Schlosser & Dennis, LLC v. City of Newark Board of Adjustment

CourtSuperior Court of Delaware
DecidedMay 9, 2016
DocketN15A-09-007 RRC
StatusPublished

This text of Schlosser & Dennis, LLC v. City of Newark Board of Adjustment (Schlosser & Dennis, LLC v. City of Newark Board of Adjustment) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schlosser & Dennis, LLC v. City of Newark Board of Adjustment, (Del. Ct. App. 2016).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

SCHLOSSER & DENNIS, LLC, ) ) Appellant, ) v. ) C.A. No. N15A-09-007 RRC ) CITY OF NEWARK BOARD OF ) ADJUSTMENT, ) ) Appellee. )

Submitted: April 18, 2016 Decided: May 9, 2016

On Appellee City of Newark Board of Adjustment‟s Motion to Dismiss Appeal for Lack of Subject Matter Jurisdiction. GRANTED.

On Appellant Schlosser & Dennis, LLC‟s Motion to Consolidate. DENIED AS MOOT.

MEMORANDUM OPINION Shawn P. Tucker, Esquire, Drinker Biddle & Reath, LLP, Wilmington, Delaware, Attorney for Appellant, Schlosser & Dennis, LLC.

John W. Paradee, Esquire, Baird Mandalas Brockstedt, LLC, Dover, Delaware, Attorney for Appellee, City of Newark Board of Adjustment.

COOCH, R. J.

I. INTRODUCTION

On September 25, 2015, Appellant Schlosser & Dennis, LLC filed an appeal with this Court challenging a decision dated August 31, 2015, of the City of Newark Board of Adjustment interpreting the Newark City Code. In its appeal, Schlosser named only the Board of Adjustment and not the other parties involved in the proceeding below, including the adjacent affected property owner, Traders Alley, LLC. On October 13, 2015, the Board of Adjustment filed a “Motion to Dismiss Appeal for Lack of Subject Matter Jurisdiction.” A related appeal of the August 31 decision of the Board of Adjustment was filed on September 30 by Traders Alley, LLC, also one of the parties in the proceeding below. Schlosser then filed motions on December 18 to: (1) consolidate the two appeals; and (2) intervene in the Traders Alley appeal.

The dispositive issue before the Court is whether an affected property owner is an indispensible party whose absence from an appeal from a zoning decision of the Board of Adjustment requires that appeal‟s dismissal. In this connection, the Court must initially decide which motion to consider first: the Board of Adjustment‟s Motion to Dismiss or Schlosser‟s Motion to Consolidate.

Upon consideration of the arguments asserted in the submissions filed by all parties in both appeals, the Court has concluded that the Motion to Dismiss should be considered first (all parties and the Court have agreed that the Motion to Intervene is not now ripe for decision). For the reasons that follow, the Board of Adjustment‟s Motion to Dismiss is GRANTED and Schlosser‟s Motion to Consolidate is DENIED AS MOOT.

II. FACTUAL AND PROCEDURAL BACKGROUND1 1. In March of 2011, Traders Alley, LLC (“Traders Alley”)2 submitted a subdivision plan application (the “Plan”) to the City of Newark Department of Planning and Development (the “City”), proposing to place a parking garage and twelve (12) new apartments on its property located at 155, 157, and 159 East Main Street[,] Newark, Delaware, known as Tax Parcel No.: 18-020.00-187 (the “Traders Alley Property”), which consists of a two[-]story building, containing various uses, along with residential

1 The facts and procedural background in connection with developments pertaining to the two appeals taken to the Superior Court are taken verbatim from the Stipulation of Facts and Procedural History that was jointly submitted by the parties at the request of the Court. Stipulation of Facts and Procedural History at 1–5 (April 11, 2015) (citations to exhibits omitted) D.I. # 37. 2 The parties are not always consistent in their use of “Traders Alley” and “Trader‟s Alley.” Therefore, the Court will refer to it as “Traders Alley” because that is how that entity was designated in its separately-filed petition for certiorari with this Court. 2 apartments and parking. The project is and has been opposed by Schlosser & Dennis, LLC (“Schlosser”).

