Justia Vermont Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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Plaintiffs appealed the grant of summary judgment in favor of defendant realtor who represented the seller in the sale of an inn. Plaintiffs argued that the trial court erred in concluding that defendant's alleged misrepresentation and omission were immaterial as a matter of law. Defendant Barbara Walowit Realty, Inc. was the listing agent for the inn. The prior-prospective purchaser claims she told defendant during their conversation that she had witnessed flooding in the parking lot and had learned of "major problems with the roof and that there was a possibility of collapse." Based on statements made by defendant, and a report prepared by the seller with regard to the condition of the inn, plainitffs entered into a purchase-and-sale agreement with the seller in December 2007. The agreement contained an inspection contingency. At the recommendation of defendant, plaintiffs then hired engineers to perform a pre-purchase structural inspection of the property, and received an inspection report in late January 2008. The sale closed in May 2008. In September, after encountering various problems relating to the condition of the inn, plaintiffs sued defendant for negligence and consumer fraud for defendant's alleged misrepresentations and omissions concerning the condition of the inn. Plaintiffs and defendant filed cross-motions for summary judgment. On the claim of negligence, the trial court granted summary judgment to defendant. As to the claim of consumer fraud, the court considered, among other things, defendant's alleged failure to disclose the contents of her conversation with the prior-prospective purchaser and to disclose the estimate of roof repair costs that was in her files. The court concluded that the statements from the prior-prospective purchaser were "simply too vague and foundationless to give rise to knowledge of specific material facts that [defendant] would have a duty to disclose" under the Consumer Fraud Act. The court further concluded that defendant's failure to disclose the roof-repair estimate was not a material omission because plaintiffs "already knew the roof needed repairs" from the engineer's report, and disclosure "would have left them in the same position in which the report placed them; needing to make further inquiry." Thus, the court concluded that the estimate "cannot be considered material as a matter of law," and granted judgment to defendant. Plaintiffs appealed. Finding no reversible error in the trial court's decision with regard to the consumer protection claim, the Vermont Supreme Court affirmed. View "PH West Dover Property, LLC. v. Lalancette Engineers" on Justia Law

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The parties were adjoining property owners in the Town of Brandon. Michael and Jirina Obolensky owned forty acres of land, on which they operated a bed-and-breakfast in a large Victorian house located at the lower eastern end of the property. Although not directly visible from their house, there was a beautiful view of the mountains from the highest part of the land, accessible by walking from the house uphill through a field. The adjoining property owners were Robert and Sandra Trombley, who purchased 3.7 acres of land, and shortly after purchasing their parcel, built a home on the lot. The Trombleys' lot was at the top of the rise, adjacent to the Obolenskys' field; the Trombleys had a direct view of the mountains. Soon after the Trombleys built their home, the Obolenskys commissioned a surveyor to conduct a boundary survey. In fall 2007, Mrs. Obolensky placed "no trespassing" signs on a location that she believed (based on the survey) was within her lot. The signs were placed at a location eight feet within an area also claimed by the Trombleys, who had mowed the lawn in the area. A dispute followed, culminating in a call to the police. The police permitted Mr. Trombley to remove the signs that the Obolenskys had placed on the lawn. The Obolenskys subsequently filed suit to determine the boundary, and also raised claims of trespass. The superior court issued an order resolving the underlying case based on the parties' stipulation. Among other things, the stipulated order: (1) established an agreed-upon boundary line based on a survey done by the Trombleys' surveyor; (2) called for an independent surveyor to mark the boundary corners; and (3) provided that the parties "shall each be entitled to erect and maintain any fence allowed by law." The Oblenskys appealed the superior court's order requiring them to alter what the court called a "spite fence" on the Trombleys' land, and challenged the court's judgment concerning its claims of trespass. Finding no reversible error in the superior court's judgment, the Supreme Court affirmed. View "Obolensky v. Trombley" on Justia Law

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Plaintiff Birchwood Land Company appealed a Superior Court decision denying Birchwood's motion for attachment and granting defendant Judith Krizan's motion to dismiss for failure to state a claim. Birchwood's complaint alleged that Krizan was unjustly enriched by Birchwood's construction of an access road and other infrastructure to her property such that she was able to develop the property without contributing to the cost of the improvements. Upon review, the Supreme Court agreed that the complaint failed to state a claim upon which relief can be granted and affirmed. View "Birchwood Land Company, Inc. v. Krizan" on Justia Law

