Thomas E. Scarr, Esq.
Charles G. Johnson, Esq.
Scott D. Maddox, Esq.
Johnson, Simmerman & Broughton, L.C.
Jenkins Fenstermaker, PLLC
Clarksburg, West Virginia
Huntington, West Virginia
Attorney for Appellants
Attorneys for Appellee
The Opinion of the Court was delivered PER CURIAM.
JUDGE GARY JOHNSON, sitting by special assignment.
JUSTICE SCOTT did not participate in the decision of the Court.
SYLLABUS BY THE COURT
1. Summary judgment is appropriate if, from the totality of the evidence
presented, the record could not lead a rational trier of fact to find for the nonmoving party,
such as where the nonmoving party has failed to make a sufficient showing on an essential
element of the case that it has the burden to prove. Syllabus Point 2, Williams v. Precision
Coil, Inc., 194 W.Va. 52, 459 S.E.2d 329 (1995).
2. The mere fact that parties do not agree to the construction of a contract
does not render it ambiguous. The question as to whether a contract is ambiguous is a
question of law to be determined by the court. Syllabus Point 1, Berkeley County Public
Service District, etc. v. Vitro Corporation of America, 152 W.Va. 252, 162 S.E.2d 189
(1968).
3. Compensatory damages recoverable by an injured party incurred
through the breach of a contractual obligation are those as may fairly and reasonably be
considered as arising naturally -- that is, according to the usual course of things -- from the
breach of the contract itself, or such as may reasonably be supposed to have been in the
contemplation of both parties at the time they made the contract as the probable result of its
breach. Syllabus Point 2, Kentucky Fried Chicken of Morgantown, Inc. v. Sellaro, 158
W.Va. 708, 214 S.E.2d 823 (1975).
Per Curiam:
Appellants and defendants below, Center Designs, Inc., Parkland Development,
Inc., William Abruzzino and Rebecca Abruzzino (Abruzzinos) appeal the entry of
summary judgment by the Circuit Court of Greenbrier County in favor of the appellee and
plaintiff below, Supervalu Operations, Inc., d/b/a Supervalu-Milton Division (Supervalu).
The summary judgment was entered against the Abruzzinos after Supervalu filed a suit to
obtain a declaratory judgment interpreting a lease between the Abruzzinos, the lessors of a
certain commercial property, and Supervalu,See footnote 1
1
the lessee.
Both Supervalu and the Abruzzinos filed motions for summary judgment. Both
parties argued that no questions of material fact remained, and that the matter was mature for
judgment. The circuit court entered an order on May 14, 1998 granting summary judgment
in favor of Supervalu. The appellants' motion for summary judgment was denied in the same
order. The circuit court subsequently entered an order on January 15, 1999 awarding
damages to Supervalu.
The Abruzzinos appeal both the entry of summary judgment in favor of the
appellee and the judgment order. The appellants argue that the court erroneously applied the
rules of construction to the lease in question, and that the court erred in its award of
damages. Following our review of this matter we find that the circuit court did not err, and
we affirm.
I.
The facts in this case are substantially undisputed. The Abruzzinos are the
owners of a certain piece of commercial real estate located in Greenbrier County, West
Virginia. On June 28, 1971, the Abruzzinos entered into a lease with Kroger, a grocery
chain, for the commercial property. Pursuant to the lease the Abruzzinos were required to
construct a building on the property which was to be used by Kroger as a grocery store. The
lease was for 15 years.
Before the lease expired, Kroger decided it required a larger facility and began
construction of a new building in 1979, on a separate property. The Abruzzinos were
contacted by Marshall Grizzell (Grizzell), who operated several Foodland grocery stores,
and who was interested in the building that Kroger had been leasing. Grizzell operated
stores under a franchise agreement with Fox Grocery Company, which later became
Supervalu Operations, Inc.
