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671 S.E.2d 658
IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA
September 2008 Term
CHARLES & KATHRYN BEAHM, et al.,
Plaintiffs Below, Appellants,
7-ELEVEN, INC. and MELISSA SPINKS,
Defendants Below, Appellees.
Appeal from the Circuit Court of Jefferson County
Honorable David H. Sanders, Judge
Case No. 03-C-13
Submitted: September 9, 2008
Filed: September 26, 2008
| Paul G. Taylor, Esq.
Martinsburg, West Virginia
Attorney for Appellants
| Charles F. Printz, Jr., Esq.
Brian M. Peterson
Bowles Rice McDavid Graff & Love, LLP
Martinsburg, West Virginia
Attorney for Appellees
The Opinion of the Court was delivered PER CURIAM.
JUSTICE STARCHER dissents and reserves the right to file a dissenting opinion.
JUSTICE ALBRIGHT did not participate in the issuance of this opinion.
SYLLABUS BY THE COURT
1. 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 Co. v. Federal Co., 148 W. Va.
160, 133 S.E.2d 770 (1963).
2. 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).
3. Before the prosecution of a lawsuit may be barred on the basis of res judicata,
three elements must be satisfied. First, there must have been a final adjudication on the
merits in the prior action by a court having jurisdiction of the proceedings. Second, the two
actions must involve either the same parties or persons in privity with those same parties.
Third, the cause of action identified for resolution in the subsequent proceeding either must
be identical to the cause of action determined in the prior action or must be such that it could
have been resolved, had it been presented, in the prior action. Syllabus Point 4, Blake v.
Charleston Area Med. Ctr., Inc., 201 W. Va. 469, 498 S.E.2d 41 (1997).
The instant action is before this Court upon the appeal of Charles and Kathryn
Beahm, Randy and Kathy Johnson, and the Jefferson City Council on Aging [hereinafter
Appellants] from a January 4, 2007, order granting defendants', 7-Eleven, Inc. and Melissa
Spinks [hereinafter Appellees], Motion for Summary Judgment. On appeal, the Appellants
allege that errors were committed by the circuit court when it applied the doctrines of res
judicata and/or claim preclusion to the instant action, and when the circuit court held that
Appellants suffered no recoverable damages. Conversely, the Appellees allege that summary
judgment was appropriate because the instant action is barred by res judicata and the
Appellants have no recoverable damages under West Virginia law. This Court has before
it the petition for appeal, all matters of record and briefs and arguments of counsel. For the
reasons expressed below, the January 4, 2007, order of the Circuit Court of Jefferson County
FACTUAL AND PROCEDURAL HISTORY
The instant matter is the second of two actions arising from a January 2000,
gasoline release occurring from underground storage tanks at 7-Eleven, Inc.'s store in
Ranson, West Virginia. The Appellants claim that gasoline from 7-Eleven's store
contaminated groundwater that circulates beneath their properties, and that as a result, their
properties were devalued. (See footnote 1)
All of the Appellants' properties allegedly affected by
contaminated groundwater draw their water supply through a public water system. When 7-
Eleven received notice of the leak and its contamination around February 2000 (See footnote 2)
, it identified
the leaking tank and began the remediation process as required by federal and state law. 7-
Eleven, Inc. and its insurers have paid all of the costs of remediating the entire site, including
Appellants' properties. (See footnote 3)
The first action to arise from the 7-Eleven gasoline leak was Proctor v. 7-
, et al, Civil Action No. 3:02-CV-21, filed in the Jefferson County Circuit Court
on February 21, 2002. Proctor
, which was removed to the U.S. District Court for the
Northern District of West Virginia, involved eight property owners in Ranson, West Virginia
alleging that their groundwater was contaminated by the gasoline release. During the
pendency of that action, the Proctor
plaintiffs moved to amend their complaint to add new
parties on two separate occasions. In their first motion to amend, the Proctor
sought to add Melissa Spinks as a defendant. In their second motion to amend, the Proctor
plaintiffs sought to add Charles and Kathryn Beahm and Randy and Kathy Johnson as
plaintiffs. The federal district court denied both motions for leave on the grounds that the
statute of limitations had expired. The Beahms and Johnsons, themselves, then sought an
extraordinary writ of mandamus to challenge the federal district court's decision and to have
themselves added as plaintiffs in the Proctor
action, which was denied by the Fourth Circuit
Court of Appeals.
