virginia business- dec. 2013
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Ripple effects from family feud p. 28 2013 Virginia Legal Elite p. 35
VIRGINIA’S SOURCE FOR BUSINESS INTELLIGENCE
DECEMBER 2013
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www.VirginiaBusiness.com
Tonya MalloryCEO, Health Diagnostic Laboratory Inc.
Regent University law
Regent Law delivers extraordinary results at a global level, including moot court wins in competitions that included Harvard, Yale and University of Oxford.
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2 DECEMBER 2013
VirginiaBusiness.com
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Contents
BERNARD A. NIEMEIERpresident & [email protected](804) 225-1366
KEVIN DICKproduction [email protected](804) 225-0433
ROBERT C. POWELL [email protected](804) 225-8859
ADRIENNE R. WATSONart [email protected](804) 225-8219
PAULA C. SQUIRESmanaging [email protected](804) 225-5591
JESSICA SABBATHspecial projects [email protected](804) 225-0443
Virginia Business (USPS 001-387, ISSN 0888-1340) is published monthly by Virginia Business Publications, LLC, 1207 E. Main Street, Suite 100, Richmond, VA 23219. Subscriptions: U.S. and possessions: $48.
Periodicals postage paid at Richmond, Va. Postmaster: Send address changes to Virginia Business, 1207 East Main Street, Suite 100, Richmond, VA 23219.
Copyright 2013 Virginia Business Publications, LLC. All editorial material is fully protected and may not be reproduced in any manner without prior permission.
For additional reference: SRDS #20A – Business-Metro, State and Regional
Virginia’s source for business intelligence.
SPECIAL REPORT: 2013 LEGAL ELITE...p. 35
37 KEEPING TABS ON THE ECONOMY
Legal Elite lawyers offer perspectives from their specialties.
41 LEGAL ELITE LISTS
44 LEGAL ELITE PROFILES
COMMERCIAL REAL ESTATE: RETAIL>>
90 AN APPETITE FOR GROWTH Retail activity picks up in Virginia with a
push from grocers and restaurants. by M.J. McAteer
COMMUNITY PROFILE: ROANOKE/NEW RIVER VALLEY>>
95 REGIONAL REVIVAL Manufacturing, tech sectors helping to
rebuild area’s economy. by Mason Adams
features
COVER STORY: 2013 VIRGINIA BUSINESS PERSON OF THE YEAR>>
GAME CHANGER Mallory wants to revolutionize the practice of medicine in the U.S. by Richard Foster
December 2013
Photo by Clement Britt
Helping Find Solutions
Altria Today
Philip Morris USAU.S. Smokeless Tobacco Company
John MiddletonSte. Michelle Wine Estates
Philip Morris Capital Corporation
Take a closer look at ALTRIA.COM
©Copyright 2013 Altria Group, Inc.
Altria’s companies produce premium tobacco products and wine for adult consumers. As attitudes toward tobacco have changed, we’ve made signifi cant changes in the way we do business. Our companies:
, including on our websites – and provide information to help tobacco users who want to quit.
Help reduce underage tobacco use – funding the widely-recognized We Card® age verifi cation program and non-profi t community groups that help kids make healthy decisions.
only major tobacco company to do so – and continue to talk with policymakers and others to help address industry issues.
Our tobacco companies are America’s leading tobacco product manufacturers, with premium brands like Marlboro, Copenhagen and Black & Mild – and we’ll keep working to fi nd solutions that help meet society’s expectations. It’s our way of doing business at Altria today.
Altria is working to fi nd solutions to today’s tobacco issues.
4 DECEMBER 2013
www.VirginiaBusiness.com
departments
BUSINESS LAW>>
28 FAMILY FEUD Is The Disthene Group
settlement a cautionary tale for closely held companies?
by Paula C. Squires
COMMERCIAL INSURANCE >>
81 ASSESSING THE DANGER Many companies facing broader
risks than before. by Joan Tupponce
84 MARKEL EXPANDS ITS SCOPE
Alterra deal extends its presence in reinsurance and the global marketplace.
AIRPORTS >>
87 NO FLIGHT OF FANCY Consolidating airline industry
makes airports more competitive.
by Gary Robertson
TECHNOLOGY>>
93 A SAFER DRIVE? Virginia Tech institute tests
automated vehicle technologies. by Richard Foster
HEALTH CARE>>
100 NAVIGATING THE PITFALLS
Website improves, but wave of cancellations upsets policyholders. by Robert Burke
business trends
VirginiaBusiness.com Contentscontinued
6 Letters to the Editor
7 Events calendar
8 Index
9 Our View
11 Out & About with Virginia Business
12 Global/Local View
14 Regional Views
101 Preview
Vol. 28 DECEMBER 2013 No. 12VIRGINIA BUSINESS PUBLICATIONS LLC
President & Publisher Bernard A. Niemeier
Editor Robert C. Powell III
Managing Editor Paula C. Squires
Special Projects Editor Jessica Sabbath
Special Projects Asst. Editor Veronica Garabelli
Contributing Writers Mason Adams
Robert Burke
Richard Foster
M.J. McAteer
Gary Robertson
Joan Tupponce
Art Director Adrienne R. Watson
Contributing Illustrator Matt Brown
Contributing Photographers Clement Britt
Rick DeBerry
Steven Mantilla
Mark Rhodes
Production Manager Kevin L. Dick
Circulation Manager Karen Chenault
Accounting Manager Sunny Ogburn
ADVERTISING Vice President of Advertising Hunter Bendall
CENTRAL VIRGINIA1207 East Main Street, Suite 100, Richmond, VA 23219
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540.983.9300 | Toll-free: 866.983.0866 | gentrylocke.com
Former federal prosecutor T homas J. Bondurant, Jr., along with Guy Harbert, Scott Austin, and Justin Lugar, have more than 85 years of combined experience representing corporations and individuals in the following areas:
· FDA & foodborne illness· Energy tax credit fraud· Pharmaceutical crimes· Bank, mortgage & wire fraud
· Internal investigations · International & domestic tax crimes· Espionage· T heft of trade secrets
6 DECEMBER 2013
Letters to the Editor
Full effects of the sequester’s damage are yet to be seen
To the Editor,
In fiscal year 2013, we saw the sequester do great damage to the
U.S. military’s readiness [“Fairfax feels the effects of Washington’s blunders,” editor’s column, November issue]. The deploy-ment of an entire carrier group to the Persian Gulf, and maintenance for hundreds of
aircraft and ships, were cancelled. One third of the entire aircraft fleet (including many combat units) of the Air Force was stood down for a lack of funding. The Army and the Marines have can-celed training for all their units except those deploying, or preparing to deploy, to Afghanistan or South Korea.
And yet, that was just the foretaste of the damage sequestration will do, in the long term, to America’s military if this cretinous, suicidal mechanism is allowed to remain the law.
According to the Army’s chief of staff, he’ll have only two to three fully combat-ready brigades left. The Air Force’s chief of staff says he’ll have to retire entire fleets of planes, including the B-1, the A-10 and the KC-10 tanker. The chief of naval operations says he’d have to defer maintenance on hundreds and hundreds of Navy aircraft and war-ships, reduce planned ship and plane buys significantly, and be unable to enter into money-saving multiyear procure-ment contracts. The Marines would have to cancel every modernization program except their new amphibious tractor.
And all four services will decline dramatically in size: for example, the
Army would be cut to 380,000 active duty personnel, the Marines to 150,000 or fewer, and the Navy will decline to just 230 vessels, at a time it can meet only 59 percent of COCOM’s [Combatant Command’s] requests for warships.
And since the Navy will, like other services, be hit hard, Virginia and its ship-building industry will suffer greatly, too.
The only thing good about this damage to the nation’s military is that it has, and will continue to, utterly disprove the falsity of those who downplayed, and continue to downplay, the damage this mechanism is doing to America’s defense.
Zbigniew MazurakNorfolk
Mazurak is a defense correspondent with ConservativeDailyNews.
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84 NOVEMBER 2013
Fairfax County feels the effects of Washington’s blunders
Fairfax County is an economic juggernaut. Nonetheless, one of its biggest assets, proximity to Washington, D.C., is becoming a liability.
Virginia’s most populous county (approaching 1.2 million residents), Fairfax has a lot going for it:
• With a median family income of $124,831 in 2011, Fairfax is the second-wealthiest county in the nation.
• Its unemployment rate for July, the latest month available, was 4.3 percent, one and a half percentage points lower than the state average.
• The county is home to 10 companies on the Fortune 500 list. The group likely will grow to 11 when Hilton Worldwide becomes a publicly owned company.
• The county accounts for 48 percent of U.S. government contract dollars awarded in Virginia, more than $24 billion in fiscal year 2012.
• More than 6,700 technology firms employ more than 144,000 workers in the county, making it the largest con-centration of technology jobs of any major U.S. market.
In addition, the reach of the Fairfax County Economic Development Authority would be the envy of many state govern-ments. It has U.S. offices in Tysons Corner, Los Angeles and Boston, and foreign offices in Bangalore, London, Seoul and Tel Aviv. Likely as a result of its over-
seas presence, the county is home to nearly 400 companies from 42 countries.
The Fairfax EDA seems to have a Midas touch in reeling in business prospects. It usually bests frustrated competitors in the District of Columbia and Maryland in any contest for a highly sought-after prize like the Northrop Grumman headquarters, which relocated from Los Angeles to the Merrifield area in 2011.
One of Fairfax’s best selling points has been its location just outside Washington. Northrop Grumman moved its headquar-ters to be closer to its biggest customer, the federal government. Being near the capital also is the reason that more than 300 trade groups and professional associations have their headquar-ters in the county.
But proximity to D.C. also means being subject to the erratic vicissitudes of the federal government. While Fairfax has succeeded in diversifying its economy in recent years, about 14 percent of its residents are federal government employees and many others work for government contractors.
The Fairfax County EDA says the commercial real estate vacancy rate in the county in June was running 16.9 percent, up from a normal level of 10 to 12 percent. That represents about 18 million square feet of empty space.
In addition, the number of Fairfax homes in foreclosure rose 144 percent in September, the largest increase among counties with populations of at least 1 million, according to Bloomberg News.
The culprit in both cases is sequestration, the 10-year, $1.2 trillion cycle of automatic budget cuts to defense and domestic programs that Congress and the president blundered into earlier this year. ”Sequestration has had a trickle-down effect, dampening confidence and creating an atmosphere of uncertainty,” says Ger-ald Gordon, the president and CEO of the Fairfax County EDA.
The Washington-based Bipartisan Policy Center told Bloom-berg News the jump in foreclosures was caused by “sequester pain” felt by federal employees facing furloughs starting in June.
Fairfax’s high vacancy rate and rising foreclosures were recorded before another political impasse caused a partial shut-down of the federal government beginning Oct. 1.
Virginia, which is home to more than 170,000 federal employ-ees, was expected to be the state most affected by the shutdown, although the damage would not be known until revenue data were announced in late October.
Fairfax’s experience under the shutdown could make a dif-ference in that state total. The county is a net exporter of state revenue, getting back only 19 cents of every state tax dollar it generates, according to the Fairfax County EDA.
The sad truth is that many other local economies in Virginia, few of whom have Fairfax’s advantages, also are paying the price for the government’s senseless, self-inflicted wounds.
The meat-ax cuts of sequestration, for example, were sup-posed to be so indiscriminate and “stupid” that no fool, Democrat or Republican, would allow them to be enacted. Virtually every Virginia elected official opposed the defense cuts because of the effect they could have on the state economy.
The idea behind sequestration, hatched as a bargaining move in the 2011 debt-ceiling crisis, was to force the opposing parties to the negotiating table to craft an intelligent process to cut fed-eral spending. That didn’t happen, so sequestration took effect by default. The last-minute deal that reopened the government and narrowly avoided economic catastrophe resolved nothing, setting the scene for another test of brinkmanship this winter.
The same sort of slow-moving political train wreck led the partial government shutdown and threatened to push the gov-ernment into default.
During the shutdown, former Indiana Sen. Evan Bayh told an audience at the College of William and Mary that political compromise once was considered an art. Now, he said, it is con-demned as an act of betrayal by fringe elements in both parties. Politicians pride themselves by standing by their principles but accomplish nothing for the good of the country. The result is a federal government that lurches from crisis to crisis with no coherent plan.
If the Washington Redskins are looking for a new team name, I have a suggestion: the Washington Gridlocks. That says it all about their hometown.
InsideView
by Robert Powell
from the Editor
Photo courtesy Fairfax County Economic Development Authority
The Reston skyline in Fairfax County.
www.VirginiaBusiness.com VIRGINIA BUSINESS 7
Items on the calendar are just a sample of statewide business events in the commonwealth this month. To
see more events visit www.VirginiaBusiness.com. To submit an event for consideration, email Veronica
Garabelli at [email protected] about two months before the event.
D E C E M B E R E V E N T S
e e justalend
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in Virginia’s business communityUpcoming Events Upcoming Events
Dec. 3
Hampton Roads Chamber of
Commerce’s Holiday Gala &
Marketplace
Virginia Beach
This yearly event at the Founders Inn and Spa allows
companies to market their products to businesspeople.
www.hamptonroadschamber.com
Dec. 5
Asian Chamber GalaRichmond
This annual event at The Jefferson Hotel is sponsored by the Virginia Asian Cham-ber of Commerce and Virginia Asian Foundation.
www.asianchambergala2013-eorg.eventbrite.com
Dec. 5
Roanoke Regional
Chamber of Commerce’s
Annual Meeting of the
MembershipRoanoke
More than 500 people are expected at The Hotel Roanoke & Conference
Center for Roanoke Regional Chamber of Commerce’s annual meeting.
www.roanokechamber.org
Dec. 6
Ultimate NOVA
Business ExpoFairfax
This event at Shriners Inter-national is meant to help busi-nesses grow and promote themselves.
www.ultimatenovabizexpo.
com
Dec. 10Make Them Stick – Resolutions with an
ImpactHenrico
Hosted by the Richmond chap-ter of National Association of Women Business Owners, the event at Lewis Ginter Botanical Gardens is aimed at teaching participants how to keep New Year’s resolutions.
www.nawborichmond.org
Dec. 12Fairfax Chamber’s
Annual Holiday
ReceptionMcLean
The Fairfax County Chamber
of Commerce will hold its holi-
day party at the Hilton McLean
Tysons Corner.
www.fairfaxchamber.org
8 DECEMBER 2013
AAdvance Auto Parts Inc. 98Alterra Capital Holdings
Ltd. ......................... 84
BBell, Troy ....................... 89Bertini, Lisa A. .............. 64Blanco, Myra................. 93Bopp, Aric ..................... 95Bowen, Robert .............. 89Brian Wishneff &
Associates .............. 14Bryant, John ................. 97Burke, Michele .............. 29Burke, Michele K. .......... 30Burns, Chris .................. 81
CCampbell, Greg ............. 87Carilion Clinic ................ 95Celanese Acetate ........... 95Center for Advanced Drug
Research................. 16Cha, Derek .................... 92Chapman, Bill ............... 98Chapman, Dr. Christopher
C. ............................ 19Charlottesville Albemarle
Airport, ................... 88Colgate, Curtis .............. 28Colgate, Jeanne Dixon .. 31Colgate Sr., Marion J.
“Boyd” .................... 29Colucci, Thomas J. . 37, 70
Cornerstone Architects PLC ......................... 14
Courtney, Mark ............. 88Cox, Robert K. ........ 37, 54Craddock Jr., John H. ... 28Crawford, Melinda ........ 88Curry, Matt .................... 18Curtis, Marshall M. ....... 62Cushman &
Wakefield|Thalhimer 90
DDavison, Larry .............. 98Decker, Keith ................. 12Denison, James ............ 92Devil’s Backbone
Brewing .................. 97Dingus, Thomas A. ....... 93Disthene Group Inc., The 28Divaris, Gerald S. .......... 92Dixon, Guy B. ................ 28Dixon Jr., Gene B. ......... 28Doerzaph, Zachary ........ 94Doughty, Beth ............... 95Dwelle, Mark ................. 84Dyson, Lisa ................... 24
FFarnam, Robert ............. 84Fenton, Leslye S. .......... 44Fickensher, Ross........... 14Fillingane, Dr. Sam ........ 23Flying Mouse Brewery .. 97Friedman, Frank K......... 46
GGee III, Everett W. ......... 31General Auto Parts
International Inc. .... 98Good Food – Good
People..................... 97Grede Holdings LLC ..... 95Greeson, Thomas W. .... 60
HHealth Diagnostic
Laboratory .............. 20Hickory Ground Solutions
LLC ......................... 17High Liner Foods Inc. ... 12Horner & Perks ............. 15Hybrid Shop, The .......... 18
JJohnson, Steve ............. 92Jones, Christopher
A. ...................... 37, 48J.R. Tharpe Trucking Co.
Inc. ......................... 31
KKapadia, Dr. Shaiv......... 22Katz, Phyllis C. .............. 66Kelley, Jeff .................... 22Khan, Faisal .................. 98Kim, Annah ................... 92Kodukula, Krishna ........ 16Kyanite Mining Corp. .... 28
LLeClairRyan .................. 28Lynchburg Regional
Airport .................... 88
MMaggard, Derick ........... 95Mallory, Tonya .............. 20Malone, Christopher M. 52Markel, Anthony ........... 84Markel Corp. ................. 84Mauck, Hutch ............... 84McConnell, Joe ............. 21McDonnell, Gov. Bob .... 96
McNamee, Brett Womack ................. 90
Meredith, Joe ................ 95Moore, R.C. .................. 81Moos, Walter ................ 16Morrill, Chris ................. 98Morrison, Bart .............. 17Moseley, Walton ........... 31Mullan, Dr. Michael J. ... 19
NNewcomb, Sharon ........ 29Newport News/ Williamsburg
International ........... 89Nielsen, Connie ............. 91Nielsen, John ................ 91Norfolk International
Airport .................... 88
OO’Donnell, Patrick H. .... 56Ostroff, Gretchen M. ..... 74Owens, Mary Burkey .... 58
PParkway Brewing
Company ................ 97Perito, Paul L. ............... 19Peterson, Richard ......... 14
RReamer, Tim ................. 91Redcoat Solutions ........ 16Richmond International
Airport .................... 89Roanoke Regional
Airport .................... 88Roberts Jr., George H.
“Skip” ..................... 50Rose, Neil L. ................. 72Roush, Jane Marum ..... 29
SSaez, Ignacio ................ 95Schutt, Chris ................. 82Scott Insurance ............ 84Shenandoah Valley Regional
Airport .................... 87Shifflett, Garrett ............ 14Shima, Hiroshi .............. 24Shuck, Jacqueline ......... 88
Skunda, Robert ............. 23Snyder, Mike “Keno”..... 97SRI Biosciences ............ 16SRI International ........... 16Stanchina, John ............ 82Star Scientific Inc. ........ 19Stone Ridge
Development .......... 14Strickland, Wayne ......... 96Sullenberger, Robin ...... 16Summers, Bob.............. 15Sunken City Brewery .... 97Supply Chain Visions
LLC ......................... 17sweetFrog ..................... 92Sydnor, Walker ............. 84
TTECHLAB ...................... 95TechPad ........................ 15Tharpe, Tim .................. 31Thompson, Bruce ......... 32Tron, Jesse ................... 90
VVirginia Tech ................. 93Virginia Tech Carilion
School of Medicine and Research Institute .. 95
Virginia Tech’s Corporate Research Center ..... 95
Virginia Tech Transportation Institute .................. 93
WWalker, Ed ..................... 98Warnick, G. Russell ...... 25Washington Dulles
Internationaland Reagan National ..... 87Washington Redskins ... 22Weaver, Tenley .............. 97Williams, Raven ............ 92Williams Sr., Jonnie ...... 19Wolf, Thomas ............... 29Wright, Rob .................. 92
YYingling, Rob ................ 87
Advertiser Index Index of companies and individualsAEP ...............................................33Aetna ............................................85Albo & Oblon ................................67Allen&Allen - Jamie Hessel ...........78Altria ...............................................3Appalachian Power .......................96Association Of Fundraising Proff. .23Bankers Insurance ........................82Barnes & Diehl ..............................43Batzli Stiles ...................................45Butler Royal ..................................69Christian Barton ............................71City of Harrisonburg .......................6CowanGates-Frank Cowan............77CowanGates-Melanie Friend .........77David Ventker -Ventker & Warman 79Dimuro Ginsburg ..........................79Dixon Hughes ...............................38DurretteCrump ..............................65FCCI ..............................................26Franklin Solutions .........................77
Fulton Bank ...................................25Gentry Locke Rakes & Moore ........5Hall & Hall .....................................55Hampton Roads Community Fd. ..65HDJN ............................................39Juridical Solutions-John McGrath 77Locke & Quinn ..............................51Luis Abreu ....................................73Martinair .......................................89McCandlish Lillard ........................36Mclean Faulconer .........................32MichieHamlet ................................59Norris & St. Clair PC .....................77Owen & Owens-Mary Owens .......78Owen & Owens-Sam Kaufman .....78Pender & Coward .........................75Premier Bank ..................................8RCM&D ........................................83ReedSmith ....................................53Regent School of Law ....................1Roanoke College ...........................97Rutherfoord ..................................80
Sacks & Sacks ..............................67Sands Anderson ...........................40Scott Insurance ............................ ifcSevila Saunders ............................63Spotts Fain ....................................63StellarOne .....................................98The Boleman Law Firm .................78The Susan Hicks Group ................59Thompson McMullan ...................76Union First Market Bank ...............37Vanderpool Frostik........................61Vandeventer Black ........................57VEDP .............................. Back coverVMFA ............................................25VSCPA ..........................................10VT University Relations ................99Walton & Adams ..........................79Willcox & Savage..........................47William & Mary Mason School .....24Woods Rogers ..............................73Yama Shansab ..............................77
www.VirginiaBusiness.com VIRGINIA BUSINESS 9
OurView from the Publisher
The sky’s been falling in Dee Cee for a while now. We’ve been seques-tered, jumped over the fiscal cliff,
shut down, debt ceilinged, Obamacared and so on. Interestingly, all of this political woe really hasn’t mattered much on Wall Street. In fact, just the opposite is true.
When talk of lower government spending turns toward the possibility of the Federal Reserve backing away from its $85 billion in monthly bond purchases, it sends shudders through the markets. Businesses benefit from low interest rates. Government spending creates jobs help-ing to drive consumer spending. Though politically unpopular, this is apparently the new normal for economic stability.
The irony is that what makes sense personally is often different from what makes sense politically. Neither our pocketbooks nor our politics follow the same calculus as business profits.
Equating politics and business should lead to the conclusion that the sky has been falling both in Dee Cee and on Wall Street, something that clearly hasn’t been happening. The S&P 500 and the Dow Jones industrial average have been hitting record highs in recent months. Going back over two years, a time before sequestration, the S&P 500 has risen more than 40 percent — not a bad return for 24 months, during a time when many have assumed that political instabil-ity should imply economic uncertainty.
Looking at Virginia’s 15 largest public companies between November 2011 and November 2013, only one of them dropped in share price, and the unweighted average share price gain for the group was about 40 percent, roughly even with the S&P 500.
Of special note is Smithfield Foods, which exited the ranks of Virginia’s pub-lic companies in September after being bought by Shuanghui International Hold-ings Ltd. Nevertheless, Smithfield’s stock rose over 50 percent during its last two years of public trading.
Shares of Leidos Holdings Inc. are a bit more complicated. The company formerly known as SAIC underwent a spin-off and 1-to-4 reverse stock split in September. Accounting for the split and adding back the spinoff, the pro forma combined Leidos/SAIC price per share has gone up a bit over 50 percent in the past 24 months.
Alpha Natural Resources the only company in Virginia’s top 15 to decline in value over the past two years, plum-meted by 70 percent. Increased environ-mental regulation, lower foreign demand for metallurgical coal and an increased supply of lower priced shale gas have combined to dampen share prices across the entire coal sector.
Genworth’s share price gain of 100 percent over the past two years makes it the leader among Virginia’s top 15 public companies. New CEO Tom McInerney
shelved a planned IPO for the compa-ny’s Australian mortgage insurer and cut costs. At the same time the company has benefited from increasing pricing power for long-term care insurance and a recovery in the U.S. mortgage insur-ance market.
Similarly, Northrop Grumman has seen it’s share price rise by more than 90 percent since last 2011. No doubt, sequestration has been difficult, but it hasn’t done much to impair the value of this company or for that matter any of the largest government contractors in Virginia.
This brings me back to politics and business. Despite ongoing saber rat-tling about government bond ratings, confidence in markets, and the reputa-tion of our democracy, business seems to be doing okay. The Great Recession officially ended in June 2009. Recessions are defined by economic measures, not political ones. Though the U.S. political environment remains embarrassingly choked by partisanship, business earnings continue to improve and opportunities exist for those willing to seize them.
As mentioned, low interest rates are good for business. A recent Bloom-berg News article on cable-magnate John Malone quoted him as saying, “A combination of cheap money and a gloomy view of the future gives rise to opportunity for those who aren’t quite so gloomy.” That’s’ a pretty good descrip-tion of what opportunity looks like these days. It’s something that can be missed by clinging to a pessimistic view of busi-ness conditions.
Economic ups and downs tend to run in about 10-year cycles. With the last recession ending in mid-2009, we are somewhere around half-way to the next peak. Looking at the recent results of Virginia’s top companies, things are better than they seem. As we approach 2014 politics may continue to disappoint, but business is doing just fine.
Don’t mistake politics for businessby Bernie Niemeier
Photo by Mark Rhodes
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www.VirginiaBusiness.com VIRGINIA BUSINESS 11Photos by Kevin Schindler, courtesy Virginia Chamber of Commerce
Out & About with Virginia Business
1. Sherelyn D. Hammett, a health strategies consultant, talks with Bill Ermatinger at UnitedHealthcare interactive display.
2. Gov. Bob McDonnell; Ryan Wall, University of Phoenix; and Jennifer Burns, University of Phoenix.
3. Glenda Scales, Virginia Tech.
4. Barry DuVal, Virginia Chamber of Commerce, and Bill Ermatinger, Huntington Ingalls Industries.
5. Carol Stillman, Cisco Systems Inc.
6. Don Finley, Virginia Business Higher Education Council, and Laura Fornash, secretary of education.
7. Gil Bland, State Council of Higher Education for Virginia, and Tony Maggio, House Appropriations Committee.
3
1
Virginia Summit on Economic Competitiveness & Higher Education, Richmond
Share photos of special events at your company with Virginia Business. Email them to Adrienne R. Watson, [email protected]. Photos not used in the magazine may be posted on our Web site.
2
4 5
76
12 DECEMBER 2013
Global/Local View: High Liner Foods Inc., Newport News
Economy in ReykjavikThe capital and largest city in
Iceland, Reykjavik is a major
player in the economic growth
of the country. Industries include
geothermal energy, seafood,
biotech, medical equipment
and information technology.
Large employers include
retail giant Hagar, the marine
energy management and
research company Marorka,
clothing manufacturer 66°North
and airlines Air Iceland and
Icelandair. In 2011, the city built
The Harpa concert hall and
conference center, making it
more attractive in the meeting
planning industry.
ykj
Fishy businessHigh Liner Foods expands in Newport News and abroad after acquiring Icelandic Seafood
by Joan Tupponce
T he fish in an Arby’s fish sandwich may be harvested from interna-
tional waters, but the breaded filet is made at the High Liner Foods plant in Newport News. “It’s the company’s most well-known product that comes out of that plant,” says Keith Decker, the company president and chief operating officer. High Liner also makes fish filets for McDonald’s, Burger King and Wendy’s, as well as bee-battered cod for Sam’s Club.
Founded in 1899, High Liner Foods Inc. is based in a small fishing community in Lunenburg, Nova Scotia. “It started as a fishing company producing salt fish,” says Decker.
High Liner went on to become one of the two largest fishing companies in Canada. “When the fisheries were shut down in eastern Canada in the early 1990s, High Liner went into the world market and created a name for itself as an importer and marketer of fish products,” Decker says.
In December 2011, the company acquired the U.S. subsidiary of Icelandic Seafood in Newport News for about $230 million. Icelandic was one of the largest suppliers of
value-added seafood to the U.S. food service market, so the deal raised High Liner’s profile as a player in the industry.
Icelandic is one of four U.S. companies that High Liner has acquired in the past seven years. “Our sales have grown dramati-
cally,” Decker says. “Today we are the largest producer of fro-zen value-added seafood — bat-tered, glazed and sauced — for retail chains and food service.”
The Newport News facil-ity opened in 1997 and dealt primarily with food service accounts such as schools and chain restaurants in the U.S. “They were a very good com-petitor of ours,” Decker says. “It was a logical acquisition to add that portfolio into ours. From our perspective it was a great facility, probably the new-est manufacturing plant in the U.S. for seafood.”
High Liner liked the fact that Newport News had a large workforce to draw from as well as access to port facilities. “It is also ideally located for truck-ing logistics across the U.S.,” Decker says.
The company has about 420 employees in Newport News and 1,500 company-wide. The 250,000-square-foot Newport News plant, one of five company plants in North America, produces about 65 million pounds of seafood. High Liner is investing $6.6 million to modernize and expand the facility with new equipment and systems to increase production. Work is underway on the expansion, and the company has started hiring for 57 new positions.
“Our vision is to be the leading supplier of frozen sea-food in North America, and this expansion of our Newport News operation puts us a step closer to that goal,” Decker says, noting that all of the company’s sales are focused on North America.
High Liner processes more than 20 species of fish from
“Today we are the largest producer of frozen value-added seafood — battered, glazed and sauced — for retail chains and food service,” says Keith Decker.
Global
President: Keith Decker
Industry: food production
Website: highlinerfoods.com
Decker
www.VirginiaBusiness.com VIRGINIA BUSINESS 13
more than 30 countries around the world, from tilapia and salmon to cod and shrimp. “We bring raw fish material through the Port of Norfolk and also by truck,” Decker says.
The company sells to every major supermarket, res-taurant and food service chain as well as club stores in North America. Its brands include Fisher Boy and Sea Cuisine as well as High Liner. “We have the leading market share in the food service sector, but we are not a leader on the retail side,” Decker says. “There are two or three companies more domi-nant on that side.”
High Liner gets seafood from around the world. Alaska is a source of salmon as is Rus-sia, which also provides cod, haddock and pollock. Shrimp comes from Southeast Asia and Central America. “We also get product out of China
and Scandinavian countries, such as Norway and Iceland,” Decker says.
The business has its chal-lenges. Salmon runs, for exam-ple, may occur only eight weeks during the salmon season. “We have to take seasonal fishery and produce a product that is the same size, quality and price and deliver it 52 weeks a year to chain restaurants or super-markets,” Decker says.
Because of the seasonality of salmon runs, High Liner has to make an educated guess as to how much salmon it will need for the year. “We are buy-ing and committing to a year’s worth of inventory upfront,” Decker says. “It could be as much as 50 million pounds of product.”
By the end of this year, the company will purchase all its seafood from certified sustain-able or responsible fisheries
and aquaculture farms. Because of its Icelandic
acquisition, High Liner has strong purchasing ties with Reykjavik, Iceland, buying cod and haddock from local fisheries. “We import a lot of products from them,” Decker says. “They produce fantastic quality products that are well respected in the U.S. food ser-vice market.”
When he meets with businessmen in Reykjavik, Decker finds them to be more conservative than American businessmen. “They are more reserved,” he says. “As far as doing business with them, they are excellent businessmen. They have a lot of pride in their country. [It is] a great country to work in.”
Business meetings are similar to meetings in the U.S., he adds. “They all speak excellent English.”
Economy in Newport News
Known for its shipbuilding industry,
Newport News also is home to a
fast growing technology sector.
Other industries include health-
care services, manufacturing
and wholesale distribution. Large
employers include Huntington
Ingalls Industries Inc. (the parent
company of Newport News
Shipbuilding), Riverside Health
System, Ferguson Enterprises/
Wolseley North America, the
Department of Defense and Canon
Virginia Inc. Canon is investing
$27 million to expand its operation
in the city. The city also has
several proposed developments
in the works, including the $250
million Tech Center development
tha t includes commercial and
research enterprises as well as
residential housing. The center
is a partnership between the city
and construction company W.M.
Jordan, developer S.J. Collins
Enterprises, Jefferson Lab and
the Virginia Tech Foundation. Also
underway is a $48.2 million, 22-
acre mixed-use project in the city’s
Southeast Community. Brooks
Crossing is being designed as
a project that will help renovate
this part of the city and so far has
attracted a new police precinct and
a 30,000-square-foot commercial
building. Construction is scheduled
to begin this spring.
Local
Photo courtesy High Liner Foods Inc.
14 DECEMBER 2013
For the Record A former tobacco pro-cessing center and seed warehouse in Danville
is one of several buildings in Dan-ville’s River District being turned into chic living spaces.
The 40,000-square-foot Smith Seeds building has been turned into 20 one- and two-bedroom apartments, featuring stainless steel appliances, a fitness center and exposed brick and wood. There are also plans for three commercial spaces for the ground floor of the four-story building.
“They are larger than you typically get in an apartment,” says Richard Peterson, principal at Richmond-based Cornerstone Archit ects PLC, who worked on the project. “There’s a lot of space, both ceiling height and space in the floor plan.”
Danville is in the third year of its River District Development Project, which aims to revitalize the city’s downtown and drive economic development. Dan-ville’s economy has suffered in recent years because of the loss of large industries such as tobacco and textiles.
According to Danville’s Office of Economic Develop-ment, the River District has seen $78 million in private investment during the past five years. The district includes Danville’s central business and tobacco warehouse districts and manufacturing area.
Winchester-based Stone-ridge Development and Roa-noke-based Brian Wishneff & Associates are also working on redevelopment projects in The River District. The firms are rehabilitating the approximately 25,000-square-foot Wise-Hund-ley building on Main Street. The project is still in development, but the plan is to have commer-cial space on the bottom floor and 12 to 14 apartments on the upper floor, says John Willing-ham of Stoneridge Development. He hopes to have the project fin-ished by next fall.
