Justia Vermont Supreme Court Opinion Summaries

Articles Posted in Government & Administrative Law
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This case involves two consolidated appeals from Northwestern Medical Center and Rutland Regional Medical Center against the Green Mountain Care Board (GMCB). The GMCB had approved the proposed budgets of both medical centers for the fiscal year 2024, but with certain conditions. The medical centers challenged the GMCB's imposition of budgetary conditions that capped increases to rates charged to commercial payers. However, the medical centers had not properly raised their claims with the GMCB, leaving them unpreserved for review.The GMCB is an independent board that regulates the health care industry in Vermont. It reviews and establishes hospital budgets annually, with the aim of reducing the per-capita rate of growth in expenditures for health services in Vermont across all payers. The GMCB had released its established benchmarks for the 2024 fiscal year budget submissions, which included a benchmark that limited a hospital’s growth of net patient revenue/fixed prospective payment (NPR/FPP) to 8.6%, effectively capping increases to NPR/FPP growth by that amount. It also included a benchmark for commercial rate increases which provided that the GMCB would “also review and may adjust requested hospital commercial rate increases.”The GMCB approved the budgets of Northwestern and Rutland Regional, subject to certain conditions. These conditions included a cap on increases to commercial rates. However, neither Northwestern nor Rutland Regional had raised their claims with the GMCB, leaving them unpreserved for review.On appeal, Northwestern and Rutland Regional argued that the GMCB deprived them of due process by failing to provide adequate notice that it would impose the Commercial Rate Cap Conditions on their proposed budgets. They also claimed that the GMCB had no authority to impose the Commercial Rate Cap Conditions because the conditions lacked a factual basis and contradicted the GMCB’s initial approval of their proposed budgets. However, the Vermont Supreme Court declined to reach the merits of these claims because they were not preserved for review. The court noted that Northwestern and Rutland Regional had several opportunities to raise their claims with the GMCB before the GMCB issued its final budget decisions, but they failed to do so. Therefore, the court affirmed the decisions of the GMCB. View "In re Northwestern Medical Center Fiscal Year 2024" on Justia Law

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The case involves an appeal by the Department of Corrections (DOC) against a jury verdict in favor of plaintiff P. Mark Potanas under the State Employee Whistleblower Act. Potanas, a former superintendent of Southern State Correctional Facility (SSCF), claimed that the DOC fired him in retaliation for his whistleblowing activities. These activities included notifying the state about potential savings on a building renovation project and advocating for more mental health staff at SSCF. The DOC argued that Potanas did not engage in any "protected activity" under the Act, and thus, the trial court should have granted its request for judgment as a matter of law.The trial court denied the DOC's motion, finding that Potanas's report of potential waste and his complaints about mental health staffing were sufficient to meet the definition of "protected activity" under the Act. The jury returned a verdict in favor of Potanas, leading to the DOC's appeal.The Vermont Supreme Court reversed the trial court's ruling, agreeing with the DOC that Potanas did not engage in protected activity under the Whistleblower Act. The court held that the Act does not encompass reports about the possibility of future waste and that reporting on a known problem or disagreeing about how to resolve a known problem is not protected activity. The court remanded the case to the trial court to vacate the jury’s verdict and enter judgment for the DOC. View "Potanas v. Department of Corrections" on Justia Law

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In this case, the Vermont Supreme Court affirmed a lower court's decision that the defendants, R.L. Vallee, Inc., and Crystal Clear Hospitality, LLC (CCH), accepted and used payments issued by the Vermont Agency of Transportation (the Agency) in connection with a condemnation order and are therefore barred from contesting the necessity of the taking or the public purpose of the Agency’s highway project under 19 V.S.A. § 506(c).The Agency sought to acquire certain property rights for a highway project. After a judgment of condemnation was issued, the Agency tendered payments to the defendants. The defendants deposited these payments into their respective accounts but maintained that they had not "used" the funds. They appealed the judgment, intending to challenge the necessity and public purpose of the project.The court held that depositing a check constitutes both "acceptance" and "use" of a payment under 19 V.S.A. § 506(c). It rejected the defendants' argument that they had not used the "funds" because the issue was whether they used the Agency’s payments when they deposited its checks into their accounts. The court also rejected the defendants' argument that the Agency was required to show that they knowingly, intelligently, and voluntarily waived their rights under § 506(c), noting that defendants are charged with knowledge of the law and were represented by counsel. Finally, the court did not address the defendants' argument that § 506(c) is unconstitutional, as the defendants failed to assign error to the lower court's decision not to address that argument. View "Agency of Transportation v. Timberlake Associates, LLC" on Justia Law

