Articles Posted in Contracts

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The Supreme Court affirmed the circuit court's order granting summary judgment to LML Properties, LLC on Hanover Resources, LLC's complaint alleging breach of contract against LML for enforcement of $4.7 million in mechanic's liens on the basis that the mechanic's liens were invalid under West Virginia law, holding that the mechanic's liens at issue were invalid. The liens in this case were filed under W. Va. Code 38-2-31 and -32 by Hanover, a provider of coal mining services, against the fee interest of a mineral estate partially owned by LML. The circuit court concluded that the liens were invalid and granted summary judgment to LML. The Supreme Court affirmed after considering the undisputed facts in the form of stipulations by the parties regarding their contractual responsibilities along with the framework in the mechanic's lien statutes and relevant case law, holding that the circuit court did not err in granting LML's motion for summary judgment. View "Hanover Resources, LLC v. LML Properties, LLC" on Justia Law

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The Supreme Court denied the request for extraordinary relief sought by Vanderra Resources, LLC asserting that the circuit court's denial of Vanderra's motion for summary judgment on Chesapeake Appalachia, LLC's claims against it was clearly erroneous and an abuse of the court's power, holding that because the denial of summary judgment was an interlocutory ruling, there was no error. Vanderra was a reclamation contractor hired by Chesapeake to implement a stabilization plan at one of Chesapeake's shale drill pads. While Verderra implemented the plan, earth movement and landslides occurred. Chesapeake filed suit against Vanderra to recover its costs incurred in repairing the collapsed drill pad. Vanderra filed a motion for summary judgment, which the circuit court denied on the grounds that genuine issues of material fact existed. Vanderra then brought this action for a writ of prohibition, or alternatively mandamus, arguing that the circuit court lacked any factual or evidentiary findings. The Supreme Court denied Vanderra's request, holding that the circuit court did not exceed its legitimate powers when it denied summary judgment. View "State ex rel. Vanderra Resources, LLC v. Honorable David W. Hummel" on Justia Law

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The Supreme Court affirmed the decision of the circuit court denying Petitioner's motion to set aside a default judgment entered against him, holding that the circuit court did not abuse its discretion in denying Petitioner's motion to set aside the default judgment. Respondent filed a breach of contract claim against Petitioner for allegedly failing to pay insurance premiums. Petitioner did not respond to Respondent's properly served complaint, and Respondent obtained a default judgment against him. Nearly sixteen months later, Petitioner filed a motion to set aside the default judgment on the grounds that he was not a proper party to the action. The circuit court denied the motion as untimely because the grounds on which Petitioner sought to have the judgment set aside were subject to a one-year limitation period under W. Va. Rule 60(b). The Supreme Court affirmed, holding (1) Petitioner's grounds to set aside the judgment were untimely under Rule 60(b); and (2) while void judgments are not subject to the strict time frame set forth in Rule 60(b), the circuit court did not lack personal jurisdiction over Petitioner so as to render the judgment void. View "Amoruso v. Commerce & Industry Insurance Co." on Justia Law

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The Supreme Court affirmed the judgment of the circuit court granting summary judgment against Petitioners in their action against Respondents based upon a coal lease agreement between the parties and granting summary judgment against Respondents’ counterclaim, holding that there was no error to the dismissal of the parties’ respective claims. In granting summary judgment against Petitioners, the circuit court concluded that Respondents had no obligation to diligently mine coal and did not have to make royalty payments based upon comparable sales by other mining companies. The circuit court also granted summary judgment against Respondents’ counterclaim seeking damages for Petitioners’ refusal to consent to an assignment or sublease of the coal lease and for alleged tortious interference with an asset agreement Respondents had with another company. The Supreme Court affirmed, holding that there was no error in the circuit court’s judgment. View "Bruce McDonald Holding Co. v. Addington Inc." on Justia Law

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The Supreme Court reversed the order of the circuit court certifying as final the prior orders that granted summary judgment to Respondents in this civil action arising out of the modification of covenants pertaining to a residential subdivision developed by RJM Holdings, LLC, holding that the genuine issues of material fact precluded summary judgment. On appeal, Petitioners argued that the circuit court erred by granting summary judgment because genuine issues of material fact existed regarding whether Respondents were engaged in a joint venture with RJM to develop the subdivision and whether the corporate veils of the respondent businesses should be pierced to hold certain individuals personally liable. The Supreme Court agreed and reversed, holding that genuine issues of material fact existed with respect to the conduct of Respondents and the use of the various business entities to develop the subdivision. View "Dailey v. RJM Holdings, LLC" on Justia Law