During the pendency of the motions to amend in the Proctor
case, Appellants (See footnote 4)
filed the instant action in the Circuit Court of Jefferson County, stating virtually identical
claims to those raised in the Proctor
action. In addition to suing 7-Eleven, Appellants also
sued Melissa Spinks, a non-diverse defendant, to prevent removal to federal district court.
This matter proceeded through discovery concurrently with the Proctor
litigation until the
circuit court stayed the case pending an outcome in Proctor
on the grounds that the two cases
involved identical questions of fact and law, involving the same types of claims, issues,
parties, attorneys and expert witnesses.
On April 26, 2005, the entire Proctor
was dismissed on summary
judgment. The federal district court found that the plaintiffs suffered no damages
recoverable under West Virginia law. The Proctor
plaintiffs filed an appeal asserting that
they had evidence of recoverable damages. However, they did not appeal the district court's
refusal to permit the Beahms and Johnsons to intervene. The Fourth Circuit Court of
Appeals affirmed the dismissal of the Proctor
action on May 18, 2006. The circuit court
lifted the stay in this action on October 5, 2006. On January 4, 2007, the circuit court granted
the Appellees' motion for summary judgment, finding that res judicata
barred the action.
The Appellants filed a motion for reconsideration, which was denied by the circuit court by
order dated March 5, 2007.
STANDARD OF REVIEW
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. Syl. Pt. 3, Aetna Co. v. Federal Co., 148 W. Va. 160,
133 S.E.2d 770 (1963). Furthermore, [a] circuit court's entry of summary judgment is
reviewed de novo. Syl. Pt. 1, Painter v. Peavy, 192 W. Va. 189, 451 S.E.2d 755 (1994). Mindful of these standards, we proceed to consider the arguments of the parties.
A. Res Judicata
The central issue in this appeal is whether the lower court was correct in
concluding that res judicata
principles preclude Appellants' claims from going forward.
Appellants allege that error was committed by the circuit court when it applied the doctrine
of res judicata
to the instant action because the statute of limitations has not yet begun to run
because Appellants have suffered continuous tortious injuries. Conversely, the Appellees
allege that summary judgment was appropriate because the instant action is barred by res
since the statute of limitations has expired. Upon review of the record before us,
we conclude that res judicata
bars the instant action.
The U.S. District Court for the Northern District of West Virginia ruled that
the statute of limitations has expired on all claims against 7-Eleven and Melissa Spinks
arising out of the gasoline release. (See footnote 5)
Although the decision refusing to permit Melissa Spinks
as a defendant was appealed, the federal district court's decision refusing to add the Beahms
and Johnsons as plaintiffs was not challenged. The Fourth Circuit did not address the merits
of the statute of limitations issue. All appeals have been exhausted, and the Proctor
judgment is final.
or claim preclusion generally applies when there is a final
judgment on the merits which precludes the parties or their privies from relitigating the issues
that were decided or the issues that could have been decided in the earlier action. State v.
, 194 W. Va. 3, 9, 459 S.E.2d 114, 120 (1995). We recognized in Conley v. Spillers
171 W. Va. 584, 588, 301 S.E.2d 216, 219 (1983), that the underlying purpose of the
doctrine of res judicata
was initially to prevent a person from being twice vexed for one and
the same cause. In Conley
, we also observed the following additional rationale underlying
the doctrine of res judicata
To preclude parties from contesting matters that have had a full and
fair opportunity to litigate protects their adversaries from the expense
and vexation attending multiple lawsuits, claim preclusion serves to
conserves judicial resources, and fosters reliance on judicial action by
minimizing the possibility of inconsistent decisions.
Id. (quoting Montana v. United States, 440 U.S. 147, 153-54, 99 S.Ct. 970, 973-74, 59
L.E.2d 210, 217 (1979)).
For a second action to be a second vexation which the law will forbid, the two
actions must have (1) substantially the same parties who sue and defend in each case in the
same respective character, (2) the same cause of action, and (3) the same object. Hannah
v. Beasley, 132 W. Va. 814, 821, 53 S.E.2d 729, 733 (1949). Accordingly, we held in Blake
v. Charleston Area Med. Ctr., Inc., 201 W. Va. 469, 498 S.E.2d 41 (1997):
Before the prosecution of a lawsuit may be barred on the basis of res
judicata, three elements must be satisfied. First, there must have been
a final adjudication on the merits in the prior action by a court having
jurisdiction of the proceedings. Second, the two actions must involve
either the same parties or persons in privity with those same parties.