Stoneridge Development and Brian Wishneff & Associates also are developing the former RJR building on Bridge Street. The bottom floor of the roughly 60,000-square-foot building would be used for commercial space, Willingham says. Plans for the rest of the building are still in
development. Richmond-based develop-
ers Garrett Shifflett and Ross Fickensher also continue to work on Pemberton Lofts on Bridge Street. The second phase will add 50 apartments to the proj-ect, which currently includes 62 units and two commercial spaces. Shifflett and Fickensher also plan to develop 610 Craghead St. into 40 apartments and one commer-cial space. The Craghead Street apartments will have a look simi-lar to Pemberton Lofts, which include granite countertops, stainless steel appliances and hardwood floors.
Peterson says Cornerstone Architects was drawn to Danville’s well-built, underutilized historic buildings. Other draws included a business-friendly atmosphere and institutions in the area such as Averett University and Danville Regional Medical Center.
Virginia firms aid Danville redevelopment
Danville Community College garnered six awards, including two each
of first, second and third place awards, at the 2013 National Council for Marketing and Public Relations District II Medallion
Awards competition held at Hilton Head Island, S.C. The annual awards were
presented for outstanding achievement in marketing communications and honor the work of community college market-
ing and public relations professionals in the region. District II is made up of
community and technical colleges in 11 states. (WorkItSoVa.com)
Gov.-elect Terry McAuliffe said at an event in Norfolk that he would veto any legislation to facilitate uranium mining in
Virginia. Mining interests have been trying for years to get a 31-year-old morato-
rium lifted so the ore can be mined from a rich uranium deposit in Pittsylvania
County. The issue also has resonance in Hampton Roads, which draws drinking water from Lake Gaston, downstream
from the uranium site. (The Virginian-Pilot)
The Mid-Atlantic Broadband Communities Corp., a wholesale
open-access network transport provider, completed a $20 million capital project
to connect more than 120 K-12 schools in Southern Virginia. The completion of
this project ensures that every school in Southern Virginia now has access to an advanced fiber optic network, achieving the mission of delivering robust, scalable
band-width that can meet their needs now or 20 years from now.
(WorkItSoVa.com)
Pittsylvania County is applying for a $700,000 grant from the Virginia
Department of Housing and Com-munity Development to install utilities for a prospective industry that would bring more than 100 jobs to the Dan
River Region. Dubbed “Project Tire,” the endeavor would involve a tire-and-rubber recycling company with plans to construct a 40,000-45,000-square-foot
building on a 20-acre site in Cane Creek Centre Industrial Park. (Danville Register
& Bee)
The Southern Virginia Higher Edu-cation Center in South Boston has
been awarded an $85,000 Rural Health Network Development Planning grant
from the U.S. Department of Health and Human Services’ Health Resources and Services Administration. The grant will
be used to coordinate efforts of regional health-care providers as they consider
community health-care needs and what this means for health-care-worker roles
moving forward. (WorkItSoVa.com)
Photo courtesy Cornerstone Architects PLC
Travis Buchanan resigned
as project manager for
the R&D Center for
Advanced Manufacturing &
Energy Efficiency in South
Boston. Buchanan took a
position with C.R. Onsrud
in Troutman, N.C., that
will allow him to spend
more time with his family.
A national search to fill his
position will be starting soon.
(WorkItSoVa.com)
Linda Lawrence Dalton, co-owner of Lawrence Distributing Co. in Danville, elected to serve as Virginia’s representative on the board of directors for the National Beer Wholesalers Association. (WorkItSoVa.com)
Michelle Gaydica named senior vice president, retail banking, American National Bank and Trust Co., Danville. She was director of secondary market mortgage at First Community Bank in
Winston-Salem, N.C. (News release)
Robert Lankford, of Red Oak, named director of operations, Mecklenburg Electric Cooperative (MEC), Chase City. He has led MEC’s underground and apparatus department for more than 20 years. (WorkItSoVa.com)
David Lipscomb, of South Hill, named vice president of member and energy services, MEC, Chase City.
The new position merges responsibilities from his previous title as MEC’s vice president of district services. (WorkItSoVa.com)
Jeff Liverman, the executive director of the Danville Science Center, will be retiring toward the end of this year. He will begin a new position as the executive director of the Jacksonville Center for the Arts in Floyd. (GoDanRiver.com)
RegionalView
People
ON THE WEB: Complete list of For the Record and People at www.VirginiaBusiness.com
by Veronica Garabelli
Southern Virginia
The former Smith Seeds building in Danville has
been turned into 20 one- and
two-bedroom apartments.
www.VirginiaBusiness.com VIRGINIA BUSINESS 15
Vonya Alleyne, named market vice president for Cox Com-munications’ Roanoke
operations. Alleyne was vice president, human resources for Cox Virginia. (News release)
Jon Bartlett, named mar-ket president of LewisGale Regional Health System and CEO of LewisGale Medical
Center in Salem. He was president of Abrazo Health
Care in Phoenix. (The Roa-noke Times)
Joseph M. Dill, named vice president of professional services and dental director, Delta Dental of Virginia, Roanoke. Dill was dental director-Western region and director-provider contracting for Delta Dental of Califor-nia. (News release)
Charles Downs, former president of Virginia Western Community College in
Roanoke, appointed to The National Society of Col-legiate Scholars Community College Advisory Board. (The Roanoke Times)
Willie T. Greene Sr., reappointed to the state Board of Social Services. Greene is a self-employed safety consultant and vice mayor of Galax. (News release)
Chris Pyle, promoted to vice president, marketing and government relations, Delta Dental of Virginia, Roanoke.
He was director of market-ing and community relations. (VirginiaBusiness.com)
Robert P. Stephens, associate professor of history at Virginia Tech, named associ-
ate dean for undergraduate academic affairs in the university’s College of Liberal Arts and Human Sciences. (News release)
RegionalView
Roanoke-based Advance Auto Parts Inc. plans to buy auto parts retailer Gen-eral Parts International Inc. (GPI) for $2.04 billion, setting the company up to become the largest auto parts retailer in North America. Raleigh-based GPI is a private distributor and supplier of equipment and aftermarket replacement products for commercial markets, operating under the Carquest and Worldpac brands. The transaction, which is subject to regulatory approval and customary closing condi-tions, is expected to close in late 2013 or early 2014. (VirginiaBusiness.com)
Bristol-based coal producer Alpha Natural Resources plans to eliminate about 230 positions throughout the com-pany in the wake of continued fi nancial losses. Company offi cials have developed a plan to reduce operating and support expenses by at least $200 million in 2014 and beyond. Most of the positions being cut are salaried and about 100 are already vacant and won’t be fi lled. (Bristol Herald Courier)
A study found that the Abingdon-based Barter Theatre has an economic impact of $34 million on its local economy. The report, completed in September, said the nonprofit theater supports 485 jobs. The Barter Theatre has an annual operat-ing budget of more than $6 million. The impact study was prepared by Stephen Powell, CEO of Destination Services LLC; Berkeley Young, president of Young Strategies; and Steve Morse, director of the Hospitality & Tourism Program at the College of Business, Western Carolina University. (VirginiaBusiness.com)
Gov. Bob McDonnell announced two Vir-ginia Enterprise Zone (VEZ) designations in Southwest Virginia: Scott County, and a joint zone including the city of Radford and Pulaski County. Each locality will use state and local enterprise zone incentives to create jobs, promote private investment and support the overall growth of the local economy. The program has supported more than $1 billion in investment and the creation of more than 40,000 jobs since 1995. (News release)
A New Jersey couple plan to upgrade Smith Mountain Lake Airport in Bedford County after buying the facility from Joseph Borgess. Two married avia-tion buffs who reside at a New Jersey air park paid about $1 million for the nearly 50-acre airport property, said Mark Dalton of Dalton & Co. Realtors in Lynchburg. Dalton declined to identify the couple and said they will own the airport through a limited liability company. (The Roanoke Times)
For the Record
People
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Southwest Virginia
Imagine a world where online videos and pages loaded way faster … 100 times faster than
the average Internet speed, to be exact. Thanks to a new gigabit Internet network that has come to Southwest Virginia, that’s now a possibility for people in downtown Blacksburg.
TechPad, which provides office space for companies in downtown Blacksburg, spear-headed the effort to bring free, public Wi-Fi to the area. Tech-Pad’s founder, Bob Summers, says he started the project after spending three months in Chat-tanooga, Tenn., where gigabit Internet is available to all busi-nesses and residents.
TechPad raised $92, 400 in three months using a “crowd-sourcing” site, Crowdtilt.com. “I was overwhelmingly surprised how many people contributed,” Summers says. “It was really incredible.”
The money will sustain the project for 18 months, and Tech-Pad is close to making the project sustainable for at least three years, Summers says. Part of that fund-ing will come from a $300,000 grant Fitnet (Summers’ telefit-ness application company) and Virginia Tech received to explore the use of fitness applications on advanced networks. Further funding for the free Wi-Fi in
downtown Blacksburg will come from research dollars and com-panies buying access to the ultra-fast Internet, Summers says.
“Imagine a dozen startups that are building gigabit-type applications,” Summers says. “Those companies will pay to have premium-level business access to this network and that will subsidize the public Wi-Fi.”
The gigabit network cur-rently is available at Kent Square, a mixed-use development in Blacksburg, and TechPad. Wire-less access to the network is available to about 40 percent of downtown Blacksburg. “As time goes by, we’ll be deploying more and more,” Summers says. Several thousand devices have accessed the network since it went live in September, he says.
The network has allowed Dave Perks and Andy Horner
to run their new advertising agency, Horner & Perks, from Blacksburg and Lynchburg. The network, for example, allows Perks, based at TechPad in Blacksburg, and Horner, located in Lynchburg, to share large design files with each other within seconds. “It’s basically like having a conversation with each other when we’re trading files back and forth,” Perks says.
The new technology is a far cry from when Perks was attending Virginia Tech in the 1990s when Blacksburg was known as the most wired town in America. Back then, Perk recalls, a file that started down-loading at night would finish downloading in the morning. “At the time, it was amazing,” Perks says. “Fast forward 18 years, and now we’re at this. It’s absolutely incredible.”
Free gigabit Wi-Fi comes to downtown Blacksburgby Veronica Garabelli
Photo courtesy King Crow Media / Kingcrowmedia.com
Bob Summers is the founder of TechPad in
Blacksburg.
16 DECEMBER 2013
For the RecordAmherst Family Practice and
Winchester Medical Consultants have created Integrated Physician Services.Although each practice retains its indepen-
dence, location and patients, the organization is working on some added benefits for its
patients, such as a system allowing patients to pay their bills online and download docu-ments before arriving for a medical appoint-
ment. (Northern Virginia Daily)
Winchester-based Angle Valley Press, an independent publisher of books on the Civil
War, has announced that it has partnered with Savas Beatie. Savas Beatie, which is a
military and general history publishing com-pany, has agreed to distribute titles by Angle Valley Press into non-book trade accounts
within the U.S. and Canada. (Northern Virginia Daily)
Washington, D.C.-based DBT-DATAcompleted the purchase of its fifth data
center, the 13-acre Cyber Integration Center in Harrisonburg. DBT-DATA is a
real estate investment and development firm that designs, constructs, owns and operates technology-related real estate properties. It has four data center properties in Ashburn,
an area through which 60 percent of the nation’s Internet traffic travels on a daily
basis. (VirginiaBusiness.com)
After reaching the halfway mark in Sep-tember, construction on the Dominion
Virginia Power plant in Warren County is steadily chugging along toward powering
325,000 Northern and Central Virginia homes with electricity in the fourth quarter
of 2014. The 1,329 megawatt natural gas-fired power plant, located three miles north
of Front Royal, is being constructed by a joint venture consisting of Zachry Industrial and Burns & McDonnell, and will be owned and operated by Dominion Virginia Power.
(Northern Virginia Daily)
The Market Collective opened Oct. 4 in Luray and was scheduled to operate for three months. The market, created by the
Luray Downtown Initiative (LDI), offers fresh produce and organic meats alongside locally
made arts and crafts. LDI originated The Collective as a means to occupy vacant Main
Street properties and revitalize downtown by attracting visitors during the busy autumn and holiday seasons. (Page News and Courier)
Harrisonburg-based RMH Healthcare is changing its name to reflect its ties with
Sentara Healthcare, a Norfolk-based health system. The new name, Sentara RMH
Medical Center, will take effect on Jan. 1. The change conforms to Sentara’s naming
structure. RMH merged with Sentara in May 2011. As part of its merger agreement, the RMH board agreed to transition the hospi-tal’s name over time. (VirginiaBusiness.com)
The following people were re-elected to the Virginia Manufacturers Association board of directors: Jack Abato, vice president, Cadence/Specialty Blades Inc., Staunton; Dilton “Dee” Gibbs, plant manager, Kraft Foods, Winchester; David Gum, president, National Fruit Product Co., Winchester; and Randy Smith, vice president, McKee Foods Corp., Stuarts Draft. (News release)
Caitlin Clark, named trade manager for the Valley and Northwest regions for Virginia
Economic Development Partnership - International Trade. She was a research manager for the Virginia Leaders in Export Trade (VALET) Program. (News release)
Kevin Fauber, named town
manager, Mount Jackson. Fauber has worked in local government for many years, including 24 years as the town manager of Strasburg and two years as Elkton’s town manager. (The Shenandoah Valley-Herald)
Catherine C. Galvin returned as executive director of Shenandoah Area Agency on Aging (SAAA) in Front Royal. Galvin served in that role from 1992 to 2002 and
was most recently director of program development for the Harrisonburg Community Health Center. (ShenValleyNow.com)
David Hoyt, named senior vice president, strategic accounts executive, at Bridgewater-based Dynamic Aviation. Hoyt was Dynamic Aviation’s vice president for business development, director of sales and marketing, and marketing manager. (VirginiaBusiness.com)
RegionalView
People
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Shenandoah Valley
ororh RR cocohhhhh RRRRRRReRReRRee rrrcecccecccccReReRe ddddtt oooococcoococccoooRRRRRR dddddRRRRRRRRRRRececeeeceeRRRRRRRRRRRRhhehhhehhhhhthththeee drddrdrdddddddddddddrddrdrrdrdddhehheehhehheeththhththhhthhhhhhheee Ree dddddd In research and develop-ment, spinoff companies are more like slow-cooked
barbecue than fast food. “These things take a
long time,” says Robin Sul-lenberger, the retired Shenan-doah Valley Partnership CEO who helped bring the non-profit R&D company SRI International to Harrisonburg seven years ago.
“That’s one of the thin gs that a lot of people don’t understand about the spinoff,” Sullenberger says. “That world is complicated. It involves a lot of legal issues. It involves investment issues and various things and, of course, the prod-ucts that are going out in the marketplace have to be firmly believed in terms of the ability to commercialize them.”
Good things, however, come to those who wait. SRI Shenandoah Valley now has begun to sprout companies. The subsidiary of California-based SRI has launched two spinoffs in 2013, and a third company, focused on cancer diagnostics, is in the works.
“So, think about once a year, from your annual physi-cal, being able to tell whether you need to worry about cancer coming back or cancer starting in the first place,” says Walter Moos, vice president
of SRI Biosciences, in describ-ing the new company.
The first SRI spinoff occurred in March with the creation of Redcoat Solutions, a company that’s developing bed-bug detection products. The second spinoff, RioGin, is working on a technology to increase the half-life and reduce the side-effects of cer-tain drugs, such as those used to treat cancer and diabetes.
Spinoffs aren’t the only news at SRI Shenandoah Valley. The firm recently completed a 40,000-square-foot expansion at its Center for Advanced Drug Research (CADRE) in Harrisonburg. The $2.8 million project includes more than 2,500 square feet of laboratory and storage space.
“It has been a fantastic
time,” says Krishna Kodukula, head of SRI Shenandoah Val-ley, who moved from Califor-nia to start CADRE in 2006. “We have worked on very important problems that will benefit the world when we find the solutions to them, and we are continuing to do that. We are finding new therapies, new diagnostics and new vaccines that will help a lot of people around the world.”
Besides biosciences, SRI International’s research divisions include education, engineer-ing and products and services. The nonprofit’s claims to fame include inventing the computer mouse and Siri, the first virtual personal assistant, which is used in iPhones. SRI spun off Siri Inc. in 2007 and sold it to Apple Inc. in 2010.
SRI Shenandoah Valley plans third spinoff
Photo courtesy SRI International
by Veronica Garabelli
SRI Shenandoah Valley recently completed an expansion of its
Harrisonburg facility.
www.VirginiaBusiness.com VIRGINIA BUSINESS 17
Accounting firm Dixon Hughes Good-man (DHG) created two positions for its Hampton
Roads offices. Caron Crouse will lead the
Norfolk and Virginia Beach offices as office managing part-ner. Joel Flax will serve as
the Virginia real estate leader. (VirginiaBusiness.com)
Retired U.S. Navy SEAL Dave M. Cooper, named the president of the Virginia Beach-based Navy SEAL Foundation. Cooper is one of only 12 SEALs to hold the position of command master chief at Naval Special War-fare Development Group. (VirginiaBusiness.com)
Robert W. Manly, Smith-field Foods’ CFO, has been promoted to executive vice president and chief synergy
officer. (VirginiaBusiness.com)
John F. Reinhart will become exec-utive director and CEO of the Virginia Port Authority
beginning in February. He is currently CEO of Norfolk-based Maersk Line Ltd. (VirginiaBusiness.com)
John L. Skeans, named vice president and chief financial officer at Chesapeake Regional Medical Center.
Skeans was executive vice president and chief financial officer at St. Anthony’s Medical Center in St. Louis. (VirginiaBusiness.com)
Byron Woodard, named senior vice president and chief mar-keting officer, Ferguson,
Newport News. Woodard was the vice president of global marketing at McGraw Hill Financial-Platts. (News release)
RegionalView
The Breeden Co.’s Cambria at Corner-stone has won a national housing award. The 420-unit apartment community in Virginia Beach is the first-ever recipient of the “Best Lifestyle Programming” award for a multifamily community award. It is a new category in the 2013 NAHB Multifamily Pillars of the Industry Awards given by the National Association of Home Builders. The Breeden Co. is a Virginia Beach-based multifamily and residential developer. (News release)
Chelsea Business Association was formed in September to focus attention on branding and redeveloping the commercial district south of West Ghent in Norfolk. Twenty people representing 16 businesses are planning area events to promote the neighborhood. This district includes the Birch Bar, the new Smartmouth Brewing Co., Tortilla West and the New Leaf Florist, among other businesses. (TidewaterBiz.com)
Rieder Holdings, a New York real estate investment and management fi rm looking to expand its presence in Hampton Roads, has purchased the 224-unit Greenwich Village Apartments in Virginia Beach for $36.2 million, or about $162,000 per unit. The sellers were Harmony Invest-ments Inc. and Spy Rock Develop-ment. Spy Rock, based in Richmond, is a regional developer and owner of several multifamily communities in Virginia. Harmony Investments in Virginia Beach has partnered with Spy Rock to develop multifamily properties in Hampton Roads. (VirginiaBusiness.com)
Three Hampton Roads companies are among four in Virginia named to a list of the nation’s 100 best small publicly traded companies compiled by Forbes magazine. The companies are Toano-based Lumber Liquidators, Norfolk-based Portfolio Recovery Associates, Sterling-based Neustar and Hampton-based Measure-ment Specialties. Lumber Liquidators was ranked 17th, and Portfolio Recovery Associates was No. 18. Neustar is 57th on the Forbes list. Measurement Specialties ranked No. 76. (VirginiaBusiness.com)
Gov. Bob McDonnell says a $2.1 billion tun-nel project in Hampton Roads will proceed in light of a Virginia Supreme Court ruling that allows tolls to pay for the work. In May, a lower court judge ruled unconsti-tutional an agreement between the state and a private company to use tolls to pay to expand the Midtown Tunnel between Norfolk and Portsmouth, refurbish the Downtown Tunnel between the two cit-ies, and extend a connecting expressway between the tunnels. (Richmond Times-Dispatch)
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Eastern Virginia
Heathsville-based Hickory Ground Solutions LLC is helping Southern Vir-
ginia and East Tennessee create manufacturing jobs, using les-sons learned in war-torn places like Iraq and Afghanistan.
The American Indian-owned consulting firm also is working with Central Okla-homa’s oil industry leaders to find ways to resume normal production more quickly after a natural disaster.
On all three contracts, Hickory Ground Solutions is teaming with another consult-ing firm, Supply Chain Visions LLC, which has operations in Arlington County and the Bos-ton area. The projects are part of the Small Business Adminis-tration’s Investing in Manufac-turing Communities Partner-ship, which aims to promote a resurgence in manufacturing jobs in economically hard-hit regions.
Hickory Ground Solu-tions and Supply Chain Visions formed a joint venture, SEE Alliance, in May. The firms use expertise that their leaders, — Bart Morrison of Hickory Ground Solutions and Steve Geary of Supply Chain Visions — gained in countries whose economies had been disrupted by conflict.
As a Department of Defense employee, for example, Morrison worked to re-establish a functioning business commu-nity in Iraq.
Geary, meanwhile, helped create Defense supply chains in Iraq and Afghanistan, “Our understanding of supply chain requirements provides the SBA with a team that can under-stand competing requirements and identify alignment oppor-tunities,” he says.
Under a $167,242 federal contract, the team will work with the Southside Virginia Planning District Commission to devise a plan for Mecklen-burg, Brunswick and Halifax counties. “That area used to be a regional powerhouse in textiles, but with the passing of NAFTA in 2000, it no longer is,” Morrison says.
The team will analyze the area, looking for opportunities to attract new manufactur-ers. Another goal is to increase small-business participation in manufacturing and the supply chain.
For East Tennessee, the problem is similar, except that, instead of textiles, the disrupted industry is coal mining. Once the area’s industrial king, coal has been knocked off the throne because of tougher federal regulations and increased U.S. production of natural gas. The SBA contract for that project is $167,969.
The companies will iden-tify area businesses that can help create manufacturing jobs and use local companies as sup-pliers. “Many times business-people overlook nearby areas and don’t know who has what to offer,” Morrison says.
In Central Oklahoma, the goal of a $188,561 contract is figuring how to decrease pro-duction downtime in the oil industry after a natural disaster. “This area gets hit with a lot of tornadoes. It can be devastat-ing,” Morrison says.
A May tornado in Moore, Okla., near Oklahoma City, had peak winds estimated at 210 mph, killing 23 people and injuring 377 others.
Heathsville firm helping to revive manufacturing jobsby Susan Smigielski Acker
Graphic courtesy Hickory Ground Solutions
18 DECEMBER 2013
For the RecordCvent, an expanding event manage-ment solutions company, is shifting its
headquarters to a bigger space in Fairfax County. The move means the county will
retain 451 local jobs and gain another 400 during the next three years. Cvent, which
has operated in Virginia since 1999, will move into SAIC’s former headquarters
building in Tysons Corner. Cvent’s current headquarters is in the same area, on
Greensboro Drive in McLean. (VirginiaBusiness.com)
Three medical facilities in King George County closed: the Gateway Medical
Urgent Care center, King George Pediatrics and King George Medical
Center. The facilities were owned by Dantra Healthcare Inc., which announced
in October it was filing for Chapter 11 bankruptcy in order to restructure finan-
cially and develop a repayment plan for its creditors. (Fredericksburg Free Lance-Star)
Fairfax-based George Mason Univer-sity will be home to a teaching center
starting next summer. The Virginia Center for Excellence in Teaching will admit
100 teachers per year and guide them on topics such as instruction, education
policy and leadership. Teachers must hold a five-year renewable Virginia license, be
employed by a Virginia school division, have a minimum of five years of suc-
cessful teaching experience and have a consistent record of effective instruction
and demonstrated leadership ability. (VirginiaBusiness.com)
Inova Health Care Services, a not-for-profit health-care system in Northern
Virginia, has purchased an 8.7-acre tract of land and plans to build a Healthplex
facility in Dulles. It will offer 24-hour health care, including physician offices and diagnostic imaging. The company that sold
the land, Akridge and Soave Enterprises, said that the Healthplex will be an integral
part of a larger mixed-use development, planned around multimodal transit
opportunities that future adjacent Metro-rail stations will create. The purchase price
was not disclosed. (VirginiaBusiness.com)
Loudoun County has emerged as one of the biggest data center hubs in the
country. Riding the tremendous growth in cloud computing, the area around Ashburn now rivals Silicon Valley, the
New York suburbs and the Dallas area in data storage prowess. There are more than 9 million square feet of data centers
in Northern Virginia, including 5 million square feet in Loudoun County. Another
3 million square feet are planned or being developed in Loudoun. (The Washington Post)
Brad Boland, named presi-
dent for 2014 of the Virginia
Association of Realtors.
Boland is a managing broker
and owner at Keller Williams
in Dulles. (VirginiaBusiness.com)
The Fredericksburg Main
Street Initiative selected the
following people to its board
of directors: Sue Bridi, Andi
Gabler, Wilson Greenlaw
Jr., Dolores “D.D.” Lecky,
Dave Minckler, Scarlett
Pons and Jeff Scott. (Freder-icksburg Free Lance-Star)
Maureen Del Duca, named vice president and deputy general counsel, litigation and investigations, Northrop Grumman, Falls Church. Del Duca was senior vice president and deputy general counsel, litigation, and chief ethics and compliance officer at AOL. (VirginiaBusi-ness.com)
Glen Bolger and Julie Dime of Alexandria, named
to the Mount Vernon Board of Visitors. Bolger is a survey researcher for Public Opinion Strategies, and Dime is a partner at Principle Advan-tage Ltd. (News release)
Jason Frankl, appointed to board of directors, Santeon, Reston. Frankl will serve as independent director and chairman of the compensa-tion committee. He is a senior managing director in FTI Consulting’s forensic and litigation consulting segment. (News release)
S. Gulu Gambhir, named chief technology officer at Reston-based Leidos. Gamb-hir was acting corporate chief technology officer and CTO of the company’s national security sector. He will retain his sector-level responsibilities. (VirginiaBusiness.com)
Charles Harrington, chairman and CEO of Pasadena, Calif.-based Parsons Corp., appointed to the board of directors of Arlington-based AES Corp. (VirginiaBusiness.com)
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Northern Virginiaaaaaaaaaniniaaaaaininiaiaaaaiii aaaiiiigg iaiaiaiiiiiiiaaaaaaaaaaaaaaaaaaaaaaaaggg nnnngigiiggg A
Northern Virginia-based business is helping auto repair
shops plug into hybrid electric vehicles.
“There’s a huge discon-nect in training and infor-mation available on how to diagnose and maintain hybrid vehicles. Dealers are not teach-ing it,” says Matt Curry, CEO of The Hybrid Shop and the former owner of Sterling-based Curry’s Auto Service.
Curry now is focused on developing franchises for The Hybrid Shop after sell-ing Curry’s Auto Service to Rochester, N.Y.-based Monro Muffler Brake Inc. in August. Terms of the deal were not disclosed, but total annual sales for Curry’s Auto Service’s 10 locations were about $18 million.
“The main reason why The Hybrid Shop was born was to put people in business to be able to maintain and repair everything in a hybrid vehicle,” Curry says.
One of The Hybrid Shop’s signature services is its battery pack conditioning, which the company says can restore a hybrid vehicle’s bat-tery up to 95 percent of its original performance. Cus-tomers save money because they don’t have to replace their cars’ batteries, which can cost
$4,000 to $4,500 each. Restoring the battery
also is more environmentally friendly than getting a new one, Curry says. The condi-tioning process can improve a vehicle’s gas mileage up to 35 percent and restore a car’s performance, horsepower and torque, he explains.
“There’s no company out there that is operating the training and equipment that allows people to diagnose the car and condition the battery like we do,” Curry says.
Businesses pay $60,000 each for a Hybrid Shop fran-chise and receive training, tools, marketing materials, a website and blog, Curry
says. Franchisees also pay The Hybrid Shop a flat fee of $125 every time they use its Battery Discharge Unit.
The Hybrid Shop cur-rently has 10 locations in the U.S., two of which are in Vir-ginia. Curry says The Hybrid Shop expects to add three more stores in the Washing-ton, D.C. , area by next March through a deal with Monro.
According to Automotive Research and Design LLC — a Hybrid Shop partner—slightly more than 2.7 million hybrid vehicles were registered in the U.S. as of June 30. Vir-ginia is home to more than 100,000 registered hybrid vehicles.
Auto service aims to update mechanic’s toolbox
Photo courtesy The Hybrid Shop
by Veronica Garabelli
The Hybrid Shop currently has
10 locations in the U.S., two
of which are in Virginia.
www.VirginiaBusiness.com VIRGINIA BUSINESS 19
Danny TK Avula and Josie Webster of Richmond, named to the state Board of Social Services. Avula is a physician and deputy director at Richmond City Health Dis-trict. Webster is vice president of the Virginia Council for Pri-vate Education. (News release) Andreas Dressler will serve as director of State of Virginia, Europe, for the Richmond-based Virginia Economic Development Partnership. Dressler is managing director
of Terrain Consulting in Berlin. (News release)
L. Michael Gracik Jr. will become the new managing partner of the Richmond accounting
firm Keiter on Jan. 1. He will succeed retiring managing partner Lewis O. Hall, who has served in the role for 15 years. Gracik joined Keiter as a partner and head of its tax department in 1991. (Virginia-Business.com)
Julie H. Gustavsson, named chief operating officer, Keiter, Richmond. Gus-tavsson joined Keiter in 2005 and served in IT leadership
positions before becoming the firm’s COO. (News release)
Javaid Siddiqi named Vir-ginia’s secretary of education. Siddiqi was deputy secretary of education. In addition, Bryan Rhode was named Virginia’s secretary of public safety. He was deputy secre-
tary of public safety. (News release)
Two professors from Virginia Commonwealth University in Richmond will travel abroad next spring on Fulbright grants. Jeff South, an associate professor in the School of Mass Communications, will teach at Northeast Normal University in Changchun, China, and Shawn Utsey, professor of counseling psychology in the Department of Psychology, will travel to South Africa to conduct an oral history project. (News release)
RegionalView
Altria Group Inc. is giving the Science Museum of Virginia $1 million to expand its after-school learning program aimed at middle school students. The gift from the Henrico County-based company will help the museum advance its statewide outreach strategy to engage students in hands-on science, technology, engineering and mathematics (STEM) learning. (Rich-mond Times-Dispatch)
The cable television network AMC is filming a Colonial-era spy series in Richmond that’s expected to have an economic impact of $45 million per season. The show, tentatively titled “Turn,” is based on the nonfiction book “Wash-ington’s Spies: The Story of America’s First Spy Ring” by Alexander Rose. The story is centered on a band of young soldiers and civilians who were part of a spy ring that assisted George Washington and helped America to win the Revolutionary War. The show will premiere on AMC in 2014. (VirginiaBusiness.com)
Henrico County-based technology con-sulting firm CapTech opened a delivery center at its local office that could result in the company adding up to 100 jobs over 18 months. CapTech has about 430 employees now, including about 280 in Richmond. Sandy Williamson, the com-pany’s chief executive officer, said it plans to hire at least an additional 50 people this year and continue growing next year. Williamson said the company expects to add jobs mainly in technical fields such as engineering, data analysis and project management. (Richmond Times-Dispatch)
MeadWestvaco, a Richmond-based packaging giant, has signed a deal to sell all of its timberland — 501,000 acres in Alabama, Georgia, South Carolina, Virginia and West Virginia — for $934 million in cash and financing. About 125,000 acres are in Virginia. Plum Creek Timber Co. Inc., a timber real estate investment trust based in Seattle, will buy the forestland and associated wind and mineral assets. (Richmond Times-Dispatch)
Richmond-based leaf tobacco company Universal Corp. is expanding in Africa. The largest of the projects is in Mozam-bique, where the company will expand tobacco production and processing capabilities. The cost of the project is expected to run between $40 million and $45 million during the next two years. A new processing line is scheduled to begin operation next September. Other African projects involve efficiency improvements and equipment enhance-ments at facilities in Tanzania and Malawi. (VirginiaBusiness.com)
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Central Virginiaaa
Jonnie Williams Sr., the executive whose gifts and loans to Virginia’s
first family sparked a federal investigation of Gov. Bob McDonnell, plans to step down as head of Glen Allen-based Star Scientific Inc.
At the end of December, Williams will resign as CEO of the company he founded as a discount cigarette maker in 1990. The move is part of an overhaul designed to focus the company on the development of pharmaceuticals, according to Securities and Exchange Commission filings. Williams will stay on for one year as a nonexecutive employee.
Williams became a cen-tral figure in a Justice Depart-ment probe of McDonnell after Williams showered the governor’s family with more than $160,000 in loans and gifts. Star has said it does not expect to be prosecuted in that investigation or a sepa-rate probe into the company’s securities transactions.
The company’s shakeup, recommended by the cur-rent senior management and board of directors, would include new top executives, a virtually new board, a name change and the potential shift of some research and administrative responsibilities
to Sarasota, Fla., where the new CEO resides. Company shareholders will vote on proposals authorizing many of the changes at its annual meeting on Dec. 27 in Wash-ington, D.C.
The new CEO would be Dr. Michael J. Mullan, the CEO and president of The Roskamp Institute in Sara-sota. The organization has conducted research on the anti-inflammatory effects of anatabine, an alkaloid found in trace amounts in tobacco and other plants. A synthetic version of anatabine is used in Star’s Anatabloc dietary supplement, its primary prod-uct. An affiliate of Roskamp receives a 5 percent royalty on Anatabloc sales, $342,000 during the first nine months of 2013, according to the SEC filings.
The filings said the changes were needed to take
advantage of opportunities in the pharmaceutical industry, including the development of new products approved by the Food and Drug Administration.
Star, which has been losing money for more than a decade, would change its name to Rock Creek Pharma-ceuticals Inc., the name of a Massachusetts-based Star sub-sidiary that makes its dietary supplement and cosmetic products.
Williams will continue to be paid $1 a month, the com-pensation he set for himself this year. He previously was paid a base salary of $1 mil-lion a year.
Also stepping down is longtime Star president and COO Paul L. Perito. Like Williams, he will stay for one year as vice president and senior counsel, legal and regu-latory affairs.
He would be replaced by Dr. Christopher C. Chapman, a member of the board of direc-tors and the only one being re-nominated to the six-person board at the annual meeting. Chapman is chairman and CEO of Chapman Pharma-ceutical Consulting Inc. and chairman of the Chapman Pharmaceutical Health Foun-dation.
Williams to step down at Star Scientific
AP file photo
by Robert Powell
Jonnie Williams Sr.
