Williams Bros. Lumber Co. LLC d/b/a HD Supply Lumber and Bldg. Materials v. Malloy

The trial court erred in denying the plaintiff's motion for j.n.o.v. following a jury verdict in favor of the defendant, as the plaintiff made the required prima facie showing to recover on the note at issue and there was no evidence supporting a defense.

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Defendant Patrick Malloy, Jr. was a homebuilder and real estate developer, who operated his business through a number of entities including Patrick Malloy Communities, LLC “PMC”. For a number of years, PMC had purchased substantial quantities of lumber and building supplies from plaintiff Williams Bros. Lumber Company, LLC “Williams Bros.”.1 As economic conditions and the housing market declined during 2007 and 2008, Williams Bros. became concerned about the security of the debt owed by PMC and initiated negotiations to obtain the personal guarantee of Malloy on PMC’s debt. The negotiations culminated in the execution by Malloy of the promissory note at issue, and in exchange, Williams Bros. wrote down PMC’s debt from approximately $700,000 or $800,000 to $350,000. The note, which was executed on May 28, 2008, provided that Malloy would make a payment of $150,000 on or before May 31, 2008, and make monthly payments of $5000, starting in May 2008, with payment of all remaining principal and interest on or before December 31, 2010.

Instead of making payments as set out in the note, Malloy made three payments of $25,000 on June 13, June 27, and July 31 of 2008, and Williams Bros. brought suit, seeking the balance alleged to be due under the note after these partial payments. After a jury trial, judgment was entered on the verdict in favor of Malloy, that is, with Williams Bros. taking nothing. Williams Bros. moved for judgment notwithstanding the verdict, or in the alternative for a new trial. These motions were denied, and Williams Bros. appeals.

Williams Bros. Lumber Co. LLC d/b/a HD Supply Lumber and Bldg. Materials v. Malloy

The trial court erred in denying the plaintiff's motion for j.n.o.v. following a jury verdict in favor of the defendant, as the plaintiff made the required prima facie showing to recover on the note at issue and there was no evidence supporting a defense.

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