BACKGROUND: A Short Primer on the Bay Creek Lawsuits

(EDITOR’S NOTE: In response to numerous questions and some misinformation, the Wave provides below a synopsis of the lawsuits concerning Bay Creek developers, the Bay Creek Community Association, and its members.)


January 10, 2014

The original Galloway lawsuit was filed in Virginia Beach Circuit Court on January 24, 2012, by Galloway Corporation, plaintiff against Bay Creek, LLC, defendant. Galloway complained that in 2011, Bay Creek LLC failed to honor an agreement to buy Galloway Corporation’s share of Bay Creek Marina and Resort property that Paul Galloway and Richard “Dickie” Foster held in partnership.

Paul and Robert Galloway said they stopped paying their assessments because Foster did not fulfill his purchase agreement. Bay Creek Community Association filed a collection action in Northampton County District Court after the first Galloway lawsuit. The court ruled in favor of the Association. The Galloways appealed and were required to post a bond for the amount of assessment due.

The second Galloway lawsuit, which was addressed in the “Notice of Settlement,” was entered in Virginia Beach Circuit Court June 14, 2012, with the Galloways and their companies as plaintiffs and the Bay Creek Community Association officers and Bay Creek companies as defendants. On behalf of the members of Community Association, the complaint concerned the makeup and management of the Community Association Board  as well as debt collection and disclosure concerns. It went to mediation December 3-4, 2013.

The third and final Galloway lawsuit was entered in Virginia Beach Circuit Court August 23, 2012. It is almost identical to the June 14, 2012, lawsuit, except that it names only the Galloways and their companies as plaintiffs and Richard S. Foster as the defendant. It raises the same derivative counts as the second lawsuit and demands a jury trial. A footnote (page 5) says, “Plaintiff will seek to consolidate [the two cases]. . . to ensure that all parties are properly before the Court.” If the settlement is approved, this lawsuit will be dismissed as well. [Read more…]

‘Winter Walls’ Exhibit at Stage Door Gallery

“Winter Walls” exhibit at The Stage Door Gallery, 301 Mason Avenue, opens Saturday, January 11, and runs through Monday, February 24. [Read more…]