Justia Vermont Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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Plaintiffs James and Elise Brault appealed a trial court's order granting judgment to defendant Jeanne Welch in a dispute over a right-of-way. The deed in question purported to convey "a right of way five feet wide leading to the lake along the existing block wall and southerly thereof." The court found this language unambiguous. Its plain meaning was that the right-of-way was located on the south side of the block wall. The court explained that the words "southerly thereof" modified the term right-of-way, and it found this interpretation strongly reinforced by the word "thereof," which meant "of that" or "concerning that." In arguing that the right-of-way had to be located on the northern side of the block wall, the Braults asserted that the words "southerly thereof" modified the words "the existing block wall," that is, the block wall was "southerly" of the right of way. The court found this to be an unreasonable interpretation of the deed language, and one that was inconsistent with how English was spoken and read. The Braults maintained that language in the original deed from the Griffiths to their son and daughter-in-law, "southerly thereof" must mean that the right-of-way was actually northerly of the block wall, primarily because a location northerly of the wall avoided any encroachment over the property line with the neighboring lot. The difficulty with the Braults' argument, the court explained, was that it violated the parol evidence rule. The court found that the question of the circumstances that might have produced the disputed provision in the deed also suffered from a shortage of evidence. Because the exact dimensions of the Welch lot were not established, the court found that it was not known whether the block wall marked the exact boundary on the south side of the lot. Nor could the court discern what circumstances led to the use of the word "southerly thereof" due to "a shortage of evidence." The court concluded that the Braults failed to meet their burden of proof, and it entered judgment in Welch's favor. On appeal to the Supreme Court, the Braults maintained that the trial court should have found the description of the right-of-way to be ambiguous because it was a simple scrivener's error that misstated which side of the wall the easement is on. Finding no error, however, the Supreme Court affirmed the trial court. View "Brault v. Welch" on Justia Law

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This case arose following a fire that destroyed a commercial building in Rutland in 2010. Plaintiff Johnathan Lasek leased the northern half of the building and used the space as a workshop for his house-staining business. He stored staining products and other equipment and constructed a business office in the northeastern corner of the building. The southwestern corner of the building contained a fully enclosed room that was occupied by another commercial tenant, Vermont Vapor Inc. (VVI). The remainder of the building was used by landlord Downing Properties, LLC, as storage for ATVs, motorcycles, and snowmobiles. VVI used its space as a laboratory for mixing the liquid filler for electronic cigarettes. VVI owner Adam Tredwell and his father Warren altered the room to Adam's specificationsm, adding sheetrock and other materials to create a “clean room.” He also installed an eight-inch fan on the south wall of the laboratory that vented to the outside of the building. An industrial space heater was suspended from the rafters of the warehouse, above the ceiling of the laboratory. The Tredwells connected the heater to a propane tank so that they could heat the space in the winter months. Warren was the last person in the laboratory the night before the fire. When firefighters arrived shortly after the fire was reported, the northwest corner of the building (plaintiff's corner) had a large hole in the roof and was heavily engulfed in flames. VVI's corner was not on fire at that time. Plaintiff sued VVI for negligence and strict liability, alleging that VVI had caused the fire by mishandling liquid nicotine. He also sued landlord for breach of the implied warranty of suitability for commercial use, negligence, breach of the duty to warn, and unjust enrichment. After plaintiff's presentation of his case, the trial court granted defendants' motion for judgment as a matter of law. This appeal followed. Plaintiff claimed that the trial court erred: (1) in excluding the testimony of plaintiff's expert witness on causation; (2) in granting defendants' motion for judgment as a matter of law; (3) in excluding an eyewitness's statements to police; (4) by denying plaintiff's motion for a new trial; (5) by awarding all deposition costs to defendants; and (6) in refusing to disqualify counsel for defendant-landlord. Upon review, the Supreme Court affirmed the trial court's decision in all respects, with the exception of the award of deposition costs. View "Lasek v. Vermont Vapor, Inc." on Justia Law