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Defendants Barrett and Linda Gregoire, sought to amend or set aside judgments of foreclosure in favor of plaintiff bank based on claims of fraud and misrepresentation. The dispute underlying this case concerned four multi-family rental properties: three in Washington County and one in Caledonia County that were part of defendants' rental-property business. The bank's loans to defendants were secured by the properties and were cross-collateralized with each other. In March and April 2010, the bank filed foreclosure complaints with respect to the properties. The parties executed a forbearance agreement under which defendants retained control of the properties as landlords, but the tenants were to pay rent directly to the bank. The parties stipulated to the appointment of a receiver to collect rent for the bank. The receiver filed a report with the court stating that defendant Barrett Gregoire was renting to new tenants and collecting rents and security deposits without turning over the funds to the receiver. Shortly thereafter, the bank filed an emergency motion to enforce the receivership order based on allegations that defendant Barrett Gregoire was substantially interfering with the receivership. The court issued a supplemental order, expanding the receiver's authority and placing the receiver in full control of the properties. The bank notified the court that the forbearance was no longer in place, and that it would proceed with foreclosure. The trial court denied the Gregoires' motions to set aside the trial court's grant of the bank's motions. On appeal, defendants argued that there was no final judgment so the order could have been amended without resort to post-judgment proceedings, and even if it was a final order, the court erred in denying their request for relief and in entering judgment of default. Finding no reversible error in the trial court's decision, the Supreme Court affirmed. View "TBF Financial, LLC v. Gregoire" on Justia Law

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Taxpayer Blimar Team Cleaners appealed a superior court decision to uphold the Burlington Board of Tax Appeals' appraisal of its property at 150 Shelburne Road in Burlington at a value of $193,500. Taxpayer contended on appeal that: (1) there was sufficient evidence that the property was not assessed at fair market value to overcome the city appraisal's presumption of validity; and (2) the City of Burlington failed to meet its burden of proof demonstrating the property was assessed at fair market value. Finding no reason to disturb the appraisal or the superior court's decision, the Supreme Court affirmed. View "In re Bilmar Team Cleaners" on Justia Law

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Plaintiff Kathleen Langlois owned a building with commercial space on the first floor and an apartment on the second. She failed to pay the water bill for the property. Plaintiff alleged that she arranged with a representative of the Town of Proctor to disconnect the water service so she would not incur further water expenses, but that the Town failed to do so. In reliance on the Town's promised undertaking, plaintiff discontinued heating the building, causing the pipes containing water to freeze and split under the first floor of the building, which, in turn, flooded the first floor and basement, causing extensive damage to the building. Plaintiff brought this action with four counts: negligence, breach of contract, consumer fraud, and negligent misrepresentation. With respect to the negligence count, the Town argued that it had no duty to disconnect the water service or to disconnect the service with reasonable care or, alternatively, that any duty was based on its contractual obligations and could not give rise to tort liability. With respect to the contract claim, the Town argued that it had no contractual obligation to disconnect the water service and that it was exercising its right under a statutory delinquency collection procedure. It further argued that the contractual relationship between plaintiff and the Town was terminated when plaintiff failed to pay her water bill. The case was then tried before a jury, which rendered a verdict for plaintiff. In answering the special interrogatories, the jury found that there was a contract between plaintiff and the Town "regarding the turning off of her water service," but that the Town had not breached that contract. It found that the Town was negligent, that its negligence was a proximate cause of harm to plaintiff, and that plaintiff's damages were $64,918.44. Among the things the Town argued on appeal, it argued that the court should have instructed the jury to apply comparative negligence, and that the instructions on damages were erroneous because the proper measure of damages was the diminution in value of the building and, in any event, there was no evidence of that diminution. Plaintiff cross-appealed, arguing that the jury instructions improperly failed to allow the jury to find that the Town breached its duty of good faith and fair dealing. The Supreme Court rejected the Town's argument on appeal that it had no tort duty to properly turn off plaintiff's water. However, the Court found that the trial court erred in instructing the jury: "the instructions as a whole did not contain the spirit of the law. If we could determine from the damages award or the interrogatories that the jury found that plaintiff was not negligent and was not obligated to mitigate damages, we could find an absence of prejudice. We cannot do so here; the damages awarded by the jury were less than plaintiff claimed." On remand, the trial court was ordered to instruct the jury on comparative negligence. Because of the defect in the jury instructions, the Court did not address the remaining issues on appeal. The case was reversed and remanded for a new trial. View "Langlois v. Town of Proctor" on Justia Law

