Mongeon Bay Properties, LLC v. Town of Colchester

2026 VT 1
Supreme Court of Vermont·Decided January 23, 2026·No. 25-AP-125·Published

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: Reporter@vtcourts.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2026 VT 1

No. 25-AP-125

Mongeon Bay Properties, LLC Supreme Court

On Appeal from

v. Superior Court, Chittenden Unit, Civil Division

Town of Colchester October Term, 2025

Samuel Hoar, Jr., J. Alexander J. LaRosa and John Mazzuchi of MSK Attorneys, Burlington, for Plaintiff-Appellee.

Brian P. Monaghan and Kristen E. Shamis of Monaghan Safar PLLC, Burlington, for Defendant-Appellant.

PRESENT: Reiber, C.J., Eaton and Cohen, JJ., and Tomasi, Supr. J., and Johnson, J. (Ret.), Specially Assigned

¶ 1. COHEN, J. Defendant Town of Colchester (Town) appeals the civil division’s decision that the Town failed to prove that it needed to take plaintiff Mongeon Bay Properties, LLC’s (Mongeon Bay) land to build a stormwater treatment facility. The Town argues that the civil division abused its discretion in denying the Town’s petition for necessity because taking Mongeon Bay’s property for this facility would help the Town meet phosphorus reduction regulatory requirements and reduce liability arising from the existing drainage pipe on the property. We affirm.

¶ 2. A review of the record reveals the following. The Town seeks to condemn 885 East Lakeshore Drive, which is in the middle of a larger, unsubdivided parcel owned by Mongeon

Bay on the shore of Malletts Bay in Colchester. The property contains one of several residential camp structures, which Mongeon Bay leases to tenants. The property is burdened by an easement dating back to 1979 that permits the Town to place and maintain a stormwater drainpipe and catch basin. The Town has used the easement for that purpose since at least 1994, when it carried out substantial work on the property, including construction of a seawall and related infrastructure to protect the stormwater outfall pipe. In 2019, the Town-owned pipe that runs underneath the property ruptured, damaging the land and camp structure. Mongeon Bay sued the Town for damages and secured a settlement. In 2020, the Town repaired the pipe with a cured-in-place liner, which the Town’s former Director of Public Works testified typically has a service life of thirty to fifty years. There has been no further damage to the property since the liner was put in place, even during major rainfalls in the summers of 2023 and 2024.

¶ 3. In August 2021, the Town initiated condemnation proceedings for the property. It conducted a condemnation and compensation hearing in November 2021. In January 2022, the Town issued a proposed decision to condemn the property. The decision explained that the Town needed to take the property “to have improved access to the stormwater discharge point, to reduce ongoing maintenance and repair costs to an unorthodox stormwater outfall configuration, to install a stormwater treatment facility, to address a safety and liability issue created by the recent erosion and to mitigate potential hazards in the future.”

¶ 4. In February 2022, Mongeon Bay filed this action, seeking a declaratory judgment and injunction prohibiting the Town from taking the property. In response, the Town moved for a hearing to determine necessity pursuant to the condemnation statute1, arguing that it needed to take the property “for the purpose of constructing, maintaining, operating, and repairing a

1 At the time the Town moved for a hearing to determine necessity, the controlling statute was 24 V.S.A. § 3604. In 2024, this statute was renumbered to 24 V.S.A. § 3606. 2023, No. 143 (Adj. Sess.), § 13.

stormwater treatment facility to replace an existing [twenty-four-inch] stormwater outflow located at 885 East Lakeshore Drive.” See 24 V.S.A. § 3606 (laying out procedural requirements when owner does not agree to convey interest in land to municipal authority and explaining that municipality must then petition trial court to set time and place to hear parties and determine necessity of taking).

¶ 5. The trial court held a two-day bench trial in October 2024. In a subsequent written decision, the court concluded that the Town did not meet its burden to prove the necessity of the taking. The court found that the Town did not prove that taking the land was in the public good or properly consider the inconvenience and expense to Mongeon Bay and the Town. Although the Town claimed that it needed the property to meet its obligations to reduce phosphorus runoff into Lake Champlain, the evidence did not show that the project was a reasonable means to further this goal. The court also found that the Town did not properly consider alternative sites. The Town had prepared a scoping study and phosphorus control plan, which looked at potential locations for phosphorus reduction projects, but the property was not identified in either the study or plan. The court concluded that the Town appeared to have first selected the site, then designed the project to fit the property, rather than assessing various alternatives and choosing a suitable site from among them. The court also found that the proposed taking was initiated in bad faith and concluded based on case law from other jurisdictions that this was a separate and independent basis for rejecting the Town’s petition. The Town appeals.

¶ 6. The Town raises two primary challenges to the trial court’s decision on appeal.

First, the Town argues that the court erred in concluding that it failed to give due consideration to the relevant factors and therefore did not demonstrate necessity. Second, the Town claims that the court erred in finding that it acted in bad faith in attempting to take the property. Because we conclude that the court acted within its discretion in finding that the taking was unnecessary, we

do not address the court’s holding that the petition must be rejected because the Town acted in bad faith.

¶ 7. A trial court’s finding of necessity is “a question of fact which is to be determined exclusively by the trial court.” Cersosimo v. Town of Townshend, 139 Vt. 594, 597, 431 A.2d 496, 498 (1981). This Court must accept the trial court’s findings on necessity if they are supported “by any competent evidence,” and must uphold the court’s decision unless the court abused its discretion. Rossetti v. Chittenden Cnty. Transp. Auth., 165 Vt. 61, 67, 674 A.2d 1284, 1288 (1996) (quotation omitted). This Court has explained that “[a] trial court’s factual findings will not be disturbed on appeal unless clearly erroneous when viewed in the light most favorable to the prevailing party” and “there is no credible evidence to support the finding.” Jackson v. Jackson as Tr. for William Jackson Tr. of 1939 & the William Jackson Tr. of 1941, 2025 VT 29, ¶ 22, ___Vt.___, 342 A.3d 928 (quotation omitted); see also Agency of Transp. v. Wall Mgmt., 144 Vt. 640, 645, 481 A.2d 1270, 1273 (1984) (holding “the court’s finding must stand as it was not clearly erroneous and without factual support” (quotation omitted)). “This Court gives due regard . . . to the opportunity of the trial court to judge . . . the credibility of the witnesses, and will accordingly defer to the court’s determinations regarding the credibility of witnesses and . . . the persuasive effect of the evidence.” Jackson, 2025 VT 29, ¶ 22 (quotation omitted).

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

Mongeon Bay Properties, LLC v. Town of Colchester, 2026 VT 1 (Vt. 2026).

2026 VT 1 (Mongeon Bay Properties, LLC v. Town of Colchester) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related