Page v. Portsmouth Redevelopment & Housing Authority

CourtSupreme Court of Virginia
DecidedJuly 3, 2024
Docket1230521
StatusPublished

This text of Page v. Portsmouth Redevelopment & Housing Authority (Page v. Portsmouth Redevelopment & Housing Authority) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Page v. Portsmouth Redevelopment & Housing Authority, (Va. 2024).

Opinion

PRESENT: All the Justices

H. CLIFF PAGE OPINION BY v. Record No. 230521 JUSTICE D. ARTHUR KELSEY JULY 3, 2024 PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY

FROM THE COURT OF APPEALS OF VIRGINIA

H. Cliff Page sued the Portsmouth Redevelopment and Housing Authority (“PRHA”),

claiming that it had negligently damaged a building that he owned. The circuit court held that

sovereign immunity barred Page’s claim against PRHA. The Court of Appeals affirmed. We

disagree and hold that sovereign immunity does not shield PRHA from tort liability under the

circumstances of this case.

I.

Page owns a building in Portsmouth that was adjacent to a building that had been owned

by PRHA. The two buildings shared a common wall. In 2014, PRHA demolished its building

after the City of Portsmouth declared it to be an unlawful nuisance. Page claimed that the

demolition was negligently performed and damaged his building’s “supporting structures,

interior wall surfaces, and roof, resulting in significant ongoing and increasing water damage to

interior floors, interior ceiling, and personal property within the building.” J.A. at 2. PRHA

responded with a demurrer and a plea in bar. The demurrer raised an argument that was later

withdrawn. The plea in bar raised the defense of sovereign immunity.

The circuit court held an ore tenus hearing on the plea in bar. At that hearing, PRHA

introduced a Community Development Block Grant Eligibility Certification Form (“CDBG

form”) representing that in 2004 certain property in downtown Portsmouth had been designated

as a “slum and blight” area for purposes of seeking Community Development Block Grant funding through the United States Department of Housing and Urban Development. Id. at 188.

In 2009, PRHA had purchased one parcel and building (1020 High Street) within the designated

area. The CDBG form certified that this “blight[ed]” building had “failing roof and framing

materials, water damaged and deteriorated interior walls and ceilings, and the presence of

asbestos containing materials.” Id.

After its purchase by PRHA, the building housed “Oasis Ministries,” which “operated as

a soup kitchen.” Id. at 33. Page testified that the operation also included a “clothing store” and

“food pantry.” Id. at 117. After five years, during which PRHA had made no efforts to make the

building safe for use by the public, the City of Portsmouth in 2014 issued a “NOTICE OF

EMERGENCY DEMOLITION” stating that the building had been “declared a dangerous

building” pursuant to Part III of the Virginia Uniform Statewide Building Code and Section 17-1

of the Portsmouth City Code. See id. at 186. This declaration exposed PRHA to potential

criminal prosecution and civil penalties if the Notice of Emergency Demolition was disobeyed.

See Code § 36-106.

Describing “[s]tructures such as this one” as “attractive nuisances for illegal crime,

vagrants and curious children,” the City gave PRHA two weeks to “abate the hazards.” J.A. at

187. If PRHA failed to do so, the City stated that it would conduct an “Emergency Demolition”

of the building “using City funds” and later seek reimbursement from PRHA. Id. (emphasis

omitted). In response, PRHA complied with the City’s directive by hiring a private contractor to

raze the building to the ground. Page alleged that in the process of doing so, his adjacent

building was badly damaged.

In the circuit court, Page offered two separate (though sometimes commingled) reasons

why sovereign immunity did not apply. The first was that PRHA intended all along to sell the

property “akin to a private land developer,” id. at 33, and manipulated the City to issue the

2 Notice of Emergency Demolition because PRHA “would not be eligible for the block grant funds

if the property was not blighted,” see id. at 100; id. at 12 n.1. The circuit court did not address

this argument specifically but did point out that, at the time of its ruling, “[f]ive years ha[d]

passed since the demolition and the property ha[d] not yet been sold.” Id. at 33.

Page’s second rationale asserted that, whatever PRHA’s subjective motive, certain

objective facts were legally dispositive. PRHA owned the building for more than five years and

did nothing to address the “failing roof, water damage, and asbestos, all problems that a private

landowner would be responsible for addressing,” and allowed it to “become a hotbed for

criminal activity.” Id. at 13-14. “Because of PRHA’s malfeasance,” Page argued, the City

declared the building to be an unlawful nuisance and ordered its renovation or demolition. Id.

From Page’s perspective, these facts describe an inept exercise of a proprietary function — not a

governmental function. The same could be said, Page reasoned, of PRHA’s negligent attempt to

abate the unlawful nuisance in response to the Notice of Emergency Demolition. For all

practical purposes, Page concluded, PRHA was acting no differently than a private landowner.

In response, PRHA advanced a simple thesis: PRHA’s immunity should be exactly the

same as that of the City of Portsmouth. Protecting the public from unlawful nuisances is a

traditional police power of local government. It follows, PRHA argued, that because the City

would have sovereign immunity if the City had demolished PRHA’s building, so too should

PRHA for obeying the City’s Notice of Emergency Demolition.

The circuit court agreed with PRHA and dismissed Page’s claim. In its letter opinion, the

court made several factual findings. After PRHA purchased the building, the court found, it was

used by “Oasis Ministries,” which “operated as a soup kitchen.” Id. at 33. Even so, the court

added, “[b]y all accounts, the demolished structure was dilapidated and unfit for human

habitation.” Id. Equally significant, the court made a factual finding that “[t]he demolition of

3 the property was implemented under the City of Portsmouth’s plan to address the blight in the

Downtown Portsmouth Historic District.” Id. (emphasis added). Nothing in the letter opinion

implied a finding that PRHA would have demolished the building had it not been directed by the

City to abate the unlawful “nuisance” within two weeks of the City’s Notice of Emergency

Demolition, id. at 187. Despite these factual findings, the court reasoned, PRHA was

nonetheless legally protected by the umbrella effect of the City’s sovereign immunity. “For the

reasons set forth in [its] letter opinion,” the court entered a final order that “grant[ed]

Defendant’s Plea in Bar and dismiss[ed] the case.” Id. at 34.1

A panel of the Court of Appeals affirmed the circuit court’s ruling. The panel’s

unpublished opinion rejected Page’s core argument that “PRHA is not protected by sovereign

immunity” because “[t]he City’s interest in demolition [to protect public welfare] does not

impute to PRHA.” Page v. Portsmouth Redev. & Hous. Auth., Record No. 0175-22-1, 2023 Va.

App. LEXIS 407, at *16 n.7 (June 20, 2023) (citation omitted). The panel stated that it would

not consider this argument because Page had conceded in the circuit court that PRHA was

“acting . . . on behalf of the [C]ity.” Id. at *16-17 n.7 (citation omitted). Having made that

concession, the panel ruled, Page’s argument on this issue was “barred by the approbate-

reprobate doctrine” and “[a]ccordingly, [the panel] will not disturb the circuit court’s finding that

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Page v. Portsmouth Redevelopment & Housing Authority, Counsel Stack Legal Research, https://law.counselstack.com/opinion/page-v-portsmouth-redevelopment-housing-authority-va-2024.