Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Boyle v. D'Onofrio

May 31, 2000

BRUCE BOYLE, BDB ENTERPRISES, LLC; BMD ASSOCIATES, LLC; AND FORGE LANDING MARINA, INC.,
PLAINTIFFS,
V.
DONATO D'ONOFRIO, SR.; DONATO D'ONOFRIO, II; COMMERCE BANK, PAUL DALTON, CPA; MARY D'ONOFRIO; BLUE SKY INC.; DAN-D, INC.; D. BUSINESS MANAGEMENT, INC; J&D ENTERPRISES, INC.; MARIDAN ENTERPRISES, INC.; MARSH SCHIFF, INC.; PINEWALD VILLA, INC.; OCEAN-MONMOUTH CONSTRUCTION, INC.; FRANK MANDIA; MANDIA-COAST, INC.; MARK DALTON; LAKE RIVERIA COMPANY, LP; JOHN DOES 1-99, AND ABC COMPANY 1-99,
DEFENDANTS.



The opinion of the court was delivered by: Cooper, District Judge

FOR PUBLICATION

MEMORANDUM OPINION

The instant litigation arises from an effort by plaintiff Bruce Boyle and defendant Donato D'Onofrio to develop a marina property in Brick, New Jersey. Plaintiffs set forth claims premised on the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962(c), (d), and on various state law causes of action.

This matter comes before the Court on motions to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) by (1) defendants Donato D'Onofrio, Sr.; Mary D'Onofrio; Donato D'Onofrio, II; Blue Sky, Inc.; Dan-D, Inc; D. Business Management, Inc.; J&D Enterprises, Inc.; Maridan Enterprises, Inc.; Morris Schiff; Pinewald Villa, Inc.; and Ocean- Monmouth Construction, Inc. (the "D'Onofrio defendants"); (2) Commerce Bank, NA ("Commerce Bank"); (3) Paul Dalton ("Dalton"); and (4) Lake Riviera Company. Defendants Donato D'Onofrio, Sr. and Donato D'Onofrio, II have also filed a motion to lift the lis pendens filed by plaintiffs on the property owned by the plaintiff entities. For the reasons stated, each motion to dismiss is granted as to plaintiffs' claims premised on the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. § 1961 et seq. The Court declines to assert supplemental jurisdiction over plaintiffs' remaining state claims. The Court will also grant the motion to lift the lis pendens.

BACKGROUND

The Court will set forth in a condensed form the allegations contained in plaintiffs' 45-page First Amended Complaint. *fn1 Plaintiff Bruce Boyle ("Boyle") and defendant Donato D'Onofrio, Sr. ("D'Onofrio") joined together in 1994 to develop a marina property known as the Forge Landing Marina ("marina") in Brick, New Jersey. (First Am. Compl. "Preliminary Statement"; ¶¶ 25, 28-30.)

Boyle is a contractor and sought an investor to provide financing for the acquisition and financing of the marina. (Id. ¶¶ 26, 30.) D'Onofrio agreed to loan $125,000 to the project and to obtain a permanent financing commitment within 150 days of the signing of an agreement between Boyle and D'Onofrio. (Id. ¶ 36.) D'Onofrio allegedly stated that he was a member of the Board of Trustees of Commerce Bank and would consequently be able to obtain additional financing. (Id. ¶ 33.) Plaintiffs allege that D'Onofrio claimed that Commerce Bank insisted that D'Onofrio own the controlling interest in the project before the bank would provide a loan. (Id. ¶ 34.)

The parties' rights and obligations were set forth in an agreement dated May 4, 1994. (Id. ¶ 40.) The initial closing on the marina property in May 1994 created three corporations, (id. ¶¶ 40, 44): (1) plaintiff Forge Landing Marina, Inc. is the operating entity for the marina, (id. ¶ 25); (2) plaintiff BDB Enterprises, LLC owns the 9.4 acre marina site; and (3) plaintiff BMD Associates, LLC owns a 35 acre parcel adjacent to the marina and a non-contiguous 4 acre parcel on Jordan Avenue in Brick (the "Jordan Avenue property"). (Id. ¶ 25.)