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The Supreme Court reversed the order of the circuit court dismissing Petitioners’ civil action as a sanction for alleged discovery violations, holding that the circuit court abused its discretion by imposing the sanction of dismissal. Petitioners bought this civil action against Respondent alleging unfair and deceptive acts, breach of express and implied warranties, breach of contract, and other causes of action. Respondent eventually filed a second motion to dismiss the civil action as a sanction for alleged discovery violations. The circuit court identified ten instances of alleged wrongful conduct by Petitioners and granted Respondent’s motion to dismiss. The Supreme Court reversed, holding that, even assuming that there was a discovery violation, the circuit court’s imposition of the extreme sanction of dismissal was an abuse of discretion. View "Smith v. Gebhardt" on Justia Law

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In this action brought by Plaintiff alleging a deliberate intent claim and violations of the West Virginia Human Rights Act (Act) the Supreme Court reversed the circuit court’s rulings and remanded the case for entry of an order dismissing the action and compelling arbitration. Plaintiff instituted this civil action against Hampden Coal, LLC, his employer, and his supervisor alleging a deliberate intent claim related to his workplace injury and two violations of the Act arising from his demotion. Defendants filed a motion to dismiss or, in the alternative, to compel arbitration pursuant to an arbitration agreement Appellant signed as a condition of his employment. The circuit court denied Defendants’ motion to dismiss and refused to compel arbitration, concluding, among other things, that the arbitration agreement was invalid because it lacked consideration and was both substantively and procedurally unconscionable. The Supreme Court reversed, holding (1) more stringent or different standards do not apply to consideration of arbitration agreements in the employment context; (2) the parties’ agreement to arbitrate their disputes served as consideration for the agreement; (3) the agreement was neither substantively or procedurally unconscionable; (4) Plaintiff’s claims did not fall outside the scope of the agreement; and (5) the circuit court erred in finding that the agreement was an employment contract. View "Hampden Coal, LLC v. Varney" on Justia Law

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At issue was whether the City of Fairmont, which entered into a lease purchase agreement for equipment with Comvest, Ltd., may assert claims and defenses against Blue Ridge Bank - to whom Comvest assigned its interest in the lease purchase agreement, including its right to the City’s monthly payments - based on Comvest’s conversion of funds designated for the purchase of the equipment. The Supreme Court held (1) the Bank took its assignment subject to the City’s claims and defenses arising from Comvest’s breach of the lease purchase agreement; and (2) therefore, the City may assert claims and defenses against the Bank based on Comvest’s conversion. View "Blue Ridge Bank, Inc. v. City of Fairmont" on Justia Law

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Petitioners, former shareholders of Kay Company and Kay Co., LLC, appealed orders entered by the circuit court in which summary judgment was granted to Respondent, Petitioners’ former legal counsel, in connection with claims Petitioners filed against Respondent. Petitioners challenged the circuit court’s (1) ruling that a settlement reached by all but one of Petitioners with the IRS prevented them from establishing causation and damages on any of their claims, (2) finding that there were no factual issues in need of resolution, and (3) ruling that the lack of settlement with the IRS precluded Jennie Graham, executrix of the estate of James Graham, prevented her from asserting claims against Respondent. The Supreme Court held that the circuit court (1) erred in reasoning that the settlement with the IRS prohibited Petitioners from going forward on all of their claims; (2) erred in ruling that the lack of a settlement with the IRS precluded Graham from asserting any claims against Respondent; and (3) did not err in its rulings with regard to detrimental reliance and joint venture. The Supreme Court remanded this matter to the circuit court to permit Petitioners to proceed on their claims of legal malpractice, negligent misrepresentation, and fraud. View "Kay v. McGuireWoods, LLP" on Justia Law

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In this ancillary statutory proceeding in aid of collection on a judgment, the Supreme Court affirmed the ruling of the circuit court awarding summary judgment in favor of Respondents. Respondents were previously awarded a judgment against Employer in a class action alleging violations of the West Virginia Wage Payment and Collection Act. Respondents later caused a suggestion a personal property to be served upon Petitioner in which they sought amounts, obligations, and things of value owed to Employer. Respondents then sought to make Petitioner liable for Respondents’ judgment. The circuit court granted, in part, the motion to make Petitioner liable for Respondents’ judgment and then directed Petitioner to pay Respondents the amount of their judgment against Employer. The Supreme Court affirmed, holding that summary judgment was proper where Petitioner’s contractual obligations to Employer were subject to Respondents’ suggestion and where West Virginia law provides for suggestion upon unmatured debts. View "IPacesetters, LLC v. Douglas" on Justia Law

Posted in: Class Action, Contracts