State ex rel Monster Tree Service, Inc v. Jeffrey D. Cramer and David S. Duvall

West Virginia Supreme Court·Decided November 6, 2020·No. 20-0043& 20-0044·Published

Opinion

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA

September 2020 Term

_______________ FILED November 6, 2020

No. 20-0043 released at 3:00 p.m.

_______________ EDYTHE NASH GAISER, CLERK SUPREME COURT OF APPEALS

OF WEST VIRGINIA

STATE OF WEST VIRGINIA EX REL.

MONSTER TREE SERVICE, INC., Petitioner

v.

THE HONORABLE JEFFREY D. CRAMER, JUDGE OF THE CIRCUIT COURT OF MARSHALL COUNTY, and DAVID S. DUVALL, Respondents

And

No. 20-0044

STATE OF WEST VIRGINIA EX REL.

MONSTER FRANCHISE, LLC,

Petitioner

v.

THE HONORABLE JEFFREY D. CRAMER, JUDGE OF THE CIRCUIT COURT OF MARSHALL COUNTY, and DAVID S. DUVALL, Respondents

ORIGINAL PROCEEDINGS IN PROHIBITION WRITS GRANTED

Submitted: September 22, 2020 Filed: November 6, 2020

Ashley Hardesty Odell, Esq. Michelle Marinacci, Esq. Bowles Rice LLP Christopher M. Turak, Esq. Morgantown, West Virginia Gold Khourey & Turak, L.C. William L. Burner, Esq. Moundsville, West Virginia Bowles Rice LLP Counsel for Respondent David S. Duvall Martinsburg, West Virginia Counsel for Petitioner Monster Tree Service, Inc.

Ancil G. Ramey, Esq. Steptoe & Johnson PLLC Huntington, West Virginia Bradley Shafer, Esq. Mintzer, Sarowitz, Zeris, Ledva & Meyers, LLP Wheeling, West Virginia Counsel for Petitioner Monster Franchise, LLC

CHIEF JUSTICE ARMSTEAD delivered the Opinion of the Court.

SYLLABUS BY THE COURT

1. “A writ of prohibition will not issue to prevent a simple abuse of discretion by a trial court. It will only issue where the trial court has no jurisdiction or having such jurisdiction exceeds its legitimate powers. W. Va. Code, 53-1-1.” Syl. Pt. 2, State ex rel. Peacher v. Sencindiver, 160 W. Va. 314, 233 S.E.2d 425 (1977).

2. “When a court is attempting to proceed in a cause without jurisdiction, prohibition will issue as a matter of right regardless of the existence of other remedies.” Syl. Pt. 10, Jennings v. McDougle, 83 W. Va. 186, 98 S.E. 162 (1919).

3. “When a defendant files a motion to dismiss for lack of personal jurisdiction under W.Va.R.Civ.P. 12(b)(2), the circuit court may rule on the motion upon the pleadings, affidavits and other documentary evidence or the court may permit discovery to aid in its decision. At this stage, the party asserting jurisdiction need only make a prima facie showing of personal jurisdiction in order to survive the motion to dismiss. In determining whether a party has made a prima facie showing of personal jurisdiction, the court must view the allegations in the light most favorable to such party, drawing all inferences in favor of jurisdiction. If, however, the court conducts a pretrial evidentiary hearing on the motion, or if the personal jurisdiction issue is litigated at trial, the party asserting jurisdiction must prove jurisdiction by a preponderance of the evidence.” Syl. Pt. 4, State ex rel. Bell Atlantic–West Virginia, Inc. v. Ranson, 201 W.Va. 402, 497 S.E.2d 755 (1997).

i

4. “Where the language of a statute is free from ambiguity, its plain meaning is to be accepted and applied without resort to interpretation.” Syl. Pt. 5, in part, Div. of Justice & Cmty. Servs. v. Fairmont State Univ., 242 W. Va. 489, 836 S.E.2d 456 (2019).

5. “A cardinal rule of statutory construction is that significance and effect must, if possible, be given to every section, clause, word or part of the statute.” Syl. Pt. 4, in part, Young v. Apogee Coal Co., LLC, 232 W. Va. 554, 753 S.E.2d 52 (2013).

