County board's suit against financial firm is dismissed

A lawsuit alleging fraud against a financial advising firm whose clients include Portsmouth and Suffolk has been dismissed, but a plaintiff says an appeal is likely.

The local governing body in Fluvanna County, near Charlottesville, sued Richmond-based Davenport & Co. LLC in September for nearly $19 million. It accused the firm of unjustly enriching itself with fees by knowingly giving bad advice to the county on how to finance a new high school, according to the complaint.

A Davenport executive called the allegations absurd and politically motivated. On Thursday, Circuit Judge Benjamin N.A. Kendrick dismissed the lawsuit on a matter involving separation of powers, said William Allcott, an attorney for Davenport.

The judge did not consider the merits of the case. If he had, the firm is confident it would have prevailed, Davenport CEO Coleman Wortham III said in a statement. He said the company has always acted in the county's best interest.

"We are gratified that all parties will be spared the time and expense of a trial on this meritless claim," Wortham said.

Shaun V. Kenney, chairman of the Fluvanna County Board of Supervisors, said the decision was not unexpected. He expected the board would appeal to the Supreme Court of Virginia.

After the lawsuit was filed, Portsmouth City Attorney Tim Oksman complimented Davenport and said he did not know of any instance when the city did not receive sound advice from the firm.

Franklin and Isle of Wight County also use Davenport.

Dave Forster, 757-446-2627, dave.forster@pilotonline.com