ELI Realty Investments, LLC et al v. Corcoran Group, LLC et al

Filing 170

ORDER MOTION TO DISMISS AND FOR PARTIAL SUMMARY JUDGMENT; JUDGMENT 152 by Judge John W. Holcomb. It is hereby ORDERED, ADJUDGED, and DECREED as follows: The Motion is GRANTED. All claims and counterclaims of any nature that are or that could hav e been raised in this action by JV Franchisees against Corcoran are hereby DISMISSED with prejudice. JUDGMENT is hereby ENTERED in FAVOR of Corcoran Group LLC and AGAINST Exclusive Lifestyles SoCal, LLC on Count Thirty of the Amended Third-Part y Complaint in favor of Corcoran Group, LLC against Exclusive Lifestyles Las Vegas, LLC. $1,298,066 for outstanding Royalty Fees, Brand Marketing Fund contributions, and other amounts due under the applicable franchise agreement as of Octo ber 31, 2022, plus interest on the foregoing amount at the annual rate of 18% from December 2, 2022, through and including thedate of this judgment; $6,310,686 for liquidated damages due under the applicable franchise agreement. JUDGMENT i s hereby ENTERED in FAVOR of Corcoran Group LLC and AGAINST Exclusive Lifestyles San Francisco, Inc. on Count Twenty-Five of the Amended Third-Party Complaint (as defined in the R. 56 Statement) in the amount of: $1,703,699 for outstandi ng Royalty Fees, Brand Marketing Fund contributions, and other amounts due under the applicable franchise agreement as of October 31, 2022, plus interest on the foregoing amount at the annual rate of 18% from December 2, 2022, through and inc luding the date of this judgment. $976,185 for liquidated damages due under the applicable franchise agreement; Judgment is hereby ENTERED in FAVOR of Corcoran Group LLC and AGAINST Exclusive Lifestyles Ohio, LLC on Count Thirty-Five of the Amended Third-Party Complaint in the amount of $383,993 for outstanding Royalty Fees, Brand Marketing Fund contributions, and other amounts due under the applicable franchise agreement as of October 31, 2022, plus interest. $1,631 ,189 for liquidated damages due under the applicable franchise agreement. Judgment is hereby ENTERED in FAVOR of Corcoran Group LLC and AGAINST Exclusive Lifestyles Las Vegas, LLC on Count Forty of the Amended Third-Party Complaint. 447,270 f or outstanding Royalty Fees, Brand Marketing Fund contributions, and other amounts due under the applicable franchise agreement as of October 31, 2022. $1,255,108 for liquidated damages due under the applicable franchise agreement. Jud gment is hereby ENTERED in FAVOR of Corcoran Group LLC and AGAINST Exclusive Lifestyles Tahoe, LLC on Count Forty-Five of the Amended Third-Party Complaint. $3,834,426 for liquidated damages due under the applicable franchise agreement. Ex cept for the claims that are the subject of the judgments reflected above, all other claims and counterclaims raised in this action by Corcoran against the JV Franchisees are hereby DISMISSED without prejudice and without an award of costs. IT IS SO ORDERED. (See document for further details) (MD JS-6, Case Terminated). (yl)

JS-6

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UNITED STATES DISTRICT COURT

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CENTRAL DISTRICT OF CALIFORNIA

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ELI Realty Investments, LLC, a Nevada
limited liability company; Exclusive
Lifestyles SoCal, LLC, a California
limited liability company; Exclusive
Lifestyles San Francisco, Inc., a
California corporation; Exclusive
Lifestyles Ohio, LLC, an Ohio limited
liability company; and Exclusive
Lifestyles Las Vegas, LLC, a Nevada
limited Liability company,

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ORDER GRANTING MOTION TO
DISMISS AND FOR PARTIAL
SUMMARY JUDGMENT; AND
JUDGMENT
Hon. John W. Holcomb

Plaintiff,
v.
Corcoran Group LLC, a Delaware
limited liability company; DOES 1
through 10,
Defendant.
_________________________________
Corcoran Group LLC
Counterclaimant and
Third-Party Plaintiff,