On February 5, 1980, the Abruzzinos entered into a lease with Fox Grocery
Company (now Supervalu). The Abruzzino-Fox lease required that the Lessor shall repair
and maintain only the structural integrity of the demised premises . . . [and] Lessee, at its
expense, shall perform all other repairs, replacements, maintenance and redecoration of thedemised premise[.]See footnote 2
2
Grizzell began operating a grocery store at the Abruzzinos' property
through a sub-lease agreement with Fox Grocery Company.
During the 1980's Grizzell operated a Foodland grocery store and maintained
the premises. During the time that Grizzell utilized the leased property, the building
developed a leaky roof. Grizzell contacted the Abruzzinos concerning a small leak and the
Abruzzinos had a service crew to make minor repairs to the roof. Grizzell, in his deposition,
stated that he recalled paying the Abruzzinos for this service, but William Abruzzino, in his
deposition, stated that he had the service performed as a favor to Grizzell.
In June of 1991, Grizzell ceased operating the Foodland store. Stephen
Meadows (Meadows) then sub-let with Fox Grocery Company to continue the operation
of the Foodland store on the property.
On September 13, 1991, Meadows, on behalf of the appellee, contacted the
Abruzzinos by letter and requested that several repairs be made to the leased premises,
including repair to the flat roof. Meadows testified in his deposition that he believed the
condition of the roof represented a potential danger to his customers and merchandise. Upon
receipt of the letter, the Abruzzinos denied that the lease required that they repair the roof.
Meadows subsequently contacted several contractors about making the roof repairs.
Upon receipt of several contractors' bids, Meadows forwarded the information
to the Abruzzinos and advised the Abruzzinos that unless they acted within 30 days,
Meadows would select a contractor to do the work and proceed under the lease as if the
Abruzzinos were in default.See footnote 3
3
The Abruzzinos took no action, so, in 1993, Meadows selected
a contractor to repair the roof. The repair required work on the roof membraneSee footnote 4
4
of the
building. The repairs cost Meadows $31,675.00 for the roof and $600.00 for roof drains.
Following the completion of the repairs, Meadows contacted the Abruzzinos
and informed them that he was going to exercise his right to set-off the costs as contemplated
by the lease.See footnote 5
5
The Abruzzinos notified Meadows that they did not consider the roof
membrane to be part of the structural integrity of the building, and that they would
consider taking a set-off as a default on the part of the appellee.
The matter went unresolved for some time. Finally, in 1997, Supervalu, the
appellee, filed a suit to obtain a declaratory judgment interpreting the February 5, 1980 lease.
Subsequent to the filing of the declaratory judgment action, sometime in 1998,
the roof again needed repairs because the 1993 repair work failed. The contractor who had
performed the earlier work had filed for bankruptcy, so the appellee sought another
contractor to repair the roof. Meadows, as an agent for the appellee, obtained bids for the
work and again forwarded the bids to the Abruzzinos requesting that the Abruzzinos choose
a contractor to perform the repair work. The Abruzzinos again declined to repair the roof.
In the declaratory judgment action filed by appellee, both parties waived their
right to a jury trial, and both parties filed motions for summary judgment. Upon a review
of the briefs and the record before it, the circuit court found in favor of the appellee
Supervalu, and by order dated May 14, 1998, held that the lease required the Abruzzinos to
repair the roof. On January 15, 1999, the circuit court entered a second order for
clarification of its May 14, 1998 order, holding that the Abruzzinos were liable for
$32,275.00, plus interest . . . . [and] all future repairs of the roof during the life of the
lease[.] It is from these orders that the Abruzzinos appeal.
The Abruzzinos, on appeal, now argue that genuine issues of material fact
remain and that the circuit court erred in granting summary judgment to Supervalu. The
Abruzzinos also argue that the circuit court erred in its construction of the contract, and in
requiring the Abruzzinos to pay for all past and future repairs to the roof.
II.
This case was decided below on motions for summary judgment filed by both
parties, each informing the court that there existed no genuine issues of fact. In cases of
summary judgment, we are guided by W.Va. R.C.P. 56 and the related case law concerning
motions for summary judgment. Our standard of review is well established that [a] circuit
court's entry of summary judgment is reviewed de novo. Syllabus Point 1, Painter v.
