Kevin Cook and Nichole Cook v. Deep Hole Creek Associates

Court of Chancery of Delaware·Decided July 24, 2024·No. CA No. 2021-0522-SG·Published

Opinion

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

KEVIN COOK AND NICHOLE COOK )

)

Plaintiffs, )

)

v. ) C.A. No. 2021-0522-SG )

DEEP HOLE CREEK ASSOCIATES, a ) Delaware partnership, DEEP HOLE ) CREEK ASSOCIATES, INC., a ) Delaware corporation, LAURENCE L. ) BURKE and SUZANNE T. WATKINS, ) Co-Trustees of the LAYTON FAMILY ) TRUST, )

)

Defendants. )

MEMORANDUM OPINION

Date Submitted: April 22, 2024 Date Decided: July 24, 2024

Richard E. Berl, Jr., HUDSON, JONES, JAYWORK & FISHER, LLC, Lewes, Delaware, Attorney for Plaintiffs.

John W. Paradee and Brian V. DeMott, BAIRD MANDALAS BROCKSTEDT & FEDERICO, LLC, Dover, Delaware, Attorneys for Defendants.

GLASSCOCK, Vice Chancellor

Deep Hole Creek is a rather modest name for a waterway that once carried the channels of both the Broadkill River and Lewes Creek, now part of the Lewes- Rehoboth Canal. That was in the days when the confluence of those two waterways forced natural and shifting inlets into the Delaware Bay, between Lewes and Broadkill Beach, before the Federal Government stabilized a permanent inlet, Roosevelt Inlet, just northwest of Lewes, in the late 1930s.

Broadkill Sound, by contrast, is a particularly grandiose name for a tidal slough1 a few yards wide, which drains the marsh behind Broadkill Beach.

These are two names for the same waterway. I will follow the parties and the title documents, and refer here to “Deep Hole Creek” (the “Creek”). This matter concerns a property adjacent to the Creek, just above where it discharges into the Broadkill River. The dispute concerns the boundaries of Plaintiffs’ real property, and whether it is bounded on the west by a property line near but not reaching the Creek, or whether it encompasses the Creek bottom, to the centerline. At stake is Plaintiffs’ right to access Deep Hole Creek, and to wharf out to the waterway.

Plaintiffs are the owners of the lot in question; Defendants are grantors to Plaintiffs’ predecessor in title. Defendants comprise a number of entities and individuals; for simplicity’s sake I will refer to them as the “Burke Family.” Several

1 Not to be confused with the Broadkill Slough, which is a submerged feature in Delaware Bay, uptide of Broadkill Beach.

decades ago, the Burke Family subdivided a several-acre property fronting on Deep Hole Creek. The property, by deed, extended to the centerline of the Creek. The Burke Family’s intention was to retain an area between the upland and the centerline of the Creek, which they saw as reserving to them a valuable asset, allowing them to sell access to the water to the buyers of the adjacent lots. What became Plaintiffs’ parcel, Revised Lot 1, was originally no exception. However, to settle a legal action in the 1990s, the Burke Family was forced to further subdivide original Lot 1, into new Lots 1 and 1-A, the latter of which contained a common-use boat ramp. The resulting Revised Lot 1, net of new Lot 1-A, would have been too small to be buildable under then-exiting County regulations. Accordingly, Revised Lot 1 was enhanced by including some of the waterfront and Creek bottom property the Burke Family had previously retained; the resulting Revised Lot 1 was defined by a plot plan that include lands out to the western boundary of the original large parcel within the bounds of Lot 1. This nearly doubled the size of the resulting Revised Lot 1, to about one acre. This addition of lands to Lot 1 was in the interest of its then-owners, the Burke Family, as the revised, enhanced Lot 1 would be buildable, and thus valuable. This was the lot the Burke Family deeded out, and which is now owned by Plaintiffs.

