2010 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 6-30-2010 

# S cott T a y lor v . M eecorp C ap M ark

et s LL C P r e c e de n t i al or N on-P r e c e de n t i al : N on-P r e c e de n t i al D ocke t N o . 09-3848

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Thi s de c i sion i s br ou gh t t o you for f r e e a nd ope n a c c e s s b y the O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit at V i l l a no va U nive r sity S choo l of L a

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. It h as be e n a c c e pt e d for inclusion in 2010 D e c i sion s b y a n author i z e d a dmini s tr at or of V i l l a no va U nive r sity S choo l of L a

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w . vi l l a no va . e du . Re c omme nde d C it at ion " S c ott T a y lor v . M e e c orp C ap M a rke ts LL C " (2010). 2010 D e cisio n s . P ape r 1087. http://d i git alc ommon s .l a

w . vi l l a no va . e du/thir dc ir c uit_2010/1087NOT P RE CE DE NT I AL UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT

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___________ S COTT TAYLOR; NEP TUNE DE VEL OPMENT I I , LL C, v . M EE CORP CAP I TAL M ARKETS , LL C; M I CH A EL E D RE I ; D A N I EL E D RE I ; A N D D A V I D RO G ER S; v . P AT RI CK S HE RWOOD S COTT TAYLOR, A ppel l ant

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fort he D i s t r i ctof N ew J er s ey ( D . C . C i vi l A ct i on N o. 07- 05954) D i s t r i ctJ udge: H onor abl e Sus an D . W i gent on

____________________________________ Subm i t t ed Pur s uantt o T hi r d C i r cui tL A R 34. 1( a)

M ay21, 2010 B efor e: M C K E E , C hi ef J udge, FU E N T E S and V A N A N T W E R PE N , C i r cui tJ udges ( O pi ni on fi l ed: J une 30, 2010)2 ___________ OP I NI ON

___________ P E R C UR I AM Scot tT ay l or , pr ocee di ng pr o s e, appea l s fr om an or derof t he U ni t ed St at es D i s t r i ct C our tfort he D i s t r i ctof N ew J er s eygr ant i ng s um m aryj udgm entforM eec orp C api t al M ar ket s , L L C ( “M eec orp”) and di s m i s s i ng t hi s di ver s i t yact i on forbr eac h of contr actand o th e r c la im s u n d e r N e w J e rs e yla w , f ile d b yN e p tu n e D e v e lo p m e n t I I a n d S c o tt T a y lo r. W e wi l l a f

f i r m. Scot tT ay l or , t he appe l l ant , and Patr i ck Sherw ood ar e r eal es t at e deve l oper s and in v e sto rs w h o a re m e m b e rs o f N e p tu n e D e v e lo p m e n t II, L L C , a c o m m e rc ial re a l es tate d e v e lo p m e n t co m p a n y . M e e c o rp is a c o m m e rc ial m o rtg a g e len d in g b u sin e ss . In e a rly 20 07 , N eptune ex ecuted a l oan com m i t m ent agr eem ent w i t h M eecorp fo r the p urchase and deve l opm entof a c ondom i ni um compl ex i n Panama C i t y , Fl or i da. T ay l orand Sher w ood s i gned t he agr eementas guar ant or s . T he l oan comm i t m entagr eement obl i gat ed N eptune t o payM eec orp a non- r efunda bl e fe e of $930, 000, a thi r d of w hi ch ( $310, 000) w as due att he exe cut i on of t he l oan comm i t m entagr eement . T he r emai ni ng $620, 000 w as due atcl os i ng. A ccor di ng t o t he agr eement , N eptune pr om i s ed t o pr ovi de M eec orp w i t h cert ai n col l at er al . A l t hough N eptune made a t i m el ypaym entof $310, 000, i tdi d notpr ovi de M eec orp w i t h t he pr om i s ed col l at er al and di d notpayt he r emai ni ng3

bal ance . T he l oan di d notcl os e. In D ec em b er 2 0 0 7 , T ay lor an d N ep tun e f il ed a c o m p lai n t aga inst M ee co rp al l egi ng, among ot hert hi ngs , br eac h of contr act , fr aud, unj us tenr i chment , and vi ol at i on of t he N ew J er s eyC ons um erFr aud A ct . A m ong ot hert hi ngs , N eptune and Tay l or c laim e d th a t M e e c o rp b re a c h e d th e a g re e m e n t b yf a ili n g to p ro v id e a d d iti o n a l p a rticip a n ts t o t he tr ans act i on byt he t i m e of c l os i ng. M eec orp fi l ed a thi r d par t ycompl ai ntand count er cl ai m agai ns tN eptune, T ay l or , and Sherw ood, s eeki ng i t s l oan comm i t m entfee of $620, 000 and var i ous r ei m bur s ement expens es , and al l egi ng t hati tw as N eptune w ho br eac hed the agr eementbyfai l i ng t o pr ovi de the pr om i s ed col l at er al . M eec orp al s o fi l ed a mot i on fors um m aryj udgm ents eeki ng t o di s m i s s al l of N eptune, T ay l orand Sher w ood’ s cl ai m s and af fi r m at i ve def