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Defendants appealed their convictions for unlawful trespass. Green Mountain Power Corporation (GMP) is an electric utility that operates several wind-power sites throughout Vermont. Construction required cutting trees, excavating, and blasting rock to produce a "crane road" on which the turbines could be erected by crane. Because a portion of the crane road would be within 100 feet of the GMP's leased property's boundary line, some blast safety zones actually extended into neighboring land owned by Donald and Shirley Nelson, who strongly opposed the project. The Nelsons allowed a group to protest the wind-power site by setting up camp on the portion of the Nelsons' land that fell within a blast safety zone. This prompted GMP and its blasting subcontractor to increase their safety measures, risking a delay of construction of more than five weeks and threatening GMP's eligibility for the federal tax credits. In Fall 2011, GMP initiated a civil suit against the Nelsons for nuisance and interference with contract. While the suit was pending, Defendants passed through an existing property line and entered a portion of the crane-road construction site located on land disputed by the Nelsons and GMP. GMP halted construction, and a representative asked defendants to leave. Although aware of the boundary dispute, defendants refused to leave, claiming permission from the Nelsons, who they maintained owned the disputed land. GMP then contacted local police, who arrived at the scene and asked defendants to leave. Defendants again refused and were arrested. Upon review, the Supreme Court concluded that the trial court did not abuse its discretion by not dismissing the case in the interests of justice. View "Vermont v. Gillard" on Justia Law

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Plaintiff Janet Knutsen appealed a superior court decision to deny her motion for summary judgment and and for granting defendant Vermont Association of Realtors, Inc.'s (VAR) motion for summary judgment on her consumer fraud claim arising out of her purchase of a home in Moretown. Plaintiff argued that VAR's form purchase and sale agreement, which was used in her real estate purchase (to which VAR was not a party) violated the Vermont Consumer Fraud Act (CFA) in that two provisions of the form were unfair and deceptive, and that she was therefore entitled to damages under section 2461(b) of the CFA. Upon review of the facts of this case, the Supreme Court concluded that the trial court correctly held that 'VAR's sole connection to this case was its drafting of the template clauses that [plaintiff] and her buyer's broker used for the purchase of the house, and that could not support a consumer fraud claim. View "Knutsen v. Dion" on Justia Law

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The issue before the court in this case arose from a proposed housing development in West Woodstock. In a prior case involving this development, the Supreme Court affirmed permits for the project granted by the town development review board and the district environmental commission and affirmed by the environmental division of the superior court. In this appeal, brought by the owners of abutting properties to the land in question, more narrow questions related to easements and other property rights were brought before the court. After review of the trial court record and the arguments presented by the parties, the Supreme Court affirmed in part and reversed in part. View "Roy v. Woodstock Community Trust, Inc." on Justia Law

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Taxpayer Brownington Center Church of Brownington, Vermont (now known as New Hope Bible Church and Ministries, Inc.) (the Church)), appealed a Superior Court determination that certain land and buildings owned by the Church were not exempt from real estate taxes for the tax year commencing April 1, 2009 under 32 V.S.A. 3832(2). The parties did not dispute that the property was dedicated for pious use and that it is owned and operated by the Church as a nonprofit organization. The issue was whether the property was excluded from the pious-use exemption of section 3802(4) by the language in section 3832(2). The Church argued that the property qualified for exemption, primarily because everything that occurred on the property facilitated its religious ministry and that “worship and service of the Believer in Christ” takes place everywhere on the premises. Under this belief, the Church maintains that the steel equipment building, the cabins, kitchen and the tent, are all church edifices. It defines “church edifice” to be a “structure or facility that is used exclusively or primarily to propagate a religious message to persons who receive that message for a worshipful purpose.” It contended that an overnight summer camp for religious purposes transformed the entire property into a place of worship and education. The Supreme Court disagreed and affirmed the Superior Court. View "Brownington Center Church v. Town of Irasburg" on Justia Law

