Rex Donahue v. Mammoth Restoration and Cleaning and Allstate Insurance Company

CourtWest Virginia Supreme Court
DecidedFebruary 18, 2022
Docket20-0343
StatusPublished

This text of Rex Donahue v. Mammoth Restoration and Cleaning and Allstate Insurance Company (Rex Donahue v. Mammoth Restoration and Cleaning and Allstate Insurance Company) 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
Rex Donahue v. Mammoth Restoration and Cleaning and Allstate Insurance Company, (W. Va. 2022).

Opinion

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA

January 2022 Term FILED _______________ February 18, 2022 released at 3:00 p.m. No. 20-0343 EDYTHE NASH GAISER, CLERK SUPREME COURT OF APPEALS _______________ OF WEST VIRGINIA

REX DONAHUE, Defendant Below and Third-Party Plaintiff Below, Petitioner

v.

MAMMOTH RESTORATION and CLEANING, Plaintiff Below, Respondent

and

ALLSTATE INSURANCE COMPANY, Third-Party Defendant Below, Respondent ________________________________________________________

Appeal from the Circuit Court of Cabell County The Honorable Alfred E. Ferguson, Judge Civil Action No. 19-C-289

AFFIRMED

________________________________________________________

Submitted: January 11, 2022 Filed: February 18, 2022

Steven T. Cook, Esq. Evan R. Kime, Esq. Cook Law Offices, PLLC Jackson Kelly PLLC Barboursville, West Virginia Charleston, West Virginia Counsel for Petitioner Counsel for Respondent Allstate Insurance Company CHIEF JUSTICE HUTCHISON delivered the Opinion of the Court. 1

1 Pursuant to an administrative order entered by this Court on February 7, 2022, the Honorable Alan D. Moats, Judge of the Nineteenth Judicial Circuit, was assigned to sit as a member of the Supreme Court of Appeals of West Virginia commencing February 7, 2022, following the resignation of former Justice Evan Jenkins; however, Justice Moats did not participate in this decision. And although former Justice Jenkins heard oral argument in this case, he did not participate in this decision. SYLLABUS BY THE COURT

1. “Where the issue of the enforceability of a settlement agreement

requires the lower court to make findings of fact and apply contractual or other legal

principles, this Court will review its order and the ultimate disposition under an abuse of

discretion standard, its underlying factual findings under a clearly erroneous standard, and

questions of law pursuant to a de novo review.” Syl. Pt. 2, Triple 7 Commodities, Inc. v.

High Country Mining, Inc., 245 W. Va. 63, 857 S.E.2d 403 (2021).

2. “A trial court is vested with a sound discretion in granting or refusing

leave to amend pleadings in civil actions. Leave to amend should be freely given when

justice so requires, but the action of a trial court in refusing to grant leave to amend a

pleading will not be regarded as reversible error in the absence of a showing of an abuse

of the trial court’s discretion in ruling upon a motion for leave to amend.” Syl. Pt. 6, Perdue

v. S.J. Groves & Sons Co., 152 W. Va. 222, 161 S.E.2d 250 (1968).

3. “‘A meeting of the minds of the parties is a sine qua non of all

contracts.’ Syl. pt. 1, Martin v. Ewing, 112 W.Va. 332, 164 S.E. 859 (1932).” Syl. Pt. 1,

Burdette v. Burdette Realty Improvement, Inc., 214 W.Va. 448, 590 S.E.2d 641 (2003).

4. “‘The purpose of the words “and leave [to amend] shall be freely

given when justice so requires” in Rule 15(a) W.Va.R.Civ.P., is to secure an adjudication

on the merits of the controversy as would be secured under identical factual situations in

the absence of procedural impediments; therefore, motions to amend should always be

i granted under Rule 15 when: (1) the amendment permits the presentation of the merits of

the action; (2) the adverse party is not prejudiced by the sudden assertion of the subject of

the amendment; and (3) the adverse party can be given ample opportunity to meet the

issue.’ Syllabus Point 3, Rosier v. Garron, Inc., 156 W.Va. 861, 199 S.E.2d 50 (1973).”

Syl. Pt. 5, State ex rel. Vedder v. Zakaib, 217 W. Va. 528, 618 S.E.2d 537 (2005).

ii HUTCHISON, Chief Justice:

Petitioner Rex Donahue appeals an order from the Circuit Court of Cabell

County enforcing a settlement agreement between petitioner and his insurer, Respondent

Allstate Company (“Allstate”), relating to water damage occurring at certain real property

owned by petitioner. The order also denied petitioner’s motion to amend his complaint or,

alternatively, allow the filing of a new complaint so as to allege claims of breach of contract

and insurance bad faith against Allstate. Petitioner contends that while he agreed to dismiss

his claim against Allstate regarding the payment of a debt petitioner owed for water

mitigation services performed as a result of the water damage, there was no meeting of the

minds regarding petitioner’s agreement to dismiss any claims against Allstate for denying

coverage for the damage sustained and insurance bad faith.

