Opinion No. 2
from the District Court of the Fourth Judicial District of
the State of Idaho, Ada County. Hon. Samuel A. Hoagland,
judgment of the district court is affirmed. Costs on appeal
are awarded to respondents.
Litster Frost Lawyers, Boise, attorneys for appellants. Seth
H. Diviney argued.
Stephen Beane, Boise, attorney for respondents.
Nature of the Case
case arising out of Ada County, Jeremy and Jessica Litster
("Jeremy, " "Jessica, " and collectively,
the "Litsters") appeal from a district court
dismissal on summary judgment. The case concerns the
enforceability of three promissory notes, which were prepared
and issued by Jeremy to Jason Lee ("Jason"), Scott
McNab ("McNab"), and a non-party, Rick Lee
("Rick"). In January, February, April, and June
2011, Jeremy made payments on these promissory notes.
However, in July 2011, Jeremy stopped making payments because
he learned that the Idaho Department of Finance had been
notified regarding his investment solicitation activity.
Lee ("Grant"), Jason, and McNab (collectively,
"Plaintiffs") filed a complaint against the
Litsters on July 18, 2014, for breach of contract. On April
7, 2015, Plaintiffs filed a motion for summary judgment,
which was granted on July 24, 2015.
Factual and Procedural Background
case concerns the enforceability of three promissory notes
prepared and issued by Jeremy. In February 2009, Jeremy
learned of an "investment
opportunity" that required a minimum buy-in of $500,
000. Jeremy and Jason solicited close friends and family to
"invest" by transferring money to them, which would
later be transferred to Jeremy's relative, Marc Jenson
promissory notes at issue arise from three deposits: (1)
McNab deposited $25, 000 into Jeremy's bank account on
March 12, 2009; (2) Jason deposited a total of $8, 000
between February 28, 2009, and March 13, 2009; and (3) Scott
Lee, who is not a party to this appeal, deposited $10, 000
into Jenson's account on Rick's behalf. In total, $900,
000 was transferred to Jenson for the "investment."
In return, Jenson issued four promissory notes to Jeremy,
totaling $900, 000. Additionally, Doug Roberts (Jeremy's
former father-in-law) issued a personal guarantee, dated
April 10, 2009, guaranteeing payment for the four promissory
notes issued by Jenson.
the "investment" failed, and Plaintiffs and other
"investors" pursued repayment from Jeremy. On
December 14, 2010, a letter was delivered to Jeremy, which
was endorsed by Plaintiffs. The letter provided:
This is a final attempt to collect all promissory notes for
all who invested in Marc Jenson's EB-5 project. Please
send promissory notes to the following individuals that
loaned you money for an EB-5 project, as promised. Of course
per our original understanding and agreements, verbal or
otherwise promised by you, ...