Reybold Construction Company v. Lennar Corporation

CourtSuperior Court of Delaware
DecidedAugust 13, 2025
DocketN22C-06-206 PRW
StatusPublished

This text of Reybold Construction Company v. Lennar Corporation (Reybold Construction Company v. Lennar Corporation) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reybold Construction Company v. Lennar Corporation, (Del. Ct. App. 2025).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

REYBOLD CONSTRUCTION ) COMPANY, et al., ) ) Plaintiffs, ) ) v. ) C.A. No. N22C-06-206 PRW ) LENNAR CORPORATION, et al., ) ) Defendants. )

Submitted: July 11, 2025 Decided: August 13, 2025

DECISION AFTER TRIAL

Jeffrey M. Weiner, Esquire, LAW OFFICES OF JEFFREY M. WEINER, Wilmington, Delaware, Attorney for Plaintiffs.

Anthony M. Saccullo, Esquire, and Thomas H. Kovach, Esquire, A.M. SACCULLO LEGAL, L.L.C., Bear, Delaware; Benjamin A. Garber, Esquire, KLEINBARD L.L.C., Philadelphia, Pennsylvania, Attorneys for Defendant/Counterclaim Plaintiff CalAtlantic Group, LLC.

WALLACE, J. In February 2015, Plaintiff Reybold Construction Company entered into a

Settlement Agreement with Ryland, who is now Defendant CalAtlantic,1 to settle

disagreements over the development and maintenance of two residential

communities: Meridian Crossing and Meridian Crossing II.

But their discord continued. Both parties now claim that the other breached

the Settlement Agreement. Reybold claims breach because CalAtlantic ceased

payments. In response, CalAtlantic has raised issue with Reybold’s inconsistent and

delayed billing practices. The parties also disagree about cost obligations and

propose different interpretations of the Settlement Agreement.

I. THE TRIAL

During the three-day bench trial, the Court heard the in-person testimony of:

Kristen DuHadaway Greg Lingo Angela Jo Nagle Patrick McNelis Jerome S. Heisler, Jr. Daniel Stewart John Poole, P.E.

The parties also submitted over 150 exhibits.2 During trial, CalAtlantic moved for

judgment as a matter of law, and was denied.3 Now, the Court determines the

liability of both parties under their respective claims and counterclaims and the

1 For convenience, the Court will use “CalAtlantic” for any actions taken by CalAtlantic or any of its predecessors. 2 D.I. 114 (Trial Worksheet). 3 Id.

-1- appropriate damages, if any.4

II. APPLICABLE LEGAL PRINCIPLES AND STANDARDS

Though the Court sits as the sole factfinder, it has applied the same principles

of law in its deliberations and consideration of these claims that a jury would have

been instructed to follow. The Court may highlight some of those most applicable

to this case. But the fact that some particular point or concept may not be mentioned

here shouldn’t be read as any indication that the Court did not—during its

deliberations—consider all legal principles applicable to this case and to the parties’

claims and defenses.

In reaching its verdict, the Court has examined all exhibits submitted and

considered the testimony of all witnesses on both direct and cross. And the Court

has made its own assessment of each witness’s credibility and reconciled, as best it

could, any inconsistencies in the testimony and documentary evidence.5

The Court has also considered the applicable Delaware law that defines the

legal precepts applicable to the claims and defenses the parties have forwarded. The

Court has applied the Delaware Rules of Evidence to the testimony and exhibits

4 In addition to the trial evidence and arguments made by counsel, the Court also now has the benefit of the parties’ post–trial briefing. D.I. 127, 130, 132, 136. 5 Pencader Assoc., LLC v. Synergy Direct Mortg. Inc., 2010 WL 2681862, at *3 (Del. Super. Ct. June 30, 2010) (“[I]n a bench trial, it is the Court’s role to resolve the conflicts in witnesses’ testimony and weigh their credibility.”); Interim Healthcare, Inc. v. Spherion Corp., 884 A.2d 513, 545-46 (Del. Super. Ct. 2005) (setting forth “the customary Delaware standard” a trial judge applies when assessing trial testimony and evidence in a bench trial).

-2- presented at trial. Consistent with the Court’s knowledge of those rules and the

specific rulings that were articulated both pre-trial and during the trial proceedings,

it only used evidence allowed under those rules and rulings for its deliberation. And,

of course, the Court has considered each party’s respective arguments, both oral and

written, on the weight to be accorded to the testimony and evidence.

III. FACTUAL FINDINGS

For certain actions at trial, it is difficult at times to completely segregate

findings of fact from conclusions of law.6 So, to the extent any one of the Court’s

findings of fact here might be more appropriately viewed as a conclusion of law, that

finding of fact may be considered the Court’s conclusion of law on that point.7

A. THE UNDERLYING SETTLEMENT AGREEMENT AND ITS RELATED LITIGATION

When issues arose over the development of the Meridian Crossing residential

community, the parties—Reybold, The Ryland Group, Inc. (which later became

CalAtlantic) and other entities—entered into a Release and Settlement Agreement

(“Settlement Agreement”).8 The Settlement Agreement provided a clean slate to

permit the parties to continue their relationship. It released all claims arising before

6 Intermec IP Corp. v. TransCore, LP, 2023 WL 5661585, at *2 (Del. Super. Ct. Aug. 23, 2023). 7 Id. (citing Facchina Constr. Litigations, 2020 WL 6363678, at *2 n.12 (Del. Super. Ct. Oct. 29, 2020) (collecting authority)). 8 Def.’s Ex. 1 (Settlement Agreement).

-3- February 25, 2015, and aimed to more clearly outline the parties’ respective

obligations.9 Its provisions govern the parties’ responsibilities for the construction

of common facilities and future improvements.10 But, once again, disputes arose

regarding the responsibilities of the parties under the Settlement Agreement.

Reybold, in its breach-of-contract claim, alleges that CalAtlantic violated the

Settlement Agreement by failing to pay its proportion of the costs for various

projects, including open space maintenance, common facility work, future Reybold

improvement costs, and the paving of private alleyways.11

In response, CalAtlantic brought counterclaims alleging breach of contract

and seeking declaratory relief.12 It says that its obligation to pay Reybold wasn’t

triggered because Reybold didn’t follow the Settlement Agreement’s billing

procedures and it delayed sending invoices in favor of sending mass submissions.13

And CalAtlantic argues that if its obligation to pay was indeed triggered, then it still

isn’t obligated to pay management fees, for the paving of the private alleyways, or

for the construction of stormwater ponds.14 CalAtlantic also asserts that Reybold

9 Settlement Agreement at L. 10 See generally Settlement Agreement. 11 Reybold Post-Trial Opening Br. at 36-42 (D.I. 127). 12 CalAtlantic Post-Trial Opening Br. at 43-44 (D.I. 130) (discussing only its counterclaims of breach of contract and declaratory judgment); D.I. 29 (Def.’s Answer & Countercls.). 13 CalAtlantic Post-Trial Opening Br. at 19-30. 14 Id. at 19-36.

-4- has incorrectly calculated its proportionate share percentage for work completed

under the Settlement Agreement.15

B. TERMS OF THE SETTLEMENT AGREEMENT

1. Future Reybold Improvements The Settlement Agreement governed the division of costs between Reybold

and CalAtlantic for “Future Reybold Improvements.” It defines “Future Reybold

Improvements” as “open space improvements for the Community which are not yet

started or complete as set forth in Exhibit F attached hereto and incorporated

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Reybold Construction Company v. Lennar Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reybold-construction-company-v-lennar-corporation-delsuperct-2025.