SC&A Construction, Inc. v. Potter, Jr.

CourtSuperior Court of Delaware
DecidedMay 31, 2017
DocketN12L-09-022 AML
StatusPublished

This text of SC&A Construction, Inc. v. Potter, Jr. (SC&A Construction, Inc. v. Potter, Jr.) 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
SC&A Construction, Inc. v. Potter, Jr., (Del. Ct. App. 2017).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE SC&A CONSTRUCTION, INC., Plaintiff,

C.A. No. N12L-09-022 AML

V.

CHARLES POTTER, JR. and VELDA C. JONES-POTTER,

Defendants.

Subrnitted: February 23, 2017 Decided: May 31, 2017

MEMORANDUM OPINION

Donald L. Logan, Esquire and Victoria K. Petrone, Esquire, LOGAN & PETRONE, LLC, New Castle, Delaware; Attorneysfor Plaz'ntijj”.

Samuel L. Guy, Esquire, SAMUEL L. GUY, ATTORNEY AT LAW, Wilmington, Delaware; Attorneyfor Defendants.

LeGROW, J.

The defendants, homeowners Who contracted With the plaintiff for various home improvements, resist entry of a mechanic’s lien that the plaintiff seeks based on a judgment the plaintiff obtained in binding arbitration. After a nine-day arbitration proceeding, extensive motion practice in this Court and the Court of Chancery, and two appeals to the Delaware Supreme Court, the defendants continue to advance arguments and claims that previously Were rejected in each forum and are barred here under principles of res judicata, collateral estoppel, and law of the case.

Although the defendants have employed a “kitchen sink” approach in their arguments before this Court, their basic position is quite simple: a mechanic’s lien should not be entered because they are entitled to relitigate their claims against the plaintiff in the hopes of achieving a different result. l disagree; there is no basis on Which to defer or deny the relief the plaintiff seeks.

FACTUAL & PROCEDURAL BACKGROUND

This case’s tortured history spans almost f1ve years and includes decisions of

at least three judges of this Court, along With a Court of Chancery decision and two

Delaware Supreme Court decisionsl

l See SC&A Constr., lnc. v. Potter (SC&A I), 2012 WL 6930317 (Del. Super. Dec. 21, 2012); SC&A Constr., Inc. v. Dept. of Licenses & Inspections, 2014 WL 1724846 (Del. Super. Apr. ll, 2014); SC&A Constr., Inc. v. Potter (SC&A II), 2016 WL 70901 (Del. Ch. Jan. 6, 2016); Potter v. SC&A Constr., Inc. (Potter I), 69 A.3d 372 (Del. July 11, 2013) (TABLE); Potter v. SC&A Constr., lnc. (Potter II), 147 A.3d 748 (Del. Sept. 7, 2016) (TABLE).

l

In mid-2011, SC&A Construction, Inc. (“SC&A”) was retained to perform various construction services to Charles Potter, Jr.’s and Velda C. Jones-Potter’s (the “Potters”) horne in Wilmington, DelaWare. The parties entered into an agreement, dated May 12, 2011 and signed by Mrs. Potter but not Mr. Potter (the “Contract”), whereby SC&A was to oversee certain repair work to the Potters’ home. The Contract required mediation in the event a dispute arose between the parties; if mediation was unsuccessful, the parties agreed to resolve the dispute in binding arbitration.2

In September 2012, SC&A filed a complaint and statement of a claim in rem for a mechanic’s lien against the Potters for $61,823.74, which SC&A contended was the unpaid balance under the Contract.3 The Potters responded by filing a counterclaim in personam seeking damages4 On November 5, 2012, SC&A moved to dismiss the counterclaim in favor of arbitration5 The Potters resisted arbitration on the basis that Mr. Potter was not a signatory to the Contract and therefore could not be compelled to arbitrate The judge then presiding over the case granted SC&A’s motion, dismissing the counterclaim and referring the parties to arbitration.6 The judge rejected the Potters’ argument that the counterclaim was

not arbitrable and held that the arbitrator may reach “any issue, including factual

2 Pl.’S Resp. Br. Ex. A 11 21.3.

3 Compl. 11 10.

4 D.I. 8.

5D.I. 14.

