Developer's Lawsuit Against City Partly Dismissed

Fairhope, Alabama 

 

Proposed project denied by city.

 

Dismissal motion partly granted.

 

68 VENTURES vs. CITY/PLANNING COMMISSION

Much of a federal lawsuit filed last year against the city by local developer 68 Ventures of Spanish Fort for denying two town home projects in 2022 was dismissed by a federal judge, but one substantial count was allowed to move ahead.  

'The Gables' development was to be on Lawrence Road just south of CR 48 and 'Skyline Village' (click) on Dyer Road east of Greeno. Generally, their lawsuit alleges after being given early assurances the projects would be approved if all required conditions met, the property was purchased ... but later the projects were denied instead.

Court records show on February 14, 2023 Judge William Steele granted "motions to dismiss" made by the city's attorneys to federal claims in counts I, III, IV, and V ... but allowed count II to proceed.

Judge Steele: "... for reasons set forth ... the motion to dismiss Count I is granted with regard to federal (law) claims ... denied with respect to state; motion to dismiss Count II is denied; motion to dismiss Counts III, IV, and V are granted." 

Count I alleged arbitrary and capricious denials; Count II denial of due process; Count III denial of equal protection; Count IV equitable estoppel*; and Count V alleged misrepresentation.

(*Estoppel is the principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person or by a previous pertinent judicial determination.)

COUNT II ALLOWED TO PROCEED

Plaintiff's allegations of denial of substantive due process under both federal and state law will proceed with discovery filing due in April according to court records; in regard to state law only for Count I as well (arbitrary and capricious denials).

Questions about the validity of applicable state statutes themselves ( Al Code 11-52-3 and 30) are mentioned in the judge's ruling.

 Hand Arrendall Harrison Sale represents Fairhope in the matter; and the Rose Law Firm of Littlerock Arkansas the plaintiff. 

Plaintiffs are seeking that denial be overturned and their developments approved ... and $10 million in compensatory damages.

Count II proceeds.