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In this case, the plaintiffs, Stowe Aviation, LLC and Stowe Airport Investment, LP, appealed from a denial of their motion to reopen a breach-of-contract case with the Vermont Agency of Commerce and Community Development. The plaintiffs had signed a memorandum of understanding (MOU) with the Agency in 2014, outlining their intention to develop and expand the Morrisville-Stowe State Airport using funds secured through the EB-5 program. However, the Agency later transferred its obligations under the MOU to the Department of Financial Regulation (DFR) without informing the plaintiffs, leading to the failure of the airport project.The plaintiffs filed a complaint against the Agency, alleging that the Agency breached its contract by failing to perform under the MOU and by transferring its obligations to the DFR without notice. The trial court dismissed the claims, and the case was closed. The plaintiffs then moved to reopen the case and amend their complaint, but the trial court denied their motion. The plaintiffs appealed this order.The Supreme Court of Vermont reversed the order and remanded the case, holding that the trial court had abused its discretion in denying the plaintiffs' motion to reopen the case. The Supreme Court reasoned that plaintiffs could potentially obtain relief to cure a pleading deficiency under Vermont Rule of Civil Procedure 59(e), and it was inappropriate for the trial court to deny relief simply because plaintiffs did not request leave to amend in their opposition papers before the court entered judgment. On remand, the plaintiffs must demonstrate a valid basis to vacate the previously entered judgment to prevent manifest injustice before they can file their amended complaint. View "Stowe Aviation, LLC et al. v. Agency of Commerce & Community Development" on Justia Law

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In this case, the Vermont Supreme Court affirmed the decision of the Vermont Public Utility Commission approving a contract under 30 V.S.A. § 248(i) for the purchase of out-of-state renewable natural gas by Vermont Gas Systems, Inc. (VGS). The contract, which was proposed to last for fourteen-and-a-half years, required VGS to purchase a minimum volume of renewable natural gas that would be produced and transported from a landfill in New York. The contract was part of VGS's efforts to invest in nonfossil gas and incorporate renewable natural gas into its gas supply to meet regulatory requirements and reduce greenhouse gas emissions.The appellant, Catherine Bock, a ratepaying customer of VGS, challenged the Commission's findings with respect to the contract’s contribution towards satisfying emissions reductions under the Vermont Global Warming Solutions Act of 2020. Bock also disputed the Commission’s finding that the contract, with a condition imposed by the Commission, would comply with least-cost planning principles.The court rejected Bock's arguments, finding that the Commission's conclusions were supported by the evidence in the record and were not clearly erroneous. The court noted that the contract was only one of VGS's strategies to reduce emissions pursuant to the Vermont Global Warming Solutions Act of 2020. It also pointed out that there was sufficient evidence to support the Commission's determination that the contract was cost-effective and consistent with least-cost planning principles. View "In re Petition of Vermont Gas Systems, Inc." on Justia Law

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In the case, Maple Run Unified School District (the District) appealed a trial court order which granted the Vermont Human Rights Commission (the Commission) a motion to dismiss the District’s complaint for lack of subject-matter jurisdiction. The dispute arose from a complaint of sexual harassment filed by a student in the District. The student's mother later filed a complaint with the Commission alleging that the District failed to comply with the Vermont Public Accommodations Act (VPAA), the anti-harassment provisions in Title 16, and the school’s own policy. The Commission decided to investigate the matter. The District filed a motion with the Commission to dismiss the investigation, arguing that federal regulations preempted Title 16 and the complaint failed to state a prima facie case of discrimination under the VPAA. The Commission denied the District’s motion and decided to continue the investigation. The District then filed a Rule 75 petition in the civil division against the Commission, which the Commission moved to dismiss arguing that there was no cognizable avenue for relief under Rule 75 and the superior court lacked subject-matter jurisdiction to review the petition. The court dismissed the District’s complaint. The District appealed claiming that subject-matter jurisdiction had been established under Rule 75 via either mandamus or prohibition. The Supreme Court of Vermont held that the Commission’s determination that the complaint states a prima facie case of discrimination under the VPAA is not reviewable under Rule 75 via either mandamus or prohibition, and therefore, the superior court did not err in dismissing the District’s petition. View "Maple Run Unified School District v. Vermont Human Rights Commission" on Justia Law

