New Castle Shopping LLC v. Trustees of New Castle Common

CourtCourt of Chancery of Delaware
DecidedOctober 7, 2024
DocketC.A. No. 2021-0571-SEM
StatusPublished

This text of New Castle Shopping LLC v. Trustees of New Castle Common (New Castle Shopping LLC v. Trustees of New Castle Common) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Castle Shopping LLC v. Trustees of New Castle Common, (Del. Ct. App. 2024).

Opinion

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

NEW CASTLE SHOPPING LLC, ) ) Plaintiff, ) ) v. ) C.A. No. 2021-0571-SEM ) TRUSTEES OF NEW CASTLE COMMON, ) ) Defendant. )

POST-TRIAL FINDINGS OF FACT AND CONCLUSIONS OF LAW

Dated: October 7, 2024

1. This final report makes post-trial findings of fact and reaches

conclusions of law regarding plaintiff New Castle Shopping LLC’s (“New Castle”)

claims of trespass and nuisance.

2. New Castle initiated this action on July 2, 2021.1 In its complaint, New

Castle named five defendants: Trustees of New Castle Common (“Trustees”),

Dunkin’ Donuts LLC (“Dunkin’”), AARK Network Inc. (“AARK”), CD&D Realty

Holding Co., LLC (“CD&D”), and G Custom Work LLC (“G Custom”).

3. On June 3, 2022, G Custom moved for judgment on the pleadings.2

After oral argument on November 3, 2022, I denied the motion, finding an issue of

1 Docket Item (“D.I.”) 1. 2 D.I. 31. material fact precluded judgment in G Custom’s favor at that time. 3 No exceptions

were filed, but all parties filed motions for summary judgment shortly thereafter.4 I

heard argument on those motions on May 30, 2023. 5 I ruled on the motions

telephonically on June 16, 2023, denying the motions involving Trustees, but

granting those filed by the remaining defendants: Dunkin’, AARK, CD&D, and G

Custom. 6 I stayed exceptions pending my final post-trial decision. 7

4. The remaining claims against Trustees (with New Castle, the “Parties”)

were tried on July 12–13, 2023.8 The Parties completed post-trial briefing on

November 17, 2023, and I took this matter under advisement after post-trial

argument on May 21, 2024.9 This is my final post-trial ruling.

3 See D.I. 58–59, 61. 4 D.I. 62, 64–67. 5 See D.I. 92. 6 See D.I. 98–101, 105. 7 D.I. 105. 8 See D.I. 125–27. Before trial, I ruled on various pre-trial motions. See D.I. 108, 121–25. 9 See D.I. 138, 140–42. 2 FINDINGS OF FACT10

5. The Parties’ stipulations, the evidence presented at trial, and that of

which I take judicial notice, support the following findings of fact.

6. New Castle operates the Penn Mart Shopping Center and leases the land

thereunder from Trustees (the “Property”) under a long-term lease.11 In connection

with the lease, the Parties entered into an independent repair and maintenance

agreement on April 16, 1986 (the “Maintenance Agreement”).12 Through the

10 The facts in this report reflect my findings based on the record developed at trial on July 12–13, 2023. See D.I. 126–27. I grant the evidence the weight and credibility I find it deserves. Citations to the trial transcripts (id.) are in the form “Tr. #.” I cite to the joint exhibits as “JX __.” See D.I. 128. A few evidentiary objections were preserved and are hereby addressed. First, Trustees waived all objections which were preserved but not briefed post-trial; thus, the objections to JX3, 21, 22, 38, 39, and 45 are overruled, and those exhibits are admitted. See Emerald P’rs v. Berlin, 726 A.2d 1215, 1224 (Del. 1999) (“Issues not briefed are deemed waived.”). Second, the objection to JX94 is overruled. JX94 is a video showing flooding on the Property, as defined herein, in June 2023. Although the video was not produced during discovery (because it did not exist), I find no unfair surprise or prejudicial effect from its admission and give it the weight and credibility I find it deserves. Third, and finally, the objections to JX142–45 are overruled. JX142–45 are photographs from an expert report, not otherwise in evidence. New Castle objected, arguing Trustees did not lay a proper foundation. I agree with New Castle that the photographs are not admissible to establish a static condition of the drains. I do, however, find them illustrative of what the drains looked like when the photographs were taken and admit them for that purpose, giving them such appropriate weight. 11 D.I. 107 at 3. 12 JX114. 3 Maintenance Agreement, New Castle agreed to “keep all areas of [the Property] in

a clean and sanitary condition, all buildings and grounds and facilities.” 13

7. Trustees also owns a vacant parcel of land upgradient from, and

immediately contiguous to, the Property (the “Trustees’ Property”). Prior to October

