Sarah K. Lehman v. WFV Holding, LLC

CourtCourt of Appeals of Virginia
DecidedMay 14, 2024
Docket0201232
StatusPublished

This text of Sarah K. Lehman v. WFV Holding, LLC (Sarah K. Lehman v. WFV Holding, LLC) 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.

Bluebook
Sarah K. Lehman v. WFV Holding, LLC, (Va. Ct. App. 2024).

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Beales, Callins and Senior Judge Clements PUBLISHED

Argued by videoconference

SARAH K. LEHMANN, ADMINISTRATOR OF THE ESTATE OF EMILE LEHMANN, III, ET AL. OPINION BY v. Record No. 0201-23-2 JUDGE JEAN HARRISON CLEMENTS MAY 14, 2024 WFV HOLDINGS, LLC, ET AL.

FROM THE CIRCUIT COURT OF AMELIA COUNTY Joseph M. Teefey, Jr., Judge

Michael L. Donner, Sr. (Setliff Law, P.C., on briefs), for appellants.

Christopher C. Spencer (Franklin R. Cragle, III; Randolph Critzer, Jr.; Christopher C. Spencer PLLC; Hirschler Fleischer, P.C., on brief), for appellee WFV Holdings, LLC.

No brief or argument for appellee Betty Carol Moyer.

By final order of January 6, 2023, the Circuit Court of Amelia County ordered that Sarah K.

Lehmann, administrator of the Estate of Emile Lehmann, III, and Janet Elaine Lehmann Crumpler

each were obligated to pay $23,874.23 of expenses incurred by their co-tenant, WFV Holdings,

LLC, in connection with real property that was the subject of a partition suit. The circuit court

ordered the clerk to deduct that amount from the proceeds of sale of the real property at issue before

issuing a check to each party for the remainder of that party’s share of the proceeds. Lehmann and

Crumpler challenge the circuit court’s judgment, arguing that they should not have been required to

pay any of WFV’s expenses because WFV failed to include in its complaint any request for

compensation. BACKGROUND

Helen Lehmann owned real property in Amelia County. When she died intestate in 2012,

her brother, Arthur Lehmann, filed an affidavit declaring that he was her sole surviving heir. In fact,

Helen had other heirs, including Emile, Crumpler, Betty Carol Moyer, and Linda Ann Biggerstaff.1

Subsequently, Arthur conveyed his interest in the property to WFV by deed of December 14, 2017.

On April 9, 2020, WFV filed a complaint for partition of real estate. See Code §§ 8.01-81

to -92 (governing actions for partition). On April 10, 2020, Emile and Crumpler filed a complaint

for partition of three of the same parcels. Their complaint asked the circuit court to partition the

properties and order any defendant who had received “rents and profits” from the properties

“without paying the plaintiffs their ratable share of the same” to pay them “their portions of the rents

and profits thus obtained.”

WFV moved for leave to file a first amended complaint on May 12, 2020, and on May 20,

2020, for leave to file a second amended complaint. The circuit court granted both motions by order

of June 4, 2020. WFV’s second amended complaint asked for partition of the three parcels that

were the subject of Emile and Crumpler’s complaint. The second amended complaint alleged that

the co-tenants were unable to “agree as to the sale, division, or use of the properties” and asked the

circuit court to determine boundary lines, identify and determine the percentage interests of any

co-tenants, and partition the properties. The second amended complaint did not include a request

for reimbursement of any costs, including attorney fees, WFV incurred in connection with the

properties.

1 By order of September 18, 2020, the circuit court found that Moyer and Biggerstaff were in default. By separate order of September 18, 2020, the circuit court found that Biggerstaff was presumed to have predeceased Helen and ordered that the property would be partitioned as though she had predeceased Helen and had no descendant who survived Helen. See Code § 64.2-2301. Those rulings are not challenged in this appeal. -2- The circuit court consolidated the two cases for trial. Emile and Crumpler moved the circuit

court to appoint a special commissioner to sell the property. After a hearing, the circuit court found

that the parties were tenants in common, WFV owned a 50% interest, Emile and Crumpler each

owned a 12.5% interest, and Moyer owned the remaining 25% interest. By order of October 5,

2021, the circuit court appointed a special commissioner to sell the property.

The special commissioner obtained purchase offers totaling $6.16 million and asked the

circuit court to approve the sales. By orders of February 20, 2022, and March 31, 2022, the circuit

court accepted the purchase offers, ordered the special commissioner to complete the sales, and

deferred ruling on the distribution of the proceeds.

WFV thereafter moved the circuit court to distribute the proceeds of the sales and for

reimbursement from its co-tenants of various costs, including boundary surveys, appraisals,

property taxes, property security, liability insurance, fees for an heir-locator service, and overhead

time and costs an employee of WFV incurred in connection with the properties.2 WFV also sought

reimbursement of attorney fees for the special commissioner before his appointment, determining

the identity of heirs, and establishing title. WFV identified $101,017.20 in direct costs for the

properties and overhead of $121,220.64. In addition, WFV identified $8,896.75 in direct costs it

claimed were incurred for security and insurance of the property plus additional parcels that were

not at issue in the partition suit and attributed 56.6% of the claimed expenses to the property to be

partitioned. WFV also claimed $10,676.10 in overhead for those security and insurance expenses,

56.6% of which it attributed to the property. In total, WFV requested pro rata reimbursement of

$233,316.07, comprised of $106,052.76 in direct expenses and $127,263.31 in overhead charges.

2 WFV also asked that the circuit court order Moyer, who was not represented by counsel of record, to reimburse some of its attorney fees in the partition action, under Code § 8.01-92. Likewise, Emile and Crumpler moved the circuit court under Code § 8.01-92 to order that Moyer pay a portion of their attorney fees in the partition suit. The circuit court’s rulings on those issues are not at issue in these appeals. -3- Emile and Crumpler opposed WFV’s motion. They emphasized that WFV’s second

amended complaint was “limited strictly” to “determining boundary lines,” “determining who the

co-tenants were and their percentage ownership,” and “partitioning the property.” They asserted

that WFV had “not include[d] . . . a request” for reimbursement of any costs. They further argued

that Virginia law was clear that WFV was not entitled to any reimbursement that had not been

requested in the complaint.

After their argument that caselaw precluded reimbursement because WFV failed to request

it in its complaint, Emile and Crumpler then presented their “position on the requested

reimbursements” if the circuit court “decide[d] to distinguish” the caselaw. They asserted that the

purchaser had reimbursed WFV for the boundary surveys and disputed any obligation to pay for a

cost already reimbursed. Emile and Crumpler agreed that WFV could be reimbursed its expenses

for appraisals, the “timber cruise,” trash removal, property taxes, and “14 signs,” “one gate,” and

“one lock” for the “jointly owned” property. In total, Emile and Crumpler agreed that $35,084.56

would be reimbursable if the circuit court rejected their argument; in accordance with their 12.5%

respective interests in the property, each would owe $4,385.57.3 They objected on various grounds

to WFV’s request for reimbursement of all other costs, including attorney fees.

WFV replied to Emile and Crumpler’s opposition, denying that a “complaint for partition

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