DE Human and Civil Rights Commission & Cahill v. Welch & Yu

Superior Court of Delaware·Decided August 5, 2025·No. N24C-12-088 KMM·Published

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

DELAWARE HUMAN AND CIVIL ) RIGHTS COMMISSION, )

)

Plaintiff ex. rel., )

)

ELAINE CAHILL, ) C.A. No. N24C-12-088 KMM )

Relator, )

)

v. )

)

CHRISTINE WELCH, ELMER YU and ) WILMA YU, )

)

Defendants. )

Date submitted: June 5, 2025 Date decided: August 5, 2025

Upon defendants’ motion to dismiss: GRANTED.

MEMORANDUM OPINION

Matthew B. Frawley, Esquire, (argued) STATE OF DELAWARE DEPARTMENT OF JUSTICE, Wilmington, Delaware, attorney for plaintiff.

Brian V. DeMott, Esquire, (argued) MCCOLLOM D’EMILIO SMITH UEBLER LLC, Wilmington, Delaware, attorneys for defendants.

I. INTRODUCTION

Shortly after Elaine and James Cahill (the “Cahills”) purchased a home in the Wilmington neighborhood of Boulder Brook Development (the “Development”), they erected a six-foot stockade fence around the backyard. The Development is subject to a deed restriction which prohibits the erection of any fence without prior approval of 1/3 of the residents in the Development, including the residents of each contiguous or adjacent lot. If approval is obtained, the fence must be “open face” and no more than four feet.

The Cahills did not seek approval before erecting the fence. The adjacent residents, Elmer and Wilma Yu (the “Yus”) and Christine Welch (“Welch”), objected to the fence. When the Cahills refused to remove it, the Yus and Welch filed a petition in the Court of Chancery seeking a declaration that the fence violated the deed restriction and a mandatory injunction compelling its removal.

After the action proceeded for over six months, the Cahills asserted that the fence was a reasonable accommodation for their ongoing health issues, as provided in the Delaware Fair Housing Act (“Fair Housing Act” or the “Act”). Thereafter, the Cahills moved to stay that action to allow them time to pursue a claim with the Delaware Human and Civil Rights Commission (the “Commission”) for violation of the Act. The stay was denied.

After the Senior Magistrate issued a Final Report ruling in favor of the petitioners and ordering removal of the fence, the Commission filed this action. The Commission claims that the Court of Chancery petitioners (defendants here) violated the Fair Housing Act by continuing to pursue that action after they learned of the Cahills’ need for a reasonable accommodation. The Court of Chancery action is now stayed pending resolution of this case.

The Commission, on behalf of Elaine Cahill, seeks an injunction, a finding that the fence is a reasonable accommodation which supersedes the deed restriction, and an award of damages.

The defendants move to dismiss, arguing that this Court lacks subject matter jurisdiction, the action is barred by the Noerr-Pennington doctrine and the statute of limitations, and the complaint fails to state a claim.

The Commission argues that the Fair Housing Act grants this Court authority to issue an injunction. While creative, the argument misconstrues the statute. The Court of Chancery has exclusive jurisdiction to issue injunctions. Therefore, the Commission’s claim for an injunction is DISMISSED.

The Noerr-Pennington doctrine, which flows from the First Amendment, protects parties against liability for seeking redress from the government, including the courts. The defendants exercised their right to petition the government and sought relief in the Court of Chancery. No exception to the doctrine applies, and

therefore, this action is barred by the Noerr-Pennington doctrine.1 The motion to dismiss is GRANTED.

