Danny Webb Construction Company, Inc. and Danny Webb v. North Hills Group, Inc.

West Virginia Supreme Court·Decided March 21, 2025·No. 22-789·Published

Opinion

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA

January 2025 Term

FILED

_____________ March 21, 2025 released at 3:00 p.m.

C. CASEY FORBES, CLERK

No. 22-789 SUPREME COURT OF APPEALS _____________ OF WEST VIRGINIA

DANNY WEBB AND

DANNY WEBB CONSTRUCTION COMPANY, INC., Defendants Below, Petitioners,

V.

NORTH HILLS GROUP, INC.,

Plaintiff Below, Respondent.

Appeal from the Circuit Court of Fayette County The Honorable Paul M. Blake, Jr., Judge Civil Action No. 19-C-2

REVERSED AND REMANDED

Submitted: January 15, 2025 Filed: March 21, 2025

J. Zak Ritchie, Esq. Kevin W. Thompson, Esq. Michael B. Hissam, Esq. David R. Barney, Jr., Esq. Andrew C. Robey, Esq. Thompson Barney Hissam Forman Donovan Ritchie PLLC Charleston, West Virginia Charleston, West Virginia Attorneys for the Respondent Attorneys for the Petitioners

JUSTICE BUNN delivered the Opinion of the Court.

CHIEF JUSTICE WOOTON, deeming himself disqualified, did not participate in the decision of this case.

JUDGE MICHAEL D. LORENSEN sitting by temporary assignment.

SYLLABUS BY THE COURT

1. “One may appeal to this Court a circuit court’s order granting a new trial and one may appeal such an order without waiting for the new trial to be had.” Syllabus point 6, in part, Foster v. Sakhai, 210 W. Va. 716, 559 S.E.2d 53 (2001).

2. “The Intermediate Court of Appeals of West Virginia generally does not have appellate jurisdiction over interlocutory appeals. W. Va. Code § 51-11-4(d)(8).” Syllabus point 6, Aaron W. v. Evelyn W., 251 W. Va. 1, 909 S.E.2d 36 (2024).

3. Pursuant to West Virginia Code § 51-11-4(d)(8), the Intermediate Court of Appeals of West Virginia does not have jurisdiction over an interlocutory appeal of a circuit court order granting a new trial.

4. “It is the peculiar and exclusive province of the jury to weigh the evidence and resolve questions of fact when the testimony of witnesses is conflicting or when the facts, though undisputed, are such that reasonable men may draw different conclusions from them.” Syllabus point 2, Koontz v. Long, 181 W. Va. 800, 384 S.E.2d 837 (1989) (per curiam) (quoting Syllabus point 1, Evans v. Farmer, 148 W. Va. 142, 133 S.E.2d 710 (1963)).

i

5. “Although the ruling of a trial court in granting or denying a motion for a new trial is entitled to great respect and weight, the trial court’s ruling will be reversed on appeal when it is clear that the trial court has acted under some misapprehension of the law or the evidence.” Syllabus point 1, Foster v. Sakhai, 210 W. Va. 716, 559 S.E.2d 53 (2001) (quoting Syllabus point 4, Sanders v. Georgia-Pacific Corp., 159 W. Va. 621, 225 S.E.2d 218 (1976)).

6. “As a species of quasi contract relief, unjust enrichment does not exist to provide an alternative means of recovery for breach of contract, nor does it exist to reduce contract disputes to a question of whether one party benefitted from the other party’s performance.” Syllabus point 3, Gulfport Energy Corp. v. Harbert Private Equity Partners, LP, 244 W. Va. 154, 851 S.E.2d 817 (2020).

7. “The existence of a valid and enforceable written contract governing a particular subject matter ordinarily precludes recovery in quasi contract for events arising out of the same subject matter.” Syllabus point 2, Gulfport Energy Corp. v. Harbert Private Equity Partners, LP, 244 W. Va. 154, 851 S.E.2d 817 (2020).