20 DECEMBER 2013
2013 Virginia Business Person of the Year
2013 Virginia Business Person of the Year
Tonya MalloryTonya MalloryChief executive offi cer
Health Diagnostic Laboratory, Richmond
www.VirginiaBusiness.com VIRGINIA BUSINESS 21Photo by Clement Britt
he day Tonya Mallory closed onthe capital for Health DiagnosticLaboratory Inc., she bouncedan $11 check for a T-shirt order to
one of her sons’ schools. “We were down to zero. I was actually going to apply at Wal-Mart the very next weekend. That’s how close to nothing we had,” recalls HDL’s CEO. “I was going to stock at Wal-Mart on [midnight shifts] so I could keep trying to get the company going during the day.”
She and her husband of 23 years, Scott, already had spent much of their savings caring for his late mother during a termi-
nal illness. So there wasn’t a reserve to dip into for her business. “We essentially bet the farm,” Mallory says. “We agreed that we would cash out our 401(k) accounts, the kids’ college accounts, and we second-mortgaged the house.”
Mallory estimates that she pitched her vision of a new type of medical laboratory corporation to about 500 investors for about a year before landing a $4 million angel investment from Tipton Golias, the founder and president of Texas-based Helena Laboratories.
“Driven” is how most people describe Mallory. It’s a pretty apt characterization of the Virginia Business 2013 Business Person of the Year. While in college and graduate school, Mal-lory worked full time and volunteered 12 hours every Sunday for her local rescue squad.
Her drive, a vision to create a new model for treating chronic disease and the impressive ramp-up of her Richmond-
based company — which spurred one of the biggest expan-sions ever in the city’s biotech park — were all reasons why the magazine’s editors selected Mallory as its sixth annual winner.
HDL co-founder Joe McConnell, the director of cardio-vascular laboratory medicine at the Mayo Clinic before joining HDL, describes Mallory “as one of the most amazing people that you’ll meet. I don’t think she ever sleeps or if she does, she sleeps very little … At the same time, she cares about people, but she doesn’t let people get in her way when she wants to do things. She’s got a vision and a plan. HDL wouldn’t be where it is today without Tonya.”
Mallory, 48, founded HDL in the summer of 2009. Since then, it has grown from a kitchen-table business plan to a corporation earning more than $420 million in annual revenue, employing 750 people, processing 4,000 lab samples and running more than 60,000 lab tests each day. HDL has driven nearconstant construction at its home in downtown Richmond’s Virginia BioTechnology Research Park, where a $68.5 million expansion soon will triple the company’s foot-print to 280,000 square feet.
Last year Mallory received the Ernst & Young National Entrepreneur of the Year award in the Emerging Company category. One of the country’s most prestigious business awards for entrepreneurs, it recognizes leaders who demon-strate innovation, financial success and personal commitment as they build their businesses.
HDL is the largest cardiovascular and diabetes testing lab of its type in the world. It hit its five-year goal in its first 10 months of business. The company hires a person a day on average; in some months it adds as many as 50 workers.
Mallory wants to revolutionize the practice of medicine in the U.S.
by Richard Foster
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Photo credit
2013 Virginia Business Person of the Year
Partnerships are fueling some of the growth. HDL is the official health and wellness partner of the Washington Redskins. Under the arrangement, HDL provides health testing and consulting services for the Redskins organization and works with the team to promote diabetes awareness. The sponsorship also grants HDL some branding promotion at the Redskins’ home stadium in Lando-ver, Md., and its new training camp in Richmond.
HDL also is known for its corporate largesse. It gave $2.2 million to the Sci-ence Museum of Virginia (the largest corporate gift in the museum’s history) and donated $4 million to the athletics department at Virginia Commonwealth University, Mallory’s alma mater. A huge fan of VCU Rams basketball, Mallory keeps a photo of herself with men’s coach Shaka Smart in her office.
HDL’s primary revenue stream comes from a panel of comprehensive lab tests that allow early detection of cardiovascu-lar disease, diabetes, metabolic syndrome and fatty liver disease. In October, HDL acquired the assets of a British company that produces a blood test for early detec-tion of lung cancer.
“Tonya is an absolute visionary,”
says Dr. Shaiv Kapadia, a cardiologist who is chief of staff at Bon Secours St. Francis Hospital. HDL’s stoplight-coded tests are easy to review for patients and physicians. And compared with HDL’s tests, he says, “conventional cholesterol testing probably misses almost half of the folks who are at risk for cardiovascular disease.”
Mallory, however, considers HDL a
health management company, not just a laboratory. HDL offers patients free health coaching services, including smoking cessa-tion, dietary and behavioral change, in an effort to improve patient health and prevent heart attacks and diabetes. Kapadia calls the health coach program “genius” and says that — combined with HDL’s testing — it has been “a very powerful” tool for reducing cardiac events in his cardiology practice.
HDL also has begun offering its early detection and health coaching services as a paid service to private companies so cor-porations can improve employees’ health and keep insurance costs down. So far, HDL’s clients include Markel Corp. and Bon Secours Richmond Health System in addition to a pilot program with the state government.
Tests are confidential and not shared with the employer, says HDL Market-ing Program Manager Jeff Kelley. The employer sees aggregate data about employee health “in order to implement initiatives to move employees, on the whole, from red to green. Test results are used to help lower overall claims/health-care costs and provide a tool for employ-ees to help them manage their health.”
An independent study published in September in the health-care journal Population Health Management found that HDL’s testing and coaching reduced patients’ health-care costs by an average 23 percent over a two-year period and also improved patients’ lipid profiles.
Partnerships, including one with
the Washington Redskins, are
helping to boost growth.
HDL’s main source of revenue comes from its laboratory tests.
22 DECEMBER 2013
www.VirginiaBusiness.com VIRGINIA BUSINESS 23
2013 Virginia Business Person of the Year
Photos courtesy Health Diagnostic Laboratory Inc.
“HDL is a game changer,” says Dr. Sam Fillingane, a Mississippi physician who specializes in cardiovascular risk reduction. Previously, the kind of testing that HDL offers wasn’t covered by insur-ance and only wealthy patients could afford the out-of-pocket expenses, he adds. (HDL’s business model is predicated on accepting whatever insurance compa-nies will pay for tests; patients pay only co-pays or deductibles.) Plus, physicians would have to send tests to multiple labs because no one lab offered all the special-ized tests that could be done by HDL.
HDL’s array of tests gives physicians ample warnings to conduct behavioral and drug interventions that could virtu-ally eliminate heart disease and Type 2 diabetes, says Fillingane, who has worked as an educational consultant for HDL. Insurance companies and health-care corporations are skeptical about spending money for prevention up front, he notes, but the tests cost far less, for example, than heart bypass surgery, which can run more than $100,000.
An average primary-care practice might have dozens of patients with car-diac events each year, but through using advanced biomarker testing and health coaching, “it is very rare for a heart attack to occur in my patient population, which is high risk,” he says. His patients rou-tinely see a regression of arterial plaque buildup.
“Some people think that this approach is too expensive,” says Fillingane, “but I say it’s too expensive not to take this approach. I personally think if we beat cardiovascular disease in the United States it’s going to be through efforts like that of Health Diagnostic Laboratory.”
Jeffrey Gallagher, executive director of the Virginia Biotechnology Associa-tion, says Mallory is an inspiration to oth-ers in the industry. Biotech entrepreneurs in Virginia routinely talk about wanting to be “the next Tonya,” he says. “She’s been a terrific champion of research and commercialization of innovation and entrepreneurship. … She’s just been an inspiration to us all. … This is a very dif-ficult way of life, to do the research that might not have any friction for years or to start companies or products that are going to have a 10- to 15-year path to get to the marketplace, and I can’t underscore strongly enough how … [HDL’s success]
fuels them and keeps people going.”Robert Skunda, CEO of Richmond’s
biotech park and a former state secretary of commerce and trade, calls the compa-ny’s growth “astounding.” He has received “quizzical” questions about it from busi-ness leaders who wonder how long HDL can sustain such rapid growth. He thinks HDL’s growth will level off eventually, but that HDL is a “bona fide, homegrown success.”
McConnell, HDL’s co-founder, says Mallory “has a philosophy that’s some-times scary to me: That is, leap and the net will appear. It’s going to be down there. You’ve got to take that leap and it will appear. Sometimes I worry, but there’s always been a net. We’ve always managed to build that net … and if we have to build the net while we’re falling, that’s good, too, because it happened. It’s really been an exciting time, and Tonya pushes the envelope all the way.”
Her early years Tonya Mallory grew up in the rural
Doswell area of Hanover County and graduated from Patrick Henry High
School. Her father was a welder for Philip Morris; her mother worked as an accoun-tant clerk for Bear Island Paper Co. At age 13, she doctored a job permit from her pediatrician to say that she was 18 years old so she could work in the restaurant kitchen at the Kings Quarters, a hotel connected to Kings Dominion theme park. By the time she was actually 18, she was managing the restaurant.
She attended Virginia Common-wealth University, paying her way through school by working full time at restaurants. On Sundays, she volunteered 6 a.m. to 6 p.m. for her local rescue squad. She received her undergraduate degree in biology and chemistry in 1988 and went on to earn a master’s degree in forensic sci-ence a year and a half later.
“I was going to graduate school from noon until 10 p.m. and working from 10 p.m. to 8 a.m. at what is now LabCorp but was then Hoffmann-La Roche Labo-ratories. I was sleeping about 8 hours a week,” she recalls, laughing. “Believe it or not, I graduated with a 3.9 average or something like that.”
Mallory had wanted to pursue a career
Congratulations to the 2013National Philanthropy Day HonoreesMacon and Joan BrockOutstanding Philanthropists
Eastern Virginia Medical School Outstanding Non-Profi t in Fundraising
Betty Harmon Edwards Outstanding Volunteer Fundraiser
Ferguson Enterprises Outstanding Corporate Philanthropist
KID2KID at St. Mary’s Home Outstanding Youth in Philanthropy
Landmark Foundation Outstanding Foundation
Catherine “Kitty” Schaum Outstanding Fundraising Professional
24 DECEMBER 2013
2013 Virginia Business Person of the Year
Photo courtesy Health Diagnostic Laboratory Inc.
in medicine but was concerned that the managed-care environment would make it difficult for her to pay back school loans. So she decided to become a DNA finger-print examiner for the state forensics lab. (She’s a fan of best-selling mystery novelist Patricia Cornwell, who was working at the state medical examiner’s office when Mal-lory was taking classes at the forensic lab in graduate school: “She was working at the lab … I was a student; I was a nobody but [I would see her] in the halls.”)
Due to budget cuts at the time, the forensics lab wasn’t a good prospect, so Mallory took what she thought would be a temporary position at Richmond-based Wako Chemicals USA, a Japanese manu-facturer that produced chemicals and reagents used in laboratory testing. She wound up working there for more than 17 years.
Put in charge of Wako’s chemical diagnostic division, Mallory says she built its annual revenues from about $4,800 to $21 million. “I figured out what the market needed,” she explains, and cre-ated marketing materials, pursued FDA approvals and allowed larger companies
to rebrand and resell Wako’s chemicals.“In a Japanese company, it’s very
common for everyone to wear many hats. Mallory says. “If you take those 17 years of experience, it’s probably equivalent in an American company to 40 or 50 years.”
Then conversant in Japanese, Mal-lory was accustomed to company manag-ers in Japan telling her that goals she set
and changes she proposed were impos-sible. “Of course I loved that, and I had to prove them wrong.”
The department had been in the red for more than 10 years before Mallory took it over, says Hiroshi Shima, her for-mer boss at Wako.
“What she did was to set goals, moti-vate her staff members toward them and take aggressive actions to increase sales,” he recalls. “She has unsurpassed physical and mental toughness as well as a strong will with which she carries out whatever she is required to do. Moreover, she has ample and broad knowledge about the industry and has outstanding ability to absorb new knowledge. Yet she is always kind to whoever is in need of help.”
For example, Shima says, “One of our employees had chemotherapy after her breast cancer surgery and showed up to work wearing a cap. Next day, all women in the office started wearing a cap. That turned out to be Tonya’s idea.”
After Shima was transferred back to Japan in 2004, the company’s new, more traditional Japanese leadership told Mallory flatly that because she was
Tonya with her sister, Lisa Dyson,
(left) who is diabetic and suffered two heart attacks.
www.VirginiaBusiness.com VIRGINIA BUSINESS 25
2013 Virginia Business Person of the Year a woman and below age 50, she would not advance farther in the company, she says. When her mother-in-law was dying, the company denied her requests to work at home. Mallory instead took vacation leave to care for her mother-in-law, who died 11 days later. The incident influences Mallory’s attitudes toward her employees at HDL, who have flexible schedules, no time clocks and generous leave.
Less than a year later, G. Russell Warnick — another HDL co-founding partner who was then vice president of laboratory operations and chief scientific officer at San Francisco-based Berkeley HeartLab — recruited Mallory to build a second Berkeley lab in Richmond. From 2005 to 2008 Mallory commuted back and forth from Richmond to San Fran-cisco, but when Berkeley was suddenly acquired by Celera Corp., the Richmond lab project was killed. Mallory and War-nick both left, unhappy with the con-servative management of Celera, which Warnick says discouraged innovation and entrepreneurial attitudes.
At that point, Mallory began writing the business plan for HDL.
Down-to-earth and quick to laugh, Mallory is an iconoclast who is likely to show up at business meetings wearing jeans and Birkenstock sandals. She’s a “Bazinga” T-shirt-owning, “Big Bang Theory” fan who has a toy figure of über-geek Dr. Sheldon Cooper perched above her office computer monitor.
An open book, she volunteers that she loves Stella Artois beer and likes fishing in the pond behind her family’s Goochland County home. Besides being a busy execu-tive, she’s the mother of two sons, Jace, 15, a student at Richmond’s Benedictine College Preparatory school, and Adam, 20, a VCU exercise science major who works at HDL as a personal trainer in the employee gym.
Mallory also is creative outside her business innovations: She enjoys painting abstract portraits, and several of them dec-orate the walls at HDL. “When my stress goes up, the paintings start multiplying,” she says.
Asked whether she would ever con-sider taking the company public, Mallory says she’ll never say never, but she doesn’t see it happening anytime soon because HDL hasn’t reached its goal. That goal is nothing short of revolutionizing the way American medicine is practiced.
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2013 Virginia Business Person of the YearWhen Mallory’s mother-in-law
became ill with leukemia, it took a year before a doctor did a test that revealed that she had a fatal kidney disease. “I went back to her primary-care physician and asked, ‘How come you didn’t have her pee in a cup the day she walked in the doc-tor’s office?’ and he said because insurance wouldn’t cover it. So I spent a year of my time chasing an answer that he could have had had he made a good clinical decision … regardless of what the insurance paid for or didn’t pay for.”
Mallory encountered a similar prob-
lem in late 2009 when her older sister, a Type 1 diabetic, had her second undi-agnosed heart attack in two weeks and passed out. In the emergency room, the doctor was ready to release her because her cardiac markers looked fine. But Mallory realized they had tested the heart muscle and didn’t look for a blockage. She threat-ened to report the doctor to the hospital administration if she didn’t refer her sister to a cardiologist for a stress test. It turned out that Mallory’s sister had 95 percent blockage in two arteries; four days later she underwent double bypass surgery.
“It was the lack of understanding of the disease and the disease process,” Mal-lory says. “There’s no doubt in my mind that had she not gone down to that stress lab that she would have died.”
Mallory attributes HDL’s success to a “perfect storm” of conflating factors: Sedentary lifestyles and poor diets have led to an obesity epidemic, which in turn has led to high rates of Type 2 diabetes and cardiovascular disease. Plus, some patients feel like they don’t get enough time with their primary doctors to discuss medical problems. HDL’s easy-to-under-stand, comprehensive tests “empower the patient and the physician,” she says.
Still, Mallory acknowledges she’s a long way from reaching her ultimate goal. Depending on the source, there are an estimated 208,000 to 352,000 primary care physicians in the United States. About 18,000 of those physicians use HDL’s tests and only 15,000 have received advanced training on reading the tests.
“It’s really important for physicians to be armed with information and to make clinical decisions that they believe in. So a lot of our business model is built on that,” Mallory says. “If you look at the real value of lab tests, they’re 3 to 5 per-cent of the cost to the health-care system, but they control 70 percent of the deci-sions. It doesn’t matter what lab test you do. Do them all — they’re so cheap — and make very good clinical decisions.”
Of all the perks that have come with being the CEO of a fast-growing, respected corporation, Mallory says the most valuable to her is having a say. “I didn’t have a voice before,” she says. “And no one’s ever told me I’m short on words.”
She’s used that voice to help direct the biotech park and to innovate at VCU, offering direction to VCU’s School of Business and pumping up the university’s clinical chemistry program. She’s used it to support local and national nonprofits fighting obesity and promoting health prevention.
More importantly, she wants the entire medical community to hear her.
“I started HDL in order to impact medicine,” Mallory says. “I definitely understood that medicine had gotten to a place in the United States where it was quite reactionary, and we want to be a catalyst to change that.”
“At FCCI, we keep our customers informed. I get to know agents and policyholders and they get to know me, so they know who to call for help. They know I’ll give them great service!”
Katrina Turner Senior Underwriting Technician FCCI Southeast Region Duluth, Georgia
Now, let’s talk about your business.
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Coverage available in 17 states. © 2013 FCCI
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atumsandrem ipit lorperat. Duipit vel ip enibh eui blamcommod te tis aliquate magna conse tatem enim diamet praestrud dolesto odolessi.uis et, quisim doloreet am nibh exeros nulputpatet, quametue eriure volestrud tatem et vel dolortio odolobore dolorem quam vercidunt prat. Ugait, sim diam niate modLa feuis ad esecte facip el duis aciliquamet dolortisit iustrud eu feum alisl diamcortie min velis aute feu feum ero conse velis adiat dunt lam velit volut duis estrud minci blam quamcon heniat, con volum vulput la feugait venibh euisl ipit in henit wis aliquisi.Volorem dunt veliqui pissequis dipit lobore faccum amcon vel utpat.
tatue magnisl ero odo odolort ionsecte minibh enibh et laor iriustrud minisi tissit nonsequis augait aliquat ionsenibh eliquat vel ut iustissi tatumsandrem ipit lorperat. Duipit vel ip enibh eui blamcommod te tis aliquate magna conse tatem enim diamet praestrud dolesto odolessi.uis et, quisim doloreet am nibh exeros nulputpatet, quametue eriure volestrud tatem et vel dolortio odolobore dolorem quam vercidunt prat. Ugait, sim diam niate modLa feuis ad esecte facip el duis aciliquamet dolortisit iustrud eu feum alisl diamcortie min velis aute feu feum ero conse velis adiat dunt lam velit volut duis estrud minci blam quamcon heniat, con volum vulput la feugait venibh euisl ipit in henit wis aliquisi.Volorem dunt velionse tatem enim diamet praestrud dolesto odolessi.l duis aciliquamet dolortisit iustrud eu feum alisl diam-cortie min velis aute feu feum ero conse velis adiat dunt lam velit volut duis estrud minci blam quamcon heniat, con volum vulput la feugait venibh euisl ipit in henit wis aliquisi.Volorem dunt velionse tatem enim diamet praestrud dolesto odolessi.
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Volorem dunt veliqui pissequis dipit lobore faccum amcon vel utpat.San hendrem do od tatue magnisl ero odo odolort ionsecte minibh enibh et laor iriustrud minisi tissit nonsequis augait aliquat ionsenibh eliquat vel ut iustissi tatumsandrem ipit lorperat. Duipit vel ip enibh eui blamcommod te tis aliquate magna conse taea ad te et vullum venisit, si.Vullam dolore enismodit dionum vel ute consed dit enissis ea feugiatem quamet lore duiscipit vep eugue conulla feugiam vercillaore facil ing essit veriliquatem venis digna consed tat.Il ut ate magnisiscip ea am ipsum ipit vel ipit numsan hendrem iriliquat vel ulputat ipit augue dolorpe raestrud exeratem er ad minismolenim alis nos nim dionullam quis nos nullum delesed ming ex ero dunt irit wis nonullum e
t vullum venisit, si.Vullam dolore enismodit dionum vel ute consed dit enissis ea feugiatem quamet lore duiscipit vep eugue conulla feugiam vercillaore facil ing essit veriliquatem venis digna consed tat.Il ut ate magnisiscip ea am ipsum ipit vel ipit numsan hendrem iriliquat vel ulputat ipit augue dolorpe
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28 DECEMBER 2013 Photo by Mark Rhodes
A t 34, Curtis Dixon Colgate is a multimillionaire. Yet his new-found riches came at a high per-
sonal cost. “It’s still bittersweet,” he says of a legal settlement that granted him $25 million. “It’s eight years that’s sun-dered my family.”
Colgate’s long battle against The Disthene Group Inc., a Dillwyn-based holding company that owns the largest kyanite mine in the world, came to an end in August when both sides signed off on a $77 million agreement.
The litigation pitted Colgate’s fam-ily members, who owned 42 percent of the company’s Class B, nonvoting shares, against their relatives: Gene Dixon Jr., Disthene’s president and chairman of the board (and Colgate’s uncle); and his son, Guy B. Dixon, president of the Kyanite Mining Corp. (Colgate’s cousin). The company’s top executives, they own all
the Class A voting shares and, together with relatives and partnerships, more than 45 percent of the nonvoting shares.
The high-stakes fight focused on the rights of minority shareholders. Lawyers from LeClairRyan, who represented Colgate’s family, hail the settlement as a “landmark” victory.
“The plight of the minority share-holders is that they’re basically captive investors,” says attorney John H. Crad-dock Jr. “There’s no market for their stock. They’ve got no way to get out of their investment. They have no vote in what’s going on. When you’re in a posi-tion like that, it’s very easy to take advan-tage of the shareholder, and that’s what they did.”
Yet some businesspeople say the outcome makes Virginia less friendly to companies. After all, a circuit judge rec-ommended Disthene’s dissolution — the
death penalty for any business. In his first public comment on the
case, Guy Dixon told Virginia Business in an email, “If a business like ours can be dissolved by the court … companies will clearly have to consider whether the decisions they make could be ret-roactively construed as oppressive, even though they are made in the company’s best interests and even though hindsight clearly demonstrates that the company benefitted from those decisions. That’s an incredibly disruptive and chilling thought ...”
The narrative behind the Disthene case sounds like something out of a legal thriller: There was a deathbed promise, accusations of greed and half-truths and the possibility of a court-ordered dis-solution of a profitable, $200 million company owned by the family for four generations.
Business Trends: Business Law
Family feud Is Th e Disthene Group settlement a cautionary tale for closely held companies?
by Paula C. Squires
As a child, Curtis Colgate played with his cousins on the lawn of the Cavalier Hotel, which was sold as part of a legal settlement that awarded him $25 million.
www.VirginiaBusiness.com VIRGINIA BUSINESS 29
Business Law
Photo by Mark Rhodes
Besides the Kya-nite Mining Corp., Disthene owned 28,000 acres of land and the historic Cav-alier Hotel in Virginia Beach. As part of the settlement, the Cava-lier was sold in July for $35.7 million. The proceeds helped
Disthene buy out minority shareholders’ stock. The rest of the money, says Guy Dixon, came from internal savings, the liq-uidation of other company assets and loans against the mine and real estate holdings.
The largest payouts went to Curtis and his 49-year-old half-sister, Sharon Marie Newcomb, who also received $25 million. Curtis’ father, Marion J. “Boyd” Colgate Sr., held custodial shares and says he received a smaller amount, which he gave to his children. There were a few other shareholders who were paid a total of $7 million. The remainder of the settle-ment — nearly $20 million — went to LeClairRyan for legal fees.
The settlement allows the Dixons to keep their land and retain control over the lucrative Kyanite Mining Corp. Kyanite is a heat-resistant element used in everything from spark plugs to space shuttle tiles. The mine is Buckingham County’s largest private employer with about 130 workers.
Guy Dixon says the company and his family are “relieved” to have the suit behind them. “For while settling in this manner and under these terms is not the outcome we feel was justified, nor the path that we would have freely chosen, we do feel that it was in everybody’s best interests given the circuit court’s decision.”
Judge Roush’s opinion Dixon was referring to a blistering,
41-page opinion by Fairfax Circuit Court Judge Jane Marum Roush, which pre-ceded the settlement. Her ruling on Aug. 30, 2012, followed a trial in Buckingham on allegations in a lawsuit initially filed by Curtis, Sharon and Boyd in 2010. They said the Dixons engaged in a pattern of “oppressive and fraudulent conduct,” such as slashing the price of dividends, to retali-ate against them for filing an earlier suit in 2005. That litigation, settled in 2007, alleged improprieties in Gene’s handling of a family trust that included shares of
stock intended for Curtis and Sharon. The Buckingham trial, which lasted
14 days, included more than 30 wit-nesses and 1,420 exhibits. After it was over, Roush ruled in favor of the plaintiffs’
request to dissolve Disthene. Although a drastic remedy, the judge said the move was merited because of “longstanding and ongo-ing oppression of minority shareholders as well as waste and misapplication of corpo-rate assets.”
Roush concluded that Gene and Guy Dixon “were motivated not by the best interests of the corporation but by their personal best interests.” She ruled further that their actions were not protected by Virginia’s business judgment rule. While it shields directors from personal liability for decisions made on behalf of a corpora-tion, the doctrine did not apply, she said, “because Disthene’s board of directors did not act as a board and make informed deci-sions. To the extent it had any involvement in the decisions, the board merely bent to Gene’s ironhanded will and rubberstamped his decisions.”
The judge cited several examples of evi-dence of misuse of corporate assets. There was cash compensation of $1.2 million for Gene and $560,800 for Guy in 2011, amounts not set by Disthene’s board, that
she found “excessive” when compared with the compensation of other mining execu-tives. Roush also noted the use of a corporate beach house owned by the Cavalier Hotel for no rent or a nominal fee, use of the com-pany’s plane for personal trips, meals at the Cavalier for a fraction of their costs and the preparation of personal tax returns of Dixon family members by Disthene accountants — with those costs sometimes charged to the company.
The court also challenged the payment of $6.5 million by Disthene in premiums for life insurance policies owned by trusts established for the benefit of Gene’s children and grandchildren, calling the payments a “waste of corporate assets.”
Roush agreed with the plaintiffs that slashing dividends, without a vote by the company’s board, was retaliatory behav-ior. “The plaintiffs have not been treated
The LeClairRyan legal team of Michele Burke, John Craddock, center, and Thomas Wolf says the settlement is a victory for the rights of minority shareholders.
Guy Dixon
30 DECEMBER 2013
Business Law
Photo by Mark Rhodes
fairly by Disthene and its management,” Roush wrote in her opinion. “They have instead been treated as irksome interlop-ers, problems to be dealt with, preferably by squeezing them out at a below-market price, or slashing their dividends in the
hope of depriving them of the financial wherewithal to seek legal recourse.”
At trial, the Dixons denied that divi-dends were cut to hurt minority share-holders. Court filings showed that Dis-thene had paid more than $36 million in
dividends since Gene Dixon, 70, became president in 1974, including more than $6 million paid to the plaintiffs since 1988. Since 2000, Disthene said it paid more than $8 million in dividends, or 70 percent of its profits.
“No one likes to see their business decisions retroactively twisted and con-torted to prop up what can be described as a conspiracy theory,” says Guy Dixon. “And it was difficult for me to read the circuit court’s opinion, which did not address any of the facts showing that there was never any intent to oppress anybody. For example, there was no mention of the fact that our decision to temporarily reduce dividends in favor of increased capital investment led directly to the record-breaking profitability of the last few years.”
After the lower court’s ruling, the Disthene Group turned to the state Supreme Court, seeking a stay on the order to dissolve. In an appellant brief, the company’s legal team from Troutman Sanders argued, “the trial court abused its power and committed clear error in dissolving a corporation that has oper-ated successfully for more than 70 years to the great benefit of its shareholders.”
The Virginia Supreme Court ini-tially rejected the petition. In April of this year, it accepted the appeal after a request for a rehearing. After the two sides signed off on the settlement in August, however, the court dismissed the appeal and vacated the dissolution in conjunction with Disthene’s buyout of the minority shareholders.
Now that the legal dust has settled, observers are weighing in on the signifi-cance of the case. Michele K. Burke, a lead attorney who worked with the Col-gate family on both lawsuits, says the decision represents one of the few clari-fications of the business judgment rule. “It has national implications,” Burke said in a statement, “because the principles that minority shareholders have enforce-able rights and that they must be treated fairly are generally applicable anywhere in the U.S.”
Burke told Virginia Business that minority shareholders rarely sue because of the financial burden. “They have to risk all their money. They had a huge disadvantage in both cases,” she says.
Boyd Colgate says the lawsuit cost
Tim Tharpe, vice president and manager for J.R. Tharpe Trucking Co. in Burkeville, worries that the settlement will set a bad legal precedent for family-
owned businesses.
Marion “Boyd” Colgate, 87, said the two sides tried to settle three or four times before coming to an agreement.
www.VirginiaBusiness.com VIRGINIA BUSINESS 31
Business Law
Photo by Mark Rhodes
the plaintiffs several million dollars before LeClairRyan agreed to continue the case on a contingency basis. “We heavily leveraged our homes and all our properties,” he says. Those costs were paid back, he adds, with the settlement money.
While Roush’s lower court ruling didn’t make any new law, the LeClair-Ryan team says the case sends a clear message. “This is a huge wake-up call to closely held businesses,” says Thomas M. Wolf, the attorney who managed the case for LeClairRyan. “Because there are so few reported cases of courts dissolving companies, there is the misperception that a controlling shareholder can run the company to benefit himself … This case should cause corporate officers, directors, controlling shareholders and legal advisers to look anew at the legal duties those roles carry — duties to the corporation and to its shareholders. The consequences for failing to do so can be severe.”
Others, though, are troubled by the outcome. “The case has absolutely gen-erated discussion in the small-business community,” says Tim Tharpe, vice president and manager for J.R. Tharpe Trucking Co. Inc. in Burkeville. “I do think the extreme ruling will have a negative effect on the decision making in a small family business regarding owner-ship and growth for future generations.”
Tharpe’s company was one of 30 businesses that jointly hired an attorney and filed an amicus brief with the Vir-ginia Supreme Court during the appeal process. His family-owned company has hauled Kyanite Mining Corp.’s sand to locations throughout Virginia, and he knows the Dixons. Even without that business relationship, he says, he would have supported the brief.
Walton Moseley, president of Cape School Inc. in Buckingham, which pro-vides continuing education and licens-ing, also supported the brief. “That decision flipped Virginia from being a business-friendly state to a business less-friendly state,” he says. “It says that the decisions you’re making to run your business can be second-guessed, and you could end up in court defending those decisions. A lot of businesses like us don’t have the resources that Disthene has and having to go to court could financially cripple us.”
Roush’s opinion is a lower court deci-sion, “and it’s not binding on anybody,” notes Everett W. Gee III. He’s the general counsel for S&M Brands in Lunenburg County and the lawyer who filed the amicus brief on behalf of the small busi-nesses. “But if any plaintiff comes along, this will be the case they will be waving around.”
Litigation began in 2005 The first lawsuit filed against Dis-
thene came two days before Christmas in December 2005. The seeds of the litigation, though, were planted long before that in the fourth-floor, Cape Henry Suite of the Cavalier Hotel on the Virginia Beach oceanfront.
That’s where Curtis’ mother, Jeanne Dixon Colgate, spent her last days before dying of breast cancer at age 47 in 1988.
In an interview with Virginia Busi-ness and in court testimony, Boyd Col-gate said that, before his wife died, Jeanne told him that her younger brother, Gene, came to her room at The Cavalier and promised to protect the interests of her children: Sharon Newcomb, from her
first marriage; and Curtis Colgate, her son with Boyd. Curtis was 9 at the time of her death, and Sharon was 24.
For years, Boyd says, Gene seemed to be honoring that pledge. Then in 2005, Boyd began to ask questions about his late wife’s estate to confirm the num-ber of shares held by Curtis and Sharon. That’s when the businessman from Chase City says he learned that some 30,000 shares of Class B stock held in a family trust — created for Gene and Jeanne’s mother, Mallie, upon the death of their father and of which Gene was the trustee — had been shifted to Gene Dixon’s three children. Curtis and Sharon, who were contingent beneficiaries, filed suit, alleging manipulation of the trust.
The day before the suit was filed, Curtis called his cousin, Arch Dixon, another of Gene’s sons. Arch and his sister, Erica Dixon, were close to Curtis in age. He recalls that they used to spend summers together in Virginia Beach, playing hide and seek on the expansive lawn of The Cavalier.
“Arch, Erica and I were inseparable. We would play around all day long,”
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Carter’s Grove (circa 1750-1755), a 400-acre Virginia plantation with over a mile of frontage on the James River in southeastern James City County, is one of colonial America’s most impres-sive examples of Georgian architecture, noted for its exquisite brickwork and fi nely crafted, paneled interior. The house was built for Carter Burwell, grandson of Robert “King” Carter, the wealthiest and most infl uential fi gure in early 18th century Virginia. Named for the prominent Carter family, Carter’s Grove occupies the site of an earlier tract known as Martin’s Hundred, fi rst settled byEnglish colonists in 1619, and is a NationalHistoric Landmark.
Offered, under specifi c preservation covenants, to the public for the fi rst time since the early 1930s, the sale today presents a rare opportu-nity to acquire an American treasure. For more information, please contact Stephen T. McLean, McLean Faulconer Inc. Realtors, 434-295-1131, [email protected].
CARTER’S GROVE Carter’s Grove (circa 1750-1755), a 400-acre Virginia plantation with over a mile of frontage on the James River in southeastern James City County, is one of colonial America’s most impres-sive examples of Georgian architecture, noted for its exquisite brickwork and fi nely crafted, paneled interior. The house was built for Carter Burwell, grandson of Robert “King” Carter, the wealthiest and most infl uential fi gure in early 18th century Virginia. Named for the prominent Carter family,Carter’s Grove occupies the site of an earlier tract known as Martin’s Hundred, fi rst settledby English colonists in 1619, and is a NationalHistoric Landmark.
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he recalls. “Arch and I, we stayed close through the years. I felt I owed it to him to give him a call. I said, ‘Sharon and I have had to sue your dad over the trust.’ That’s really about the last conversation I ever had with him.”