Plaintiffs allege that D'Onofrio tried to take over Boyle's interest in the marina pursuant to a provision in the May 4, 1994 agreement. *fn2 (See First Am. Compl. ¶ 36 (alleging that D'Onofrio believed that by failing to obtain financing in a prompt manner, "he could use his partnership with Commerce Bank to declare a default on the financing and thereby shut out Boyle's ownership interest."); id. ¶ 39 ("D'Onofrio purposely controlled the funding because he was using the original promised $125,000 and the Bank's draws for other uses in order to wipe out Boyle."); id. ¶ 43 ("It became immediately apparent that [D'Onofrio's] real interests involved slowing the procurement of financing and consequently the construction to ultimately squeeze Boyle out.").) There is no allegation that D'Onofrio's alleged plan succeeded.

D'Onofrio terminated Boyle as a Manager of Operations at the marina on September 15, 1995 and allegedly tried to have Boyle removed from the property. (Id. ¶¶ 56-57.) D'Onofrio then filed an order to show cause in state court. (Id. ¶ 57.) The ensuing litigation resulted in an agreement on November 12, 1995 to resolve the issue of marina operations by, inter alia, agreeing that the marina would be operated on a day-to- day basis by a designee agreed to by both Boyle and D'Onofrio. (Id. at 58.)

Plaintiffs allege that D'Onofrio never obtained permanent construction financing. (Id. ¶ 48.) Boyle therefore on April 20, 1995 declared D'Onofrio in default of the May 4, 1994 agreement. (Id. ¶ 49.) Boyle then sought to buy out D'Onofrio's interests in the marina. *fn3 Boyle located a private investment partnership known as Dimeling, Schreiber & Park of Philadelphia ("DS&P") that was interested in the marina. (Id. ¶ 60.) DS&P allegedly provided Boyle with a letter of intent to purchase D'Onofrio's interest for $850,000 contingent on entering a binding legal agreement and obtaining financial statements. (Id.)

Plaintiffs allege that the deal with DS&P fell through because D'Onofrio failed to provide the desired financial information. (Id.) Plaintiffs also allege that D'Onofrio's plan was to frustrate any attempted buyout of his interests by, inter alia, (1) asking that his attorneys' fees be paid, (id. ¶ 69), and (2) demanding a statement from Boyle that D'Onofrio's legal and professional fees be made a liability of the enterprise if the transaction did not occur, (id. ¶ 74). D'Onofrio's attorneys also allegedly stated on December 5, 1996 that the deal could not proceed because D'Onofrio had just discovered the existence of tax sale certificates against the property. (Id. ¶ 76.) Plaintiffs allege that D'Onofrio knew of the certificates as of August 31, 1995. (Id.)

D'Onofrio also allegedly gave Boyle a document "which was a summary of loans and exchange accounts of moneys advanced by D'Onofrio and his associated companies to the marina project." (Id. ¶ 78.) Plaintiffs allege that the statement included "alleged monies paid by and/or to defendants Paul Dalton, Mary D'Onofrio, Blue Sky, Inc., Dan-D, Inc., D. Business Management, Inc.; J&D Enterprises, Inc., Maridan Enterprises, Inc., Morris Schiff, Inc.; Pinewald Villa, Inc.; Frank Mandia, Mandia- Coast, Inc. & Mark Dalton." Plaintiffs state that the accounts represent D'Onofrio's self-dealing and involve a series of dubious transactions whereby D'Onofrio and the other defendants defrauded plaintiffs. (Id.)

Commerce Bank allegedly requested that D'Onofrio provide financial information about the marina before allowing a proposal by DS&P regarding the marina financing to proceed to the bank's loan committee. (Id. ΒΆ 90.) Plaintiffs allege that D'Onofrio transmitted to Commerce Bank in October 1997 certain financial statements that were "nonsensical, inaccurate, suspect, incomplete, inconsistent, ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.