Upon review of the parties’ briefs, appendix record, oral argument, and

applicable legal authority, and for the reasons stated below, we affirm the circuit court’s

order enforcing the settlement agreement between petitioner and Allstate and denying

petitioner’s request to amend his complaint or allow the filing of a new complaint.

I. Factual and Procedural Background

In January of 2018, petitioner made a claim with Allstate on a Landlord’s

Package Policy for damages to rental property he owned in Ona, West Virginia, after

several water pipes froze and then burst. Allstate denied the claim on the ground that the

policy included an exclusion for property damage caused by a failure to maintain adequate

1 heat in the residence. 2 On July 24, 2018, Mammoth Restoration and Cleaning

(“Mammoth”) filed a civil complaint against petitioner in the Magistrate Court of Cabell

County seeking $6,301.11 in payment for water mitigation services it performed at the

subject property due to the burst pipes.

Petitioner thereafter filed a Third-Party Complaint against Allstate alleging

that the subject property was insured by Allstate; that it was Allstate that selected

Mammoth to perform the water mitigation services; that Allstate had denied coverage on

the ground that “the electric was off”; that petitioner “has non-party witnesses to verify the

electric was on”; and that Allstate “has a good faith basis to cover the cost” of Mammoth’s

services. Petitioner requested that Allstate be held responsible for the payment of

Mammoth’s services and for his attorney fees and costs. 3

On June 18, 2019, Allstate removed the case from magistrate court to the

circuit court and filed its answer denying the principal allegations of the Third-Party 4

Complaint.

Allstate represents, and petitioner does not dispute, that the subject property was 2

unoccupied at the time the water pipes burst.

At the hearing on Allstate’s motion to enforce the settlement, counsel for petitioner 3

stated that when Mammoth arrived at the subject property to perform the water mitigation services, petitioner’s son was on site and “signed a document . . . that said if Allstate doesn’t pay [for Mammoth’s services], that [petitioner was] liable under the contract.”

West Virginia Code § 50-4-8 (2018) provides, in pertinent part, that “[a]t any time 4

before trial in a civil action involving $5,000 or more, any party may, upon payment of the Continued . . . 2 On June 28, 2019, following negotiations between counsel for petitioner,

Mammoth, and Allstate, counsel for Allstate circulated the following e-mail, the stated

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Related

State v. LaRock
470 S.E.2d 613 (West Virginia Supreme Court, 1996)
Morgan v. Price
150 S.E.2d 897 (West Virginia Supreme Court, 1966)
O'CONNOR v. GCC Beverages, Inc.
391 S.E.2d 379 (West Virginia Supreme Court, 1990)
Messer v. Huntington Anesthesia Group, Inc.
664 S.E.2d 751 (West Virginia Supreme Court, 2008)
State Ex Rel. Vedder v. Zakaib
618 S.E.2d 537 (West Virginia Supreme Court, 2005)
Floyd v. Watson
254 S.E.2d 687 (West Virginia Supreme Court, 1979)
Burdette v. Burdette Realty Improvement, Inc.
590 S.E.2d 641 (West Virginia Supreme Court, 2003)
Sanders v. Roselawn Memorial Gardens, Inc.
159 S.E.2d 784 (West Virginia Supreme Court, 1968)
Perdue v. SJ Groves and Sons Company
161 S.E.2d 250 (West Virginia Supreme Court, 1968)
Miranosky v. Parson
161 S.E.2d 665 (West Virginia Supreme Court, 1968)
LLOYD'S, INC. v. Lloyd
693 S.E.2d 451 (West Virginia Supreme Court, 2010)
Martin v. Ewing
164 S.E. 859 (West Virginia Supreme Court, 1932)
Larry D. Jr. and Pamela Pyles v. Mason Co. Fair, Inc.
806 S.E.2d 806 (West Virginia Supreme Court, 2017)
Rosier v. Garron, Inc.
199 S.E.2d 50 (West Virginia Supreme Court, 1973)

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Rex Donahue v. Mammoth Restoration and Cleaning and Allstate Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rex-donahue-v-mammoth-restoration-and-cleaning-and-allstate-insurance-wva-2022.