8. “Where the trial court improperly sets aside a verdict of a jury, such verdict will be reinstated by this Court and judgment rendered thereon.” Syllabus point 1,

ii

Maynard v. Adkins, 193 W. Va. 456, 457 S.E.2d 133 (1995) (quoting Syllabus point 4, Bronson v. Riffe, 148 W. Va. 362, 135 S.E.2d 244 (1964)).

iii

BUNN, Justice:

Petitioners Danny Webb (“Mr. Webb”)1 and Danny Webb Construction Company, Inc. (“Webb Construction” or “Webb”) (collectively “Webb petitioners”), appeal a Fayette County Circuit Court order that set aside a jury verdict in Webb petitioners’ favor and awarded respondent, North Hills Group, Inc. (“North Hills”),2 a new trial. Webb petitioners argue that the circuit court erred because sufficient evidence supported the verdict as to North Hills’ tort claims, and because the parties’ written lease agreement precludes North Hills’ claim for unjust enrichment.3 We agree and therefore reverse the circuit court’s order and remand this case with instructions to reinstate the jury’s verdict in favor of Webb petitioners and to enter judgment in accordance with the verdict.

1

According to Webb’s brief, Mr. Webb owned Webb Construction during the timeframe relevant to this case but sold his ownership interest in May 2018. He continues to defend the company pursuant to an indemnity agreement.

2

The president of North Hills, Patricia Hamilton, testified at trial that North Hills is a small West Virginia corporation formed by five individuals in the 1970s to promote economic and land development in Fayette County, West Virginia. The current North Hills’ shareholders are heirs of the five original founders. See also Webb v. N. Hills Grp., Inc. (Webb-I), No. 16-0640, 2017 WL 2493768, at *1 (W. Va. June 9, 2017) (memorandum decision).

3

Webb petitioners additionally contend that the circuit court erred by granting a new trial because res judicata, the statute of limitations, and the gist of the action doctrine each bar North Hills’ lawsuit, and because the parties’ written lease agreement precludes North Hills’ claim for breach of fiduciary duty. We find Webb petitioners’ sufficiency of the evidence and unjust enrichment assignments of error are dispositive and do not address the remaining assignments of error.

I.

FACTUAL AND PROCEDURAL HISTORY In 2001, North Hills conveyed a 4.76 acre parcel of land in Fayette County, West Virginia (“the Webb parcel”), to Webb Construction, including all right, title, and interest to and in an unplugged and unproductive gas well located on the Webb parcel, Well 460. Webb obtained an underground injection control (“UIC”) permit from the West Virginia Department of Environmental Protection (“DEP”), converted Well 460 into an UIC well,4 and used it to store and dispose of wastewater generated from off-site oil and gas hydraulic fracturing operations (“fracking waste”).5 Webb Construction also placed aboveground storage tanks on the parcel.

4

Underground injection control wells, also referred to as UIC wells, are “regulated through the Underground Injection Control Program” administered by the West Virginia Department of Environmental Protection, Division of Water Resources. Webb-I, 2017 WL 2493768, at *2 n.3. See also W. Va. C.S.R. §§ 47-13-1 to -14 (detailing criteria and standards applicable to the West Virginia Underground Injection Control Program).

5

“Fracking, or hydrofracking [alternate terms for hydraulic fracturing], is a method of stimulating production of a well by pumping [into it] large quantities of water and fracturing chemicals and fluids at high volume and pressure.” Webb at *3 n.4 (citing 8 Howard R. Williams & Charles J. Meyers, Oil and Gas Law 406 (2016)). “[A] portion of the fluid flows back up the wellbore to the surface . . . .” Hydraulic Fracturing Law & Practice § 1.02 (LexisNexis Matthew Bender, 2023 ed.). “The flowback water and, once the well starts producing, the produced water . . . can be reused in multiple operations . . . .” Id. § 2.06[1][b]. “[A]fter multiple uses, [the wastewater] can be disposed of through disposal wells.” Id.

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Danny Webb Construction Company, Inc. and Danny Webb v. North Hills Group, Inc., (W. Va. 2025).

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