II. FACTUAL AND PROCEDURAL BACKGROUND A. The Court of Chancery Action2 The Development has been subject to a deed restriction since 1945, as later amended (the “Deed Restriction”).3 Section 2 provides, in pertinent part:

APPROVAL OF PLANS. No . . . , fence . . . shall be . . . erected, . . .

until reasonable plans and specifications have been submitted to and approved in writing by one third or more of the residents of Boulder Brook Development, which approvals shall include approval by a majority of residents residing on each contiguous or adjacent lot. Each resident of Boulder Brook Development shall have the right to refuse to approve any such plans or specifications for any reason.4

Section 7 of the Deed Restriction provides: “FENCES. No fence other than an open fence, and no fence of any kind more than 4 feet in height, shall be erected or maintained upon such lands and premise.”5

1 Accordingly, the Court does not reach the remainder of the defendants’ arguments. 2 The factual recitation is derived from the complaint in this action and the Court of Chancery action. Because this action relies on the allegations and pleadings in the Court of Chancery case, the proceedings in that action are incorporated by reference into this complaint, and the Court may consider them on a motion to dismiss. See Vanderbilt Income & Growth Assocs., L.L.C. v. Arvida/JMB Managers, Inc., 691 A.2d 609, 613 (Del. 1996); Doe 30’s Mother v. Bradley, 58 A.3d 429, 443 (Del. Super. 2012). The Court also takes judicial notice of the Chancery Court proceedings, but only to the extent a fact is undisputed. See D.R.E. 201; see also MidFirst Bank v. Mullane, 2022 WL 4460810, at *6, n.3 (Del. Super. Sept. 26, 2022).

Documents from the Court of Chancery case, 2022-0014-SEM, are cited as “SEM-D.I. __”. Documents from the docket in this action are cited as “D.I.___”. 3 D.I. 1, (Complaint) ¶ 6. 4 Id.; SEM-D.I. 66, (Magistrate’s Final Report) p. 4. 5 D.I. 1, ¶ 7.

In September 2021, the Cahills purchased a home in the Development, situated between the Yus and Welch.6 Shortly after moving in, the Cahills constructed a 6-foot “‘closed’ privacy fence” (the “Fence”).7 The Cahills did not seek approval before erecting the Fence.8 The Yus and Welch objected to the Fence and advised the Cahills that if it was not removed, they would initiate an action in the Court of Chancery.9 The Cahills did not remove the Fence, and the Yus and Welch (the “Chancery Petitioners”) filed a petition in the Court of Chancery on January 5, 2022 (Case No. 2022-0014) (the “Chancery Action”). The petition requested a declaration that the Fence violated the Deed Restriction and a mandatory injunction compelling the Cahills to remove it.10 On April 11, 2022, the Cahills answered the petition, admitting to some violations and asserting several affirmative defenses, none of which raised reasonable accommodations.11 In late July 2022, the Cahills asserted that they were disabled, and the Fence was a reasonable accommodation under the Fair Housing Act.12 The Chancery Petitioners continued prosecuting the Chancery Action.

6 Id., ¶¶ 3-5. 7 D.I. 6, (Mot. To Dismiss) Ex. A, ¶ 5. 8 SEM-D.I. 66, p. 7. 9 D.I. 6, Ex. G. 10 SEM-D.I. 1, (Petition) p. 6. 11 See SEM-D.I. 13 (Respondents’ Answer). 12 D.I. 6., Ex. A., ¶ 10.

On November 14, 2022, the Cahills provided the Chancery Petitioners with two identical doctor’s notes, dated October 12, 2022, stating that the Cahills “[had] been fully examined with medical history review and [have] been determined to be permanently disabled.”13 The Chancery Petitioners continued prosecuting the Chancery Action after receipt of the notes.14 On January 9, 2023, the Cahills demanded that the Chancery Petitioners “cease their lawsuit immediately” and provided two additional identical doctor’s notes, dated January 6, 2023. The Cahills threatened to file a complaint with the Commission and a motion to stay the Chancery Action if it was not voluntarily stayed.15 The January 6 notes identified health conditions from which the Cahills suffered and declared that:

The 6 foot privacy fence is necessary for James and Elaine to live in the community and use and enjoy their dwelling by:

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