Renamba LLC v. Red Mortgage Capital LLC

Issues Exist on Billing for Legal Work; Unjust Enrichment Claim Duplicates Breach Claim

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Magistrate Judge Andrew Krause¹

DECISION AND ORDER Plaintiff Renamba, LLC (“Renamba”) brings this action against Defendant Red Mortgage Capital, LLC (“RED”) for breach of contract, unjust enrichment, and breach of the implied covenant of good faith and fair dealing. ECF No. 1. The parties have cross-moved for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. ECF Nos. 41, 47. For the reasons that follow, Renamba’s motion is DENIED, and RED’s cross-motion is GRANTED IN PART AND DENIED IN PART. I. BACKGROUND² The following facts are undisputed unless otherwise noted. On August 8, 2013, Renamba, as mortgagor, and RED, as mortgagee, entered into a Mortgage Loan for the principal amount of $29,559,600.00 (“Loan”). Def.’s 56.1 Statement 1. The Loan was for Renamba to purchase the land located at 25 Saxon Woods Road, Scarsdale, New York 10605. Id. 2. On July 29, 2014, Renamba and RED entered into a Consolidated, Modified and Extended Mortgage for the Loan (“Modification Agreement”). Id. 4. Section 28 of the Modification Agreement provides that “if the Mortgagee is made or becomes a party to any suit or action, by reason of this Mortgage or the indebtedness hereby secured, the Mortgagor will pay all expenses incurred by the Mortgagee therein, including a reasonable attorney’s fee.” Id. 5 & Greene Decl. (ECF No. 43) Ex. C. RED was named as a defendant in two lawsuits related to the Loan after the execution of the Modification Agreement, both of which were filed in New York State Supreme Court, Westchester County: Beebe Construction Services, Inc. v. Renamba LLC, Red Mortgage Capital, LLC, et al., Index No. 53719/2015 (“Beebe 2015″), and Beebe Construction Services, Inc. v. Renamba LLC, Red Mortgage Capital, LLC, et al., Index No. 61493/2016 (“Beebe 2016″) (collectively, the “Beebe Actions”). Def.’s 56.1 Statement

Renamba LLC v. Red Mortgage Capital LLC

Issues Exist on Billing for Legal Work; Unjust Enrichment Claim Duplicates Breach Claim

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