Dan Ryan Builders, Inc. v. Frank M. Williams and Diana P. Williams

CourtWest Virginia Supreme Court
DecidedNovember 6, 2020
Docket18-0579
StatusPublished

This text of Dan Ryan Builders, Inc. v. Frank M. Williams and Diana P. Williams (Dan Ryan Builders, Inc. v. Frank M. Williams and Diana P. Williams) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dan Ryan Builders, Inc. v. Frank M. Williams and Diana P. Williams, (W. Va. 2020).

Opinion

STATE OF WEST VIRGINIA SUPREME COURT OF APPEALS

Dan Ryan Builders, Inc., Dan Ryan Builders Realty, Inc., DRB Enterprises, Inc., Monocacy Home Mortgage, LLC, Christopher Rusch, and Crystal Rankin, FILED Defendants Below, Petitioners, November 6, 2020 released at 3:00 p.m. vs.) No. 18-0579 (Harrison County No. 09-C-57-1) EDYTHE NASH GAISER, CLERK SUPREME COURT OF APPEALS OF WEST VIRGINIA

Frank M. Williams, and Diana P. Williams, et al., Plaintiffs Below, Respondents.

MEMORANDUM DECISION

Petitioners Dan Ryan Builders, Inc., Dan Ryan Builders Realty, Inc., DRB Enterprises, Inc., Monocacy Home Mortgage, LLC, Christopher Rusch, and Crystal Rankin, by counsel Avrum Levicoff and Julie Brennan, appeal the May 30, 2018 order of the Circuit Court of Harrison County denying petitioners’ motion to compel arbitration (“renewed motion” or “renewed motion to compel arbitration”). Respondents Frank M. Williams, and Diana P. Williams, et al., by counsel James A. Varner, Sr., Debra Tedeschi Varner, James N. Riley, and Michael J. Romano filed a response in support of the circuit court’s order. On appeal, petitioners argue that the circuit court erred in failing to compel arbitration in this case.

After considering the parties’ written and oral arguments, as well as the appendix record on appeal and the applicable law, this Court finds no substantial question of law and no prejudicial error. For these reasons, a memorandum decision affirming the circuit court’s order is appropriate under Rule 21 of the Rules of Appellate Procedure.

A brief examination of the factual and procedural posture of this case is necessary to understand our resolution of this appeal. The case began more than eleven years ago and arose out of the construction of a residential community known as “Crystal Ridge” located in Bridgeport, West Virginia. See Dan Ryan Builders, Inc. v. Crystal Ridge Dev., Inc., 239 W. Va. 549, 803 S.E.2d 519 (2017) (discussing underlying facts). The land used for the Crystal Ridge development was owned by members of the Robert S. Lang family, including Robert and his brothers (referred to as “the Langs”). 1 On June 30, 2005, the Langs entered into a “Lot Purchase Agreement” with Dan Ryan Builders (“Dan Ryan”) 2 as part of a plan to create 143 single-family house lots. See id.

1 Mr. Lang transferred ownership of the property to a family business, Crystal Ridge Development. See Dan Ryan Builders, 239 W. Va. at 552, 803 S.E.2d at 522. 2 According to respondents, petitioners’

1 at 552, 803 S.E.2d at 522. By August 2006, Dan Ryan purchased its first lots in Crystal Ridge pursuant to the Lot Purchase Agreement, and almost immediately began selling the lots and constructing homes thereon for the purchasers. See id. at 552-53, 803 S.E.2d at 522-23. By March, 2007, fill slope behind certain lots began to move, causing the opening of large fissures in the ground and resultant damages to lots and homes. See id. at 553, 803 S.E.2d at 523.

On February 9, 2009, respondents, who are purchasers of lots and homes in Crystal Ridge, filed a lawsuit against petitioners 3 alleging various tort and property claims due to development- wide soil movement, which caused damage to respondents’ properties.

Almost thirteen months after the original complaint was filed, 4 petitioners filed “Defendants’ Motion to Dismiss Complaint and Compel Arbitration.” The basis for petitioners’

business model was a ‘soup to nuts’ approach with various entities under common ownership controlling the initial development identification, then the real estate agency sales, then the financing, and finally the construction of the home itself. The Petitioners pressured all of the Respondents to use Petitioners’ legal counsel for the purchase and closing of the real estate transaction, which most Respondents did. This business model allowed the Petitioners to control nearly every aspect of the transaction . . . . 3 Respondents have never asserted any claims against the Lang family or Horner Brothers, which was the engineering firm that provided plans for the movement of earth materials necessary to develop Crystal Ridge. See id. at 553, 803 S.E.2d at 523. 4 As an ancillary matter, on December 8, 2009, petitioner Dan Ryan filed a lawsuit against the Langs arising out of the Crystal Ridge development in the United States District Court for the Northern District of West Virginia, alleging causes of action for negligence, breach of contract, and indemnification and contribution. See id. at 553-54, 803 S.E.2d at 523-34. Dan Ryan amended its complaint to remove the indemnification and contribution claims because the district court, applying federal law, found that those claims should have been asserted in the state court action. See id. at 554, 803 S.E.2d 534.

