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The Tale of 248 Erroneous Tax Assessment Cases:
Rounds One and Two, The First Trial and Appeal (2001-2004)

As County Attorney in Goochland County from 2001 to 2009, I was counsel in 248 erroneous assessment cases, resulting in two multi-day trials and two appeals to the Virginia Supreme Court, resulting in one incredible opinion issued by the Court in September of 2008, West Creek Associates, LLC v. County of Goochland, 276 Va. 393, 665 S.E.2d 834 (2008) (opinion here).

The tale has some twists and turns, so hang on for the ride.

Background (in brief)

In 2000, businessmen Bill Goodwin and Booty Armstrong (through 144 individual limited liability companies, including West Creek Associates) contracted to purchase 2,500 acres of real estate in Goochland County, consisting of 20 individual parcels at the time, for a purchase price of approximately $34.1 million from Bank of America, Trustee. All the West Creek Business Park was zoned industrial/business; some was improved, but most was unimproved. It was and inarguably is a first class, master-planned business park.

At settlement in June of 2000, the real estate was subdivided, not by subdivision plat, but by 144 separate deeds, each conveying a single parcel to a different limited liability company. As required by law, each of those parcels was shown separately on the land book. In 2000-2001, the County’s citizen board of assessors assessed each of the parcels during its general reassessment of the County. The collective taxable value of those parcels was assessed at $105.4 million.

The First Trial

The first 89 lawsuits were filed in August of 2001, and were consolidated for trial, which was held in April 2003, presided over by Circuit Court Judge-designate Charles Russell (former Justice of the Virginia Supreme Court). Just before trial, the various plaintiffs attempted to non-suit the 89 cases in order to re-file with all 144 parcels and pursue a previously-unexpressed theory, namely, that all 144 parcels should be valued collectively as a whole, and valued at the “price paid,” $34.1 million. Because the County had a pending counterclaim for increased assessments, Judge Russell denied the motion and presided over a four-day trial. At the conclusion, neither side was happy with the result. The West Creek plaintiffs appealed the non-suit ruling. The County of Goochland appealed the assessment reduction of approximately $34 million ordered by the court, only about half to one-third what the plaintiffs hoped to receive under their new theory.

The First Appeal

On appeal in 2004, the Virginia Supreme Court reversed the non-suit ruling, essentially giving the plaintiffs a “do-over” to present their “one business park” theory. The Court seemed very interested in reversing on the non-suit issue in oral argument, which would also reverse the $34 million assessment reduction ordered below. Understandably, near the end of argument, Chief Justice Hassell asked counsel for the West Creek LLCs, “Are you sure your client wants this?” The client did. The Court ordered the plaintiffs’ non-suit motion granted, and therefore did not reach any of the multiple (and I believe well-founded) assignments of error cited by the County.

In some ways, it was like both parties had entered a time warp and lost the previous three years of litigation.

Next time -
Part Two: Round Three, The Second Trial (2004-2006)

Tags: Goochland, tax assessment, West Creek Business Park

This entry was posted on Friday, August 7th, 2009 at 10:53 am and is filed under assessment, development, tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.