Just Wright Distribution, Inc. by Julius Wright v. Reid Coastal Logistics

CourtCourt of Appeals of Virginia
DecidedApril 1, 2025
Docket0709241
StatusUnpublished

This text of Just Wright Distribution, Inc. by Julius Wright v. Reid Coastal Logistics (Just Wright Distribution, Inc. by Julius Wright v. Reid Coastal Logistics) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Just Wright Distribution, Inc. by Julius Wright v. Reid Coastal Logistics, (Va. Ct. App. 2025).

Opinion

COURT OF APPEALS OF VIRGINIA UNPUBLISHED

Present: Judges Fulton, Causey and Bernhard

JUST WRIGHT DISTRIBUTION, INC. BY JULIUS WRIGHT MEMORANDUM OPINION* v. Record No. 0709-24-1 PER CURIAM APRIL 1, 2025 REID COASTAL LOGISTICS, ET AL.

FROM THE CIRCUIT COURT OF THE CITY OF CHESAPEAKE Robert G. MacDonald, Judge

(J.A. Currin; Equal Justice Center, PLC, on brief), for appellant.

(Gregory S. Bean; Allison M. Strayer; Gordon Rees Scully Mansukhani, LLP, on brief), for appellees.

Just Wright Distribution, Inc. (Wright) appeals the circuit court’s award of attorney fees to

Reid Coastal Logistics (Coastal) under Code § 8.01-271.1. Wright contends the sanctions were

improper because Code § 8.01-380(B) allows a first nonsuit without penalty. The circuit court,

however, determined that Code § 8.01-380(B) did not preclude it from awarding sanctions under

Code § 8.01-271.1. We affirm the circuit court’s decision.1

* This opinion is not designated for publication. See Code § 17.1-413(A). 1 After examining the briefs and record in this case, the panel unanimously holds that oral argument is unnecessary because “the dispositive issue or issues have been authoritatively decided, and the appellant has not argued that the case law should be overturned, extended, modified, or reversed.” Code § 17.1-403(ii)(b); Rule 5A:27(b). BACKGROUND2

Wright sued Coastal for breach of contract, fraud, and violations of the Uniform

Commercial Code, the Virginia Consumer Protection Act, and the Virginia Heavy Equipment

Dealer Act.3 Finding Wright’s complaint deficient, Coastal filed a demurrer and motion craving

oyer. On December 19, 2023, Coastal’s counsel set both the demurrer and motion craving oyer for

a hearing date on January 31, 2024. At the demurrer hearing, Wright’s counsel moved for a

continuance because her “client [is] not . . . available” and she “need[ed] to amend the complaint.”

Although Coastal had filed the demurrer in November 2023, Wright’s counsel waited until the

demurrer hearing to request a continuance. The circuit court rejected Wright’s oral request for a

continuance. Coastal moved for attorney fees. Then, Wright’s counsel sought a nonsuit.

Coastal argued that attorney fees were appropriate because Wright was unwilling to move

forward with the scheduled hearing in her client’s absence and neglected to act or request a

continuance prior to the hearing. Moreover, Coastal argued that it had to prepare for the hearing

and travel for the court appearance. Additionally, Wright had failed to remedy the pleading

deficiencies that Coastal’s responsive pleadings highlighted.

Finding significant deficiencies on the face of the pleadings, the circuit court questioned

whether Wright’s counsel had “reviewed [the] pleading before signing” it. The flaws were so

readily apparent that “it would be difficult to find that this pleading has been read.” Finding that

Wright’s counsel should have recognized and addressed the pleading deficiencies before the

hearing, the circuit court sanctioned Wright $1,500 in attorney fees. The circuit court determined

2 Under settled appellate principles, we state the facts in the light most favorable to Coastal, the party that prevailed in the circuit court. Horn v. Webb, 302 Va. 70, 77 (2023). 3 The complaint is captioned “Just Wright Distribution Inc. v. Reid Costal Logistics,” but the prayer for relief and plaintiff-signature block lists the plaintiff as “RTF Distribution Inc.” -2- that the complaint violated the certification requirements of Code § 8.01-271.1(B).4 The circuit

court awarded sanctions for the pleading violation, not Wright’s request to nonsuit.