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Petitioner Allco Renewable Energy Limited appealed a Vermont Public Utility Commission denial of its request for a certificate of public good (CPG) to construct a solar energy project in Bennington, Vermont. Under Vermont law, a company desiring to build an in-state electric generation facility may not begin site preparation or construction unless the Commission “first finds that the [project] will promote the general good of the State and issues a certificate to that effect.” Under the test used by the Commission, an adverse impact on aesthetics is undue if it “violate[s] a clear, written community standard intended to preserve the aesthetics or scenic, natural beauty of the area.” In 2015, petitioner applied for a CPG to construct a 2.0-megawatt solar electric generation facility. The project site was in a Rural Conservation District as defined in the Bennington Town Plan. The plan stated that development in Rural Conservation Districts “cannot be sited in prominently visible locations on hillsides or ridgelines.” Appellee Apple Hill Homeowners Association (AHHA) intervened in the CPG proceeding, as did the Town of Bennington. The Town initially argued that petitioner should not be granted a CPG because the project would violate clear, written community standards in the Town Plan, and would therefore interfere with the orderly development of the region and have an undue adverse impact on aesthetics. The Town later changed its position, voting not to oppose the project, and withdrew from the proceeding. Based in part on the Town’s decision not to oppose the project, the hearing officer issued a proposal for decision recommending the Commission conclude the project would not violate any written community standard, and would therefore not unduly interfere with the orderly development of the region or have an undue adverse effect on aesthetics. The Commission adopted the hearing officer’s findings and issued petitioner a CPG. The Vermont Supreme Court reversed, finding the Commission's conclusion was only based on the Town's decision not to oppose the project. The case was remanded to the Commission, who assigned it to a new hearing officer, who then reversed the prior decision, finding the project would therefore unduly interfere with the orderly development of the region and have an undue adverse impact on aesthetics. Ultimately the Commission concurred with this decision. Petitioner moved for reconsideration, which the Commission denied. The Supreme Court affirmed the Commission's last decision on this matter, upholding the denial of a CPG. View "In re Petition of Apple Hill Solar LLC" on Justia Law

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Plaintiff Energy Policy Advocates challenged a trial court’s conclusion that certain communications between different state attorney general offices were protected from disclosure under a public-records request, and further, that the trial court erred in declining to grant in-camera review of these documents. Additionally, plaintiff argued the trial court improperly granted only half of its fees despite substantially prevailing. The Vermont Attorney General’s Office (AGO) cross-appealed the trial court decision granting plaintiff any fees, arguing plaintiff was not entitled to fees as it did not substantially prevail. After review, the Vermont Supreme Court affirmed the trial court decision with respect to the withheld documents and reversed regarding the award of attorney’s fees. View "Energy Policy Advocates v. Attorney General’s Office" on Justia Law

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Claimant Semir Mahmutovic appealed a Vermont Department of Labor decision concluding that claimant’s prior employer was not obligated to reimburse claimant for lost wages under 21 V.S.A. § 640(c), and that the statute was not unconstitutional as applied to claimant. The Vermont Supreme Court determined that claimant conceded that the Commissioner properly interpreted § 640(c), and further concluded that claimant did not have standing to challenge the constitutionality of § 640(c). View "Mahmutovic v. Washington County Mental Health Services, Inc." on Justia Law

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J.N. was born in August 2013. On the eve of J.N.’s eighth birthday in August 2021, the State filed a petition alleging that J.N. was a child in need of care or supervision (CHINS) due to lack of proper parental care (CHINS- B) after an incident during which mother had dragged J.N. by her arms, causing bruises. The court transferred temporary custody to the Department for Children and Families (DCF). After a series of subsequent incidents at school and home, a trial court issued a disposition order that continued custody of J.N. with DCF, with a goal of reunification with her mother by June 2023. Mother appealed the CHINS disposition, Mother argued the State essentially used a CHINS petition to advance a claim of abuse, and that by accepting that framing, the trial court deprived her of notice and interpreted the statute in a manner that was unconstitutionally over broad. The Vermont Supreme Court determine the trial court’s findings did not fit the theory charged by the State. To the extent the State asked the Supreme Court to affirm the CHINS determination based on a theory of abuse, the Court agreed with Mother that this would create a problem of notice. Accordingly, the disposition was reversed and the matter remanded for further proceedings. View "In re J.N." on Justia Law