Agency of Transportation v. Timberlake Associates, LLC (R.L. Vallee, Inc. and Crystal Clear Hospitality, LLC, Appellants)

2024 VT 14, 315 A.3d 967
CourtSupreme Court of Vermont
DecidedMarch 8, 2024
Docket23-AP-059
StatusPublished
Cited by3 cases

This text of 2024 VT 14 (Agency of Transportation v. Timberlake Associates, LLC (R.L. Vallee, Inc. and Crystal Clear Hospitality, LLC, Appellants)) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Agency of Transportation v. Timberlake Associates, LLC (R.L. Vallee, Inc. and Crystal Clear Hospitality, LLC, Appellants), 2024 VT 14, 315 A.3d 967 (Vt. 2024).

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: JUD.Reporter@vermont.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2024 VT 14

No. 23-AP-059

Agency of Transportation Supreme Court

On Appeal from v. Superior Court, Chittenden Unit, Civil Division

Timberlake Associates, LLC et al. October Term, 2023 (R.L. Vallee, Inc. and Crystal Clear Hospitality, LLC, Appellants)

Samuel Hoar, Jr., J.

Charity R. Clark, Attorney General, Montpelier, and Mark A. Seltzer, Assistant Attorney General, Barre, for Plaintiff-Appellee.

Alexander J. LaRosa and Daniel A. Seff (On the Brief) of MSK Attorneys, Burlington, for Defendants-Appellants.

PRESENT: Reiber, C.J., Eaton, Carroll, Cohen and Waples, JJ.

¶ 1. WAPLES, J. Defendants R.L. Vallee, Inc., and Crystal Clear Hospitality, LLC

(CCH), appeal a civil division order concluding that they accepted and used payments issued by

the Vermont Agency of Transportation in connection with a judgment of condemnation and are

therefore barred from further contesting the necessity of the taking or the public purpose of the

Agency’s highway project under 19 V.S.A. § 506(c). They argue that the trial court erred in

granting summary judgment to the Agency on this basis because: the question of whether their

actions with respect to the Agency’s initial payments gave rise to the § 506(c) bar became moot

when the Agency subsequently revised the valuations of their property interests; those actions did not constitute “use” under § 506(c); they raised a genuine dispute of material fact; the Agency bore

the burden to show that defendants knowingly, intelligently, and voluntarily waived their rights

under § 506(c) and failed to do so; and § 506(c) is unconstitutional on its face and as applied. We

affirm.

¶ 2. The record indicates the following. In connection with its plans to reconstruct the

I-89 interchange with U.S. Routes 2 and 7 at Exit 16 in Colchester, the Agency sought to obtain

certain rights in nearby property. Chapter 5 of Title 19 sets forth the procedures the Agency must

use to condemn property rights for a state highway project. See 19 V.S.A. §§ 500-520. Under the

statute, if a property owner “has not entered into an agreement stipulating to the necessity of a

taking and the public purpose of a highway project, and the Agency wishes to proceed with the

taking,” the Agency must “file a verified complaint in the Civil Division of the Superior Court in

a county where the project is located seeking a judgment of condemnation” which “name[s] as

defendants each property owner who has not stipulated to a proposed taking.” 19 V.S.A. § 504(a).

In the resulting civil action, the owner “has the right to challenge the taking by contesting the

necessity of the taking, the public purpose of the project, or both.” Id. § 503(d)(4). If the trial

court finds the proposed taking lawful, it must issue a judgment of condemnation declaring that

title to the property will be transferred to the Agency after the Agency complies with certain

statutory requirements, including tendering or depositing payment. Id. § 505(c). The judgment of

condemnation may be appealed to this Court, but, under § 506(c), “an owner’s acceptance and

use” of the Agency’s payment “shall bar the owner’s right to contest necessity and public purpose.”

Id. § 506(c), see also id. § 505(e).

¶ 3. The Agency initiated the underlying proceedings in June 2019 by filing a complaint

under § 504(a). CCH was named as a defendant, but Vallee—which leases the right to use a

driveway on which the Agency plans to perform construction—was not. Vallee moved to

intervene and, on appeal from the civil division’s denial of that motion, we held that Vallee was

2 entitled to be named as a defendant in the Agency’s condemnation action as the owner of a legal

interest of record in property proposed to be taken that had not stipulated to the taking. Agency of

Transp. v. Timberlake Assocs., 2020 VT 73, ¶¶ 16-18, 213 Vt. 106, 239 A.3d 253. As a result, in

November 2020 the Agency amended its complaint to add Vallee as a defendant.

¶ 4. The amended complaint identified the Agency’s highway project as

“Transportation Project Colchester HES NH 5600(14)” and described each of the property rights

proposed to be acquired by parcel. CCH owns Parcel 9, which houses the Hampton Inn and

Lighthouse Restaurant and Lounge, while the driveway Vallee leases the right to use is located on

Parcel 14.

¶ 5. After an evidentiary hearing held over the course of four days, the civil division

issued a written decision concluding that no defendant demonstrated bad faith or abuse of

discretion in the Agency’s determination of the necessity for and public purpose of the project,

and the Agency had satisfied its burden of demonstrating the need to take the particular property

interests at issue to the extent proposed. See 19 V.S.A. § 505(a)(3) (“The court shall presume that

the Agency’s determination of the necessity for and public purpose of a project is correct, unless

a party demonstrates bad faith or abuse of discretion . . . . The court shall review de novo the

Agency’s determination of the need to take a particular property and to take it to the extent

proposed.”). Having found the proposed taking lawful, the civil division issued a judgment of

condemnation on February 25, 2022, providing that the land and rights at issue would be

transferred to the Agency after the Agency recorded the judgment in the Colchester land records,

tendered or deposited payment of its offers of just compensation, and notified the owners of the

recording and payment. The judgment order contained the following warning pertaining to the

statutory provision at issue in this appeal:

In accordance with 19 V.S.A. § 506(c), except in the case of agreed compensation, an owner’s acceptance and use of [the Agency’s] payment of its offer of just compensation does not affect his or her

3 right to contest or appeal damages under 19 V.S.A. §§ 511-513, but shall bar the owner’s right to contest necessity and public purpose.

¶ 6. Vallee, CCH, and one other defendant appealed the judgment of condemnation to

this Court on March 9, 2022. Vallee and CCH each filed docketing statements reflecting an intent

to challenge the civil division’s conclusions as to necessity and public purpose. The Agency

moved to dismiss Vallee and CCH from the appeal or, in the alternative, to stay the appeal and

remand to the civil division for the purpose of making additional factual findings with respect to

whether actions taken by Vallee and CCH upon receiving the Agency’s payments gave rise to the

§ 506(c) bar. We granted the latter request and remanded with instructions “for the civil division

to make additional relevant factual findings and issue an order concerning whether either

appellant’s actions following the civil division’s final judgment constitute ‘acceptance and use’ of

payment pursuant to § 506(c).”

¶ 7. On remand, the parties agreed that the issue could be resolved on summary

judgment and the Agency so moved. Vallee and CCH opposed the motion, arguing that: (1) the

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2024 VT 14, 315 A.3d 967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/agency-of-transportation-v-timberlake-associates-llc-rl-vallee-inc-vt-2024.