Parenteau v. Century Bank, A Florida Corporation
2:07-cv-00851
S.D. OhioMay 29, 2013Background
- IberiaBank moved for damages against Thomas Parenteau and Sartain on RICO and fraud claims related to a $12 million loan to the 4500 Dublin Road Living Trust.
- The loan was secured by real property in Columbus, Ohio, with a requirement to deposit $3 million into a Century Bank CD until paid down; the loan proceeds were at issue in alleged misappropriation or improper distribution.
- Criminal proceedings resulted in conspiracy to commit money laundering convictions for Parenteau, Marsha Parenteau, and Sartain; judgments and sentencing documents are referenced.
- A foreclosure and credit bid occurred; the property was sold for $3,222,222.22, with Amended and Original Confirmations of Sale and related orders.
- After foreclosure, the Court determined a deficiency of $8,511,491.29, and interest accrued on the judgment through sale impelled further damages potential.
- The Court granted IberiaBank summary judgment on all claims against plaintiffs and others, and referred damages issues to the magistrate judge for recommendation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether IberiaBank is entitled to treble damages under RICO | Parenteau/Sartain argue no treble damages or insufficient proof. | IberiaBank contends RICO treble damages apply and injury proven by deficiency plus interest. | Treble damages and interest awarded; damages trebled to $27,765,679.23. |
| Whether IberiaBank is entitled to attorneys’ fees and costs under § 1964(c) | N/A (parole arguments not contested). | N/A (no response provided). | Awarded $33,154.96 in attorneys’ fees and costs. |
| Whether punitive damages are warranted for fraud | Punitive damages requested to mirror deficiency plus interest. | N/A (no response). | Punitive damages denied; no further punitive award beyond treble damages. |
| What is the total damages award including trebled damages and fees | Total sought exceeded actual treble damages plus fees. | N/A (no response). | Recommended total award of $27,798,834.19 (trebled damages $27,765,679.23 + $33,154.96 in fees/costs). |
Key Cases Cited
- Brown v. Cassens Transport Co., 675 F.3d 946 (6th Cir. 2012) (treble damages and costs under RICO)
- Bldg. Serv. Local 47 Cleaning Contractors Pension Plan v. Grandview Raceway, 46 F.3d 1392 (6th Cir. 1995) (lodestar method for attorney's fees)
- Hensley v. Eckerhart, 461 U.S. 424 (Supreme Court 1983) (guides reasonable attorney fees groundwork)
- Pennsylvania v. Delaware Valley Citizens’ Council for Clean Air, 478 U.S. 546 (Supreme Court 1986) (lodestar concept for fees and reasonableness)
- Arbino v. Johnson & Johnson, 880 N.E.2d 420 (Ohio 1994) (punitive damages framework and deterrence)
- Charles R. Combs Trucking, Inc. v. Int’l Harvestor Co., 466 N.E.2d 883 (Ohio 1984) (requirements for punitive damages are egregiousness and malice)