EE Mart F.C., LLC v. Delyon
Annotate this CaseEE Mart, LLC brought an action in a Virginia circuit court against Suzanne Delyon, the former chief financial officer of EE Mart, and the other LLCs that she owned, alleging claims relating to insurance proceeds paid to Delyon by Traveler’s Insurance Company (Traveler’s). After it nonsuited the case, EE Mart brought an action against Traveler’s, Delyon, and the other LLCs in a Maryland circuit court relating to Traveler’s payment of the insurance proceeds to Delyon. Delyon and the other LLCs then filed the present action in a Virginia circuit court seeking to enjoin EE Mart from proceeding with the Maryland action and seeking a declaratory judgment that the Maryland action was without merit. EE Mart counterclaimed, asserting the same claims it had pled in the original action. The trial court dismissed EE Mart’s counterclaim with prejudice, finding it was frivolous. Delyon and the other LLCs then sought sanctions against EE Mart, claiming that the original action, Maryland action, and the counterclaim to the present action were frivolous. The trial court granted the motion and awarded attorney fees. The Supreme Court reversed with regard to the amount of sanctions awarded, holding that the trial court erred in its calculation of the attorney’s fees it could award as a sanction.
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