WILLIAM H. STEELE, Chief District Judge.
This matter is before the Court on the plaintiff's motion for partial summary judgment as to Count Two against defendants Joseph Eugene Raley ("Eugene") and Joseph Bradley Raley ("Bradley"). (Doc. 55).
Defendant The Rookery, LLC ("Rookery") executed a note ("the Note") in favor of the plaintiff in the original principal sum of $168,750.00. Rookery has defaulted on the Note by failing to make payments when due. Rookery is in breach of the Note.
Eugene and Bradley entered separate continuing guaranties of the indebtedness under the Note ("the Guaranties"), which they have not satisfied despite demand, leaving them in default. Eugene and Bradley are in breach of their respective Guaranties.
The plaintiff has performed its obligations under the Note and Guaranties.
The amount owing under the Note and Guaranties as of December 12, 2011 is $77,673.93. Interest continues to accrue at a per diem rate of $34.43.
The Note and Guaranties require the borrower and guarantors to pay the plaintiff's reasonable attorney's fees and costs in collecting the indebtedness. The plaintiff has incurred such fees and costs, but the amount thereof has not been established.
Summary judgment should be granted only if "there is no genuine dispute as to any material fact and the moving party is entitled to a judgment as a matter of law." Fed. R. Civ. P. 56(a). The party seeking summary judgment bears "the initial burden to show the district court, by reference to materials on file, that there are no genuine issues of material fact that should be decided at trial." Clark v. Coats & Clark, Inc., 929 F.2d 604, 608 (11
"When the moving party has the burden of proof at trial, that party must show affirmatively the absence of a genuine issue of material fact: it must support its motion with credible evidence . . . that would entitle it to a directed verdict if not controverted at trial. [citation omitted] In other words, the moving party must show that, on all the essential elements of its case on which it bears the burden of proof, no reasonable jury could find for the nonmoving party." United States v. Four Parcels of Real Property, 941 F.2d 1428, 1438 (11
In deciding a motion for summary judgment, "[t]he evidence, and all reasonable inferences, must be viewed in the light most favorable to the nonmovant. . . ." McCormick v. City of Fort Lauderdale, 333 F.3d 1234, 1243 (11
"There is no burden upon the district court to distill every potential argument that could be made based upon the materials before it on summary judgment." Resolution Trust Corp. v. Dunmar Corp., 43 F.3d 587, 599 (11
Because Federal Rule of Civil Procedure 56(a) specifies that summary judgment may be entered only when the record evidence shows that there is no genuine issue of material fact and that the movant is entitled to judgment as a matter of law, "the district court cannot base the entry of summary judgment on the mere fact that the motion was unopposed but, rather, must consider the merits of the motion." United States v. One Piece of Real Property, 363 F.3d 1099, 1101 (11
Count Two alleges breach of guaranty against Eugene, Bradley and others. (Doc. 10 at 4). "Every suit on a guaranty agreement requires proof of the existence of the guaranty contract, default on the underlying contract by the debtor, and nonpayment of the amount due from the guarantor under the terms of the guaranty." Delro Industries, Inc. v. Evans, 514 So.2d 976, 979 (Ala. 1987). The uncontroverted evidence shows the existence of two Guaranties by Eugene and Bradley; Rookery's default on the underlying contract; and non-payment by Eugene and Bradley. The uncontroverted evidence thus establishes all elements of the plaintiff's claims against Eugene and Bradley, who offer no defense. The plaintiff is entitled to summary judgment as to these claims.
The Note and Guaranties require the payment of the plaintiff's costs, including reasonable attorney's fees. The plaintiff's evidence confirms that such fees and costs have been incurred, (Doc. 55, Wagner Affidavit, ¶ 9), but the plaintiff has not established their amount. Instead, the plaintiff requests the Court to enter final judgment in its favor under Rule 54(b), reserving jurisdiction to determine later an appropriate amount of attorney's fees and costs. (Doc. 55 at 3).
Rule 54(d) allows a claim for attorney's fees and related nontaxable expenses to be made by post-judgment motion "unless the substantive law requires those fees to be proved at trial as an element of damages." Fed. R. Civ. P. 54(d)(2)(A). "As noted in subparagraph (A), [Rule 54(d)(2)] does not . . . apply to fees recoverable as an element of damages, as when sought under the terms of a contract. . . ." Id. 1993 advisory committee notes; see also Brandon, Jones, Sandall, Zeide, Kohn, Chalal & Musso, P.A. v. MedPartners, Inc., 312 F.3d 1349, 1355 (11
The plaintiff cannot skirt this rule by resort to Rule 54(b). As a threshold matter, that rule allows for entry of a partial final judgment only as to particular "claims or parties," not as to mere portions of a claim. Nor does the Court find "that there is no just reason for delay" in entering final judgment without a determination of costs and fees to be awarded. On the contrary, given Rule 54(d) there is every reason to delay entry of judgment pending such a determination. Accordingly, the Court will not enter any judgment against Eugene or Bradley before the amount of attorney's fees and related costs to be awarded is decided.
For the reasons set forth above, the plaintiff's motion for partial summary judgment is
DONE and ORDERED.
Given that the plaintiff is on the cusp of a personal judgment against Eugene and Bradley and already has obtained such judgments against Rookery and all other remaining guarantors, it is not clear how an accounting would benefit the plaintiff. According to the amended complaint, the only contractually-authorized function of an accounting would be to determine whether Rookery improperly made payments to the guarantors of funds that should have been paid the plaintiff; with personal judgments in hand, the plaintiff will be entitled to recover all or any part of the judgment amount from any guarantor, regardless of whether that guarantor improperly received payments from Rookery.