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Plaintiffs Peter and Nicole Dernier appealed the dismissal of their action for: (1) a declaratory judgment that defendant U.S. Bank National Association could not enforce the mortgage and promissory note for the debt associated with plaintiffs' purchase of their house based on irregularities and fraud in the transfer of both instruments; (2) a declaration that U.S. Bank has violated Vermont's Consumer Fraud Act (CFA) by asserting its right to enforce the mortgage and note; and (3) attorney's fees and costs under the CFA. They also appealed the trial court's failure to enter a default judgment against defendant Mortgage Electronic Registration Systems, Inc. (MERS). Plaintiffs fell behind on their mortgage, and brought suit against two parties: Mortgage Network, Inc. (MNI), which is in the chain of title for both the note and the mortgage, and MERS, which is in the chain of title for the mortgage as a "nominee" for MNI. Plaintiffs sought a declaratory judgment that the mortgage was void, asserting that: (1) MERS, as a nominee, never had any beneficial interest in the mortgage; (2) MNI had assigned its interest in both instruments to others without notifying plaintiffs; and (3) no party with the right to foreclose the mortgage had recorded its interest. MNI responded that plaintiffs had named MNI as a party in error, because MNI did "not own the right to the mortgage in question." MERS did not respond. Around this time, plaintiffs received a letter in which U.S. Bank represented that it possessed the original promissory note and mortgage and that it had the right to institute foreclosure proceedings on the property. The trial court denied plaintiffs' motion to amend and dismissed plaintiffs' case for failure to state a claim. Plaintiffs appealed. After careful consideration of the trial court record, the Supreme Court concluded the trial court erred in dismissing Counts 1 and 2 of plaintiffs' amended complaint for lack of standing, to the extent that these counts alleged irregularities in the transfer of the note and mortgage unconnected to the pooling and servicing agreement. The Court affirmed as to dismissal of Counts 3 and 4 of plaintiffs' proposed amended complaint. The case was remanded for further proceedings. View "Dernier v. Mortgage Network, Inc." on Justia Law

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Applicant Charles Ferrera and property owners Ronald and Susan Fenn appealed a Superior Court, Environmental Division order that affirmed the Town of Middlebury's denial of their application to operate a gravel pit. Applicants contended: (1) several key findings and conclusions were unsupported by the evidence; and (2) provisions of the Town's zoning regulations are unconstitutionally vague. Finding no error, the Supreme Court affirmed. View "In re Ferrera & Fenn Gravel Pit" on Justia Law

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The Probate Court appointed Theodore Ballard's niece, Leala Bell, as Ballard's guardian. Bell signed a promissory note to a mortgage as a "borrower"; she did not expressly indicate that she was signing as Ballard's guardian or that her signature indicated only her "approval" of Ballard's action. The loan was secured by a mortgage on Ballard's real property. The mortgage deed granted and conveyed Ballard's property to CitiFinancial, including the power to sell the property. Ballard signed the mortgage deed but Bell did not. There was no showing that the probate court licensed the mortgage. CitiFinancial alleged that Ballard had failed to make the payments called for under the note and mortgage, and therefore breached these agreements. Ballard moved for summary judgment, arguing in relevant part that he lacked the legal capacity to execute a mortgage deed and promissory note while he was under guardianship. Upon review, the Supreme Court found that Ballard's argument relied on the notion that Bell participated in the transaction with CitiFinancial, subjected herself to personal liability as a cosigner of the note, signed the settlement statement as well as the promissory note, but did not actually approve Ballard's signing of the note. Although the mortgage deed purportedly executed by Ballard and the promissory note secured by that deed were executed as part of the same overall transaction, the two documents created distinct legal obligations. The Supreme Court concluded that the trial court erred in analyzing the note and mortgage as if they were one and the same, both subject to the requirement of probate court approval. Therefore the Court reversed the award of summary judgment to Ballard on CitiFinancial's claim on the promissory note and remanded the case back to the trial court for further proceedings on that claim. View "CitiFinancial, Inc. v. Balch" on Justia Law

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The question in this case was whether the trial court's dismissal of plaintiff's eviction action on account of her lawyer's failure to attend a scheduled status conference can withstand a motion to set aside the judgment pursuant to Vermont Rule of Civil Procedure 60(b) given the facts of this case. After careful review of those facts, the Supreme Court concluded that it could not and reversed. View "Ying v. Heide" on Justia Law