After a court hearing in 2007, the parties settled. About 11,600 shares were transferred from Gene’s side of the fam-ily to Sharon and Curtis, according to court documents. The next quarter after the suit was filed, Boyd says, Disthene’s dividend fell from what had consistently been about $4 to $6 a share to an all-time low of 85 cents. It stayed at that rate for 13 quarters, until 2010, “and that led to the second suit,” he says.
Boyd, 87, who owns a furniture store, says he helped run the Cavalier Hotel for 10 years, leaving the property a year after his wife’s death. The hotel seems to tug at the heartstrings of Boyd and his son. After graduating from Hampden-Sydney College in 2001 with a degree in economics, Curtis says, he asked Gene if he could work at the Cavalier as a way of getting into the family business. He says Gene suggested that he “go work for
Bruce Thompson at the Hilton” (another hotel in Virginia Beach).
As it turns out, a group formed by Thompson — a local developer who built the Hilton Virginia Beach Ocean-front — bought the Cavalier. It plans a $200 million renovation of it and another former Disthene property on the oceanfront.
Looking back, Boyd had no idea the litigation would take so long. “It started out like an infant, and it just grew and grew.” He says he is comforted in know-ing that the pledge to his late wife was made good. Plus, he hopes the case will be helpful to other minority shareholders.
Boyd doesn’t feel sorry for the Dix-ons. After the June 2012 trial, he says, they had a chance to resolve the case for less than $70 million through mediation and for a better price than the $1,928 per share they ended up paying — a fig-ure nearly 10 times more than what the Dixons had offered to pay for minority shares in the past. At one point during mediation, Boyd recalls, Disthene’s offer was “zero.”
With the case behind him, Guy
Dixon doesn’t expect “direct, long-lasting negative implications for our core business in terms of our sales, or our sales relations...”
The people in Buckingham know the company and its long history, he adds. “These people — the people that really matter — are not fools, and I don’t expect them to change their perception of what kind of people we are (and what kind of company we are) based on the false allegations and accusations that were made in a lawsuit that all along was meant to force a cash out of the minority shareholders on terms they dictated.”
Meanwhile, Curtis is trying to move on, too. He recently purchased a home in Virginia Beach with some of the settlement proceeds. At seven feet three inches, he stands out in a crowd. An avid fisherman, he is a member of Virginia’s Board of Game and Inland Fisheries where he recently was elected chairman.
That’s a new challenge he relishes. Plus, he wants to rebuild some of the fam-ily relationships strained by the litigation. “I’m still drinking it all in,” he says. “It definitely reset my whole life.”
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2013 Virginia Legal Elite
Keeping tabs on the economyLegal Elite lawyers off er perspectives from their specialties
Bankruptcies are falling, multifam-ily real estate activity is in high gear, but low interest rates alone
won’t get some other construction projects moving.
Those are some of the observations made by members of the 2013 Virginia Legal Elite, a group of 868 lawyers selected by their peers as leading attor-neys in 16 categories.
Virginia Business began publishing the list in 2000 in collaboration with the Vir-ginia Bar Association. This year the maga-zine emailed electronic ballots to nearly 11,600 Virginia lawyers and provided a ballot on its website. All licensed lawyers in Virginia are eligible to vote.
More than 1,200 attorneys partici-pated in this year’s Legal Elite, submitting 3,348 nominees. Of those roughly a quar-ter made the final list.
In the following pages, the magazine
profiles a representative from each cat-egory. They are selected from the top 10 vote-getters in each group, but they are not necessarily the ones with the most votes.
Lawyers who have been pro-filed in previous years were not eligible.
Legal Elite lawyers have their fingers on the pulse of the state economy.
For example, Christopher A. Jones, a partner with Whiteford Taylor & Preston LLP in Falls Church, says bankruptcy fil-ings are falling. “Bankruptcy filings under all chapters are down from 2012, with commercial filings experiencing the largest drop,” he says. “This trend coincides with the upturn in the general economy.”
In line with that good news, Thomas J. Colucci, a principal with Walsh Colucci Lubeley Emrich & Walsh PC in Arlington, says the Virginia real estate market is show-ing signs of revival, especially in multifam-
ily residential projects. “The office market remains some-
what sluggish, and I would anticipate that may continue until there is a little more stability brought to bear on anticipated government spending,” he says.
Robert K. Cox, chair of the Construc-tion Practice Group of Williams Mullen in Tysons Corner, makes a similar point in explaining the influence of low interest rates on construction projects.
“Low interest rates are but one fac-tor in encouraging new construction and alone cannot kickstart construction spend-ing,” he notes.
Cox points out educational facilities make up one of the largest nonresidential building sectors. However, budget con-straints and limited growth in the student population “have kept this building sector down despite historically low interest rates.”
In sum, the economy’s getting better, but we aren’t back yet.
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Table of Contents Alternative Dispute ResolutionLIST ..........................................41PROFILE: Leslye S. Fenton ...............44Odin, Feldman & Pittleman PC, Reston
Appellate LawLIST ..........................................41PROFILE: Frank K. Friedman .............46Woods Rogers PLC, Roanoke
BANKRUPTCY/CREDITOR’S RIGHTSLIST ..........................................41PROFILE: Christopher A. Jones ..........48Whiteford Taylor & Preston LLPFalls Church
Business LawLIST ..........................................42PROFILE: George H. Roberts Jr. .........50Wharton Aldhizer & Weaver PLCHarrisonburg/Lexington
Civil LitigationLIST ..........................................45PROFILE: Christopher Malone ...........52ThompsonMcMullan PC, Richmond
ConstructionLIST ..........................................49PROFILE: Robert K. Cox ..................54Williams Mullen, Tysons Corner
Criminal LawLIST ..........................................51PROFILE: Patrick H. O’Donnell ..........56Kaufman & Canoles PC, Norfolk
Family Law/Domestic RelationsLIST ..........................................53PROFILE: Mary Burkey Owens ...........58Owen & Owens PLC, Midlothian
Health LawLIST ..........................................55PROFILE: Thomas W. Greeson ...........60Reed Smith LLP, Falls Church
Intellectual PropertyLIST ..........................................57PROFILE: Marshall M. Curtis ............62Whitham, Curtis, Christofferson & Cook PCReston
Labor/EmploymentLIST ..........................................59PROFILE: Lisa A. Bertini ..................64Bertini & Hammer PC, Norfolk
Legal Services/Pro BonoLIST ..........................................63PROFILE: Phyllis C. Katz ....................66Sands Anderson PC, Richmond
Legislative/Regulatory/AdministrativeLIST ..........................................65PROFILE: Dale G. Mullen ................68McGuireWoods LLP, Richmond
Real Estate/Land UseLIST ..........................................69PROFILE: Thomas J. Colucci .............70Walsh Colucci Lubeley Emrich & Walsh PCArlington
Taxes/Estates/Trusts/Elder LawLIST ..........................................71PROFILE: Neil L. Rose ....................72Willcox & Savage PC, Virginia Beach
Young LawyersLIST ..........................................75Gretchen M. Ostroff........................74Vandeventer Black LLP, Norfolk
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Congratulations to 28 of our attorneys for being named among the Virginia Business Legal Elite!
Brian R. Pitney - Business Law
John B. "Jack" Catlett, Jr. - Taxes/Estates/Trusts/Elder Law
Ann Neil Cosby - Legislative/Regulatory/Administrative
C. Thomas Ebel - Business Law
L. Lee Byrd - Civil Litigation
Phyllis C. Katz - Legal Services/Pro Bono
Terrence L. Graves - Alternative Dispute ResolutionDouglas A. Winegardner - Alternative Dispute Resolution
David W. Hearn - Civil Litigation
C. Michael DeCamps - Labor/Employment
Bradford A. King - Legislative/Regulatory/AdministrativeHenry C. Spalding, III -ConstructionBenjamin W. Emerson - Real Estate/Land UseCullen D. Seltzer - Civil LitigationKaren S. Elliott - Labor/Employment
not in photoColleen M. Gentile - Health LawMargaret F. Hardy - Legal Services/Pro BonoJ. Jonathan Schraub - Civil LitigationRoy M. Terry, Jr. - Bankruptcy/Creditors' Rights
left to rightWilliam N. Watkins - Construction
Joel M. McCray - Health Law
W. Ashley Burgess – Business Law
Stefan M. Calos - Business Law
William A. Gray - Bankruptcy/Creditors' Rights
Jeffrey H. Geiger (and Lucy*) - Intellectual Property
Robert B. "Chip" Delano, Jr. - Appellate Law
Elizabeth L. Gunn - Young Lawyer (under 40)
Bruce L. Mertens - Taxes/Estates/Trusts/Elder Law
*Lucy serves as our office mascot and attitude adjustment technician.
www.VirginiaBusiness.com VIRGINIA BUSINESS 41
2013 Virginia Legal Elite ALTERNATIVE DISPUTE RESOLUTIONThe Hon. Michael C. Allen, RET. The McCammon GroupRichmond
The Hon. Joanne F. Alper, Ret.The McCammon GroupArlington
Jeffrey F. Brooke Poole Mahoney PCVirginia Beach
Gary Wayne Brown McCandlish & Lillard PCFairfax
Jack W. (JB) Burtch Jr.Macaulay & Burtch PCRichmond
Frank N. Cowan CowanGates PCRichmond
The Hon. Dennis W. Dohnal, RET. The McCammon GroupRichmond
Kimberly Potter Fauss New Growth Ventures LLCRichmond
Leslye S. Fenton Odin, Feldman & Pittleman PCReston
The Hon. Johanna L. Fitzpatrick, Ret.The McCammon GroupRichmond
Lynn Fletcher Lynn Fletcher Attorney at Law PCFalls Church
William E. Franczek Vandeventer Black LLPNorfolk
Jeanne Frances Franklin Franklin SolutionsArlington
B. Page Gravely Hancock, Daniel, Johnson & Nagle PCGlen Allen
Terrence LeMarr Graves Sands Anderson PCRichmond
Grayson P. Hanes Reed Smith LLPFalls Church
Michael Edwin Harman Harman Claytor Corrigan & WellmanRichmond
Collin J. Hite Hirschler FleischerRichmond
Tracy Ann Houck Parrish, Houck & Snead PLCFredericksburg
Molly August Huffman Hancock, Daniel, Johnson & Nagle PCGlen Allen
Jonathan Louis Kales Kales & Kales PLCFairfax
Walter D. Kelley Jr.Jones DayWashington
Stanley Klein Blankingship & Keith PCFairfax
The Hon. Joseph Leafe The McCammon GroupRichmond
Mark Douglas Loftis Woods Rogers PLCRoanoke
Curtis G. Manchester Reed Smith LLPRichmond
A. Blanton Massey Virginia MediationFredericksburg
John B. McCammon The McCammon GroupRichmond
The Hon. John J. McGrath Jr., Ret.Juridical Solutions PLCHarrisonburg
Joan S. Morrow Joan Morrow PAWilliamsburg
John H. OBrion Jr.The McCammon GroupRichmond
Hugh L. Patterson Willcox & Savage PCNorfolk
Mark Edward Rubin The McCammon GroupRichmond
D. Alan Rudlin Hunton & WilliamsRichmond
The Hon. Thomas S. Shadrick, RET. The McCammon GroupVirginia Beach
William Henry Shewmake LeClairRyanRichmond
Richard F. Smith Smith Pachter McWhorter PLCVienna
Michael Laurence Sterling Vandeventer Black LLPNorfolk
The Hon. F. Bradford Stillman, Ret.The McCammon GroupRichmond
The Hon. Diane M. Strickland, Ret.The McCammon GroupRichmond
John B. Thompson ThompsonMcMullan PCRichmond
Guy K. Tower The McCammon GroupRichmond
Craig Elliott White Sevila, Saunders, Huddleston & White PCLeesburg
Douglas Aaron Winegardner Sands Anderson PCRichmond
Paul Marshall Yoder Wharton Aldhizer & Weaver PLCHarrisonburg
APPELLATE LAWTillman Breckenridge Reed Smith LLP LLPRichmond
Gary Alvin Bryant Willcox & Savage PCNorfolk
R. Johan Conrod Jr.Kaufman & Canoles PCNorfolk
Robert B. Delano Jr.Sands Anderson PCRichmond
Lawrence D. Diehl Barnes & Diehl PCChesterfield
Robert Arnold Dybing ThompsonMcMullan PCRichmond
L. Steven Emmert Sykes, Bourdon, Ahern & Levy PCVirginia Beach
Frank K. Friedman Woods Rogers PLCRoanoke
Earle Duncan Getchell Jr.Office of the Attorney GeneralRichmond
Jeanine Irving Sevila, Saunders, Huddleston & White PCLeesburg
Craig Thomas Merritt Christian & Barton LLPRichmond
Monica T. Monday Gentry Locke Rakes & MooreRoanoke
James Joseph O’Keeffe IVGentry Locke Rakes & MooreRoanoke
Edward James Powers Vandeventer Black LLPNorfolk
Joseph Michael Rainsbury LeClairRyanRoanoke
Stuart Alan Raphael Hunton & WilliamsMcLean
Robert K. Richardson Odin, Feldman & Pittleman PCReston
Stephen Michael Sayers Hunton & WilliamsMcLean
Andrew Philip Sherrod Hirschler FleischerRichmond
Adam White Smith McCandlish & Lillard PCFairfax
George A. Somerville Troutman Sanders LLPRichmond
John Charles Thomas Hunton & WilliamsRichmond
John Tracy Walker IVMcGuireWoods LLPRichmond
Paul Thomas Walkinshaw Hancock, Daniel, Johnson & Nagle PCFairfax
BANKRUPTCY/CREDITORS’ RIGHTSBenjamin C. Ackerly Hunton & WilliamsRichmond
Darren W. Bentley Clement & WheatleyDanville
Paula Steinhilber Beran Tavenner & Beran PLCRichmond
Paul Sebastian Bliley Jr.Williams MullenRichmond
Richard Owen Bolger Bolger Law Firm PLLCFairfax
Ann Burke Brogan Crowley, Liberatore, Ryan & Brogan PCNorfolk
Tyler Perry Brown Hunton & WilliamsRichmond
Paul K. Campsen Kaufman & Canoles PCNorfolk
William Hale Casterline Jr.Blankingship & Keith PCFairfax
Karen Marie Crowley Crowley, Liberatore, Ryan & Brogan PCNorfolk
Dale Alan Davenport Hoover Penrod PLCHarrisonburg
42 DECEMBER 2013
2013 Virginia Legal EliteCarl A. Eason Wolcott Rivers GatesVirginia Beach
Tara Leigh Elgie Hunton & WilliamsRichmond
Augustus Charles Epps Jr.Christian & Barton LLPRichmond
Douglas Michael Foley McGuireWoods LLPWashington, D.C.
William A. Gray Sands Anderson PCRichmond
David Armistead Greer Law Offices of David A. Greer PLCNorfolk
Michael E. Hastings Whiteford Taylor & Preston LLPRoanoke
Jonathan Leigh Hauser Troutman Sanders LLPVirginia Beach
Dion William Hayes McGuireWoods LLPRichmond
Hannah Hutman Hannah W. Hutman PLLCHarrisonburg
Christopher A. Jones Whiteford Taylor & Preston LLPFalls Church
David Wayne Lannetti Vandeventer Black LLPNorfolk
Stephen Everett Leach Leach Travell Britt PCMcLean
Mark Clifton Leffler Boleman Law Firm PCRichmond
Dennis T. Lewandowski Kaufman & Canoles PCNorfolk
Tariq Kamal Louka Bischoff Martingayle PCVirginia Beach
Robert M. Marino Redmon, Peyton & Braswell LLP Alexandria
Jeffrey Laurence Marks Kaufman & Canoles PCVirginia Beach
Bruce Howard Matson LeClairRyanRichmond
Richard Clifford Maxwell Woods Rogers PLCRoanoke
John D. McIntyre Wilson & McIntyre PLLCNorfolk
Jennifer McLain McLemore Christian & Barton LLPRichmond
Matthew Douglas Meadows Jones, Blechman, Woltz & Kelly PCNewport News
Stephan William Milo Wharton Aldhizer & Weaver PLCHarrisonburg
Michael David Mueller Christian & Barton LLPRichmond
Christopher L. Perkins LeClairRyanRichmond
Robert P. Quadros Quadros & Associates PCNewport News
Ross Campbell Reeves Willcox & Savage PCNorfolk
James W. Reynolds Odin, Feldman & Pittleman PCReston
Robert V. Roussos Roussos, Lassiter, Glanzer & Barnhart PLCNorfolk
David Richard Ruby ThompsonMcMullan PCRichmond
Troy Savenko Kaplan Voekler Cunningham & Frank PLCRichmond
Donald Charles Schultz Crenshaw, Ware & Martin PLCNorfolk
W. H. Schwarzschild IIIWilliams MullenRichmond
David Kohlman Spiro Hirschler FleischerRichmond
Lynn Lewis Tavenner Tavenner & Beran PLCRichmond
Roy M. Terry Jr.Sands Anderson PCRichmond
Madeline Agnes Trainor Cyron & Miller LLPAlexandria
Robert Schaefer Westermann Hirschler FleischerRichmond
Peter Gilbert Zemanian Zemanian Law GroupNorfolk
BUSINESS LAWJeffrey Robert Adams Wharton Aldhizer & Weaver PLCHarrisonburg
James Meade Anderson IIIMcGuireWoods LLPRichmond
James Edward Autry Culin, Sharp, Autry & Day PLCFairfax
Robert Brian Ball Williams MullenRichmond
Mark R. Baumgartner Pender & CowardVirginia Beach
Robert Mason Bayler Jr.Troutman Sanders LLPRichmond
William James Bethune McCandlish & Lillard PCFairfax
Gregory Roger Bishop Williams MullenRichmond
Mark Wayne Botkin BotkinRose PLCHarrisonburg
Thomas C. Brown Jr.McGuireWoods LLPTysons Corner
W. Ashley Burgess Sands Anderson PCRichmond
C. Benton Burroughs Jr.Reed Smith LLPFalls Church
Stefan Mitchell Calos Sands Anderson PCRichmond
Nicholas C. Conte Woods Rogers PLCRoanoke
Beverley L. Crump DurretteCrump PLCRichmond
Cyane B. Crump Attorney at LawRichmond
Clifford A. Cutchins IVMcGuireWoods LLPRichmond
David Lee Dallas Jr.Williams MullenCharlottesville
Harwell McCoy Darby Jr.Glenn Feldmann Darby & GoodlatteRoanoke
David M. Delpierre Kaufman & Canoles PCNorfolk
C. Thomas Ebel Sands Anderson PCRichmond
S. Brian Farmer Hirschler FleischerRichmond
Russell Allen Fink Titan America LLCNorfolk
G. Franklin Flippin Gentry Locke Rakes & MooreRoanoke
Thomas R. Frantz Williams MullenVirginia Beach
Guy R. Friddell IIILandmark Media Enterprises LLCNorfolk
C. Christopher Giragosian Hunton & WilliamsMcLean
Allen C. Goolsby IIIHunton & WilliamsRichmond
Grant Stephen Grayson LeClairRyanRichmond
Michael Cesar Guanzon Clement & WheatleyDanville
John Owen Gwathmey Troutman Sanders LLPRichmond
William Hiram Hall Jr.Hancock, Daniel, Johnson & Nagle PCGlen Allen
Bradley A. Haneberg Kaufman & Canoles PCRichmond
Stephen Todd Heitz Litten & Sipe LLPHarrisonburg
John Christian Hodges Dunton, Simmons & Dunton LLPWhite Stone
Michael Joseph Holleran Walton & Adams PCReston
Thomas Corbett Inglima Willcox & Savage PCNorfolk
Thomas G. Johnson Jr.Willcox & Savage PCNorfolk
F. Claiborne “Jay” Johnston *Troutman Sanders LLPRichmond
Samuel J. Kaufman Owen & Owens PLCMidlothian
Monroe Kelly IIIWilliams MullenVirginia Beach
* Retired
Edward Barnes
Brian Jones
Chris Macturk
Robert L. Harris, JrRoRobebertrt LLLL HHHaHarrrrisis JJJrJr
Harris Leiner
Lawrence Diehl
Michael HuYoung
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44 DECEMBER 2013 Photo by Mark Rhodes
ALTERNATIVE DISPUTE RESOLUTION
Leslye S. FentonOdin, Feldman & Pittleman PC
Reston
Title: Attorney/shareholderOther legal specialties: Commercial leasing, family lawBirthplace: New York CityEducation: Hofstra University, bachelor’s degree; Yeshiva University, master’s degree in social work; George Mason School of Law, law degree.Spouse: Jonathan MorenoChildren: Jarrett Moreno, Jillian MorenoHobbies or pastimes: Hiking, cookingFirst job as a lawyer: Odin, Feldman & Pittle-man PCFan of: College basketballFavorite vacation spot: BerkshiresRecently read book: “The Burgess Boys” by Elizabeth StroutCareer mentors: “Founders of my firm: David Feldman, Dexter Odin and Jimmy Pittleman.”
How did you become involved in alternative dispute resolution? “After college and before law school I was fortunate to work in a pilot mediation program in the court system. Working with potential delinquents in the program showed me the importance of helping people reach consen-sus. Once individuals listen to one another and try to understand the other party’s position they are usually more willing to move toward a resolution. Being heard is a powerful tool.”
What advantages does ADR offer over set-tling a dispute in court?“Whether mediation, negotiation or arbitration is used, ADR affords parties an opportunity to work together in a less adversarial atmo-sphere. Although parties do not reach their own decision if they use arbitration, each party still retains more control and flexibility than litigation. ADR is often more cost-effective, definitely less emotionally taxing than litigation and certainly faster. Whether the dispute to be resolved is commercial or personal, outcomes are generally more satisfactory as each party has had an opportunity to be heard and to more fully participate in the process.”
44 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 45
2013 Virginia Legal Elite Joseph H. Latchum Jr.Williams MullenNewport News
David A. Lawrence Odin, Feldman & Pittleman PCReston
Gary D. LeClair LeClairRyanRichmond
Andrew Mayo Lohmann Hirschler FleischerRichmond
McAlister Crutchfield Marshall IIThe Brinks Co.Richmond
James B. Massey IIIColeman & Massey PCRoanoke
Vincent J. Mastracco Jr.Kaufman & Canoles PCNorfolk
Bryant Clark McGann Vandeventer Black LLPNorfolk
Charles Vincent McPhillips Kaufman & Canoles PCNorfolk
Joseph Kevin Muldowney Hirschler FleischerRichmond
William Abner Old Jr.Dollar TreeChesapeake
David Homer Pettit Feil, Pettit & Williams PLCCharlottesville
Brian Roger Pitney Sands Anderson PCRichmond
Andrew B. Pittman Troutman Sanders LLPVirginia Beach
Albert H. Poole Poole Mahoney PCVirginia Beach
Stephen Conwell Price McCandlish & Lillard PCFairfax
Brian Christopher Purcell Willcox & Savage PCVirginia Beach
John Matthew Ramirez Troutman Sanders LLPVirginia Beach
Alfred Magill Randolph Jr.Kaufman & Canoles PCNorfolk
Jonathan Bray Reed Kaufman & Canoles PCNorfolk
George H. Roberts Jr.Wharton Aldhizer & Weaver PLCLexington
William Quinton Robinson Blankingship & Keith PCFairfax
Thomas Michael Rose Troutman Sanders LLPVirginia Beach
John M. Ryan Vandeventer Black LLPNorfolk
John M. Scheib Norfolk Southern Corp.Norfolk
Robert Edwin Sevila Sevila, Saunders, Huddleston & White PCLeesburg
Roderick William Simmons Hirschler FleischerRichmond
George P. Snead Parrish, Houck & Snead PLCFredericksburg
Eric John Sorenson Jr.Edmunds & Williams PCLynchburg
Raymond Harvey Suttle Jr.Jones, Blechman, Woltz & Kelly PCNewport News
Wilson Randolph Trice ThompsonMcMullan PCRichmond
William R. Van Buren IIIKaufman & Canoles PCNorfolk
Michael Richard Vanderpool Vanderpool, Frostick & Nishanian PCManassas
Matthew Von Schuch Wharton Aldhizer & Weaver PLCHarrisonburg
Charles Edward Wall Williams MullenRichmond
James John Wheaton Liberty Tax ServiceVirginia Beach
Cher Wynkoop Willcox & Savage PCNorfolk
CIVIL LITIGATIONThomas E. Albro Tremblay & Smith PLLCCharlottesville
Everette G. Allen Jr.LeClairRyanRichmond
David N. Anthony Troutman Sanders LLPRichmond
David L. Arnold Pender & CowardSuffolk
William E. Artz William E. Artz PCArlington
Stanley G. Barr Jr.Kaufman & Canoles PCNorfolk
Five Legal Elite, a name change, and new members of our firm top our latest news. We now count six Fellows in the American Academy of Matrimonial Lawyers, and
we were named a top tier Richmond family law firm by U.S. News and World Report.
Congratulations to Our Legal Elite
804.545.9800 www.bsbfamilylaw.com
Terrence R. BatzliFamily Law
Andrea R. StilesFamily Law
Mollie C. BartonYoung Lawyer (under 40)
Robert E. Henley IIIFamily Law
Donald K. ButlerFamily Law
46 DECEMBER 2013 Photo by Mark Rhodes
APPELLATE LAW
Frank K. FriedmanWoods Rogers PLC
Roanoke
Other legal specialties: Trial waiver topicsBirthplace: New York CityEducation: Harvard College, bachelor’s degree; Vanderbilt University School of Law, law degreeSpouse: Melissa W. Friedman Children: Nathan Windham Friedman, Sarah Paulina Friedman, Amelia Quinn FriedmanHobbies or pastimes: “I am a big sports fan, and I confess to following fantasy football and baseball — occasionally to excess. I enjoyed coaching rec league basketball, soccer and softball when our children were young. I play a little guitar, occasionally write on nonlegal sub-jects and frequently lumber on the treadmill.”First job as a lawyer: “My first job as a lawyer is the same job I have now. I have spent my entire legal career (including my summer clerk-ship!) at Woods Rogers.”Fan of: “I am a fan of football, basketball and baseball: my teams are Vanderbilt, Harvard, SEC football, and the Jets, Giants, Mets and Royals.”Favorite vacation spot: Ocean Isle, N.C.Recently read books: “City of Thieves” by David Benioff and “The Round House” by Lou-ise ErdrichCareer mentor: William B. Poff
How is appellate law different from other legal specialties? “Appeals raise unique time pressures. Appellate attorneys receive very limited time to argue their case — and while trial attorneys often have significant control over their opening statements and closing arguments, appellate lawyers spend their fleeting 15 minutes of action fielding questions and going where the court takes them. A trial attorney also usually gets a verdict in the courtroom at the end of a trial — there is no such instant gratification (or disappointment) for an appellate attorney who finishes a hard-fought argument and then receives the result miles away and months later. Appellate decisions also face the test of time — they will be reviewed, studied and distinguished by future lawyers, perhaps over many years. As an appellate lawyer, I very much appreciate the opportunity to be involved, even peripherally, in the process of shaping jurisprudence.”
46 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 47
2013 Virginia Legal Elite William D. Bayliss Williams MullenRichmond
Lee Edward Berlik BerlikLaw LLCReston
William Carl Bischoff Bischoff Martingayle PCVirginia Beach
Turner Anderson Broughton Williams MullenRichmond
Lynn Kanaga Brugh IVWilliams MullenRichmond
Elliott Matthew Buckner Cantor Stoneburner Ford Grana & Buckner PCRichmond
Allan S. Buffenstein McCandlish Holton PCRichmond
Stephen Donegan Busch McGuireWoods LLPRichmond
L. Lee Byrd Sands Anderson PCRichmond
Wells Huntington Byrnes Clement & WheatleyDanville
Francis Hewitt Casola Woods Rogers PLCRoanoke
R. Paul Childress Jr.DurretteCrump PLCRichmond
David Patrick Corrigan Harman Claytor Corrigan & WellmanRichmond
James Christopher Cosby Vandeventer Black LLPRichmond
Marc Ericson Darnell Kaufman & Canoles PCNewport News
Bradfute W. Davenport Jr.Troutman Sanders LLPRichmond
Jeremiah A. Denton Jeremiah A. Denton IIIVirginia Beach
Michael Eugene Derdeyn Feil, Pettit & Williams PLCCharlottesville
William Franklin Devine Williams MullenRichmond
Bernard Joseph DiMuro DiMuroGinsberg PCAlexandria
S. Miles Dumville Reed Smith LLPRichmond
Wyatt B. Durrette Jr.DurretteCrump PLCRichmond
John Daniel Epps Hunton & WilliamsRichmond
Hugh M. Fain IIISpotts Fain PCRichmond
Calvin Wooding Fowler Jr.Williams MullenRichmond
Angela H. France PCT Law Group PLLCAlexandria
Terry C. Frank Kaufman & Canoles PCRichmond
Randolph Douglas Frostick Vanderpool, Frostick & Nishanian PCManassas
Edward Joseph Fuhr Hunton & WilliamsRichmond
Jeffrey H. Gray Troutman Sanders LLPVirginia Beach
Jason Eliot John Ham Litten & Sipe LLPHarrisonburg
Patrick R. Hanes Williams MullenRichmond
David Wayne Hearn Sands Anderson PCRichmond
R. Braxton Hill IVChristian & Barton LLPRichmond
Charles Franklin Hilton Wharton Aldhizer & Weaver PLCHarrisonburg
John A. C. Keith Blankingship & Keith PCFairfax
Edward B. Lowry MichieHamlettCharlottesville
John C. Lynch Troutman Sanders LLPVirginia Beach
R. Peyton Mahaffey McCandlish & Lillard PCFairfax
Christopher M. Malone ThompsonMcMullan PCRichmond
Brad Marrs The Marrs Law Firm PLLCRichmond
Lawrence Joseph McClafferty McCandlish & Lillard PCFairfax
John Becker Mumford Jr.Hancock, Daniel, Johnson & Nagle PCGlen Allen
Robert Lee O’Donnell Vandeventer Black LLPNorfolk
Leaders in terms of client service and overall strategic thinking.The attorneys think like business people. They understand our goals.
This is what clients are saying. We invite you to see for yourself.
Proud to Represent Businesses Throughout Virginia
Robert L. Dewey, Managing Partner
48 DECEMBER 2013 Photo by Mark Rhodes
BANKRUPTCY/CREDITORS RIGHTS
Christopher A. JonesWhiteford Taylor & Preston LLP
Falls Chu rch
Title: PartnerOther legal specialties: LitigationBirthplace: SeattleEducation: Duke University, bachelor’s degree; University of Richmond, law degreeSpouse: Kate Children: Sarah, 11; and Abby, 9Hobbies or pastimes: Golf, family travel, readingFirst job as a lawyer: Associate at Maloney Barr & Huennekens PC (now Kutak Rock LLP) in RichmondFan of: “Duke University – I bleed Duke blue”Favorite vacation spot: ScotlandRecently read book: “John Adams” by David McCullough Career mentors: “I have had the opportunity to work with a number of excellent bankruptcy lawyers who have influenced my career, including the Hon. Kevin R. Huennekens, Bruce H. Matson, Lynn L. Tavenner and my current partners, Paul Nussbaum and Englander.”
What trends are you seeing in bankruptcies since the height of the recession?“After five straight ‘boom’ years, insolvency professionals have seen a decline in work in 2013. Bankruptcy filings under all chapters are down from 2012, with commercial filings experiencing the largest drop. This trend coincides with the upturn in the general economy.”
You have been involved in a number of high-profile corporate bankruptcy cases. Which was the most interesting or challenging case? “The most challenging case that I worked on involved a very wealthy individual who had no liquid assets. During our first week in the case, the client shot someone and was arrested. Undoubtedly, it was a unique situation. We worked for months to put together a Chapter 11 plan that paid back all creditors and returned significant assets to our client.”