In August, 2012, the federal court conducted a bench trial on Dan Ryan’s remaining claims against the Langs. On September 24, 2013, in a ninety-page decision, the court found that the Langs breached only one of its duties owed to Dan Ryan under one contract and awarded Dan Ryan $175,646.24 in damages plus pre-judgment interest in the amount of $77,615.24. See Dan Ryan Builders, Inc. v. Crystal Ridge Dev., Inc., No. 1:09CV161, 2013 WL 5352844 (N.D.W.Va. Sept. 24, 2013). Dan Ryan appealed and the district court’s decision was affirmed by the United States Court of Appeals for the Fourth Circuit. See Dan Ryan Builders, Inc. v. Crystal Ridge Dev., Inc., 783 F.3d 976, 985 (4th Cir. 2015) (noting “[t]his is a messy case, spanning four years and thousands of pages of trial submissions[,]” and also recognizing that Dan Ryan’s claims in the action were “ambiguously or incorrectly labeled allegations in pursuit of any potential basis for awarding relief. In the case at hand, the district court did a commendable job of sorting through a museum of non-sequiturs to identify the plaintiff’s [Dan Ryan’s] meritorious claims.”).

2 motion was language contained in the standardized form Agreements of Sale (“Sales Agreements”) and an enrollment form of a Limited Warranty Agreement, 5 which were used by petitioners in respondents’ purchase of their respective lots and homes in Crystal Ridge. Specifically, the Sales Agreements contained the following arbitration provision, in part:

19. ARBITRATION. (a) Any dispute arising under or pursuant to this Agreement, or in any way related to the Property and/or with respect to any claims arising by virtue of any representations alleged to have been made by Us, or any agents and/or employees thereof, (with the exception of “Consumer Products” as defined by the Magnuson-Moss Warranty Federal Trade Commission Improvements Act, 15 U.S.C. Section 2301 et seq. and the regulations promulgated thereunder) shall be settled and finally determined by arbitration and not in a court of law, irrespective of whether or not such claim arises prior to or after Settlement hereunder, pursuant to the Construction Industry Arbitration Rules and the Supplementary Procedures for Residential Construction Disputes of the American Arbitration association (“AAA”) then in effect. . . .

Petitioners argued, inter alia, that the relevant arbitration provisions were valid and enforceable, were not contracts of adhesion, and were not unconscionable. In sharp contrast, respondents argued that the Sales Agreements were contracts of adhesion, and the arbitration provision in those agreements was unfair, unconscionable and unenforceable, and lacked neutrality in the selection and composition of the forum/tribunal for dispute resolution.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Prima Paint Corp. v. Flood & Conklin Mfg. Co.
388 U.S. 395 (Supreme Court, 1967)
Credit Acceptance Corp. v. Robert J. and Billye S. Front, etc.
745 S.E.2d 556 (West Virginia Supreme Court, 2013)
Schmehl v. Helton
662 S.E.2d 697 (West Virginia Supreme Court, 2008)
Toler v. Shelton
204 S.E.2d 85 (West Virginia Supreme Court, 1974)
Shaffer v. Acme Limestone Co., Inc.
524 S.E.2d 688 (West Virginia Supreme Court, 1999)
Whitlow v. Bd. of Educ. of Kanawha Cty.
438 S.E.2d 15 (West Virginia Supreme Court, 1993)
Murphy v. Smallridge
468 S.E.2d 167 (West Virginia Supreme Court, 1996)
Powderidge Unit Owners Ass'n v. Highland Properties, Ltd.
474 S.E.2d 872 (West Virginia Supreme Court, 1996)
State Ex Rel. Saylor v. Wilkes
613 S.E.2d 914 (West Virginia Supreme Court, 2005)
Hubbard v. State Farm Indemnity Co.
584 S.E.2d 176 (West Virginia Supreme Court, 2003)
State Ex Rel. AT & T Mobility, LLC v. Wilson
703 S.E.2d 543 (West Virginia Supreme Court, 2010)
Arden J. Curry, II v. W. Va. Consolidated Public Retirement Board
778 S.E.2d 637 (West Virginia Supreme Court, 2015)
Richard Parsons v. Halliburton Energy Services, Inc.
785 S.E.2d 844 (West Virginia Supreme Court, 2016)
State ex rel. Barden & Robeson Corp. v. Hill
539 S.E.2d 106 (West Virginia Supreme Court, 2000)
Dan Ryan Builders, Inc. v. Crystal Ridge Development, Inc.
803 S.E.2d 519 (West Virginia Supreme Court, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Dan Ryan Builders, Inc. v. Frank M. Williams and Diana P. Williams, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dan-ryan-builders-inc-v-frank-m-williams-and-diana-p-williams-wva-2020.