On appeal, Wright argues that the circuit court erred in awarding attorney fees. Wright

contends that an attorney fee award in the context of a first nonsuit is improper because the “right to

the initial nonsuit may not be limited by the Court.”5 Coastal counters that Code § 8.01-380(B)

does not preclude an award of attorney fees under Code § 8.01-271.1, regardless of the right to a

first nonsuit. This appeal follows.

ANALYSIS

We review the circuit court’s award of sanctions under Code § 8.01-271.1 for abuse of

discretion. Williams & Connolly, LLP v. People for the Ethical Treatment of Animals, Inc., 273

Va. 498, 509 (2007). In determining whether an attorney’s conduct violated Code § 8.01-271.1,

the court applies an objective standard of reasonableness. Nedrich v. Jones, 245 Va. 465, 471

(1993).

I. Code § 8.01-380(B) does not preclude sanctions under Code § 8.01-271.1.

“Courts have statutory and inherent power to ‘protect [their] jurisdiction from repetitious

and harassing conduct that abuses the judicial process.’” Gordon v. Kiser, 296 Va. 418, 424

(2018) (alteration in original) (quoting Adkins v. CP/IPERS Arlington Hotel LLC, 293 Va. 446,

4 Code § 8.01-271.1(B) provides:

The signature of an attorney or party constitutes a certificate by him that (i) he has read the pleading, motion, or other paper, (ii) to the best of his knowledge, information and belief, formed after reasonable inquiry, it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and (iii) it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation. 5 The circuit court recognized the right to a first nonsuit. -3- 452-53 (2017)). Given that authority, the Supreme Court has held that a circuit court “retains

jurisdiction to consider a motion for sanctions . . . either before it rules on the request for nonsuit

or if it rules within 21 days of entry of a final order in the case.” Id.; see also Johnson v.

Woodard, 281 Va. 403, 409 (2011) (holding that circuit court retains “jurisdiction to consider a

party’s motion for sanctions for 21 days after entry of a nonsuit order”).

The Supreme Court has explained that the circuit court’s continuing jurisdiction applies

irrespective of whether the judgment order addresses a nonsuit because a “motion for sanctions is

an application made to a court for the imposition of a penalty for alleged misconduct of a party

or lawyer or for alleged abuse of the system.” Williamsburg Peking Corp. v. Xianchin Kong, 270

Va. 350, 354 (2005). “The [sanctions] motion has no bearing on the facts giving rise to a right to

seek judicial remedy. Thus, the entry of a nonsuit order does not conclude a case as to any

pending motion for sanctions.” Id. (emphasis added). Indeed, the “General Assembly never

intended that a nonsuit order could exonerate a litigant’s misconduct.” Id.

Wright’s reliance on an unpublished opinion of this Court6 is unavailing because the

Supreme Court has spoken authoritatively on the subject since our unpublished ruling. We are

bound by the Supreme Court’s precedents. Vay v. Commonwealth, 67 Va. App. 236, 258 n.6

(2017). Thus, we find no jurisdictional infirmity in the circuit court’s award of sanctions

notwithstanding Wright’s exercise of the right to nonsuit the complaint.

II. The circuit court did not abuse its discretion in awarding attorney fees, and the amount was not arbitrary.

If a pleading . . . is signed . . . in violation of this section, the court, upon motion or upon its own initiative, shall impose upon the person who signed the paper . . . a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses

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Related

Johnson v. Woodard
707 S.E.2d 325 (Supreme Court of Virginia, 2011)
Williamsburg Peking Corp. v. Kong
619 S.E.2d 100 (Supreme Court of Virginia, 2005)
Super Fresh Food Markets of Virginia, Inc. v. Ruffin
561 S.E.2d 734 (Supreme Court of Virginia, 2002)
Oxenham v. Johnson
402 S.E.2d 1 (Supreme Court of Virginia, 1991)
Beale v. King, Administratrix
132 S.E.2d 476 (Supreme Court of Virginia, 1963)
Nedrich v. Jones
429 S.E.2d 201 (Supreme Court of Virginia, 1993)
Manneh Vay v. Commonwealth of Virginia
795 S.E.2d 495 (Court of Appeals of Virginia, 2017)

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