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The Virginia Business Litigation Blog

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Fraudulent Joinder Issue Deferred Until Service of Process Achieved

Federal courts have jurisdiction over civil actions that arise under the Constitution, laws or treaties of the United States (“federal question” jurisdiction) and in civil actions where the amount in controversy exceeds $75,000 and the matter is between citizens of different states (“diversity” jurisdiction). Parties must be completely diverse for…

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Failure to Mediate Prior to Litigation Held Grounds for Dismissal

A court will not substitute a judicial resolution for a contractually agreed-upon remedy when two sophisticated parties negotiate a contract at arm’s length. In Dominion Transmission, Inc. v. Precision Pipeline, the United States District Court for the Eastern District of Virginia dismissed a complaint where the two corporations had agreed…

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Who Is Race Judy Cotta and Why Is She Barring My Claim?

“Res judicata” is Latin for “the thing has been judged.” It basically means that once you sue someone and obtain a result–win or lose–the matter is over and you can’t sue the same person again for the same harm. It’s like the civil equivalent of double jeopardy. The doctrine is…

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Trial Courts have Sole Discretion Whether to Allow Cameras in the Courtroom

Virginia Code § 19.2-266 governs media coverage of judicial proceedings and provides that a court “may solely in its discretion” permit photographs and broadcasting. Elsewhere, the statute specifies that “for good cause shown,” the presiding judge may prohibit or restrict coverage. Yesterday, the Supreme Court of Virginia clarified the seemingly…

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Citizenship of LLC Members Determines LLC’s Citizenship for Diversity Purposes

A federal court must determine that it has subject matter jurisdiction and personal jurisdiction and that venue is proper before it can adjudicate a matter. If it lacks any one of the three, the court will not proceed, and it need not examine whether the other two requirements are met.…

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References to Marketing Brochure Deemed Insufficient to Support Fraud Claim

Although a plaintiff asserting a fraud claim in federal court may allege malice, intent, knowledge, and other conditions of a person’s mind in general terms, he must plead the circumstances constituting the fraud with particularity, identifying the time, place, content, and maker of each alleged fraudulent circumstance. Failure to plead…

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Arbitrator Designation Deemed Severable from Contract

Virginia Code § 8.01-581.01 et seq. evidences a public policy favoring arbitration. Virginia’s statutory scheme provides that arbitration agreements between parties are valid and enforceable, and courts uphold the parties’ designated method of appointing an arbitrator. Where the parties’ appointed arbitrator is unable to act and the parties have not…

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Virginia Supreme Court Limits Opportunity to Obtain Quick Dismissals of Noncompete Cases

When companies sue their former employees on the ground that they allegedly breached a broadly-worded noncompete agreement, a common defense tactic has been to file a demurrer, arguing that the complaint fails to state a claim upon which relief can be granted. The thinking was that if the noncompete agreement…

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In Wrongful Termination Case, Court Employs Burden Shifting Framework Where No Direct Evidence of Discrimination Exists

A plaintiff employee with no direct evidence of disability discrimination must establish a prima facie case of wrongful termination. If he succeeds, the defendant employer is required to articulate a legitimate, non-discriminatory reason for the termination. The burden then shifts back to plaintiff to show that the reason offered was…

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