Jefferson v. Collins

• Decision Date: 26 September 2016
• Docket Number: Civil Action No. 12-239 (RBW)
• Citation: 210 F.Supp.3d 75
• Parties: David L. JEFFERSON and Naima A. Jefferson, Plaintiffs, v. Mark Nathan COLLINS, et al., Defendants.
• Court: U.S. District Court — District of Columbia

210 F.Supp.3d 75

David L. JEFFERSON and Naima A. Jefferson, Plaintiffs,

v.Mark Nathan COLLINS, et al., Defendants.

Civil Action No. 12-239 (RBW)

United States District Court, District of Columbia.

Signed September 26, 2016

Sean Paul Sherman, Little Mendelson, P.C., Washington, DC, for Plaintiff.

Sanford A. Friedman, Friedman Gupta, PLLL, Washington, DC, Seth Adam Robbins, Robbins Law Group, PLLC, Arlington, VA, Daniel C. Wennogle, Greenwood Village, CO, for Defendants.

MEMORANDUM OPINION

REGGIE B. WALTON, United States District Judge

The plaintiffs, David L. Jefferson and Naima A. Jefferson, bring this civil action against Mark Nathan Collins ("Collins") and B & C Homebuyers, LLC ("B & C Homebuyers"), collectively the "Seller Defendants," and Victor O. Villalobos ("Villalobos") and VB Platinum Tile & Carpet, Inc. dba Platinum Builders, Inc. ("Platinum Builders"), collectively the "Renovation Defendants," asserting claims for breach of contract, fraud, violation of the District of Columbia's Consumer Protection Procedures Act ("CPPA"), D.C. Code Ann. §§ 28–3901 to -3911 (West 2001), and other violations of District of Columbia ("District") law arising out of the plaintiffs' purchase of residential real estate located at 1121 Kalmia Road, N.W., Washington, D.C. (the "Property"). See generally Third Amended Complaint ("Third Am. Compl.") ¶¶ 8, 55–95. Currently pending before the Court are: (1) the Plaintiffs' Motion for Partial Summary Judgment ("Pls.' Mot."); (2) Defendants B & C Homebuyers and Mark Nathan Collins' Motion for Partial Summary Judgment ("Seller Defs.' Mot."); (3) Defendants Victor O. Villalobos's and VB Platinum Tile & Carpet, Inc.'s Motion for Partial Summary Judgment on Plaintiffs' Request for Veil Piercing/Alter Ego Relief ("Renovation Defs.' Alter Ego Mot."); (4) Defendants' Victor Villalobos's and VB Platinum Tile & Carpet's Motion for Summary Judgment on Count VII (Negligence) of Plaintiffs' Third Amended Complaint ("Renovation Defs.' Negligence Mot."); and (5) Defendants Victor O. Villalobos's and VB Platinum Tile & Carpet, Inc.'s Motion for Partial Summary Judgment on CPPA Claim ("Renovation Defs.' CPPA Mot."). Upon consideration of the parties' submissions, the Court will deny the plaintiffs' partial motion for summary judgment, grant in part and deny in part the Seller Defendants' partial motion for summary judgment, deny the Renovation Defendants' negligence and alter ego motions, and grant the Renovation Defendants' CPPA motion.¹

I. FACTUAL BACKGROUND

Although the Court will address additional facts relevant to each of the pending motions in greater detail below, see infra Part III, an overview of the parties' dispute is helpful to frame the issues presented for resolution by the Court. B & C Homebuyers is a Virginia limited liability company with its principal office in Fairfax, Virginia, which at the time of the events in issue, regularly conducted business in the District of Columbia. Pls.' Facts ¶¶ 5–6; Seller Defs.' Resp. to Pls.' Facts ¶¶ 5–6. Defendant Collins and a non-party named Adam Brown ("Brown") are B & C Homebuyers' principals. Pls.' Facts ¶ 6; Seller Defs.' Resp. to Pls.' Facts ¶ 6. In December 2010, B & C Homebuyers purchased the Property from a non-party to this dispute. Pls.' Facts ¶ 16; Seller Defs.' Resp. to Pls.' Facts ¶ 16. During the course of executing the purchase, the prior owner of the Property disclosed the existence of "some plumbing damage" resulting from the prior owner winterizing the property. Pls.' Facts ¶¶ 17–18; Seller Defs.' Resp. to Pls.' Facts ¶¶ 17–18. The Seller Defendants executed a waiver and release acknowledging the Property's condition and accepting the Property "as is." Pls.' Facts ¶ 19; Seller Defs.' Resp. to Pls.' Facts ¶ 17.

