J.A. Street & Associates, Inc. v. Thundering Herd Development, Inc.

724 S.E.2d 299, 228 W. Va. 695, 2011 WL 7431493, 2011 W. Va. LEXIS 313
CourtWest Virginia Supreme Court
DecidedNovember 18, 2011
Docket101379
StatusPublished
Cited by12 cases

This text of 724 S.E.2d 299 (J.A. Street & Associates, Inc. v. Thundering Herd Development, Inc.) 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
J.A. Street & Associates, Inc. v. Thundering Herd Development, Inc., 724 S.E.2d 299, 228 W. Va. 695, 2011 WL 7431493, 2011 W. Va. LEXIS 313 (W. Va. 2011).

Opinions

DAVIS, Justice:

The petitioner herein and defendant/third-party plaintiff below, J.A. Street & Associates, Inc. (hereinafter “Street”), appeals from an order entered September 24, 2010, by the Circuit Court of Cabell County. By that order, the circuit court affirmed its previous order of July 20, 2010, and certified it as a final order pursuant to Rule 54(b) of the West Virginia Rules of Civil Procedure. The July 20, 2010, order granted the partial motion for summary judgment requested by the respondent herein and defendant/third-party plaintiff below, S&ME, Inc. (hereinafter “S&ME”), and dismissed Street’s amended cross-claims against S&ME that sought recovery of remediation costs incurred by Street in 2003. The lower court granted partial summary judgment based on its determination that some of Street’s cross-claims were time-barred by the applicable statute of limitations1 and that W. Va.Code § 55-2-21 (1981) (Repl.Vol.2008)2 did not apply to toll any limitations periods because Street’s claims were independent causes of action as opposed to cross-claims. On appeal to this Court, Street argues that W. Va.Code § 55-2-21 tolled the running of the statute of limitations as to its cross-claims against S&ME. Alternatively, Street argues that the discovery rule applies and that genuine issues of material fact exist such that summary [699]*699judgment was improper. Based upon the parties’ written submissions and oral arguments, the record designated for our consideration, and the pertinent authorities, we find that the lower court erred in its grant of summary judgment. Thus, this case is reversed and remanded for further proceedings consistent with this Opinion.

I.

FACTUAL HISTORY

Briefly, this ease involves a dispute regarding developed property known as the Merritt Creek Farms Development (hereinafter “Merritt Creek”) in Cabell County, West Virginia. The interested parties before this Court are Street, the project’s general contractor, and S&ME, a geotechnical engineering fím. While there are only two parties involved in this appeal, a clear’ understanding of the facts requires a basic knowledge of the other entities who appeared before the circuit court. Thundering Herd Development, LLC., and THD Investors 7, LLC., (hereinafter “THD,” collectively) own the development. Bizzaek, Inc. (hereinafter “Bizzaek”), is a grading contractor, and CTL Engineering of West Virginia, Inc. (hereinafter “CTL”), is an engineering firm. Finally, SITE, Inc. (hereinafter “SITE”), was the civil engineer for the project.

S&ME and Street disagree on several factual assertions, as well as the impact of these disputes on this case. These discrepancies will be discussed, when relevant, in the Discussion section of this Opinion. See generally § IV, infra. A summary of the undisputed facts is as follows.

In 2000, THD began exploring developing ideas for the future Merritt Creek project. THD contracted with S&ME in 2001 for a preliminary geotechnical evaluation of the site, which provided recommendations regarding site preparation.3 Construction of the site began in July of that same year based on the design by SITE. In late September 2001, there was a failure of an engineered fill slope at the southeast corner of the area known as the Target store. In September and October 2001, fill was placed in the area known as “Shops A,” which was on the western portion of Merritt Creek, in a different location than the Target store. The Shops A buildings, in late 2002, began showing damage due to settlement. S&ME, on February 24, 2003, investigated the settlement and issued a report of its findings and conclusions, titled “Geotechnical Evaluation of Settlements, Shops Creek Farm Retail Center.”

After receipt of S&ME’s report, Street, by letter dated April 22, 2003, wrote to Bizzaek, the “land mover” contractor. Street’s correspondence informed Bizzaek that “S&ME ... feels that the placement of the fill was not in accordance with the original recommendation and was the cause of the settlement.” The letter further requests Bizzack’s opinion regarding placement of fill. Bizzaek responded in writing on May 8, 2003, and disputed the assertion that there was any problem with fill placement. Bizzack’s letter to Street explained that all fill placement was monitored by CTL, who did not object to any placements or fill materials during site preparation. Bizzaek stated that it “believe[s] that the problems that you [Street] are experiencing are not related to the placement of the fill.” Street responded to Bizzaek on June 2, 2003. The letter detailed some of the repair work and costs that Street had absorbed as a result of the “settlement of Shop A’ which ... has been attributed to filling not in accordance with specifications.” Street expressed concern that Bizzaek had not followed all soil specifications at construction. Further, Street wrote that “[t]he problem with Shop ‘A’ settlement is coming to a head and we feel a meeting with all parties in the near future will give us direction and determine who is responsible for this failure and the ultimate cost.” Subsequently, THD contracted with an engineer, George Cross, who prepared a report in May 2007. Mr. Cross’s report noted the presence of ground[700]*700water in the fill.4

II.

PROCEDURAL HISTORY

THD filed its initial complaint in the Circuit Court of Cabell County on June 9, 2003, naming S&ME as the sole defendant. The complaint alleged that S&ME had negligently provided recommendations with respect to site preparation for the Target store area, as well as the remainder of the planned Merritt Creek site. On December 11, 2007, THD amended its complaint to name petitioner, Street, as well as several other defendant entities who are not parties to this appeal. S&ME then cross-claimed against Street and filed third-party claims against CTL and Biz-zack. Bizzack then counterclaimed against S&ME. Street filed its answer and counterclaim against THD; and, on January 14, 2008, filed cross-claims against S&ME; and filed third-party claims against CTL and Biz-zack.5 In its cross-claim against S&ME, Street sought to recover monies that it expended in its effort to remediate settlement damage caused by settlement of the fill material and asserted a claim for contribution and/or indemnification from any judgment that THD may obtain on its claims.

On December 8, 2009, Street filed a motion for leave to amend its cross-claims, which amendments form the underlying basis of this appeal.6 The amended cross-claims expanded the original claims and set forth allegations that S&ME negligently failed to identify potential groundwater problems at Shops A. Street’s amended cross-claims further requested recovery of the monies Street expended in 2003 to remediate the settlement issues on the property. S&ME moved to dismiss Street’s amended cross-claims. The basis for the motion to dismiss was that the cross-claims set forth separate, distinct claims for damages that Street asserts it incurred in 2003 and that S&ME argues are unrelated to the claims THD made for damages.7 In its argument to the circuit court, S&ME contended that Street’s cause of action accrued in 2003, and, therefore, it was time-barred by the statute of limitations.

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J.A. Street & Associates, Inc. v. Thundering Herd Development, Inc.
724 S.E.2d 299 (West Virginia Supreme Court, 2011)

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Bluebook (online)
724 S.E.2d 299, 228 W. Va. 695, 2011 WL 7431493, 2011 W. Va. LEXIS 313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ja-street-associates-inc-v-thundering-herd-development-inc-wva-2011.