Articles Posted in Supreme Court of Virginia

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At issue was whether, during the sale of JB&A, Inc., a government contracting firm, to MCR Federal, LLC, another government contractor, MCR’s false statement of that a representation and warranty in the contract remained true was a fraudulent act independent of the contractual relationship such that JB&A properly brought actions for both fraud and breach of contract. The trial court held MCR liable for breach of contract and constructive fraud and awarded $12 million in compensatory damages. The Supreme Court affirmed in part and reversed in part, holding (1) JB&A did not bring proper claims for actual or constructive fraud; (2) the evidence presented at trial established that MCR’s breach of contract caused JB&A substantial damages; (3) the trial court properly granted compensatory damages of $12 million and pre-judgment interest of $3.5 million; and (4) the trial court erred in awarding JB&A attorney’s fees in the amount of $1.9 million for prevailing on its claim of constructive fraud. View "MCR Federal, LLC v. JB&A, Inc." on Justia Law

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In 1997, Virginia Polytechnic Institute & State University awarded General Contractor a prime contract for construction work. General Contractor hired Subcontractors to complete portions of the project. Sureties acted as sureties to Subcontractors. After construction was substantially completed, Virginia Tech made final payment to General Contractor in 1999, which made final payment to Subcontractors. All work was concluded in 2000. In 2012, Virginia Tech asserted a claim against General Contractor seeking compensation for the cost of remedying defective workmanship. In 2014, General Contractor settled the claim with Virginia Tech and, the same year, filed this action alleging breach of contract and common law indemnity claims against Subcontractors and breach of contract claims against Sureties. In 2015, the court dismissed the case in its entirety, concluding, as relevant to this appeal, that the statute of limitations barred the breach of contract claims. The Supreme Court affirmed, holding that the statute of limitations had run by the filing of the suit in 2014, and because any breach of Subcontractors occurred at the time of their respective performances, the statute of limitations had similarly run against Sureties. View "Hensel Phelps Construction Co. v. Thompson Masonry Contractor, Inc." on Justia Law