay the amount awarded to Solar Leasing,” specifically, $87,954.32. Id. ¶ 1, 4. Plaintiff further contends that both federal and Virgin Islands law mandate the award of prejudgment interest for a confirmed arbitration award. Id. ¶ 6-8. Finally, Plaintiff argues that, pursuant to Defendant’s Personal Guaranty of the Lease Agreement, Defendant is required to pay all reasonable costs and expenses, including attorneys’ fees, incurred by Plaintiff in seeking to enforce the Arbitration Award. Id. ¶ 14-16. On September 7, 2023, Defendant filed a notice with the Court stating that “the Respondents in the Arbitration arising from this matter have today tendered the Claimant in that matter the sum awarded by the Arbitrator of Eighty-Seven Thousand Nine Hundred Fifty-Four Dollars and Thirty-Two Cents ($87,954.32).” (Dkt. No. 64 at 1). Later on September 7, 2023, Plaintiff filed a “Notice of Partial Payment.” (Dkt. No. 65). In it, Plaintiff asserts that, while Plaintiff’s counsel received a check in the amount of the Arbitration Award, Defendant’s check “does not satisfy [Defendant’s] obligation to Plaintiff/Claimant, as the check does not include any

amount for prejudgment interest at the legal rate in the Virgin Islands, nor does it include any amount for Plaintiff’s [attorneys’] fees incurred in seeking to confirm the arbitration award.” (Dkt. No. 65 at 1). In other words, while Defendant has satisfied his obligation on the underlying Arbitration Award, Plaintiff still seeks an award from this Court for both prejudgment interest at 9% per annum and attorneys’ fees at $450.00 per hour. In this regard, Plaintiff seeks an award of $4,402.46 in prejudgment interest and $2,790.00 in attorneys’ fees for 6.2 hours of attorney time spent in seeking to confirm the Arbitration Award. II. DISCUSSION After addressing the grounds for its jurisdiction—which bears on both the Court’s authority to hear the matter1 as well as the Court’s analysis of the availability of prejudgment interest—the

Court will discuss each of the issues presented—confirmation of the Arbitration Award; applicability of prejudgment interest; and entitlement to attorneys’ fees.

1 Because the FAA “does not create any independent federal-question jurisdiction,” the Court must determine as an initial matter whether it has jurisdiction to confirm the award. Smith v. Denver Food Sys., Inc., 1994 WL 551561, at *4 (E.D. Pa. Oct. 5, 1994) (quoting Moses H. Cone Mem’l Hosp. v. Mercury Const. Corp., 460 U.S. 1, 25 n. 32 (1983)); see also Peebles v. Merrill Lynch, Pierce, Fenner & Smith Inc., 431 F.3d 1320, 1325 (11th Cir. 2005) (“The [FAA] does not confer subject matter jurisdiction . . . nor does it create independent federal question jurisdiction. . . Independent grounds for subject matter jurisdiction must be demonstrated.”) (citations omitted). A. Jurisdiction Plaintiff asserts that this Court has diversity jurisdiction over this matter pursuant to 28 U.S.C. §1332. (Dkt. No. 1 ¶ 3). A district court has diversity jurisdiction over a civil action where “the matter in controversy exceeds the sum or value of $75,000 . . . and is between [] citizens of different states . . . .” 28 U.S.C.

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