Peoples Bank v. P/C Ambassador of the Lake et al
Filing
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ORDER granting plaintiff's 96 Motion for Summary Judgment in rem and judgment foreclosing its preferred marine mortgage signed by Judge James L. Robart.(RS)
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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
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PEOPLES BANK, et al.,
CASE NO. C16-1403JLR
Plaintiffs,
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ORDER
v.
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P/C AMBASSADOR OF THE
LAKE, et al.,
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Defendants.
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I.
INTRODUCTION
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Before the court is Plaintiff Peoples Bank’s motion for summary judgment in rem
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and judgment foreclosing its preferred marine mortgage. (Mot. (Dkt. # 96); see also
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Reply (Dkt. # 104) (narrowing the requested relief due to factual developments
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subsequent to filing the motion).) Defendant Salvatore Ragusa, the former owner of in
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rem Defendant P/C Ambassador of the Lake, opposes in part Peoples Bank’s motion
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(Resp. (Dkt. # 100)), and Plaintiff-in-Intervention Seattle Mobile Marine, LLC (“SMM”)
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ORDER - 1
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does not oppose the motion (Not. of Non-Opp. (Dkt. # 103)). The court has considered
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the motion and related filings, the relevant portions of the record, and the applicable law.
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Considering itself fully advised,1 the court GRANTS Peoples Bank’s motion as narrowed
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in its reply brief, and FORECLOSES the preferred marine mortgage on the Ambassador
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of the Lake.
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II.
BACKGROUND
This case arises out of several debts Mr. Ragusa owes, at least one of which is
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secured by the Ambassador of the Lake. (See Peoples Bank Compl. (Dkt. # 1); Loosmore
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Decl. (Dkt. # 98) ¶ 2, Ex. 1 (“RFAs”) at 4; Resp. at 2.) Mr. Ragusa has two loans with
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Peoples Bank: Loan Number 5045130-601 (“the 601 Loan”) and Loan Number
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5045130-602 (“the 602 Loan”). (2d Olson Decl. (Dkt. # 105) ¶ 4.) As of July 25, 2017,
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Mr. Ragusa owed Peoples Bank $130,549.79 on the 601 Loan. (Id.) As of June 28,
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2017, Mr. Ragusa owed $25,205.25 on the 602 Loan. (1st Olson Decl. (Dkt. # 97) ¶ 2.)
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Mr. Ragusa admits that the Ambassador of the Lake secures the 601 Loan and that he
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defaulted on that loan in August 2016. (RFAs at 4; Resp. at 2.) However, Mr. Ragusa
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contends that the 602 Loan is unsecured. (RFAs at 6; Resp. at 2-4.)
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On May 24, 2017, Peoples Bank purchased the Ambassador of the Lake at a
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court-ordered interlocutory sale. (Ret. of Svc. re: Marshal’s Sale (Dkt. # 94) at 1; see
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also 4/20/17 Order (Dkt. # 89) (ordering the interlocutory sale of the Ambassador of the
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Lake).) Peoples Bank then finalized a sale of the Ambassador of the Lake to a third-party
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No party requests oral argument, and the court concludes oral argument would not aid
its disposition of the motion. See Local Rules W.D. Wash. LCR 7(b)(4).
ORDER - 2
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purchaser. (2d Olson Decl. ¶ 2.) After deducting conservatively estimated costs of
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associated repairs and storage, Peoples Bank expects to realize $123,363.35 from the
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sale. (Id. ¶ 3.) Peoples Bank now asks the court to enter summary judgment dismissing
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Mr. Ragusa’s affirmative defenses and foreclosing its marine mortgage on the
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Ambassador of the Lake. (Mot. at 4-10.)
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III.
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ANALYSIS
Peoples Bank initially moved for summary judgment in rem and foreclosure on the
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basis of the 601 Loan and the 602 Loan. (Mot. at 4-5, 9-10.) However, when Peoples
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Bank sold the Ambassador of the Lake for a net sum of less than the outstanding balance
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on the 601 Loan, Peoples Bank agreed that “the court does not need to decide whether the
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602 [L]oan . . . is secured or unsecured” in order to award the relief it seeks. (Reply at 2.)
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Peoples Bank also seeks summary judgment on the affirmative defenses of failure to
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serve, harassment, unclean hands, and various additional, unspecified affirmative
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defenses. (Mot. at 7-8.)
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A.
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Legal Standard
Summary judgment is appropriate if the evidence, when viewed in the light most
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favorable to the non-moving party, demonstrates “that there is no genuine dispute as to
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any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ.
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P. 56(a); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986); Galen v. Cty. of
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L.A., 477 F.3d 652, 658 (9th Cir. 2007). The moving party bears the initial burden of
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showing that there is no genuine issue of material fact and that he or she is entitled to
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prevail as a matter of law. Celotex, 477 U.S. at 323. If the moving party meets his or her
ORDER - 3
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burden, then the non-moving party “must make a showing sufficient to establish a
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genuine dispute of material fact regarding the existence of the essential elements of his
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case that he must prove at trial” in order to withstand summary judgment. Galen, 477
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F.3d at 658. The non-moving party may make this showing by use of affidavits,
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depositions, answers to interrogatories, or requests for admissions. Anderson v. Liberty
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Lobby, Inc., 477 U.S. 242, 248 (1986). The court is “required to view the facts and draw
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reasonable inferences in the light most favorable to the [non-moving] party.” Scott v.
