Waltzing Matilda Aviation LLC d/b/a Connect Airlines v. MAHH Consortium Partnership

Court of Appeals of Virginia·Decided February 10, 2026·No. 0002254·Unpublished

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges O’Brien, Chaney and Callins UNPUBLISHED

Argued at Alexandria, Virginia

WALTZING MATILDA AVIATION LLC d/b/a CONNECT AIRLINES

MEMORANDUM OPINION* BY

v. Record No. 0002-25-4 JUDGE MARY GRACE O’BRIEN FEBRUARY 10, 2026

MAHH CONSORTIUM PARTNERSHIP, ET AL.

FROM THE CIRCUIT COURT OF ARLINGTON COUNTY Judith L. Wheat, Judge

Scott D. Helsel (Walton & Adams, P.C., on briefs), for appellant.

Max F. Maccoby (Washington Global Law Group PLLC, on brief), for appellees.

Waltzing Matilda Aviation, d/b/a Connect Airlines (WMA) appeals the circuit court’s finding that WMA entered into and then breached a contract with Connected DMV (CDMV) to form a consortium and share the cost of submitting a bid to the Department of Energy (DOE) for funding of the Mid-Atlantic Hydrogen Hub (MAHH). WMA argues that the court erred in denying its motion to strike as well as its renewed motion to strike and in entering judgment for CDMV because (1) WMA never signed the Memorandum of Understanding (MOU); (2) there was no meeting of the minds; (3) CDMV did not fulfill its obligations under the MOU; (4) there was insufficient evidence for quantum meruit and (5) insufficient evidence to determine the damages; and (6) the court admitted inadmissible hearsay. For the following reasons, we affirm.

*

This opinion is not designated for publication. See Code § 17.1-413(A).

BACKGROUND

CDMV is a non-profit organization for economic development and collaboration, including the promotion of clean energy. In December 2022, the DOE encouraged CDMV to submit a bid application to receive between $1 billion to $1.25 billion of federal funds for the development of a regional hydrogen hub.

On January 5, 2023, CDMV held a “kick-off meeting,” attended among others by representatives of WMA, during which CDMV explained the bidding process and estimated that the cost for the bid application would be between $3.1 million and $4 million. To receive funds as sub-awardees, consortium members would have to raise matching funds to be invested into the hub. At trial, Karl Darin, the COO of CDMV, testified that, initially, CDMV considered WMA only an indirect member. Richard Moore, the Vice President of Climate and Energy at CDMV, sent a follow-up email to attendees, containing the presentation slides used during the meeting as well as an unsigned MOU “for the members to review and provide markups before signing.” The MOU explained that members would bear a pro-rata share of the application costs based on how much they requested to receive from the award money.

On January 17, 2023, Alex Lee, the Chief Strategy & Business Development Officer at WMA, emailed Moore a “project contact questionnaire,” identifying himself as the point of contact at WMA for anything related to the bid. That same day, Lee emailed a representative at the Virginia Economic Development Partnership Organization, copying Moore, explaining that WMA would collaborate with CDMV on the bid submission. Shortly thereafter, WMA started to internally discuss how to spend the potential federal funds.

CDMV hired Accenture, Black & Veatch, and GS Proctor & Associates to provide professional services for the bid application, such as generating reports, engineering the hub systems, planning construction, and lobbying.

Tara Lobo from Accenture started holding bi-weekly meetings attended by WMA to discuss the bid application. On February 3, 2023, Lee emailed Ryan Gilman, WMA’s CFO, stating that he “just got off a weekly call with the MAHH submission” and there was “lots of confusion” because it “[s]ound[ed] like [CDMV] w[as]n’t expecting us to put in a $$ request so they weren’t asking us for money . . . but now JT1 wanted to ask for some money.”

Throughout the application phase, Lee communicated with CDMV and the vendors, providing all information and forms required for the bid submission. For example, Lee provided reports on technological and economic projections to Accenture and filled out a “Disclosure of Lobbying Activities,” identifying WMA as a “sub[-]awardee of this bid opportunity.” Lee testified at trial that John Thomas, WMA’s CEO, had authorized him to support the bid application in every possible way, which Thomas confirmed.

On March 7, 2023, Darin emailed MAHH members to provide “the updated cost allocations based on the funds that are being requested by each of the members.” The email included a funding allocation spreadsheet, showing that WMA had an allocation of 11.13%—or $136,990,000—of DOE funds. Following that email, two potential members decided to withdraw from the consortium bid.

Lee forwarded Darin’s email to Gilman and Thomas, explaining that the consortium required a membership fee payment and he was therefore “laying low.” WMA did not communicate to CDMV that they could not pay the invoices. Later at trial, Lee testified that he understood that WMA had to pay the first invoice for approximately $200,000 of the application costs “to be part of the bid submission.”

On March 9, 2023, Darin provided the new fund allocations, showing the adjusted funding after the withdrawal of some members. That email also contained an updated MOU

1 At trial, Lee testified that JT referred to John Thomas, WMA’s CEO.

with changes other members had made, as well as the first application cost invoice. The MOU required payment of the first half of the application costs “as a condition” to become a MAHH member. WMA’s updated pro-rata share was 11.59%, resulting in an invoice for $231,800 for the “Mid-Atlantic Hydrogen Hub Application Phase Operating Costs.” No one at WMA objected to the cost allocations or invoice.

The next day, Lee signed and submitted a “Letter of Commitment” to be included in the bid application. The letter was addressed to the DOE and “represent[ed] a MAHH member Letter of Commitment,” stating that “[i]f the [a]pplication is selected for award, [WMA] commits to contribute cost share in the amount of $319.418 million[]2 as a subrecipient for the scope of work attributed to [WMA] as described in the [a]pplication.” Lee testified at trial that he was authorized to sign the letter by Thomas.

The record shows that, during the bidding process, WMA tried to use MAHH to attract potential investors.3 Ten days after issuing the first invoice, CDMV followed up with WMA regarding the “status of signing the MOU and processing the invoice for payment.” Lee responded that he would check with WMA’s CEO and CFO. Darin testified that, at that time, CDMV did not suspect that WMA was stalling because there was no indication that the payment was an issue. Ten days later, Darin again emailed Lee to ask about payment and execution of the MOU, and

2 The amount refers to matching funds WMA pledged to raise, not the application cost.

3 The record includes a slide WMA created for potential investors that reads as follows:

WMA is part of the Mid Atlantic Hydrogen Hub (MAHH)

consortium (based in DC with members including Amazon, Exelon, Universal Hydrogen) that has submitted its final bid for a federal grant of $1.25bn under this program of which WMA has been earmarked $140m to subsidize the conversion of our aircraft to zero emissions. . . . The MAHH is regarded as having a high probability of success under the program.

Lee reiterated that he would check with Thomas and Gilman. At trial, Lee admitted that WMA was stalling payment.

On April 6, 2023, CDMV submitted the bid application. At no point before the submission did WMA communicate to CDMV that it did not want to participate in the bid or would not sign the MOU. Instead, WMA continued to provide all requested information and material for the bidding process and presented itself as a member of MAHH, including in a letter to the Department of Transportation.

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Waltzing Matilda Aviation LLC d/b/a Connect Airlines v. MAHH Consortium Partnership, (Va. Ct. App. 2026).

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