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This appeal ended a longstanding feud stemming from plaintiff David Ring's renovation of his condominium units, resulting in multiple legal proceedings and several superior court decisions. Ring argued in this appeal that the superior court erred in awarding him only a fraction of his requested attorney's fees after determining, after a lengthy bench trial, that defendants the condominium owners' association and some of its individual members had breached the covenant of good faith and fair dealing implied in the parties' earlier settlement agreement. He also argued that the court erred in denying his request for pre-litigation attorney's fees and prejudgment interest. Defendant Donna Beck cross-appealed, arguing that the court erred in assessing punitive damages against defendants and holding her liable for punitive damages attributable to her deceased husband, defendant Edward Morrison, based on her real estate partnership with him. After careful consideration of the parties' arguments on appeal, the Supreme Court found no reversible error, and affirmed the superior court's decisions. View "Ring v. Carriage House Condominium Owners' Association" on Justia Law

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The issue this case presented for the Supreme Court's review involved the power of a court to require an estate to create a trust to satisfy potential future claims against the estate, as well as the proper application of the dead man's statutes. Developers of a residential subdivision died, triggering various claims by and against their estates relating to the estates' responsibilities for the subdivision's private roadway, water, and sewer infrastructure. The Town of Manchester appealed a superior court decision denying the Town's request that the court create a trust from the assets of the estates to pay for repairs, maintenance, and improvements to the subdivision's sewer system to protect the Town's water supply. A group of homeowners separately appealed the trial court's denial of their request for a ruling that the estates had a legal obligation to dedicate the infrastructure to the Town and, until that happened, to maintain the infrastructure at their expense. After careful consideration of the parties' arguments and the applicable statutes and Vermont case law, the Supreme Court affirmed the superior court's refusal to create the trust requested by the Town, but reversed the court's denial of the homeowners' request for a ruling on their claims. The case was remanded for reconsideration of those claims based on the evidence, including evidence that the trial court previously excluded under the dead man's statute, to determine whether an enforceable promise was made concerning maintenance of the infrastructure pending its dedication to the Town. View "Hayes v. Town of Manchester" on Justia Law

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Petitioners Garfield and Lucille Goodrum owned 41.54 acres in Reading; all but two acres of land surrounding their home was enrolled in the UVA Program as undeveloped forest land. The Goodrums formed Turtle Hill Farm of Vermont Animal Sanctuary, Inc. (THF), a non-profit corporation whose mission is to rescue, rehabilitate, foster, and adopt out animals, including horses, chickens, rabbits, and guinea pigs. The Goodrums leased four barns and two sheds to THF. THF is funded almost exclusively by donations, which it uses to cover its operating expenses. Most of the donations come from the Goodrums. In 2010, the Goodrums applied to enroll the barns and sheds leased to THF in the UVA Program, which would exempt the buildings from property taxation, but the Department of Taxes Division of Property Valuation and Review (PVR) determined that the buildings were ineligible. The Goodrums appealed to the Director of PVR, who also determined that the buildings were ineligible. The Goodrums then appealed to the superior court, and both parties moved for summary judgment. The court granted PVR's motion, concluding that the buildings are not eligible for enrollment because THF did not operate for gain or profit and is therefore not a farmer under 32 V.S.A. 3752(7). The Goodrums appealed. Finding no reversible error, the Supreme Court affirmed. View "Goodrum v. Vermont Department of Taxes" on Justia Law

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This case raised the issue of whether Act 250 required consideration of alternative siting in every case in which a party objects to a proposed land-use project on aesthetic grounds, pursuant to 10 V.S.A. 6086(a)(8), without regard to the presence of competent evidence supporting alternative siting as a reasonable mitigating measure. Goddard College obtained an Act 250 permit from District Environmental Commission No. 5 in 2012, authorizing it to replace individual oil-fired systems in each of twenty-three campus buildings with a new central woodchip boiler system on its campus in Plainfield. Appellant-neighbor Karen Bouffard challenged the Superior Court's grant of the Act 250 permit, arguing that the court failed to properly consider measures to mitigate the aesthetic impact of the project by siting it elsewhere on the college property. Finding no reversible error, the Supreme Court affirmed. View "In re Goddard College Conditional Use, Goddard College Act 250 Reconsideration" on Justia Law