United States District Court, W.D. Louisiana, Shreveport Division
L. HAYES, UNITED STATES MAGISTRATE JUDGE
the Court is a Motion for Summary Judgment [doc. # 49] filed
by defendant United National Insurance Company
(“UNIC”). With the consent of all parties, the
District Court referred the above-captioned case to the
undersigned magistrate judge for the conduct of all further
proceedings and the entry of judgment. 28 U.S.C. §
636(c). For reasons stated below, the motion is
case arises out of a dispute between CRU Shreveport, LLC
(“CRU”) and its insurer UNIC. CRU alleges UNIC
breached the contract between the parties and violated the
duty of good faith. CRU filed its complaint in this matter on
June 5, 2018. On September 7, 2019, UNIC filed the instant
motion for summary judgment, claiming that CRU no longer has
a right of action because of a dation agreement between CRU
and its creditor GreenLake. On September 30, 2019, CRU filed
its response to the motion for summary judgment. On October
7, 2019, UNIC filed its reply brief. The matter is ripe.
Local Rule 56.1, every motion for summary judgment must be
accompanied by a separate, short and concise statement of the
material facts as to which the moving party contends there is
no genuine issue to be tried. Under Local Rule 56.2, a party
opposing a motion for summary judgment must include a
separate, short and concise statement of the material facts
as to which there exists a genuine issue to be tried. All
facts set forth in the statement required by the moving party
will be deemed admitted unless controverted.
present case, CRU has only made a few objections to the
statement of material facts presented by UNIC. Thus, all
other facts in the statement submitted by UNIC are deemed
admitted. For ease of reading and clarity, the court first
lists the undisputed facts and then lists the disputed facts.
October 4, 2013, CRU purchased the hotel located at 1419 E.
70th Street, Shreveport, Louisiana (“the
Hotel” or “the Property”).
November 8, 2013, CRU executed a Mortgage in favor of
creditor GreenLake secured by the Hotel and its Movables.
experienced difficulty paying its debts to GreenLake and its
government taxes. CRU entered into three amending promissory
notes with GreenLake in which GreenLake loaned additional
funds and extended the maturity date of the debt.
September 2016, the boiler allegedly malfunctioned and
released water. As a result, CRU made a claim against its
paid on the claim and then, weeks later, CRU alleged numerous
additional Hotel rooms were damaged by the boiler leak.
February 1, 2017, GreenLake says CRU defaulted on its note.
CRU was severely delinquent in payment of sales and use taxes
to the State of Louisiana and was also out of compliance with
the Louisiana Alcohol and Tobacco Control, which rescinded
CRU's liquor license.
August 11, 2017, CRU and GreenLake entered into a forbearance
agreement, whereby GreenLake agreed to forbear on the
defaulted note as long as CRU complied with various terms.
Forbearance Agreement required CRU to execute a Partial
Dation Agreement to convey the Hotel and its Movables to
GreenLake should CRU default on the Forbearance Agreement.
The Dation would be effective on the date it was recorded in
the public property records of Caddo Parish.
October 23, 2018, the Dation was recorded. It provided that
in consideration for the amount of $6, 315, 000, CRU was
“transferring, conveying, delivering, granting and
relinquishing the Property and the Movable Property to
Dation further provided: “Grantor [CRU] hereby
acknowledges and agrees that the conveyance of the Property
and the Movable Property to Grantee [GreenLake], or the
holder of the note, pursuant to this Partial Dation, is an
absolute conveyance of all of Grantor's right, title and
interest in and to the Property and the Movable Property.
Grantor further acknowledges that, after conveyance of the
Property and Movable Property hereunder, Grantor shall have
no further interest or claims with respect to the property or
the movable property to grantee, or the holder of the
Dation further provided that CRU shall “immediately and
unconditionally surrender complete possession of the Property
and the Movable Property to Grantee [GreenLake], the holder
of the Note or Grantee's [GreenLake's] designee and
Grantee, the holder of the Note or Grantee's designee
shall be authorized to secure possession and control of the
Property and the Movable Property from the Grantor.”
Assignment of Right to Take Title and Possession Under
Partial Dation En Paiement Deed and Voluntary Surrender,
recorded in Caddo Parish on October 23, 2018,