Wyldwood Lodge LLC v. Joseph and Patricia Adams

Summary

The Vermont Superior Court Environmental Division denied Applicants’ motion for attorney fees after granting them summary judgment in a challenge to approval of alterations and enlargement of a nonconforming structure. The court held that no statutory or contractual exception to the American Rule applied and that the appellant’s conduct did not meet the narrow bad-faith or exceptional-justice standard for an equitable fee award.

Holdings

1. No statutory or contractual basis supported an award of attorney fees in this case.
2. The bad-faith exception did not justify an award because Appellant's questions were not facially frivolous and its conduct was not sufficiently outrageous, vexatious, oppressive, obdurate, or obstinate to constitute an exceptional case requiring fees.

Questions Presented

1. Whether the Applicants were entitled to attorney fees under a statutory or contractual exception to the American Rule.
2. Whether the exceptional bad-faith exception to the American Rule justified an award of attorney fees after the Applicants prevailed on summary judgment.

Disposition

other