Lee and DuBois Obtain Dismissal of Northern Virginia Attorney, Unwittingly a Named Trustee of Property Encumbered with $1.5 Million Loan

Matthew Lee (Partner-McLean, VA) and Kelly DuBois (Associate-McLean, VA) obtained the dismissal with prejudice of their client, an attorney in Northern Virginia, with respect to an allegedly fraudulent $1.5 million loan secured by 95 acres of real property in Loudoun County, Virginia. The firm's client issued an opinion letter in advance of the loan and was also, unbeknownst to him, made the trustee on the deed of trust recorded in the land records. The property was owned by the plaintiff Farm Life, LLC. The loan was taken out, absent authority, by one plaintiff's managing members. Upon discovering the fraud in 2018, the plaintiff sued its former member, and, in a separate lawsuit, filed suit against the lenders, loan broker, settlement agent and our client.

After more than three years and three amended complaints, Matt and Kelly succeeded in dismissing all but two counts against our client. Those counts were for slander of title (for the recordation of the deed of trust) and civil conspiracy (to commit slander of title). Matt and Kelly filed a demurrer to the fourth complaint. The co-defendants did as well. The court overruled all of the defendants' demurrers, except for that of our client. In so doing, it agreed with Matt and Kelly's argument that the plaintiff had failed to allege facts, and instead asserted conclusory statements in support of its argument that our client published (recorded) the offending deed of trust in the land records. In addition, the court agreed that a cause of action for civil conspiracy is actionable only if based on some underlying tort. Here, the slander of title claim having been dismissed without leave to amend, the court also dismissed the conspiracy count. The dismissals were without leave to amend and thus are with prejudice.