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Harris, 550 U.S. 372, 378 (2007). Only disputes over the facts that might affect the
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outcome of the suit under the governing law are “material” and will properly preclude the
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entry of summary judgment. Anderson, 477 U.S. at 248.
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B.
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Affirmative Defenses
In his amended answer, Mr. Ragusa asserts the affirmative defenses of improper
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service, harassment, and unclean hands. (See Am. Ans. (Dkt. # 22) at 3-4.) He also
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“reserves the right to amend the answer to assert Other [sic] affirmative defenses.” (Id. at
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4.) Peoples Bank seeks summary judgment on all of Mr. Ragusa’s affirmative defenses.
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(Mot. at 7-8.)
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Each of Mr. Ragusa’s affirmative defenses fails as a matter of law. Peoples Bank
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properly served Mr. Ragusa. (Proof of Svc. (Dkt. # 56).) There is no suggestion in the
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complaint (see Peoples Bank Compl.) or evidence in the record that Peoples Bank filed
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this lawsuit to harass Mr. Ragusa or the Ambassador of the Lake, or that Peoples Bank
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has unclean hands with regard to the subject of this lawsuit (see Init. Disclosures (Dkt.
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# 67) (attaching Mr. Ragusa’s initial disclosures, none of which contain any evidence
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pertinent to Mr. Ragusa’s affirmative defenses); Vaughn Decl. (Dkt. # 101) (attaching no
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evidence relevant to Mr. Ragusa’s affirmative defenses); Ragusa Decl. (Dkt. # 102)
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(same)). Finally, Mr. Ragusa has not asserted any additional affirmative defenses and,
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after the court denied without prejudice a previous motion for leave to amend his answer
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(see 1/25/17 Order (Dkt. # 73)), Mr. Ragusa has not sought the court’s leave to amend his
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answer or to assert additional defenses (see Dkt.). Peoples Bank raises all of these
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deficiencies in its motion for summary judgment (Mot. at 7-8), and Mr. Ragusa fails to
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acknowledge the arguments, reference his affirmative defenses, or point to any evidence
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to support any of his affirmative defenses (see generally Resp).
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To withstand summary judgment, the party opposing summary judgment “must
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make a showing sufficient to establish a genuine dispute of material fact regarding the
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existence of the essential elements of his case that he must prove at trial.” Galen, 477
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F.3d at 658. Because Mr. Ragusa bears the burden of proof on each affirmative defense
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and has placed no facts in the record supporting any of those affirmative defenses, the
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court grants Peoples Bank summary judgment as to all of Mr. Ragusa’s affirmative
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defenses.
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C.
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Foreclosure
Regardless of whether the Ambassador of the Lake secures the 602 Loan, Mr.
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Ragusa’s admitted default on the 601 Loan warrants foreclosure. (See RFAs at 4
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(admitting that the Ambassador of the Lake secures the 601 Loan).) The outstanding
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balance on the 601 Loan exceeds the net proceeds from the forthcoming sale of the
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Ambassador of the Lake, less repair costs. (See 2d Olson Decl. ¶¶ 3-4); Walter E. Heller
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& Co. v. O/S Sonny V., 595 F.2d 968, 972 (5th Cir. 1979) (indicating that the resale price
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less the cost of repairs is presumptively the fair market value of property in a preferred
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marine foreclosure case). There is no evidence to suggest the sale of the Ambassador of
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the Lake was unfair or obtained less than market value. See Walter E. Heller, 595 F.2d at
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972; (Dkt.). All of the underlying facts are uncontroverted, Mr. Ragusa’s argument that
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the 602 Loan is unsecured is irrelevant, and Mr. Ragusa makes no argument opposing
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foreclosure based on his default on the 601 Loan. (See Resp. at 2-4.) Accordingly, the
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court grants Peoples Bank summary judgment against the Ambassador of the Lake, her
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engines, tackle, apparel, furniture, and equipment, for $130,549.79.2
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IV.
CONCLUSION
For the foregoing reasons, the court GRANTS Peoples Bank’s motion for
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summary judgment (Dkt. # 96), DISMISSES Mr. Ragusa’s affirmative defenses, and
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FORECLOSES the preferred marine mortgage on the Ambassador of the Lake.
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Dated this 9th day of August, 2017.
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A
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JAMES L. ROBART
United States District Judge
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The court defers ruling on whether and to what extent pre- and post-judgment interest
are available because there are extant claims against Mr. Ragusa and Defendant Lana Stewart, in
personam. (See generally Peoples Bank Compl.; SMM Compl. (Dkt. # 39).)
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