48 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 49
2013 Virginia Legal Elite Mark Dudley Obenshain Lenhart Obenshain PCHarrisonburg
Kevin Philip Oddo LeClairRyanRoanoke
Scott Charles Oostdyk McGuireWoods LLPRichmond
Jennifer L. Parrish Parrish, Houck & Snead PLCFredericksburg
Jayne A. Pemberton ThompsonMcMullan PCRichmond
Cyrus E. Phillips Albo & Oblon LLPArlington
J. Bryan Plumlee Poole Mahoney PCChesapeake
William B. Porter Blankingship & Keith PCFairfax
John MacDonald Robb IIILeClairRyanRichmond
Glen M. Robertson Wolcott Rivers GatesVirginia Beach
F. Doug Ross Odin, Feldman & Pittleman PCReston
Marshall Howard Ross Wharton Aldhizer & Weaver PLCHarrisonburg
Robert Lee Samuel Jr.Williams MullenVirginia Beach
Richard Ruffin Saunders Jr.Sevila, Saunders, Huddleston & White PCLeesburg
J. Jonathan Schraub Sands Anderson PCMcLean
Cullen D. Seltzer Sands Anderson PCRichmond
J. Scott Sexton Gentry Locke Rakes & MooreRoanoke
Yama A. Shansab Ferguson Walton & Shansab PLLCReston
Win Short Kaufman & Canoles PCNewport News
Conrad M. Shumadine Willcox & Savage PCNorfolk
Thomas Brady Shuttleworth Shuttleworth, Ruloff, Swain, Haddad & Morecock PCVirginia Beach
Charles Michael Sims LeClairRyanRichmond
Hunter W. Sims Jr.Kaufman & Canoles PCNorfolk
Randy Darrell Singer Singer Legal GroupVirginia Beach
James Curie Skilling Williams & Skilling PCRichmond
Thomas G. Slater Jr.Hunton & WilliamsRichmond
Michael Willis Smith Christian & Barton LLPRichmond
Brett Alexander Spain Willcox & Savage PCNorfolk
W. Edgar Spivey Kaufman & Canoles PCNorfolk
William Lewis Stauffer Jr.Williams MullenNewport News
Mark Douglas Stiles Virginia Beach City Attorney’s OfficeVirginia Beach
Gregory Neil Stillman Hunton & WilliamsNorfolk
Richard C. Sullivan Jr.Reed Smith LLPFalls Church
Sandy T. Tucker Williams MullenRichmond
William Woodul Tunner ThompsonMcMullan PCRichmond
William R. “Rob” Turner IIIProtogyrou & Rigney PLCNorfolk
David Neil Ventker Ventker & Warman PLLCNorfolk
John Reel Walk Hirschler FleischerRichmond
Wallace Bruce Wason Jr.Jones, Blechman, Woltz & Kelly PCNewport News
Stanley Paul Wellman Harman Claytor Corrigan & WellmanRichmond
Robert Aristidis Ziogas Glenn Feldmann Darby & GoodlatteRoanoke
CONSTRUCTIONBruce Edwin Arkema DurretteCrump PLCRichmond
J. Rudy Austin Gentry Locke Rakes & MooreRoanoke
D. Stan Barnhill Woods Rogers PLCRoanoke
Brian Keith Brake Lenhart Obenshain PCHarrisonburg
Stephen Walter Brewer Willcox & Savage PCNorfolk
Kristan Boyd Burch Kaufman & Canoles PCNorfolk
William Alexander Burnett Williams MullenRichmond
Tara L. Chadbourn Poole Mahoney PCVirginia Beach
Mark Richard Colombell ThompsonMcMullan PCRichmond
Thomas Andrew Coulter LeClairRyanRichmond
Robert Knight Cox Williams MullenTysons Corner
Mark E. Feldmann Glenn Feldmann Darby & GoodlatteRoanoke
Thomas R. Folk Reed Smith LLPFalls Church
Christian B. Franklin Parrish, Houck & Snead PLCFredericksburg
John Franklin IIITaylor WalkerNorfolk
Michael John Gardner Troutman Sanders LLPNorfolk
Barry A. Hackney Hirschler FleischerRichmond
David A. Hearne Outland, Gray, O’Keefe & HubbardChesapeake
Christopher Garrett Hill The Law Office of Christopher G. Hill PCGlen Allen
Bryan William Horn FloranceGordonBrown PCRichmond
Sally Ann Hostetler Odin, Feldman & Pittleman PCReston
Timothy Raymond Hughes Bean Kinney & Korman PCArlington
Herbert Valentine Kelly Jr.Jones, Blechman, Woltz & Kelly PCNewport News
William A. Lascara Pender & CowardVirginia Beach
John Ralph Lockard Vandeventer Black LLPNorfolk
Robert H. J. Loftus McCandlish & Lillard PCFairfax
Neil S. Lowenstein Vandeventer Black LLPNorfolk
Joseph S. Luchini Reed Smith LLPFalls Church
K. Brett Marston Gentry Locke Rakes & MooreRoanoke
William R. Mauck Spotts Fain PCRichmond
R. Webb Moore Hirschler FleischerRichmond
Terence Murphy Kaufman & Canoles PCNorfolk
Edward Duffy Myrtetus Kaufman & Canoles PCRichmond
Mark Charles Nanavati Sinnott Nuckols & Logan PCMidlothian
John S. Norris Jr.Norris & St. Clair PCVirginia Beach
John R. Owen Harman Claytor Corrigan & WellmanRichmond
John S. Pachter Smith Pachter McWhorter PLCVienna
Courtney Moates Paulk Hirschler FleischerRichmond
Glenn Walthall Pulley Clement & WheatleyDanville
Jack Rephan Pender & CowardVirginia Beach
Henry Cannon Spalding IIISands Anderson PCRichmond
50 DECEMBER 2013 Photo by Mark Rhodes
BUSINESS LAW
George H. “Skip” Roberts Jr.
Wharton Aldhizer & W eaver PLCHarrisonburg/Lexington
Title: Of CounselOther legal specialties: Nonprofit organizations, estate planning, family office managementBirthplace: Fort LeeEducation: Virginia Military Institute, bachelor’s degree; University of Virginia School of Law, law degreeSpouse: Kay Temple RobertsChildren: Sarah K. Kaiser, Anne R. SmithHobbies or pastimes: Fly fishing, hiking and readingFirst job as a lawyer: Associate, Wharton Ald-hizer & WeaverFan of: TrackFavorite vacation spot: The TetonsRecently read book: Richard Atkinson’s “The Guns at Last Light”Career mentors: George S. Aldhizer II, George Aldhizer Jr. and Phillip C. Stone
How can the legal environment for business in Virginia be improved?“While the legal demands for business require more and more specialization, the costs of such concentration are often beyond the reach of many, if not most, businesses in Virginia. This can be improved by developing more broadly trained business lawyers, sufficiently well versed in the wide-ranging specialties of the law to know when the specialists are truly needed and then to manage their engagements to give our clients truly cost-effective legal representation.”
Why did you leave private practice to become executive vice president and general counsel to the VMI Foundation in the 1990s?“When VMI calls, you just don’t say ‘no.’ This was a rare opportunity to give something back to a school which has meant so much to me and my career. My partners at WAW could not have been more supportive. To have been at VMI during its litigation over and response to the admission of women will be the highlight of my legal career. This experience also shows how a broad-based practice may open up unex-pected opportunities for public service and new careers.”
50 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 51
2013 Virginia Legal Elite Gregory Thomas St. Ours Wharton Aldhizer & Weaver PLCHarrisonburg
Stephen Gerard Test Williams MullenVirginia Beach
Bruce E. Titus Rees Broome PCTysons Corner
Brian James Vella Smith Pachter McWhorter PLCVienna
William Norman Watkins Sands Anderson PCRichmond
John Stephen Wilson Wilson & McIntyre PLLCNorfolk
James Laurent Windsor Kaufman & Canoles PCVirginia Beach
Thomas Marshall Wolf LeClairRyanRichmond
CRIMINAL LAWJohn D. Adams McGuireWoods LLPRichmond
Alan Dale Albert LeClairRyanNorfolk
Tony Anderson Anderson & FriedmanRoanoke
Paul Graham Beers Glenn Feldmann Darby & GoodlatteRoanoke
Steven David Benjamin Benjamin & DesPortes PCRichmond
James Edward Bitner Bitner & Bitner Ltd.Oakton
Bruce M. Blanchard Odin, Feldman & Pittleman PCReston
Thomas Jack Bondurant Jr.Gentry Locke Rakes & MooreRoanoke
Valerie Bowen Office of the Commonwealth’s AttorneyYork County
James Orlando Broccoletti Zoby, Broccoletti & Normile PCNorfolk
Gray Bolling Broughton Williams MullenRichmond
Claire Grimmer Cardwell Stone, Cardwell & Dinkin PLCRichmond
Timothy Gerard Clancy Moschel, Clancy & Walter PLLCHampton
Craig Stover Cooley Craig Stover CooleyRichmond
Richard Cullen McGuireWoods LLPRichmond
M. Tyson Daniel The Daniel Law Firm PCRoanoke
William Jeffrey Dinkin Stone, Cardwell & Dinkin PLCRichmond
Afshin Farashahi Afshin Farashahi PCVirginia Beach
William Robert Fitzpatrick Sevila, Saunders, Huddleston & White PCLeesburg
Charles Arthur Gavin Cawthorn, Deskevich & GavinRichmond
Peter David Greenspun Greenspun Shapiro PCFairfax
John C. Holloran The Law Offices of John C. HolloranHarrisonburg
Michael HuYoung Barnes & Diehl PCRichmond
Charles Everett James Jr.Williams MullenRichmond
Trey Robert Kelleter Vandeventer Black LLPNorfolk
Rodney G. Leffler Leffler & AssociatesFairfax
Alexander Nicholas Levay Jr.Alex Levay Attorney PLLCLeesburg
John E. Lichtenstein LichtensteinFishwick PLCRoanoke
G. Manoli Loupassi Law Office of G. Manoli Loupassi LLCRichmond
Robert Clarkson Lunger Wharton Aldhizer & Weaver PLCStaunton
Timothy Joseph McEvoy Cameron/McEvoy PLLCFairfax
Steven A. Merril Whitestone, Brent, Young & Merril PCFairfax
Robert Gray Morecock Shuttleworth, Ruloff, Swain, Haddad & Morecock PCVirginia Beach
Patrick Hugh O’Donnell Kaufman & Canoles PCNorfolk
David A. Oblon Albo & Oblon LLPArlington
Congratulations Richard Locke and Colleen Quinn. Again named Virginia Business Legal Elite,
16 years strong.
Virginia Business Legal Elite , 2002 - 2006 & 2008 - 2013 Virginia Super Lawyers, 2010 - 2013
Virginia Business Legal Elite , 2005, 2010 - 2013 Virginia Super Lawyers, 2006 - 2013Top 25 Women, 2010 & 2011Top 50 Women, 2012 & 2013Top 50, 2011 & 2013 Top 100, 2012 & 2013
4928 West Broad St., Richmond, VA 23230
(804)285-6253 www.lockequinn.com
“Because How You Live Your Life Is Important.”
At Locke & Quinn we have made some changes. We have re-focused because how our clients build and live their lives is what is most important. At Locke & Quinn, we focus on obtaining the optimal outcomes for personal legal issues whether they be family law or LGBT issues, personal injury, employ-ment or trust and estate issues. Our job is to ensure the best legal outcome for our clients.
52 DECEMBER 2013 Photo by Mark Rhodes
CIVIL LITIGATION
Christopher M. MaloneThompsonMcMullan PC
Richm ondTitle: Attorney/managing directorOther legal specialties: Construction law, adoption lawBirthplace: Washington, D.C.Education: College of William & Mary, bachelor’s degree; University of Virginia, law degree; St. Leo’s University, master’s in theology. Spouse: NancyChildren: Chad, Matthew, Cecelia, Ryan, BrandonHobbies or pastimes: Hiking, spending time with family and friendsFirst job as a lawyer: Law clerk at Supreme Court of VirginiaFan of: New York YankeesFavorite vacation spot: Lubec, MaineRecently read book: “The Good Bishop: The Life of Walter F. Sullivan” by Phyllis TherouxCareer mentors: Justice Richard H. Poff, John B. Thompson, C. Grice McMullan Jr.
What has been your most memorable civil litigation case?“In my first jury trial, I represented the mother of a decedent on a claim for accidental death benefits under her son’s life insurance policy. After a misbegotten family shopping trip in Williamsburg, a dispute arose, and the son was stabbed during an ongoing affray on the side of Route 60. The jury adopted our view that the stabbing was unforesee-able because the couple fought all the time, and no one had ever been stabbed before. The verdict came back in favor of our claim in 30 minutes, with prejudgment interest. Fortunately, an appeal was not pursued.”
Your practice includes construction litigation. What effect did the recession have on construction disputes? “In the business of construction, trouble always follows when someone holds the dollar. In this recent recession, the cash flow on projects became slow and sometimes nonexistent. The results were seen in an initial increase in mechanics’ liens, con-tractor and subcontractor bankruptcies, bank and bonding company takeover of projects, and regret-tably, the loss of contractors that had prospered for generations in Virginia. Predictably, litigation slowed down as the likelihood of collection became more uncertain. In the end, settlements at low amounts often were agreed to because of the cost of litigation and the financial circumstances of both plaintiff and defendant.”
52 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 53
2013 Virginia Legal Elite Karin Riley Porter Price Benowitz LLPFairfax
Michael Anthony Robusto Slipow, Robusto & Kellam PCVirginia Beach
Andrew M. Sacks Sacks & SacksNorfolk
David Edward Sher Sher, Cummings and EllisArlington
Larry Benjamin Slipow Slipow, Robusto & Kellam PCVirginia Beach
Franklin A. Swartz Swartz, Taliaferro, Swartz & Goodove PCNorfolk
Patrick Tench Jones, Blechman, Woltz & Kelly PCNewport News
Howard Crawford Vick Jr.McGuireWoods LLPRichmond
Lawrence Hunter Woodward Jr.Shuttleworth, Ruloff, Swain, Haddad & Morecock PCVirginia Beach
Dickson John Young Whitestone, Brent, Young & Merril PCFairfax
FAMILY/DOMESTIC RELATIONSLuis A. Abreu Luis A. Abreu PLLCDanville
Debra C. Albiston Kaufman & Canoles PCNorfolk
Allison Wittersheim Anders Kaufman & Canoles PCVirginia Beach
Susan Carol Armstrong Armstrong Law Firm PLLCRichmond
Edward D. Barnes Barnes & Diehl PCChesterfield
Terrence Raymond Batzli Batzli Stiles Butler PCRichmond
Dale Truit Berrett Kaufman & Canoles PCVirginia Beach
Donald Keith Butler Batzli Stiles Butler PCRichmond
Sandra T. Chinn-Gilstrap Woods Rogers PLCDanville
Peter V. Chiusano Abrons, Fasanaro, Chiusano & Sceviour PLLCVirginia Beach
George A. Christie Christie, Kantor, Griffin, Smith & Harris PCVirginia Beach
Julie Marie Cillo Hall & Hall PLCMidlothian
David Rust Clarke Blankingship & Keith PCFairfax
Mary G. Commander Commander & CarlsonNorfolk
Joseph A. Condo The Condo Law Group PCMcLean
Nancy Douglas Cook Family Law Associates of Richmond PCRichmond
E. Thomas Cox E. Thomas Cox, Attorney at LawYorktown
Laura Ann Evans Evans Law GroupHarrisonburg
Cheshire I’Anson Eveleigh Wolcott Rivers GatesVirginia Beach
Sherry Ann Fox ThompsonMcMullan PCRichmond
Humes J. Franklin IIIWharton Aldhizer & Weaver PLCStaunton
Melanie Anne Friend CowanGates PCRichmond
Richard E. Garriott Jr.Pender & CowardVirginia Beach
David Lawrence Ginsberg Cooper Ginsberg Gray PLLCFairfax
Carolyn Mary Grimes Lieblich & Grimes PCAlexandria
John Pendleton Grove Woods Rogers PLCRoanoke
Robert Lee Harris Jr.Barnes & Diehl PCChesterfield
Jacqueline Cook Hedblom Hirschler FleischerRichmond
Robert Edward Henley IIIBatzli Stiles Butler PCRichmond
Susan Massie Hicks The Susan Hicks Group PCFairfax
Brian Mitchell Hirsch Hirsch & Ehlenberger PCReston
Elizabeth Bliemel Hurd Dunton, Simmons & Dunton LLPWhite Stone
Brian H. Jones Barnes & Diehl PCChesterfield
EliteRelationships.
The business of relationships.
ReedSmithSM
Congratulations to all the attorneys who
were named among Virginia Business’
“Legal Elite,” especially those we call our
own. They understand the importance of
building strong, powerful relationships.
To learn more, visit reedsmith.com.
Attorneys from our Richmond and Falls Church officesMichael Banzhaf, Real Estate/Land UseTillman Breckenridge, Appellate LawBenton Burroughs, Business LawHelen Connolly, Young Lawyer (Under 40)Bob Diamond, Real Estate/Land UseMike Dingman, Legal Services/Pro BonoMiles Dumville, Civil LitigationKaren Fagelson, Real Estate/Land UseTom Folk, ConstructionBrent Gary, Young Lawyer (Under 40)Betty Graumlich, Labor/EmploymentTom Greeson, Health LawGray Hanes, Alternative Dispute ResolutionCarol Honigberg, Real Estate/Land UseDavid Houston, Real Estate/Land UseLane Kneedler, Legislative/Regulatory/AdministrativeJulia Krebs-Markrich, Health LawJoe Luchini, ConstructionCurt Manchester, Alternative Dispute ResolutionEdward Mullen, Legislative/Regulatory/AdministrativeBrad Newberg, Intellectual PropertyLorin Patterson, Health LawGreg Rupert, Taxes/Estates/Trusts/Elder LawTravis Sabalewski, Legal Services/Pro BonoMatt Sheldon, Intellectual PropertyRip Sullivan, Civil LitigationBill Thomas, Legislative/Regulatory/AdministrativeEric Wang, Taxes/Estates/Trusts/Elder LawMark Wasserman, Intellectual Property
54 DECEMBER 2013 Photo by Mark Rhodes
CONSTRUCTION LAW
Robert K. CoxWilliams Mullen
Tysons Corner
Title: Chair, Construction Practice Group
Other legal specialties: Surety law
Birthplace: Pittsburgh
Education: Cornell University, bachelor’s
degree in economics; George Washington
University, law degree with honors
Spouse: Terry M. Cox
Children: Kacey M. Cox, Carly S. Cox
Hobbies or pastimes: Reading, “weak
game of golf”
First jobs as a lawyer: Lewis, Mitchell &
Moore of Vienna
Fan of: Pittsburgh Pirates, Penguins and
Steelers
Favorite vacation spot: “Any beach with
warm water.”
Recently read books: “The Wife of
Martin Guerre” by Janet Lewis; “Hell or
Richmond” by Ralph Peters
Career mentors: “Early in my legal
career, George E. Mezey Jr. and Stephen
R. Isaacson, then two rising project
executives from different clients, taught
me the business of construction. Through
them, I learned the economics, principles
and protocols of the players and projects
making up the construction industry. By
teaching me the construction industry, they
made me a better construction lawyer.”
Have low interest rates encouraged
your clients to begin new construction
projects?
“Low interest rates are but one factor in
encouraging new construction and alone
cannot kickstart construction spending. For
example, one of the largest nonresidential
building sectors is educational facilities.
Yet, the demands on limited budgets of
local and state governments, coupled
with diminished tax revenue due to
unemployment and lack of new industry
growth, when combined with reduced need
from limited student population growth,
have kept this building sector down despite
historically low interest rates.”
54 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 55
2013 Virginia Legal Elite Sean Patrick Kelly Kelly Byrnes & Danker PLLCFairfax
Joseph R. Lassiter Jr.Roussos, Lassiter, Glanzer & Barnhart PLCNorfolk
Harris Wayne Leiner Barnes & Diehl PCRichmond
Richard Lewis Locke Locke & QuinnRichmond
Christopher Hunt Macturk Barnes & Diehl PCRichmond
Katharine Wesley Maddox The Maddox Law FirmVienna
Britney Hope Maddux Jones, Blechman, Woltz & Kelly PCNewport News
Reeves W. Mahoney Poole Mahoney PCVirginia Beach
Michael Christopher May Albo & Oblon LLPArlington
J. Patrick McConnell Odin, Feldman & Pittleman PCReston
Michael James McHugh The McHugh Law FirmArlington
Mary Burkey Owens Owen & Owens PLCMidlothian
Robert Wayne Partin McCandlish Holton PCRichmond
Sarah A. Piper The Maddox Law FirmVienna
Colleen Marea Quinn Locke & QuinnRichmond
Frank Waters Rogers IIIMundy Rogers & Associates LLPRoanoke
Douglas Jay Sanderson McCandlish & Lillard PCFairfax
Rachael Adrienne Sanford Clement & WheatleyDanville
Victor Samuel Skaff IIIGuynn, Memmer & Dillon PCSalem
Andrea Rowse Stiles Batzli Stiles Butler PCRichmond
Laura Ann Thornton Laura A. Thornton PLCHarrisonburg
Ronald R. Tweel MichieHamlettCharlottesville
Arthur von Keller IVvon Keller Law PCManassas
David Gerard Weaver Weaver Law Firm PCRoanoke
John Caroll Leon Whitbeck Jr.Whitbeck Cisneros McElroy PCLeesburg
Brandon Harvey Zeigler Wolcott Rivers GatesVirginia Beach
HEALTH LAWWyatt Sanford Beazley IVWilliams MullenRichmond
Mark Sheridan Brennan Vandeventer Black LLPRichmond
William Leonard Carey Blankingship & Keith PCFairfax
Kevin Lincoln Cash Edmunds & Williams PCLynchburg
James Murrell Daniel Jr.Hancock, Daniel, Johnson & Nagle PCGlen Allen
Jason Robert Davis Kaufman & Canoles PCNorfolk
Patrick Campbell Devine Jr.Williams MullenNorfolk
Tasos Anthony Galiotos Willcox & Savage PCVirginia Beach
Colleen M. Gentile Sands Anderson PCRichmond
M. Todd Gerber Poole Mahoney PCVirginia Beach
Michael L. Goodman Goodman Allen & Filetti PLLCGlen Allen
Quinn Feldmann Graeff Medical Facilities of America Inc.Roanoke
Steven Douglas Gravely Troutman Sanders LLPRichmond
Thomas W. Greeson Reed Smith LLPFalls Church
Richard L. Grier ThompsonMcMullan PCRichmond
Mark Steven Hedberg Hunton & WilliamsRichmond
John Codd Ivins Jr.Hirschler FleischerRichmond
Virginia Family Law and Elder Law Attorneys
12090 West Broad Street • Richmond, Virginia 23233 • Phone 804-897-15151401 Huguenot Rd., Suite 100 • Midlothian, VA 23113 • Phone: 804-897-1515
www.hallandhallfamilylaw.com
Established in 1969
Hall & Hall is proud to celebrate its 1 yearanniversary at its Short Pump location!
56 DECEMBER 2013 Photo by Mark Rhodes
CRIMINAL LAW
Patrick H. O’DonnellKaufman & Canoles PC
Norfolk Title: PartnerOther legal specialties: Government contracts, export controls, admiralty and maritime, general business litigationBirthplace: Washington, D.C.Education: Radford University, bachelor’s degree in economics; University of Virginia School of Law, law degree.Spouse: Mary O’Donnell, a consultant for IsagenixChildren: Connor O’Donnell, a senior at Virginia Tech; Chris O’Donnell, a sophomore at Radford University; and Meghan O’Donnell, a junior at Maury High School in NorfolkHobbies: Fishing, working on boats (“mostly mine”), baseball, reading about historyFirst job as lawyer: As a law student, worked for U.Va. Legal Advisors Office; first job after passing the bar — law clerk to U.S. District Judge Richard B. Kellam, Eastern District of VirginiaFan of: Washington Nationals, Redskins, U.Va. and Radford sports teams Favorite vacation spot: Hatteras Island and now Ireland (after a recent visit)Recently read book: “The Swerve: How the World Became Modern” by Stephen Greenblatt Career mentors: Hunter W. Sims Jr. (partner, Kaufman and Canoles), the late John R. Crumpler (former partner, K&C) and Terence Murphy (partner, K&C). What was your most interesting criminal law case?“Working with my partner, Hunter Sims, defending Richard Holland Jr. in United States v. Holland — a case involving a 31-count indictment for bank fraud against former Virginia state Sen. Richard Holland and his son, Richard Holland Jr. The case involved an honest and stubborn father and son who managed The Farmer’s Bank of Windsor, but had angered the Federal Deposit Insurance Corp. The FDIC decided it would teach a lesson to these two small-town bankers by bringing down on them the awesome power that the federal government can summon. But, in the end, it was the stubborn father and son who prevailed against all odds when Judge Henry Morgan threw out the government’s entire case and found that the prosecution had not been conducted for just reasons.”
56 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 57
2013 Virginia Legal Elite Matthew Dimmock Jenkins Hunton & WilliamsRichmond
Jonathan M. Joseph Christian & Barton LLPRichmond
Samuel N. Klewans Grad, Logan & Klewans PCFalls Church
Nathan Adam Kottkamp McGuireWoods LLPRichmond
Julia C. Krebs-Markrich Reed Smith LLPFalls Church
Jeffrey Grant Lenhart Lenhart Obenshain PCHarrisonburg
Peter Lipresti Peter Lipresti PCFairfax
Mary Claybrooke Malone Hancock, Daniel, Johnson & Nagle PCGlen Allen
Heman A. Marshall IIIWoods Rogers PLCRoanoke
Jamie Baskerville Martin McCandlish Holton PCRichmond
Sherri Mearns Matson Children’s Hospital of the King’s DaughtersNorfolk
J. Robert McAllister IIIMcCandlish & Lillard PCFairfax
Thomas W. McCandlish McCandlish Holton PCRichmond
Stephen C. McCoy Patient First Corp.Glen Allen
Joel Mark McCray Sands Anderson PCRichmond
T. Braxton McKee Kaufman & Canoles PCNorfolk
Peter Mason Mellette Mellette PCWilliamsburg
Jennifer L. Muse Jones, Blechman, Woltz & Kelly PCNewport News
Lorin E. Patterson Reed Smith LLPFalls Church
Stacy Ross Purcell Eastern Virginia Medical SchoolNorfolk
R. Brent Rawlings Virginia Hospital and Healthcare AssociationGlen Allen
Stephen D. Rosenthal Troutman Sanders LLPRichmond
Kimberly Ann Satterwhite Herbert & Satterwhite PCRichmond
Thomas James Stallings McGuireWoods LLPRichmondJeffrey Lance Stredler Amerigroup Corp.Virginia Beach
Molly E. Trant Riverside Health SystemNewport News
John S. Wisiackas Odin, Feldman & Pittleman PCReston
INTELLECTUAL PROPERTYCharles M. Allen Jr.Goodman Allen & Filetti PLLCGlen Allen
Robert A. Angle Troutman Sanders LLPRichmond
Joel Ankney Virginia Entrepreneur Law OfficeVirginia Beach
Patrick Christopher Asplin Lenhart Obenshain PCCharlottesville
Tara A. Branscom CowanPerryRoanoke
Peter Edwin Broadbent Jr.Christian & Barton LLPRichmond
Duncan G. Byers Byers Law GroupNorfolk
Zachary Daniel Cohen ThompsonMcMullan PCRichmond
Christopher Michael Collins Vanderpool, Frostick & Nishanian PCManassas
James Robert Creekmore The Creekmore Law Firm PCBlacksburg
Marshall Murat Curtis Whitham, Curtis, Christofferson & Cook PCReston
Stephen Patrick Demm Hunton & WilliamsRichmond
Douglas W. Densmore CowanPerryRoanoke
John Blanton Farmer Leading-Edge Law Group PLCRichmond
Daniel Leroy Fitch Wharton Aldhizer & Weaver PLCHarrisonburg
Jeffrey H. Geiger Sands Anderson PCRichmond
Congratulates Virginia’s Legal Elite 2013
www.vanblk.com
Adam RafalLabor/Employment
Anne BibeauLabor/EmploymentArlene KlinedinstLabor/EmploymentBryant McGann
Business LawChristopher Ambrosio
Real Estate/Land UseDaniel Weckstein
Legislative/Regulatory/AdministrativeDavid Lannetti
Bankruptcy/Creditors’ RightsDeborah Casey
Real Estate/Land UseEdward PowersAppellate Law
Gretchen OstroffYoung Lawyer (under 40)
James CosbyCivil Litigation
Jane TuckerIntellectual Property
John LockardConstructionJohn RyanBusiness Law
Mark BrennanHealth Law
Michael SterlingAlternative Dispute Resolution
Neil LowensteinConstruction
Patrick HermanTaxes/Estates/Trusts/Elder Law
Robert O’DonnellCivil LitigationTrey KelleterCriminal Law
William FranczekAlternative Dispute Resolution
58 DECEMBER 2013 Photo by Mark Rhodes
FAMILY LAW/DOMESTIC RELATIONS
Mary Burkey OwensOwen & Owens PLC
Midlothian
Title: Founding partner Other legal specialties: Collaborative law, mediation and real estate lawBirthplace: RichmondEducation: Virginia Tech, bachelor’s degree; University of Richmond, law degree Spouse: HarrisonHobbies or pastimes: Traveling, hiking, swimming, boating, fishing, readingFirst job as a lawyer: Working with a sole practitioner, Mac Chenault.Fan of: Virginia Tech Hokies, University of Richmond Spiders Favorite vacation spot: Italy or any beach Recently read books: “A Land More Kind Than Home” by Wiley Cash and “The Round House” by Louise ErdrichCareer mentors: “John G. ‘Chip’ Dicks III, who taught me the legal and business sides of practicing law and the Hon. Ernest P. Gates, who demonstrated how to blend faith, kindness and toughness.”
What trends are you seeing in family law? “In the last few years, I have found that clients are more willing to engage mental health professionals to assist them with developing a parenting plan rather than taking the custody and visitation matters to the court for a decision. I believe that utilizing a mental health expert can assist the parents with making more informed decisions about their child’s best interests, which certainly benefits the child moving forward. Utilizing a mental health professional can also diffuse some of the anger that parents have with each other, which also leads to a better future for the family as a whole.”
You have been trained as a collaborative lawyer. What role does a collaborative lawyer play in family law?“As a collaboratively trained attorney, I have an even greater ability to help couples who are dissolving their marriage or relationship in a respectful and dignified manner. In a collaborative case, we assemble a team of professionals in the legal, mental health and financial fields to assist the couple with the dissolution of their union. The collaborative practice is truly different from litigation; it provides a couple with the opportunity to be heard, create their own resolution and honor one another for the contributions the other has made during their union as a parent, spouse or partner.”
58 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 59
2013 Virginia Legal Elite Stewart Lee Gitler Welsh Flaxman & Gitler LLCAlexandria
Robert Page Henley IIIHirschler FleischerRichmond
Timothy Hsieh MH2 Technology Law Group LLPTysons Corner
R. Neal Keesee Jr.Woods Rogers PLCRoanoke
Paul Kilmer Holland & Knight LLPWashington
Lee N. Kump Sourcing Law Group PLCChesterfield
Timothy John Lockhart Willcox & Savage PCNorfolk
Christopher Michael Mackenzie Jones, Blechman, Woltz & Kelly PCNewport News
Jason E. Manning Troutman Sanders LLPVirginia Beach
J. Michael Martinez de Andino Hunton & WilliamsRichmond
Dana D. McDaniel Spotts Fain PCRichmond
Christopher John Mugel Kaufman & Canoles PCRichmond
Craig Lawrence Mytelka Williams MullenVirginia Beach
Brad R. Newberg Reed Smith LLPFalls Church
Stephen E. Noona Kaufman & Canoles PCNorfolk
Kevin T. Oliveira Odin, Feldman & Pittleman PCReston
William Rueger Poynter Williams MullenNorfolk
Brian Charles Riopelle McGuireWoods LLPRichmond
Matthew Robertson Sheldon Reed Smith LLPFalls Church
Robert E. Smartschan Kaufman & Canoles PCNorfolk
Stephen Evans Story Kaufman & Canoles PCNorfolk
Ralph Marion Tener McCandlish & Lillard PCFairfax
David Ian Tenzer Glenn Feldmann Darby & GoodlatteRoanoke
Robin L. Teskin LeClairRyanAlexandria
Ian Donald Titley Schroder Fidlow PLCRichmond
Jane Dandridge Tucker Vandeventer Black LLPNorfolk
Robert M. Tyler Spotts Fain PCRichmond
Peter Joseph Van Bergen Peter J. Van Bergen, Patent AttorneyWilliamsburg
Mark W. Wasserman Reed Smith LLPFalls Church
Edward T. White LeClairRyanRichmond
LABOR/EMPLOYMENTThomas R. Bagby Woods Rogers PLCRoanoke
Robert Jon Barry Kaufman & Canoles PCNorfolk
Eric James Berghold McCandlish & Lillard PCFairfax
Lisa Ann Bertini Bertini & Hammer PCNorfolk
Anne Graham Bibeau Vandeventer Black LLPNorfolk
Susan R. Blake Dominion EnterprisesNorfolk
Elaine Charlson Bredehoft Charlson Bredehoft Cohen & Brown PCReston
John Michael Bredehoft Kaufman & Canoles PCNorfolk
David Christopher Burton Williams MullenVirginia Beach
Congratulations to colleagues Ron Tweel,
Ed Lowry, andJim Cox for being named
LEGAL ELITE of Virginia.
Civil LitigationFamily, Domestic Relations
500 Court SquareCharlottesville, Va 22902(434) 951-7200(800) 451-1288MichieHamlett.com
Taxes, Estates, Trusts
Congratulates
Susan M. HicksThree Flint Hill
3201 Jermantown Road, Suite 200Fairfax, Virginia 22030
Tel: 703-691-4848 Fax: 703-359-0197
Visit our website at www.susanhicksgroup.com
60 DECEMBER 2013 Photo by Mark Rhodes
HEALTH LAW
Thomas W. GreesonReed Smith LLP
Falls Church
Title: PartnerOther specialties: Practice focuses on representation of diagnostic radiology groups and other providers of diagnostic imaging services across the country, with clients in all 50 states and the District of Columbia.Hometown: Dalton, Ga.Education: University of Georgia, bachelor’s and master’s degrees in business administration; Chicago-Kent College of Law, law degree with honorsSpouse: Catherine S. ReadChildren: “My daughter, Emma Greeson, is a doctoral candidate at the University of California, San Diego; and my son, Matthew Greeson, is a recent U.Va. Law School grad and a second-year associate in the D.C. offices of the law firm of Vinson & Elkins.”Pastimes: Politics and volunteering with nonprofits. He is a member and past-chair of the Virginia Bar Association’s Health Law Section Council. First job as lawyer: General counsel for the American College of Radiology Fan of: “Proud University of Georgia football fan. Go Dawgs!”Recently read book: “The Price of Justice” by Lawrence Leamer Career mentors: “Dr. Edward Meeker, U.Ga. economics professor. I served as Ted’s teaching assistant for two years while in graduate school getting an MBA. Paul Gebhard, a truly great health-care and association lawyer, who represented numerous national medical specialty societies in the course of his stellar career. Both are deceased and both are missed.”
Can you describe your practice?“I focus on the regulatory issues confronting diagnostic radiologists and imaging suppliers. The regulatory framework promulgated by CMS for the provision and payment of diagnostic imaging services is complex and ever changing. I represent my clients not only in respect to regulatory compliance, but also with their ventures and their various contractual arrangements. I write for and speak frequently to groups in the imaging space on regulatory developments.”
