Middlecap Associates, LLC v. The Town of Middletown

CourtSuperior Court of Delaware
DecidedJanuary 30, 2026
DocketN23C-03-181 CEB
StatusPublished

This text of Middlecap Associates, LLC v. The Town of Middletown (Middlecap Associates, LLC v. The Town of Middletown) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Middlecap Associates, LLC v. The Town of Middletown, (Del. Ct. App. 2026).

Opinion

IN THE SUPERIOR COURT FOR THE STATE OF DELAWARE

MIDDLECAP ASSOCIATES, ) LLC, ) ) Plaintiff, ) ) C.A. No. N23C-03-181 CEB v. ) ) THE TOWN OF ) MIDDLETOWN, a municipal ) corporation of the State of ) Delaware, and THE TOWN OF ) MIDDLETOWN TOWN ) COUNCIL, the governing body ) of the Town of Middletown, ) ) Defendants. )

Submitted: December 1, 2025 Decided: January 30, 2026

MEMORANDUM OPINION

Upon Consideration of Plaintiff’s Appeal: AFFIRMED.

John W. Pardee, Esq. & Mark A. Denney, Jr., Esq., BROCKSTEDT MANDALAS & FREDERICO, LLC, Dover, Delaware. Attorneys for Plaintiff.

Scott G Wilcox, Esq., GIORDANO & GAGNE, LLC, Wilmington, Delaware. Attorney for Defendants.

Butler, R.J. This dispute is back before the Court after a remand to the Middletown Town

Council which, consistent with the Court’s previous ruling, has again considered a

conditional use permit requested by Middlecap and again voted against it. The Court

in this decision must reckon with “the record” and the quite circumscribed scope of

review of the Town Council’s decision against the development of the apartment

complex proposed by Middlecap.

FACTUAL AND PROCEDURAL BACKGROUND

Middlecap Associates owns approximately fifteen acres of land in the Town

of Middletown. 1 The property is located along Route 299, what some would call the F

“main road” into Middletown off Route 1. About twenty years ago, long before the

instant dispute began, Middlecap proposed a “big box” shopping center on the site

and the Town approved of the idea. 2 As future plans for growth were formalized for 1F

Middletown, the as yet unbuilt shopping center remained a part of them. Indeed, the

land was zoned C-3 “Employment/Regional Retail.” 3 The zoning code describes 2F

the Town’s aspirations for the use of land in that area:

Development design within the C-3 district will provide service and retail environments and employment/office opportunities in a manner compatible with the historic character, scale, and architectural type of Middletown. 4 3F

1 Second Amended Verified Compl. [hereinafter Compl.] ¶6. 2 Defs.’ Opening Br. in Support of Mot. to Dismiss Compl. at 3. 3 Id. 4 Middletown Zoning Code § 4.I. 2 Had Middlecap stuck to its original plan, it could have built a shopping center at the

site “by right” because that use was specifically permitted by the zoning code.

Times changed, as did Middlecap’s vision for its use of the land. Development

in C-3 zoning in Middletown permits “conditional uses subject to special

requirements” that are not necessarily tied directly to “employment” or “regional

retail.” 5 These include 1) day care centers, 2) selling goods directly from trucks, and 4F

3) garden apartments. 6 Middlecap decided to seek a conditional use permit to 5F

develop the land as garden apartments.

The route to a conditional use permit in Middletown begins with the Planning

Commission. 7 Middlecap presented its plan for a garden apartment complex to the 6F

Planning Commission. The Planning Commission voted against it. 8 But the 7F

Planning Commission’s vote is not the final word – the Town Council makes the

ultimate decision. 9 After a public hearing in February 2022, the Town Council also 8F

voted against the conditional use permit. 10 9F

5 Id. § 4.I.(2). 6 Garden apartments are contemplated by the Zoning Code and are permitted by right in R-3 districts. Id. § 4.E. 7 Id. § 10.A. 8 Compl. ¶14. 9 Middletown Zoning Code § 10.A.(1). 10 Compl. ¶20. 3 Middlecap filed a Verified Petition in the Court of Chancery to challenge the

