Quality Properties Asset Mgmt. Co. v. Trump Virginia Acquisitions, LLC
| Decision Date | 16 August 2012 |
| Docket Number | CIVIL ACTION NO. 3:11-CV-00053 |
| Court | U.S. District Court — Western District of Virginia |
| Parties | QUALITY PROPERTIES ASSET MANAGEMENT COMPANY, Plaintiff and Counter Defendant, v. TRUMP VIRGINIA ACQUISITIONS, LLC, ET AL., Defendants and Counter Claimants, v. BANK OF AMERICA, N.A., ET AL., Counter Defendants. |
NORMAN K. MOON
The facts here present this question: Can a party hold a right of first refusal after the owner of the land benefitted by that right subdivided the land and distributed the subdivided parcels to several owners? Given the particular facts of this case, the right of first refusal, which was reserved to "the then current owner" of a single, unified parcel of benefitted land, has been extinguished.
Plaintiff seeks a declaratory judgment regarding a right of first refusal recorded in a June 1990 quitclaim deed conveying property in Albemarle County to Ms. Patricia Kluge. By that deed, JWK Properties, Inc. (also "JWK Properties," or "JWK") conveyed to Ms. Kluge a 9.904 acre parcel, then known as Tax Map 102, Parcel 35 ("tax map parcel 102-35," or "TMP 102-35"). The quitclaim deed retained a right of first refusal in the 9.904 acre parcel, vested in "thethen current owner" of a much larger parcel that surrounded the 9.904 acre tract. The quitclaim deed refers to the surrounding parcel as the "Burdened Land" because it was burdened by easements that benefit the embedded 9.904 acre tract, but the Burdened Land carried the benefit of the right of first refusal (also the "right," or the "ROFR").
The matter is now before me on consideration of the parties'1 cross motions for judgment on the pleadings (docket nos. 54, 56, & 69).2 Plaintiff seeks a declaration that the right of first refusal no longer exists, and thus Defendants have no right to purchase the 9.904 acre parcel and manor house (the "Main House Tract") acquired by Plaintiff through the foreclosure sale of a 97.98 acre parcel that comprises the 9.904 acre Main House Tract plus an additional 88.076 acres, a portion of which was formerly acreage within the Burdened Land.3 Defendants, who presently own a substantial portion (but not all) of the Burdened Land, and who did not own any of it at the time of the foreclosure sale, claim to hold the right of first refusal on the Main House Tract. They seek an order setting aside the foreclosure sale; an injunction against any furthersale of the Main House Tract; an order conveying the Main House Tract to Trump Acquisitions for a price to be determined by the court; and an injunction enforcing the purported right of first refusal.
I find that "the then current owner of the Burdened Land" extinguished the right by subdividing the Burdened Land, i.e., the land benefitted by the right, and distributing smaller parcels of it to diverse owners. Defendants cannot claim that their present possession of the greater portion of the Burdened Land reconstitutes the right of first refusal, because Plaintiff also owns a portion of the Burdened Land bordering the Main House Tract, and thus Defendants cannot be "the" current owner of "the" Burdened Land. Indeed, at the time of the foreclosure sale, Defendants were not "the then current owner of" any of "the Burdened Land." Accordingly, I will grant the motions filed by Plaintiff and Counter Defendants (docket nos. 54 & 56), and I will deny Defendants' motion (docket no. 69).
A motion for judgment on the pleadings under Federal Rule of Civil Procedure 12(c) may be made "after the pleadings are closed but early enough not to delay trial." Fed. R. Civ. P. 12(c). A motion for judgment on the pleadings is appropriate when there are no genuine issues of material fact, and "only questions of law remain." Virginia Imports v. Kirin Brewery of America, 296 F. Supp. 2d 691, 695 (E.D. Va. 2003).
