Judge Rules in Favor of EDA Claim of Insufficient Grounds to Overturn Earlier Ruling of Liability of ‘Curt’ Tran & Lewisburg Way, LLC

At 1:30 p.m. Wednesday afternoon, July 9, attorneys for the Warren County Economic Development Authority (WC EDA, EDA) and Truc “Curt” Tran and his Lewisburg Way LLC had a Demurrer and Plea and Bar hearing before Judge Daryl Funk in Warren County Circuit Courtroom A. The EDA and its legal counsel from the Sands Anderson law firm of Richmond had filed the actions considered in the hearing in reaction to Tran and Lewisburg Way’s April 2025 filing to overturn this court’s earlier rulings of liability by Tran and his Lewisburg Way company, dating to 2023.

The basis of that initial 2023 legal action of the EDA seeking the release of 73 acres of land purchased by Lewisburg Way LLC over to the EDA was that Tran, the sole member and manager of Lewisburg Way, had transfered the money used to purchase the land off Happy Creek Road from his ITFederal Company’s account. ITFederal was since dissolved.

Previously, ITFederal had been found liable, along with Mr. Tran, in an earlier civil case related to the circa 2014 to 2018 EDA “financial scandal” surrounding then-EDA Executive Director Jennifer McDonald and what was eventually ruled to have been fraudulently moved EDA assets. Those assets included money loaned to the EDA by banks to facilitate economic development initiatives. That Tran/ITFederal liability ranged in the neighborhood of $12-million to about $14-million, including penalties and interest on a base loan of $10-million, with $2 million later added to aid what would have been the first, post-federal Superfund clean-up development on the EDA Kendrick Lane property. It should be noted that after being found guilty on 30 of 34 related criminal counts in Harrisonburg Federal Court in 2023, Jennifer McDonald was sentenced to 14 years in prison.

Royal Examiner file photo of Truc ‘Curt’ Tran outside EDA headquarters on December 20, 2018, with the initial ITFederal site construction underway behind him. Ironically, this was the day then-EDA Executive Director Jennifer McDonald resigned in the wake of a Closed Session of the EDA board. Royal Examiner Photos Roger Bianchini

Legal definitions

Before citing the legal arguments leading to the Court’s two rulings in favor of the EDA on Demurrer and Plea and Bar issues, we will review exactly what was on the legal table on those issues. An online search for the legal definitions of “Demurrer” and “Plea and Bar” filings told us this:

“A demurrer hearing is a court proceeding where the judge examines the legal sufficiency of a complaint (or an answer) without delving into the facts of the case. Essentially, the defendant” — the EDA in this case — “argues that even if all the facts presented by the plaintiff are true, they do not establish a valid legal claim or defense. The court then decides whether the claim or defense is legally valid based on the presented arguments.”

And: “a plea in bar (also known as a special plea in bar) is a legal defense that, if proven, would completely bar the plaintiff’s claim or the prosecution’s case, even if the facts alleged by the plaintiff were true. Essentially, it’s an attempt to end the case early based on a legal technicality, rather than contesting the merits of the case.”

Legal Arguments

During Wednesday’s hearing, it was argued by EDA attorneys Cullen Seltzer and Lee Byrd that the Tran/Lewisburg Way liability issue had been decided back in 2023 and could not be altered two years later. The time for a legal challenge of that ruling was within 30 days of the 2023 ruling by notice of an appeal, EDA counsel told the Court. EDA counsel noted that at the time of the initial ruling, Tran had complied with the court ruling of liability and turned the 73 acres of land over to the EDA. However, his attorney, David Jones Jr., argued that the transfer had been done by his client under the threat of arrest for non-compliance with the court ruling, not as a sign of agreement with the ruling.

Also, EDA counsel said that because the issue had initially been decided against Mr. Tran, and that since Tran’s interests and Lewisburg Ways’s interests were substantially identical, the 2023 ruling against Mr. Tran was binding on Lewisburg Way.

However, Tran/Lewisburg Way attorney Jones countered that the current EDA Board of Directors had not properly advertised upcoming meetings and meeting topics involving the EDA/Tran-Lewisburg Way LLC legal dispute, or had not had proper quorums present for votes related to the legal action with Tran and Lewisburg Way LLC. On behalf of his client, Jones even contended that the EDA’s retention of Sands Anderson as legal counsel in the matter should be nullified for similar procedural rule violations.

The current EDA Board of Directors at a recent meeting at which the Lewisburg Way LLC legal case was discussed. EDA counsel cited this reporter’s presence as an indicator the meeting was adequately and legally pre-advertised.

But after about two hours of arguments, with several recesses called for legal consultations, on Wednesday, Judge Funk rejected those Tran/Lewisburg Way arguments. Court was adjourned at 4 p.m. However, prior to adjournment, Judge Funk complimented both legal sides for their handling of the involved legal variables. Current EDA Board Chairman Rob MacDougall was present with EDA counsel, and Truc “Curt” Tran was present with his attorney.

Following the court ruling on Wednesday, we asked Tran’s attorney, David Jones Jr., about potential next steps. Jones told us, “We could appeal” without offering a hint of whether they would or not. So, stay tuned, litigation fans.

Our understanding is that once a final legal determination is made on possession of the 73 acres, if that possession stays in the hands of the EDA, the property will be sold. The revenue generated by that sale would then be distributed equally between the Warren County government and the bank that originally loaned the involved money to the EDA for the use of ITFederal, which has since been dissolved. That bank is believed to be First Bank & Trust.