6 See sC&A 1, 2012 WL 6930317.

questions relating to arbitrability based on the partially-signed contract, or otherwise.”7 Although the Potters appealed that decision to the Delaware Supreme Court,8 the Supreme Court dismissed the appeal as interlocutory.9 The parties then proceeded to arbitration, where the arbitrator determined the Potters were subject to arbitration.lo

On May 12, 2014, arbitration proceedings began. The parties conducted a nine-day evidentiary hearing, after which the arbitrator issued an arbitration award in SC&A’s favor (the “Arbitration Award”). The arbitrator awarded SC&A $86,544.78, representing the Contract balance and pre-judgment interest, plus post- judgment interest at 1.5% per month beginning October 1, 2014, $10,500.00 in attomeys’ fees, and $4,582.26 in costs.ll The arbitrator rejected the Potters’ counterclaim in its entirety.12

Contemporaneous with the arbitration proceeding, an administrative proceeding involving the improvements to the Potters’ home was taking place before the Licenses and Inspections Review Board (the “Board”). On July 19, 2013, the Board issued a decision, which SC&A appealed. A judge from this

Court, but not the judge assigned to the mechanic’s lien case, remanded that

7 1a at *2. 8 D.I. 26. 9 Potter 1, 69 A.3d 372. 10 See Pl.’s Resp. Br. Ex. B (Arbitrator’s Interim Order, Apr. ll, 2013). :; See App’x Def.’s Opening Br. A-164 (Arbitration Award). Id.

decision back to the Board with instructions to provide a more detailed explanation for the basis of its decision.13 In its decision on remand, the Board concluded SC&A “performed work on the property without the upgraded permit and the original permit for the lesser amount remains open with L & I given that SC[&]A has not obtained a final [i]nspection nor has it obtained a certificate of completion.”14 The Board held SC&A “must obtain an upgraded permit to include the aforementioned change work orders” and “inspections of all the work as determined by L & I.”15

On October l, 2014, SC&A moved in this Court to enter the Arbitration Award as a final mechanic’s lien judgment16 The Potters opposed that motion.'7 On October 24, 2014, the Court inquired as to why SC&A believed “the on-going administrative proceeding in Wilmington has no bearing on [the] pending motion.”18 Over the next several months, the Court corresponded with the parties regarding that question.19 On November 10, 2014, the Court stated: “If [SC&A] wants its mechanic’s lien, it must show the arbitrator or the [C]ourt that [the

Potters] now have all the permits and certificates to which [the Potters], as

‘3 14. at A-49.

“‘ 1a ar A-50.

‘5 1a atA-si.

’6 D.1.29.

" D.I. 31.

'8 D.1.43.

'9 see D.1.43,44,45, 50,51, 55.

[SC&A’s] customers and property owners, are entitled.”20 In a status report responding to the Court’s inquiry, SC&A informed the Court that: “Because the Court of Chancery is vested with the authority to confirm arbitration awards, on January 8, 2015, SC&A initiated proceedings in the Court of Chancery to confirm the Arbitrator’s Award as a judgment against Charles Potter and Velda Jones- Potter individually.”z' In response, on February 4, 2015, the Court stated: “If [SC&A] prevails [in the Court of Chancery], this [C]ourt anticipates entering the mechanic’s lien judgment as a matter of course. To the extent they are cognizable, [the Potters’] claims stemming from the permit process are more appropriately addressed by an equity court.”22 This Court stayed the matter until the Court of Chancery issued its decision on the petition to confirm.23

On January 6, 2016, the Court of Chancery confirmed the Arbitration Award.24 The Potters appealed that decision to the Delaware Supreme Court, which affirmed the Court of Chancery’s decision.25

After both the Court of Chancery and Supreme Court proceedings concluded, SC&A wrote to this Court on September 12, 2016, asking the Court to

lift the stay and grant its Motion to Enter the Arbitration Award as a Final

20 D.I. 50.

2‘1).1.51@112.

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SC&A Construction, Inc. v. Potter, Jr., Counsel Stack Legal Research, https://law.counselstack.com/opinion/sca-construction-inc-v-potter-jr-delsuperct-2017.