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Sevatec, LLC, f/k/a Sevatec, Inc. v. SGS Properties, LLC
0061244
Va. Ct. App.
Mar 11, 2025
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Background

  • Sevatec and SGS entered into a Lease Termination Agreement (LTA) as part of Sevatec's acquisition by Octo Consulting Group; the LTA allowed the prevailing party to recover attorney fees and costs.
  • SGS sued Sevatec for allegedly breaching the LTA by remaining on the property after termination and sought attorney fees; Sevatec counterclaimed for attorney fees as well.
  • The parties moved to bifurcate liability and attorney fees issues, with agreement that fees would be resolved after the liability trial.
  • After a bench trial, the court found for Sevatec on the breach-of-contract claim and scheduled a hearing on attorney fees, referring to a later entry of a "Final Order."
  • SGS later argued that the judgment resolving liability was a "final order“ under Virginia Rule 1:1, depriving the court of jurisdiction to award attorney fees after 21 days; the circuit court agreed and dismissed Sevatec's motion for fees.
  • Sevatec appealed, arguing the July 31 order was not final as it expressly contemplated further relief (attorney fees and costs).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Was July 31 order a final order under Rule 1:1? SGS: Yes, all substantive relief decided, order did not retain jurisdiction. Sevatec: No, attorney fees and costs were reserved for later. Not final; unresolved fees/costs showed more relief was contemplated.
Did the court lose jurisdiction after 21 days? SGS: Yes, once final order entered and 21 days expired. Sevatec: No, court retained jurisdiction for fees & costs. No; as the July 31 order was not final, jurisdiction remained.
Was City of Suffolk v. Lummis Gin Co. controlling? SGS: Yes, nonsuit order is final without language retaining jurisdiction. Sevatec: No, case differs because nonsuit has inherent finality; not true here. No; Lummis Gin applies only to nonsuit's inherent finality, not here.
Is Sevatec entitled to appellate attorney fees? SGS: Not addressed. Sevatec: Yes, under Section 8 of LTA for prevailing. Yes; Sevatec awarded appeal fees, remand for amount determination.

Key Cases Cited

  • Kellogg v. Green, 295 Va. 39 (finality requires all contemplated relief be granted)
  • Brooks v. Roanoke Cnty. Sanitation Auth., 201 Va. 934 (non-final decree if further court action is necessary)
  • Super Fresh Food Mkts. v. Ruffin, 263 Va. 555 (order must indicate intent to retain jurisdiction to avoid finality)
  • City of Suffolk v. Lummis Gin Co., 278 Va. 270 (nonsuit order has inherent finality but not analogous to bifurcated attorney fees)
  • James v. James, 263 Va. 474 (first nonsuit order ends all claims and parties)
Read the full case

Case Details

Case Name: Sevatec, LLC, f/k/a Sevatec, Inc. v. SGS Properties, LLC
Court Name: Court of Appeals of Virginia
Date Published: Mar 11, 2025
Docket Number: 0061244
Court Abbreviation: Va. Ct. App.