Third, the cause of action identified for resolution in the subsequent
proceeding either must be identical to the cause of action determined
in the prior action or must be such that it could have been resolved, had
it been presented, in the prior action.
Id. at Syl. Pt. 4. The third prong of this test is most often the focal point, since the central
inquiry on a plea of res judicata is whether the cause of action in the second suit is the same
as the first suit. Conley, 171 W. Va. at 588, 301 S.E.2d at 220.
1. Final Adjudication on the Merits
The parties agree that the first element of res judicata has been met in the
instant action by virtue of the final judgment entered in Proctor. However, the Appellants
contest whether the second and third elements have been satisfied.
2. Same Parties or Persons in Privity
Appellants contend that the circuit court erred by finding that they were in
privity with the Proctor litigants. Upon review of the record before us, we find that the
record clearly supports the circuit court's conclusion that privity exists.
A plaintiff cannot simply escape the application of res judicata or collateral
estoppel simply because he was not formally joined as a party in the prior litigation. Gribben
v. Kirk, 195 W. Va. 488, 499 n. 21 (1995). This Court has recognized that [p]rivity, in a
legal sense, ordinarily denotes 'mutual or successive relationship to the same rights of
property.' West Virginia Human Rights Comm'n v. The Esquire Group, Inc., 217 W. Va.
454, 460, 618 S.E.2d 463, 469 (2005)(quoting Syl., Cater v. Taylor, 120 W. Va. 93, 196 S.E.
As we previously explained in West Virginia Human Rights Comm'n v. Esquire
Group, Inc., 217 W. Va. 454, 460-61, the concept of privity with regard to the issue of
claim preclusion is difficult to define precisely but the key consideration for its existence is
the sharing of the same legal right by parties allegedly in privity, so as to ensure that the
interests of the party again whom preclusion is asserted have been adequately represented.
It has been recognized that [p]rivity . . . 'is merely a word used to say that the relationship
between one who is a party on the record and another is close enough to include that other
within the res judicata. Rowe v. Grapevine Corp., 206 W. Va. 703, 715 (1999). In other
words, preclusion is fair so long as the relationship between the nonparty and a party was
such that the nonparty had the same practical opportunity to control the course of the
proceedings that would be available to a party. Gribben, 195 W. Va. at 498 n. 21, 466
S.E.2d at 157 n. 21.
In determining whether privity exists, we have previously utilized the doctrine
of virtual representation. Virtual representation, a variety of privity, precludes relitigation
of any issue that [has] once been adequately tried by a person sharing a substantial identity
of interests with a nonparty. Galanos v. National Steel Corp., 178 W. Va. 193, 195, 358
S.E.2d 452, 454 (1987). In Galanos, we offered various examples of circumstances of when
the doctrine of virtual representation can be applied in accord with due process principles.
One such example was when a nonparty's actions involve deliberate maneuvering or
manipulation in an effort to avoid the preclusive effects of a prior judgment, he may be
deemed to be bound by such judgment. Id. at 455, 196 (citing Crane v. Comm'r, 602 F. Supp.
280 (D. Me. 1985); Katz v. Blum, 460 F. Supp. 1222 (S.D.N.Y. 1978), aff'd 603 F.2d 213
(2d. Cir. 1979)). The facts of this case seemingly fit within that category of virtual
representation as recognized in Galanos.
The Appellants filed the instant civil action to avoid the impact of the federal
district court's ruling against them. The record conclusively demonstrates that the Beahms
and Johnsons sought to be added as parties to the Proctor suit. After the federal district court
refused the Proctor plaintiffs' motion to amend their complaint to add the Beahms and
Johnsons as plaintiffs, the Beahms and Johnsons themselves sought an extraordinary writ
from the Fourth Circuit Court of Appeals to challenge the federal district court's decision,
recognizing that they faced having their claims barred by res judicata by any decisions in the Proctor case. In their petition for writ of mandamus to the Fourth Circuit, they made the
[D]isposition of the claims of the Plaintiffs in this action [i.e. the
Proctor plaintiffs] in the absence of the Petitioners [i.e. the Beahms and
Johnsons] as parties Plaintiff will impair and impede the Petitioner's
ability to protect their claim. Petitioners, by not moving to join this
action as parties Plaintiff, risk the barring of their claims by res judicata
and or collateral estoppel, e.g. see Haba v. Big Arm Bar & Grill, Inc.,
196 W. Va. 129, 468 S.E.2d 915 (1996).
Pet. for Writ of Mandamus, Fourth Circuit Court of Appeals No. 05-1598, p.6.
