Funtown, USA, Inc. v. Town of Conway

499 A.2d 1337, 127 N.H. 312, 1985 N.H. LEXIS 445
CourtSupreme Court of New Hampshire
DecidedOctober 24, 1985
DocketNo. 84-159
StatusPublished
Cited by14 cases

This text of 499 A.2d 1337 (Funtown, USA, Inc. v. Town of Conway) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Funtown, USA, Inc. v. Town of Conway, 499 A.2d 1337, 127 N.H. 312, 1985 N.H. LEXIS 445 (N.H. 1985).

Opinion

Brock, J.

The defendant, the Town of Conway, appeals from that part of a superior court order that granted the plaintiff, Fun-town, USA, Inc., the right to construct a water slide in North Conway and enjoined the town from interfering with its construction. The only issues before us are whether damages for inverse condem[313]*313nation and attorney’s fees should have been awarded to the plaintiff. We affirm in part and reverse in part.

In March 1982, the plaintiff appealed to the superior court a decision of the Conway Zoning Board of Adjustment denying its application for a building permit. Plaintiff also, in March 1982, filed a petition for declaratory judgment requesting a determination of the rights of the parties. RSA 31:77. During the pendency of the appeal, an amendment to the Conway Zoning Ordinance was adopted which barred the construction of water slides in Conway. Plaintiff’s zoning appeal was consolidated for trial with its petition for declaratory judgment challenging the constitutionality of the amendment and its application to the plaintiff.

The cases were tried before a Master (R. Peter Shapiro, Esq.), in February 1984, whose findings and recommended rulings were approved by the Superior Court (Temple, J.). The master found and ruled as follows:

(1) that Funtown had a vested right to construct the water slide and that the town should be enjoined from interfering with the installation;
(2) that Funtown could construct the water slide by virtue of its “intent to build;”
(3) that the ZBA decision was unlawful and unjust and that the town should issue a building permit;
(4) that ordinances adopted on March 9, 1982, purporting to affect plaintiff’s project were inapplicable or unconstitutional;
(5) that plaintiff should be awarded legal fees; and
(6) that the town’s action constituted a taking for which plaintiff was entitled to compensation.

The Town of Conway brought this appeal. However, in May 1984, the town granted the plaintiff a building permit for the construction of the water slide, and the issues before us are therefore limited to attorney’s fees and inverse condemnation. The relevant facts are set forth below.

Mark and Ann Goldman are the principals of a New Hampshire corporation known as Funtown, USA, Inc. In November 1978, Ann Goldman purchased land in North Conway in a high density commercial zone to be used for a recreational facility which would include a water slide. No zoning ordinances or other regulations existed in Conway at that time to prohibit a water slide. The anticipated income from the water slide was estimated to be forty percent of all profits earned at Funtown.

[314]*314Mr. Goldman then filed a “registration of intent to build” as required by town ordinance. He obtained a driveway permit (which specifically mentioned the water slide) from the board of selectmen and approval for his project from the New Hampshire Water Supply and Pollution Control Commission.

In the fall of 1978, Mr. Goldman began construction of his recreational facility. The water slide molds were constructed and placed in storage in Florida in the winter of 1979-80.

On March 11, Í980, the town of Conway enacted its first zoning ordinance, under which the Funtown property became a conforming use in a business district. During this same year, Mr. Goldman postponed construction of the water slide for another year. The building, miniature golf course and roller skating rink, however, had already been completed in 1979.

In March 1981, the zoning ordinance was amended to replace the previously used “registration of intent to build” procedure with a “building permit” system. It grandfathered all existing building permits for one year. The plaintiff, meanwhile, arranged to have the molds for the water slide taken out of storage and shipped to the Conway site.

Later that summer, John Walsh, assistant town manager, visited the site and, after seeing the molds for the slide, told Mr. Goldman’s son that a building permit would be required for its construction. He further opined that such a permit would probably be denied.

Mr. Goldman applied for a permit on October 7, 1981. The board of selectmen inquired about certain requirements concerning the septic system and parking facilities. Several selectmen suggested that a public hearing be held on this issue.

