Hayes v. Town of Manchester

The issue this case presented for the Supreme Court's review involved the power of a court to require an estate to create a trust to satisfy potential future claims against the estate, as well as the proper application of the dead man's statutes. Developers of a residential subdivision died, triggering various claims by and against their estates relating to the estates' responsibilities for the subdivision's private roadway, water, and sewer infrastructure. The Town of Manchester appealed a superior court decision denying the Town's request that the court create a trust from the assets of the estates to pay for repairs, maintenance, and improvements to the subdivision's sewer system to protect the Town's water supply. A group of homeowners separately appealed the trial court's denial of their request for a ruling that the estates had a legal obligation to dedicate the infrastructure to the Town and, until that happened, to maintain the infrastructure at their expense. After careful consideration of the parties' arguments and the applicable statutes and Vermont case law, the Supreme Court affirmed the superior court's refusal to create the trust requested by the Town, but reversed the court's denial of the homeowners' request for a ruling on their claims. The case was remanded for reconsideration of those claims based on the evidence, including evidence that the trial court previously excluded under the dead man's statute, to determine whether an enforceable promise was made concerning maintenance of the infrastructure pending its dedication to the Town.View "Hayes v. Town of Manchester" on Justia Law