412 South Broadway Realty, LLC & a. v. John M. Wolters, Jr. & a.

Summary

The Supreme Court of New Hampshire reviewed disputes concerning deeded rights-of-way, adverse possession, prescriptive easements, slander of title, and abuse of process. The court affirmed in part, vacated in part, and remanded, holding that the abuse-of-process judgment was improperly based in part on settlement communications inadmissible under New Hampshire Rule of Evidence 408. The court also declined to award additional carrying-cost damages and addressed the preclusive-effect arguments concerning prior proceedings.

Holdings

1. The court declined to consider the defendants' theory that subsequent conveyances independently created, ratified, or corrected defects in the original easement reservation because the theory was not pleaded or properly preserved.
2. The court held that the defendants failed to establish the unfair advantage or unfair detriment necessary for judicial estoppel, and the trial court did not err by declining to apply the doctrine.
3. Res judicata did not bar the abuse of process claim because the claim did not arise from the same transaction or occurrence as the underlying planning-board appeal.
4. Collateral estoppel did not bar the abuse of process claim because FUN Trust did not have a full and fair opportunity in the prior attorney's-fee proceedings to litigate the defendants' objectives in filing the planning-board appeal.
5. Settlement communications concerning disputed claims were inadmissible under the spirit and purpose of New Hampshire Rule of Evidence 408 when offered as evidence of liability for abuse of process. The trial court therefore erred by relying on the communications.
6. The abuse of process judgment had to be vacated and remanded because the court could not determine whether the trial court would have reached the same result without the improperly admitted settlement evidence.
7. The trial court did not clearly err by declining to award property taxes and other carrying costs as damages.
8. The court declined to consider the argument that statements before the planning board supported slander of title because that theory was not pleaded or raised before the trial court.
9. The trial court did not unsustainably exercise its discretion by denying FUN Trust attorney's fees because the defendants did not act wantonly, maliciously, oppressively, or in bad faith.

Questions Presented

1. Whether the defendants preserved and established a claim that subsequent conveyances created, ratified, or corrected defects in the original deeded right-of-way.
2. Whether 392 South Broadway was judicially estopped from denying the claimed right-of-way.
3. Whether res judicata or collateral estoppel barred FUN Trust's abuse of process claim because of prior requests for attorney's fees arising from the planning-board appeal.
4. Whether settlement communications were admissible under New Hampshire Rule of Evidence 408 to prove the defendants' motivation or liability for abuse of process.
5. Whether the trial court clearly erred by excluding carrying costs and property taxes from abuse of process damages.
6. Whether judicial privilege barred FUN Trust's slander of title claim and whether the trial court properly declined to consider an unpreserved theory based on statements before the planning board.
7. Whether FUN Trust was entitled to attorney's fees under the bad-faith litigation theory.

Disposition

reversed_and_remanded