Steel Hill Development, Inc. v. Town of Sanbornton

392 F. Supp. 1134, 1974 U.S. Dist. LEXIS 11373
District Court, D. New Hampshire·Decided December 30, 1974·No. Civ. A. 73-280·Published·Cited by 4 cases

Opinion

*1136 OPINION

PETTINE, Chief Judge *

This case involves a second attempt by the plaintiff to have declared unconstitutional the zoning ordinance of the Town of Sanbornton as it relates to plaintiff’s property located therein. The factual background leading up to the instant Complaint can be gleaned from the previous opinion of this Court as well as that of the Court of Appeals for the First Circuit, see Steel Hill Development, Inc. v. Town of Sanbornton, 338 F.Supp. 301 (D.N.H.), aff’d 469 F.2d 956 (1st Cir. 1972). These cases will hereinafter be referred to collectively as “Steel Hill I” with citation to the relevant opinion where necessary. Therefore, only a brief review of the essential facts established in the prior litigation is necessary.

The plaintiff corporation is the owner of approximately 500 acres of land acquired in 1969 and located within the Town of Sanbornton. Prior to March 9, 1971, the land owned by plaintiff (the “Steel Hill tract”) was entirely within a zoning area requiring a minimum lot size of 35,000 square feet, or about three-fourths of an acre. On March 9, 1971, the defendant, by its Town Meeting, adopted amendments to the zoning ordinance. As a result of these amendments, approximately 70% of the Steel Hill tract is now within a zone requiring 6 acre minimum lot size and approximately 30% in an area zoned for 3 acre minimum lots. As a result of these zoning changes, plaintiff was unable to go forward with its proposed development of the Steel Hill tract, according to a “cluster” plan, to subdivide the tract into 500 to 515 family units comprising a four-season recreation community.

On February 17, 1972, this Court entered judgment for defendant Town finding, on the facts before it, that the zoning amendments were not so arbitrary or unreasonable as to deprive the plaintiff of any rights guaranteed under the United States Constitution. 338 F.Supp. 301. That decision was affirmed, in an opinion written by Chief Judge Coffin, 469 F.2d 956 (1st Cir. 1972).

The instant Complaint was filed on November 9, 1973, alleging that subsequent to the decision in the First Circuit in “Steel Hill I”, the plaintiff has altered its plan of development from a four-season recreation community to a mobile home development which allegedly “will fulfill the overwhelming public need in the region for economical housing for all segments of society.” Plaintiff further alleges that the lot size restrictions incorporated into the zoning ordinance make a mobile home development subdivision prohibitive, that therefore the ordinance is exclusionary, arbitrary, discriminatory, and totally unrelated to the public health, safety, morals and general welfare of the Town. Based on the foregoing allegations, plaintiff claims the ordinance is violative of New Hampshire Revised Statutes Annotated (N.H.R.S.A.) 31:60, and the due process and equal protection clauses of the Fourteenth Amendment to' the Constitution of the United States, as well as violative of the right to travel. Plaintiff seeks declaratory and injunctive relief; jurisdiction is alleged under 42 U.S.C. §§ 1983 and 1985.

Prior to trial defendant moved for judgment on the pleadings and for dismissal, primarily relying on the theory that the doctrines of res judicata and collateral estoppel would bar relitigation of the constitutionality of the Town’s zoning ordinance as it pertains to plaintiff’s property, an issue decided in defendant’s favor in “Steel Hill I.” As to the issue of res judicata (also referred to as “claim preclusion”) this Court, 392 F.Supp. 1144, held in its memorandum opinion of June 25, 1974:

“It is the opinion of this Court that the plaintiff’s alteration of its plan of development for the Steel Hill tract, *1137 as alleged in the Complaint, is of such overriding significance that the judgment rendered in ‘Steel Hill I,’ based as it was on a totally distinct proposal for the use of plaintiff’s property, cannot serve as conclusive on the legal issues raised herein, and that the instant action is not, therefore, precluded on the theory of res judicata. In reaching this conclusion, the Court takes particular note of the emphasis in the First Circuit’s opinion in ‘Steel Hill I’ on the ‘stop gap’ nature of its qualified approval of the Town’s zoning ordinance. It is highly significant that the proposed development therein involved was intended to create a demand for seasonal homes designed primarily for wealthy urbanites rather than serve to meet an already existing local need for first homes.” Id. at 1148 (footnote omitted; emphasis in original).

While this Court found no res judicata bar to the instant action, the question as to which issues were foreclosed herein by reason of collateral estoppel was reserved for subsequent determination. In particular, it remains defendant’s position that the District Court in “Steel Hill I” determined that the three acre minimum lot size restrictions (affecting approximately 30% of the Steel Hill tract) were reasonable and justified to protect the public health, clearly a legitimate zoning objective, see Village of Euclid v. Ambler Realty Co., 272 U.S. 365, 47 S.Ct. 114, 71 L.Ed. 303 (1926), and that this finding was affirmed by the Court of Appeals and is binding on this Court in the instant case, despite the change in the type of development proposed.

This Court reserved ruling on this issue prior to trial. 1 At this stage of the proceedings, the question of whether the reasonableness of three acre minimum lot size restrictions . on the Steel Hill tract is foreclosed by the decisions in “Steel Hill I” is again before me by way of a motion to dismiss on behalf of the defendant at the close of plaintiff’s case. Fed.R.Civ.P. 41(b). The record is sufficiently clear at this point to overcome the Court’s earlier reluctance to rule on this point.

It is settled that the following criteria must be answered in the affirmative before an issue will be considered concluded under the doctrine of collateral estoppel:

“. . . whether the issue sought to be concluded is the same as that involved in the prior action; was litigated in the prior action; was in fact judicially determined in the prior action; and whether the judgment in the prior action was dependent upon the determination made of the issue.” IB, J. Moore, Federal Practice, ¶ 0.443 [1] at 3902.

Two specific passages from the “Steel Hill I” decisions point u? equivocally towards an affirmative answer to each of the aforementioned criteria. In the District Court, Judge Bownes stated as follows :

Free access — add to your briefcase to read the full text and ask questions with AI

Steel Hill Development, Inc. v. Town of Sanbornton, 392 F. Supp. 1134, 1974 U.S. Dist. LEXIS 11373 (D.N.H. 1974).

392 F. Supp. 1134 (Steel Hill Development, Inc. v. Town of Sanbornton) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hill v. Opus Corp.
464 B.R. 361 (C.D. California, 2011)
Cloutier v. Town of Epping
547 F. Supp. 1232 (D. New Hampshire, 1982)