Multiplex, Inc. v. Raleigh County Board of Education
709 S.E.2d 561
W. Va.2011Background
- Contractor Multiplex built an addition to Independence High School in Raleigh County, funded by the SBA.
- Board of Education directed utility relocation, its responsibility under the contract, delaying work for over six months.
- Multiplex resumed work after the six-month delay; it later sued in 2006 for termination and damages due to the delay.
- April 25, 2007 settlement: Board paid Multiplex $183,143 and Multiplex executed a broad Release in Full of All Claims.
- Release stated it covered claims arising from the alleged wrongful acts in the 2006 complaint and included known and unknown damages.
- In 2009 Multiplex filed a new suit alleging additional delays (tiles, HVAC), seeking damages for new delays not present at the time of the 2006 complaint.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the 2007 Release bar Multiplex’s 2009 claims? | Release covers only 2006-delay claims; not new, separate delays. | Release broadly discharged all claims arising from the 2006 alleged wrongful acts. | No; release limited to 2006-claim scope, not future delays. |
| Scope of the Release’s language about ‘arising out of’ the alleged wrongful acts | Release extends only to events arising from the 2006 complaint (utility-relocation delay). | Release intended to bar all claims related to the project delays. | Release limited to the 2006 alleged wrongful acts; not to later delays. |
| Whether 2009 delays are a different cause of action not contemplated by the Release | Delays in 2009 occurred after the Release and involve different facts. | Release was broad and barred related claims. | Different, subsequently occurring delays are not barred by the Release. |
Key Cases Cited
- Conley v. Hill, 115 W. Va. 175, 174 S.E. 883 (1934) (1934) (release scope limited to contemplated claims; events within contemplation at signing)
- McGraw v. Scott Runyan Pontiac-Buick, Inc., 194 W. Va. 770, 461 S.E.2d 516 (1995) (1995) (de novo review of dismissal; release interpretation principles)
- Thornton v. Charleston Area Medical Center, 158 W. Va. 504, 213 S.E.2d 102 (1975) (1975) (overruled on other grounds; release interpretation guidance)