Winchester Homes, Inc. v. Hoover Universal, Inc.

27 Va. Cir. 62
CourtFairfax County Circuit Court
DecidedJanuary 6, 1992
DocketCase No. (Law) 100865
StatusPublished
Cited by8 cases

This text of 27 Va. Cir. 62 (Winchester Homes, Inc. v. Hoover Universal, Inc.) 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
Winchester Homes, Inc. v. Hoover Universal, Inc., 27 Va. Cir. 62 (Va. Super. Ct. 1992).

Opinion

By Judge William G. Plummer

This matter has come before the Court on a Joint Demurrer to the Second Amended Motion for Judgment and Bill of Particulars of Plaintiff Winchester Homes, Inc. (“Winchester”), a Joint Special Plea in Bar, and a Joint Motion for Sanctions filed by Defendants Chesapeake Corporation, Hoover Universal, Inc., Johnson Controls, Inc., Hoover Treated Wood Products, Inc., Mid-Atlantic Wood Preservers, Inc., Ply-Gem Industries, Inc., Timber Products Inspection, Inc., Osmose Wood Preserving, Inc., Applied Research Group, Inc., Reliance Wood Preservers, Inc,, and Allied Plywood Corporation.

Fraud

Based upon arguments of counsel and having reviewed counsels’ briefs, the Court sustained in open court the Defendants’ demurrer as to Count IV, based on fraud, of Winchester’s Second Amended Motion for Judgment. The Court hereby restates its opinion that Winchester has failed to allege fraud with the required specificity. See [63]*63Tuscarora, Inc. v. B.V.A. Credit Corp., 218 Va. 849, 241 S.E.2d 778 (1978).

Additionally, Winchester has made no allegation whatsoever of any active misrepresentation by Defendants Johnson Controls, Inc., Reliance Wood Preserving, Inc., Mid-Atlantic Wood Preservers, Inc., Timber Products Inspections, Inc., or Allied Plywood Corporation.

Moreover, Winchester failed to allege that any Defendant actively misrepresented any material fact to any homeowner or that Winchester communicated the alleged misrepresentations to the homeowners. Although Winchester alleged that all of the Defendants fraudulently concealed material information from the homeowners, the Court finds that Winchester failed to allege any duty by the Defendants to disclose such information to the homeowners. Winchester has not alleged a relationship between the Defendants and the homeowners sufficient to impose such a duty.

Finally, the Court finds that an allegation of fraud is a personal cause of action which the homeowners could not assign to Winchester. Winchester’s reference to Virginia Code § 8.01-26 is inapposite, as an assignment of anticipated proceeds of a court award under that provision is simply to assign a monetary expectancy; the statute does not permit assignment of the underlying cause of action.

Virginia Consumer Protection Act

The Court also sustained the Defendants’ demurrer to Count V of the Second Amended Motion for Judgment based on alleged violations of the Virginia Consumer Protection Act. See Va. Code Ann. §§ 59.1-196 to 59.1-207 (1987 & Supp. 1991). The Court found that the sales of FRTP between the Defendants and Winchester were not consumer transactions as contemplated by the Act. The Defendants’ commercial transactions with Winchester do not fall within the ambit of the Act’s restrictions on consumer transactions. Specifically, as sold by the Defendants, the FRTP was to be used as component parts in the construction of homes and not “primarily for personal, family or household purposes” as envisioned by the Act. See Va. Code Ann. § 59.1-198(A)(i) (1987 & Supp. 1991).

Further, a violation of the Virginia Consumer Protection Act, based on misrepresentation, provides a personal cause of action which the homeowners could not assign to Winchester. Attempted [64]*64assignments from the homeowners could not provide Winchester with standing to bring this action in their place.

Special Plea in Bar - Breach of Warranty

The Defendants have filed a Joint Special Plea in Bar contending that claims concerning certain townhomes under Counts I, II, and III of the Second Amended Motion for Judgment are barred by the four-year statute of limitations for breach of warranty claims.

(a) Breach of Implied Warranties

Having heard oral arguments and upon reading the briefs of counsel, the Court sustains the Defendants’ plea of the statute of limitations to Counts II and III of the Second Amended Motion for Judgment concerning alleged breaches of implied warranties. The Court finds that a four-year statute of limitations governs such claims grounded upon implied warranties, Va. Code Ann. § 8.2-725 (1991), and that the causes of action at bar accrued upon tender of delivery, which occurred, at latest, upon completion of the town-homes.

The Court further finds that Winchester had no assignments or subrogation rights at the time it filed its original Motion for Judgment. Winchester could not become subrogated to the rights of the homeowners until it fully discharged any obligation owing to the homeowners by having replaced or repaired the roof on any particular unit. The Court believes to be unfounded Winchester’s argument that its mere inspection of any particular roof caused Winchester to become subrogated to the potential rights of the homeowners against the Defendants.

The original Motion for Judgment, therefore, did not toll the four-year statute of limitations; the first Amended Motion for Judgment, which Winchester filed on June 24, 1991, did not relate back to the original filing. See Irvine v. Barrett, 119 Va. 587, 592, 89 S.E. 904, 906 (1916). Consequently, the statute of limitations bars any implied warranty claim for townhome roofs completed more than four years prior to June 24, 1991, i.e., before June 24, 1987.

Moreover, the first Amended Motion for Judgment did not toll the statute of limitations for those townhomes for which Winchester had not yet obtained an assignment or repaired the roof as of June 24, 1991. The Court concludes that claims for which Winchester obtained assignments or had repaired roofs between June 24, 1991, and [65]*65September 16, 1991, were not deemed to be filed until September 16, 1991, the date Winchester filed its Second Amended Motion for Judgment. Consequently, the statute of limitations bars a claim on any such townhome which Winchester completed more than four years prior to September 16, 1991, i.e., before September 16, 1987.

The Court similarly concludes that Winchester has not properly alleged standing to bring suit concerning any townhome for which it had not yet acquired an assignment or subrogation rights as of September 16, 1991.

(b) Breach of Express Warranties

Concerning Count I, breach of express warranties, the Court sustains the Defendants’ Special Plea in Bar as tó Defendants Hoover Universal, Inc., Johnson Controls, Inc., Hoover Treated Wood Products, Inc., Mid-Atlantic Wood Preservers, Inc., Ply-Gem Industries, Inc., Timber Products Inspection, Inc., Reliance Wood Preservers, Inc., and Allied Plywood Corporation. The Court, however, overrules the Special Plea in Bar to Count I as to Defendants Osmose Wood Preserving, Inc., Chesapeake Corporation, and Applied Research Group, Inc., and finds that the alleged express warranties provided by these defendants must remain for factual inquiry.

Winchester contends that the causes of action for the alleged breaches of express warranties did not accrue upon delivery (at latest, upon completion of the townhome), but rather, upon discovery of the alleged breach of warranty. Winchester relies upon Virginia Code Section § 8.2-725, which provides that a cause of action for a breach of an express warranty of future performance of goods accrues upon discovery of the breach. Va. Code Ann. § 8.2-725(2) (1991).

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Bluebook (online)
27 Va. Cir. 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winchester-homes-inc-v-hoover-universal-inc-vaccfairfax-1992.