1:23-cv-02544
D. Colo.Sep 23, 2024Background
- Michael Brubaker loaned $200,000 to SRE Capital, LLC in 2022, memorialized through three successive promissory notes, each raising the interest rate and rolling over the debt.
- The notes were to be secured by deeds of trust in Colorado properties and personally guaranteed by SRE Capital's principals, Grant and Gregory Brunner.
- SRE Capital defaulted on all notes, failed to record security interests, and Brubaker was repeatedly assured repayment via of misleading communications by Grant Brunner.
- Brubaker filed suit alleging breach of contract and fraudulent misrepresentation against SRE Capital and the Brunners; the Brunners later died, and claims against them were dismissed without prejudice.
- SRE Capital failed to respond to the summary judgment motion, and undisputed evidence showed a continuing and total failure to repay Brubaker.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of Contract | SRE Capital failed to pay according to the notes’ terms, causing damages. | No response filed. | Summary judgment granted for Brubaker (Count I). |
| Fraudulent Misrepresentation | SRE knowingly made material false statements to induce extensions and prevent action. | No response filed. | Summary judgment granted for Brubaker (Count III). |
| Attorney’s Fees | Notes entitle Brubaker to fees incurred to collect debt. | No response filed. | Entitled to reasonable fees; amount to be determined. |
| Damages | Sought $318,287.91 plus interest as due on the notes. | No response filed. | Damages granted in requested amount, plus interest. |
Key Cases Cited
- W. Distrib. Co. v. Diodosio, 841 P.2d 1053 (Colo. 1992) (listing the four elements of a breach of contract claim under Colorado law)
- Bristol Bay Prods., LLC v. Lampack, 312 P.3d 1155 (Colo. 2013) (sets out elements for fraudulent misrepresentation under Colorado law)
- Grynberg v. Total S.A., 538 F.3d 1336 (10th Cir. 2008) (presuming application of forum law where parties so proceed)
- Crowe v. ADT Sec. Servs., Inc., 649 F.3d 1189 (10th Cir. 2011) (summary judgment standards)
- Bones v. Honeywell Int’l, Inc., 366 F.3d 869 (10th Cir. 2004) (requirement for nonmovant to show genuine factual dispute)