Bennett v. Skyline Corp.
| Decision Date | 03 October 2014 |
| Docket Number | Civil Action No. 1:14CV129. |
| Citation | 52 F.Supp.3d 796 |
| Court | U.S. District Court — Northern District of West Virginia |
| Parties | Gabriel BENNETT and Tiffany Bennett, Plaintiffs, v. SKYLINE CORPORATION, Bob's Quality Homes, Inc., and Belpre Savings Bank, Defendants. |
Cameron Scott McKinney, David L. Grubb, The Grubb Law Group, Charleston, WV, for Plaintiffs.
John R. Teare, Jr., Spilman Thomas & Battle PLLC, Charleston, WV, Kelly Little Guice, Bowles, Rice, McDavid, Graff & Love, Parkersburg, WV, for Defendants.
Pending before the Court is the motion to dismiss (dkt. no. 10) filed by defendant Skyline Corporation (“Skyline”). For the following reasons, the Court DENIES in part Skyline's motion to dismiss as to Counts One, Two, Three, Four, Six, Eight, and Nine; GRANTS in part Skyline's motion to dismiss as to Count Six insofar as it purports to state a stand alone claim for breach of the duty of good faith, and as to Counts Five, Seven, Ten, Eleven, and Twelve, and dismisses those counts without prejudice; and GRANTS the Bennetts' motion for leave to amend Counts Three and Four.
Skyline is an Indiana corporation that manufactures home components. Home builders such as co-defendant Bob's Quality Homes, Inc. (“Bob's Quality Homes”) purchase manufactured home components from Skyline, and then build a home from those components for purchasers. Skyline provides an express warranty guaranteeing that its manufactured home components are free from manufacturing defects.
Plaintiffs Gabriel and Tiffany Bennett (“the Bennetts”) purchased a new home from Bob's Quality Homes on April 18, 2013. Bob's Quality Homes represented itself to the Bennetts as an authorized Skyline dealer/agent. The Bennetts entered into a loan agreement with co-defendant Belpre Savings Bank (“Belpre”) to pay for the new home.
When the Bennetts purchased their new home, they informed Bob's Quality Homes that they needed the home to be delivered and ready for occupancy by a certain date. Although Bob's Quality Homes guaranteed the Bennetts that the home would be delivered and installed within the desired time frame, it did not complete the installation process on time. When the home installation began to go awry, the Bennetts instructed Belpre to refrain from disbursing loan funds to Bob's Quality Homes. Despite the Bennetts' instructions, Belpre disbursed the loan funds.
In addition, Bob's Quality Homes allegedly damaged and failed to properly install the home. When the Bennetts were finally able to occupy their new home, they found nonconformities stemming from the manufacture, delivery, and installation of the home that substantially impaired their enjoyment of their new home.
At that point, the Bennetts contacted Bob's Quality Homes and Skyline to request that they undertake repairs pursuant to any applicable warranties. Bob's Quality Homes and Skyline, however, failed to repair the home in a timely fashion. The Bennetts notified Bob's Quality Homes, Skyline, and Belpre of their rejection and/or revocation of acceptance of the home.
The Bennetts filed suit in the Circuit Court of Calhoun County, West Virginia, on June 26, 2014. (Dkt. No. 1 at 1). The Bennetts' complaint included twelve claims:
Skyline filed a notice of removal on August 5, 2014. (Dkt. No. 1). In its notice of removal, Skyline alleged that this Court has original jurisdiction under 28 U.S.C. § 1332(a) based on diversity of citizenship. (Dkt. No. 1 at 2). The Bennetts are citizens of West Virginia and reside in Calhoun County, West Virginia. Bob's Quality Homes is an Ohio corporation with its principal place of business in Ohio; Belpre is an Ohio corporation with its principal place of business in Ohio; and Skyline is an Indiana corporation with its principal place of business in Indiana. Id. The price of the modular home components used to construct the Bennetts' home, standing alone, exceeds the jurisdictional threshold of $75,000.00. Id. at 3. Co-defendants Belpre and Bob's Quality Homes consented to removal. (Dkt. No. 1–1 at 1–2).
