Paragon v. Town of Hanover

CourtDistrict Court, D. New Hampshire
DecidedAugust 8, 2008
DocketCV-07-118-JL
StatusPublished

This text of Paragon v. Town of Hanover (Paragon v. Town of Hanover) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paragon v. Town of Hanover, (D.N.H. 2008).

Opinion

Paragon v . Town of Hanover CV-07-118-JL 8/8/08 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

Paragon Residential Group, LLC Paragon Residential Properties, LLC, James Leavitt and Louise Parker

v. Civil N o . 07-cv-118-JL Opinion N o . 2008 NH 142 Town of Hanover

O R D E R

Plaintiffs Paragon Residential Group, LLC and Paragon

Residential Properties, LLC (“Paragon”) agreed to purchase a

parcel of land from co-plaintiffs James Leavitt and Louise Parker

(“the Leavitt family”) with the intention of building a planned

residential development on the land. Paragon and the Leavitt

family are now suing the Town of Hanover, alleging that Hanover

acted in bad faith to prevent the development project. The

plaintiffs assert four civil rights claims under 42 U.S.C.

§ 1983, three claims under the Declaratory Judgment Act, 28

U.S.C. § 2201, and six state law claims.

The court has jurisdiction over this matter under 28 U.S.C.

§§ 1331 (federal question), 1343 (civil rights), and 1367

(supplemental jurisdiction).

Hanover has moved for judgment on the pleadings. The court

heard oral argument on June 3 0 , 2008. Hanover’s motion for

judgment on the pleadings is granted as to counts four (procedural due process) and seven (Contracts Clause). As to the

remaining claims, the court denies Hanover’s motion without

prejudice.

I. APPLICABLE LEGAL STANDARD

Hanover has moved for judgment on the pleadings under

Federal Rules of Civil Procedure 12(c). “The standard for

evaluating a Rule 12(c) motion for judgment on the pleadings is

essentially the same as that for deciding a Rule 12(b)(6)

motion.” Pasdon v . City of Peabody, 417 F.3d 225, 226 (1st Cir.

2005); see also Perez-Acevedo v . Rivero-Cubano, 520 F.3d 2 6 , 29

(1st Cir. 2008). The court views all well-pleaded factual

allegations in the nonmovants’ pleadings in the light most

favorable to the nonmovants and draws all reasonable inferences

in their favor. Zipperer v . Raytheon Co., 493 F.3d 5 0 , 53 (1st

Cir. 2007), cert. denied, 128 S . C t . 1248 (U.S. 2008). Although

the complaint “does not need detailed factual allegations,” the

allegations “must be enough to raise a right to relief above the

speculative level.” Bell Atl. Corp. v . Twombly, 127 S . C t . 1955,

1965 (U.S. 2007); Perez-Acevedo, 520 F.3d at 29. 1

1 Until recently, the pleading standard for a motion to dismiss set a high bar for the movant, requiring that the complaint be maintained “unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” See Conley v . Gibson, 355 U.S. 4 1 , 4 5 , 46 (1957), abrogated by Bell Atl. Corp., 127 S . C t . at 1969. In 2007, however, the U.S. Supreme Court retired the “no set of

-2- II. BACKGROUND2

Paragon is a Connecticut-based developer. James Leavitt and

his sister, Louise Parker, live in Shrewsbury, New Jersey and

Enfield, New Hampshire, respectively. Together, the two siblings

own a 259-acre property on Greensboro Road in Hanover, New

Hampshire (“the Leavitt property”). In September 2004, after

researching the suitability of the site for a “mixed-use”

development, Paragon agreed to purchase the Leavitt property from

the Leavitt family. The municipal regulatory dispute that

subsequently entangled Paragon’s development plans is the subject

of this case.

On January 1 2 , 2005, Paragon met with Hanover Town Manager

Julia Griffin to preliminarily discuss its plans to build a

Planned Residential Development (“planned development”) on the

Leavitt property. Griffin encouraged Paragon to include a

Continuing Care Retirement Community (“retirement community”)

within the planned development. At the time, both uses were

expressly permitted by Hanover’s zoning ordinances, and Paragon

facts” formulation in favor of the standard quoted above, which requires more of the nonmovant. Bell Atl. Corp., 127 S . C t . at 1968-69. This new pleading standard applies to both Rule 12(b)(6) motions to dismiss and Rule 12(c) motions for judgment on the pleadings. Perez-Acevedo, 520 F.3d at 2 9 . 2 As required on a motion for judgment on the pleadings, this statement of the facts treats Paragon’s allegations as true and draws all reasonable inferences in Paragon’s favor.

-3- believed that the project was consistent with the 2003 Hanover

Master Plan.

After a series of meetings with town officials and

residents, Paragon presented its development proposal to the

Hanover Planning Board on July 5 , 2005. The proposal consisted

of a planned development that included forty-five single-family

homes, forty-one townhouses, and a retirement community. At that

meeting, Town Planner John Edwards and Assistant Town Planner

Vicki Smith both voiced their disapproval of the project and the

development proposal.

Three weeks later, the Planning Board voted to adopt a new

“Four-Step Design Review Process” for new subdivisions, which

imposed significant new obligations on developers. The Planning

Board specified that this new procedure would be retroactively

applied to Paragon’s application. About two months after the

Four-Step Design Review process was adopted, Paragon submitted a

new application to the Planning Board revised to comply with this

new review process.

On October 1 1 , 2005, the Hanover Planning Office conducted a

staff review of the Paragon proposal but failed to provide

advance notice to Paragon. The notice was mailed to Paragon on

the Friday before the Columbus Day holiday weekend (October 7 ,

2005) and arrived the day of the review, which took place the day

after the Columbus Day holiday (October 1 1 , 2005).

-4- On November 1 , 2005, the Planning Board held a public

hearing on Paragon’s application. After the meeting, in an

exchange captured by the Town’s tape recorder, Edwards criticized

the project’s proposed density and argued that Greensboro Road

was inadequate to handle the anticipated increase in traffic. In

a discussion regarding certain off-site improvements, Edwards

suggested, “You can make [the off-site improvements] a

requirement of this developer. It’s a bit outrageous, but they

have -- would then have to face the choice, do they tie

themselves up in court for two years litigating it . . . or do

they just go ahead and [make the improvements at their own

expense]?”

Meanwhile, Paragon prepared two applications to the Hanover

Zoning Board of Adjustment: (1) a request for a special

exception to allow construction and mitigation within wetlands or

wetland setback areas in certain areas of the Leavitt property,

and (2) a request for a variance to allow Paragon’s retirement

community to have a gabled roof five feet higher than the

vertical height limit prescribed in the zoning ordinance. The

Zoning Board scheduled a hearing to consider both the wetlands

special exception and the height variance on November 3 , 2005,

but failed to give Paragon notice of the hearing. Because

Paragon did not learn of the hearing in time, consideration of

its applications was continued until December 1 , 2005. Although

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