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Read v. Teton Springs Golf & Casting Club

July 6, 2010

SCOTT READ, ET AL., PLAINTIFFS,
v.
TETON SPRINGS GOLF & CASTING CLUB, LLC, ET AL., DEFENDANTS.
CHRIS HAMABE, ET AL. PLAINTIFFS,
v.
TETON SPRINGS GOLF & CASTING CLUB, LLC, ET AL., DEFENDANTS.



The opinion of the court was delivered by: Honorable Ronald E. Bush U. S. Magistrate Judge

MEMORANDUM DECISION AND ORDER RE:

Defendants' Motion to Dismiss Punitive Damage Claims (Docket No. 283)

Plaintiffs' Amended Motion for Leave to File Third Amended Complaint (Docket No. 368)

Teton Springs' Motion to Quash Subpoenas and for Protective Order (Docket No. 300)

All Seasons' Motion for Leave to File Supplemental Affidavit (Docket No. 374)

Teton Springs' Motion for Leave to File Supplemental Affidavit (Docket No. 376)

Defendants' Motion to Strike Affidavit of Mark McLean (Docket No. 327)

Plaintiffs' Motion to Compel Discovery and for Sanctions - All Seasons (Docket No. 367)

Plaintiffs' Motion to Compel Discovery and for Sanctions - Teton Springs (Docket No. 377)

Currently pending before the Court are 21 motions, 14 of which are scheduled for hearing on July 7, 2010. Those 14 motions are, in turn, organized into six consolidated motions by, for the most part, subject-matter. Consistent with the Court's June 4, 2010 Docket Text Notice, the Court will take this opportunity to resolve eight of the pending motions (speaking to four of the six consolidated motions) before July 7, 2010 in an attempt to focus the parties and the Court on the larger, more substantive issues during the hearing. See 6/4/10 DTN (Docket No. 465). Therefore, having carefully reviewed the record and otherwise being fully advised, the Court issues the following Memorandum Decision and Order:

BACKGROUND

While there are many moving parts to this action, since the beginning, the general backdrop to Plaintiffs' claims relate to the development, marketing, purchase, sale, and construction of 28 lots and homes in the "Teton Springs" real estate development in Victor, Idaho. See, e.g., Mem. in Supp. of Pls.' Motion for Leave to File Pls.' Third Am. Compl., p. 2 (Docket No. 303). The nuanced specifics of such claims are not necessarily important to the Court's resolution of several motions now orbiting the more significant dispositive motions that are currently pending; as a consequence, particular facts will not be discussed in detail here. Suffice it to say, as purchasers of the above-referenced 28 lots and homes, Plaintiffs take issue with the alleged manner in which Defendants' marketed and sold those properties. Defendants, in turn, deny these allegations, contending further that Plaintiffs themselves were integral players in an investment scheme that ultimately backfired.

ANALYSIS

In triaging the various motions set for hearing on July 7, 2010, the undersigned attempted to consider up-front those motions capable of resolution on the briefing alone - the low-hanging fruit, if you will. While not discounting the importance of such motions, with their early consideration and disposition, it is the Court's hope that the scheduled hearing can be devoted mostly to the core issues making up the parties' respective claims and defenses. With this in mind, the following motions are resolved here:

* Defendants' Motion to Dismiss Punitive Damage Claims (Docket No. 283);

* Plaintiffs' Amended Motion for Leave to File Third Amended Complaint (Docket No. 368);

* Teton Springs' Motion to Quash Subpoenas and for Protective Order (Docket No. 300);

* All Seasons' Motion for Leave to File Supplemental Affidavit (Docket No. 374);

* Teton Springs' Motion for Leave to File Supplemental Affidavit (Docket No. 376);

* Defendants' Motion to Strike Affidavit of Mark McLean (Docket No. 327);

* Plaintiffs' Motion to Compel Discovery and for Sanctions - All Seasons (Docket No. 367); and

* Plaintiffs' Motion to Compel Discovery and for Sanctions - Teton Springs (Docket No. 377).

I. Defendants' Motion to Dismiss Punitive Damage Claims (Docket No. 283)

In their Second Amended Complaints, Plaintiffs include a claim for punitive damages.

See Mem. in Supp. of Mot. to Dismiss Pun. Dmgs. Claims, p. 1 (Docket No. 283, Att. 1). Defendant All Seasons Resort Realty ("All Seasons") argues that (1) punitive damages are not allowed relative to Plaintiffs' federal claims under the Interstate Land Sales Full Disclosure Act (see id. at p. 2) and (2) as to Plaintiffs' state law claims, punitive damages cannot be asserted without first making an evidentiary showing under I.C. § 6-1604 (see id. at pp. 2-4). Plaintiffs' opposition does not address the specific arguments raised within All Seasons' Motion, but, instead, takes the form of another effort to amend their Complaints. See Pls.' Opp. to Mot. to Dismiss Pun. Dmgs. Claims, p. 2 (Docket No. 301) ("Defendants' motion will likely be determined by the outcome of Plaintiffs' Motion for Leave to File Plaintiffs' Third Amended Complaints [Docket No. 302], which accompanies this response.").

The Court will therefore deny Defendants' Motion to Dismiss Punitive Damage Claims (Docket No. 283) as moot, choosing instead to address the merits of this specific argument in the context of Plaintiffs' Motion for Leave to File Third Amended Complaint (Docket No. 302). Similarly, Defendant Teton Springs' Golf and Casting Club's ...


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