Broadcasts.com - "June 2019 - Knop et al v Knop et al" (Oral Arguments of the Supreme Court of Virginia)

Published: June 26, 2019, 7:46 p.m.

This podcast is provided by Ben Glass and Steve Emmert

Granted Appeal Summary

Case

ALEXANDRA KNOP, ET AL. v. PETER J. KNOP, ET AL.

(Record Number 180329)

From

The Circuit Court of Loudoun County; J. Irby, Judge.

Counsel

David C. Rohrbach and Roy R. Shannon, Jr. (Rich Rosenthal Brincefield Manitta Dzubin &

Kroeger, LLP) for appellant.

Michael S. Dingman and Nicholas V. Albu (Reed Smith LLP) for appellee.

Assignment of Error

The trial court erred by not recognizing the parties’ percentage ownership interests in Ticonderoga documented in years of Virginia and federal tax returns filed and attested to by the company, Knop, and the children.

The trial court erred by holding that the children did not satisfy their burden in proving that Knop gifted shares of Ticonderoga to them even though the court found there was donative intent and the transfers were documented in years of Virginia and federal tax returns filed and attested to by the company, Knop, and the children.

The trial court erred by not applying the doctrines of equitable estoppel and quasi-estoppel to find that Knop was bound by his gifts of ownership interests in Ticonderoga when Knop intended to make the gifts and the children were aware of, accepted, and relied on the gifts.

Because the trial court erred in holding that the children each own only 9.08% of Ticonderoga, the court also erred with respect to its rulings that were contingent on that holding, including its denial of the declaratory and injunctive relief sought in Counts I, VI, VII, IX, and XI of the Third Amended Complaint (including, for example, the children’s request for an order enjoining Knop from conveying Ticonderoga property without their consent and the children’s requests for a declaration that (i) Knop’s conversion of Ticonderoga from a corporation to an LLC was unauthorized, (ii) the shareholder rights in Ticonderoga’s corporate bylaws still apply, and (iii) Knop may not convey Ticonderoga property without their consent).