United Leasing v. Lehner Family Bus. Trust

689 S.E.2d 670, 279 Va. 510, 2010 Va. LEXIS 34
CourtSupreme Court of Virginia
DecidedFebruary 25, 2010
Docket090254
StatusPublished
Cited by9 cases

This text of 689 S.E.2d 670 (United Leasing v. Lehner Family Bus. Trust) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Leasing v. Lehner Family Bus. Trust, 689 S.E.2d 670, 279 Va. 510, 2010 Va. LEXIS 34 (Va. 2010).

Opinion

689 S.E.2d 670 (2010)

UNITED LEASING CORPORATION
v.
The LEHNER FAMILY BUSINESS TRUST.

Record No. 090254.

Supreme Court of Virginia.

February 25, 2010.

*671 Michael R. Shebelskie (Kimalee C. Cottrell; Karen S. Elliott; Hunton & Williams; Sands Anderson Marks & Miller, on briefs), Richmond, for appellant.

Todd M. Ritter (Daniels & Morgan, on brief), Chester, for appellee.

Present: HASSELL, C.J., KEENAN, KOONTZ, KINSER, LEMONS, and MILLETTE, JJ., and CARRICO, S.J.

OPINION BY Justice LEROY F. MILLETTE, JR.

In this appeal, we consider whether a defendant preserved an objection made in a motion to strike at the conclusion of the plaintiff's evidence, when the defendant moved to renew its motion to strike at the conclusion of the trial. We hold that the defendant failed to preserve its argument regarding the validity of an assignment of a breach of contract claim to the plaintiff, because the defendant failed to state its renewed objection with reasonable certainty.

BACKGROUND

This case involves a breach of contract action filed by the plaintiff, the Lehner Family Business Trust (the Trust), against the defendant, United Leasing Corporation (United Leasing), pursuant to a purported assignment of the cause of action to the Trust. Following a trial by jury, the circuit court entered judgment on the jury's verdict in favor of the Trust for $1.1 million.

We will include a limited recitation of the facts as our decision in this case rests on procedural grounds. As certain facts are in dispute, we apply well-settled principles of appellate review and view the evidence in the light most favorable to the Trust, which has in its favor a jury verdict confirmed by the trial judge. Dunn Construction Co., Inc. v. Cloney, 278 Va. 260, 266, 682 S.E.2d 943, 946 (2009); Williams v. Dominion Technology Partners, L.L.C., 265 Va. 280, 283, 576 S.E.2d 752, 753 (2003).

Brothers Aurelio and Hugo V. Garcia founded a trash removal business called Garcia's, Inc. (Garcia's). Prior to the dissolution of Garcia's, Hugo Garcia (Hugo) served as president and director.

Garcia's leased trucks and trash containers from United Leasing under a series of equipment leases and pledged various assets as security. As additional security, United Leasing required the execution of a "Stock *672 Pledge Agreement," pledging the brothers' stock in Garcia's as collateral and authorizing United Leasing to vote the brothers' shares in the event the company defaulted on the leases. The "Stock Pledge Agreement" named Hugo as a "director" of Garcia's.

United Leasing declared Garcia's in default and began to liquidate Garcia's assets, stating that it was foreclosing upon security for the equipment leases. United Leasing assumed control of Garcia's and Garcia's was defunct by June 2002.

James C. Lehner (Lehner), a former employee of United Leasing, formed the Trust in 2005, and shortly thereafter, Lehner offered Hugo $50,000 to assign all claims against United Leasing to the Trust. Hugo executed the requested assignment, which assigned all of the legal claims, rights, and causes of action that Garcia's, "a Virginia corporation in dissolution," and Hugo, "individually and as trustee in liquidation for Garcia's, Inc." had under the equipment leases with United Leasing and otherwise.

The Trust sued United Leasing for breach of contract[1], claiming that "[b]y assignment..., the Trust acquired all of Garcia's claims, causes of action, chooses in action, rights of action, rights and interests against [United Leasing] ... and all claims and rights, etc., relating to the Garcia's Leases." The Trust claimed that United Leasing failed to pay Garcia's over $1 million in surplus proceeds from the disposition of collateral held as security for the equipment leases, which amount the Trust claimed United Leasing held in constructive trust for the benefit of Garcia's.

The trial took place over three days. At the close of the Trust's case-in-chief on the second day, United Leasing moved to strike the Trust's evidence on two grounds: (1) a failure to prove an assignment from Garcia's to the Trust because Hugo had relinquished any assignable rights; and (2) a failure to prove a breach of contract. With regard to the second ground, United Leasing argued that the Trust failed to prove any damages because Garcia's debt at default was $3.1 million and after the application of any credit due, there was a deficiency of at least $1.1 million remaining owed to United Leasing. After hearing arguments by counsel, the circuit court overruled United Leasing's motion to strike. Concerning the validity of the assignment, the circuit court stated that there was testimony about the assignment by Hugo, and "it appears [Hugo] was a trustee at that time."

United Leasing presented evidence in its defense, including the testimony of two witnesses. The Trust then called Lehner as a rebuttal witness, and Lehner testified that he accepted from Hugo, as trustee in liquidation and on behalf of Garcia's, an assignment of all the claims against United Leasing. After the jury retired at the conclusion of all of the evidence, counsel for United Leasing stated, "Renew my motion to strike. For the record, I wanted to renew my motion to strike." United Leasing made no argument in support of its renewed motion, nor did the trial judge rule on the motion at that time, as the court proceeded to review with counsel the trial exhibits and proposed instructions.

Following closing arguments and after the jury began its deliberations, the trial judge addressed counsel for United Leasing, "you want to renew your motion to strike?" Counsel for United Leasing responded: "I wanted to renew my motion to strike at the end as we had stated, stating that the plaintiff did not prove that there was a deficiency in this situation."[2] In support of its renewed *673 motion to strike, United Leasing argued only the issue of whether the Trust proved damages. United Leasing did not make any reference to the validity of the assignment from Hugo to the Trust. The circuit court overruled the renewed motion to strike, concluding that there were factual issues to be resolved by the jury.

The jury returned a $1.1 million verdict for the Trust. United Leasing orally moved for judgment notwithstanding the verdict, which the circuit court denied. The circuit court entered judgment on the verdict. United Leasing subsequently filed a "Motion to Reconsider[,] Motion for Judgment Notwithstanding Verdict or, alternately, Motion to Set Aside Verdict and For New Trial." The circuit court also denied United Leasing's post-trial motions. United Leasing's appeal to this Court followed.

DISCUSSION

On appeal, United Leasing assigns error to the circuit court's denial of its motion to strike the Trust's evidence, contending that the evidence does not establish that Hugo had authority to assign Garcia's breach of contract claim to the Trust.

The Trust argues that United Leasing is procedurally barred from asserting any argument regarding the validity of the assignment, because it did not renew its motion to strike as to the validity of the assignment at the conclusion of the trial following presentation of defense and rebuttal evidence.

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Cite This Page — Counsel Stack

Bluebook (online)
689 S.E.2d 670, 279 Va. 510, 2010 Va. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-leasing-v-lehner-family-bus-trust-va-2010.