Dixon v. American Industrial Leasing Co.

253 S.E.2d 150, 162 W. Va. 832, 1979 W. Va. LEXIS 355
CourtWest Virginia Supreme Court
DecidedMarch 27, 1979
Docket13872
StatusPublished
Cited by33 cases

This text of 253 S.E.2d 150 (Dixon v. American Industrial Leasing Co.) 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
Dixon v. American Industrial Leasing Co., 253 S.E.2d 150, 162 W. Va. 832, 1979 W. Va. LEXIS 355 (W. Va. 1979).

Opinion

Caplan, Chief Justice:

This is an appeal from a final order of the Circuit Court of Monongalia County wherein the court overruled a motion of the appellant, American Industrial Leasing Company (hereinafter, American Leasing), to set aside the verdict and grant it a new trial. We reverse and enter judgment here in favor of American Leasing.

The action involved a student dormitory, known as Campanile, situated on the campus of West Virginia University, which was under lease by American Leasing to Beechurst Avenue Joint Venture (hereinafter, Bee-churst) at a stated annual rental.

In their complaint, William E. Dixon, Harry Meeks, John Junkins and Robert H. Law, partners, trading and doing business as Beechurst Avenue Joint Venture, sought damages from American Leasing and the West Virginia University Board of Governors (hereinafter, Board of Governors) for an alleged conspiracy which they asserted resulted from a breach of contract be *834 tween Beechurst and the Board of Governors. It was contended by Beechurst that the Board of Governors and American Leasing were guilty of collusion amounting to a conspiracy to wrongfully cause the termination of the aforesaid lease, thereby allowing the sale of the student dormitory to the University free of the Bee-churst lease.

American Leasing answered and filed a counterclaim to the complaint. In its counterclaim, American Leasing sought to recover the amount allegedly due for delinquent rent and for taxes. In a separate trial on the counterclaim, the jury, upon instruction by the court, returned a verdict for American Leasing in the sum of $80,956.45. Judgment was entered on that verdict and it became final.

As heretofore noted, the instant case involves the conspiracy issue and the damages allegedly resulting therefrom. The jury found for Beechurst in the amount of $100,000.00, after which the refusal of the aforesaid motion by American Leasing prompted this appeal. The appellant assigns seven errors for reversal of the judgment. We believe that one assignment is dispositive of this case. Our decision to reverse and to enter judgment here is based upon our conclusion that no conspiracy was proved and that the trial court should have directed verdict for American Leasing at the conclusion of the evidence.

As succinctly stated in 15A C.J.S., Conspiracy, Sec. 1 (1), a civil conspiracy is a combination of two or more persons by concerted action to accomplish an unlawful purpose or to accomplish some purpose, not in itself unlawful, by unlawful means. The cause of action is not created by the conspiracy but by the wrongful acts done by the defendants to the injury of the plaintiff. 16 Am. Jur. 2d, Conspiracy, Sec. 44.

Upon examination of the record, we perceive no competent evidence of conspiracy which would fit the foregoing definition. Even though the Board of Governors and American Leasing had discussed the sale of the subject *835 dormitory and had even carried on some negotiations relative thereto, as hereinafter noted, their actions were not designed to accomplish an unlawful purpose, nor were the means employed by them unlawful. Consequently, there were no wrongful acts done by the defendants to the injury of the plaintiffs.

The loss claimed by the plaintiffs remained unproved. While their venture proved to be a failure and resulted in a loss of expected profit, the evidence revealed that such loss occurred from the beginning and was not caused by any action of American Leasing; the remainder of the lease, upon which the plaintiffs were attempting to collect damages, was of no value. Plainly stated, Beechurst was engaged in a losing venture, there being no evidence that it could recover from the adverse financial plight into which it had fallen.

As stated earlier in this opinion, actionable civil conspiracy contemplates a concerted action by two or more persons to accomplish an unlawful purpose or to accomplish a lawful purpose by some unlawful means. Where is the unlawful purpose or the unlawful means in this case? We see none.

It was judicially determined that Beechurst was delinquent in its rental payments to American Leasing. That was settled in the prosecution of American Leasing’s counterclaim, wherein it was determined that Beechurst was delinquent in the amount of $80,956.45. The dismissal of the untimely appeal by Beechurst is further evidence of such determination. Dixon v. American Industrial Leasing, _ W. Va. _, 205 S.E.2d 4 (1974). Under the lease the lessor, American Leasing, had an express right to cancel and sell the property. There was no wrongful act to support the alleged conspiracy if the act complained of, termination of the lease, was the result of an exercise of an absolute right.

Beechurst had a right to their tenancy and continued possession of the dormitory so long as it fulfilled its obligations under the lease. Here, Beechurst did not per *836 form the covenants of the lease and lost its right to tenancy and continued possession.

In Bliss v. Southern Pacific Company, 212 Or. 634, 321 P. 2d 324 (1958), an analogous factual situation, the court said:

Incidental damages resulting from the exercise of an absolute right is not actionable, nor is it made so by augmenting the complaint with further allegations of fraud.
Therefore, even if the railroad company had evil motives for its action, they become unimportant as long as it conformed its acts of termination to the rights conferred upon it by the agreement ... The pleading revealing as it does an unquestioned right to terminate the lease, the action taken by the railroad is not tortious. It follows then that in the absence of such wrongful action on the part of the Southern Pacific, there is no foundation upon which a charge of conspiracy can rest.

Summarizing, the Bliss court further said:

If, as the pleading indicates, the offending action from whence the instant matter is derived was the termination of the lease, then it follows ... that there can be no tort to support the alleged conspiracy if the act of the railroad company was the result of an exercise of an absolute contractual right ...

In the instant case the termination of the lease by American Leasing was the result of an exercise of an absolute contractual right. The lease, in effect, provided that if Beechurst failed in its obligation to pay the prescribed rental, American Leasing could terminate the lease. It came to pass that Beechurst failed in that obligation and American Leasing, exercising an absolute contractual right, terminated the lease. Having acted pursuant to such right, it was free to deal with whomever it pleased. It was not obligated to. consult Beechurst as to whom it might sell the property or for how much.

*837

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Bluebook (online)
253 S.E.2d 150, 162 W. Va. 832, 1979 W. Va. LEXIS 355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dixon-v-american-industrial-leasing-co-wva-1979.