257 A.3d 1022
Del.2021Background
- Frederick Williams bought a Hockessin Chase home in 2011 and alleged construction defects (driveway, stucco, roof, etc.).
- Dec. 2017: Williams sued Toll Brothers Builders and Michael Brown in Court of Common Pleas for driveway defects; that action was dismissed without prejudice (wrong defendant/service); counsel informed Williams that Hockessin Chase, LP was the proper defendant.
- 2019: Williams filed a new Court of Common Pleas complaint naming Hockessin Chase and others; defendants moved to dismiss based on arbitration clauses in the purchase and warranty agreements.
- Nov. 1, 2019: Court of Common Pleas dismissed the 2019 action, concluding the parties agreed to binding arbitration; Williams did not appeal; a reargument motion was denied.
- June 2020: Williams sued in Superior Court on the same defect claims; defendants moved to dismiss arguing res judicata and arbitration; Superior Court dismissed on claim‑preclusion grounds as duplicative of the earlier Court of Common Pleas judgment.
- Delaware Supreme Court affirmed the Superior Court: the Court of Common Pleas judgment precluded Williams’s later suit; the Court also criticized appellees’ counsel for not disclosing an adverse Superior Court decision (Wang) but declined to reverse on that basis.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Williams’s Superior Court suit is precluded by the earlier Court of Common Pleas dismissal (res judicata/claim preclusion) | Williams: not precluded because arbitration is not the sole remedy and Wang supports that view | Defendants: prior dismissal required arbitration and therefore bars relitigation of the same operative facts | Affirmed — Superior Court correctly dismissed under claim preclusion; earlier judgment precluded the later suit |
| Whether arbitration was the exclusive remedy, such that the Court of Common Pleas properly dismissed the 2019 action | Williams: Wang shows arbitration is not exclusive; other remedies plausible | Defendants: sales and warranty agreements require binding arbitration | Court of Common Pleas concluded arbitration required; Williams did not appeal; Supreme Court did not overturn that conclusion and upheld preclusion |
| Whether appellees’ counsel had an obligation to disclose Wang (an adverse decision) when moving to dismiss in 2019 | Williams: counsel should have cited Wang to the Court of Common Pleas | Defendants: Wang was not final and could be overturned, so no duty to disclose it | Court rebuked counsel’s omission and reminded of Rule 3.3 duty to cite adverse controlling authority, but declined to reverse the judgment or resolve the broader rule about non‑final decisions |
Key Cases Cited
- Betts v. Townsends, Inc., 765 A.2d 531 (Del. 2000) (describing res judicata/claim preclusion principles)
- Dover Historical Soc’y, Inc. v. City of Dover Planning Comm’n, 902 A.2d 1084 (Del. 2006) (setting out the multi‑factor test for res judicata)
- Mannheim Video, Inc. v. County of Cook, 884 F.2d 1043 (7th Cir. 1989) (advocate’s duty to disclose directly adverse controlling authority)
- Tyler v. State, 47 P.3d 1095 (Alaska 2001) (adverse‑authority obligation can extend to decisions arguably distinguishable)
- In re Greenberg, 104 A.2d 46 (N.J. 1954) (duty to bring adverse rulings to the tribunal’s attention)
- Cicio v. City of New York, 98 A.D.2d 38 (N.Y. App. Div. 1983) (failure to cite adverse authorities can be inexcusable)
