The case stemmed from Fair Housing Act violations involving the Thomas Jefferson Crossings Homeowners Association and discriminatory treatment of the Etemadipour family. Under a settlement agreement, Priority One Properties LLC agreed to purchase three properties belonging to the Etemadipours at 1060, 1072, and 1080 Governor's Lane for $675,000 each. While Priority One completed the purchase of 1080 Governor's Lane, it failed to buy the other two properties due to what it claimed were "financial constraints."
Judge Moon established key legal principles for calculating damages, noting that "specific performance is only available when a remedy at law is inadequate to compensate for non-performance." The judge also imposed a damages cutoff date of January 1, 2026, finding that the Etemadipours failed to adequately mitigate their damages after that point. Moon ruled that by August 2025, "the Etemadipours knew (or should have known) that Priority One had no intent to purchase the homes."
The court had previously granted the Etemadipours' motion to enforce the settlement agreement after Priority One's breach. During the litigation, Judge Moon dismissed Housing Opportunities Made Equal of Virginia as a party, finding that the nonprofit organization "never had standing in this case because it cannot sue to vindicate the rights of others." The case evolved from a Fair Housing Act dispute into a straightforward breach of contract matter.
The $226,223 damages award included various costs the Etemadipours incurred while waiting for Priority One to complete the purchase, including mortgage interest ($91,397), anticipated realtor fees ($67,500), lost rental income, property taxes, insurance, utilities, and repairs. The court also referred the Etemadipours' motion for attorneys' fees to Magistrate Judge C. Kailani Memmer for determination.