United States District Court, N.D. Alabama, Jasper Division
MEMORANDUM OF OPINION
Scott Coogler, United States District Judge.
the Court is Spencer Transportation, LLC
(“Spencer”) and Dwayne Haney's
(“Haney”) (collectively “Defendants”)
Motion to Dismiss for Lack of Subject Matter Jurisdiction.
(Doc. 6.) Plaintiff BMO Harris Bank, N.A.
(“Plaintiff” or “BMO”), has timely
filed a response. (Doc. 8.) For the reasons stated below,
Defendants' motion is due to be DENIED.
case arises out of an alleged breach of a Contract and
Guaranty. On January 9, 2015, Spencer Transportation entered
into a Loan and Security Agreement (“the
Agreement”) with non-party General Electric Capital
Corporation (“GECC”) wherein GECC financed
Spencer's purchase of a 2014 Volvo tractor trailer (the
“Collateral”). Pursuant to the Agreement, GECC
lent Spencer a principal amount of $144, 391.80. Upon GECC
financing of the purchase, Spencer began making monthly
payments to GECC. To provide additional security to GECC,
Haney executed a Continuing Guaranty whereby he agreed to be
jointly and severally liable to GECC for Spencer's
obligations under the Agreement. GECC perfected its security
interest in the Collateral. On December 1, 2015, GE Capital
U.S. Holdings, Inc., as a successor in interest to GECC,
assigned all of its rights, title and interest in the
Agreement to BMO.
August of 2016, Spencer defaulted under the Agreement by
failing to pay amounts owed. The Agreement contains an
acceleration clause and despite demands, Spencer failed to
cure the default. In addition, bankruptcy is listed in the
Agreement as an event of default, and in January of 2017,
Spencer defaulted by filing for bankruptcy under Chapter 11
in the Northern District of Alabama. (See Doc. 1-5.)
During the bankruptcy case, Spencer made one adequate
protection payment of $2, 835.76. The bankruptcy case was
dismissed in October of 2017, without confirming a plan of
Complaint, BMO avers that as of December 14, 2017, Spencer is
indebted to it under the Agreement in the total amount of
$106, 643.74, calculated as follows:
Principal Balance: $85, 898.84
Interest: $21, 131.11
Late Charges: $2, 406.60
Payment from bankruptcy
proceeding: ($2, 835.76)
Total: $106, 643.74
also averred that “[i]nterest continues to accrue under
the Agreement in amount of ...