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Granted Appeal Summary

Case

ALAN M. GRAYSON, ET AL. v. WESTWOOD BUILDINGS LIMITED PARTNERSHIP
(Record Number 191413)

From

The Circuit Court of Fairfax County; D. Bernhard, Judge.

Counsel

Bernard J. DiMuro and Michael Lieberman (DiMuro Ginsberg, PC) for appellants.
Mathew D. Ravencraft and Louise T. Gitcheva (Rees Broome, PC) for appellee.

Assignments of Error

1. The lower court erred as a matter of law in entering in personam judgments for \\u201cfraudulent conveyances,\\u201d \\u201cvoluntary conveyances\\u201d and conversion in favor of an unsecured creditor: (a) against a senior, secured creditor with a perfected security interest who was recovering on a debt, (b) against several non-transferees who cannot be liable for conveyances they never received, and (c) against Petitioners without determining the transferors\\u2019 fraudulent intent or insolvency, all in violation of this Court\\u2019s then-recent holding in La Bella Dona Skin Care v. Belle Femme, 294 Va. 243 (2017), or otherwise contrary to the plain meaning of Va. Code \\xa7\\xa7 55-80 & 55-81; and (d) in this context, further erred in ruling that the \\u2018Buy-Out Agreement\\u2019 preceding the debt lacked consideration, or that any such lack of consideration could nullify the later extension of credit or the resulting senior secured, perfected creditor status.

2. The lower court erred as a matter of law in entering a \\u201cconversion\\u201d judgment against Grayson because he was a client of a commercial transaction attorney (actually, a shareholder of that client), when that attorney simply collected on a senior, secured debt pursuant to the Uniform Commercial Code [see, e.g., Va. Code \\xa7 8.9A-205(a)] and the Executions section of Virginia Civil Remedies and Procedures (with the lower court wrongly concluding that boilerplate fieri facias language in a garnishment directed to someone else somehow compelled that attorney to refrain from such collection, and wrongly applying the tort of conversion to money to which the landlord had no exclusive and immediate right).

3. The lower court erred as a matter of law in failing to dismiss all claims against all Petitioners under res judicata, when such claims could have been brought in prior litigation regarding the same conduct, transactions and occurrences (and were actually known to the plaintiff during prior litigation), and when the prior parties were in privity to all Petitioners, in violation of this Court\\u2019s recent holding in Funny Guy, LLC v. Lecego, LLC, 293 Va. 135 (2017) and contrary to Virginia Supreme Court Rule 1:6.

4. The lower court erred as a matter of law in entering judgment against all Petitioners for fraudulent conveyances and voluntary conveyances without requiring proof by \\u201cclear, c

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