6. “In order that substituted service of original process shall have the effect of actual service upon the party in person, the return must show that all essential provisions of the statute authorizing such substituted service have been strictly complied with.” Syl. Pt. 3, Jones v. Crim, 66 W. Va. 301, 66 S.E. 367 (1909).

7. “In analyzing ‘good cause’ for purposes of motions to set aside a default, the trial court should consider: (1) the degree of prejudice suffered by the plaintiff from the delay in answering; (2) the presence of material issues of fact and meritorious defenses; (3) the significance of the interests at stake; (4) the degree of intransigence on the part of the defaulting party; and (5) the reason for the defaulting party’s failure to timely file an answer.” Syl. Pt. 5, in part, Groves v. Roy G. Hildreth & Son, Inc., 222 W. Va. 309, 664 S.E.2d 531 (2008).

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Armstead, Chief Justice:

In these related proceedings, Monster Tree Service, Inc., (“Monster, Inc.”)

and Monster Franchise, LLC, (“Monster Franchise”) ask the Court to issue writs of prohibition setting aside defaults that were entered against them in the Circuit Court of Marshall County. 1 They contend that the circuit court lacked personal jurisdiction over them and should have granted their motions to set aside their defaults.

Based on the record before us, the arguments of the parties, and the applicable law, we find that the circuit court erred in refusing to set aside the defaults entered against Monster, Inc., and Monster Franchise. Accordingly, we grant the writs of prohibition, vacate the circuit court’s orders refusing to set aside these defaults, and remand these cases to the circuit court for further actions consistent with this opinion.

I. FACTUAL AND PROCEDURAL BACKGROUND Respondent David S. Duvall was injured on November 17, 2017, when he fell from a tree. At the time, Mr. Duvall was working for Monster Tree Service of the Upper Ohio Valley, Inc. (“Monster UOV”). Though Monster UOV is an Ohio corporation, it has its principal place of business in Wheeling, West Virginia, and Mr. Duvall sustained his injuries in Marshall County, West Virginia. According to Mr. Duvall, his damages include medical bills that “approach” one million dollars.

1 Because these petitions stem from the same civil action and share many of the same relevant facts, we answer them in a single opinion.

On September 14, 2018, Mr. Duvall’s attorney wrote to “Monster Tree Service,” asking it to preserve evidence. The attorney directed the letter to the attention of Joshua Skolnick, who—according to the record—is the president of Monster, Inc., and the organizer of Monster Franchise. He also describes himself on social media as the “CEO/Founder” of “Monster Tree Service,” a title that he purports to have held since 2008. Monster, Inc., is a Pennsylvania corporation formed in 2005; Monster Franchise is a Pennsylvania limited liability company formed in 2011. 2 The record does not indicate that either Monster, Inc., or Monster Franchise is registered to do business in West Virginia.

On October 1, 2018, counsel for Monster Franchise replied to say that its relationship to its franchisees is governed by a franchise agreement that allows franchisees “to use the ‘Monster Tree Service’ mark and business system[.]” Counsel for Monster Franchise also advised that Mr. Duvall was employed by a franchisee’s corporation— Monster UOV—and that Monster Franchise had nothing to do with the accident.

On February 8, 2019, Mr. Duvall sued Monster UOV and Monster, Inc., in Marshall County Circuit Court. Mr. Duvall tried to serve Monster, Inc., via the West Virginia Secretary of State, but the record does not show that the mailing from the Secretary of State to Monster, Inc., was ever delivered.

Counsel for Monster Franchise contacted Mr. Duvall’s counsel again on April 4, 2019. This time, counsel also wrote on behalf of Monster, Inc. The letter reprised

2 Mr. Skolnick is also the president of Monster LandCare, Inc., a Pennsylvania corporation formed in 2006 that owns “Monster Tree Service” and other related trademarks.

earlier arguments and demanded that Mr. Duvall dismiss his suit. The letter further advised that Monster, Inc., “operates a Monster Tree business solely within Eastern Pennsylvania and is not involved in any capacity with the Monster Franchise system and has never operated in West Virginia.”

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State ex rel Monster Tree Service, Inc v. Jeffrey D. Cramer and David S. Duvall, (W. Va. 2020).

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