RB Prods. v. Encore DEC, LLC

Decision Date25 March 2022
Docket Number2:21-cv-00587-RFB-EJY
PartiesRB PRODUCTS, INC., a Texas corporation; Plaintiff, v. Encore DEC, LLC, et. al., Defendants.
CourtU.S. District Court — District of Nevada

RB PRODUCTS, INC., a Texas corporation; Plaintiff,
v.
Encore DEC, LLC, et. al., Defendants.

No. 2:21-cv-00587-RFB-EJY

United States District Court, D. Nevada

March 25, 2022


ORDER

RICHARD F. BOULWARE, II, UNITED STATES DISTRICT JUDGE.

I. INTRODUCTION

Before the Court for consideration is Plaintiff's Motion for Summary Judgment, ECF No. 16.

II. PROCEDURAL BACKGROUND

Plaintiff RB Products, Inc. brings this action against Defendant Encore DEC, LLC, Defendant RESC, LLC, Defendant Randy Soule, Defendant New Rise Renewables, LLC, and Defendant New Rise Renewable Reno, LLC, for breach of contract and breach of the covenant of good faith and fair dealing for failing to pay an agreed upon settlement amount by the contractual date. Plaintiff filed a complaint in federal court on April 9, 2021. ECF No. 1. A first amended complaint was filed on April 15, 2021 prior to any responsive pleading. ECF No. 5. On June 15, 2021, Defendants answered the amended complaint. ECF No. 15.

On June 28, 2021, Plaintiffs filed a motion for summary judgement. ECF No. 16. On July 22, 2021, Defendants filed a response. ECF No. 19. Also on July 22, 2021, Defendants filed a counter motion to defer ruling on pending discovery pursuant to FRCP 56(d).

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On August 2, 2021, the magistrate judge entered a scheduling order. The cut-off date for discovery was January 14, 2022. Dispositive motions were due by February 15, 2022. ECF No. 24. No. new motions were filed on or after February 15, 2022.

On August 5, 2021, Plaintiff filed a reply to Defendant's response. ECF No. 25. On the same day, they also filed a response to Defendant's ECF No. 20 Motion. ECF No. 26. On August 19, 2021, Defendants replied to Plaintiff's response on to ECF No. 20 motion.

On March 16, 2022, the Court heard oral argument on the two outstanding motions. ECF No. 35. At the hearing, the Court denied as moot Defendant's Countermotion to Defer Ruling Pending Discovery. A written order on the Motion for Summary Judgment follows.

III. FACTUAL BACKGROUND

a. Undisputed Facts

The Court finds the following facts to be undisputed. RB Products is Texas-based company that specializes in the processing, trading, and distribution of petrochemicals, specialty chemicals, and other oil-related products. In February 2019, RB Products sued Defendants in Federal District Court for the District of Nevada, Case No. 3:19-cv-00105-MMD-WGC (“the Original Lawsuit”), alleging, among other things, that Defendants misappropriated RB Products' trade secrets information and used that information during the start-up of a large renewable-diesel manufacturing facility in Reno, Nevada.

In December 2020, RB Products and Defendants entered into a Release and Settlement Agreement to resolve the Original Lawsuit. (“the Settlement Agreement”). The Defendants, jointly and severally, agreed to pay RB Products $1, 250, 000 in exchange for a dismissal of the Original Lawsuit. The Settlement Agreement contained the following language:

Payment to RB.

On or before April l, 2021, the Encore Defendants, jointly and severally, agree to pay - and RB agrees to accept - the total amount of One Million Two Hundred Fifty Thousand and 00/100 Dollars ($1, 250, 000.00) in the aggregate. Encore Defendants represent and warrant

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that they have started efforts to obtain financing for their business operations. Encore Defendants represent and warrant that one of the conditions of obtaining financing for Ryze Reno is the dismissal of the Lawsuit. Encore Defendants agree to use their best efforts to obtain financing as expeditiously as possible. Therefore, based on these representations and warranties, RB agrees to dismiss the Lawsuit with prejudice. To the extent funding occurs prior to April 1, 2021, the Encore Defendants shall make the foregoing payment within 3 business days of receipt of funding. Said payments shall be made by wire transfer to RB 's counsel, Mahendru, PC, pursuant to wiring instructions to be provided by RB 's counsel.

Release as Between the Parties.

Upon satisfaction of the payment obligations set forth in Paragraph I above, the Parties agree that they will fully, finally and forever release, acquit, discharge...

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