Justia West Virginia Supreme Court of Appeals Opinion Summaries

Articles Posted in Contracts
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The Supreme Court affirmed the order of the circuit court granting summary judgment to Ruth Ann Pinson and dismissing Denise Johnson's claim that Ruth's husband, Mark Pinson, violated West Virginia's Uniform Fraudulent Transfers Act's (UFTA), W. Va. Code 40-1A-1 to -15, prohibition against fraudulent transfers, holding that Plaintiff did not present evidence demonstrating the existence of a material fact regarding Mark's status as her debtor within the meaning of the UFTA.Johnson asserted that Mark conveyed real property to Ruth with the intent to hinder, delay, or defraud Johnson's attempt to collect on a judgment assigned to her by a third party. The circuit court found that Ruth was entitled to summary judgment as a matter of law. The Supreme Court affirmed, holding that the circuit court did not misinterpret the UFTA or err in denying Johnson's motion to amend the complaint to add Mark as a defendant. View "Johnson v. Pinson" on Justia Law

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The Supreme Court affirmed the circuit court's grant of partial summary judgment finding that Gary Dobbs retained his right to purchase pasture land under a 1976 option agreement and that Terry and Catherine Dobbs triggered that right to purchase when they signed a 2007 option agreement, holding that the circuit court did not err.After Lyle Hobbs died, the land he owned passed to his wife and two sons, Terry and Gary. The trio conveyed a small parcel to the sons for a slaughterhouse. The remaining land, including a pasture, was conveyed to Terry and his wife, Catherine. Gary reserved the right to buy back the pasture land if Terry died or if Terry and Catherine decided to sell or assign the pasture land. Gary subsequently purchased the slaughterhouse property at auction. Decades later, Terry and Catherine entered into an option agreement with McElroy Coal Company to either sell the pasture land or provide McElroy Coal a waiver of liability for the company's mining operations. McElroy Coal chose a waiver and paid Terry and Catherine. Thereafter, Gary sued McElroy Coal and Terry and Catherine, alleging that they breached the 1976 option agreement. The circuit court granted summary judgment for Gary. The Supreme Court affirmed, holding that the circuit court did not err. View "McElroy Coal Co. v. Dobbs" on Justia Law

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The Supreme Court affirmed the circuit court's order granting Antero Resources Corporation partial summary judgment on its claim for declaratory judgment, holding that the court did not err in concluding that the Antero top lease took priority over the EQT Production Company base lease covering the same property.Larry and Linda Lemasters, who owned the oil and gas underlying a tract of land, entered into an oil and gas lease (the base lease) with an LLC that later assigned the lease to EQT. The Lemasters subsequently entered into an oil and gas lease with Antero (the top lease). The lease was made effective immediately upon expiration of the primary term of the base lease. The Lemasters and EQT (together, Defendants) subsequently entered into a base lease amendment agreeing to extend the primary term of the base lease. Antero filed a complaint against Defendants asserting claims for, inter alia, breach of contract and declaratory judgment. The circuit court awarded summary judgment for Antero on its declaratory judgment claim, determining that the base lease and its amendment were subject to the Antero top lease. The Supreme Court affirmed, holding that the court did not err in declaring that the top lease was the valid and existing oil and gas lease covering the subject property. View "EQT Production Co. v. Antero Resources Corp." on Justia Law

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The Supreme Court affirmed the circuit court's dismissal of West Virginia Counties Group Self-Insurance Risk Pool, Inc.'s (WVCoRP) claims against Great Cacapon Volunteer Fire Department, Inc. (VFD), holding that the circuit court did not err.When a fire destroyed the building where VFD was housed, the owner of the building, the Morgan County Commission, was reimbursed for the loss by WVCoRP. Seeking to recover the funds it expended, WVCoRP sued the VFD and other parties for negligence. In the process, WVCoRP invoked a contractual right to subrogation. The circuit court determined that the claims against VFD were barred by W. Va. Code 29-12A-13(c), which prohibits claims against political subdivisions made under a right of subrogation. The Supreme Court affirmed, holding (1) WVCoRP's claims spring from its coverage contract with the Commission and fall within any plain meaning of subrogation; and (2) section 29-12A-13(c) is not an insurance law of the State from which WVCoRP is exempt. View "West Virginia Counties Group v. Great Cacapon Volunteer Fire Department, Inc." on Justia Law

