Smith v. Miller & Smith at Pembrooke, L.L.C.

84 Va. Cir. 64, 2011 WL 10582232, 2011 Va. Cir. LEXIS 186
CourtFairfax County Circuit Court
DecidedDecember 14, 2011
DocketCase No. CL-2011-9080
StatusPublished

This text of 84 Va. Cir. 64 (Smith v. Miller & Smith at Pembrooke, L.L.C.) is published on Counsel Stack Legal Research, covering Fairfax County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Miller & Smith at Pembrooke, L.L.C., 84 Va. Cir. 64, 2011 WL 10582232, 2011 Va. Cir. LEXIS 186 (Va. Super. Ct. 2011).

Opinion

By Judge Jonathan C. Thacher

This matter came before the Court on September 30, 2011, on the Defendants’ Demurrer. Upon consideration of the pleadings, arguments of counsel, and the applicable governing authorities, the Court sustains Defendants’ Demurrer to all counts with prejudice.

Background

This action comes before the court on a demurrer, and, as such, all factual allegations in the complaint are taken as true. Tronfeld v. Nationwide Mut. Ins. Co., 272 Va. 709, 713, 636 S.E.2d 447, 449 (2006). The court may also consider the facts alleged in light of any documents attached to the pleadings. Ward’s Equip., Inc. v. New Holland N. Am.., 254 Va. 379, 382, [65]*65493 S.E.2d 516, 518 (1997). Accordingly, the following facts included in the Complaint and attached documents are considered hue.

The Plaintiffs, Benjamin M. Smith, Jr., and David D. Peete, as Trustees for Wellington Associates, L.P. (“Wellington”), and Defendants, Miller and Smith at Pembrooke, L.L.C., et al. (“Pembrooke”) own adjacent parcels of land in Prince William County, Virginia. After Wellington unsuccessfully attempted to sell its land to Pembrooke, the parties began negotiating easement rights that would allow Wellington to build a roadway across Pembrooke’s land to access public highways. Without this easement and roadway, accessing Wellington’s land from the then-existing highway was extremely difficult. According to the Complaint, the only means of entry to, or exit from, Wellington’s property via automobile was multiple right turns off of Sudley Manor Drive in Prince William County.

The parties subsequently came to an agreement on December 20, 2007. The basic substance of this agreement was that Pembrooke would grant Wellington a private easement across its land in exchange for Wellington’s building, and allowing Pembrooke to utilize, the roadway that would traverse Pembrooke’s property. On December 20, 2007, the parties signed a Roadway Construction Agreement, a Deed of Easement and Agreement, a Deed of Sanitary Sewer Easements, and a Document Escrow Agreement. Each of the aforementioned documents was attached to Wellington’s Complaint and can be considered in addition to the Complaint for the purposes of ruling on Pembrooke’s demurrer. The Roadway Construction Agreement details the nature of the transaction between Wellington and Pembrooke and requires the parties to execute the Deed of Easement and Agreements and the Document Escrow Agreement.

The Deed of Easement established the timeline for Wellington’s construction of the roadway. The plans for the road were to be submitted to Prince William County by January 31, 2008. The entire project was to be engineered, permitted, and bonded by September 30, 2008. Construction was to commence by April 1, 2009, and the entire project was to be substantially complete by September 30, 2009. In addition to setting out the construction timeline, the Deed of Easement required that Wellington deliver a first-priority Deed of Trust encumbering its property and securing Wellington’s obligation to construct the roadway. Wellington was to deliver the Deed of Trust to an acceptable escrow agent by April 1, 2008. If Wellington failed to begin construction in a timely fashion, the Deed of Easement and Agreement granted Pembrooke the right to direct the Escrow Agent to record the Deed of Trust.

The Document Escrow Agreement provided that the Deed of Easement would be held in escrow until the parties delivered a replacement plat with a more definitive description of the location and dimension of the easement after the road was built. Although the obligations of the Escrow Agent would terminate upon delivery of a replacement plat by the two parties, the [66]*66Document Escrow Agreement specifically stipulates the obligations of the Escrow Agent terminate, at the latest, on December 31,2008.

Wellington asserts that, although Pembrooke had knowledge that Prince William County planned on dedicating the roadway to public use as early as September of 2007, Pembrooke represented to Wellington throughout contractual negotiations that Wellington would have a private easement across Pembrooke’s land. Wellington, however, knew of Prince William County’s intent to dedicate the roadway to public use by April 28, 2008.

Wellington never delivered the Deed of Trust to the Escrow Agent. Furthermore, Wellington never began construction on the roadway. The obligations of the Escrow Agent expired on December 31, 2008. All of the relevant construction dates established in the Deed of Easement passed without construction commencing. In its Complaint, Wellington asserts it was still willing to build the roadway but did not wish to do so based on the timeline established by its agreement with Pembrooke.

On March 10, 2010, Wellington entered into a contract with Ryland Homes to sell its property for $8.97 million. Wellington’s original Contract of Sale with Ryland Homes, along with all thirteen amendments to the Contract of Sale, was attached to the Complaint and will be considered along with the Complaint for the purposes of Pembrooke’s demurrer. This contract provided Ryland Homes sixty days to study Wellington’s property. Wellington and Ryland Homes agreed settlement would take place on December 10, 2010.

On April 19, 2010, over two years after Wellington’s deadline to deliver the Deed of Trust and more than six months after the construction project was to be completed, Pembrooke filed a suit in Prince William County, Virginia, for specific performance against Wellington demanding delivery of the Deed of Trust and filed a lis pendens against Wellington’s property. Pembrooke served Wellington with the Complaint on May 7, 2010, three days before Ryland Homes’ study period of Wellington’s property expired. Ryland Homes requested that its study period be extended, ostensibly based on the pendency of Pembrooke’s suit, and Wellington granted this request.

Ryland Homes demanded a price decrease to purchase Wellington’s property on August 10, 2010. At that time, Ryland Homes offered $7.3 million for the property. After further negotiations, Wellington settled on a final sale price of $7.5 million, and Ryland Homes agreed to the price on August 25, 2010. After agreeing to the $7.5 million purchase price, the parties entered the Thirteenth Amendment to their Contract of Sale on September 28, 2010. The Amendment specifically grants Ryland Homes authority to negotiate the release of the lis pendens with Pembrooke. At a deposition on November 16, 2010, Pembrooke’s corporate designee disclosed that Pembrooke and Ryland Homes had successfully come to an agreement for the roadway to be built by Ryland Homes.

[67]*67Pembrooke released the lis pendens and nonsuited the specific performance action in Prince William County in November of 2010. Before the nonsuit was taken, Wellington’s Plea in Bar was scheduled to be heard on December 9, 2010. On December 10, 2010, the original settlement date contemplated in the Contract of Sale, Wellington sold its land to Ryland Homes for $7.5 million.

Wellington filed its Complaint in the present action on June 20, 2011. When Wellington filed the Complaint, Ryland Homes was in the process of constructing the roadway across Pembrooke’s land. Wellington filed suit against Pembrooke alleging: (1) slander of title; (2) intentional interference with contractual relations; and (3) abuse of process.

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Cite This Page — Counsel Stack

Bluebook (online)
84 Va. Cir. 64, 2011 WL 10582232, 2011 Va. Cir. LEXIS 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-miller-smith-at-pembrooke-llc-vaccfairfax-2011.