2020, Trustees’ Property included a stormwater drainage swale that was once

densely vegetated (the “Swale”).14

8. In October of 2020, Rory Lane with NuCar Connection, Inc. excavated

and de-vegetated the Swale, without permission from, or to the knowledge of,

Trustees. 15 Excavation of the Swale increased waterflow onto the Property and, since

the Swale’s excavation, New Castle has experienced multiple instances of

stormwater flooding. 16 Water that flowed through the Swale, as excavated, carried

dirt, mud, and debris onto the Property. 17

13 Id. at 2. 14 See JX61 (reflecting the vegetated area as it existed in 2018). 15 Tr. 425:13–18, 431:1–3 (Marinelli); see also JX69 (showing excavation occurring on October 8, 2020); JX110 (same); JX70 (showing additional excavation had occurred by October 9, 2020); JX62 (reflecting a ditch where the Swale once was, as of October 15, 2020). 16 See, e.g., JX111 (reflecting substantial flooding on October 29, 2020); see also Tr. at 176:1–16 (Powell) (explaining the deluge onto the Property after the excavation). The Parties disagree regarding the history of flooding on the Property and in the Area (as defined herein in ¶10). Compare Tr. 26:12–13 (Pilevsky) with Tr. 417:24–418:8 (Marinelli). 17 See JX72 (showing mud and debris on the Property as of November 6, 2020); JX73 (same); Tr. at 31:18–32:5 (Pilevsky). 4 9. Trustees became aware of the excavation no later than January 28,

2021. 18 Trustees immediately began to investigate and, within weeks, informed New

Castle that it would work to remediate the excavation.19 In May 2021, Trustees

retained Cirillo Brothers, Inc. (“Cirillo”) and paid them $33,800.00 to fix the

Swale. 20 Cirillo performed work on Trustees’ Property in July 2021, the same month

this action was commenced.21 In short, Cirillo enlarged the riprap area and widened

the Swale.22 These remediation efforts involved the use of straw or hay, which

18 Tr. 431:10–16 (Marinelli). 19 See Tr. at 431:19–21 (Marinelli); 183:11–16 (Powell). 20 JX5. 21 See JX4; Tr. at 224:4–7 (Powell) (explaining he took the photograph in JX112 of Cirillo, as defined herein, performing the remediation in July 2021). 22 See at Tr. 377:9–16 (Michael Cirillo, hereinafter “M. Cirillo”); see also JX85–86 (reflecting early remediation efforts); JX83 (reflecting the refilled ditch on or around July 14, 2021); JX88–89 (similar); JX36 (reflecting additional grass growth within the refilled areas, but also showing straw and other debris on the Property, as of August 12, 2021); JX90–91 (similar, showing mud and debris covering drains on the Property); JX23–25 (similar, as of August 19, 2021); JX119 (similar). Michael Cirillo, the founder, CEO, and president of Cirillo admitted that straw was washed away and brought sediment with it from the Swale onto the Property. Tr. 375:9– 13, 385:11–20, 401:7–8. That is why his team worked to seed and encourage grass growth—for stability. Tr. 385:11–20, 409:19–410:3. Trustees’ expert, Dr. Paraskewich, whose testimony is addressed later in these findings of fact, explained that “[t]here’s always a period during construction where you can have sediment transport. . . . But the practice would be to have some matting and stabilization on the edges[.]” Tr. 285:17–286:1. Looking at Cirillo’s work, he noted “it appears to be matted[.]” Id.

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Bluebook (online)
New Castle Shopping LLC v. Trustees of New Castle Common, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-castle-shopping-llc-v-trustees-of-new-castle-common-delch-2024.