ens es as t hi r d par t ydefe ndant s . N eptune, j oi ned byT ay l orand Sher w ood, fi l ed a mot i on fors um m aryj udgm ents eeki ng di s m i s s al of M eecorp’s affi rm at i ve clai m s. O n M ay8, 2009, t he D i s t r i ctC our tdi s m i s s ed N eptune’ s aff i r m at i ve cl ai m s and s tr u c k its a n s w e r t o M e e c o rp ’s c o u n te rc la im b e c a u s e N e p tu n e f a ile d to o b ta in c o u n s e l. O n A ugus t24, 2009, t he D i s t r i ctC our tgr ant ed M eec orp’ s s um m aryj udgm entm ot i on and deni ed the s um m aryj udgm entm ot i on fi l ed byN eptune, T ay l orand Sherw ood. T ay l or al one appe al ed. O n O ct ober7, 2009, t he D i s t r i ctC our tent er ed a de faul tj udgm enti n t he s um of $620, 000 pl us i nt er es ti n M eec orp’ s favorand aga i ns tN eptune. Fi nal j udgm ent w as ent er ed on M ar ch 3, 2010.A tt he t i m e Tay l orfi l ed hi s not i ce of appea l , t he D i s t r i ctC our thad notdi s pos ed 1 of al l cl ai m s as t o al l par t i es . O n O ct ober17, 2009, how ever , t he D i s t r i ctC our tent er ed a defa ul tj udgm entagai ns tN eptune di s m i s s i ng i t s out s t andi ng aff i r m at i ve cl ai m s and gr ant i ng M eec orp’ s count er cl ai m s agai ns tN eptune. A l l cl ai m s agai ns tal l par t i es have now been r es ol ved and the mat t eri s now pr oper l ybefor e thi s C our tpur s uantt o C ape M ay G ree n e, Inc . v . W arren , 6 9 8 F . 2 d 1 7 9 , 1 8 5 (3d C ir . 1 9 8 3 ). 4 W e have j ur i s di ct i on t o r evi ew t he D i s t r i ctC our t ’ s s um m aryj udgm entor der pur s uantt o 28 U . S. C . § 1291. W e exe r ci s e pl enaryr evi ew overa D i s t r i ctC our t ’ s gr ant 1 o f su m m aryjud g m en t pu rsua n t t o F ed . R . C iv. P. 56 (c), an d w e a p p lythe s am e stan d ard t hatt he D i s t r i ctC our ts houl d have a ppl i ed. See R egent s of M er cer s bur g C ol l . v. R e p u b lic F ra n k lin In s. C o ., 4 5 8 F .3 d 1 5 9 , 1 6 3 (3 d C ir. 2 0 0 6 ). S u m m a ryju d g m e n t is p ro p e r w h e n , v iew in g th e e v id e n c e in th e lig h t m o st f a v o ra b le to th e n o n -m o v a n t, th e re is no genui ne i s s ue of mat er i al fac tand the movi ng par t yi s ent i t l ed t o j udgm entas a mat t er of l a w . Se e Sa l da na v. K mar tCorp. , 26 0 F. 3d 22 8, 23 2 ( 3d Ci r . 20 01 ) ; Fe d. R. Ci v. P. 5 6 (c). A ft ert hor ough r evi ew of Tay l or ’ s ar gum ent s on appea l , w e conc l ude thatt he D i s t r i ctC our tpr oper l ygr ant ed s um m aryj udgm entforM eec orp. W e agr ee w i t h t he D i s t r i ctC our t ’ s concl us i on and r eas oni ng t hat , as an off i cerand mem berof N eptune and as a guar ant orof t he l oan comm i t m entagr eementbetw een N eptune and M eec orp, T ay l or lac k e d sta n d in g u n d e r N e w Je rse ylaw to su e in d iv id u a llyf o r w ro n g s a lleg e d lyd o n e to his com pan y . S ee P epe v . G en. M otor s A cceptance C orp. , 60 4 A . 2d 19 4, 19 6 (N . J. Super . C t . A pp. D i v. 1992) ( hol di ng t hat , underN ew J er s eyl aw , s har ehol der s cannots ue5

ind ividu all yfo r w ron g s all eg ed lyd o n e to th eir co rpo rati o n s); C en t. Jerse yF reigh tl iner, I nc. v. Fr ei ght l i nerC orp. , 987 F. Supp. 289, 301 ( D . N . J . 1997) ( hol di ng t hata s har ehol der lack s stan d ing to rec o v er d am ag es su ff ere d b yh is co rpo rati o n ). A s f o r T a y lo r’ s b re a c h o f

c o n tra c t cla im , the D istric t C o u rt p ro p e rlyh e ld th a t, ac co rdin g to the clea r an d u n am b igu o u s loa n co m m itm en t agre em en t’ s term s, M ee co rp earned the non- r efunda bl e l oan comm i t m entfee w hen the agr eementw as exec ut ed and t h a tt h e b a l a n c e o f

t h e n o n - r e f

u n d a b l e f

e e ( $ 6 2 0 , 0 0 0 ) w a s d u e o n t h e c l o s i n g d a t e . We agr ee w i t h t he D i s t r i ctC our tt hat , undert he l oan comm i t m entagr eement , M eec orp w as ent i t l ed t o t he r emai nderof t he l oan comm i t m entfee fr om N eptune. A c c o rd in g ly , w e w ill a f f irm th e ju d g m e n t o f

th e D istric t C o u rt.