Peavy, 192 W.Va. 189, 451 S.E.2d 755 (1994).
A motion for summary judgment should be granted only when it is clear that
there is no genuine issue of fact to be tried and inquiry concerning the facts is not desirable
to clarify the application of the law. Syllabus Point 3, Aetna Casualty & Surety Co. v.
Federal Insurance Co. of New York, 148 W.Va. 160, 133 S.E.2d 770 (1963). We have also
stated:
Summary judgment is appropriate if, from the totality of the
evidence presented, the record could not lead a rational trier of
fact to find for the nonmoving party, such as where the
nonmoving party has failed to make a sufficient showing on an
essential element of the case that it has the burden to prove.
Syllabus Point 2, Williams v. Precision Coil, Inc., 194 W.Va. 52, 459 S.E.2d 329 (1995).
The Abruzzinos argue that the circuit court erred in granting summary
judgment to the appellee because genuine issues of fact remained to be tried. However, the
Abruzzinos, in their motion for summary judgment submitted to the circuit court, argued
there were no genuine issues remaining and that the matter was ripe for judgment. The
Abruzzinos' brief in support of their motion for summary judgment also argued that the
relevant language in the lease was clear and unambiguous and no additional evidence needed
to be taken to clarify the issues. However, upon receiving an adverse ruling in the circuit
court, the Abruzzinos now assert on appeal that there exist genuine issues of fact to be tried.
The Abruzzinos admit that they have switched their earlier position, but argue that no
genuine issues of fact would exist if the circuit court had interpreted the lease according to
their theory of the case.
The Abruzzinos now contend that the circuit court misapplied the rules of
construction in interpreting the lease provisions and assert that the term structural integrity
is ambiguous requiring the examination of the parties' intent in drafting the document.
We have stated that [t]he mere fact that parties do not agree to the
construction of a contract does not render it ambiguous. The question as to whether a
contract is ambiguous is a question of law to be determined by the court. Syllabus Point
1, Berkeley County Public Service District, etc. v. Vitro Corporation of America, 152 W.Va.
252, 162 S.E.2d 189 (1968). We hold to the general principle that:
Contract language usually is considered ambiguous where an
agreement's terms are inconsistent on their fact or where the
phraseology can support reasonable differences of opinion as to
the meaning of the words employed and obligation undertaken.
Fraternal Order of Police v. Fairmont, 196 W.Va. 97, 101, 468 S.E.2d 712, 716 (1996).
If the contract language is found to be unambiguous then [i]t is the safest and
best mode of construction to give words, free from ambiguity, their plain and ordinary
meaning. Syllabus Point 3, Bennett v. Dove, 166 W.Va. 772, 277 S.E.2d 617 (1981).
The Abruzzinos argue that the language in the contract is ambiguous with
regard to the term structural integrity and the court therefore erred in granting summary
judgment in favor of the appellee.
To aid in the construction of a contract, we have held:
Extrinsic evidence may be used to aid in the construction of a
contract if the matter in controversy is not clearly expressed in
the contract, and in such case the intention of the parties is
always important and the court may consider parol evidence in
connection therewith with regard to conditions and objections
relative to the matters involved. However, where the language
of a contract is clear the language cannot be construed and must
be given effect and no interpretation thereof is permissible.
Syllabus Point 2, Berkeley County Public Service District, etc. v. Vitro Corporation of
America, 152 W.Va. 252, 162 S.E.2d 189 (1968).
The Abruzzinos assert to this Court that the term structural integrity is
subject to different interpretations, and that a non-load-bearing roof membrane should not
be considered part of the structural integrity. Because of this alleged ambiguity the
Abruzzinos now argue that the court should have considered extrinsic evidence and that the
intent of the parties should control.
We note that the lease provided that the Lessee may make . . . nonstructural
additions to the interior of the demised premises . . . . [but] Lessee shall make no alterations,
additions or changes whatsoever to the exterior of the demised premises without first
obtaining the prior written consent of the Lessor.See footnote 6
6
The lease further provides that the
Lessor shall repair and maintain only the structural integrity of the demised premises[.]See footnote 7
7
The lease, in essence, prohibits the lessee from making any changes to the exterior of the
building, but does permit making non-structural changes to the interior. The lease further
places the responsibility for structural integrity on the lessor. Common sense dictates that
the roof of a building contributes substantially to its structural integrity.