2. Schlosser is the fee simple owner of the property located at 165– 175 East Main Street, Newark, Delaware, known as Tax Parcel No.: 18- 020.00-185, which consists of a two[-]story building, containing a variety of business and commercial tenants, as well as parking in the rear of the property (the “Schlosser Property”). The Schlosser Property is immediately adjacent to the Traders Alley Property.

3. The Schlosser Property and the Traders Alley Property have adjoining parking lots and on July 7, 2007, Traders Alley and Schlosser‟s predecessor in interest entered into a cross access and parking easement (the “Cross Access Easement”). The Cross Access Easement is recorded in the Office of the Recorder of Deeds in and for New Castle County as Instrument No.: 20070711-0061810.

4. The Cross Access Easement permits the owner of the Traders Alley Property access from Main Street onto its rear parking lot, located on the Traders Alley Property, through the Schlosser Property by crossing over a portion of the Schlosser Property. The Cross Access Easement also permits the owner of the Schlosser Property to use the parking area located on the Traders Alley Property.

5. On June 8, 2015, following submission of several iterations of the Plan, and after considering Schlosser‟s objections to the Plan, the City issued an interpretation of its Code regarding the applicable parking and setback requirements.

6. On July 7, 2015, Schlosser appealed the City‟s [C]ode interpretation to the Board of Adjustment ([the] “Board”) on the questions of setback and parking requirements. Traders Alley filed its appeal the next day. The Board held a teleconference on July 31, 2015[,] with all parties, and it issued an August 3, 2015 Order consolidating the appeals and scheduling the hearing for August 19, 2015.

7. On August 4, 2015, Traders Alley filed a Complaint in the Court of Chancery[] seeking, inter alia, a temporary restraining order (“TRO”) to enjoin the Board from proceeding with the August 19, 2015 hearing. The Court of Chancery denied Traders Alley‟s request for a TRO in an August 7, 2015 Letter Opinion.

8. Two days before the August 19 Board Hearing, Traders Alley moved a second time for an emergency TRO, seeking the Board Chair‟s recusal. The Court of Chancery again denied Trader Alley‟s request for a

3 TRO. All parties to the Board hearing were made aware of the Court of Chancery‟s ruling.

9. The hearing before the Board on the parking and setback requirements went forward on August 19, 2015. At the beginning of the hearing, the Acting Board Chair entered an order consolidating the appeals and establishing a path forward for the hearing. Thereafter, the Board heard presentations from the City, Schlosser, and Traders Alley. The Board voted at the conclusion of the hearing on the issues presented.

10. The Board issued its written decision on August 31, 2015, finding that the City‟s interpretation as the setback requirements stood and that the City was correct as to the number of parking spaces required.

11. Thereafter, Traders Alley and Schlosser filed separate statutory certiorari appeals in the Superior Court regarding the Board‟s August 31, 2015 Order. Schlosser appealed on September 25, 2015, followed by Traders Alley [on September 30, 2015 (See C.A. No. 15A-09-007; C.A. No. 15A-09-009)]. While Traders Alley named the Board and the City as Defendants in [its] petition, Schlosser named only the Board.

12. On October 13, 2015, the Board moved to dismiss Schlosser‟s Superior Court certiorari appeal for lack of subject matter jurisdiction. The Board argued that Schlosser failed to name indispensible parties (the property owner, Traders Alley, and the decision maker, the City) which deprived the Superior Court of jurisdiction.3

13. On November 18, 2015, the Board, the City, and Traders Alley entered a stipulation to stay Traders Alley‟s Superior Court certiorari appeal while Traders Alley sought approval of a revised eight (8) apartment plan. The eight (8) apartment plan application was submitted in accordance with a settlement agreement between the City and Traders Alley.

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Schlosser & Dennis, LLC v. City of Newark Board of Adjustment, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schlosser-dennis-llc-v-city-of-newark-board-of-adjustment-delsuperct-2016.