To ensure that each litigant receives a full and fair hearing, courts will not grant a Rule 12(c) motion "unless the movant clearly establishes that no material issue of fact remains to be resolved and that he is entitled to judgment as a matter of law." O'Ryan v. Dehler Mfg. Co., Inc., 99 F. Supp. 2d 714, 718 (E.D. Va. 2000). "Judgment should be entered when the pleadings,construing the facts in the light most favorable to the non-moving party, fail to state any cognizable claim for relief, and the matter can, therefore, be decided as a matter of law." Id. (citing Zeran v. America Online, Inc., 129 F.3d 327, 329 (4th Cir. 1997)); see also 5C Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1368 (3d ed. 2004) (). Thus, the standard of review for a Rule 12(c) motion is the same as the standard for a motion to dismiss under Rule 12(b)(6). See Burbach Broadcasting Co. of Del. v. Elkins Radio, 278 F.3d 401, 406 (4th Cir. 2002).
When considering a motion to dismiss for failure to state a claim upon which relief can be granted, I apply the pleading standard refined by Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007), and Ashcroft v. Iqbal, 556 U.S. 662 (2009). See also Fed. R. Civ. P. 12(b)(6), Fed. R. Civ. P. 8. The non-moving party must have alleged facts that "state a claim to relief that is plausible on its face," i.e., facts that "have nudged their claims across the line from conceivable to plausible." Twombly, 550 U.S. at 570. A claim is plausible if the complaint contains "factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged," and if there is "more than a sheer possibility that a defendant has acted unlawfully." Iqbal, 556 U.S. at 678 (citing Twombly, 550 U.S. at 556). The following long-held rule still stands: "in evaluating a Rule 12(b)(6) motion to dismiss, a court accepts all well-pled facts as true and construes these facts in the light most favorable to the [non-moving party] in weighing the legal sufficiency of the complaint." Nemet Chevrolet, Ltd. v. Consumeraffairs.com, Inc., 591 F.3d 250, 255 (4th Cir. 2009) (citations omitted).
While extrinsic evidence is generally not to be considered at the Rule 12(b)(6) stage, "acourt may consider official public records, documents central to plaintiff's claim, and documents sufficiently referred to in the complaint so long as the authenticity of these documents is not disputed." Witthohn v. Fed. Ins. Co., 164 Fed. App'x. 395, 396-97 (4th Cir. 2006); see also Blankenship v. Manchin, 471 F.3d 523, 526 n. 1 (4th Cir. 2006) (citations omitted). Factual admissions by parties are, as a general rule, binding as judicial admissions, see New Amsterdam Casualty Company v. Waller, 323 F.2d 20, 24-25 (4th Cir. 1963), and the parties' exhibits, which are not in dispute, do not present matters outside the pleadings. Accordingly, I need not exercise my discretion to convert the Rule 12(c) motion into a Rule 56 motion. See Bosiger v. U.S. Airways, 510 F.3d 442, 450 (4th Cir. 2007) ().
The following facts are established by the pleadings, which include the parties' admissions and undisputed exhibits that do not present matters outside the pleadings and to which the parties have lodged no objections.
In 1984, John W. Kluge and Patricia M. Kluge, as husband and wife, conveyed multiple tracts of land they owned in Albemarle County to JWK Properties, Inc.4 This conveyance included the land that would eventually become known as the Main House Tract and the surrounding parcel of land, the so-called "Burdened Land." By 1990, a large mansion, styled as "Albemarle House," had been built on the Main House Tract, and around 1990, John and PatriciaKluge divorced.
On June 13, 1990, JWK executed a quitclaim deed conveying the Main House Tract to Patricia Kluge, "feme sole."5 The quitclaim deed described the Main House Tract as a parcel "containing 9.904 acres, more or less," "a portion of the property conveyed to JWK Properties by Deed of John W. Kluge, et al., dated December 10, 1984, of record in the Clerk's Office of the Circuit Court of Albemarle County in Deed Book 824, page 63, to which reference is hereby made (the 'Property')." The quitclaim deed reserved a right of first refusal over the Main House Tract in favor of the Burdened Land, a large parcel of land generally surrounding the Main House Tract or, to put it another way, a large parcel of land within which the Main House Tract was more or less embedded. As I have previously stated, the so-called Burdened Land was described as such because it was burdened by easements that benefit the Main House Tract, but it was in fact benefitted by the right of first refusal. The deed defines the Burdened Land as "the lands of JWK Properties, currently shown as Parcel 35A on Albemarle County Tax Map 102."
Pertinent to the right of first refusal at issue in this case, the quitclaim deed of June 13, 1990, provides as follows:
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