The Seller Defendants then hired Platinum Builders in February 2011 to renovate the Property. Pls.' Facts ¶ 22; Seller Defs.' Resp. to Pls.' Facts ¶ 19. Platinum Builders is a corporation organized under the laws of Florida, registered as a foreign corporation in Virginia, and has its principal office in Bristow, Virginia. Pls.' Facts ¶ 9; Renovation Defs.' Resp. to Pls.' Facts ¶ 9. Defendant Villalobos and his wife, Maria Betalleluez, are Platinum Builders' principals. Pls.' Facts ¶ 10; Renovation Defs.' Resp. to Pls.' Facts ¶ 10. Platinum Builders had a contractor license, and Villalobos had a home improvement salesperson license issued by the District. Pls.' Facts ¶ 15. Platinum Builders had previously worked with Collins on other renovation and remodeling projects on residential real estate in the District. Pls.' Facts ¶ 12; Renovation Defs.' Facts ¶ 12. The contract for the renovation of the Property included the performance of structural, plumbing, and electrical work. See Renovation Defs.' Alter Ego Mot., Exhibit ("Ex.") A at B & C/Collins 000405–06 ("contract" dated February 2011 listing within the "scope of work," inter alia , "redesign[ing] the top level to fit [two] full bathrooms and [three] bedrooms," "remov[ing a] wall between [the] kitchen and dining room," and adding recessed lighting on the main and basement levels of the Property). However, only a demolition permit was acquired in connection with the renovation of the Property. See Pls.' Facts ¶ 24; Renovation Defs.' Resp. to Pls.' Facts ¶ 24. Platinum Builders hired as a subcontractor Ruben Zegarra ("Zegarra"), an individual "who lacked home improvement, electrical, plumbing, and mechanical licenses in the District," to perform some of the renovation work. Pls.' Facts ¶ 37; Renovation Defs.' Resp. to Pls.' Facts ¶ 37. Zegarra later sued the Renovation Defendants in a separate proceeding in the Superior Court of the District of Columbia arising out of his work on the Property. See Pls.' Opp'n to Renovation Defs.' Mots., Ex. 2 at J00003142 (Complaint, Zegarra v. Platinum Builders, Inc. & Victor Villalobos , No. 3875–11 (May 16, 2011) (the "Zegarra proceeding")).

In April 2011, prior to the completion of the renovation of the Property, B & C Homebuyers signed a Seller's Disclosure Statement. See Pls.' Mot., Ex. 9 (Seller's Disclosure Statement ("Disclosure Statement")) at J00000022–28. The Disclosure Statement indicated that B & C Homebuyers did not have actual knowledge of any water leaks into the basement of the Property; any plumbing, structural, or electrical defects; or the presence of asbestos on the Property. Id. , Ex. 9 (Disclosure Statement) at J00000025–27. Two months later, in June 2011, the Seller Defendants placed the Property on the market for sale. Pls.' Facts ¶ 51; Seller Defs.' Resp. to Pls.' Facts ¶ 48. The plaintiffs visited the Property in July 2011 and subsequently entered into a contract to purchase the Property from the Seller Defendants. Pls.' Facts ¶ 52; Seller Defs.' Resp. to Pls.' Facts ¶ 49; Pls.' Mot., Ex. 9 (Regional Sales Contract) at J00000837–46. Although the parties dispute whether the April 2011 Disclosure Statement was part of the contract for the sale of the Property, see Seller Defs.' Resp. to Pls.' Facts ¶¶ 49–50, the Disclosure Statement was nonetheless provided to the plaintiffs in connection with the sale of the Property, Pls.' Mot., Ex. 9 (Disclosure Statement) at J00000028 (signature page showing the plaintiffs' signatures dated July 25, 2011).

On July 31, 2011, the plaintiffs had the Property inspected by a home inspection company, Pls.' Facts ¶ 54; Seller Defs.' Resp. to Pls.' Facts ¶ 51, and on or around August 3, 2011, an addendum was added to the Regional Sales Contract requiring the Seller Defendants to make several repairs, including repairs of the Property's electrical system, see Pls.' Facts ¶ 55; Seller Defs.' Resp. to Pls.' Facts ¶ 52. The record indicates that a company named Green's Electric was hired to perform the electrical repairs. See Pls.' Facts ¶¶ 56–58; Seller Defs.' Resp. to Pls.' Facts ¶¶ 53–55. On August 17, 2011, plaintiff David Jefferson was informed by telephone that B & C Homebuyers had agreed to install a "heavy up" on the Property's electrical system and to "address the remaining electrical problems." Pls.' Facts ¶ 60; Seller Defs.' Resp. to Pls.' Facts ¶ 57. Settlement for the purchase of the Property occurred that same day. Pls.' Facts ¶ 61. It is disputed whether the repairs to the Property's electrical system were completed. See Seller Defs.' Resp. to Pls.' Facts ¶¶ 58, 60 (asserting that the "heavy up" was completed).

The plaintiffs allege that they subsequently discovered several defects in the Property, including the presence of asbestos, electrical and HVAC problems, and defects in the Property's plumbing that resulted in sewer gases escaping into the bathroom. Third Am. Compl. ¶¶ 35–38, 40. The plaintiffs also allege that the defendants renovated the Property without obtaining all required construction permits from the District. Id. ¶¶ 51–52. As a result of the alleged defects, the plaintiffs have been required to expend "significant sums" of money to repair the defects. Id. ¶ 42.

II. STANDARD OF REVIEW

On a motion for summary judgment, Federal Rule of Civil Procedure 56 requires the Court to find that "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Summary judgment must be granted against a party "who fails to make a showing sufficient to establish the existence of an element essential to that party's case, and on which that party will bear the burden of proof at trial." Celotex Corp. v. Catrett , 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A material fact is one that "might affect the outcome of the suit under the governing law." Anderson v. Liberty Lobby , 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). And, "a dispute is ‘genuine’ if ‘the evidence is such that a reasonable jury could return a verdict for the nonmoving party.’ " Arrington v. United States , 473 F.3d 329, 333 (D.C.Cir.2006) (quoting Anderson , 477 U.S. at 248, 106 S.Ct. 2505 ). The moving party...