Even though the Beahms and Johnsons sought to join the Proctor action as
parties plaintiff and the Council on Aging did not, we nonetheless find that the Council on
Aging is also in privity with the Proctor litigants. All of the parties to this case share
common counsel with the parties in the Proctor litigation. Thus, all of the parties to this suit
had notice of the Proctor suit, and would have had the same practical opportunity to control
the course of the proceedings. Additionally, all of the parties were allegedly injured by the
same release of gasoline. Accordingly, Appellants rely not only on the same expert witnesses
and expert opinions as those in Proctor, but also the very same fact witnesses, documents and
exhibits. There can be no question that the interests of the Appellants and the Proctor litigants are decidedly the same.
We acknowledge that something more than a common interest between the
prior and present litigants is required for privity to be established. Gribben, 195 W. Va. 488,
498 n. 21, 466 S.E.2d 147, 157 n. 21. Indeed, we have previously cautioned that the doctrine
of virtual representation cannot be construed to imply privity to all who derive injury from
a single wrongful act. Galanos, 178 W. Va. at 195, 358 S.E.2d at 454. However, under the
circumstances of this case, the only reasonable conclusion is that these Appellants' interests
have been adequately represented by their own attorney in the Proctor litigation who has
advanced substantially the same proof in both cases. The evidence the Appellants rely upon
has been reviewed by the federal courts and the matter had been adjudicated. Privity exists
between the Appellants and the Proctor plaintiffs.
3. Similarity of Causes of Action
The third factor which must be present to support a res judicata determination
is a finding that the cause of action identified for resolution in the subsequent proceeding
either must be identical to the cause of action determined in the prior action or must be such
that it could have been resolved, had it been presented, in the prior action. Blake, 201 W.
Va. at 472, 498 S.E.2d at 44, at Syl. Pt. 4. Appellants allege that the final element of res
judicata is not established in the instant matter because the only common thread between the
two groups of Plaintiffs is that they were both injured by the same gasoline leak. We
disagree. The two causes of action are virtually identical.
This Court has explained that with respect to the identity of the two causes of
For purposes of res judicata, 'a cause of action' is the fact or facts
which establish or give rise to a right of action , the existence of which
affords a party a right to judicial relief. . . The test to determine if the
. . . cause of action involved in the two suits is identical is to inquire
whether the same evidence would support both actions or issues . . . If
the two cases require substantially different evidence to sustain them,
the second cannot be said to be the same cause of action and barred by
Blake, 201 W. Va. at 476, 498 S.E.2d at 48 (quoting White v. SWCC, 164 W. Va. 284, 290,
262 S.E.2d 752, 756 (1980)).
The requirements of res judicata specifically contemplate:
[a]n adjudication by a court having jurisdiction of the subject-matter
and the parties is final and conclusive, not only as to the matters
actually determined, but as to every other matter which the parties
might have litigated as incident thereto and coming within the
legitimate purview of the subject-matter of the action. It is not essential
that the matter should have been formally put in issue in a former suit,
but it is sufficient that the status of the suit was such that the parties
might have had the matter disposed of on its merits. An erroneous
ruling of the court will not prevent the matter from being res judicata.
, 201 W. Va. at 477, 498 S.E.2d at 49 (quoting
Syl. Pt. 1, Sayre's Adm'r v. Harpold
33 W. Va. 553, 11 S.E. 16 (1890)). Accordingly, res judicata
may operate to bar a
subsequent proceeding even if the precise cause of action involved was not actually litigated
in the former proceeding so long as the claim could have been raised and determined. Id
Appellants contend that the instant action is different than Proctor
properties' damages in the two cases are different, the damages were discovered at different
times (See footnote 6)
, and there was an invasion of harmful vapors in the Council on Aging's Senior Center.