60 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 61
2013 Virginia Legal Elite Harris D. Butler IIIButler Royals PLCRichmond
Jeremy D. Capps Harman Claytor Corrigan & WellmanRichmond
Jeremy Ethridge Carroll Glenn Feldmann Darby & GoodlatteRoanoke
David E. Constine IIITroutman Sanders LLPRichmond
Craig Juraj Curwood Curwood Law FirmRichmond
Malik K. Cutlar PCT Law Group PLLCAlexandria
Kimberly W. Daniel Hancock, Daniel, Johnson & Nagle PCGlen Allen
Lauren Rachel Darden Wharton Aldhizer & Weaver PLCHarrisonburg
R. Mark Dare Isler Dare PCVienna
John Edward Davidson Davidson & Kitzmann PLCCharlottesville
Mary Elizabeth Davis Spotts Fain PCRichmond
C. Michael DeCamps Sands Anderson PCRichmond
Thomas Joseph Dillon IIIHirschler FleischerRichmond
Karen Ann Doner Roth Doner Jackson PLCMcLean
Karen S. Elliott Sands Anderson PCRichmond
Patricia Kyle Epps Hunton & WilliamsRichmond
Reid H. Ervin Reid H. Ervin & Associates PCNorfolk
William McCardell Furr Willcox & Savage PCNorfolk
Sean M. Gibbons Roth Doner Jackson Gibbons Condlin PLCRichmond
Ryan Ayers Glasgow Hunton & WilliamsRichmond
David John Gogal Blankingship & Keith PCFairfax
Betty Sinclaire Wommack Graumlich Reed Smith LLPRichmond
Robyn Hylton Hansen Jones, Blechman, Woltz & Kelly PCNewport News
Warren David Harless Christian & Barton LLPRichmond
Edward Lee Isler Isler Dare PCVienna
Stephanie Ploszay Karn Goodman Allen & Filetti PLLCGlen Allen
Scott W. Kezman Kaufman & Canoles PCNorfolk
Arlene Faith Klinedinst Vandeventer Black LLPNorfolk
David Aaron Kushner Willcox & Savage PCNorfolk
Vijay Kumar Mago LeClairRyanRichmond
Alexander Tevis Marshall Ogletree, Deakins, Nash, Smoak & Stewart PCRichmond
Kevin Edward Martingayle Bischoff Martingayle PCVirginia Beach
James Vincent Meath Williams MullenRichmond
Christopher Michael Michalik McGuireWoods LLPRichmond
Melisa Gay Michelsen Litten & Sipe LLPHarrisonburg
Heather Ann Mullen Office of the City AttorneyNorfolk
David Edward Nagle Jackson Lewis LLPRichmond
Susan Childers North LeClairRyanWilliamsburg
Samantha Stecker Otero McCandlish Holton PCRichmond
W. David Paxton Gentry Locke Rakes & MooreRoanoke
Lauren M. Piana Odin, Feldman & Pittleman PCReston
Adam Seth Rafal Vandeventer Black LLPNorfolk
Sara Berg Rafal Williams MullenVirginia Beach
Jeffrey Lynn Rhodes Albo & Oblon LLPArlington
NV&F
VANDERPOOL, FROSTICK & NISHANIAN, P.C.
Solutions from lawyers you trust
Congratulations TO OUR AT TORNEYS NAMED
Legal EliteMichael R. Vanderpool - BUSINESS LAW
Randolph D. Frostick - CIVIL LITIGATION
Christopher M. Collins - INTELLECTUAL PROPERTY
www.vfnlaw.comMANASSAS • FREDERICKSBURG • LAKE RIDGE
703.369.4738 • 540.479.4275 • 703.492.9955
62 DECEMBER 2013 Photo by Mark Rhodes
INTELLECTUAL PROPERTY
Marshall M. CurtisWhitham, Curtis,
Christofferson & Cook PCReston
Title: PresidentBirthplace: CharlottesvilleEducation: Washington University in St. Louis, bachelor’s degree; Columbus School of Law, Catholic University of America, law degreeSpouse: Eileen D. CurtisChildren: Erin Melissa Curtis-Legate, J. Alexandra Curtis, Caitlin Elisabeth MilesHobbies or pastimes: Cooking, photography, musicFirst job as a lawyer: Senior Primary Examiner, U.S. Patent and Trademark Office (USPTO)Recently read book: “Atlantic” by Simon Winchester Career mentors: “Law: Thomas A. Robinson and C. Lamont Whitham; engineering: Harvey Carpenter Jr., Dr. Lloyd R. Brown, Dr. R.J.W. Koopman and every inventor I have represented.”
What insight does your background as a patent Examiner with the USPTO give you in your practice?“Having been an Examiner for over 20 years, I believe I can think like an Examiner in my writing of applications, drafting claims and presenting persuasive arguments to Examiners. Being able to anticipate, to a degree, how an Examiner will approach particular subject matter or react to the way it is described and claimed can often expedite prosecution of patent applications and result in better patent protection for clients’ inventions.”
Do you expect China to overtake the U.S. in the issuance of “invention” patents?“I expect that closely approaching U.S. numbers is more likely than greatly exceedingthem. The number of issued patents will be a percentage of applications filed which will include a large number of foreign origin, including the U.S. Increased numbers of applications filed in a given country is, in turn, an indicator of worldwide perception of increased ability to enforce patents, licensing value of patents and likelihood of infringement in that country.”
62 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 63
2013 Virginia Legal Elite Timothy M. Richardson Poole Mahoney PCVirginia Beach
Gregory Branch Robertson Hunton & WilliamsRichmond
Anne Rocktashel Welter Law Firm PCHerndon
R. Barry Rowell Valverde and Rowell PCVirginia Beach
Marguerite R. “Rita” Ruby Hunton & WilliamsRichmond
Rodney Allen Satterwhite McGuireWoods LLPRichmond
James H. Shoemaker Jr.Patten, Wornom, Hatten & DiamonsteinNewport News
David Raymond Simonsen Jr.David Raymond Simonsen Jr., AttorneyRichmond
Anna Richardson Smith Kaufman & Canoles PCNorfolk
Neil S. Talegaonkar ThompsonMcMullan PCRichmond
Thamer E. “Chip” Temple IIIDurretteCrump PLCRichmond
Thomas E. Ullrich Wharton Aldhizer & Weaver PLCHarrisonburg
Hill B. Wellford Jr.Hunton & WilliamsRichmond
Cathleen Patricia Welsh Lenhart Obenshain PCHarrisonburg
Burt Helgaas Whitt Kaufman & Canoles PCNorfolk
Laura Denise Windsor Williams MullenRichmond
LEGAL SERVICES/ PRO BONOArlene Kafker Beckerman Northern Virginia Pro Bono Law CenterFairfax
Tara Louise Casey Carrico Center for Pro Bono ServiceUniversity of Richmond School of Law
Michael S. Dingman Reed Smith LLPFalls Church
Lewis Eric Gelobter Legal Services of Northern VALeesburg
Laura Geringer Gross Kaufman & Canoles PCNorfolk
Alex Ross Gulotta Legal Aid Justice CenterCharlottesville
Margaret F. Hardy Sands Anderson PCRichmond
Nicole J. Harrell Kaufman & Canoles PCNorfolk
George H. Hettrick Hunton & WilliamsRichmond
Phyllis C. Katz Sands Anderson PCRichmond
Alton L. Knighton Jr.Woods Rogers PLCRoanoke
Laura Liff McCandlish & Lillard PCFairfax
Henry W. McLaughlin IIILaw Office of Henry McLaughlinRichmond
Lauren Danielle Mehosky Legal Aid Society of Eastern VirginiaNorfolk
David Storey Mercer MercerTrigianiAlexandria
Hugh FainHH h Fh F i Brian MarronB i M
Rob TylerR bb TT lMeade SpottsM d S
Betsy DavisB D i
Billy MauckBilB l MM kk Dana McDanielD M D i l
411 East Franklin Street, Suite 600 | Richmond, VA 23219 | 804.697.2000 | www.spottsfain.com
Spotts Fain salutes all the lawyers named inVirginia Business’ 2013 Legal Elite including our own!
Law Offices
Sevila, Saunders, Huddleston & White
(703) 777-5700 • METRO (703) 471-9800 • FAX (703) 771-4161 • www.sshw.com
30 NORTH KING STREET • LEESBURG, VIRGINIA 20176
Congratulations to our 2013 Virginia BusinessLegal Elite
JEANINE M. IRVING - APPELLATE LAW
CRAIG E. WHITE - ALTERNATIVE DISPUTE RESOLUTION/MEDIATION
LAWRENCE M. SCHONBERGER - REAL ESTATE/LAND USE
R. PENN BAIN - YOUNG LAWYER (UNDER 40)RICHARD R. SAUNDERS, JR. - CIVIL LITIGATION
ROBERT E. SEVILA - BUSINESS LAW
WILLIAM R. FITZPATRICK - CRIMINAL LAW
64 DECEMBER 2013 Photo by Mark Rhodes
LABOR/EMPLOYMENT
Lisa A. BertiniBertini & Hammer PC
Norfolk
Title: President Other legal specialties: Personal injury, contract litigationBirthplace: Vineland, N.J.Education: Georgetown University, bachelor’s degree; College of William & Mary, law degreeSpouse: Dr. Jack L. SiegelChildren: Two teenage girls: Zoe and Lucy Hobbies or pastimes: Avid fiction reader, dog lover, hiking, travelFirst job as a lawyer: Jenkens & Gilchrist in Dallas Recently read book: “The Sweet In-between” by Sheri ReynoldsCareer mentors: “My dad, because he is both a frustrated trial lawyer and my loveliest critic; and Judge M.J. Hall, a great friend and brilliant jurist.”
What trends are you seeing in discrimination and harassment cases?“Overall, there is a trend toward mediation over trial. This has gradually developed to the point where traditional Title VII employment trials are very rare in federal court in the [Eastern District of Virginia] Norfolk Division. I don’t necessarily see this as a negative if the case settles for the right reasons. I do consider it disheartening when legally strong cases are strained to consider settlement. So many cases are lost at the summary judgment level due to federal judges who take liberty with fact finding more appropriately reserved for juries. What I find impossible is that once a plaintiff jumps the countless hurdles she has to clear even to have a case worthy of filing under ever-changing standards, she then can see the finish line in sight with all discovery done, and a judge pulls one fact out of the morass and christens that fact to be the indispensible and paramount compass point for a reason known to no one but the judge. I doubt I’ll ever get used to that process and hope I never reconcile to its inherent unfairness.”
64 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 65
2013 Virginia Legal Elite Wiley Francis Mitchell Jr.Willcox & Savage PCNorfolk
George Andrew Nea Jr.Williams MullenRichmond
Stephen “Steve” A. Northup*Troutman Sanders LLPRichmond
John Oakey Jr.McGuireWoods LLPRichmond
Daniel Eric Ortiz Blankingship & Keith PCFairfax
John Robert Rellick Rappahannock Legal Services Inc.Tappahannock
Travis Aaron Sabalewski Reed Smith LLPRichmond
Marcellinus L. M. B. Slag Legal Aid Justice CenterRichmond
Edwin Ford Stephens Christian & Barton LLPRichmond
James L. Weinberg Hirschler FleischerRichmond
John Edward Whitfield Blue Ridge Legal Services Inc.Harrisonburg
Leigh M. Winstead Odin, Feldman & Pittleman PCReston
Henry L. Woodward Legal Aid Society of Roanoke ValleyRoanoke
LEGISLATIVE/REGULATORY/ADMINISTRATIVEHeidi Wilson Abbott Hunton & WilliamsRichmond
Ralph L. “Bill” Axselle Jr.Williams MullenRichmond
Stephen E. Baril Sands Anderson PCRichmond
Gerald Clyde Canaan IIHancock, Daniel, Johnson & Nagle PCGlen Allen
Kenneth Eric Chadwick Chadwick, Washington, Moriarity, Elmore & Bunn PCFairfax
David Wright Clarke Eckert Seamans Cherin & Mellott LLCRichmond
Whittington W. Clement Hunton & WilliamsRichmond
M. Ann Neil Cosby Sands Anderson PCRichmond
M. Seth Ginther Hirschler FleischerRichmond
Ralph Martin Goldstein Jones, Blechman, Woltz & Kelly PCNewport News
David Browning Graham Kaufman & Canoles PCWilliamsburg
Brian R. Greene GreeneHurlocker PLCRichmond
Anne Reilly Ha McCandlish & Lillard PCFairfax
Bryan Michael Haynes Troutman Sanders LLPRichmond
Frederick Patterson Helm Kemper ConsultingRichmond
John Early Holloway Troutman Sanders LLPNorfolk
William Scott Johnson Hancock, Daniel, Johnson & Nagle PCGlen Allen
Reginald N. Jones Williams MullenRichmond
hamptonroadscf.org (757) 622-7951
Inspiring Philanthropy. Changing Lives.
2013 winner of the Barron F. Black
Community Builder AwardPrevious recipients honored for helping clients to be generous:
2012Toy D. Savage Jr., Willcox Savage PC
2011Anne B. Shumadine, Signature
2010Allan G. Donn, Willcox & Savage PC
2009 Guilford D. Ware, Crenshaw, Ware and Martin PLC
2008 Robert C. Nusbaum, Williams Mullen
2007 Anita O. Poston, Vandeventer Black LLP
Hampton Roads Community Foundation congratulates
Robert C. Goodman Jr. of Kaufman & Canoles PC
We congratulate our attorneys who have been recognized bytheir peers as Virginia’s Legal Elite for 2013.
www.durrettecrump.com Bruce E. Arkema Thamer E. Temple III R. Paul Childress, Jr. Beverley L. Crump Wyatt B. Durrette
* Retired
66 DECEMBER 2013 Photo by Mark Rhodes
LEGAL SERVICES/PRO BONO
Phyllis C. KatzSands Anderson PC
Richmond
Title: ShareholderOther legal specialties: Employment, government and nonprofit lawBirthplace: Elizabeth, N.J.Education: Douglass College, Rutgers University, bachelor’s degree; Ohio University, master’s in urban and regional planning; University of Richmond, law degreeChildren: A daughter and son, their spouses and five grandchildrenHobbies or pastimes: “Inventing food recipes; teaching/coaching/mentoring; exploring new venues and neighborhoods; traveling unfrequented paths.” First job as a lawyer: Office of Attorney General of VirginiaFavorite vacation spot: Aspen and its music festival; Paris; CreteRecently read book: “Five Miles Away, A World Apart” by James E. RyanCareer mentors: “There are so many that selecting a few would be a disservice to the others. One person who has been an inspiration and a collaborator is Ann Hodges (co-founder of the Legal Information Network for Cancer) — without her I would not be asked these questions.”
You are a co-founder of LINC. What is LINC’s purpose and how did it get started?“LINC was created to (1) advocate for persons with cancer who were experiencing adverse consequences arising from their cancer treatments and recovery and (2) provide easy access to attorneys knowledgeable in the issues and willing to take on the representation at the drop of a hat. In the mid-1990s many of the current standard treatments for cancer were denied coverage as being ‘experimental’ or ‘not medically necessary’ (such as reconstruction after breast cancer surgery). Financial issues and creditor actions plagued (and still do) cancer patients — a diagnosis of cancer is costly — lost time from work, no income, and huge medical expenses. Cancer patients in hospice found themselves needing guardianship for their minor children. The vision of energizing attorneys to volunteer their time and knowledge to help cancer patients deal with the legal issues that impacted their recovery has always been the goal of LINC. Since 1996 LINC has served hundreds of patients a year to effectively deal with non-medical impacts of cancer.”
66 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 67
2013 Virginia Legal Elite
Congratulations to our lawyers, David A. Oblon, Jeffrey L. Rhodes, Michael C. May, Cyrus E. Phillips, IV, and Jeffrey A. Hord on their selection as fi ve ofVirginia’s “Legal Elite.” A classic litigation law fi rm, Albo & Oblon, practices Employment Law, Government Contracts, Business/Civil Litigation, ABC Law, Family Law, and Criminal Defense. We accept cases anywhere in Virginia,Washington, D.C. and Maryland.
Arlington - Fairfax - Staunton(703) 312-0410
Web: www.albo-oblon.com • Email: [email protected]
The law fi rm of Sacks & Sacks congratulates Andrew M. Sacks for his selection again this year for the “LEGAL ELITE” in the category of Criminal Defense.
Andrew is a partner with his father, Stanley, in their Norfolk law fi rm, Sacks & Sacks. Founded in 1911 by the late Herman A. Sacks, the fi rm’s three generations of trial lawyers have been representing clients in the state and federal courts in Virginia continuously for over 100 years.
Andrew, a summa cum laude and Phi Beta Kappa graduate of Dartmouth College, received his law degree from the University of Virginia, where he served on the law school’s National Moot Court team. For the past 33 years, he has concentrated on plaintiff ’s injury, civil rights personal injury, and wrongful death trial law, and criminal defense work in state and federal court. A Past President of the Virginia Trial Lawyers Association, a Past Co-chair of the Virginia Criminal Justice Conference, aFellow of the International Academy of Trial Lawyers, and a Past President of the Virginia Associationof Criminal Defense Lawyers, Andrew has been listed in The Best Lawyers in America editions since 1993, and appears in the 2013 edition in the categories of both White-Collar and Non-White-Collar Criminal Defense, as well as Personal Injury Litigation. He was also recently selected as the White Collar Criminal Defense Lawyer of the Year for the Norfolk area by Best Lawyers. Active incommunity affairs, Andrew was a founding member of the Norfolk Aids Walk For Life Foundation, and he formerly chaired the Virginia Anti-Defamation League.
SACKS & SACKS, A Professional CorporationAttorneys & Counselors at Law757-623-2753 • Town Point Center, Suite 501, 150 Boush St. • Norfolk,VA 23510andrewsacks@lawfi rmofsacksandsacks.com
Continuing a Family Tradition of Trial Law Since 1911
John-Garrett Kemper Kemper ConsultingRichmond
Anne Leigh Kerr Troutman Sanders LLPRichmond
Bradford A. King Sands Anderson PCRichmond
Lane Kneedler Reed Smith LLPRichmond
Kamala Hallgren Lannetti Virginia Beach City Attorney’s OfficeVirginia Beach
Marina J. Liacouras Elizabeth River CrossingsPortsmouth
Thomas Alan Lisk Eckert Seamans Cherin & Mellott LLCRichmond
J. Jay Litten Litten & Sipe LLPHarrisonburg
Alexander Macdonald Macaulay Macaulay & Burtch PCRichmond
Dale G. Mullen McGuireWoods LLPRichmond
Edward Augustus Mullen Reed Smith LLPRichmond
Collins Leonard Owens Jr.City Attorney’s OfficeNewport News
Bernard Anthony Pishko Norfolk City Attorney’s OfficeNorfolk
Joan Heishman Proper William B. Reichhardt & AssociatesFairfax
Paul R. Schmidt Poole Mahoney PCVirginia Beach
Stephen C. Shannon Odin, Feldman & Pittleman PCReston
Mark Campbell Shuford Spencer LLPRichmond
Elizabeth Skilling Harman Claytor Corrigan & WellmanRichmond
Meade A. Spotts Spotts Fain PCRichmond
Joseph E. Spruill IIILeClairRyanRichmond
Daniel Clayton Summerlin Woods Rogers PLCRoanoke
David Harlen Sump Troutman Sanders LLPNorfolk
68 DECEMBER 2013 Photo by Mark Rhodes
LEGISLATIVE/REGULATORY/ADMINISTRATIVE
Dale G. MullenMcGuireWoods LLP
RichmondTitle: PartnerOther legal specialties: Environmental law, civil litigation, land use, natural resources, public utilities, animal agriculture Birthplace: Danville, Ill.Education: Bluefield College, bachelor’s degree (summa cum laude); University of Richmond, T.C. Williams School of Law, law degree (cum laude)Spouse: VictoriaChildren: Jacob, 19; Thomas, 15Hobbies or pastimes: “Playing music with my sons and enjoying the Virginia outdoors.” First job as a lawyer: “When I was still in law school, Jim Comey helped me get a position at a firm that represented businesses, health-care providers, and other professionals. I was placed on a trial team and this early experience was a tremendous opportunity to learn how to prepare complicated cases with expert testimony in a short period of time. Working under the scrutiny of clients, insurance companies, and experienced litigators taught me how to complete high-quality work efficiently, effectively and economically.” Fan of: Golf, camping, skiing, hunting, fishingFavorite vacation spot: Florida Keys or any Virginia ski resort Recently read book: “The Curmudgeons: South Georgia Stories of Risk and Redemption” by Tom WordCareer mentors: “I am grateful to more mentors than I could mention. Chief among them are David E. Evans, John M. Fitzpatrick, James B. Comey, and John G. Douglass.”
How has your experience in government contributed to your practice?“Businesses need workable solutions, not compli-cated disputes. My experience with the Office of the Attorney General, as a Special Assistant United States Attorney (SAUSA) and as a county attorney, provided the opportunity to participate in a variety of disputes including complex federal, state and local matters. Understanding the role of litigation and the legislative, regulatory and enforcement component of each segment of government helps me see the opportunities for practical environmental and regula-tory solutions for business clients.”
68 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 69
2013 Virginia Legal Elite
Recent representations include collective actionsrepresenting police of icers with the City ofRichmond and Henrico County PoliceDepartments and with the Richmond Sheriff’s Department to recover unpaid overtime wages.
STAND YOUR GROUND
Butler Royals, PLC • 140 Virginia Street • Suite 302 • Richmond, VA 23219 804 • 648 • 4848
visit our website at www.butlerroyals.com
Harris Butler Paul FalabellaRebecca Royals Zev Antell
Our employment lawyersare known for their superior skill and knowledge...
William G. Thomas Reed Smith LLPRichmond
Warren Lafayette Tisdale Willcox & Savage PCNorfolk
Anthony F. Troy Eckert Seamans Cherin & Mellott LLCRichmond
Daniel Richard Weckstein Vandeventer Black LLPNorfolk
REAL ESTATE/LAND USESteven Ray Adcox Ferguson Enterprises Inc.Newport News
Christopher Ambrosio Vandeventer Black LLPNorfolk
Michael A. Banzhaf Reed Smith LLPFalls Church
Robert Edward Bourdon Jr.Sykes, Bourdon, Ahern & Levy PCVirginia Beach
Deborah Mancoll Casey Vandeventer Black LLPNorfolk
John V. Cogbill IIIMcGuireWoods LLPRichmond
Thomas J. Colucci Walsh Colucci Lubeley Emrich & Walsh PCArlington
Andrew M. Condlin Roth Doner Jackson Gibbons Condlin PLCRichmond
Ann Kiley Crenshaw Kaufman & Canoles PCNorfolk
David Conlon Culbert Culbert & Schmitt PLLCLeesburg
Paul Harold Davenport Hirschler FleischerRichmond
Robert L. Dewey Willcox & Savage PCNorfolk
Robert Michael Diamond Reed Smith LLPFalls Church
Matthew Michael Dudley Willcox & Savage PCNorfolk
Alyssa Carducci Embree Williams MullenNorfolk
Benjamin William Emerson Sands Anderson PCRichmond
Karen C. Fagelson Reed Smith LLPFalls Church
David Young Faggert Faggert & Frieden PCVirginia Beach
John William Farrell McCandlish & Lillard PCFairfax
John Holland Foote Walsh Colucci Lubeley Emrich & Walsh PCPrince William
Jonathan Aaron Frank Williams MullenRichmond
Vernon Meredith Geddy IIIGeddy, Harris, Franck & Hickman LLPWilliamsburg
Paul Whitmore Gerhardt Kaufman & Canoles PCWilliamsburg
Christopher Martin Gill Christian & Barton LLPRichmond
Donald N. Goldrosen Odin, Feldman & Pittleman PCReston
Maryellen F. Goodlatte Glenn Feldmann Darby & GoodlatteRoanoke
Howard Elliott Gordon Williams MullenNorfolk
Sarah E. Hall Blankingship & Keith PCFairfax
Lisa Anne Hawkins Lenhart Obenshain PCHarrisonburg
Alexander Brooks Hock Williams MullenRichmond
Edward Falcon Hodges Jr.Clement & WheatleyDanville
Carol C. Honigberg Reed Smith LLPFalls Church
David S. Houston Reed Smith LLPFalls Church
70 DECEMBER 2013 Photo by Mark Rhodes
REAL ESTATE/LAND USE
Thomas J. ColucciWalsh Colucci Lubeley Emrich & Walsh PC
Arlington
Title: PrincipalBirthplace: Waterbury, Conn.Education: Fairfield University, bachelor’s degree in economics; Washington College of Law of the American University, law degree Spouse: Michelle Children: Troy, JillHobbies or pastimes: Golf, fitness and spending time with grandchildrenFirst job as a lawyer: Associate at Herrell, Campbell & Lawson (small general practice firm in Arlington)Fan of: Washington Redskins and Washington NationalsFavorite vacation spot: South Florida Recently read book: “Killing Lincoln” by Bill O’Reilly and Martin DugardCareer mentors: Barnes Lawson, Paul Herrell, Eugene House and Preston Caruthers
Is the Virginia commercial real estate market reviving? “The Virginia market is showing clear signs of revival with a great amount of activity on multifam-ily, residential projects located in strategic locations along metro corridors in Arlington and in the Merrifield submarkets and now, with the shortly anticipated opening of the Silver Line through the Tysons Corner area, at those locations proximate to stations on the Silver Line. The office market remains somewhat sluggish, and I would anticipate that may continue until there is a little more stabil-ity brought to bear on anticipated government spending.”
What trends are you seeing in real estate law?“There is clearly a movement to large-scale, mixed-use projects in convenient locations that are able to provide a wide array of amenities for work, play and shopping opportunities. These projects seem to have very complex legal structures, as oftentimes there may be separate development interests developing separate portions of a mixed-use project based on their development expertise in a particular class of asset. These types of projects present many ownership, development and financ-ing challenges. However, the development and lending community is generally becoming more accustomed to these types of arrangements as these are the types of things that are needed in order to co-exist in a vibrant urban setting.”
70 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 71
2013 Virginia Legal Elite
Congratulations
to the
Christian & Barton
attorneys selected
as part of Virginia’s
Legal Elite 2013.
Peter E. Broadbent Jr.
Augustus C. Epps Jr.
Christopher M. Gill
W. David Harless
R. Braxton Hill IV
Jonathan M. Joseph
Jennifer M. McLemore
Craig T. Merritt
Michael D. Mueller
Michael W. Smith
E. Ford Stephens
Henry I. Willett III
www.cblaw.com Richmond, Virginia
James Lewis Johnson Wharton Aldhizer & Weaver PLCHarrisonburg
James Webb Jones Poole Mahoney PCChesapeake
Donnie Brennen Keene McGuireWoods LLPRichmond
Neil Stanton Kessler Troutman Sanders LLPRichmond
Charles Edwards Land Kaufman & Canoles PCNorfolk
Daniel Frank Layman Jr.Daniel F. Layman, Jr., Attorney at LawRoanoke
Benjamin Douglas Leigh Atwill, Troxell & Leigh PCLeesburg
James B. Lonergan Pender & CowardVirginia Beach
Valerie Wagner Long Williams MullenCharlottesville
Brian Richard Marron Spotts Fain PCRichmond
John Fitzgerald McManus Hirschler FleischerFredericksburg
C. Grice McMullan Jr.ThompsonMcMullan PCRichmond
John M. Mercer Williams MullenRichmond
Adam Russell Nelson ThompsonMcMullan PCRichmond
Michael Richard Newby Hancock, Daniel, Johnson & Nagle PCGlen Allen
RJ Nutter IITroutman Sanders LLPVirginia Beach
Carrie Hallberg O’Malley Hirschler FleischerFredericksburg
G. Michael Pace Jr.Gentry Locke Rakes & MooreRoanoke
Thomas Tinsley Palmer Woods Rogers PLCRoanoke
Charles Wayne Payne Jr.Hirschler FleischerFredericksburg
Susan M. Pesner Pesner Kawamoto PLCMcLean
Charles H. Rothenberg Hirschler FleischerRichmond
Lawrence Mason Schonberger Sevila, Saunders, Huddleston & White PCLeesburg
Conway H. Sheild IIIJones, Blechman, Woltz & Kelly PCNewport News
James Rawleigh Simmons Dunton, Simmons & Dunton LLPWhite Stone
Jeffrey Manss Stedfast Kaufman & Canoles PCNorfolk
Howard Rufus Sykes Jr.Sykes, Bourdon, Ahern & Levy PCVirginia Beach
James W. Theobold Hirschler FleischerRichmond
James David Thornton Thornton & Associates PLCGlen Allen
Timothy Old Trant IIKaufman & Canoles PCNewport News
Lucia Anna Trigiani MercerTrigianiAlexandria
Susan Truskey Chadwick, Washington, Moriarity, Elmore & Bunn PCFairfax
William Arthur Walsh Jr.Hunton & WilliamsRichmond
Jay M. Weinberg Hirschler FleischerRichmond
Jay F. Wilks Wilks, Alper & Harwood PCNorfolk
TAXES/ESTATES/TRUSTS/ELDER LAWMaureen C. Ackerly Armstrong Bristow Farley & Schwarzschild PLCRichmond
Farhad Aghdami Williams MullenRichmond
Hugh Taylor Antrim ThompsonMcMullan PCRichmond
Jean Galloway Ball Jean Galloway Ball PLCFairfax
Dennis Irl Belcher McGuireWoods LLPRichmond
Craig Dennis Bell McGuireWoods LLPRichmond
Fred J. Bernhardt Jr.FloranceGordonBrown PCRichmond
David J. Brewer Odin, Feldman & Pittleman PCReston
Neal Paul Brodsky LeClairRyanNorfolk
L. Ashley Brooks Jones, Jones & Dunn PLCChesapeake
James William C. Canup Kaufman & Canoles PCNorfolk
John B. Catlett Jr.Sands Anderson PCRichmond
Deborah Donick Cochran Cochran & Owen LLCVienna
James P. Cox IIIMichieHamlettCharlottesville
Cary Z. Cucinelli The Ruddy Law FirmFairfax
C. Richard Davis Tax Counsel Ltd.Glen Allen
Gregory Reid Davis Kaufman & Canoles PCWilliamsburg
Allan G. Donn Willcox & Savage PCNorfolk
Matthew M. Farley Armstrong Bristow Farley & Schwarzschild PLCRichmond
72 DECEMBER 2013 Photo by Mark Rhodes
TAXES/ESTATES/ TRUSTS/ELDER LAW
Neil L. RoseWillcox & Savage PC
Virginia Beach
Title: MemberOther legal specialties: Corporate, partnerships, LLCs, real estateBirthplace: Washington, D.C.Education: Bachelor’s degree, University of Virginia, McIntire School of Commerce, (with distinction, Beta Gamma Sigma); University of Virginia School of Law, law degree; Georgetown University Law Center, master of laws in taxation.Spouse: Regina (Gina) H. RoseChildren: Frederick, Ryan and Jonathan Hobbies or pastimes: Charity work (including Guiding Eyes for the Blind); Norfolk Kiwanis member ; president of the Virginia Beach Education FoundationFirst job as a lawyer: Special Honors Attorney, U.S. Department of the TreasuryFan of: University of Virginia CavaliersRecently read book: Currently reading Larry Sabato’s “The Kennedy Half Century”Career mentors: Former U.Va. law professor Hank Gutman, Howard Spainhour, former partner Anne Shumadine
What needs to be changed in the federal tax code?“We need to reduce the number of tax expenditures (tax credits/deductions) so we can raise the needed funds at a lower rate. The tax code should be simplified and focus on raising revenue at lower rates — not federal spending. The current approach is an inefficient way for Congress to spend money. A consumption tax with appropriate credits would more efficiently raise the funds needed to run our government.”
Should the federal estate tax be abolished?“Although many people want to eliminate the federal estate tax, death is a good time to impose a tax. The real question is who should pay the tax and at what rate? The current exemption, slated to increase to $5,340,000 in January, means few Americans pay this confiscatory 40 percent tax. A very low estate tax rate applicable to more estates would be better policy — perhaps a rate of 1 to 5 percent beginning with estates of $500,000.”
72 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 73
2013 Virginia Legal Elite
Thank You... for selecting me years in a row!
LUIS A. ABREU, Attorney at LawPractice Areas: Family Law, Civil Litigation,
Creditors Rights, Business Law
P.O. Box 1598, 626 N. Ridge St., Danville, VA 24543Tel: 434-791-4677 • Fax: 434-791-4676
y12John Warren Flora Lenhart Obenshain PCHarrisonburg
William S. Fralin The Estate Planning & Elder Law Firm PCArlington
Robert L. Freed Freed & Shepherd PCRichmond
William Andrew Galanko Norfolk Southern Corp.Norfolk
James Conrad Garcia Williams MullenRichmond
J. William Gray Jr.Hunton & WilliamsRichmond
Timothy Howard Guare Timothy H. Guare PLCRichmond
Kristen Frances Hager McGuireWoods LLPRichmond
Frances H. Hampton Poole Mahoney PCVirginia Beach
Philip Lewelling Hatchett Kaufman & Canoles PCNewport News
Anne Marie Heishman Dingman Labowitz PCAlexandria
Patrick Wesley Herman Vandeventer Black LLPNorfolk
R. Braxton Hill IIIKaufman & Canoles PCNorfolk
A. Everett Hoeg IIIYates Campbell & Hoeg LLPFairfax
Andrew H. Hook Hook Law Center PCVirginia Beach
Paul Gerard Izzo ThompsonMcMullan PCRichmond
David Kamer Kaufman & Canoles PCNorfolk
Kirkland M. Kelley Kaufman & Canoles PCNorfolk
Julie A. King Julie A. King PLCCharlottesville
David Scott Lionberger Hirschler FleischerRichmond
R. Shawn Majette ThompsonMcMullan PCRichmond
Donald O. Manning Manning & Murray PCArlington
74 DECEMBER 2013 Photo by Mark Rhodes
YOUNG LAWYERS
Gretchen M. OstroffVandeventer Black LLP
Norfolk
Title: Senior associateLegal specialties: Construction law and litigation; professional liability defense of architects and engineersBirthplace: Wiesbaden, GermanyEducation: Virginia Tech, bachelor’s degree in civil and environmental engineering; Uni-versity of Richmond, law degree (cum laude)Spouse: Ethan Children: Cecelia (8 months)Hobbies or pastimes: “Going to concerts; Pilates; taking our daughter, Cece, and dog, Fletch, on long walks.”First job as a lawyer: “I’ve been with my current firm since graduating from law school.”Fan of: Live music Favorite vacation spot: “Where we honey-mooned: Biras Creek, British Virgin Islands.” Recently read book: “The Black Swan: The Impact of the Highly Improbable” by Nassim Nicholas Taleb Career mentors: Bill Franczek, Stephan Andrews, Patrick Genzler and Ethan Ostroff
Why did you decide to become a lawyer? “After college, I worked as a civil engineer on a complex bridge construction project. When construction claims inevitably started rolling in, I assisted with the investigation and infor mation gathering to respond to them, which eventually inspired me to apply to law school. Now, in light of my former life as an engineer, I understand the challenges that arise on construction projects and can relate to what my clients experience. I find helping design professionals avoid and handle claims particularly rewarding.”
