United Corp. v. Tutu Park Ltd.

55 V.I. 702, 2011 WL 4017711, 2011 V.I. Supreme LEXIS 32
CourtSupreme Court of The Virgin Islands
DecidedSeptember 7, 2011
DocketS. Ct. Civ. No. 2010-0083
StatusPublished
Cited by29 cases

This text of 55 V.I. 702 (United Corp. v. Tutu Park Ltd.) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Corp. v. Tutu Park Ltd., 55 V.I. 702, 2011 WL 4017711, 2011 V.I. Supreme LEXIS 32 (virginislands 2011).

Opinion

OPINION OF THE COURT

(September 7, 2011)

Hodge, C.J.

Appellant United Corporation (“United”) appeals from an October 12,2010 Opinion and Order entering summary judgment in favor of Appellees Tutu Park Limited (“Tutu”) and P.I.D., Inc., and dismissing all of its claims with prejudice. For the reasons that follow, this Court reverses the Superior Court’s grant of summary judgment and re-instates United’s complaint.

[705]*705I. FACTUAL AND PROCEDURAL BACKGROUND1

On July 9, 2001, United filed a verified complaint against Tutu and P.I.D. — a general partner in Tutu2 — in the Superior Court, which sought damages for breach of contract. The complaint alleged that United and Tutu had entered into a contract on October 29, 1991 in which United had agreed to lease premises at the Tutu Park Shopping Mall in St. Thomas, U.S. Virgin Islands — which is owned and operated by Tutu — in order to operate a supermarket known as Plaza Extra. (J.A. 25-26.) According to the complaint, Tutu had granted United the exclusive right to operate a supermarket at the mall. (J.A. 26.) Although Tutu had entered into a lease with K-Mart — a national retailer which sells food products in some of its stores — in November 1989, United alleged in its complaint that the agreement between Tutu and K-Mart contained a provision prohibiting K-Mart from operating a supermarket at the mall, a provision which United contended had been incorporated into the October 1991 agreement. (J.A. 26-27.) Finally, the complaint alleged that K-Mart began to sell food at its store on or about June 7, 1993, and then expanded its food sales in November 1995 and again in November 2000, which, according to United, transformed K-Mart into a supermarket and resulted in Tutu breaching the October 1991 agreement. (J.A. 27-28.) United attached a copy of the October 1991 agreement to its complaint, as well as a copy of the November 1989 agreement between Tutu and K-Mart.

United filed a motion for partial summary judgment on August 22, 2002, and Tutu filed its opposition and cross-motion for summary judgment on September 16, 2002. Following additional motion practice, on July 7,2003, the Superior Court entered, nunc pro tunc to February 11, 2003, an order (1) deferring consideration of the summary judgment [706]*706motions pending a decision by the United States Court of Appeals for the Third Circuit in Sunshine Supermarket, Inc. et al. v. Kmart Corporation, a c ase which involved interpretation of a contract similar to the November 1989 agreement; and (2) directing the parties to submit supplemental authorities on the meaning of the term “supermarket” in the context of the litigation within sixty days, which both parties timely filed.

On October 5, 2004, the Superior Court directed the parties to file an informational motion with respect to the status of the Sunshine Supermarket appeal in the Third Circuit. But while United filed its informational response on October 13, 2004 — which advised that the Sunshine Supermarket case had settled and that the appeal had been dismissed — the Superior Court did not rule on the pending summary judgment motions. Instead, in June 30, 2005 and June 16, 2006, the Superior Court inquired sua sponte as to whether the matter should be referred to arbitration or mediation. After both parties filed status reports in July 2006, the matter lay dormant in the Superior Court for almost three years, when it was re-assigned to a different judge in February 2009. However, after re-assignment the matter again remained dormant for an additional year. On March 16, 2010, the Superior Court held a status conference and, in a March 25, 2010 Order, directed the parties to supplement their prior motions for summary judgment to address any new case law that may have developed during the intervening seven and a half years. Pursuant to the March 25, 2010 Order, Tutu supplemented its cross-motion for summary judgment on March 30, 2010, United supplemented its motion for partial summary judgment on April 13, 2010, and Tutu filed a reply to United’s supplemental filing on May 3,2010. The Superior Court, in an October 12, 2010 Opinion and Order, denied United’s motion for partial summary judgment, granted Tutu’s motion for summary judgment, and dismissed United’s action with prejudice. United timely filed its notice of appeal on November 4, 2010.

II. DISCUSSION

A. Jurisdiction and Standard of Review

The Superior Court had jurisdiction pursuant to section 76 of title 4 of the Virgin Islands Code, while this Court possesses jurisdiction over the October 12, 2010 Opinion and Order, which constitutes a final judgment, pursuant to VI. CODE Ann. tit. 4 § 32(a) (1997).

[707]*707“This Court exercises plenary review of a Superior Court’s grant of summary judgment.” Williams v. United Corp., 50 V.I. 191, 194 (V.I. 2008) (citing Maduro v. Am. Airlines, Inc., S.Ct. Civ. No. 2007-029, 2008 V.I. Supreme LEXIS 24, *7 (V.I. Feb. 28, 2008) (unpublished)). “On review, we apply the same test that the lower court should have utilized.” Id. “Because summary judgment is a drastic remedy, it should be granted only when ‘the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.’ ” Id. (quoting former wording of Fed. R. Crv. R 56(c)). “When reviewing the record, this Court must view the inferences to be drawn from the underlying facts in the light most favorable to the non-moving party, and we must take the non-moving party’s conflicting allegations as true if ‘supported by proper proofs.’ ” Joseph v. Hess Oil V.I. Corp., 54 V.I. 657, 664 (V.I. 2011) (quoting Williams, 50 V.I. at 194-95 (V.I. 2008)). “[T]o survive summary judgment, the nonmoving party’s evidence must amount to more than a scintilla, but may amount to less (in the evaluation of the court) than a preponderance.” Id. (internal quotation marks omitted).

B. The Summary Judgment Award

“To succeed on a breach of contract claim, a plaintiff must show four elements: (1) an agreement, (2) a duty created by that agreement, (3) a breach of that duty, and (4) damages.” Arlington Funding Servs., Inc. v. Geigel, 51 V.I. 118, 134-35 (V.I. 2009) (quoting Galt Capital, LLP v. Seykota, Civ. Nos. 2002-63, 2002-134, 2007 U.S. Dist. LEXIS 53199, at *6 (D.V.I. July 18, 2007) (unpublished)). Ordinarily, when the terms of a contract are unambiguous, the Superior Court treats the issue of the meaning of those terms as a question of law, but if the terms are ambiguous, the issue of the meaning of the terms becomes a question of fact. As this Court has recently explained,

[T]o decide whether a contract is ambiguous, we do not simply determine whether, from our point of view, the language is clear . . . Before making a finding concerning the existence or absence of an ambiguity, we consider the contract language . . . and the extrinsic evidence offered in support of each interpretation. Extrinsic evidence may include ... the conduct of the parties that reflects their under[708]*708standing of the contract’s meaning. Teamsters Indus. Employees Welfare Fund v.

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Cite This Page — Counsel Stack

Bluebook (online)
55 V.I. 702, 2011 WL 4017711, 2011 V.I. Supreme LEXIS 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-corp-v-tutu-park-ltd-virginislands-2011.