Hull Property Group, LLC, and Charles WV Mall, LLC v. Quarrier St LLC and U.S. Bank National Association, successor by merger to Lasalle Bank National Association, as Trustee for Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-Top28, and C-III Asset Management LLC, f/k/a Centerline Servicing, Inc.

CourtIntermediate Court of Appeals of West Virginia
DecidedMarch 10, 2025
Docket24-ica-67
StatusPublished

This text of Hull Property Group, LLC, and Charles WV Mall, LLC v. Quarrier St LLC and U.S. Bank National Association, successor by merger to Lasalle Bank National Association, as Trustee for Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-Top28, and C-III Asset Management LLC, f/k/a Centerline Servicing, Inc. (Hull Property Group, LLC, and Charles WV Mall, LLC v. Quarrier St LLC and U.S. Bank National Association, successor by merger to Lasalle Bank National Association, as Trustee for Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-Top28, and C-III Asset Management LLC, f/k/a Centerline Servicing, Inc.) is published on Counsel Stack Legal Research, covering Intermediate Court of Appeals of West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hull Property Group, LLC, and Charles WV Mall, LLC v. Quarrier St LLC and U.S. Bank National Association, successor by merger to Lasalle Bank National Association, as Trustee for Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-Top28, and C-III Asset Management LLC, f/k/a Centerline Servicing, Inc., (W. Va. Ct. App. 2025).

Opinion

IN THE INTERMEDIATE COURT OF APPEALS OF WEST VIRGINIA

FILED Spring 2025 Term _____________________________ March 10, 2025 released at 3:00 p.m. No. 24-ICA-67 ASHLEY N. DEEM, CHIEF DEPUTY CLERK INTERMEDIATE COURT OF APPEALS _____________________________ OF WEST VIRGINIA

HULL PROPERTY GROUP, LLC, and CHARLES WV MALL, LLC, Defendants Below, Petitioners v. QUARRIER ST LLC, Plaintiff Below, Respondent and U.S. BANK NATIONAL ASSOCIATION, successor by merger to LASALLE BANK NATIONAL ASSOCIATION, as Trustee for BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES, INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-TOP28 and C-III ASSET MANAGEMENT LLC, f/k/a CENTERLINE SERVICING, INC., Defendants Below, Respondents. ________________________________________________________________________ Appeal from the Circuit Court of Kanawha County Honorable Maryclaire Akers, Judge Civil Action No. 22-C-128 AFFIRMED ________________________________________________________________________ Submitted: February 5, 2025 Filed: March 10, 2025 Timothy M. Miller, Esq. Isaac R. Forman, Esq. Arie M. Spitz, Esq. Robert M. Stonestreet, Esq. Kayla S. Reynolds, Esq. Jason L. Holliday, Esq. Austin D. Rogers, Esq. Hissam Forman Donovan Dinsmore & Shohl LLP Babst Calland Clements & Ritchie PLLC Charleston, West Zomnir, P.C. Charleston, West Virginia Virginia Charleston, West Virginia Counsel for Respondent Counsel for Respondent Counsel for Petitioners Quarrier St LLC U.S. Bank National Association

JUDGE DANIEL W. GREEAR delivered the Opinion of the Court. JUDGE S. RYAN WHITE, voluntarily recused. JUDGE LAURA V. FAIRCLOTH, sitting by temporary assignment. GREEAR, JUDGE:

Hull Property Group, LLC, and Charles WV Mall, LLC (collectively “Hull

Group”) appeal the January 16, 2024, order of the Circuit Court of Kanawha County

granting U.S. Bank National Association, successor by merger to Lasalle Bank National

Association, as Trustee for Bear Stearns Commercial Mortgage Securities, Inc.,

Commercial Mortgage Pass-Through Certificates, Series 2007-Top28 and C-III Asset

Management LLC, f/k/a Centerline Servicing, Inc.’s (collectively “Trust Respondents”)

motion for partial summary judgment with respect to count I of Quarrier St LLC’s

(“Quarrier”) underlying complaint alleging breach of contract. Upon review of this matter,

we find no error in the circuit court’s award of partial summary judgment to the Trust

Respondents as the Assignment and Assumption of Leases and Contracts (“Assignment

Agreement”) assigned the Demolition Agreement at issue to Hull Group. Accordingly, we

affirm the January 16, 2024, order.

On appeal, Quarrier filed two cross-assignments of error. Due to the

procedural nature of Quarrier’s first cross-assignment of error, this Court lacks jurisdiction

to grant the requested relief. We conclude that Quarrier’s second cross-assignment of error

is without merit.

