VTRE Investments, LLC v. MontChilly, Inc.

2020 VT 77
CourtSupreme Court of Vermont
DecidedSeptember 11, 2020
Docket2019-387
StatusPublished
Cited by5 cases

This text of 2020 VT 77 (VTRE Investments, LLC v. MontChilly, Inc.) 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
VTRE Investments, LLC v. MontChilly, Inc., 2020 VT 77 (Vt. 2020).

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.

2020 VT 77

No. 2019-387

VTRE Investments, LLC Supreme Court

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

MontChilly, Inc. May Term, 2020

Megan J. Shafritz, J.

Alexander J. LaRosa of MSK Attorneys, Burlington, for Plaintiff-Appellee/Cross-Appellant.

Russell D. Barr and Scott L. Keyes of Barr Law Group, Stowe, for Defendant-Appellant/ Cross-Appellee.

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

¶ 1. ROBINSON, J. This appeal involves a dispute between neighboring property

owners over the scope and enforceability of two express easements. Defendant, MontChilly, Inc.,

appeals the trial court’s order, after an evidentiary hearing, requiring it to remove portions of a

fence that interferes with plaintiff’s easement for ingress and egress. It also contends that the trial

court improperly failed to issue a ruling on its counterclaim for trespass against plaintiff for parking

on MontChilly’s property without any legal right to do so. On cross-appeal, plaintiff, VTRE

Investments, LLC, challenges the court’s holding that it is bound by a reciprocal easement

allowing a drainpipe over its property on the ground that its predecessor in interest did not sign the

instrument creating the easement. We reverse the trial court’s order requiring MontChilly to remove portions of its fence and remand for the court to enter judgment on MontChilly’s trespass

counterclaim. With respect to VTRE’s cross-appeal, we affirm the court’s judgment and remand

for further proceedings in light of this holding.

¶ 2. The trial court’s findings reflect that MontChilly owns commercial property on the

Mountain Road in Stowe, Vermont, where it operates the Northern Lights Lodge. Michael Seaberg

is the principal owner and operator of MontChilly and lives at the Lodge with his family. His

property is bounded on one side by the Mountain Road and extends towards the West Branch River

on the other. Several residential properties sit between the Lodge and the river, including property

VTRE purchased in 2017. Nicholas Lizotte is the principal and sole member of VTRE. Before

VTRE bought the property, Lizotte lived there for some time as a tenant.

¶ 3. MontChilly’s property is burdened by various servitudes in favor of VTRE’s

property, including a right-of-way for ingress and egress from the Mountain Road over

MontChilly’s property to the VTRE parcel. In addition, a 2010 deed executed by Seaberg on

behalf of MontChilly grants VTRE’s predecessors-in-interest, the Schmidts, a sewer easement to

connect the VTRE property to the municipal sewer system.1 The deed includes a reciprocal

covenant by the grantee to “provide a 4-inch diameter drain pipe running from the common

boundary with the Grantor through [Schmidt’s] property to the river for the purpose of diverting

water flow from the sump pump(s) located within lodging facility situated on [MontChilly’s]

property to the river.” The Schmidts did not sign the instrument.

¶ 4. Tensions between the two parties escalated following a dispute over water drainage,

and VTRE sued MontChilly in July 2017. VTRE sought a declaratory judgment that MontChilly

has no right to discharge water over plaintiff’s property or to run hoses or other means of water

1 For simplicity, we refer to the properties as the “VTRE property” and the “MontChilly property” even when referring to time periods when the properties were owned by others.

2 transport over plaintiff’s property to the adjacent river.2 In response, MontChilly counterclaimed,

alleging, among other things, that occupants of the VTRE property had intentionally trespassed by

knowingly parking on MontChilly’s property without any legal right to do so.

¶ 5. In the spring of 2018, after VTRE commenced this action but before the bench trial,

MontChilly built a forty-foot fence along its property line. In response, VTRE filed an Emergency

Motion to Enjoin Defendant’s Modification and Landscape Work on Property in Dispute, arguing

that the fence encroached on a driveway turnaround on VTRE’s property. In its motion, VTRE

grounded its claim on a theory of adverse possession “and/or” prescriptive easement with respect

to the turnaround area. Following a hearing, the court declined to grant emergency injunctive

relief because VTRE had not shown irreparable harm. The court acknowledged that, viewing the

evidence most favorably to VTRE, the fence blocked an area Lizotte and his guests used to turn

around and park. As a result, visitors to the VTRE property had to park on the lawn, and Lizotte

and his visitors had to turn around on the lawn when they wanted to exit the property. But the

court concluded that any temporary damage to the lawn would not constitute “irreparable harm.”

¶ 6. In the context of that hearing, the court noted that VTRE had not formally pled its

claims for adverse possession and prescriptive easement, although the issues were clearly in the

case, and suggested that VTRE formally amend its pleadings to bring its claims “clearly into the

mix.” VTRE did not amend its complaint. At the start of the bench trial of the parties’ various

claims and counterclaims, VTRE’s counsel disavowed its claim to the turnaround by adverse

possession; in his testimony, Lizotte testified that he did not believe he had a prescriptive easement.

¶ 7. Following the trial, but before the court issued its judgment, MontChilly filed a

motion for specific performance or preliminary injunction, alleging that VTRE had dug up portions

2 VTRE’s five-count complaint sought declaratory relief with respect to a number of other alleged easement rights, and MontChilly’s counterclaim likewise raised issues not germane to this appeal. We limit our description of the parties’ respective claims and the proceedings below to the matters at issue on appeal. 3 of the drainpipe installed across its property. According to the motion, the underground drainpipe

was capped at the edge of MontChilly’s property, preventing the sump pumps in MontChilly’s

basement from evacuating water. The court denied the motion without prejudice in May 2019 and

stated that it would hold a status conference to determine whether any issues remained unaddressed

after it ruled on the pending claims.

¶ 8. In its August 2019 findings and conclusions, the court ruled that MontChilly’s fence

interfered with “VTRE’s traditionally established right-of-way” for turning around (but not for

parking) and must be removed, and that MontChilly has the right to run a four-inch diameter

drainpipe through VTRE’s property to the riverbank area, as well as to enter VTRE’s property to

inspect and maintain it. The court did not directly rule on MontChilly’s counterclaim for trespass

based on Lizotte and his guests parking on MontChilly’s property.

¶ 9. MontChilly filed a motion for reconsideration arguing, among other things, that the

court’s ruling that VTRE’s deeded easement for ingress and egress has traditionally encompassed

a turnaround area was not supported by any evidence. The court denied the motion, reiterating its

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