United States District Court, S.D. West Virginia, Huntington Division
MEMORANDUM OPINION AND ORDER
C. CHAMBERS UNITED STATES DISTRICT JUDGE.
before the Court are Plaintiff Service Pump & Supply Co.,
Inc's Motions for Summary Judgment against Defendant Sun
Industries, LLC and Defendant Toby Berthelot. See
ECF Nos. 29, 44, 56. This Court previously granted, in part,
Plaintiff's Motion for Summary Judgment on its breach of
contract claim against Defendant Sun. ECF No. 54. However, in
order for the Court to rule on the remaining issues raised in
the motion regarding interest, attorney fees, and costs, the
Court directed the parties to file memoranda addressing those
specific matters. See Id. The Court also directed
Plaintiff to file any Motion for Summary Judgment against
Defendant Berthelot by May 27, 2019, and Plaintiff did so on
May 23, 2019. See id.; ECF No. 56.
respect to the parties' memoranda addressing the issues
of interest, attorney fees, and costs, the parties only
dispute the amount of interest which is due-with Plaintiff
claiming that compound interest applies, and Defendants
arguing that simple interest applies. See Defs.'
Post-Hr'g Mem., ECF No. 58, at 2; Resp. in Opp.
to Defs.' Post-Hr'g Mem., ECF No. 59, at 1. In
regard to Plaintiff's Motion for Summary Judgment against
Defendant Berthelot, Plaintiff argues that Defendant
Berthelot is personally liable for Defendant Sun's
obligations based on a credit contract, while Defendant
Berthelot simply disputes the proposition that the credit
contract exposes him to personal liability. See Mem. in
Supp. of Pl.'s Mot. for Summ. J., ECF No. 57, at
1-6; Resp. in Opp. to Pl.'s Mot. for Summ. J.,
ECF No. 61, at 1.
parties have fully briefed the issues and the motions are
ripe for adjudication. As explained below, the Court
GRANTS, IN PART, and
DENIES, IN PART,
Plaintiff's Motion for Summary Judgment against Defendant
Sun, and GRANTS Plaintiff's Motion for
Summary Judgment against Defendant Berthelot.
case arises out of Plaintiff's allegation that Defendants
breached a rental contract for generators by refusing to pay
it the full contract price. See Compl., ECF No. 1;
Am. Compl., ECF No. 19. Plaintiff filed a Motion for
Summary Judgment and an Amended Motion for Summary Judgment
against only Defendant Sun on December 31, 2018, and March
22, 2019, respectively. See ECF Nos. 29, 44.
Subsequently, on April 4, 2019, Defendants filed their own
Motion for Summary Judgment against Plaintiff. See
ECF No. 47.
reviewing the briefs and concluding that Defendant Sun
breached the rental contract between the parties by failing
to pay the full contract price, this Court entered a
memorandum opinion and order denying Defendants' Motion
for Summary Judgment, and granting, in part, Plaintiff's
Motion for Summary Judgment against Defendant Sun. See
Mem. Op. and Order. However, merely finding that
Defendant Sun breached the rental contract did not dispose of
all the issues in this case because of the undisputed
existence of an ancillary contract between the parties-a
“credit contract”-that contains an interest
provision and a liability provision.
credit contract states the following regarding interest on
1. The applicant [Defendant Sun] agrees to payment terms of
net 30 days and understands that service charges of 1.5% per
month may accrue and be payable on past due balances.
2. Accounts over 60 days past due will have open account
privileges revoked until the account is paid to current.
3. In the event collection is required, the applicant agrees
to pay for all costs and expenses incurred in collecting and
all unpaid indebtedness. Said costs and expenses shall
include all attorney and collection fees.
Credit Contract, ECF No. 19-2, at 2.
credit contract then states the following regarding liability
In order to extend credit to the above applicant [Defendant
Sun], the undersigned, as an authorized officer of the
company guarantees the prompt payment of any indebtedness
which may at any time and from time to time be incurred, and
in the event of any default by the applicant, Service Pump
& Supply shall be entitled to look to the undersigned
immediately for such payment without prior demand, notice or
other indulgence. In consideration of Service Pump &
Supply extending credit, the undersigned unconditionally
personally guarantees, jointly ...