The Burke Family argues that the sidelines called in the deed to Lot 1—even as enhanced—are not of sufficient length to carry to the centerline of Deep Hole

Creek. They argue that they still maintain property rights in strip along or under the Creek and thus control access from Revised Lot 1 to the Creek. Looking at the deed out, the foundational deeds, the surveys, and considering other parts of the record, I find that Revised Lot 1, as enhanced and transferred out to a buyer, was intended by the Burke Family to carry to the centerline of Deep Hole Creek; that the original buyers took the property to that natural monument; and that such is what Plaintiffs purchased.

Plaintiffs wish to build a dock into Deep Hole Creek. The Burke Family disputes their right to do so, and Plaintiffs seek to quiet title that their property is riparian and that they have a right to wharf out, unimpeded by the Burke Family. The parties have cross-moved for summary judgment. I find that the Burke Family did not retain a strip between Revised Lot 1 and the centerline of Deep Hole Creek, and that Plaintiffs own to the centerline. Accordingly, Plaintiffs are entitled to quiet title to the Creek centerline, and summary judgment must be granted accordingly. My reasoning is below.

I. BACKGROUND

A. Factual Background2 1. A Brief History of the Property The property at issue traces back to a 1957 deed to Halsted P. Layton and Jennie H.J. Layton, in Deed Book 494, Page 241.3 The deed describes a parcel of roughly 5.8 acres. In 1985, Jennie H.J. Layton transferred the property to her great- grandchildren, Merritt Burke IV, Laurence Layton Burke, Thompson Absury Burke, Christopher Meade Burke, Archibald Watkins, and Elisabeth Blair Watkins.4 That deed included a plot prepared by McCann Inc. and bearing the date “June 1985” (the “1985 Deed”).5 The June 1985 plot shows uplands bounded on the west6 by Deep Hole Creek; a staggered line is shown in Deep Hole Creek but is undefined on the plot.7 The transfer included roughly 4.5 acres of the original 5.8 acres recorded in the 1957 deed.8 Included in the 1985 Deed is a survey that shows the beginning point along Bayshore Drive and a corner of Lot 46, what is formerly known as Old Inlet Beach

2 This Memorandum Opinion only contains facts necessary to my analysis. 3 Stipulation and Order, Ex. A—Compendium of Exs of Laurence Burke Depo. Tr. with Exs. (PART 1) at A-00204–07, Dkt. No. 36 (“L.B. Exs. Pt. 1”). 4 Id. at A-00034–35, A-00211–14. 5 Id. at A-00211–14. 6 I use the cardinal directions, north, south, east, and west, loosely; the properties are not aligned so precisely. The east side is generally toward the Delaware Bay and the west toward Deep Hole Creek. 7 See L.B. Exs. Pt. 1 at A-00211–14. 8 Compare id., with L.B. Exs. Pt. 1 at A-00204–07.

Section 3.9 The description of the 4.5 acres follows Lot 46 for 234 feet and then continues as follows:

thence continuing with the same bearing by and with these lands, Lot 46 and the other lands now or formerly of Jennie H.J. Layton 58 feet, more or less (in all making total distance of 292 feet, more or less) to a point, said point being a corner for these lands, a corner for the lands now or formerly of Jennie H.J. Layton and being located at the centerline of the Deep Hole Creek; thence by and with these lands and (2) the meanderings of the centerline of the Deep Hole Creek in a southerly direction to a point, said point being located at the intersection of the centerline of the Deep Hole Creek and the centerline of the Broadkill River extended . . . .10

In August 1996, the great-grandchildren transferred the property to a then newly-formed partnership called Deep Hole Creek Associates.11 In the mid-1990s, the partnership retained McMann, Inc. to subdivide the 4.5 acres. The resulting subdivision plot was recorded on February 20, 1997 (the “1997 Plot”) and consisted of four new lots, three along Deep Hole Creek and one on the Delaware Bay.12 The 1997 Plot also established a fifty-foot right of way to connect Bayshore Drive to lands owned by Lewes, Delaware, and another fifty-foot private easement from

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