Davenport & Co., headquartered at One James Center downtown, has filed a suit against several attorneys and law firms. Photo by Evelyn Rupert.
One of Richmond’s oldest financial firms is going on the offensive against a pair of lawyers, turning the tables after a drawn-out legal battle with a rural county near Charlottesville.
Davenport & Co. is suing local attorney Douglas Palais, Charlottesville attorney Frederick Payne and a trio of law firms barely three months after the company’s well-publicized lawsuit with Fluvanna County over a bond offering was dropped.
Now Davenport alleges the defendants, who litigated against the company in the Fluvanna County lawsuit, knowingly made false claims against it in that case in an attempt to draw out potentially lucrative settlement.
The latest case was filed by Davenport on Dec. 31 in Richmond Circuit Court against Palais, Payne, and law firms Payne & Hodous, Eckert Seamans and ar Park, previously known as Park Palais LLC.
It alleges that the attorneys and thereby their current and former firms “orchestrated a scheme to damage Davenport through fraudulent litigation, without regard for the merits of the claims, for the purpose of extorting a lucrative and unwarranted settlement and for personal or political advancement and retribution.”
In October, Fluvanna County dropped its suit against Davenport and publicly apologized about inaccuracies in the case dropped the suit against Davenport.
Davenport claims six counts including malicious abuse of process, malicious prosecution, and common law fraud. It claims it suffered damages from the money it spent to defend and resolve the fabricated claims, as well as injury to its reputation and seeks $15 million in damages.
Davenport is also suing the law firm defendants on a count of vicarious liability, which argues that the firms are liable for the actions of all their employees.
Payne, in addition to private practice, is the county attorney for Fluvanna. He declined to comment when reached by phone last week.
Palais was with Eckert Seamans when he represented Fluvanna County during the original lawsuit against Davenport. He joined Park Palais in 2013 and recently joined law firm Vandeventer Black in Richmond. A message left for Palais was not returned by press time.
The origins of the dispute date back to September 2011, when Fluvanna County sued Davenport for $18.5 million in damages over a bond offering. The county wanted to issue bonds to build a new high school and was advised on the offering in 2008 by Davenport, its longtime financial adviser.
The county claimed Davenport misled it into issuing a certain type of bonds that would allegedly result in higher commissions and fees for the firm and resulted in higher than expected interest on the bond.
Davenport had been the county’s adviser for 15 years and helped it through nine bond offerings up until the relationship was severed in 2010. The firm wasted little time in defending itself against Fluvanna’s claims and enlisted McGuireWoods to represent it.
Davenport originally had the case dismissed in February 2012. But the county appealed to the Supreme Court of Virginia, which reversed the dismissal and reinstated the case. Then the country dropped it this past October.
The linchpin of Davenport’s claims in the new case is that the lawyer defendants knowingly lied in the legal proceedings about statements supposedly made by David Rose, head of Davenport’s Public Finance group.
The county’s original lawsuit referenced quotes allegedly made by Rose at a public meeting about the bonds in 2008.
“In reality, Rose did not attend the November 24 meeting, nor did he make such a statement,” Davenport claims in its suit.
Davenport argues that the county board and the two attorneys knew the allegations about Rose were false. It then alleges that Palais and Payne concealed evidence demonstrating the false nature of the board’s claims, including resisting requests to turn over audio recordings of that 2008 meeting.
It was ultimately admitted that the allegations about Rose were false, but the attorneys called it a mistake.
When it called off the suit in October, the county made an announcement that said the advice from Davenport had not proven to be unreasonable, nor did it ultimately cause the county financial harm.
“The board further acknowledges that certain statements were made in the lawsuit against Davenport, and Mr. David Rose in particular, which were not accurate, and the board regrets this mistake,” the county said in a statement.
Davenport is demanding a jury trial to prove that its reputation and business were harmed by the dispute with Fluvanna County.
Davenport CEO Lee Chapman referred all comments on the case to the firm’s attorney, was not returned by press time. Donald McEachin of McEachin & Gee. McEachin did not return a call last week.