We find Appellants' argument disingenuous, and the differences between the two cases too
insignificant to avoid claim preclusion.
complaint alleged four causes of action: 1) strict liability; 2)
negligence; 3) punitive damages; and 4) violation of West Virginia Code §55-7-9. The
identical four claims were alleged in the instant action, also adding the claims of nuisance
and trespass. The prayer for relief made by the Appellants in this action is almost identical
to that in Proctor
. The plaintiffs in each cause of action specifically request the fair market
value of their real estate prior to its alleged destruction; inconvenience and loss of wages and
income; fright, stress, aggravation and mental anguish; out-of-pocket expenses; medical
expenses, including costs of examinations and testing; emotional distress; and injuries to
plaintiff's bodies. Each of the claims in the instant action could have been resolved in the Proctor
action, had they been raised. The claims of nuisance and trespass could have been
brought in Proctor
because they arose out of the same core of operative facts as all of the
Additionally, Appellants have failed to provide us any evidence that the instant
action is so vastly different than the Proctor
litigation that application of res judicata
violate the notions of due process. The fact that the specific properties in the instant action
are different than those in the Proctor
action is of no moment. Each and every property is
unique from another, including the three properties that are joined together in this cause of
action. The fact that different pieces of property allegedly sustained damages does not
preclude the effects of res judicata
. Furthermore, the fact that discovery of the leak occurred
at different times, and the fact that some properties sustained vapor infiltration while others
did not is equally unconvincing. (See footnote 7)
The Appellants cannot now credibly argue that these cases
are dissimilar, after attempting to combine the claims of the Beahms and Johnsons with the Proctor
claims in federal district court. Likewise, although the Council on Aging did not
attempt to join the Proctor
litigation, the similarity of their claims to the Proctors
undeniable because as a joint party-plaintiff in this action, the Council on Aging brings the
very same claims that the Beahms and Johnsons have alleged.
We wish to emphasize once again that the application of res judicata is
dependent upon the distinctive characteristics of a particular case. Based upon the facts and
circumstances of the instant appeal, we find that the elements of res judicata have indeed
been satisfied in this case. The circuit court did not commit error in finding that the
Appellants' claims against 7-Eleven and Melissa Spinks are precluded. Accordingly, we find
that summary judgment was appropriate.
Appellants allege a second assignment of error regarding the issue of
recoverable damages in this matter. However, because we have resolved the matter on
appeal by addressing the issue of whether the circuit court correctly applied the doctrine of res judicata to bar the present action, we decline to address the damages issue. It is not
necessary that we reach the merits of that argument, as the issue of res judicata is dispositive
in this matter.
For the reasons stated herein, the circuit court's order of January 4, 2007, is
The Appellants are owners of primarily residential real property in the City of
Ranson, Jefferson County, West Virginia, with the exception of the Council on Aging, which
is a corporate property and utilizes the property for its business purposes as a senior citizen
The leak was discovered by the Town of Ranson and certain individuals with
property in the immediate vicinity of the 7-Eleven property in late February 2000. At that
point, the West Virginia Department of Environmental Protection ordered 7-Eleven to
determine the extent of the pollution and formulate a plan to remediate the contamination.
Defendant 7-Eleven retained a company called ENSR as its remediation contractor.
As part of the remediation plan, monitoring wells were installed to determine the extent of
the contamination. On April 30, 2002, ENSR submitted a report to the West Virginia
Department of Environmental Protection. It was determined that monitoring well 11, near
the home of Charles and Kathryn Beahm, contained benzyne, toluene, ethyl benzyne and
xylene. Monitoring well 12, near the home of Kathy and Randy Johnson also contained
concentrations of benzyne and BTEX.
Appellants Beahm and Johnson filed the instant civil action in the Jefferson County
Circuit Court on January 24, 2003. The Jefferson County Council on Aging was added as
a party by later amendment.
In fact, the federal district court made the statute of limitations rulings twice. First,
when the Proctor
plaintiffs sought to add another defendant, Melissa Spinks, to their action.
Subsequently, when the Proctor
plaintiffs brought a second motion to amend their complaint
to add the Beahms and Johnsons as plaintiffs.
Specifically, Appellants allege that the facts of this case constitute both a continuing
tortious trespass and nuisance, and therefore, the statute of limitations is tolled. Appellants
also argue that the discovery rule tolls the statute of limitations. We will not address the
merits of the Appellants' argument that the statute of limitations has not begun to run because
it is not pertinent to the ultimate issue of whether res judicata
applies. This issue was
addressed in the Proctor
litigation and fully adjudicated. Even if the federal district court's
ruling was legally incorrect or erroneous, this Court has consistently held that an erroneous
ruling will not prevent the matter from being res judicata
, 201 W. Va. at 477, 498
S.E.2d at 49 (quoting
Syl. Pt. 1, Sayre's
, 33 W. Va. 553, 11 S.E. 16.)
See footnote 6, supra.