What advice do you have for students who will graduate this spring from law school? “Although salary is important — particularly in this economy — don’t overlook the intan-gibles that accompany any job, such as the opportunity to do meaningful work and the culture of the firm or office. You will likely spend the majority of your next 30 years at work — make sure you like the people you will be working with, because you will see them more than you see your family.”
74 DECEMBER 2013 Photo by Mark Rhodes
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 75
2013 Virginia Legal Elite
Congratulations to our 2013 Legal Elite!
Established in 1889, Pender & Coward continues to provide quality legal services to individuals, governmental entities and businesses of all sizes.
www.pendercoward.com 757-490-3000
David ArnoldCivil Litigation
Mark BaumgartnerBusiness Law
Richard Garriott, Jr.Family/Domestic Relations
D. Rossen S. GreeneYoung Lawyer (under 40)
William LascaraConstruction
James LonerganReal Estate/Land Use
Jack Rephan Construction
E. Diane ThompsonTaxes/Estates/Trusts/Elder Law
Autumn D. McCullogh McCandlish & Lillard PCFairfax
Molly Delea McEvoy Armstrong Bristow Farley & Schwarzschild PLCRichmond
Bruce Lee Mertens Sands Anderson PCRichmond
John Thomas Midgett Midgett & Preti PCVirginia Beach
Richelle D. Moore Parrish, Houck & Snead PLCFredericksburg
Elizabeth Chichester Morrogh Blankingship & Keith PCFairfax
Amy Grayson Pesesky Amy G. Pesesky PLCNorfolk
Nancy Newton Rogers Virginia Estate & Trust Law PLCRichmond
Neil Leslie Rose Willcox & Savage PCVirginia Beach
William L. S. Rowe Hunton & WilliamsRichmond
Dexter C. Rumsey IIIRumsey & Bugg PCIrvington
Gregory J. Rupert Reed Smith LLPFalls Church
Daniel Lindsay Russell Norfolk Southern Corp.Norfolk
Harry Peter Sakellaris Clement & WheatleyDanville
Alexander Irvine Saunders Woods Rogers PLCRoanoke
Jennifer Lee Schooley Schooley Law Firm PLCRichmond
Donald E. Showalter Wharton Aldhizer & Weaver PLCHarrisonburg
Eugene Sim Sim Legal PCFairfax
Frank A. Thomas IIIFrank A. Thomas III PLCOrange
E. Diane Thompson Pender & CowardSuffolk
John T. Tompkins IIIJones, Blechman, Woltz & Kelly PCNewport News
Charles E. Troland Glenn Feldmann Darby & GoodlatteRoanoke
Elizabeth Munro von Keller von Keller Law PCManassas
Eric Chen Chung Wang Reed Smith LLPFalls Church
Mark Christopher Watson Hancock, Daniel, Johnson & Nagle PCGlen Allen
Lewis Warrington Webb IIIKaufman & Canoles PCNorfolk
David William Whitehead Virginia Estate & Trust Law PLCRichmond
Darryl Duane Whitesell Edmunds & Williams PCLynchburg
Munford R. Yates Jr.Yates Campbell & Hoeg LLPFairfax
YOUNG LAWYER (UNDER 40)
Nicholas V. Albu Woods Rogers PLCCharlottesville
Rebecca Shwayder Aman Jones, Blechman, Woltz & Kelly PCNewport News
Aaron James-Birch Ambrose Kaufman & Canoles PCNorfolk
Catherine Christine Ayres Office of the Attorney GeneralRichmond
R. Penn Bain Sevila, Saunders, Huddleston & White PCLeesburg
Mollie Colleen Barton Batzli Stiles Butler PCRichmond
Patrick Dayton Blake Willcox & Savage PCNorfolk
Elaina L. Blanks-Green Norfolk Southern Corp.Norfolk
Jason Alan Botkins Litten & Sipe LLPHarrisonburg
In 1973, Tony Orlando and Dawn had the
number one song of the year. And clients
began to sing our praises.
www.t-mlaw.com804 649 7545
100 Shockoe Slip | Richmond, Virginia 23219
Our lawyers
have been a hit with
clients since our founding
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we’re not letting up now.
ThompsonMcMullan:
hip to client needs
since 1973.
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 77
Juridical Solutions PLCBank of America Building57 S. Main St., Suite 215Harrisonburg, VA 22801Tel: 1-888-392-8742Fax: 1-888-343-3804www.juridicalsolutions.com
Hon. John J. McGrath, Jr. (Ret.)Juridical Solutions PLC is proud to congratulate one of its foundingmembers, the Honorable John J. McGrath, Jr. (Ret.) for his selection as one of Virginia’s Elite providers of Alternate Dispute Resolution services.Juridical Solutions PLC is unique in that it provides ADR Servicesthroughout the Commonwealth by a Panel of Senior Professionalsconsisting exclusively of Retired Circuit Judges. Juridical Solutions PLC has panel members located throughout the Commonwealth, including the Shenandoah and New River Valleys, Lynchburg, Norfolk-Tidewater,Williamsburg-Richmond, Fredericksburg and Northern Virginia.
Norris & St. Clair, P.C.2840 S. Lynnhaven Pkwy Virginia Beach, VA, 23452Ph: 757-498-7700Fx: 757-498-7744Email: [email protected]: www.norrisstclair.com
John NorrisJohn Norris specializes in construction law, commerciallitigation and condemnation proceedings. A graduate of the Washington and Lee School of Law and the College of William and Mary, Mr. Norris has extensive experience in all types of construction disputes, having represented both owners and contractors in area State and Federal courts, as well as before mediators and arbitrators. Norris’ fi rm also handles personal injury and professional malpractice litigation.
Franklin SolutionsA Dispute Resolution Practice2450 N. Powhatan StreetArlington, Virginia 22207Phone: (703) 684-3550Fax: (703) 533-8977E-mail: [email protected]: www.franklinsolutions.net
Jeanne F. FranklinJeanne helps clients resolve specifi c disputes and address chronicconfl ict through mediation and facilitation. She provides training and consults to help groups build confl ict competence. In hercareer and volunteer activity, she has earned recognition forleadership, consensus building and growing solutions to problems.
She salutes her colleagues named in Legal Elite, and all who share a dedication to the work of confl ict resolution.
Ferguson Walton & Shansab, PLLC12007 Sunrise Valley Drive, Suite 140Reston, Virginia 20191Phone: 703-860-8520Fax: 703-860-1630E-mail: [email protected]: www.fergusonwalton.comBlog: www.vafi duciarylaw.com
Yama ShansabYama Shansab handles business, employment, estate, and trust cases. He also advises clients in business, employment, fi duciary and succession matters. He is AV-rated by Martin-dale Hubbell, a member of the VSB Professionalism Course Committee, and a Fellow of the Litigation Counsel of America. Yama authors the Virginia Fiduciary Law Blog.
CowanGates1930 Huguenot RoadPO Box 35655Richmond, Virginia 23235804.320.9100 offi ce804.320.2950 faxCowanGates.com
Melanie FriendMelanie Friend began practicing family law at CowanGates in 2007 and was named a principal at the fi rm in 2012. Friend was named a “Virginia Super Lawyers Rising Star” in 2010-2013 and was selected as the Richmond Bar Association’s 2013 Young Lawyer of the Year.
CowanGates1930 Huguenot RoadPO Box 35655Richmond, Virginia 23235804.320.9100 offi ce804.320.2950 faxCowanGates.com
Frank N. CowanFrank Cowan is a founding member and Chairman ofCowanGates, with extensive trial and litigation experienceas well as mediation and arbitration. A Fellow of the American College of Trial Lawyers, Cowan has been recognized in “The Best Lawyers in America,” “Virginia Business Legal Elite,” and “Virginia Super Lawyers,” among others.
78 DECEMBER 2013
2013 Virginia Legal Elite
Owen & Owens plc15521 Midlothian Turnpike, Suite 300Midlothian, Virginia 23113Phone: (804) 594-1911Fax: (804) 594-0455E-mail: [email protected]: www.owenowens.com
Samuel J. KaufmanSam is a founding partner and represents businesses andindividuals in general litigation, commercial litigation and realestate matters. He is immediate past-president of the University of Richmond Alumni Association and chairman of the Chester-fi eld County Economic Development Advisory Council. He has been honored as one of the “Top 40 Under 40” by Style Weekly Magazine and the National Trial Lawyers Association.
Owen & Owens plc15521 Midlothian Turnpike, Suite 300Midlothian, Virginia 23113Phone: (804) 594-1911Fax: (804) 594-0455E-mail: [email protected]: www.owenowens.com
Mary Burkey OwensMary is a founding partner and focuses her practice on family law,collaborative law and mediation. Mary is a founding member of the Metro Richmond Family Law Bar and served on the VSB Disciplin-ary Committee and Professionalism Course Faculty. She has been named to Virginia Super Lawyers since 2006. Virginia Lawyers Media selected Mary for “Infl uential Women of Virginia” in 2011. She is listed in The Best Lawyers in America in Collaborative Law: Family Law.
Boleman Law Firm, P.C.Richmond Offi ce2104 W. Laburnum Ave., Ste 201(804) 355-2057 Hampton Offi ce2 Eaton St., Ste 106(757) 825-5577 Virginia Beach Offi ce272 Bendix Rd., Ste 130(757) 313-3000
Mark Leffl erMark is Chief Counsel of Boleman Law Firm, a recognized author and speaker on consumer bankruptcy, and the fi rst debtor’s coun-sel appointed to the Board of Directors of National Association of Chapter 13 Trustees Academy. He is a member of the Board of Governors of the Va. State Bar’s Bankruptcy Section and has been named “Virginia’s Legal Elite” in bankruptcy since 2007.
Allen, Allen, Allen,& AllenOffi ces in Richmond & Short Pump Phone: [email protected]
James Mick KesselJamie Kessel has dedicated his career to fi ghting for the rights of Virginians who have been seriously injured or killed because of the negligence of others. He has ob-tained an “AV Preeminent” rating from Martindale Hubbell and has been selected a Rising Star by Virginia Super Lawyers since 2010.
Jw
Rebecca Catharine Bowen ThompsonMcMullan PCRichmond
Amber K. Burke Odin, Feldman & Pittleman PCReston
Adam Casagrande Williams MullenRichmond
Helenanne Connolly Reed Smith LLPFalls Church
Rodney S. Dillman Hancock, Daniel, Johnson & Nagle PCVirginia Beach
Ashley Catherine Dobbin Herbert & Satterwhite PCRichmond
Lauren Morgan Ellerman Frith & Ellerman Law FirmRoanoke
Ryan Gregory Ferguson Kaufman & Canoles PCNorfolk
Brent R. Gary Reed Smith LLPFalls Church
Jeffrey Peter Geiger Hirschler FleischerRichmond
D. Rossen S. Greene Pender & CowardSuffolk
Elizabeth Leigh Gunn Sands Anderson PCRichmond
Lisa Joan Hedrick Hirschler FleischerRichmond
Jeffrey Alexander Hord Albo & Oblon, LLPArlington
Lindsay M. Jefferies The Havrilak Law Firm PCFairfax
Harold Edward Johnson Williams MullenRichmond
Derek E. Karchner McCandlish & Lillard PCFairfax
James Mick “Jamie” Kessel Allen, Allen, Allen & AllenRichmond
Michael K. Kim Stites & HarbisonAlexandria
Michael E. Lacy Troutman Sanders LLPRichmond
Lisa Hornberger Leiner Harman Claytor Corrigan & WellmanRichmond
Lee Garland Lester Williams MullenRichmond
Margaret M. Marks Odin, Feldman & Pittleman PCReston
Jennifer D. Mullen Roth Doner Jackson Gibbons Condlin PLCRichmond
2013 Virginia Legal Elite
www.VirginiaBusiness.com VIRGINIA BUSINESS 79
Walton & Adams pc1925 Isaac Newton Square #250Reston, Virginia 20190Phone: 703-790-8000Fax: 703-790-8016Email: [email protected]: www.walton-adams.com
Michael J. HolleranMike has assisted businesses and individuals for over 25 years. He has vast experience in the buying and selling ofbusinesses, commercial leases, loan fi nancing, commerciallitigation, and creditor’s rights. He is active in community affairs and serves as a member and Past President of the McLean Rotary Club. He is also a co-author of West’s BankruptcyCode Manual.
Ventker & Warman, pllc101 West Main Street, Suite 810Norfolk, VA 23510phone: 757.625.1192direct: 757.625.1476cell: 757.560.5054email: [email protected]: www.ventkerlaw.com
David N. VentkerDave Ventker, a Proctor in Admiralty, has been handling commercial and maritime disputes for nearly 25 years. Practicing in Virginia and North Carolina, he has been rated AV and “Preeminent” by his peers for more than ten years, placing him among the top 5% of all attorneys.
DiMuroGinsberg, P.C.1101 King Street, Suite 610Alexandria, VA 22314Tel: (703) 684-4333Fax: (703) 548-3181E-mail: [email protected]
Bernard J. DiMuroBen is a well known litigator, having tried hundreds of cases involvingcomplex corporate and commercial matters, business torts andemployment disputes. He is widely recognized for his experienceguiding clients through the unusually effi cient Federal Court inAlexandria, known as “The Rocket Docket.” Ben is also qualifi ed asan Expert Witness in various courts in the arena of Business andProfessional Ethics and Professional Responsibility. Ben is aformer Virginia State Bar President and an inductee to The Fellows of the American Bar and The Virginia Law Foundation.
Christy L. Murphy Kaufman & Canoles PCNorfolk
Jon Allon Nichols Jr.Harman Claytor Corrigan & WellmanRichmond
Ethan Geoffrey Ostroff Troutman Sanders LLPVirginia Beach
Gretchen M. Ostroff Vandeventer Black LLPNorfolk
William Daniel Prince IVThompsonMcMullan PCRichmond
Laurie Lea Proctor Blankingship & Keith PCFairfax
J. Bradley Reaves ReavesColey PLLCChesapeake
S. Mohsin Reza Troutman Sanders LLPTysons Corner
Lynne Cathryn Rhode Williams MullenRichmond
Rhodes Beahm Ritenour LeClairRyanRichmond
Jodi Beth Simopoulos Hancock, Daniel, Johnson & Nagle PCGlen Allen
W. Ryan Snow Crenshaw, Ware & Martin PLCNorfolk
Nathaniel Lyle Story Hirschler FleischerRichmond
Thomas Strelka Strickland, Diviney, & StrelkaRoanoke
John “Mac” McRae Stuckey IIICarMax Auto Superstores Inc.Richmond
Elizabeth Kalocay Ufkes Swartz, Taliaferro, Swartz & Goodove PCNorfolk
Travis Vance Wharton Aldhizer & Weaver PLCHarrisonburg
Kevin Andrew White Kaufman & Canoles PCRichmond
Henry Irving Willett IIIChristian & Barton LLPRichmond
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Assessing the dangerMany companies facing broader risks than before
by Joan Tupponce
Organizers of the Dominion Riv-errock concert in Richmond in May found they had more than
crowds and weather to contend with after someone threw a bottle at reggae singer Frederick “Toots” Hibbert, injur-ing the 70-year-old performer. In June, Hibbert’s attorneys filed a lawsuit in Richmond Circuit Court asking for $1 million in compensatory damages and $20 million in punitive damages.
This type of incident is just one of the risks that companies must consider when getting commercial liability insur-ance for an event. “The safest way to protect yourself is to know exactly what it is that you are insuring and who will be coming,” says Chris Burns, CEO of USI Insurance Services in Norfolk. “Typically people don’t think it through.”
Companies hosting events need to think about issues ranging from security
risks to vendors. “You need to know who the vendors are and if they are insured. A lot of problems we see come from unin-sured vendors,” Burns says, adding that alcoholic beverages are served at many events. “The key focus from the client and agent standpoint is making sure we know who is taking the liquor liability piece.”
R.C. Moore, chairman of TB&R insurance in Richmond, works with a
Business Trends: Commercial Insurance
Chris Burns says companies holding
events need to know “exactly what it is
that you are insuring and who will be
coming.”
82 DECEMBER 2013
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client that holds one of the largest events in Virginia. The organization’s main con-cern was security, a growing risk for large event organizers since the April bombing at the Boston Marathon. “They wanted to make sure they had adequate coverage,” Moore says, adding that the insurance industry doesn’t currently have a specific product for an occurrence such as the bombing in Boston.
Insurance companies typically use traditional liability coverage in combina-tion with federally backed terrorism cov-erage for events that draw large crowds. “The [terrorism] coverage is triggered by the secretary of state,” Moore says. “That allows the insurance companies to be reimbursed for acts of terrorism. That, however, was not used in Boston.”
Coverage for events is just one of the topics trending in commercial insurance today. “The big-gest overall trend is that the risks our clients are facing are much broader than they have been tra-
ditionally,” says Chris Schutt, managing
director and Richmond office head for Marsh Inc., an international insurance brokerage and risk management com-pany. “Companies have to identify their risks and establish risk management programs.”
One area of broader risk is cyber pri-vacy liability, which poses a significant risk to all firms. The coverage protects a company’s reputation as well as any type of data breach. “Many of the standard insurance policies were not designed to address these types of risks,” Schutt says. “Businesses should identify what type of cyber or privacy risks they have.”
This type of cover-age is “one of the most important” coverages to have, says John Stanchina, president of Rutherfoord, a Marsh & McLennan Agency company with offices in Roanoke, Rich-
mond, Alexandria and Hampton Roads. Over the last 10 years the coverage has improved. “The pricing has come down,” Stanchina says.
Other industry trends include cov-
erage related to the weather and the economy. The slow economic recovery is generating more activity around the trade credit market. Many companies have to write off account receivables because they are having trouble col-lecting customer payments. “The trade credit market can insure against that credit risk,” Schutt says. “Accounts receivable are a key cash-flow compo-nent that can be protected in a simple and cost-effective manner with a well-designed trade credit program that helps protect against unexpected bad debts, helping to preserve cash flow and pro-tect profitability.”
Regarding weather, the insurance industry is seeing more government involvement in handling claims after an event such as Superstorm Sandy, which devastated the New York and New Jersey coastline in October 2012. “The govern-ment is getting involved more and dic-tating how claims will be handled,” says Burns. “In New York and New Jersey the government had some stringent stan-dards as to how carriers were to handle claims. We hadn’t seen that before.”
Stanchina
Schutt
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RThe damage from Sandy that
occurred in Virginia is not being adjusted as quickly and efficiently as New York and New Jersey “because the government was dictating how some of the claims would be handled,” Burns says. “That is a huge challenge from the carrier perspective for the industry if government is going to dictate how deductibles will be administered.”
Insuring coastal property is always a challenge. In the past, insurance car-riers have looked at how far a business is from the bay or the ocean. Now they are adding distances from major and small tributaries as well as rivers and fingers of rivers. “It’s getting elongated as to what is coastal property,” Burns says. “They are doing a remapping of flood zones in a lot of areas.”
Businesses involved in the marine industry also are dealing with the after-math of the Costa Concordia cruise ship disaster in Italy. The Concordia was the largest marine loss of all time with claims exceeding $1 billion. Thirty-two people lost their lives in the disaster. Some lawsuits are still pending.
“That had an effect across all the carriers and reinsurance in the marine world,” says Burns. ”You will probably see additional rate increases in Janu-ary that could cause a stiffening in the marine marketplace.”
Cargo is also becoming an issue for businesses that want to insure goods because of government sanctions on certain countries such as Iran. “The carrier won’t pay that claim based on sanctions,” Burns says. “You have to make sure you know where your con-tainers are going.”
Because of these growing risks, Stanchina believes that more and more businesses are moving from the tradi-tional insurance marketplace to cap-tives, a form of self-insurance.
“This is less about year-to-year rate [changes] and more about control, flexibility and softening the curves,” Stanchina says. “In many cases a captive may not have the least expensive pre-mium in a very soft market, but it will have the least expensive total cost of risk in most cases. It will eliminate the highs of a hard market. It takes some of the roller coaster effect out of the insurance marketplace.”
84 DECEMBER 2013
Commercial Insurance
Markel expands its scopeAlterra deal extends its presence in reinsurance and the global marketplaceby Joan Tupponce
A nthony Markel sees the recent acquisition of Bermuda-based Alterra
Capital Holdings Ltd. as a good fit for Markel Corp. “Alterra’s book of reinsurance business and its technical talent were intriguing,” says Markel who is vice chairman of the Hen-rico County-based company founded by his grandfather. “They were in a space we didn’t occupy.”
The $3.3 billion Alterra deal, completed in May, was the largest in the company’s history. “We paid a fair price for it. We didn’t steal it,” Markel says. “We did a thorough due diligence.”
Mark Dwelle, director of insurance equity research at RBC Capital Markets in
Richmond, believes the deal broadens the scope of Markel Corp. “It gives them a more global plat-form and deepens their market share in U.S. markets where they had a presence in U.S. specialty insurance,” he says. “It’s fair to say they added a lot of good people and a num-ber of new products. They extended their reach in the U.S. and London.”
Markel Corp. began making acquisitions in
1980 when the company was valued at $7.5 million. Today’s value is more than $7 billion. The Alterra acquisition helps strengthen and diversify the company’s specialty insurance business, officials say. The deal has spawned
two new businesses: Markel Global Reinsur-ance and Markel Global Insurance, which handles large commercial accounts.
With the exception of a few products such as marine coverage, Markel Corp. has “historically stayed with small to medium accounts,” Markel says.
Alterra’s large accounts, which included Fortune 1000 companies, made it very attractive to Markel Corp. “We were com-fortable with Alterra’s toehold and strength,” Markel says. “It had some real meat on the bones and talent.”
Before the Alterra deal, Markel Corp. also only had a small book of reinsurance that it inherited in 2000 after acquiring Terra Nova Holdings Ltd. for more than $600 million. “That was a major deal for us at that time,” Markel says. After the acquisition, Terra Nova was rebranded as Markel International.
The Terra Nova deal also gave Markel
New leader at Scott Insurance Walker Sydnor retiring after leading company for 27 years
L eadership is changing at one of Virginia major insurance broker-ages.
Walker Sydnor, the president of Lynchburg-based Scott Insurance, will re-tire at the end of the year after leading the company for 27 years.
He will be succeeded on Jan. 1 by Hutch Mauck, who has headed the fi rm’s Richmond offi ce since opening it in 1991. The transition concludes a two-year succession process.
Under Mauck’s direction, the Rich-mond offi ce has become the company’s highest-producing in Virginia. He has served on the Scott board since 2003 and on the exec utive committee since 2009.
Sydnor has worked for the com-pany for 37 years. Under his tenure as president, Scott Insurance, a regional company in 1986, grew to become the second-largest independently owned
insurance agency/broker in the Southeast and the largest in Virginia, North Carolina and Tennessee.
During the past 27 years, the company has opened six offi ces in three states, expanding into larger commercial mar-kets by developing new services and creating an employee stock ownership plan (ESOP), which has led to a 97 percent em-ployee retention rate.
Th e number of company employees has grown from 30 to more than 240 since 1986.
Founded in 1864, Scott Insurance provides risk services, benefi t services, bonds, and fi nancial management. In Vir-ginia, the company has offi ces in Lynch-burg, Roanoke and Richmond.
Sydnor
Corp. entry to the international marketplace. Terra Nova had branches in the United King-dom and operated in other foreign countries.
The Alterra acquisition expands Markel’s international presence, bringing into the fold three offices in South America and operations in the Far East in addition to its headquarters in Bermuda.
With the new addition, Markel Corp. has approximately $23 billion in combined assets and $6 billion in shareholders’ equity. “Historically Markel usually takes every acquisition and makes it better over some period of time,” Dwelle says. “Sometimes they work quickly; sometimes it takes longer. The first few quarters are the slowest period for earnings and benefits of the deal.”
Markel Corp. reported diluted earnings per share of $2.24 for the second quarter ended June, down from $8.42 in the same quarter last year. Those results, the first since the Alterra deal was finalized, reflected transactions costs and acquisition-related expenses. Operating revenues rose 48.8 per-cent to $1.03 billion.
“My initial thought is that it’s a good acquisition. Things are going as planned. Time will tell, though,” says Robert Farnam, senior vice president at Keefe, Bruyette & Woods in New York. “It’s fairly early.”
Mauck
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www.VirginiaBusiness.com VIRGINIA BUSINESS 87Photo courtesy Dulles Corridor Metrorail Project
T he recession, combined with airline mergers and consolidation, has jolted airports in Virginia and nationwide.
A study released in May by the MIT International Center for Air Transportation found that the nation’s 29 largest airports lost 8.8 percent of their scheduled domestic flights from 2007 to 2012.
Smaller airports were hit harder, losing 21.3 percent of their flights.
One outcome is that Virginia’s airports have become more competitive. They’re improving the passenger experience and innovating at every opportunity.
From small airports to large, change is underway, with projects costing a total of more than $50 million. Here’s a rundown on the runway:
Shenandoah Valley Regional At Shenandoah Valley Regional Air-
port in Weyers Cave, the smallest of the state’s nine commercial airports, a recent $2.2 million terminal expansion nearly doubled the preflight waiting area, and the lobby has been reoriented to face the scenic Blue Ridge Mountains.
The airport’s improvements include a new café, Wi-Fi service and places to power-up technology. It also added 100 parking spaces, bringing its total to more than 600.
The changes have had an effect. “We have increased [passenger traffic] every year since 2008,” says Greg Campbell, the air-port’s executive director. “The year to date, we’re up 16 percent.”
Campbell believes that prospective passengers have increasingly seen the value of using the airport. He ticks off some advantages: free parking, shorter lines, less driving and good connections.
Through Silver Airways, operating as United Express, airport passengers fly to Washington Dulles International Airport, where they can connect to hundreds of domestic and international destinations.
The airport lost Frontier Airlines, which flew nonstop flights to Orlando, Fla., three times a week.
Washington Dulles Internationaland Reagan National
Washington Dulles International Airport, straddling the line between Loud-oun and Fairfax counties, is a key hub for airports throughout Virginia, with connec-tions to far flung parts of the world.
Now, it’s awaiting a connection of its own — to the Silver Line, also called the Dulles Corridor Metrorail Project.
A primary goal of the 23-mile exten-sion of the Washington Metro Rail System is linking the capital by rail to Dulles, along with the so-called “edge cities” in the region. Another goal is to make Tysons Corner, one of the region’s biggest employment hubs, accessible by train.
The Silver Line is one of the largest transportation projects in the country and is expected to cost nearly $6 billion when finished.
Phase I of the project is nearly com-plete, and Phase 2 is under construction. The entire project is expected to be wrapped up and running by the end of the decade.
The Silver Line is also expected to be an economic boon for Fairfax and Loudoun counties, with new development blossom-ing along its path.
If food and shopping are on your mind when you fly out of Dulles or Reagan, the airports have good news for you.
They recently began their most ambi-tious food and retail makeover in two decades. Over the next few years, nearly all of the airports’ concessions will be replaced or renovated.
“One of our goals will be to bring local iconic brands into the airports,” says Rob Yingling, a spokesman for the Metropolitan Washington Airports Authority, which oper-ates Dulles and Reagan National airports.
Dulles has experienced a steady increase of international service every year since 2003. For example, the airport reported in early 2013 that Dulles had become the second largest gateway to the Middle East.
Reagan continues to have strong demand for domestic service. It had its most traffic ever in 2012.
Business Trends: Airports
No flight of fancyConsolidating airline industry makes airports more competitiveby Gary Robertson
A primary goal of a 23-mile extension of the Washington Metro Rail System
is linking the capital by rail to Washington
Dulles International Airport.
88 DECEMBER 2013
Airports
Photo by Mark Rhodes
Roanoke Regional After spending millions of dollars on
airfield improvements, Roanoke Regional Airport officials decided two years ago that its terminal, built in 1989, needed a facelift.
“We had sort of made a promise to the community,” says executive director Jacque-line Shuck. “We want them to be proud of what we present. It’s our community’s front door, especially for business.”
The airport accomplished the re-do in three stages. The first phase, which has cost about $4 million, focused on the concourse.
New escalators have been installed, car-peting has been replaced by high-grade tile, six restrooms have been rebuilt, and signage has been modernized. Finally, colors have been changed from blue and gray to earth tones with a splash of red. “It’s changed the whole look,” Shuck says.
The second phase of the overhaul will involve development of a new concession area, while the third phase will tackle the ticket and baggage claim areas.
Shuck says an airport of Roanoke’s size can’t always compete with larger airports on ticket prices, but it can offer travelers conve-nience and the personal attention that they might not receive elsewhere.
A new role the airport has taken on is advocate for passengers, Shuck says.
If flights are continually late on a cer-tain airline, “We try to get to the bottom of it,” she says.
Allegiant Air’s service from Roanoke to two Florida destinations — St. Petersburg
and Orlando — has become a magnet for regional passengers.
“We see people coming from an hour and a half away,” Shuck says.
Allegiant is one of four airlines that serve Roanoke.
Lynchburg Regional Lynchburg Regional Airport is differ-
ent. “We’re the only commercial airport in Virginia owned by a local government,” says Mark Courtney, the airport’s manager.
It’s also very busy because of one of its neighbors, Liberty University.
During the past decade, Liberty’s School of Aeronautics has grown from four students to more than four hundred in its FAA-certi-fied aviation program.
The university says it has been approved to train and certify everyone from private pilots to airline transport pilots. That means a lot of flying at the local airport.
Commercially, the airport is served by U.S. Airways with connections to Char-lotte, N.C.
Lynchburg Regional recently received a $4.1 million grant from the Federal Aviation Administration for rehabilitation, relocation and expansion for its taxiways and aprons.
It is part of a $5.8 million project that will also include reconstruction and realign-ment of several taxiways that serve general aviation.
Earlier this year, Lynchburg was told that it might lose its control tower, unless it could prove that it fulfills a compelling
national interest.So far, the tower is still in operation. But
Courtney says he doesn’t know what’s ahead.
Charlottesville Albemarle Melinda Crawford, executive director
of the Charlottesville Albemarle Airport, says one of the reasons she came to the airport in 2012 was the strong community support it enjoys.
She had been director of the Pensacola International Airport in Florida, which was named Florida’s commercial airport of the year in 2011.
“Any airport is the best economic engine any community could have,” she says. “It virtually operates without tax dol-lars, and it serves as the first impression of the community.”
Since 2009, the Charlottesville Albe-marle Airport has enjoyed a 34 percent increase in passenger traffic, soaring from 347,000 passengers in fiscal 2009 to more than 464,000 in 2012.
Crawford says the airport is in the final stages of completing an 800-foot runway extension in the works for several years.
The airport also is redesigning its termi-nal to include upgrades ranging from family restrooms and mothers’ nursing stations to a second security screening lane and an in-line screening machine to move passengers and their baggage through more quickly.
Total cost of the project is estimated at $3 million to $4 million.
“We’re making sure we have good ame-nities, and we’re making sure the public is aware of the amenities,” Crawford said.
Norfolk International Norfolk International Airport is adja-
cent to the Norfolk Botanical Garden, and the airport plays on that theme, calling the main lobby of its departure terminal, “Garden Square.”
Soon, the lobby will have a much more gardenlike setting, with a profusion of natural sunlight.
Skylights are being installed in the ceiling as part of more than $20 million in airport improvements.
Lobby improvements will include the replacement of four escalators that carry pas-sengers from the first-level ticketing area to the second-level main lobby.
New carpet and hard-surface terrazzo flooring also will be installed, as well as addi-tional plantings and furniture, and areas for
Melinda Crawford says Charlottesville Albemarle Airport saw passenger traffi c
rise 34 percent from 2009 through 2012.
www.VirginiaBusiness.com VIRGINIA BUSINESS 89
Airports
Rendering courtesy Norfolk International Airport
small children. Security checkpoints will be greatly
expanded, from four to six lanes, to give pas-sengers and security personnel more room.
New and expanded restaurants, upgraded and healthier menu choices, and renovations to retail and gift shops also are in the new mix.
“You’re going to have a different air-port,” says Robert Bowen, the airport’s deputy executive director.
General aviation facilities will get upgrades, including renovation of the termi-nal and expanded public parking.
“It’s a very challenging time with the economy, but air travel is still a necessity,” Bowen says. “There’s no question some fac-tors are beyond our control. But we’re in the black, and we’ve never been in the red. We’re a very low-cost facility.”
Newport News/ Williamsburg International
In 2012, the Newport News/Wil-liamsburg International Airport lost AirTran Airways when it was acquired by Southwest Airlines.
“It accounted for 43 percent of our market share. It was a big hit for us, and we’re still recuperating,” says Jessica Whar-ton, the airport’s director of marketing and public affairs.
The airport now is served by four air-lines: Allegiant, Delta Air Lines, Frontier Airlines and US Airways, with nonstop ser-vice to Atlanta, Charlotte, Denver, Orlando and Philadelphia. The airport lost nonstop service to New York and Boston.
The airport anticipates a boost when Apple Vacations begins offering nonstop ser-vice to Cancun via Frontier Airlines. Flights will run from Feb. 8 through April 19.
Meanwhile, the airport is forging ahead with a list of improvements.
For example, an $11 million project to repave three taxiways is nearing completion, and one of its concourses is being refurbished with new skylights and flooring and a new escalator. The refurbishment is expected to cost about $4.2 million.
Richmond International Richmond International Airport cel-
ebrated the arrival of Southwest Airlines in early November.
“It’s something we’ve requested for more than 15 years,” says Troy Bell, the air-port’s director of marketing and air service
development.When Southwest serves an airport,
Bell says, it sets the bar for pricing. “When Southwest is not in the market, prices tend to be higher.”
Southwest offers daily nonstop service to Orlando, and its merger partner, AirTran, will continue nonstop service to Atlanta.
Having secured Southwest, the airport now has trained its sights to the West.
Using a $750,000 federal grant and $150,000 in local contributions, it plans to gain more access to Western markets.
The money will offset revenue losses
for airlines that establish Western routes to preferred destinations.
Currently, airport travelers have non-stop Western service to only Dallas, Hous-ton and Minneapolis.
Richmond International suffered a set-back in 2010 when discount airline JetBlue ended its popular service to New York. Since then, Richmond-to-New York fares have soared.
“There’s been a 700 percent increase in walkup fares [to New York] since then,” Bell says, reflecting how quickly things can change in the airline industry.
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At Norfolk International Airport, the new main lobby features 10,000 square feet, skylights,
terrazzo fl ooring, new furnishings and planters.
