San-Ken Homes, Inc. v. New Hampshire Attorney General

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Plaintiff San-Ken Homes, Inc. (San-Ken) appealed a superior court decision requiring it to apply for registration or exemption with defendant New Hampshire Attorney General, Consumer Protection and Antitrust Bureau (Bureau), under the Land Sales Full Disclosure Act (Act), and to make certain improvements to Old Beaver Road in the Oakwood Common subdivision in New Ipswich. The Act allows for exemptions from registration under certain circumstances. In October 2006, the Bureau granted a certificate of exemption to the development in which Old Beaver Road was located, 112 Chestnut, “as to the offer and sale of” the 16 lots “because of the limited character of the offering and because the subdivision is adequately regulated by municipal ordinances.” In June 2014, San-Ken, which had no relationship to 112 Chestnut, purchased nine undeveloped lots at a foreclosure sale and recorded title to the property. The New Ipswich Planning Board held a hearing on San-Ken’s application for modification of the Board’s original conditions for Old Beaver Road. As an alternative to the Board revoking the subdivision approval, Town counsel recommended that it entertain a motion to waive the prior road completion requirements and specifications on the condition that San-Ken complete certain improvements to the road at its own expense. San-Ken satisfied all of the Board’s requirements. San-Ken later appealed to the trial court challenging the Bureau's authority under the Act to require it to be registered or exempted and to require it to make improvements to Old Beaver Road. When that challenge was unsuccessful, San-Ken appealed to the New Hampshire Supreme Court, arguing the trial court erred in: (1) applying a mistaken standard of review; (2) finding San-Ken to be a successor subdivider under the Act; and (3) determining that the Bureau was within its authority to require San-Ken to further improve Old Beaver Road as a condition of obtaining a certificate of exemption. The Supreme Court concluded the trial court erred as a matter of law in finding that the Act authorized the Bureau to require San-Ken to complete Old Beaver Road to the standard promised by 112 Chestnut as a condition of obtaining a certificate of exemption. View "San-Ken Homes, Inc. v. New Hampshire Attorney General" on Justia Law