United States District Court, D. Connecticut
RULING AND ORDER ON PLAINTIFF'S MOTION TO
A. BOLDEN UNITED STATES DISTRICT JUDGE.
United Bank sued Michael Culver for two breaches of a loan
agreement for Skip Barber Racing School LLC (“Racing
School”), a company for which Mr. Culver was the
majority owner. Complaint, ECF No. 1 (“Compl.”),
Culver has responded by, inter alia, filing a
counterclaim for tortious interference with contracts and
asserting several affirmative defenses, including an unclean
hands defense. Defendant's Amended Answer to
Plaintiff's Complaint, ECF No. 25, at 5-7.
United Bank moved to dismiss Mr. Culver's counterclaim
for lack of subject-matter jurisdiction and to strike his
unclean hands defense. Motion to Dismiss, ECF No. 27.
following reasons, the Court GRANTS
People's United Bank's motion to dismiss and
GRANTS People's United Bank's motion
Court dismisses Mr. Culver's counterclaim for tortious
interference with contract and dismisses the affirmative
defense of unclean hands from the Amended Answer.
Mr. Culver is proceeding pro se, the Court will not
require him to file the Amended Answer again, but this case
will proceed without this defense or any allegations relating
to it being viable.
FACTUAL AND PROCEDURAL BACKGROUND
January 25, 2011, People's United Bank agreed to loan the
Racing School up to $1, 000, 000. Compl. at ¶ 8.
People's United Bank alleges that Mr. Culver, as the
majority owner of the racing school, guaranteed the loan
obligations. Id. at ¶ 9.
United Bank also alleges that the loan is currently in
default and the obligations “have been accelerated and
demanded of both the Racing School and Culver.”
Id. at ¶ 10. As the holder of the loan note,
People's United Bank sought to hold Mr. Culver
responsible for the loan obligations, but People's United
Bank alleges that “Culver has refused and failed to pay
the indebtedness owed pursuant to the 2011 Note, or otherwise
duly perform the Obligations under the 2011 Loan Agreement
and the Culver 2011 Guaranty.” Id. at
¶¶ 11, 12.
United Bank alleges the principal amount on the loan is $992,
235.72, interest accrued as of February 28, 2017 is $38,
342.01, and late charges are $1, 387.06. Id. at
September 12, 2013, People's United Bank agreed to make
available to the Racing School a second loan of $200, 000.
Id. at ¶ 18. People's United Bank alleges
that Mr. Culver has guaranteed the loan obligations for this
loan. Id. at ¶ 20.
22, 2015, the parties amended the loan agreement.
Id. at ¶ 19.
United Bank alleges that the 2013 loan agreement “is in
default and Obligations have been accelerated and demanded of
both the Racing School and Culver.” Id. at
¶ 21. Nevertheless, Mr. Culver allegedly “has
refused and failed to pay the indebtedness owed pursuant to
the 2013 Note, or otherwise duly perform the Obligations
under the 2013 Loan Agreement and the Culver 2013
Guaranty.” Id. at ¶ 23.
United Bank alleges that the principal amount on the second
loan is $200, 000, interest accrued as of February 28, 2017
is $6, 844.44, and late charges are $10, 297.22.
2, 2017, People's United Bank filed its Complaint against
Mr. Culver. Compl.
September 11, 2017, the parties jointly filed an ex
parte motion for a stay of the proceedings, which the
Court granted. Joint Ex Parte Motion for Stay and Extension
of Time for Further Proceedings, ECF No. 9; Order, ECF No.
a status report, the Court again stayed the proceedings.
Status Report, ECF No. 11; Order Staying Case, ECF No. 12.
September 10, 2018, People's United Bank moved for
default entry, which the Clerk of the Court granted. Motion
for Default Entry, ECF No. 14; Order, ECF No. 15.
October 3, 2018, Mr. Culver objected to the motion for