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Case No. 8:22-cv-01195-JWH-ADS

v.
ELI Realty Investments, LLC; Michael
Mahon; Pamela Mahon; MRM
Investments, LLC; AIM High Capital
Partners, LLC; Libertas Funding LLC;
Matek LLC; Exclusive Lifestyles SoCal,
LLC; Exclusive Lifestyles San Francisco,
Inc.; Exclusive Lifestyles Ohio, LLC;
CIVIL ACTION NO. 8:22-CV-01195

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Exclusive Lifestyles Las Vegas, LLC;
Exclusive Lifestyles Tahoe, LLC; and
DOES 1 - 10
Counterclaim and ThirdParty Defendants.

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_________________________________
Libertas Funding LLC; Michael Mahon
Pamela Mahon, and MRM Investments,
LLC,
Third-Party
Counterclaimants,

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v.
Corcoran Group, LLC,
Third-Party
Counterdefendant.

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CIVIL ACTION NO. 8:22-CV-01195

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This matter having been presented to the Court upon the Motion of Corcoran

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Group LLC (“Corcoran”) for, among other things, (i) dismissal of the claims of

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Exclusive Lifestyles SoCal, LLC, Exclusive Lifestyles San Francisco, Inc., Exclusive

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Lifestyles Ohio, LLC, and Exclusive Lifestyles Las Vegas, LLC, against Corcoran

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pursuant to Fed. R. Civ. P. 41(b) and L.R. 41-1; and (ii) partial summary judgment

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against Exclusive Lifestyles SoCal, LLC, Exclusive Lifestyles San Francisco, Inc.,

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Exclusive Lifestyles Ohio, LLC, Exclusive Lifestyles Las Vegas, LLC and Exclusive

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Lifestyles Tahoe, LLC (collectively, the “JV Franchisees”) pursuant to Rule 56 of

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the Federal Rules of Civil Procedure and L.R. 56-1 (the “Motion”); sufficient notice

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of the Motion having been provided; the Court having reviewed Corcoran’s Motion

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and reply papers, if any, and any opposition filed to the Motion; the Court having

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considered the arguments of counsel; for the reasons set forth on the record in this

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action on May 31, 2024; and for good cause shown;

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It is hereby ORDERED, ADJUDGED, and DECREED as follows:

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1.

The Motion is GRANTED.

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2.

All claims and counterclaims of any nature that are or that could have

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been raised in this action by JV Franchisees against Corcoran are hereby

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DISMISSED with prejudice, including but not limited to all claims raised by or

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on behalf of JV Franchisees in counts Twenty-Four, Twenty-Five, Twenty-Seven,

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Twenty-Nine, Thirty, Thirty-Two, Thirty-Four, Thirty-Five, Thirty-Seven, Thirty-

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Nine, Forty, Forty-Two, Forty-Four, and Forty-Five of the Complaint.

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3.

JUDGMENT is hereby ENTERED in FAVOR of Corcoran Group

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LLC and AGAINST Exclusive Lifestyles SoCal, LLC on Count Thirty of the

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Amended Third-Party Complaint (as defined in the R. 56 Statement) in the amount of:

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(a)

$1,298,066 for outstanding Royalty Fees, Brand Marketing

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Fund contributions, and other amounts due under the applicable franchise

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agreement as of October 31, 2022, plus interest on the foregoing amount at

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CIVIL ACTION NO. 8:22-CV-01195

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the annual rate of 18% from December 2, 2022, through and including the

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date of this judgment;
(b)

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franchise agreement;

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(c)

attorney fees, if any, awarded by subsequent order of this Court;

(d)

lawful interest from the date hereof.

and

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$6,310,686 for liquidated damages due under the applicable

4.

