Troy Capital, LLC v. Patenaude & Felix APC

District Court, D. Nevada·Decided January 18, 2023·No. 2:20-cv-00205·Unknown

Opinion

* * *

TROY CAPITAL LLC, Case No. 2:20-CV-205 JCM (DJA)

Plaintiff(s), ORDER

v.

PATENAUDE & FELIX APC, et al.,

Defendant(s).

Presently before the court is plaintiff Troy Capital, LLC (“plaintiff”)’s motion for reconsideration (ECF No. 153) of this court’s order granting defendant’s motion for partial summary judgment (ECF No. 149). Defendants Patenaude & Felix APC (“P&F”), Raymond A. Patenaude, Michael Kahn, and Angie Hong Hoar (collectively, “defendants”) filed a response (ECF No. 160), to which plaintiff replied (ECF No. 163). Also before the court is defendants’ motion for summary judgment. (ECF No. 127). Plaintiff filed a response (ECF No. 139), to which defendants replied (ECF No. 143). I. Background The instant action arises from debt collection services performed by P&F for plaintiff. Plaintiff retained P&F, a law firm, to collect on judgments in California and Arizona, entering into an attorney agreement on July 14, 2016. Under the agreement, P&F agreed to take all necessary steps to keep the pre-judgment debts and obligations from expiring, to file suit and secure judgment on all viable pre-judgment debts, and to collect on and renew all judgments. (ECF No. 139-1). Moreover, the agreement included a liquidated damages provision, providing that if P&F failed to renew a judgment, plaintiff may, at its “discretion, require [P&F] to remit to [plaintiff] the entire balance due, or some portion thereof, of such judgment as of the date of the affected judgment expiration.” (Id.) Allegedly, defendants allowed 195 of these judgments to expire. (ECF No. 139 at 9). Defendants claim that the expired judgments are older, “flipped” judgments that plaintiff had struggled to collect on for years and were nearly worthless. (ECF No. 127 at 2). Plaintiff claims that, regardless, it is owed the full face value of those expired judgments because of the liquidated damages provisions. Additionally, it has produced to defendant a proprietary “loss projection” alleging that it will miss out on at least $852,459.58 of lost revenue because of those judgments expiring, but it has not provided any other evidence to the court or defendants as to a specific amount of damages. See (ECF No. 139 at 14). On December 19, 2020, plaintiff filed its underlying complaint in state court alleging a variety of legal malpractice claims against P&F and the individual attorneys that handled the judgments. (ECF No. 1). Defendants removed to this court on January 30, 2020. (Id.) After several years of litigation, this court granted defendants partial summary judgment and held that the liquidated damages provision of the attorney agreement was an unenforceable penalty. (ECF No. 149). Plaintiff now moves to reconsider that decision. (ECF No. 153). Defendants also separately move for summary judgment on all remaining claims against them, principally on the theory that plaintiff has never presented evidence that the expired judgments in question were collectable in the first place. (ECF No. 127). II. Legal Standard a. Motion for Reconsideration Rule 59(e) “permits a district court to reconsider and amend a previous order[;]” however, “the rule offers an extraordinary remedy, to be used sparingly in the interests of finality and conservation of judicial resources.” Carroll v. Nakatani, 342 F.3d 934, 945 (9th Cir. 2003) (internal quotations omitted). A motion for reconsideration “should not be granted, absent highly unusual circumstances.” Kona Enters., Inc. v. Estate of Bishop, 229 F.3d 877, 890 (9th Cir. 2000). On one hand, a motion for reconsideration “may not be used to raise arguments or present evidence for the first time when they could reasonably have been raised earlier in the litigation.” Kona Enters., Inc., 229 F.3d at 890. On the other hand, “[a] movant must not repeat arguments already presented unless (and only to the extent) necessary to explain controlling, intervening law or to argue new facts. A movant who repeats arguments will be subject to appropriate sanctions.” LR 59-1(b). Thus, the Ninth Circuit has provided that “[r]econsideration is appropriate if the district court (1) is presented with newly discovered evidence, (2) committed clear error or the initial decision was manifestly unjust, or (3) if there is an intervening change in controlling law.” School Dist. No. 1J v. ACandS, Inc., 5 F.3d 1255, 1263 (9th Cir. 1993); Fed. R. Civ. P. 60(b). “A motion to alter or amend a judgment must be filed no later than 28 days after the entry of the judgment.” Fed. R. Civ. P. 59(e). b. Motion for Summary Judgment The Federal Rules of Civil Procedure allow summary judgment when the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A principal purpose of summary judgment is “to isolate and dispose of factually unsupported claims . . . .” Celotex Corp. v. Catrett, 477 U.S. 317, 323– 24 (1986). For purposes of summary judgment, disputed factual issues should be construed in favor of the non-moving party. Lujan v. Nat’l Wildlife Fed., 497 U.S. 871, 888 (1990). However, to be entitled to a denial of summary judgment, the non-moving party must “set forth specific facts showing that there is a genuine issue for trial.” Id. In determining summary judgment, the court applies a burden-shifting analysis. “When the party moving for summary judgment would bear the burden of proof at trial, it must come forward with evidence which would entitle it to a directed verdict if the evidence went uncontroverted at trial.” C.A.R. Transp. Brokerage Co. v. Darden Rests., Inc., 213 F.3d 474, 480 (9th Cir. 2000). Moreover, “[i]n such a case, the moving party has the initial burden of establishing the absence of a genuine issue of fact on each issue material to its case.” Id. By contrast, when the non-moving party bears the burden of proving the claim or defense, the moving party can meet its burden in two ways: (1) by presenting evidence to negate an essential element of the non-moving party’s case; or (2) by demonstrating that the non-moving party failed to make a showing sufficient to establish an element essential to that party’s case on which that party will bear the burden of proof at trial. See Celotex Corp., 477 U.S. at 323–24. If the moving party fails to meet its initial burden, summary judgment must be denied and the court need not consider the non-moving party’s evidence. See Adickes v. S.H. Kress & Co., 398 U.S. 144, 159– 60 (1970). If the moving party satisfies its initial burden, the burden then shifts to the opposing party to establish that a genuine issue of material fact exists. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). To establish the existence of a factual dispute, the opposing party need not establish a material issue of fact conclusively in its favor. It is sufficient that “the claimed factual dispute be shown to require a jury or jud

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Troy Capital, LLC v. Patenaude & Felix APC, (D. Nev. 2023).

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