The Virginia Supreme Court recently ruled on several matters heard during its June 2008 session. Below are brief summaries of two cases that may have an impact upon some of the areas of the law in which Glenn, Feldmann, Darby & Goodlatte attorneys practice.

We continue to monitor recent developments in areas of the law that affect our various practices areas. Check back on a bi-weekly basis to learn about legal trends that might affect you.

Local Government, Tax

West Creek Associates, LLC v. County of Goochland, Civil Action No. 071411, 2008 WL 4181993 (Va. Sept. 12, 2008)- The Supreme Court of Virginia recently confirmed that a party seeking to challenge an allegedly erroneous tax assessment may do so by alleging and proving a significant disparity between the assessed value and the involved property’s fair market value. While a taxpayer must still establish that the assessed value falls outside of the “range of a reasonable difference of opinion,” the taxpayer is no longer required to present evidence showing that the methodology used by the taxing authority was flawed. Although the Court based its ruling upon a narrow set of operant facts, the implications of this holding may be significant. Prior to this holding, a taxpayer typically was required to show not only a multiple tracts of similar property are involved, the taxing authority is required to individually assess each piece of property.

Business Corporation, Litigation

Supervalu, Inc. v. Johnson, Civil Action No. 071995, 2008 WL 4182419 (Va. Sept. 12, 2008)- One of the fundamental planks of a claim alleging fraud is the requirement of a false representation of present fact. In this ruling, the Supreme Court of Virginia confirmed that where fraud that relates to the anticipated occurrence of future acts is alleged, a plaintiff must prove that the defendant made the representation with a present and resolved intention not to perform as promised. The Court further reasoned that since a constructive fraud claim derives from a negligent rather than an intentional act, where a party falsely, but innocently represents that a future act will occur, fraud may not be successfully alleged. Prior to this ruling the Court’s holding in Eden v. Weight, 265 Va. 398, 578 S.E.2d 769 (2003), was occasionally cited as supporting the assertion of constructive fraud claims in connection with negligent or reckless predictions of future events. This ruling confirms that where future events are involved, a prevailing fraud claims requires the satisfaction of a very difficult element of proof.