Reybold Venture Group IX, LLC v. Summit Plaza Shopping Center, LLC

CourtCourt of Chancery of Delaware
DecidedFebruary 28, 2025
DocketC.A. No. 2020-0982-SEM (MTZ)
StatusPublished

This text of Reybold Venture Group IX, LLC v. Summit Plaza Shopping Center, LLC (Reybold Venture Group IX, LLC v. Summit Plaza Shopping Center, LLC) 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
Reybold Venture Group IX, LLC v. Summit Plaza Shopping Center, LLC, (Del. Ct. App. 2025).

Opinion

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

REYBOLD VENTURE GROUP IX, LLC, ) a Delaware limited liability company, ) ) Plaintiff, ) v. ) C.A. No. 2020-0982-SEM (MTZ) ) SUMMIT PLAZA SHOPPING CENTER, ) LLC, a Delaware limited liability company, ) ) Defendant. )

ORDER ADDRESSING EXCEPTIONS

WHEREAS: 1

A. Plaintiff Reybold Venture Group IX, LLC (“Reybold”) filed this action

seeking to enforce a purported easement encumbering the neighboring parcel owned

by Defendant Summit Plaza Shopping Center, LLC (“Summit” and the “Summit

Parcel”) in favor of Reybold’s adjoining parcel (the “Reybold Parcel”).2 The

disputed easement was purportedly created by a note (the “Note”) contained in a

1 On review of exceptions to a magistrate’s post-trial final report, I have conducted a de novo review and concluded the following facts were proven by a preponderance of the evidence. See DiGiacobbe v. Sestak, 743 A.2d 180, 184 (Del. 1999). References to the admitted and undisputed facts in the Pretrial Stipulation and Order (“PTO,” Docket item (“D.I.”) 55) are cited as “PTO “¶ __.” Citations in the form “[Last Name] Tr. at __” refer to trial testimony of the referenced witness, available at D.I. 66. Joint trial exhibits are cited as “JX __.” The Magistrate’s final post-trial report (D.I. 79) is cited as “Final Report at __.” 2 See D.I. 1. subdivision and development plan recorded in November 1983 (the “Record Plan”).3

Summit and Reybold disagree as to whether the Note evidences the requisite intent

by the original owner of both parcels to create an easement in favor of the Reybold

Parcel that Reybold can enforce.

B. The Record Plan was developed in 1983 to support Viola Carter’s sale

of the Summit Parcel to Summit’s predecessor, a developer (the “Developer”) with

plans to build a shopping center on the parcel. That proposed development required

rezoning the Summit Parcel.4

C. The development process involved three steps.5 First, the applicant

submits to New Castle County (the “County”) an exploratory plan with a sketch of

the proposed subdivision and “the general proposed location for buildings [and]

parking.” 6 Then, if the exploratory plan “conforms to the zoning [and] looks to be

generally acceptable,” the applicant may move to the second step of submitting a

3 D.I. 1 ¶¶ 8–11, 14. 4 PTO ¶ 5; JX 22. 5 I rely on and give appropriate weight to the expert testimony concerning the development process. Reybold presented two experts at trial: Delaware real estate attorneys Richard Forsten and Larry Tarabicos. See Forsten Tr. at 3–4; Tarabicos Tr. at 95–96. Summit presented one expert at trial: retired civil engineer Carmine Casper. See Casper Tr. at 177– 78. These experts testified consistently about the three-step process. See, e.g., Forsten Tr. at 9–11; Tarabicos Tr. at 107 (“You had a three-step process.”); Casper Tr. at 183–98 (describing the process and confirming that it was “typically how record plans were submitted and approved . . . [from a]bout 1975 up to about 1990”). 6 Forsten Tr. at 9; see also Tarabicos Tr. at 124; Casper Tr. at 183–84.

