Foxfield Villa Associates LLC v. Robben

          MEMORANDUM & ORDER

          CARLOS MURGUIA United States District Judge.

         This matter comes before the court upon defendants Paul Robben and RDC Holdings, LLC (“RDC”)'s Motion to Dismiss (Doc. 106) and plaintiffs Richard A. Bartlett, Bartlett Family Real Estate Fund, LLC, Foxfield Villa Associates, LLC (“FVA”), Pres LLC, and Ernest J. Straub, III's Motion for Leave to file Sur-Reply (Doc. 119).

         I. Background

         This case involves a failed real estate development project in Olathe, Kansas, that began in 2000. Defendants and plaintiffs had financial interests at varying times in the project. Plaintiffs' allegations relate to defendants' alleged misconduct, which led plaintiffs to invest and eventually lose money in the venture. Plaintiffs filed this suit against numerous defendants on August 10, 2012. Another federal lawsuit was filed on March 8, 2013 and was eventually consolidated with this one. Both suits were stayed pending resolution of a related Johnson County, Kansas court proceeding.

         Defendant Robben filed for bankruptcy relief under Chapter 7 on April 3, 2013. On February 6, 2014, the bankruptcy court granted defendant Robben a discharge under 11 U.S.C. § 727. However, the bankruptcy court noted that some debts were not discharged, including, “[d]ebts that the bankruptcy court specifically has decided or will decide in this bankruptcy case. . .” (Doc. 107-4).

         On September 8, 2015, plaintiffs filed a stipulation of dismissal with prejudice, dismissing their claims against all defendants except Mr. Robben and RDC. On November 25, 2015, plaintiffs filed their Second Amended Complaint (Doc. 66) asserting the following 32 counts against remaining defendants:

Count 1- negligent misrepresentation as a real estate broker/salesperson (Robben)

Count 2- aiding and abetting count 2 (RDC)

Count 3- negligence as a real estate broker/salesperson (Robben)

Count 4- aiding and abetting count 3 (RDC)

Count 5- negligent misrepresentation as a Certified Public Accountant (“CPA”) (Robben)

Count 6- aiding and abetting count 5 (RDC)

Count 7- negligence as a CPA (Robben)

Count 8- aiding and abetting count 7 (RDC)

Count 9- Securities Exchange Act of 1934 (“SEC”) violations (Robben)

Count 10- Kansas Uniform Securities Act (“KUSA”) ...