Schoolhouse Limited Liability Company v. Creekside Owners Association

Summary

The Supreme Court of Appeals of West Virginia reviewed a circuit court order approving a good-faith settlement between Creekside Owners Association and several defendants and dismissing Schoolhouse Limited Liability Company's implied indemnity cross-claim. The court held that the settlement extinguished the cross-claim because Creekside's remaining claims against Schoolhouse were based on Schoolhouse's alleged independent conduct rather than imputed, strict, or vicarious liability for the settling defendants' conduct. The circuit court's order was affirmed.

Holdings

1. A good-faith settlement extinguishes a non-settling defendant's claim for implied indemnity when the non-settling defendant's potential liability is based on its own independent fault or negligence rather than imputed, strict, or vicarious liability for the settling defendants' conduct.
2. An order granting a motion to dismiss is reviewed de novo, and dismissal is proper when it appears beyond doubt that the plaintiff can prove no set of facts supporting a claim for relief.

Questions Presented

1. Whether a good-faith settlement between the plaintiff and several defendants extinguished the non-settling defendant's cross-claim for implied indemnity.
2. Whether the claims against Schoolhouse were based on Schoolhouse's independent conduct rather than imputed, strict, or vicarious liability for the settling defendants' conduct.
3. Whether the circuit court properly dismissed the implied-indemnity cross-claim under the applicable Rule 12(b)(6) standard.

Disposition

affirmed