United States District Court, D. Idaho
JEANNE B. BRYANT, solely in her Capcity as court-appointed independent fiduciary for RETIREMENT SECURITY PLAN AND TURST, Plaintiff,
TAMARACK MUNICIPAL ASSOCIATION, INC., an Idaho corporation, Defendant.
MEMORANDUM DECISION AND ORDER
B. LYNN WINMILL, Chief District Judge.
Plaintiff Jeanne Bryant, as an independent fiduciary for Retirement Security Plan and Trust ("RSPT"), filed this suit seeking to collect rent from Tamarack Municipal Association, Inc. ("TMA") for TMA's use of a golf and ski resort. TMA now moves to dismiss the suit, primarily arguing that Bryant's right to relief is limited to a foreclosure proceeding by Idaho's "single-action rule." An exception to the single-action rule pertaining to assignments of rent applies and saves Bryant's complaint. For this reason, and because there is no merit in TMA's alternative arguments, the Court will not dismiss this suit.
In 2010, Matthew Hutcheson defrauded the members of RSPT of $3, 276, 000.00 and used the proceeds of his crime to further his plan to purchase Tamarack resort, a four-season golf and ski resort located approximately eight miles southwest of Donnelly, Idaho. As is relevant here, Hutcheson acquired a mortgage and an assignment of rents encumbering Osprey Meadows Golf Course and a portion of the Lodge at Tamarack (collectively "Osprey Meadows" or the "property"). Osprey Meadows is owned by West Mountain Golf, LLC ("WMG").
In the wake of Hutcheson's conviction, Bryant acquired the mortgage and assignment of rents. She holds the position of "Lender" as defined in those documents.
The mortgage gives Bryant the right, upon default by WMG, to take possession of Osprey Meadows and collect rent from "any tenant or other user of the [p]roperty." Mortgage, dkt. 1, ex. A, at 5.
Prior to default by WMG, the assignment of rents gives Bryant the right to collect and receive rents. In furtherance of that right, the assignment provides that Bryant may (1) direct that all rents be paid to her, (2) enter and take possession of the property, (3) "carry on all legal proceedings necessary for the protection of the [p]roperty, " (4) "remove any tenant or tenants or other persons from the [p]roperty, " (5) "rent or lease the whole or any part of the [p]roperty for such term or terms and on such conditions as [Bryant] may deem appropriate, " and (6) "do all such other things and acts with respect to the [p]roperty as [Bryant] may deem appropriate." Assignment of Rents, Dkt. 1, ex. B, at 2. The assignment of rents grants Bryant these same rights with respect to leases entered into by WMG:
"RENTS" ALSO MEANS "LEASES". The word "Rents" also includes all Grantor's right, title and interest in all leases now in existence and entered into hereafter which demise any portion of the real property described in this Assignment of Rents, together with all subleases, amendments, modifications, renewals, replacements, and extensions, together with all guarantees of lessees' obligations under the leases ("Leases"). All rights which Grantor grants to Lender relating to the Rents and all representations and warranties Grantor makes regarding the Rents, Grantor also grants and makes to Lender relating to the Leases.
Id. at 3.
The assignment of rents further grants Bryant the power to act as landlord:
Lender may, at is sole option without any obligation to do so, assume all rights of the landlord under the Leases, may operate and manage the property, enter into and enforce the Leases, terminate the Leases and take any or all actions Lender deems prudent to preserve its ...