Theodore de Macedo Soares v. Barnet Fire District 2

2022 VT 34, 282 A.3d 1184
CourtSupreme Court of Vermont
DecidedJuly 22, 2022
Docket21-AP-290
StatusPublished
Cited by4 cases

This text of 2022 VT 34 (Theodore de Macedo Soares v. Barnet Fire District 2) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Theodore de Macedo Soares v. Barnet Fire District 2, 2022 VT 34, 282 A.3d 1184 (Vt. 2022).

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: JUD.Reporter@vermont.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2022 VT 34

No. 21-AP-290

Theodore de Macedo Soares Supreme Court

On Appeal from v. Superior Court, Caledonia Unit, Civil Division

Barnet Fire District #2 et al. June Term, 2022

Mary Miles Teachout, J.

Theodore de Macedo Soares, Pro Se, Barnet, Plaintiff-Appellant.

Devin McLaughlin of Langrock Sperry & Wool, LLP, Middlebury, for Defendant-Appellee Barnet Fire District No. 2, Prudential Committee.

Elijah R. Bergman of Larson & Gallivan Law, PLC, Rutland, for Defendant-Appellee Vermont Municipal Bond Bank.

PRESENT: Reiber, C.J., Eaton, Carroll, Cohen and Waples, JJ.

¶ 1. WAPLES, J. Plaintiff challenges the process by which defendant, the Prudential

Committee for Barnet Fire District No. 2, obtained approval for a municipal bond. The trial court

denied plaintiff’s request to invalidate the bond vote. It found that although the Prudential

Committee violated the Open Meeting Law during the process, the defect was the result of

oversight, inadvertence, and mistake, and it was cured by the Committee’s validation resolution.

The court denied plaintiff’s remaining requests for relief as well. Plaintiff argues on appeal that

the court erred in: (1) concluding that the Open Meeting Law violations could be cured under 24

V.S.A. § 1757 or 17 V.S.A. § 2662; (2) failing to address his request for a new trial; (3) denying his attorney-fee request; and (4) dismissing his claim regarding curb-stop fees. We affirm the

court’s judgment in favor of the Committee and remand to the trial court to enter final judgment

in favor of defendant Vermont Municipal Bond Bank as well.

I. Procedural History

¶ 2. The record indicates the following. The District has long had unsafe drinking

water. To address this issue, the District’s legislative body—the three-member Prudential

Committee—sought to acquire the District’s private water system and pursue state funding for its

rehabilitation. By October 2013, the Prudential Committee members had agreed to seek a loan

from the Vermont Drinking Water State Revolving Fund (SRF loan), which required issuance of

a municipal bond.

¶ 3. To secure approval for the bond, the Prudential Committee was required by statute

to take several steps. First, it needed to determine

at a regular or special meeting . . . by resolution passed by a vote of a majority of those members present and voting, that the public interest or necessity demands improvements, and that the cost of the same will be too great to be paid out of the ordinary annual income and revenue.

24 V.S.A. § 1755(a)(1). This is called a “necessity resolution.” It was then required to “order the

submission of the proposition of incurring a bonded debt to pay for public improvements to the

qualified voters of such municipal corporation at a meeting to be held for that purpose.” Id. “The

warning calling the meeting [must] state the object and purpose for which the indebtedness is

proposed to be incurred, the estimated cost of the improvements and the amount of bonds proposed

to be issued.” Id. § 1755(a)(2). The warning must also “fix the place where and the date on which

the meeting shall be held and the hours of opening and closing the polls.” Id.

¶ 4. The law includes a method by which defects in the bond process can be cured.

After voters have approved the issuance of a bond and it is discovered that “such proceedings are

defective because of failure to comply with any of the statutory requirements,” the legislative body

2 may cure a defect or omission through a resolution “by a vote of two-thirds of all its members at a

regular or a special meeting called for that purpose, stating that the defect was the result of

oversight, inadvertence, or mistake of law or fact.” Id. § 1757(a). “When such omission has been

so supplied by such resolution, all bonds . . . shall be as valid as if the statutory requirement had

been complied with.” Id. § 1757(b). The validation process is designed to prevent “the frustration

and defeat of [the] vote of the electorate” in recognition that “the efforts of municipal government

to accomplish public improvements are beset with legal intricacies” and “the fiscal affairs of our

municipalities are rarely administered by legal technicians.” Conn v. Town of Brattleboro, 120

Vt. 315, 322, 140 A.2d 6, 10 (1958).

¶ 5. In this case, the Prudential Committee did not strictly adhere to the statutory process

for securing approval of a bond. The court found that the Committee members agreed on a plan

to purchase and rehabilitate the drinking-water system and obtain funding through an SRF loan

with a municipal bond, and held many meetings on this topic. The Committee did not have a

motion before it, however, nor did it vote on a specific necessity resolution tailored to comply with

the first requirement of 24 V.S.A. § 1755(a)(1). Instead, the Committee, composed of lay persons,

agreed on the plan and proceeded to prepare for a bond vote.

¶ 6. At its December 2013 meeting, the Committee voted to set a date for “the Annual

Meeting and Bond Vote” in January 2014 with individual notice provided to taxpayers via

postcard. The Committee, on motion, voted to set the bond amount at $750,000. The agenda was

prepared and postcards mailed to District voters. The notice of annual meeting included an article

that read: “Shall the voters of Barnet Fire District #2 authorize the Prudential Committee to apply

for a loan from the Drinking Water State Revolving Loan Fund and borrow an amount not to

exceed $750,000.00 for the purchase of and improvements to the privately owned Barnet Water

System Inc.”

3 ¶ 7. After consulting with an experienced bond attorney, the Committee learned that it

could not hold the bond vote at the January 2014 meeting due to inadequate notice. The bond

attorney suggested that, at the scheduled and warned meeting, the Committee could set new dates

for a properly noticed informational meeting and subsequent bond vote, which it did. The attorney

believed that the Committee had satisfied “in substance” the requirements of the necessity

resolution because he understood that all Committee members agreed on the plan and terms of the

bond to be submitted to the members for a vote.

¶ 8. At the January 2014 meeting, the article concerning the bond was tabled due to the

procedural errors in its posting. The Committee members explained and discussed with attendees

the purchase of the water system and the bond vote proposal. Following the meeting, the bond

attorney prepared a new “Warning and Article,” which stated erroneously that its contents were

adopted and approved at the January 2014 Committee meeting. The warning notified District

voters of the upcoming bond vote and an informational meeting. In February 2014, the article,

with its “general obligation bond” provision, was approved by a vote of thirty to six. Plaintiff did

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2022 VT 34, 282 A.3d 1184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/theodore-de-macedo-soares-v-barnet-fire-district-2-vt-2022.