FSP Stallion 1, LLC et al

Filing 499

ORDER Denying 447 Motion for Summary Judgment, Denying 449 Motion for Summary Judgment, Denying 452 Motion for Summary Judgment, Denying 453 Motion for Summary Judgment, Granting 478 Motion for Summary Judgment on Plaintiff's Eighth C laim for Breach of Fiduciary Duty as to Evergreen Alliance Golf Limited, L.P. only, and Granting 453 Motion of Defendants Clay Womack, TIC Capital Markets, Inc. and Direct Capital Securities, Inc. for Summary Judgment as to Plaintiffs' First and Second Claims for Federal Securities Fraud. Signed by Judge Philip M. Pro on 8/16/11. (Copies have been distributed pursuant to the NEF - ASB)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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FSP STALLION 1, LLC, et al.,

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v.

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Plaintiffs,

MICHAEL LUCE, et al.,
Defendants.

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AND ALL RELATED CLAIMS

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Case No. 2:08-CV-01155-PMP-PAL
ORDER

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The Court’s Order (Doc. #70) entered May 1, 2009, denying Defendants’ Motion

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to Dismiss Plaintiff’s Complaint (Doc. #47) adequately sets for the background of this

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action. On August 19, 2009, Plaintiffs filed an Amended Complaint (Doc. #320).

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Thereafter, the Parties engaged in extensive discovery. On May 17, 2011, the Court

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approved the stipulation of the Parties Dismissing Certain of the Parties’ Claims and

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Counterclaims (Doc. #444).

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Currently before the Court are Defendant William T. Walters’ and Golf Club of

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Nevada, Inc.’s Motion for Summary Judgment (Docs. #449/455); Defendants Michael E.

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Luce, Joe R. Munsch, Fairway Signature Properties, LLC, Evergreen Alliance Golf

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Limited, L.P., and Stallion Mountain LeaseCo, LLC’s Motion for Summary Judgment

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(Doc. #447); Defendants Clay Womack, TIC Capital Markets, Inc., and Direct Capital

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Securities, Inc.’s Motion for Summary Judgment (Doc. #453); and Defendant Alliance

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Golf Limited, LP, and Stallion Mountain LeaseCo, LLC’s Motion for Summary Judgment

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on Plaintiffs’ Claim for Breach of Fiduciary Duty (Doc. #452).

Having considered the voluminous briefing of the Parties, and the arguments

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presented at the hearing of August 11, 2011, the Court finds that there remain genuine

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issues of material fact and witness credibility issues which warrant denial of the foregoing

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Motions for Summary Judgment as to most of the claims remaining before the Court, and

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now set for trial scheduled to commence December 5, 2011.

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Specifically, the recent decision of the United States Supreme Court in Janus

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Capital Group, Inc. v. First Derivative Traders, 131 Supreme Court 2296 (2011) supports

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summary judgment in favor Defendants Clay Womack, TIC Capital Markets, Inc. and

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Direct Capital Securities, Inc. as to Plaintiffs’ First and Second Claims for Relief for

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Federal Securities Fraud. Additionally, the Court finds Plaintiffs have failed to adduce

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evidence giving rise to a genuine issue of material fact whether Defendant Evergreen

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Alliance Golf Limited, L.P. owed a fiduciary duty to Plaintiffs sufficient to support

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Plaintiffs’ Eighth Claim for Relief. As to all remaining Claims, however, the Court finds

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genuine issues of material fact grounded in part on credibility determinations to be made

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by the trier of fact require denial of the Summary Judgment Motions now before the

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Court.

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IT IS THEREFORE ORDERED that Defendant Evergreen Alliance Golf

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Limited, L.P.’s (“EAGL”) Motion for Summary Judgment on Plaintiffs’ Eighth Claim for

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Breach of Fiduciary Duty (Doc. #478) is GRANTED as to that Defendant only.
IT IS FURTHER ORDERED that the Motion of Defendants Clay Womack, TIC

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Capital Markets, Inc. and Direct Capital Securities, Inc. for Summary Judgment (Doc.

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#453) is GRANTED only as to Plaintiffs’ First and Second Claims for Federal Securities

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Fraud.

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IT IS FURTHER ORDERED that Defendants’ Motions for Summary Judgment

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(Docs. #449/455, #447, #453, and #452) are DENIED in all other respects.

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DATED: August 16, 2011.

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PHILIP M. PRO
United States District Judge