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The Supreme Court granted a writ of prohibition prohibiting the circuit court from enforcing its sua sponte order dismissing count three of Respondents' complaint and finding that West Virginia law applied to all of Respondents' bad faith claims but declined to extend the writ to find that Georgia law applies to the entire dispute, holding that a writ of prohibition was not the proper avenue for such relief.After Petitioners denied insurance coverage for certain damages Petitioners filed a declaratory judgment action in the State of Delaware to determine their rights and responsibilities under the relevant insurance policies. Respondents subsequently filed the underlying complaint asserting five separate counts, including breach of contract and bad faith under Georgia law (count three). Petitioners sought to dismiss the West Virginia proceeding. The circuit court denied the motion but, sua sponte, dismissed count three. Petitioners then filed the instant petition. The Supreme Court granted the writ as moulded, holding (1) the circuit court exceeded its lawful authority when it sua sponte dismissed count three of the complaint and held that West Virginia law applied to Respondents' bad faith claims; and (2) this Court declines Petitioners' invitation to find that the Georgia choice-of-law provisions in the policies govern this action. View "State ex rel. National Union Fire Insurance Co. of Pittsburg, Pennsylvania v. Hummel" on Justia Law

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The Supreme Court affirmed the decision of the circuit court granting a preliminary injunction, holding that the court did not err when it found Plaintiff had a likelihood of succeeding on the merits of its claims and was likely to suffer irreparable harm in the absence of action by the court.Pachira Energy LLC entered into an agreement with Northeast Natural Energy LLC establishing the Blacksville Area of Mutual Interest (Blacksville AMI) and setting forth guidelines for exploiting oil and gas leases and other mineral interests. Pachira later filed a complaint against Northeast Natural Energy LLC alleging that Northeast was breaching various agreements and was abusing its power to benefit itself, to the detriment of Pachira. Among other requests for relief, Pachira sought a permanent injunction stop Northeast's use of a jointly-owned water system within the Blacksville AMI to support Northeast's drilling operations outside the Blacksville AMI and to sell water to third parties outside the Blacksville AMI. The circuit court granted Pachira's motion for a preliminary injunction. The Supreme Court affirmed, holding that it was fair for the circuit court to preserve the status quo until the parties' resolve the merits of their dispute and that there was no error in the preliminary injunction order. View "Northeast Natural Energy LLC v. Pachira Energy LLC" on Justia Law

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In this action stemming from the auction of a plot of land, the Supreme Court affirmed the circuit court's grant of summary judgment to Plaintiff, holding that the circuit court properly construed the law of auctions and contracts.Plaintiff won an auction of certain property with a high bid. Plaintiff subsequently brought suit alleging, among other things, breach of contract because Defendant had permitted an unqualified bidder to bid on the property. The circuit court granted summary judgment for Plaintiff. The Supreme Court affirmed, holding (1) no genuine issue of material fact existed to be tried regarding the formation of the contract between Plaintiff and Defendant and Defendant's failure to comply with the terms and conditions of that contract; and (2) the circuit court properly granted summary judgment in favor of Plaintiff. View "Alex Lyon & Son v. Leach" on Justia Law

Posted in: Contracts
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In this case involving an order compelling Plaintiff to arbitrate her dispute with an investment firm the Supreme Court reversed the circuit court's order to the extent that it included language that invaded the province of the arbitrator but otherwise affirmed the order dismissing Plaintiff's suit and compelling her to arbitrate.Plaintiff's deceased husband created two accounts with an investment firm, and the documents he signed required the arbitration of any account disputes. After the investment company paid the proceeds of both accounts to two other individuals, Plaintiff brought this suit, asserting her right to the proceeds of the accounts. The circuit court concluded that Plaintiff was required to comply with the arbitration agreements even though she was a nonsignatory. The Supreme Court affirmed in part and reversed in part, holding (1) the circuit court properly determined that Plaintiff was required to arbitrate her claims to the proceeds of both accounts; but (2) the circuit court erred in including improper language in its order that exceeded the court's authority. View "Bayles v. Evans" on Justia Law

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The Supreme Court affirmed the order of the circuit court denying Petitioners' motion to compel arbitration of Respondents' claims against them, holding that a merger clause in the retail sales installment contract (RISC) between the parties served to supplant the arbitration agreement contained in the previously-executed credit application.Respondents purchased a new truck from Petitioners. Respondents first executed a credit application that contained an arbitration provision. Thereafter, the parties executed the RSIC, which did not contain an arbitration clause. After Respondents defaulted on their loan Petitioners began collection efforts. Respondents filed this complaint asserting that Petitioners harassed them by phone even after being advised they were represented by counsel. Petitioners moved to compel arbitration based on the arbitration provision contained in the credit application. The circuit court denied the motion. The Supreme Court affirmed, holding that the arbitration provisions in the credit application did not survive the merger clause of the RISC, thereby nullifying Respondents' obligation to arbitrate their claims against Petitioners. View "TD Auto Finance LLC v. Reynolds" on Justia Law

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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