90 DECEMBER 2013
C O M M E R C I A L R E A L E S T A T E
<< Commercial Real Estate
Photo by Mark Rhodes
An appetite for growth Retail activity picks up in Virginia with a push from grocers and restaurants.
by M.J. McAteer
V irginians do not live by bread alone. They live on sub sand-wiches, ribs, doughnuts and
frozen yogurt. When they opt for slow food, they want a buffet of grocery shop-ping options.
Restaurant and grocery options are expanding in Virginia as the retail devel-opment market continues to recover. While some major retailers, including Sears and JCPenney, are struggling, restaurant chains, fast-food outlets and major grocers are acting as anchors for small- and large-scale developments.
As is the case across the nation, renovation is more prevalent than new construction, according to Jesse Tron of the International Council of Shopping Centers. That means vacant space left
over from leaner economic times is slowly being absorbed, so better times should lie ahead.
“We’re seeing a big difference,” says Brett Womack McNamee of Divaris Real Estate Inc.’s Richmond office. “Develop-ments that were in the pipeline are start-ing. It’s not crazy, but it’s almost back to normal.”
In Richmond, Cushman & Wakefield|Thalhimer reports that the retail vacancy rate went from 7 percent in the second quarter to 6.8 percent in the third, with rental rates rising from $13.40 to $13.61. The biggest project under construction in the capital area: A Kroger mega store — expected to come in at more than 120,000 square feet — at Staples Mill Marketplace in Henrico County.
In Northern Virginia, Costar, a commercial real estate information com-pany, reports that the retail vacancy rate dropped from 4.9 percent in the second quarter of 2013 to 4.6 percent in the third, with average rental rates rising slightly, from $23.55 to $23.78. The largest delivery of new retail space there: a 143,416-square-foot Costco in Southeast Fairfax.
The story repeats throughout the state. Wegman’s, Martin’s, Whole Foods, Harris Teeter, Fresh Market and Wal-Mart are either establishing a presence in Virginia submarkets or expanding the number of outlets. Restaurant and fast-food chains, including Zoe’s Kitchen, Panda Express, Chipotle, Potbelly, Noodles Express, Five Guys, Skinny Dip,
Kroger opened a new megastore in Virginia Beach last summer
and has another one under construction in
Henrico County.
www.VirginiaBusiness.com VIRGINIA BUSINESS 91
C O M M E R C I A L R E A L E S T A T E
Commercial Real Estate >>
Photo by Mark Rhodes
sweetFrog, Café Rio and Chili’s also are proliferating.
Another trend: many of Virginia’s major malls, including Potomac Mills in Woodbridge, recently have undergone major updates, so expect some new looks and tenants during the holiday shopping season.
In brief, here’s a look at the major activity in Virginia’s retail submarkets.
Central VirginiaWhen the economy took a hit in
2009, retail in Central Virginia didn’t feel as much of an impact as other areas, says John Nielsen of Cushman & Wakefield|Thalhimer. “There was no bubble to pop. We were never oversatu-rated,” he says.
The biggest new grocery store devel-opment in Charlottesville is — no sur-prise — a Wegman’s, which will anchor the 80-acre, Fifth Street Station shopping center near Interstate 64 just south of town. Groundbreaking is scheduled to begin late this year. Another new player in that market is California-based Trader Joe’s, an anchor at the Shops at Stone-field, a 230,569-square-foot, mixed-use development at U.S. 29 and Hydraulic Road. Trader Joe’s is open along with a boutique hotel and other retailers.
In Lynchburg, another grocer, Fresh Market, opened a store this fall. It will anchor a shopping complex projected to include Petco, Panera Bread, Mattress Warehouse and Smoothie King. Nielsen says the arrival of Fresh Market shows that additional growth is sustainable in the Ward Road corridor, which already is home to a Wal-Mart Supercenter and a Kroger’s.
Besides the Kroger’s at Staples Mill Marketplace in Henrico County, McNamee says, Martin’s will open a 74,000-square-foot grocery store at Midlo-thian Turnpike and Charter Colony Park-way in 2014.
Next year, Golfsmith, a Texas com-pany, plans to enter the Richmond market with a 24,000-square-foot store at West Broad Village, while a Dick’s Sporting Goods opened last summer at Southpark Mall in Colonial Heights.
Village Center in South Richmond is poised to make an announcement on a major new anchor, McNamee says, and construction has begun on Libbie Mill,
a mixed-use development in Henrico County that will include 160,000 square feet of office and retail space. Its first ten-ant is a new player in the market, gourmet food store Southern Season. It will open in mid-2014.
Lots of casual restaurants either are coming to town or expanding, McNamee says. They include American Tap Room (already at Willow Lawn), Firehouse Subs (already has three in Richmond), Moe’s Southwest Grill (all over the place), Which Wich (at Willow Lawn), Chuy’s (at West Broad Village), Saladworks (Short Pump)
and Travinia Italian Kitchen (not due until early 2014).
“Lenders are lending again, so fran-chises can get loans,” says Connie Nielsen of Cushman & Wakefield|Thalhimer. “Richmond is strong as a second-tier market.”
Northern VirginiaThis region is home to the most
prominent example of the trend toward mixed-use development, the reimaging of the near-derelict Springfield Mall as a Reston-style town center. The first phase of Vornado Realty Trust’s $200 million redo, which includes a health club, movie theaters and a food court, is scheduled to open next year.
Forest City Washington also hopes to go the mixed-use route pend-ing county approval for upgrading its 580,000-square-foot Ballston Commons Mall in Arlington. The redevelopment would add street-facing retail and resi-dential towers.
A 250,000-square-foot retail space called Tysons West opened at Tysons this year and is anchored by an 80,000-square-foot Wal-Mart, which includes grocery. Next year, in addition to the Costco com-ing into the area, a new Wegman’s will be the centerpiece of a 350,000-square-foot
retail and office development on Rich-mond Highway near Fort Belvoir.
Shenandoah ValleyAfter several quiet years, the mar-
ket in the Interstate 81 corridor has improved, says Tim Reamer, a broker with Cottonwood Commercial in Har-risonburg. Just like in other parts of the commonwealth, food is the main retail driver, with fast casual and quick service outlets such as Texas Road House and Firehouse Subs debuting in the region.
In Harrisonburg, construction of the Southeast Connector, a 5-lane, 6-mile stretch of highway, has inspired a 105-acre, mixed-use development called Stone Port. Reamer says Stone Port likely will
An 80,000-square-foot Walmart anchors a new
retail area at Tysons.
92 DECEMBER 2013
C O M M E R C I A L R E A L E S T A T E
Photo by Mark Rhodes
<< Commercial Real Estatebe anchored by a yet-to-be-announced supermarket and will feature restaurants, hotels and “Main Street”-style shops. He expects the project to break ground in 2014.
In Waynesboro, Reamer says, mod-est new development will mostly be in the form of strip malls of 12,000 to 18,000 square feet that will be home to national brands such as Dunkin’ Donuts and Verizon.
Southwest VirginiaIn Roanoke, Richmond-based WVS
Co. has broken ground on The Bridges, a mixed-use development that eventually will encompass 1 million square feet of retail, entertainment, office and residen-tial on the city’s riverfront.
The big news in this part of the state: two developments five miles apart in the Tri-City area. In Bristol, Tenn., work is underway on The Pinnacle, a one-million-square-foot-plus shopping, dining and entertainment complex from Johnson Commercial Development.
Steve Johnson says his project eventually will encompass 500 acres straddling the Tennessee-Virginia line. Phase 1 focuses on the 250 acres on the Tennessee side of the state line, and it will be anchored by Bass Pro Shops (opening in mid-2014) and Belk’s department store (spring 2015). Johnson believes The Pinnacle will draw shoppers from “halfway to Nashville. It will be a “smorgasbord of retail like they’ve never seen before,” he says.
Meanwhile The Falls, at Exit 5 off I-81 in Bristol, Va., is on a similar track for development. Mike Nidiffer of Inter-state Development says that a Cabela’s sporting goods store should open there next year. Other announced tenants for the planned one-million-square-foot shopping center include casual restau-rants Smoky Mountain Brewery, Zaxby’s and Calhoun’s.
Hampton Roads Rob Wright of the commercial real
estate company Katsias says grocers and
fast casual restaurants also are driving development in Hampton Roads. Kroger’s opened one of its large Marketplace stores in Virginia Beach last summer and plans additional outlets for the booming Har-bor View area of Suffolk and Portsmouth (2014). Wal-Mart is going into Virginia Beach and Williamsburg. Harris Teeter opened a store in Portsmouth in 2012 and in 2014 hopes to open two more stores, one at Ward’s Corner in Norfolk and the other at Sandbridge Commons in Virginia Beach.
Gerald S. Divaris, chairman and CEO of Divaris Real Estate Inc. which is headquartered in Virginia Beach, adds that a Fresh Market is going into down-town Norfolk in 2014, and that Whole Foods, after opening a store in Virginia Beach in 2012, plans another store with a 2015 opening in Newport News.
“Suburban development is driven by grocers,” Divaris declares. For a retail market that recently went through some lean times, that reality is a welcome bit of nourishment.
Sweet success Frozen yogurt shops take off with more expansion planned in 2014 by M.J. McAteer
T he proper name for a group of frogs is “an army,” and army is an apt way to describe the
swelling ranks of one of Virginia’s biggest retail success stories in recent years, sweetFrog.
The frozen yogurt chain started as a single location in the Short Pump area of Richmond in 2009. Derek Cha and his wife, Annah Kim, believed that they could fill a vacant niche in the market, and they were right.
In less than five years, sweetFrogs have appeared in 28 states, Great Britain and the Dominican Republic. The company now has 300 corporate, li censed and franchised stores (franchise fee: $30,000) with 82 in the Old Domin-ion alone. Raven Williams, franchise sales director for the chain, recently said that the shops have average annual revenues of $500,000 to $1.5 million.
James Denison, who does public
relations for sweetFrog, credits the yogurt chain’s phenomenal growth to two factors.
First, he says, it offers a quality prod-uct. Customers at the self-serve, sold-by-weight shops can pick from 20 flavors of frozen yogurt, ranging from tried-and-true chocolate to quirky maple bacon donut. The store’s 50 toppings include mango poppers, cheesecake bites and, of course,
gummy frogs.But just as important to the
chain’s success, says Denison, is its family values. “Frog” is an acro-nym for “fully rely on God.” The sweetFrog chain puts that sentiment into action by participating in food drives and sponsoring charitable events. Mascots Scoop and Cookie visit children’s hospitals and make appearances at local fundraisers. “We want to be there for our com-munity,” Denison says.
That community continues to expand. The company now is marching into New England and the Great Lakes region and reportedly is eyeing South America for its next overseas theater of operations.
Kermit may have been right when he said that it wasn’t easy being green, but, for frozen yogurt entrepreneur Derek Cha, it can be lucrative.
The frozen yogurt chain now has
300 stores.
www.VirginiaBusiness.com VIRGINIA BUSINESS 93Photo by Logan Wallace, courtesy Virginia Tech
A safer drive?Virginia Tech institute tests automated vehicle technologiesby Richard Foster
S ometime in the 2040s, your son or daughter is running late for a meeting across town. They pull up
an app on their implanted smart device and find the nearest available driverless vehicle. The pod-like conveyance pulls up and waits for its passenger, like a theme park ride. The automated taxi drops the rider off at the appointed destination and then whisks away to retrieve its next client.
Except for the bo dy cyber implant (which, really, is as good as anyone’s guess at this point) that may be a fairly accu-rate vision of the future of transportation, which is being pioneered at the Virginia Tech Transportation Institute (VTTI). The institute, which celebrated its 25th
anniversary in November, is road-testing and researching a variety of new vehicular technologies that are years — and in some cases decades — ahead of what one can find in today’s auto showrooms.
“Long term, things are moving towards automation … but it’s an evolu-tionary process,” says Thomas A. Dingus, the institute’s executive director. “There are production vehicles out this year and last year that automatically brake. There are production cars out this year and over the next year that will actually do lane cen-tering. That’s sort of the first step toward automated steering. … We’ve tested a lot of that technology here at VTTI over the last decade. It’s all moving toward full automation, although that’s quite a ways away. … Realistically you’re talking about 25 or 30 years, but it will go fast if the last 25 years is any indication.”
This year, Dingus was honored at the White House as one of the Obama administration’s 2013 Champions of Change for his work on 21st-century transportation solutions.
Since becoming VTTI director in 1996, Dingus developed it from a 15-employee center into the nation’s second-largest university transportation research institute, now employing a staff of more than 350. Its annual budget grew from $2 million to about $40 million
in just a decade as Dingus built partner-ships with the federal government and the automotive industry. (About 25 percent of VTTI’s annual research budget comes from private industry; the balance is from state and federal funding.) The institute conducts more than 200 research projects a year, including testing new technologies for automotive manufacturers as an inde-pendent research facility.
VTTI operates the Virginia Smart Road, a closed, test-bed facility in Blacksburg that includes a 2.2-mile test track and the 175-foot-high Smart Road Bridge, the tallest state-maintained bridge in the state. Researchers have logged more than 16,500 hours at the facility. This year, among many other projects, Tech researchers have road-tested the driver-less Google Car at the Smart Road as part of a project in cooperation with the U.S. Department of Transportation, the National Highway Traffic Safety Admin-istration, Google and General Motors. The project tests how drivers react to
warnings to take control of semiautono-mous vehicles.
There are different levels of automa-tion in vehicles, explains Myra Blanco, who leads VTTI’s Automated Vehicle Sys-tems research group, including features such as automated braking, lane changing and lane centering. Another technology has the car knowing its position relative to the car in front of it.
In the Google study, Blanco says, “We’re basically looking at the human system interaction, looking at how the driver will hand off or cede control to the vehicle, then if something happens, how they would regain control of the vehicle again.” For instance, if the car encoun-ters an unexpected road condition such as road construction, it could signal the driver to take over. VTTI is studying how to make that transition seamless and safe.
The goal that transportation research-ers are working toward is a fully auto-mated car into which the user can input a destination and let the car safely do the
Business Trends: Technology
The Virginia Tech Transportation Institute conducts research on its Virginia Smart Road, which includes a 175-foot-high Smart Road Bridge, the tallest state-
maintained bridge in the state.
94 DECEMBER 2013 Photos courtesy Virginia Tech
rest. No company has gotten to that point yet, Blanco says, but the Google Car and projects such as CityMobil, a European pilot project testing automated mass tran-sit, are steps toward the future.
Conceivably, automating vehicles could virtually eliminate car crashes, allevi-ate traffic congestion and reduce gasoline usage, Dingus says, but first there will have to be redundant, reliable systems that are beyond foolproof. “We still have 32,000 or 33,000 fatalities a year. People say once vehicles are automated, that number will drop substantially,” Dingus says, “but if you’re in an automated vehicle and it crashes, it’s going to be on the front page of every newspaper in the country.”
Toward that end, a major component of VTTI’s automated research is the abil-ity to create a wireless network of smart vehicles sharing the road and trading data with one another.
VTTI is conducting connected vehicle tests on the Smart Road and in real-world driving conditions on its Virginia Con-nected Test Bed, a stretch of highway with 43 wireless networking devices located at intersections along the Interstate 66 cor-ridor in Fairfax County near state Routes 29 and 50.
Using wireless technology, connected
vehicles can build a virtual map of which cars are around them and where those cars are heading. Cars could relay information to each other such as warnings of slick roads so your vehicle will know to slow down, says Zachary Doerzaph, director of VTTI’s Center for Advanced Automotive Research. Connected vehicles also could collect information from road crews about construction hazards.
One of the studies VTTI is conduct-ing examines how stop signs could become “virtual yield signs,” Doerzaph says, allow-ing you to drive through the intersection without stopping if the car knows no other
vehicles are nearby. Another potential use would allow state transportation depart-ments to improve traffic flow by directing traffic to different lanes depending on the vehicle’s destination.
VTTI is also looking at customizable software inside the car. Right now that means entertainment apps such as Pandora or Netflix, Doerzaph says, but one day the user could purchase additional software increasing the smart technology capabili-ties of the vehicle.
There are questions to be answered, including whether the network would compete with cellphone bandwidth or operate solely on short-range technology. Also, due to infrastructure costs, it’s more likely that fixed wireless broadcast nodes would be located at strategic locations instead of being ubiquitous on roadways, Doerzaph says. And for safety’s sake, sys-tems must be more reliable than a cell phone connection.
Other challenges to using automated vehicles include regulatory questions and phasing out the existing fleet of non-automated vehicles. Cars with the newest automation and smart features likely will be more expensive, Dingus says, so it could take 25 to 30 years before everyone is driv-ing a connected or smart car. VTTI also is looking into whether older cars could become retrofitted with adaptive technol-ogy, Doerzaph says, but those cars prob-ably wouldn’t have as high a level of func-tionality as cars with built-in technology.
Other related research at VTTI exam-ines “naturalistic driving” — monitoring drivers’ habits in the vehicle with tech-nology including cameras and monitors. VTTI looks at factors such as texting (very bad), cell phone usage (surprisingly not so bad because the driver’s eyes are forward on the road when talking) and fatigue (a huge factor in crashes and near-crashes). Even-tually VTTI research may be used to create more advanced, built-in monitoring appli-cations for novice teen drivers that could send detailed report cards to parents about the teens’ driving habits, similar to current commercial products such as DriveCam and IntelliDrive.
“We want to make sure we get this right the first time,” Doerzaph says. “The worst possible outcome is for us to do all this work and when it gets deployed, it decreases safety instead of increasing safety.”
Technology
VTTI also studies the effect technology has on driving
habits, such as talking on a cell phone and texting.
VTTI has conducted testing on Google’s automated car on the
Virginia Smart Road.
www.VirginiaBusiness.com VIRGINIA BUSINESS 95Photo courtesy Virginia Tech
A s the national economy continues to rebuild from the Great Recession, the Roanoke and New River valleys have
seen a manufacturing resurgence.Once thought a casualty of global-
ism, industries that make stuff have made a comeback in the region. Whether it’s the Luxembourg-based food packaging compa-ny Ardagh Group announcing it would in-vest in a site in Roanoke County, or Virginia Tech-grown TECHLAB expanding biotech production to the Radford Industrial Park, manufacturing is helping to drive Virginia’s economic recovery.
Health care remains the region’s biggest employment sector, with Carilion Clinic as the Roanoke region’s largest employer. But “manufacturing led us out of the recession,” says Beth Doughty, executive director at the Roanoke Regional Partnership.
While job growth in the Roanoke and Blacksburg areas — home to a combined population of nearly half a million people — lags the national average, the region’s manufacturing sector has outpaced both the commonwealth and the nation.
Th ere’s potential for more, too. Th e 4-year-old Virginia Tech Carilion School of Medicine and Research Institute reached its fi rst full student capacity this fall.
Economic development boosters hope the research institute will do for Roanoke what Virginia Tech’s Corporate Research Center (CRC) has done for Blacksburg: Provide a supportive environment for small companies to grow and hopefully remain in the region.
An ‘exploding’ tech sectorTh e 230-acre CRC has 155 tenants and
is at nearly 99 percent of its capacity, ac-cording to its president, Joe Meredith. Th e center is adding two new buildings — one for a $5.5 million expansion by Rackspace’s IT hosting operation and the other for a $3.5 million propulsion laboratory operated by Virginia Tech’s engineering department — as well as athletic fi elds and amenities.
Two tenants have expanded beyond the CRC. One of them, TECHLAB, a biotech
fi rm that started at Virginia Tech before lo-cating in the CRC, bought a 54,000-square-foot building in nearby Radford to house its manufacturing facilities.
Also, Aeroprobe Corp., which makes instruments and software used in cars, jets, wind turbines and other applications, will invest $3 million over fi ve years into a new site in Christiansburg’s Falling Branch Cor-
porate Park.Derick Maggard, executive director of
the Roanoke-Blacksburg Technology Coun-cil, says Virginia’s tech sector “is exploding right now.”
“Th is focus on entrepreneurship and innovation is only going to lead to greater growth,” Maggard says. “It’s not a bubble at all but the wave of the future.”
Manufacturing movesTraditional manufacturing plants have
expanded as well. Celanese Acetate, which employs more than 1,000 people at its Giles County facility, launched a $150 million capital project to convert its power plant from coal to natural gas.
BAE Systems announced it will invest
$240 million to upgrade its facility at the Radford Army Ammunition Plant.
A Polish company, Korona Candles, will spend $18.3 million to establish a facility in Pulaski County, creating about 170 jobs.
James Hardie Building Products ex-panded its Pulaski facility to nearly 1 mil-lion square feet.
In the largest single manufacturing in-
vestment in Roanoke County history, the Ardagh Group announced it would spend $93.5 million to renovate the former Ha-nover Direct building into a facility that can produce nearly 4.5 million food cans per day.
Not all manufacturing news has been good, though: Th e Grede Holdings LLC said it would close the historic Radford Foundry, which had passed through the hands of several owners and employed 250 people when the closure was announced.
“Th ere are always ups and downs,” says Aric Bopp, executive director of the New River Valley Economic Development Alliance. “It’s sad to see companies that do face struggles and challenges. But for the most part, the economy in the region is
Community Profile: Roanoke/New River Valley
Regional revivalManufacturing, tech sectors helping to rebuild area’s economyby Mason Adams
Ignacio Saez is an assistant professor at Virginia Tech
Carilion Research Institute. Economic development
boosters hope the institute will help boost the growth of
small businesses.
96 DECEMBER 2013
Community Profile: Roanoke/New River Valley
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Photo courtesy Roanoke Regional Partnership
really fi ring up.”Th e companies that have manufactur-
ing facilities in the region sell to a global market, and, if the economy continues to improve, Bopp and Doughty expect to see continued investment and job growth.
No silver bulletsManufacturing isn’t the region’s only
strong point, however. Everyone wants a “silver bullet” for economic development, Doughty says. “Everyone wants the one thing that will change things and make it better. Th at’s an antiquated view of the economy. It’s more like spinning plates: You have to have a lot going on to grow your economy in diff erent ways.”
In 2012, Moody’s Analytics ranked the Roanoke region 46th out of 384 metropoli-tan statistical areas (MSAs) for industrial di-versity. It fell slightly this year, from 73 per-cent as diverse as the nation to 71 percent, but it still ranks high. In Virginia it ranks just below Richmond (72 percent) but is well ahead of the two localities tied for third in Virginia (Lynchburg and Winchester, at 58 percent each).
“We’re not putting all of our jelly beans
in one bucket,” says Wayne Strickland, exec-utive director of Roanoke Valley-Alleghany Regional Commission.
Th e localities that comprise the Roa-noke Valley worked together in 2013 to collectively raise their lodging tax rates — a move that required General Assembly ap-proval for Roanoke County — and provide a larger marketing budget for the Roanoke Valley Convention and Visitors Bureau to attract tourists.
Th e Roanoke Regional Airport invested in a makeover for its terminal, and Gov. Bob McDonnell announced in August that Am-trak would extend passenger rail service to Roanoke by 2016.
Roanoke Valley governments also teamed up with the private sector to cre-ate a regional broadband authority to help encourage the expansion of aff ordable high-speed Internet service. In September, gigabit Internet service arrived in Blacksburg after a successful Crowdtilt crowd-sourcing cam-paign by TechPad, a co-working space near Virginia Tech. (See page 15.)
Breweries bubble upTh en there’s the region’s growing food
economy. Th e biggest news in that sector was the announcement that Mexico-based Red Sun Farms would invest $30 million to build greenhouses on 45 acres in Pulaski’s NRV Commerce Park, creating 205 jobs within fi ve years.
Beneath the banner of that high-profi le economic development victory, the local food movement has grown by leaps and bounds over the past decade.
Th at includes the rapid expansion of
Beth Doughty says searching for a single “silver bullet” is an “antiquated view of the economy.”
www.VirginiaBusiness.com VIRGINIA BUSINESS 97
Community Profile: Roanoke/New River Valley
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the region’s craft brewing sector. While larg-er, traditional domestic beer companies have seen sales of products stagnate, craft beer la-bels have exploded in variety and revenue. Until 2013, however, Roanoke’s only brewer of note was Roanoke Railhouse, founded in 2009.
Th e 2012 expansion by Nelson Coun-ty-based Devil’s Backbone Brewing to a new facility just north of Roanoke in Lexington, however, may have inspired more regional brewers to step up. Devil’s Backbone ex-panded the Lexington plant at the end of 2012 and again this year, increasing its pro-duction capacity to 40,000 barrels per year.
In the Roanoke and Blacksburg region, entrepreneurs launched Parkway Brewing Company in Salem, Sunken City Brewery in Franklin County near Smith Mountain Lake and Flying Mouse Brewery in Bote-tourt County.
Th e largest of the three, Parkway Brew-ing, is producing 3,600 barrels per year, with plans to expand to 6,000. Owner Mike “Keno” Snyder says the brewery saw about 15 percent growth its fi rst year.
Sunken City invested $2.3 million at Westlake, where it produces canned prod-
uct. Th e brewery is on track to produce about 3,000 barrels this year and has the capacity to produce up to about 20,000 bar-rels per year. Owner Jerome Parnell says he hopes to expand distribution eventually into fi ve to seven states.
Local food loyaltyBesides beer, there’s been a surge of
farming and food production in western Virginia, too. “Local products have really improved not just in quantity but in qual-ity too,” says John Bryant, spokesman for the Roanoke Natural Foods Cooperative. “Th ere’s been a real step up in the game.”
In 2003, Tenley Weaver’s Good Food – Good People, a Floyd County-based food aggregator, received local produce from fi ve suppliers and maintained about eight ac-counts. Now, Good Food – Good People channels local products from 40 farmers and nearly 30 other suppliers to numerous restaurants, farmers markets, wholesalers, a retail outlet and roughly 385 people who paid at the beginning of the season for regu-lar deliveries through a Community Sup-ported Agriculture (CSA) program.
“Th e percentile growth that our com-
pany and food system here is experienc-ing is off the charts,” Weaver says. “Will it hold? Of course not. It has to level at some point.”
Th is year has been diffi cult for farm-ers, with unseasonably cool temperatures, record-breaking amounts of rain and gener-ally unpredictable weather. Th e markets and demand for locally produced food, however, are better than they’ve been in decades.
Farm-to-table restaurants, such as Lo-cal Roots, River to Rail and Bent Mountain Bistro, trumpet their commitment to local foods, while others, such as Alexander’s, reg-ularly purchase regional goods as well.
Nearly a dozen new farmers markets have cropped up. Th e success of one of them, the Grandin Village Community Market, founded in 2009, inspired the nearby Roanoke Natural Foods Cooperative to grow as well, expanding with not only a second, downtown location but also the es-tablishment of an urban farm.
Downtown boomTh e co-op’s new satellite location in
the freshly renovated Center in the Square building wouldn’t have been possible with-
98 DECEMBER 2013
Community Profile: Roanoke/New River Valley
out a residential development boom in downtown Roanoke.
Richmond developer Bill Chapman, who previously launched the Lofts at West Station in a redeveloped warehouse, this year opened Parkway 301, which includes 89 apartment units in the former Shenan-doah Building. Another developer, Faisal Khan, plans 90 units for the Crystal Tower Building, which he has renamed the Ponce de Leon in honor of its former life as a hotel.
Th e rapid conversion of old warehouses and offi ce buildings into apartments has re-sulted in new opportunities for retail stores.
One retail area, 16 West Marketplace, was de-veloped as a commercial marketplace aimed at the new downtown population: It includes a grocery, pizzeria, coff ee shop and more.
Th e private sector investment has been boosted by the city government, too, which over the last decade has invested roughly $20 million into the Market Street corridor from the railroad to Elm Avenue. In Octo-ber, the city reopened Elmwood Park after a $7 million renovation that included con-struction of a new amphitheater.
“We try with public dollars to leverage what’s happening downtown to get more
private investment,” says Roanoke City Manager Chris Morrill.
Th at’s what happened with the six- story Market Garage, which was renovated in 2009 at a cost of $6 million. Th at led to an announcement in 2012 by the Green-ville, S.C.-based Windsor/Aughtry Co. that it would build a Hampton Inn on top of the structure. Bids came in several million dol-lars higher than the company expected, so it is working with city government to fi nd ways to cut costs. Th e company still hopes to begin construction before year’s end.
While the region’s retail sector still struggles with online competitors, clothier Larry Davidson said the work downtown has boosted his business: “I just sense the activity level is so totally diff erent now. For me, personally, it’s very exciting to see the quality of the things it’s instilled up and down Market Street.”
Th e city hopes to spin that activity into adjacent neighborhoods. Last year, the Roa-noke City Council extended the downtown district south past the Roanoke River to an area that includes the Bridges, a planned $150 million development that broke ground in May. Th e fi rst phase includes construction of an apartment building and the renovation of an existing structure into a coff eehouse and restaurant.
City offi cials also designated a district just west of downtown for targeted federal redevelopment funds. Freedom First Credit Union will open a branch in the neighbor-hood, and the city council voted to sell the former health department building to Ed Walker, a renowned developer who previ-ously redeveloped the Patrick Henry, the Cotton Mill Lofts and the former Hancock Building into apartments.
One of the city’s traditional corner-stone companies, Advance Auto Parts Inc., announced in October it would acquire General Auto Parts International Inc., for $2 billion, meaning the largest automotive aftermarket parts provider in North Ameri-ca will be headquartered in Roanoke.
Additionally, Virginia Western Com-munity College off ers courses in mecha-tronics — a combination of mechanical and electronic systems — that will prepare more workers for the kind of manufacturing com-panies that are making a home in the region.
“Advanced manufacturing is our sweet spot,” says Doughty. “We’re just starting to see the beginning of a trend. It’s going to continue to go up.”
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100 DECEMBER 2013 Photo by Steven Mantilla
Navigating the pitfallsWebsite improves, but wave of cancellations upsets policyholders
by Robert Burke
T he October launch of the Affordable Care Act’s indi-vidual health insurance option
was a mess, but it’s gotten better, say those who are helping people around Virginia apply for coverage.
Improvements to the healthcare.gov website, which were due to be completed by Nov. 30, also let peo-ple find out how the new insurance options will affect them. For some it’s a lot better, for others, it isn’t.
Robin Davis, an application counselor at New Horizons Health-care in Roanoke, has been helping people trying to use the website for the past two months. She says applicants didn’t give up despite its early problems and that the flow of applicants remained steady. “They’re very understanding that there are going to be issues with something of this mag-nitude,” she says. “Most folks we talk to are willing to come back again and again.”
They needed to do so because the site didn’t work at all when it was launched on Oct. 1. “It was horrible. It took us almost three hours to get through our first appli-cation,” Davis says. By early November, the same task took her 40 minutes, she says. “So it’s getting better.”
Davis, who sees about five people a day, says most are older, lower income and currently without any health insur-ance. They’re generally pleased with the monthly premiums, and most qualify for tax credits available to low-income appli-cants, she says.
But because Virginia hasn’t decided if it will take part in the proposed expansion of Medicaid, some applicants fall into a gap. They’re too poor to qualify for tax credits under the health-care law but have too much income to qualify for Medicaid.
Jill Hanken is an attorney with the Virginia Poverty Law Center, which has about three dozen “navigators” around the state helping people use the insur-ance exchange. She says her group has been working around problems with the website by using paper applications or the
federal call center. Besides the website’s technical problems, many people are struggling to understand the “very dif-ferent insurance landscape…people still have a lot to learn about it,” Hanken says.
The Obama administration revealed in November that only 27,000 people, including 1,023 in Virginia, enrolled in health plans using the federal website dur-ing its first 33 days of operation. Another 79,000 enrolled on state-run exchanges.
In response to problems with the exchange, the deadline for applying for insurance without incurring a penalty has been eased back from mid-February to March 31.
In addition to the ACA’s website prob-lems, many individual customers’ health-care policies have been canceled because they didn’t offer coverage required by the law. The Wall Street Journal reported that more than 4 million people in 28 states had received cancellation notices by Nov. 14. No numbers were available on those affected in Virginia; insurers aren’t required to report how many policies are being canceled.
For those facing a cancellation, it’s a big deal, says Herndon-based insur-ance agent Jonathan Katz. “It’s very widespread” among people who buy individual policies, he says. About 20 per-cent of his firm’s 2,500 clients are at risk. They started calling in early November with worried questions. “I set a personal record, I got 74 calls in one day,” he says.
Replacing the coverage is a com-plex decision for people to make, he says. His clients generally aren’t eligi-ble for the tax credits to subsidize their premiums under insurance purchased on the exchange, he says. About 518,000 people in Virginia are eligible for the tax credits that would offset premium costs. The annual income threshold to be eligible is $94,200 for a family of four, and most of his clients make more than that, he says.
Without the subsidies, the pric-ing for plans on and off the exchange
can be significantly higher. “The bigger story to me is what products and pric-ing are available for next year for people who don’t qualify for subsidies,” he says. “People are very upset, generally speaking. Some are happy, but not many.”
Clients who benefit are those who qualify for tax credits or have a pre-existing health condition that was making insurance expensive. They’re getting less expensive plans on the exchange, he says. But most others are not getting tax credits, just higher premiums. “It’s a real struggle. If I tell somebody their premium went to $1,200 from $600, they don’t have that money,” he says.
Admitting that his administration had “fumbled” rollout of the health-care law, President Obama announced in mid-November that insurers can extend for one year policies that had been cancelled because they failed to meet the law’s cov-erage requirements. At press time, it was unclear how the president’s move would affect cancelled policies in Virginia. Anthem Blue Cross and Blue Shield, the state’s largest health insurer, has been offering customers the option to renew early for one-year policies that otherwise would be discontinued on Jan. 1, accord-ing to the Richmond Times-Dispatch.
Hanken says all the uncertainty should spur consumers to get started now. “Things are getting better,” she says. “People will need to do the work to realize they have better choices.”
Business Trends: Health Care
Application counselor Robin Davis works with a health-care
applicant in Roanoke.
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Gov.-elect Terry McAuliffe, a Democrat, has pledged to seek bipartisan solutions, but can he and Republican legislators work together after a bitter campaign? Virginia Business takes a look at emerging issues for the 2014 General Assembly.
The January issue also will examine:• Virginia’s top hospitals and a new
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• The potential effect a movie has on tourism in a Southwest Virginia town.
• The increasing number of international students at Virginia business schools.
• New developments in the Lynchburg region economy.
• Predictions on commercial real estate growth in Virginia in 2014.
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