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740 S.E.2d 548
Va.
2013
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Background

  • Iskalo CBR, LLC filed a special-exception application to build a WMATA bus facility on Fairfax County land split between R-1 (5.32 acres) and I-6 (12.05 acres).
  • Planning Commission approved as substantially in accord with the comprehensive plan; Board of Supervisors was expected to approve after recommendation.
  • Newberry Station HOA, nearby, urged rejection due to anticipated traffic impacts.
  • At a Feb 2011 hearing, Board members disclosed campaign contributions from Iskalo's attorneys; Hudgins and McKay disclosed WMATA ties; counsel for WMATA had roles significant to the project.
  • In March 2011, the Board voted 6–3 to approve; chairman abstained; the voting members who disclosed interests voted in favor.
  • Newberry Station and others sued for declaratory judgment and injunction, arguing recusal was required under Code § 15.2-852(A) and that approval was not fairly debatable; Circuit court granted Board summary judgment on the fair-debatable issue and sustained demurrer on recusal.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Recusal under Code § 15.2-852(A) required? Newberry Station contends Hudgins and McKay had a disqualifying conflict (business/financial interest). Board argues no disqualifying 'business or financial interest' as WMATA is not a private corporation; recusal not required. Board properly sustained; Hudgins and McKay had no recusal obligation
Whether WMATA is a corporation under the statute for recusal purposes? WMATA contract-purchaser status with potential financial interest triggers §15.2-852(A). WMATA is a government agency, not a private 'corporation' under the statute. WMATA is not a 'corporation' for §15.2-852(A); no recusal required
Fairly debatable standard applied to the application’s approval? The Board failed to apply applicable FCZO standards, rendering approval not fairly debatable. Sufficient evidence exists to support reasonableness; open-space, noise, and hazardous substances standards were adequately considered. Record shows sufficient reasonableness; approval is fairly debatable
Open-space requirement satisfied under FCZO standards? Board failed to confirm 10% open space on I-6 portion; staff ignored standard. Area calculations show more than 10% open space on I-6 portion; standard met. Open-space standard satisfied
Noise and hazardous/substance considerations sufficient in record? Noise study relied on by Board is inapplicable to Newberry Station; fails to show compliance with noise limits and hazardous substances data. Noise limits and hazmat requirements are either inapplicable or adequately addressed; not required to be exacting at this stage. Evidence supports reasonableness; Board’s approach fair-debatable

Key Cases Cited

  • Alger v. Commonwealth, 267 Va. 255 (2004) (plain-language statutory interpretation; words control when unambiguous)
  • Appalachian Power Co. v. State Corp. Comm'n, 284 Va. 695 (2012) (plain meaning governs; no extrinsic evidence if language is clear)
  • Brown v. Lukhard, 229 Va. 316 (1985) (statutory ambiguity requires broader canons of construction)
  • Kiser v. A.W. Chesterton Co., 285 Va. 12 (2013) (illustrates approach to interpreting statutory text)
  • Cuccinelli v. Rector & Visitors of Univ. of Va., 283 Va. 420 (2012) (nosceitur a sociis canon; distinguish agency vs private corporation for 'corporation')
  • Rector & Visitors of the Univ. of Va. v. Carter, 267 Va. 242 (2004) (agency-in-corporate-form hailed as government entity; private-corporation distinction matters)
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Case Details

Case Name: Newberry Station Homeowners Ass'n v. Board of Supervisors
Court Name: Supreme Court of Virginia
Date Published: Apr 18, 2013
Citations: 740 S.E.2d 548; 285 Va. 604; 121209
Docket Number: 121209
Court Abbreviation: Va.
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