Kalorama Citizens Ass'n v. SunTrust Bank, Co.

CourtDistrict of Columbia Court of Appeals
DecidedDecember 22, 2022
Docket21-CV-84 & 21-CV-183
StatusPublished

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Kalorama Citizens Ass'n v. SunTrust Bank, Co., (D.C. 2022).

Opinion

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DISTRICT OF COLUMBIA COURT OF APPEALS

Nos. 21-CV-84 and 21-CV-183

KALORAMA CITIZENS ASSOCIATION, et al., APPELLANTS,

V.

SUNTRUST BANK COMPANY, et al., APPELLEES.

Appeals from the Superior Court of the District of Columbia (2017-CA-004182-B)

(Hon. Hiram E. Puig-Lugo, Trial Judge)

(Argued March 17, 2022 Decided December 22, 2022)

Paul H. Zukerberg for appellants.

Mary C. Zinsner, with whom Elizabeth M. Briones was on brief, for appellees.

Before EASTERLY and MCLEESE Associate Judges, and CROWELL, Associate Judge, Superior Court of the District of Columbia. *

CROWELL, Associate Judge: Appellants Kalorama Citizens Association

(“KCA”) and Adams Morgan for Reasonable Development (“AMRD”) appeal from

the Superior Court’s grant of summary judgment to appellee SunTrust Bank (“the

∗ Sitting by designation pursuant to D.C. Code § 11-707(a). 2

Bank”). 1 The appellants had sought to enforce an alleged common law easement by

public dedication that gave the public the right to use a plaza (“the Plaza”) on land

owned by the Bank, which sold the Plaza and its adjacent bank building to

developers, who intend to tear both structures down in order to build a mixed-use

development.

In this case we are asked to determine whether two community organizations

have standing to enforce an alleged common law easement by public dedication. We

conclude that they have both constitutional and prudential standing. Because we

remand for consideration of whether the alleged easement exists, we reiterate the

requirements for what must be proven to establish a common law easement by public

dedication in the District of Columbia. Further, we hold that such an easement may

be express or implied and that it may be accepted either by the government or by the

public through general use.

Accordingly, for the reasons stated herein, we hereby reverse the order of

summary judgment and remand for further proceedings consistent with this opinion.

1 Since 1976, Perpetual Savings & Loan Association, Crestar Bank, and now SunTrust Bank successively acquired the property at issue in this case and are collectively referred to as the Bank. 3

I. Factual and Procedural Background

The following provides a summary of the evidence proffered by the parties

for the purposes of the summary judgment ruling. The record below contains

numerous unresolved factual disputes regarding the parties’ relative understanding

of the agreement or lack thereof that paved the way for the Plaza’s construction. As

a starting point, in 1976, the Bank sought to build a bank branch in Adams Morgan.

At some point that year, community organizations filed objections with the Federal

Home Loan Bank Board (“FHLBB”) regarding the Bank’s application. The planned

and now present location at 1800 Columbia Road NW included an undeveloped area

that was routinely used as a neighborhood farmers’ market and community space.

Throughout 1976 and 1977, the Bank, mainly through its president, Thomas Owen,

engaged in a series of meetings that the appellants allege were negotiations with the

Adams Morgan Organization (“AMO”), the Adams Morgan Advisory

Neighborhood Commission (“Adams Morgan ANC”), and other community groups

prior to the construction of the bank building. During these negotiations, the Bank

sought to obtain the Adams Morgan community’s support for the construction of the

building, while the community groups sought to maintain the open space for the

broader community’s use and ensure that the Bank operated according to certain

non-discriminatory mortgage lending practices. 4

On November 2, 1976, Owen, in his capacity as the Bank’s president, wrote

an open letter to residents of Adams Morgan (“the Owen Letter”), in which he stated

that “[the Bank] agreed to develop the property in such a way as to preserve its open

quality, attractiveness and accessibility to the vendors that presently use it.” Then,

on December 6, 1976, Frank Smith, who served as Chairman of the Adams Morgan

ANC and AMO at the time that the Bank acquired the property, sent a letter to Owen

stating that the community organizations were willing to withdraw their opposition

to the bank building’s construction. The parties, however, dispute the import,

meaning, and binding nature of Owen’s and Smith’s understandings of the alleged

agreement, if any, to construct the Plaza in return for the community organizations’

support of the bank building’s construction.

By January 17, 1977, the FHLBB had in its possession investigatory materials

that included the Bank’s architectural plans for the Plaza. In July 1977, the Bank

finalized an agreement on mortgage lending practices with the community, which

was entitled the Loan Policy Agreement (“LPA”). The LPA detailed the terms for

how the Bank would extend mortgages in the community to ensure “the lower and

moderate income and minority residents” in the neighborhood would have access to

home financing opportunities. The LPA was then submitted to the FHLBB as an

amendment to the Bank’s licensing application. Notably, the LPA did not mention 5

the future construction of the Plaza. Smith in his deposition, however, stated that he

believed the LPA formally memorialized the parties’ agreed-upon terms and that he

understood that this agreement included the Plaza’s construction and the

community’s continued use of the space once the Plaza was completed. Essentially,

the appellants contend that the community groups withdrew their opposition before

the FHLBB at least in part in exchange for the Bank constructing the Plaza.

Regardless of the parties’ disputed understanding of the Bank’s agreement with the

community groups, by August of 1977, the community groups withdrew their

objections filed with the FHLBB, which cleared the path for approval of the Bank’s

application to open the new bank building. The Bank subsequently constructed the

building and the Plaza, which, in 1979, was opened to the public.

The Plaza exists today, largely as it did in 1979, but ownership of the bank

building and the Plaza has changed several times since its opening. At a preliminary

injunction hearing, a Bank employee testified that throughout these changes of

ownership, the Bank entered into licensing agreements with farmers’ market vendors

and community groups to use the Plaza. Other uses by the general public have

commonly occurred on the Plaza without licenses, such as break dancing, jump rope,

and social meetups. The Bank paid for insurance that covered the entire Plaza and

contracted for the Plaza’s maintenance, including repairs and waste removal. The 6

Bank paid taxes on the Plaza, physically maintained the Plaza, and settled a slip and

fall case from an incident on the Plaza.

In 2015, the Bank contracted to sell the building and the Plaza to 1800

Columbia Road, LLC, a real estate development group (“the Developers”). The

Developers intend to raze the bank building and the Plaza in order to construct retail

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