On September 10, 2014, Skyline filed a motion to dismiss the Bennetts' complaint for failure to state a claim upon which relief can be granted. Specifically, it argues that the Bennetts failed “to plead fraud with specificity,” failed “to satisfy the statutory prerequisite to the filing of their West Virginia Consumer Credit and Protection Act claim,” failed to allege a recognized cause of action for the breach of the duty of good faith and fair dealing, and failed to state “facts sufficient to state a claim upon which relief can be granted.” (Dkt. No. 10 at 1, Dkt. No. 11 at 2).
On September 24, 2014, the Bennetts filed a response opposing Skyline's motion to dismiss, or in the alternative, seeking leave to amend any deficiencies in their complaint. (Dkt. No. 17). On October 1, 2014, Skyline filed a reply brief. (Dkt. No. 19). The parties have had the opportunity of full briefing, and the motions are ripe for review.
In reviewing the sufficiency of a complaint, a district court “ ‘must accept as true all of the factual allegations contained in the complaint.’ ” Anderson v. Sara Lee Corp., 508 F.3d 181, 188 (4th Cir.2007) (quoting Erickson v. Pardus, 551 U.S. 89, 94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007) ). However, while a complaint does not need detailed factual allegations, a plaintiff's obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Indeed, courts “are not bound to accept as true a legal conclusion couched as a factual allegation.” Papasan v. Allain, 478 U.S. 265, 286, 106 S.Ct. 2932, 92 L.Ed.2d 209 (1986).
In considering whether the facts alleged are sufficient, “a complaint must contain ‘enough facts to state a claim to relief that is plausible on its face.’ ” Anderson, 508 F.3d at 188 (quoting Twombly, 550 U.S. at 547, 127 S.Ct. 1955 ). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). This requires “more than a sheer possibility that a defendant has acted unlawfully.” Id.
The Bennetts seek leave to amend their complaint if it is deficient. (Dkt. No. 17 at 1). A plaintiff can amend a pleading one time, as a matter of course, before the defendant files a responsive pleading. Fed. R. Civ. Pro. 15(a). After a responsive pleading is filed, a party may amend its pleading Fed. R. Civ. Pro. 15(a)(2). The Fourth Circuit has interpreted 15(a) to require that “leave to amend a pleading should be denied only when the amendment would be prejudicial to the opposing party, there has been bad faith on the part of the moving party, or the amendment would have been futile.” Johnson v. Oroweat Foods Co., 785 F.2d 503, 509 (4th Cir.1986) (citing Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 230, 9 L.Ed.2d 222 (1962) ).
A court should deny leave to amend on the ground of futility only “when the proposed amendment is clearly insufficient or frivolous on its face.” Johnson, 785 F.2d at 510. Conjecture about the underlying merits of the litigation should not enter into the court's decision as to whether to allow an amendment. Davis v. Piper Aircraft, 615 F.2d 606, 613–14 (4th Cir.1980).
In Count One of the complaint, the Bennetts seek cancellation of contract by rejection. (Dkt. No. 1–2 at 6). West Virginia's version of the Uniform Commercial Code (“UCC”) provides that W. Va.Code § 46–2–602(1). See Shreve v. Casto Trailer Sales, Inc., 150 W.Va. 669, 149 S.E.2d 238, 242 (1966) ().
Reasonableness is defined under the UCC as dependent on “the nature, purpose, and circumstances of the action.” W. Va.Code § 46–1–205(a). The Supreme Court of Appeals of West Virginia has held that whether a party gave notice of rejection within a reasonable time is a question of fact for the jury to decide. City Nat. Bank of Charleston v. Wells, 181 W.Va. 763, 384 S.E.2d 374, 381 (1989).
Skyline does not argue that the Bennetts' rejection was unreasonable, but instead alleges that, contrary to the allegations in the complaint, the Bennetts did not reject delivery of their home at all. (Dkt. No. 11 at 3). Skyline points out that the complaint identifies neither the date nor the manner of rejection. Id.
However, at the motion to dismiss stage, the sole inquiry is whether a plaintiff has pleaded sufficient facts to allege a plausible claim for relief. Here, the Bennetts did so. In their...
To continue reading
Request your trial