Front Row Motorsports, Inc. v. DiSeveria [2024]

Front Row Motorsports, Inc. v. DiSeveria
No. 3:22-cv-00138-SCR, slip op. (W.D.N.C. Sept. 12, 2024) [USA]

Type of Lawsuit: Approving letter of credit to serve as supersedeas.

Topics: Appeal; Breach of Contract; Indemnification; Letter of Credit; Stay of Execution; Supersedeas Bond

Parties:
• Plaintiff – Front Row Motorsports, Inc.
• Second Plaintiff – Robert A. Jenkins
• Defendant – Michael Diseveria
• Second Defendant – Ronald C. Devine
• Issuer – WesBanco Bank

Underlying Transaction: Indemnification of lien claims on NASCAR franchise charter.

LC: USD 3.4 million; silent as to practice rules and choice of law.

Decision: The US District Court for the Western District of North Carolina, J., granted supplemental motion for approval of appeal bond and dismissed Defendants’ original motion as moot.

Rationale: Where proposed letter of credit constitutes sufficient security to protect plaintiff during pendency of appeal, defendant may obtain automatic stay of execution under procedural rules regarding supersedeas bonds.