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