JUDGMENT is hereby ENTERED in FAVOR of Corcoran Group

LLC and AGAINST Exclusive Lifestyles San Francisco, Inc. on Count Twenty-Five

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of the Amended Third-Party Complaint (as defined in the R. 56 Statement) in the

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amount of:
(a)

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$1,703,699 for outstanding Royalty Fees, Brand Marketing

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Fund contributions, and other amounts due under the applicable franchise

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agreement as of October 31, 2022, plus interest on the foregoing amount at

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the annual rate of 18% from December 2, 2022, through and including the

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date of this judgment;
(b)

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franchise agreement;

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(c)

attorney fees, if any, awarded by subsequent order of this Court;

(d)

lawful interest from the date hereof.

and

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$976,185 for liquidated damages due under the applicable

5.

Judgment is hereby ENTERED in FAVOR of Corcoran Group LLC

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and AGAINST Exclusive Lifestyles Ohio, LLC on Count Thirty-Five of the

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Amended Third-Party Complaint (as defined in the R. 56 Statement) in the amount of:

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(a)

$383,993 for outstanding Royalty Fees, Brand Marketing Fund

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contributions, and other amounts due under the applicable franchise

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agreement as of October 31, 2022, plus interest on the foregoing amount at

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CIVIL ACTION NO. 8:22-CV-01195

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the annual rate of 18% from December 2, 2022, through and including the

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date of this judgment;
(b)

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franchise agreement;

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(c)

attorney fees, if any, awarded by subsequent order of this Court;

(d)

lawful interest from the date hereof.

and

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$1,631,189 for liquidated damages due under the applicable

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Judgment is hereby ENTERED in FAVOR of Corcoran Group LLC

and AGAINST Exclusive Lifestyles Las Vegas, LLC on Count Forty of the
Amended Third-Party Complaint (as defined in the R. 56 Statement) in the amount of:
(a)

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$447,270 for outstanding Royalty Fees, Brand Marketing Fund

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contributions, and other amounts due under the applicable franchise

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agreement as of October 31, 2022, plus interest on the foregoing amount at

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the annual rate of 18% from December 2, 2022, through and including the

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date of this judgment;
(b)

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franchise agreement;

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(c)

attorney fees, if any, awarded by subsequent order of this Court;

(d)

lawful interest from the date hereof.

and

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$1,255,108 for liquidated damages due under the applicable

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Judgment is hereby ENTERED in FAVOR of Corcoran Group LLC

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and AGAINST Exclusive Lifestyles Tahoe, LLC on Count Forty-Five of the

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Amended Third-Party Complaint (as defined in the R. 56 Statement) in the amount of:
(a)

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franchise agreement;

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$3,834,426 for liquidated damages due under the applicable

(b)

attorney fees, if any, awarded by subsequent order of this Court;

(c)

lawful interest from the date hereof.

and

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CIVIL ACTION NO. 8:22-CV-01195

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8.

On or before June 20, 2024, each of the JV Franchisees shall provide

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Corcoran, in care of its counsel in this action, with separate written accountings

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including the following:
(a)

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a complete inventory of all listings and pending transactions of

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the Joint Venture Franchisee as of November 21, 2022 (each a “Listing and

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Pending Report”); and
(b)

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the identity, location, and/or disposition of the items listed in the

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Listing and Pending Report, as well as any other Corcoran-Exclusive San

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Francisco Collateral, Corcoran-Exclusive SoCal Collateral, Corcoran-

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Exclusive Las Vegas Collateral, Corcoran-Exclusive Tahoe Collateral, and

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Corcoran-Exclusive Ohio Collateral (all as defined in the Motion), as of and

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subsequent to November 21, 2022.

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9.

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Corcoran may file a motion and accompanying evidence supporting its

request for reasonable attorneys’ fees and costs on or before July 5, 2024.
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Except for the claims that are the subject of the judgments reflected

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above, all other claims and counterclaims raised in this action by Corcoran against

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the JV Franchisees are hereby DISMISSED without prejudice and without an

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award of costs.

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IT IS SO ORDERED.

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Dated:

June 4, 2024

HONORABLE JOHN W. HOLCOMB
UNITED STATES DISTRICT JUDGE

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CIVIL ACTION NO. 8:22-CV-01195