Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_11-cv-02165/USCOURTS-casd-3_11-cv-02165-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 12:1819 Default of Promissory Note

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

FEDERAL DEPOSIT INSURANCE

CORPORATION ACTING AS

RECEIVER FOR LA JOLLA BANK, FSB,

Plaintiff,

Case No. 11cv2165 BTM(BGS)

ORDER GRANTING MOTION TO

SUBSTITUTE REAL PARTY IN

INTEREST

v.

CG 80, LLC, a Delaware limited liability

company; MICHAEL MYERS, an

individual,,

Defendants.

Plaintiff Federal Deposit Insurance Corporation (“FDIC”), as Receiver for La Jolla

Bank, FSB, has filed a motion to substitute ADC Venture 2011-2, LLC (“ADC”), real party in

interest, in the place and stead of FDIC. For the reasons discussed below, Plaintiff’s motion

is GRANTED.

On September 16, 2011, FDIC commenced this action. As receiver for La Jolla Bank,

FSB (“LJB”), FDIC sued Defendants for breach of contract, open book account, and account

stated. The claims arise out of a loan in the principal amount of $5,460,000.00 issued by LJB

to Casa Grande 80. According to the Complaint, Defendant CG 80 assumed the loan and

agreed to fully perform all obligations of Casa Grande 80 under the Note, Trust Deed, and

other documents related to the loan. (Compl. ¶10.) Defendant Michael Myers executed a

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Case 3:11-cv-02165-BTM-BGS Document 12 Filed 04/24/12 Page 1 of 2
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commercial guaranty in favor of LJB, whereby Myers absolutely and unconditionally

guaranteed full and punctual payment and satisfaction of any and all amounts owed to LJB

pursuant to the loan, regardless of whether or not LJB first exhausted remedies against CG

80 or any collateral pledged to secure the loan. (Compl. ¶ 11.)

FDIC moves to substitute ADC as the Plaintiff in this action because on December 20,

2011, FDIC entered into a loan sale agreement with ADC, pursuant to which FDIC

transferred to ADC all right, title and interest in and to the loans that are the subject of this

action. Thus, ADC is now the real party in interest.

Under Fed. R. Civ. P. 25(c), if an interest is transferred, the court may, on motion,

order the transferee to be substituted in the action or joined with the original party. Because

all right, title, and interest in and to the loans that are the subject of this lawsuit were

transferred to ADC, it is appropriate to substitute ADC as the Plaintiff. See FDIC v. Saint

Andrews Forum Golf Shop, Ltd., 2011 WL 3204338 (D. Nev. July 27, 2011) (substituting a

limited liability company as plaintiff for causes of action related to loans sold to the limited

liability company by the FDIC, acting as receiver).

Accordingly, FDIC’s motion is GRANTED. ADC Venture 2011-2, LLC is substituted

in as Plaintiff in this action. The docket shall reflect that counsel of record for ADC Venture

2011-2, LLC is:

MICHAEL R. FARRELL (BAR NO. 173831)

JULIE W. RUSS (BAR NO. 198246)

ALLEN MATKINS LECK GAMBLE

MALLORY & NATSIS LLP

515 South Figueroa Street, Ninth Floor

Los Angeles, California 90071-3309

Phone: (213) 622-5555

Fax: (213) 620-8816

E-Mail: mfarrell@allenmatkins.com

jruss@allenmatkins.com

IT IS SO ORDERED.

DATED: April 24, 2012

BARRY TED MOSKOWITZ, Chief Judge

United States District Court

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