United States District Court, E.D. Louisiana
ORDER & REASONS
J. BARBIER, UNITED STATES DISTRICT JUDGE.
the Court is a Motion to Stay Action (Rec.
Doc. 3) filed by the Federal Deposit Insurance
Corporation (“FDIC”), as receiver for First NBC
Bank, and an opposition (Rec. Doc. 5) filed by Plaintiff,
Brothers Petroleum, LLC (“Brothers Petroleum”).
Having considered the motion and legal memoranda, the record,
and the applicable law, the Court finds that the motion
should be GRANTED.
AND PROCEDURAL BACKGROUND
litigation arises from a contract dispute between Brothers
Petroleum, a motor fuel distributor, and Defendant Wagners
Chef, LLC (“Wagners Chef”), the operator of a
gasoline/convenience store located on 4301 Louisa Street, New
Orleans, Louisiana (the “Property”). (Rec. Doc.
3-3 at 3.) The Contract between Brother Petroleum and Wagners
Chef (the “Contract”) allegedly provides that
Brothers Petroleum has the exclusive right to sell Exxon
branded motor fuel at the Store.(Rec. Doc. 3-3 at 3.)
2014, Wagners Chef filed suit against Brothers Petroleum in
state court seeking a declaration that Wagners Chef was not
bound by the Contract. (Rec. Doc. 3-3 at 3). On November 7,
2015, the Louisiana Fourth Circuit Court of Appeals declared
the Contract was binding on Wagners Chef. In May 2016,
Brothers obtained a judgment finding Wagners Chef in breach
of the Contract and ordering specific performance by Wagners
Chef. (Rec. Doc. 3-3 at 3,4.) Nonetheless, Brothers Petroleum
claims that Wagners Chef continuously refused to abide by the
Chef leased the Property from owner Wagner World, LLC
(“Wagner World”) during the time Wagners Chef
operated the convenience store/gas station. The lease
allegedly “extended through February, 2022 with a seven
(7) year option to purchase thereafter.” However, on
July 8, 2016, Wagners Chef cancelled its lease. (Rec. Doc. 5
at 3.) Brothers Petroleum alleges that the lease was Wagners
Chef’s “single most valuable asset” because
it operated its business from the Property, its operational
licenses and permits relied on the lease, and the lease
contained an option to purchase.
same day as the lease cancellation, Jadallah Enterprises, LLC
(“Jadallah Enterprises”), purchased the Property
from Wagner World and then leased it to Ahmed 1, LLC
(“Ahmed 1”). First NBC Bank (“First
NBC”) allegedly provided a multiple indebtedness
mortgage to fund Jadallah Enterprise’s purchase of the
Property and Ahmed 1 executed an assignment of rents in favor
of First NBC as security. Jadallad Saed is allegedly the sole
owner of Wagners Chef, Ahmed 1, and Jadallah Enterprises.
November 15, 2016, Wagners Chef allegedly advised Brothers
Petroleum that it sold all of its assets to Empire Express,
LLC (“Empire Express”). Subsequently, Empire
Express allegedly subleased the Property to Ahmed 1.
December 21, 2016, Brothers Petroleum filed a revocatory
action in state court seeking to negate Wagners Chef’s
lease cancellation, the sale of the Property to Jadallah
Enterprises, the lease to Ahmed 1, and the sale of Wagners
Chef’s assets to Empire Express. Brothers Petroleum
alleges that the cancellation of the lease and the transfers
of the Property caused or increased the insolvency of Wagners
Chef to the detriment of Brothers Petroleum. (Rec. Doc. 3-3
at 7.) Further, Brothers Petroleum claims that it is entitled
to a judgment “annulling” both the multiple
indebtedness mortgage and the assignment of rents because
First NBC knew or should have known that these transactions
would cause Wagners Chef to breach its Contract with Brothers
Petroleum and increase the insolvency of Wagners Chef. (Rec.
Doc. 3-3 at 9.) Brothers Petroleum also seeks damages from
unfair trade practices, or alternatively, unjust enrichment
against various Defendants, including First
April 28, 2017, First NBC was declared insolvent and the FDIC
was appointed as receiver of First NBC. The FDIC removed this
case from state court on May 30, 2017. On July 17, 2017, the
FDIC moved for a stay of these proceedings until it can
complete its administrative review. (Rec. Doc. 3-1 at 1.)
FDIC argues that Brothers Petroleum must first exhaust its
administrative remedies before proceeding in the instant
case. (Rec. Doc. 3-1 at 3.) Because the administrative
process can take 180 days or more, the FDIC requests a stay
for 180 days. (Rec. Doc. 3-1 at 5.) However, alternatively,
the FDIC states that it is legally entitled to at least a
90-day stay pursuant to 12 U.S.C. § 1821(d)(12)(B).