It is clear that the lease requires the Abruzzinos to maintain the soundness of
the roof as part of the structural integrity of the building. We find, therefore, that the circuit
court did not err in granting summary judgment in favor of the appellee.
We next turn to the issue of damages. The Abruzzinos argue that they should
not be held responsible for the repairs of the roof.
Regarding damages for a breach of a contract we have held:
Compensatory damages recoverable by an injured party
incurred through the breach of a contractual obligation are those
as may fairly and reasonably be considered as arising naturally
-- that is, according to the usual course of things -- from the
breach of the contract itself, or such as may reasonably be
supposed to have been in the contemplation of both parties at
the time they made the contract as the probable result of its
breach.
Syllabus Point 2, Kentucky Fried Chicken of Morgantown, Inc. v. Sellaro, 158 W.Va. 708,
214 S.E.2d 823 (1975).
The Abruzzinos admitted in deposition that the work performed on the roof
was reasonable and necessary. The circuit court determined that the repair costs assumed
by the appellee were necessary to maintain the structural integrity of the building. The
circuit court also determined that the appellants were to be liable for all past and future
repairs to the building during the life of the lease. For direct damages there is no
requirement that the parties must have actually anticipated them because they are a natural
consequence of the breach. Syllabus Point 2, in part, Desco Corp. v. Harry W. Trushel
Const., 186 W.Va. 430, 413 S.E.2d 85 (1991).
We find that the roof repairs were directly related to and necessitated by the
Abruzzinos' breach of the lease. We therefore find that the circuit court did not err in
ordering the Abruzzinos to reimburse the appellee and further requiring that the Abruzzinos
undertake all future repairs of the roof.
III.
In conclusion, we find that the circuit court did not err in granting summary
judgment and in awarding damages to the appellee, Supervalu Operations, Inc.
1The February 5, 1980 lease was between the appellants and Fox Grocery Company, a West Virginia Corporation. Supervalu Operations, Inc. is a successor in interest of Fox Grocery Company.
Footnote: 2
2The lease provided the following:
14. Lessee may make such nonstructural alterations to the
interior of the demised premises as it may desire from time to
time at its sole cost and expense . . . . Lessee shall make no
alterations, additions or changes whatsoever to the exterior of
the demised premises without first obtaining the prior written
consent of the Lessor.
15. Lessor shall repair and maintain only the structural integrity
of the demised premises and only so long as the need for any
such structural repair or maintenance does not arise as a result
of the Lessee's acts or negligence. Lessee, at its expense, shall
perform all other repairs, replacements, maintenance and
redecorating of the demised premises, including all repairs to
plate glass.
Footnote: 3
3The lease provided the following:
Default by Lessor: 24. Lessee shall give Lessor written
notice of any default by Lessor in the performance of any
covenant or obligation to be kept or performed hereunder, and
if such default continued for a period of thirty (30) days after
receipt by Lessor of the written notice from Lessee specifying
such default, then and in such event, Lessee at its election may
declare this Lease terminated and void and vacate demised
premises within an additional period of thirty (30) days, paying
rent only to the date of said vacating; provided, nevertheless,
that if Lessor in good faith has made efforts to correct such
default within such initial thirty (30) days period but due to the
nature of the cure of such default Lessor has been unable to
complete such cure, Lessee shall not declare this Lease
terminated so long as Lessor continue in good faith toward such
cure provided, nevertheless, that is such default by Lessor can
be cured by the payment of money, Fox, at its election, may
spend such money as is reasonable necessary to cure.
Footnote: 4 4A roof is comprised of three basic elements: a steel frame or web of bar joists, metal decking and the exterior fabric of the roof or roof membrane.
Footnote: 5 5See supra note 3.
Footnote: 6 6See supra note 2.
Footnote: 7 7See supra note 2.