2 preliminary plan containing “more engineering, more detail, [and] more

calculations.”7 That preliminary plan is reviewed by the County’s Department of

Planning’s Subdivision Advisory Committee (the “SAC”).8 The SAC comprises

state and local agencies, including the Delaware Department of Transportation

(“DelDOT”), called the Delaware Division of Highways at the time;9 the

“Department of Public Works”; and the “[s]tate fire marshal.” 10 Finally, the

Department of Planning aggregates the various agencies’ comments to the

preliminary plan and provides them to the applicants for incorporation into the final

record plans. 11

D. The Developer retained the engineering firm Franco R. Bellafante, Inc.

(“Bellafante”) to navigate that three-step process. 12 Bellafante submitted the

7 Forsten Tr. at 9–10; Tarabicos Tr. at 124; Casper Tr. at 184–85. 8 Forsten Tr. at 9–10; Tarabicos Tr. at 106–07; Casper Tr. at 181–82. 9 Forsten Tr. at 13 (“It says Division of Highways. That’s DelDOT.”). 10 Tarabicos Tr. at 119–20 (identifying the SAC members to include “DelDOT, DNREC,” “Department of Natural Resources and Environmental Control,” “Department of Public Works,” “[m]aybe someone from the Department of Education,” and the “[s]tate fire marshal”); see also Casper Tr. at 185 (“[The SAC is] made up of different members. Like I said, the fire marshal, the highway department, DNREC, Department of Public Works and Department of Education. Other departments in the city -- in the county and state.”). 11 Heisler Tr. at 81 (testifying the County was “the aggregator” of comments from various agencies); id. at 93. 12 JX 2 (identifying Bellafante as the “agent of [the Developer]”); see also Tarabicos Tr. at 122 (testifying that “[t]he civil engineer” “[wa]s typically responsible for submitting a record plan to the County”). There is no evidence that Carter was involved in selecting or retaining Bellafante. See Tarabicos Tr. at 122–23 (“Q: Thank you. And do you know who hired Franco Bellafante? A: I really don’t. I’ve seen reference to [the Developer].”).

3 exploratory plan,13 prepared the preliminary plan for the SAC’s comments,14 and

incorporated those comments into the final plan submitted for the County’s

approval. 15

E. The Department of Planning found Bellafante’s exploratory plan

“generally satisfactory[,] except for compliance with” certain comments unrelated

to the Note. 16 Bellafante promptly submitted a preliminary plan.17

F. The SAC discussed the preliminary plan on August 8, 1983, and

members provided comments. 18 DelDOT gave its comments to Bellafante the same

day. 19 DelDOT’s first comment to Bellefante read:

1.) The proposed access location is found to be acceptable, however, planning considerations regarding future access should be given at this time for development of other lands of Viola Carter. This could be a critical issue since we would not want additional access points affecting the operation of the N. Broad Street and U.S. Rt. 301 intersection. 20

13 JX 2; JX 50; see also Tarabicos Tr. at 127; Casper Tr. at 182–83. 14 Casper Tr. at 184; see also JX 4; JX 7; JX 8; JX 9; JX 10. 15 JX 12; see also Casper Tr. at 192–93, 196–97. 16 JX 3. The comments to the exploratory plan requested “additional parking spaces,” “[i]ndicat[ing] the area reserved for the restaurant,” “[s]how[ing] the handicapped parking,” and “[s]ubmit[ting] a landscape plan[.]” See JX 3. 17 The record does not include Bellafante’s actual preliminary plan as submitted, but includes a Department of Planning letter acknowledging receipt of that plan. See JX 4. 18 JX 5. 19 JX 7. 20 Id.

4 Two days later, DelDOT told the Department of Planning simply:

1.) The proposed access location as shown on the preliminary plan is found to be acceptable.21

Although the parties were aware of the difference between DelDOT’s two

comments, they offered no evidence explaining that difference.22

G. The Department of Planning and DelDOT discussed Bellafante’s

preliminary plan the next day.23 According to an internal memorandum

memorializing those discussions,

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Reybold Venture Group IX, LLC v. Summit Plaza Shopping Center, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reybold-venture-group-ix-llc-v-summit-plaza-shopping-center-llc-delch-2025.