WC EDA Re-Asserts Sands-Anderson Legal Representation in Dueling Litigations With ‘Curt’ Tran and His Lewisburg Way LLC

On Tuesday, June 17th, the Warren County Economic Development Authority (WCEDA, EDA) Board of Directors met to reassert a May Resolution authorizing the retention of EDA “financial scandal” related legal representation in hostile litigation brought against the EDA. According to the meeting agenda that litigation is with Lewisburg Way LLC, “created by Truc ‘Curt’ Tran as sole member & principal to purchase 73 acres off Happy Creek Road near Mary’s Shady Lane” for economic development. The EDA asserts that the purchase of the property was made with money loaned to Tran and ITFederal by the EDA. Thus, they contend the property was part of ITFederal, Tran assets awarded to the EDA in civil litigation.

The meeting’s lone Action Item, 3-A in the agenda packet, states: “Approval of Resolution Ratifying May 23, 2025, Resolution to Retain Legal Counsel to Represent the EDA in its Defense of Litigation filed by Lewisburg Way, LLC in the Circuit Court of Warren County.”

The agenda packet notes that the property was awarded to the EDA in late 2023″, but Tran has appealed that ruling and filed counter-litigation against the EDA, leading to the need for additional legal counsel representation. And with a motions hearing looming at 4 p.m. the next day in Warren County Circuit Court, verifying the authority to retain specified legal counsel in the cases was a priority. From plaintiff filings in the case, it appears the basis of the Tran, Lewisburg Way LLC counter litigation is that the court exceeded its legal authority in ordering a transfer of Lewisburg Way LLC corporate assets, the 73 acres of property, directly to the EDA due to corporate legal variables.

The FR-WC EDA Board of Directors prepares to re-approve resolution authorizing Sands-Anderson legal representation in litigations with ‘Curt’ Tran and his Lewisburg Way LLC company. From left are EDA board members James Fox, Bob Cullers, Chairman Rob MacDougall, Bruce Townshend, and David McDermott. Royal Examiner Photo Roger Bianchini

Attorney Rodney Young of the Timberlake-Smith law firm based in Staunton was present by remote hookup during the brief, five-minute meeting in which the EDA Board unanimously approved re-ratification of its legal representation in the case. Young is the current EDA counsel and was advising on how to proceed to make the Resolution approval legally sound.

However, since 2019, Sands-Anderson, based out of Richmond, has represented the EDA on litigation matters related to the Jennifer McDonald-centered embezzlement cases, circa 2014 to 2018. Tran and/or his ITFederal company were found civilly liable to the tune of about $14-million, including interest and punitive damages, in the round of EDA civil litigations of liability against defendants believed to have benefitted from the illegal or unauthorized movement of EDA assets under the direction of former EDA Executive Director Jennifer McDonald. McDonald is now imprisoned in the wake of her 30 convictions out of 34 criminal charge counts tried in federal court in Harrisonburg in 2023.

Tuesday’s reapproved Resolution asserts that it is attorneys from Sands-Anderson that should represent the EDA in court on these dueling litigations involving Tran’s company’s developmental property purchase off Happy Creek Road just west of Mary’s Shady Lane with an EDA loan.

But the EDA’s Sands-Anderson counsel ended up not having to make the trip up from Richmond on Wednesday. Following Tuesday’s Special Meeting it was learned that the planned preliminary hearing in which legal arguments would have been heard had been changed to a hearing to set a date for those arguments to be submitted to the court. The date set for that Demurrer Hearing is July 9, at 1:30 p.m. before Judge Daryl Funk.

Online research led us to this definition of a Demurrer Hearing:

“A demurrer hearing is a court proceeding where a judge hears arguments about a legal document called a demurrer. A demurrer challenges the legal sufficiency of a claim or pleading, arguing that even if the facts presented are true, they don’t meet the legal requirements for a valid cause of action. The hearing allows the judge to decide whether the case can proceed based on the challenged pleading.”

We asked EDA Board Chairman Rob MacDougall about the need to reapprove the resolution initially presented and voted on in May. He told us, “Due to the absence of a board member at the May regular meeting, and the remote attendance of another board member at the May regular meeting, the board did not have the proper quorum required to pass the resolution in May. We convened this special meeting and passed the resolution outlining the specifics of Sands-Anderson’s defense representation of the EDA vs. Lewisburg Way LLC.”

The reasserted Resolution approved by a 5-0 vote of physically present EDA Board members on June 17th reads as follows in its entirety:

Resolution of the Board of Directors of the Industrial Development Authority of the Town of Front Royal & the County of Warren, Virginia (the’ EDA”) to Ratify Resolution Adopted on May 23, 2025 to Retain Legal Counsel to Represent the EDA in its Defense of Litigation filed in the Circuit Court of Warren County by Lewisburg Way LLC

WHEREAS, the EDA adopted a Resolution on May 23, 2025 to retain legal counsel to represent the EDA in it defense of litigation filed in the Circuit Court of Warren County by Lewisburg Way LLC and to direct the Board Chair and Secretary to execute the Client Engagement Agreement with legal counsel to memorialize the current terms and conditions of such engagement and representation, and

WHEREAS, to resolve any ambiguity or uncertainty regarding the legal effectiveness of the May 23, 2025, Resolution and the action taken by the Board on that date to approve the Resolution, the Board wishes to ratify and approve the May 23, 2025, Resolution; and

WHEREAS, as early as 2019, the Board had approved the engagement of Sands-Anderson PC to represent the EDA in connection with Jennifer McDonald’s misconduct and related matters, and since that time and continuously the Sands-Anderson firm has represented the EDA in dozens of matters; and

WHEREAS the action involving Lewisburg Way LLC stems from recovery by the EDA of property purchased with money loaned by the EDA to the IT Federal LLC, managed and owned by Truc ‘Curt’ Tran, and the subject property is part of a collection effort to satisfy in part judgment owed by IT Federal, LLC and Mr. Tran to the EDA; and

WHEREAS, for the foregoing reason defense of the Lewisburg Way, LLC litigation is related to the EDA’s engagement of Sands-Anderson PC in 2019;

NOW, THEREFORE, BE IT RESOLVED THAT:

1. The EDA Board of Directors hereby ratifies and approves in its entirety the May 23, 2025, Resolution attached hereto; and
2. The EDA Board of Directors affirms that Sands-Anderson PC was authorized to defend the now pending Lewisburg Way LLC as a matter related to the McDonald-related litigation contemplated by the 2019 engagement of Sands-Anderson.

Adopted: June 17, 2025