1 I. FACTUAL AND PROCEDURAL BACKGROUND

In April of 2018, Quarrier purchased the property at issue. This property,

located in Charleston, West Virginia, included a building in which a Sears store previously

operated (hereinafter “Sears building”). The Sears building was directly adjacent to and

contained a common wall with the Charleston Town Center Mall (“Mall”). On August 13,

2020, the Trust Respondents and Quarrier entered into a Demolition Agreement relating to

the planned demolition of the Sears building. This Demolition Agreement placed certain

conditions upon the manner in which Quarrier was permitted to demolish the common wall,

including the construction of a temporary common wall, and discussed the "impact and

effect on the Mall Property, and the minimizing of any such impact and effect." The

Demolition Agreement contained a successor in interest clause, which stated, "[t]his

Agreement shall be binding upon and inure to the benefit of each of the parties hereto, and

their respective heirs, successors, assigns, beneficiaries, personal representatives,

subsidiaries, parents, and affiliated or related legal entities, as applicable."

On April 19, 2021, Hull Group and the Trust Respondents entered into the

Agreement of Purchase and Sale (“P&SA”) governing Hull Group’s purchase of the Mall.

On May 10, 2021, Hull Group finalized its “as is” purchase of the Mall. In connection with

the sale, Hull Group and the Trust Respondents executed numerous ancillary agreements,

including the Assignment Agreement and a Confidentiality Agreement pertaining to the

2 review documents provided by the Trust Respondents. The Assignment Agreement states,

in relevant part:

NOW, THEREFORE, for and in consideration of the receipt of Ten and No/100 Dollars ($10.00) and other good and valuable consideration to Assignor [Trust Respondents] in hand paid by Assignee [Hull Group] to Assignor [Trust Respondents], the receipt and sufficiency of which are hereby acknowledged, Assignor [Trust Respondents] does hereby SELL, ASSIGN, CONVEY, TRANSFER, SET OVER, and DELIVER unto Assignee [Hull Group] all of Assignor’s [Trust Respondents’] right, title and interest, if any, in and to the following: (a) all oral or written agreements pursuant to which any portion of the Real Property or Improvements is used or occupied by anyone other than Assignor [Trust Respondents] (collectively, “Leases”); provided, however, that Assignor [Trust Respondents] reserves and retains for itself all claims and causes of action accruing to Assignor [Trust Respondents] with respect to the Leases prior to the effective date hereof; and (b) the assignable contracts and agreements relating to the upkeep, repair, maintenance or operation of the Real Property, Improvements or Personal Property, including specifically, without limitation, the assignable equipment leases described on Exhibit B attached hereto (collectively, “Contracts”); provided, however, that Assignor [Trust Respondents] makes no representation or warranty with respect to the assignability of any of the Leases and Contracts.

After acquiring the Mall, Quarrier contacted Hull Group regarding the

Demolition Agreement, to which Hull Group objected, claiming that it had no knowledge

of said agreement prior to purchase of the Sears building. Over Hull Group’s objection,

3 Quarrier applied for the required demolition permit with the City of Charleston. The City

of Charleston denied Quarrier’s initial permit request due to Hull Group’s objection.

Hull Group and Quarrier argued that the Trust Respondents failed to disclose

the existence of the Demolition Agreement to Hull Group prior to closing. Thus, Hull Group

questioned whether it was bound by the Demolition Agreement. On February 14, 2022,

Quarrier filed its lawsuit below against Hull Group, the Trust Respondents, and the City of

Charleston, seeking to force the issuance of a demolition permit and to recover damages

associated with the delay in its ability to demolish the Sears building and commence

construction of a new hotel building. Quarrier asserted various claims against Hull Group

stemming from an alleged breach of the Demolition Agreement and continuous interference

with the scheduled demolition of the Sears building. Quarrier also asserted various claims

against the Trust Respondents resulting from an alleged failure to ensure the Demolition

Agreement was properly assigned to Hull Group.

On May 19, 2022, the City of Charleston issued a demolition permit for the

Sears building, over Hull Group’s objection and without Hull Group’s consent.1 In response

to the demolition permit, Hull Group filed a motion for preliminary injunction to cease

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Hull Property Group, LLC, and Charles WV Mall, LLC v. Quarrier St LLC and U.S. Bank National Association, successor by merger to Lasalle Bank National Association, as Trustee for Bear Stearns Commercial Mortgage Securities, Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-Top28, and C-III Asset Management LLC, f/k/a Centerline Servicing, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hull-property-group-llc-and-charles-wv-mall-llc-v-quarrier-st-llc-and-wvactapp-2025.