Council’s decision. At the time, there was a long history of Chancery reviewing

county and local government control of land use matters. 11 These typically were 1 F

styled as complaints for declaratory judgment and an injunction. The Town Council

moved to dismiss the Chancery case, arguing that the Court lacked subject matter

jurisdiction because Middlecap had an adequate remedy at law, to wit: review by

way of a certiorari proceeding in Superior Court. 12 11F

Apparently, Middletown was not the only local jurisdiction questioning

Chancery’s jurisdiction in land use cases. At about the same time, the Town of

Newark had a case that did so, 13 as did the City of Rehoboth. 14 The Newark case – 12F 13F

Delta Eta Corp. v. Newark – became the flagship decision marking Chancery’s

departure from its participation in reviewing conditional use permits.

11 Cases supporting this notion are legion. Middlecap’s brief in the Court of Chancery cited to eighteen such cases. Pet’r’s Answering Br. in Opp’n to Mot. to Dismiss at 14-15, Middlecap Assocs., LLC v. Town of Middletown, 2023 WL 2981893 (Del. Ch. Feb. 2, 2023). In Delta Eta, the Plaintiff cited to thirty cases in its answering brief. Pl.’s Answering Br. in Opp’n to Def.s’ Mot. Dismiss at Ex. B, Delta Eta Corp. v. City of Newark, 2023 WL 2982180 (Del. Ch. Feb. 2, 2023). 12 Resp’ts’ Opening Br. in Support of Mot. Dismiss at 8-9, Middlecap Assocs., LLC v. Town of Middletown, 2023 WL 2981893 (Del. Ch. Feb. 2, 2023). 13 Delta Eta, 2023 WL 2982180. 14 330 Hospitality Group, LLC v. City of Rehoboth Beach, Del. Ch., C.A. No. 2022-0424, Will, V.C. (Oct. 17, 2022) (Bench Op.). A fourth case – Citizens Against Solar Pollution v. Kent County – should have collected frequent flyer miles for all its travels. In March 2025, it was finally concluded by the Supreme Court. Citizens Against Solar Pollution v. Kent Cnty., 339 A.3d 1229 (Del. 2025). 4 In Delta Eta, Newark denied a conditional use permit to the Delta Eta

fraternity and Delta Eta sued in Chancery. 15 In reviewing what Delta Eta called a 14F

long history and tradition of Chancery Court rulings in conditional use cases, the

Chancery Court found that many of them were really zoning disputes, not

conditional use disputes. 16 Separating the “legislative act” of zoning, for which no 15F

adequate remedy at law existed, from “quasi-judicial” acts, for which certiorari

review is available, Chancery decided that a conditional use permit was “quasi-

judicial” and there was an adequate remedy at law by way of certiorari review in

Superior Court. 17 The Court dismissed Delta Eta’s case but permitted its transfer to 16F

Superior Court. 18 17F

On the same day as the Delta Eta ruling, Chancery Court dismissed

Middlecap’s Chancery lawsuit, transferring it to this Court. 19 18F

Once in Superior Court, other issues surfaced. The Town Council argued that

the Superior Court case was time-barred. Council members were sued individually

and sought dismissal as individual defendants. After briefing, the Superior Court

15 Delta Eta, 2023 WL 2982180, at *1. 16 Id. at *11-17. 17 Id. 18 Id. 19 Middlecap Assocs., LLC, 2023 WL 2981893, at *2 (Del. Ch. Feb. 2, 2023). 5 issued a split decision – dismissing the individual council members but ruling that

the certiorari case was not time-barred. 2019F

After further briefing, the Court ruled that the record was insufficient to permit

review. The Court said:

merely reciting a code provision in support of a “no” vote is not a statement of reasons for the vote. Certainly, a reviewing Court does not need an extensive recitation of all the whys and wherefores, but some connection of the facts as found by the council person and the legal standard being applied is essential to ensure that the quasi-judicial decision was made with fidelity to the law. 21 20F

The Court therefore denied Plaintiff’s claim for relief but remanded the

dispute for further deliberations by the Town Council so it could create a record

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Middlecap Associates, LLC v. The Town of Middletown, Counsel Stack Legal Research, https://law.counselstack.com/opinion/middlecap-associates-llc-v-the-town-of-middletown-delsuperct-2026.