McDonald default judgement penalty arguments continued to future date

A potential default judgment liability showdown between Front Royal-Warren County Economic Development Authority attorneys and former EDA Executive Director Jennifer McDonald’s counsel did not happen during a virtually conducted Warren County Circuit Court hearing on Friday, May 8. Present in the Warren County Courtroom for the 2:30 p.m. EDA civil motions hearing was Judge Bruce D. Albertson, the court clerk, bailiff, and two media representatives (move down another seat, Josh). All involved attorneys – no defendants were acknowledged during the hearing – were linked in by phone connection.

Court files showed that Judge Albertson removed arguments on damages from a January 10 default judgment against McDonald on April 23 in the wake of receipt of a letter from McDonald’s attorney objecting to the planned May hearing date.

In an April 15 letter to the court filed April 20, McDonald attorney Peter Greenspun noted his “strenuous objection to any action being taken or order entered” on May 8. Greenspun indicated he felt he had been left out of previous communications between the court clerk’s office and “all other parties”, including other EDA civil case defendant counsel.

Greenspun referenced a suggestion the May 8 motions hearing for multiple defendants would last one hour, countering that his estimate was his client’s hearing on default judgment damages would last “two to three days”.

Jennifer McDonald at the time of one of her arrests on related criminal charges. Thirty-four criminal indictments against her have been dropped largely to prevent speedy trial statute violations from kicking in. However, the EDA civil litigation against McDonald and alleged co-conspirators proceeds as the new criminal case prosecutor bides his time on potential refiling of criminal charges. Royal Examiner File Photos

At issue here is what judgment against McDonald will be ordered by the court for a failure to respond to civil court orders for information on her two real estate companies, DaBoyz and MoveOn8, which are also listed defendants in the EDA civil litigation. That failure to respond to court orders for information on her real estate companies came during a time of legal flux for the former EDA executive director around whom all the other defendant allegations seem to revolve.

Her initial civil case attorney Lee Berlik and his Berlik Law firm had withdrawn from her civil defense during the period of the court order to provide information on her real estate companies to the court and plaintiff counsel.

Prior to the Berlik firm withdrawing from the case, questions had been raised in court about the method by which McDonald had paid Berlik law, including the alleged use of $10,000 of EDA funds through the Afton Inn Renovation Project. Also, evidence introduced by Berlik Law on their client’s behalf in one hearing also had been alleged by plaintiff witnesses, including former County-EDA attorney Dan Whitten, to have been forged. Courtroom discussion indicated a belief the forgery did not originate with her counsel, but rather by McDonald in presenting documentation in support of her case to her counsel.

While there was little courtroom discussion during the January 10 hearing regarding potential damages from the default judgment, the involvement of information on her two real estate companies alleged to have been used to misdirect EDA assets could conceivably bring portions of those companies’ real estate holdings into play in the default judgment ruling.

McDonald was fined $350 on the January 10 civil contempt judgment against her. That was all plaintiff counsel was seeking regarding McDonald’s attempt to move a piece of property previously frozen as a case-related asset by Judge Clifford L. Athey Jr. before leaving the case for a seat on the Virginia Appeals Court.

Having just taken on McDonald’s civil case assignment after the withdrawal of her original counsel, Greenspun argued that his client’s attempt to move the parcel through her sister Gail Addison was a simple mistake made while attempting to raise revenue for her legal expenses. It was a mistake rectified voluntarily once discovered by her new attorney, Greenspun told the court in January.

Greenspun was present at the outset of the May 8th hearing with other defense counsel and plaintiff attorneys. However, he alerted the court he would soon have to leave for another appointment.

So, Greenspun was not present when the date of June 18, on the 9 a.m. docket was agreed to by the court and other defense counsel involved in Friday’s hearing.

Jennifer McDonald and counsel will be back in court for default judgment penalty arguments, it is just not clear exactly when; or whether in person or by remote pandemic emergency management precautionary connection. Other EDA civil defendants are slated for motions hearings on the morning docket of June 18.

The primary arguments made by plaintiff and defense counsel on May 8 were whether there were substantive grounds in the EDA’s amended civil suit to charge McDonald’s former Administrative Assistant Michelle “Missy” Henry with intentional acts rising to the level of conspiracy or breach of fiduciary duty, with which she is charged civilly.

See our related story on those arguments on Michelle Henry’s civil liability.

Henry civil case attorney argues insufficient evidence to proceed against her