ZAMIAS et al v. FIFTH THIRD BANK
MEMORANDUM OPINION AND ORDER granting in part and denying in part 4 Motion to Dismiss; denying 7 Motion to Remand. Fifth Third's Motion to Dismiss (ECF No. 4 ) is GRANTED IN PART and DENIED IN PART as follows: Fifth Third' s Motion to Dismiss is GRANTED with respect to the following claims asserted by the Zamias Guarantors, which are DISMISSED WITH PREJUDICE: i. Fraud (Count 1); ii. Fraudulent inducement (Count 5); iii. Tortious interference with contractual relations (Count 2), with respect to the first two allegations which are, as a matter of law, barred by the two-year statute of limitations; iv. Equitable accounting (Count 4); and v. Predatory Lending (Count 6). b. Fifth Third's Motion to Dismiss is also GRANTED with respect to the Zamias Guarantors' claim for breach of the covenant of good faith and fair dealing (Count 3) and their claim for legal accounting (Count 4). As explained above, these claims are DISMISSED WITH LEAVE TO AMEND. c. Fifth Third& #039; s Motion to Dismiss is DENIED with respect to the Zamias Guarantors' third allegation of tortious interference with contractual relations (Count 2), and as more fully stated in said Memorandum Opinion and Order. Signed by Judge Kim R. Gibson on 1/9/2018. (dlg)
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF PENNSYLVANIA
DAMIAN ZAMIAS, individually and as coexecutor of the Estate of Marianna Zamias,
STEPHEN ZAMIAS, individually and as coexecutor of the Estate of Marianna Zamias,
DECEASED, Kathleen Zamias, Executor,
Case No. 3:17-cv-153
JUDGE KIM R. GIBSON
FIFTH THIRD BANK,
Pending before the Court are two motions: (1) a Motion to Remand filed by Plaintiffs (the
"Zamias Guarantors") (ECF No. 7) and (2) a Motion to Dismiss filed by Defendant Fifth Third
Bank ("Fifth Third"). (ECF No. 4.) The Motions are fully briefed (see ECF Nos. 4, 7, 15, and 25)
and are ripe for disposition.
For the reasons that follow, the Court will DENY the Zamias Guarantors' Motion to
Remand. (ECF No. 7.) The Court will GRANT IN PART and DENY IN PART Fifth Third's
Motion to Dismiss. (ECF No. 4.)
This Court has subject matter jurisdiction because the parties are diverse and the amount
in controversy exceeds $75,000. 28 U.S.C. § 1332. Venue is proper because a substantial part of the
events giving rise to the dispute occurred in the Western District of Pennsylvania. 28 U.S.C. §
This dispute arises from real estate loans made on the eve of the Financial Crisis of 20072008 to facilitate the construction of shopping malls in Eastern Pennsylvania. (See generally ECF
No. 1-2 at enen 8-18.)
In 2007, Fifth Third executed a $20,000,000.00 construction loan with Taylor Associates
(the "Taylor Loan") to finance the construction of a mall in Taylor Borough, Lackawanna County.
(Id. at enen 9, 12, 13.) George Zamias, Marianna Zamias, Damian Zamias, Samuel Zamias, and
Stephen Zamias (the "Zamias Guarantors"), and Louis Nicozisis, Helen Nicozisis, and John
Politis (the "Non-Zamias Guarantors") executed a Continuing Guaranty and Suretyship
Agreement for the full amount of the Taylor Loan. (Id. at en 14.)
In 2008, Fifth Third executed an $11,400,000.00 construction loan with Pittston Associates
(the "Pittston Loan") to finance the construction of a mall in Pittston Township, Luzerne County.
(Id. at enen 10, 16.) The Zamias Guarantors and the Non-Zamias Guarantors executed a Continuing
Guaranty and Suretyship Agreement for the full amount of the Pittston Loan. (Id. at en 17.)
Fifth Third extended these loans despite knowing that they were not adequately
collateralized. (Id. at
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