On the following day, Mr. Goldman provided the board with the technical data they had requested. The selectmen tabled the request for a permit, however, until a public hearing could be scheduled. Approximately sixty people, many of them neighbors of Funtown, attended the hearing on October 19. The reaction to the construction of the slide was for the most part negative.

The next selectmen’s meeting was held on October 28. Mr. Goldman’s counsel appeared to answer questions raised by a compilation of complaints regarding traffic problems which had been submitted to the board by Police Chief John Lance. The board told Mr. Goldman’s counsel that because they had other matters to discuss, the issue would have to be considered another time. About an hour after he left, however, the board denied the plaintiff’s request for a building permit.

Earlier that same day, an article written by John Walsh had [315]*315appeared in a North Conway newspaper. It was a criticism of the plaintiffs project, written in parable form.

On December 4, Mr. Goldman filed an appeal with the Conway Zoning Board of Adjustment (ZBA). He also met again with the board of selectmen on December 9. While the ZBA found no change of use, it upheld the selectmen’s decision not to issue the permit because, on the basis of the evidence presented, the project would not be compatible and would constitute a nuisance to the neighborhood. The ZBA suggested that Mr. Goldman present an improved parking plan to the board of selectmen, and he then filed a new application, with a new plan.

The board of selectmen met on December 16 to discuss Mr. Goldman’s amended application for a building permit. Mr. Goldman suggested limiting the hours of use for the water slide. The board reluctantly admitted that such a solution would address their prior concerns. Because of a proposed change in the zoning ordinance, however, they declined to take any action concerning the building permit, citing RSA 156:3-a.

Mr. Goldman met again with the board on December 23, to attempt to persuade them that RSA 156:3-a was not applicable and that his request for a building permit was an ongoing process not affected by the posting of a proposed zoning amendment. The board rejected the plaintiff’s argument.

Mr. Goldman then filed a petition for rehearing with the ZBA and on February 2, 1982, the ZBA held a public hearing to reconsider his appeal. He presented a revised parking plan and testimony by a water slide expert. After Selectman Hounsell raised a question as to the legality of the ZBA’s hearing new evidence, the ZBA reaffirmed its decision to uphold the selectmen’s denial of Mr. Goldman’s building permit.

The first issue we decide is whether there was sufficient evidence of bad faith to justify an award of attorney’s fees to the plaintiff.

In Harkeem v. Adams, 117 N.H.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

J.K.S. Realty, LLC v. City of Nashua
55 A.3d 941 (Supreme Court of New Hampshire, 2012)
Lakeview Management v. Care Realty
2010 DNH 012 (D. New Hampshire, 2010)
Huard v. Town of Pelham
986 A.2d 460 (Supreme Court of New Hampshire, 2009)
Webster v. Town of Candia
778 A.2d 402 (Supreme Court of New Hampshire, 2001)
Tully v. Life Care Servs.
D. New Hampshire, 1998
Asselin v. Town of Conway
628 A.2d 247 (Supreme Court of New Hampshire, 1993)
City of Dover v. Kimball
616 A.2d 516 (Supreme Court of New Hampshire, 1992)
Adams v. Bradshaw
599 A.2d 481 (Supreme Court of New Hampshire, 1991)
Cannata v. Town of Deerfield
566 A.2d 162 (Supreme Court of New Hampshire, 1989)
Funtown USA, Inc. v. Town of Conway
529 A.2d 882 (Supreme Court of New Hampshire, 1987)
Rancourt v. Town of Barnstead
523 A.2d 55 (Supreme Court of New Hampshire, 1986)
Indian Head National Bank v. Corey
523 A.2d 70 (Supreme Court of New Hampshire, 1986)
Appeal of Parmelee
508 A.2d 1041 (Supreme Court of New Hampshire, 1986)
Rockhouse Mountain Property Owners Ass'n v. Town of Conway
503 A.2d 1385 (Supreme Court of New Hampshire, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
499 A.2d 1337, 127 N.H. 312, 1985 N.H. LEXIS 445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/funtown-usa-inc-v-town-of-conway-nh-1985.