SER Johnson & Freedman, LLC and David Whitridge v. Hon. Warren R, McGraw, Judge and Nadine R. Rice

CourtWest Virginia Supreme Court
DecidedMarch 6, 2020
Docket19-0772
StatusPublished

This text of SER Johnson & Freedman, LLC and David Whitridge v. Hon. Warren R, McGraw, Judge and Nadine R. Rice (SER Johnson & Freedman, LLC and David Whitridge v. Hon. Warren R, McGraw, Judge and Nadine R. Rice) 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
SER Johnson & Freedman, LLC and David Whitridge v. Hon. Warren R, McGraw, Judge and Nadine R. Rice, (W. Va. 2020).

Opinion

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA

January 2020 Term _______________ FILED March 6, 2020 No. 19-0772 released at 3:00 p.m. EDYTHE NASH GAISER, CLERK _______________ SUPREME COURT OF APPEALS OF WEST VIRGINIA

STATE OF WEST VIRGINIA ex rel. JOHNSON & FREEDMAN, LLC, and DAVID C. WHITRIDGE, Petitioners

v.

THE HONORABLE WARREN R. McGRAW, Judge of the Circuit Court of Wyoming County, and NADINE R. RICE, Respondents. ____________________________________________________________

ORIGINAL PROCEEDING IN PROHIBITION

WRIT DENIED ____________________________________________________________

Submitted: January 15, 2020 Filed: March 6, 2020

J. Mark Adkins, Esq. Samuel A. Hrko, Esq. Joshua A. Lanham, Esq. BAILEY & GLASSER, LLP BOWLES RICE LLP Charleston, West Virginia Charleston, West Virginia Counsel for Petitioners Scott S. Segal, Esq. THE SEGAL LAW FIRM Charleston, West Virginia Counsel for Respondents

JUSTICE WALKER delivered the Opinion of the Court. SYLLABUS BY THE COURT

1. “Where prohibition is sought to restrain a trial court from the abuse of

its legitimate powers, rather than to challenge its jurisdiction, the appellate court will

review each case on its own particular facts to determine whether a remedy by appeal is

both available and adequate, and only if the appellate court determines that the abuse of

powers is so flagrant and violative of petitioner’s rights as to make a remedy by appeal

inadequate, will a writ of prohibition issue.” Syllabus Point 2, Woodall v. Laurita, 156 W.

Va. 707, 195 S.E.2d 717 (1973).

2. “In determining whether to entertain and issue the writ of prohibition

for cases not involving an absence of jurisdiction but only where it is claimed that the lower

tribunal exceeded its legitimate powers, this Court will examine five factors: (1) whether

the party seeking the writ has no other adequate means, such as direct appeal, to obtain the

desired relief; (2) whether the petitioner will be damaged or prejudiced in a way that is not

correctable on appeal; (3) whether the lower tribunal’s order is clearly erroneous as a matter

of law; (4) whether the lower tribunal’s order is an oft repeated error or manifests persistent

disregard for either procedural or substantive law; and (5) whether the lower tribunal’s

order raises new and important problems or issues of law of first impression. These factors

are general guidelines that serve as a useful starting point for determining whether a

discretionary writ of prohibition should issue. Although all five factors need not be

satisfied, it is clear that the third factor, the existence of clear error as a matter of law,

i should be given substantial weight.” Syllabus Point 4, State ex rel. Hoover v. Berger, 199

W. Va. 12, 483 S.E.2d 12 (1996).

ii WALKER, Justice:

Nadine R. Rice filed a complaint in the Circuit Court of Wyoming County in

2010 claiming that Homecomings Financial, LLC and Petitioners Johnson & Freedman,

LLC, and David C. Whitridge negligently ejected her from her home. For various reasons,

including the bankruptcy of Homecomings, Ms. Rice’s case did not progress. In February

2019, Petitioners moved the circuit court to dismiss the case with prejudice under West

Virginia Rule of Civil Procedure 41(b). The circuit court denied Petitioners’ motion,

concluding that good cause justified Ms. Rice’s delay and that Petitioners would not be

substantially prejudiced if the case continued. Petitioners now ask this Court to issue a

writ prohibiting the circuit court from enforcing its order denying their motion. Because

Petitioners have not shown that the circuit court’s order is either clearly erroneous as a

matter of law or a flagrant abuse of its discretion, we deny the writ.

I. PROCEDURAL BACKGROUND

Ms. Rice sued Homecomings and Petitioners in the Circuit Court of

Wyoming County in May 2010. She made two claims against Homecomings (Count I,

quiet title; Count II, unlawful detainer/ejectment) and five claims against Homecomings

and Petitioners (Count III, trespass; Count IV, abuse of process; Count V, negligence;

1 Count VI, negligent infliction of emotional distress; and County VII, punitive damages).

Ms. Rice served the summonses and complaints in July 2011.1

Petitioners answered Ms. Rice’s complaint in August 2011. Homecomings

answered that same month and filed a cross-claim against Petitioners for contribution and

indemnification. Petitioners answered Homecomings’ cross-claim in December 2011 and

asserted their own cross-claim for contribution. That same month, Ms. Rice served

answers to Homecomings’ first set of discovery requests. In April 2012, Petitioners

answered discovery served by Homecomings and produced 152 pages of documents.

Homecomings filed for Chapter 11 bankruptcy on May 14, 2012. It also filed

a Notice of Bankruptcy and Effect of Automatic Stay with the circuit court. Approximately

four years later, on April 26, 2016, Homecomings filed a Bankruptcy Status Report stating

that the Bankruptcy Court had approved its Chapter 11 plan on December 11, 2013 and

that the Chapter 11 plan and an accompanying order had “enjoin[ed] all parties from

‘commencing or continuing in any manner or action or other proceeding of any kind’

relating to claims that are released under the [Chapter 11 plan].” The Status Report also

relayed that Petitioners did not file a proof of claim in the bankruptcy case so they could

not prosecute their cross-claim for contribution from Homecomings in circuit court. But,

Ms. Rice had filed the requisite proof of claim and had settled with Homecomings in the

1 Ms. Rice states that between May 2009 and July 2011, the parties informally exchanged documents and information and engaged in settlement negotiations.

2 bankruptcy. By agreed orders, the circuit court dismissed all of the claims against

Homecomings (including Petitioners’ cross-claims) in November 2016. After November

2016, only Ms. Rice’s claims against Petitioners remained.

In February 2019, Petitioners moved to dismiss Ms. Rice’s remaining claims

with prejudice under West Virginia Rule of Civil Procedure 41(b)2 because she had failed

to prosecute her claims for approximately eight years—that is, from the time she served

the summonses and complaints in 2011 until 2019. Ms. Rice responded that

Homecomings’ bankruptcy stalled the case from 2012 until late in 2016 and that the

parties’ counsel had communicated several times about “getting the matter back on track.”

Ms. Rice also stressed that dismissal under Rule 41(b) is a matter left to the circuit court’s

discretion, good cause supported her delay, and the delay had not prejudiced Petitioners.

Petitioners replied that Ms. Rice had failed to show good cause for her inactivity after the

2 Rule 41(b) states in pertinent part:

(b) Involuntary dismissal; effect thereof. For failure of the plaintiff to prosecute or to comply with these rules or any order of court, a defendant may move for dismissal of an action or of any claim against the defendant.

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SER Johnson & Freedman, LLC and David Whitridge v. Hon. Warren R, McGraw, Judge and Nadine R. Rice, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ser-johnson-freedman-llc-and-david-whitridge-v-hon-warren-r-mcgraw-wva-2020.