M-VETS Finalizes Seven-Year Litigation to Assist Servicemember in Securing Return of Security Deposit After Battling Through Federal and State Court

(Pictured: Historic Fairfax County Courthouse)

The Mason Veterans and Servicemembers Legal Clinic (M-VETS) closed one of its oldest and most unique cases in December 2017, securing ordinary relief through unorthodox means. M-VETS represented an active-duty Servicemember and his wife in seeking the return of their security deposit in 2010.  M-VETS finalized the matter last month, resulting in the recovery of the entire security deposit, plus seven years of interest.

In a bizarre case that began and ended in the Historic Fairfax County Courthouse, the original judgment in favor of the Servicemember was appealed to the Circuit Court, where M-VETS prevailed on summary judgment. The Landlord subsequently filed an appeal to the Virginia Court of Appeals—though unbeknownst to M-VETS or its clients, the landlord had also filed bankruptcy during the pendency of both appeals.  The bankruptcy triggered the automatic stay with respect to all litigation at the State court level.

Because the Servicemember was not listed as a creditor in the Landlord’s bankruptcy, M-VETS filed an Adversary Proceeding in the United States Bankruptcy Court for the Eastern District of Virginia to lift the stay and have the debt deemed non-dischargeable in the Landlord’s bankruptcy. M-VETS obtained a final order from the bankruptcy court in the fall of 2016, which ordered the relief sought to move forward at the State court level.

With the automatic stay lifted, the Virginia Court of Appeals, which lacked subject matter jurisdiction, transferred the Landlord’s appeal to the Supreme Court of Virginia where the landlord sought to amend her notice of appeal and sought an extension of time to file her petition for appeal. M-VETS drafted and filed an opposition brief to the Landlord’s motion and prevailed in having both motions denied.

In May of 2017, the Supreme Court of Virginia issued a final order finding no reversible error in the Landlord’s appeal and denying the petition for appeal. Shortly thereafter, M-VETS filed a motion in the Circuit Court for the release of the civil appeal bond in the full amount of the security deposit and filing fees.  Although the motion was granted, the Servicemember was still owed seven years of interest on the judgment.  To collect on that amount, M-VETS filed a wage garnishment in the Circuit Court, which came to a final resolution with the interest amount paid in full to the Servicemember in December of 2017.

The successful resolution required the hard work of M-VETS Attorneys and Student-Advisors drafting motions, briefs, and orders throughout trial, various motions and several appeals before both federal and state courts in the Commonwealth. Over the course of the representation, more than 10 M-VETS Student-Advisors worked tirelessly on the matter, including current Student-Advisor, Lindsey Turok, who brought the case to finality.

“We can’t believe that this 7-year ordeal is [] finished. Thank you [M-VETS] for everything you have done for us.  We wouldn’t have this end result if it wasn’t for all of [M-VETS] work and all of the previous M-VETS lawyers and students on our case,” said the clients.

Regarding the outcome, M-VETS Managing Attorney Leigh Winstead stated: “This case took a very unusual course and required the efforts of many students and M-VETS personnel to reach a successful conclusion for our very deserving clients. Without pro bono assistance on this matter, the attorneys’ fees required to litigate at the federal and State court levels would have far exceeded the amount collected.  We are grateful for the opportunity to be able to secure a just result for an active duty servicemember and his family.”

M-VETS assists veterans, servicemembers, and their dependents in a variety of civil matters, including uncontested divorces, landlord/tenant matters, consumer protection and contract disputes, as well as in military/VA administrative matters, including MEB/PEBs, discharge upgrades, and VA disability compensation appeals.