Davenport & Co., headquartered at One James Center downtown, has filed a suit against several attorneys and law firms. Photo by Evelyn Rupert.
One of Richmond’s oldest financial firms is going on the offensive against a pair of lawyers, turning the tables after a drawn-out legal battle with a rural county near Charlottesville.
Davenport & Co. is suing local attorney Douglas Palais, Charlottesville attorney Frederick Payne and a trio of law firms barely three months after the company’s well-publicized lawsuit with Fluvanna County over a bond offering was dropped.
Now Davenport alleges the defendants, who litigated against the company in the Fluvanna County lawsuit, knowingly made false claims against it in that case in an attempt to draw out potentially lucrative settlement.
The latest case was filed by Davenport on Dec. 31 in Richmond Circuit Court against Palais, Payne, and law firms Payne & Hodous, Eckert Seamans and ar Park, previously known as Park Palais LLC.
It alleges that the attorneys and thereby their current and former firms “orchestrated a scheme to damage Davenport through fraudulent litigation, without regard for the merits of the claims, for the purpose of extorting a lucrative and unwarranted settlement and for personal or political advancement and retribution.”
In October, Fluvanna County dropped its suit against Davenport and publicly apologized about inaccuracies in the case dropped the suit against Davenport.
Davenport claims six counts including malicious abuse of process, malicious prosecution, and common law fraud. It claims it suffered damages from the money it spent to defend and resolve the fabricated claims, as well as injury to its reputation and seeks $15 million in damages.
Davenport is also suing the law firm defendants on a count of vicarious liability, which argues that the firms are liable for the actions of all their employees.
Payne, in addition to private practice, is the county attorney for Fluvanna. He declined to comment when reached by phone last week.
Palais was with Eckert Seamans when he represented Fluvanna County during the original lawsuit against Davenport. He joined Park Palais in 2013 and recently joined law firm Vandeventer Black in Richmond. A message left for Palais was not returned by press time.
The origins of the dispute date back to September 2011, when Fluvanna County sued Davenport for $18.5 million in damages over a bond offering. The county wanted to issue bonds to build a new high school and was advised on the offering in 2008 by Davenport, its longtime financial adviser.
The county claimed Davenport misled it into issuing a certain type of bonds that would allegedly result in higher commissions and fees for the firm and resulted in higher than expected interest on the bond.
Davenport had been the county’s adviser for 15 years and helped it through nine bond offerings up until the relationship was severed in 2010. The firm wasted little time in defending itself against Fluvanna’s claims and enlisted McGuireWoods to represent it.
Davenport originally had the case dismissed in February 2012. But the county appealed to the Supreme Court of Virginia, which reversed the dismissal and reinstated the case. Then the country dropped it this past October.
The linchpin of Davenport’s claims in the new case is that the lawyer defendants knowingly lied in the legal proceedings about statements supposedly made by David Rose, head of Davenport’s Public Finance group.
The county’s original lawsuit referenced quotes allegedly made by Rose at a public meeting about the bonds in 2008.
“In reality, Rose did not attend the November 24 meeting, nor did he make such a statement,” Davenport claims in its suit.
Davenport argues that the county board and the two attorneys knew the allegations about Rose were false. It then alleges that Palais and Payne concealed evidence demonstrating the false nature of the board’s claims, including resisting requests to turn over audio recordings of that 2008 meeting.
It was ultimately admitted that the allegations about Rose were false, but the attorneys called it a mistake.
When it called off the suit in October, the county made an announcement that said the advice from Davenport had not proven to be unreasonable, nor did it ultimately cause the county financial harm.
“The board further acknowledges that certain statements were made in the lawsuit against Davenport, and Mr. David Rose in particular, which were not accurate, and the board regrets this mistake,” the county said in a statement.
Davenport is demanding a jury trial to prove that its reputation and business were harmed by the dispute with Fluvanna County.
Davenport CEO Lee Chapman referred all comments on the case to the firm’s attorney, was not returned by press time. Donald McEachin of McEachin & Gee. McEachin did not return a call last week.