Ocean Bay Mart, Inc. v. The City of Rehoboth Beach DelawareAnnotate this Case
Plaintiff-Appellant, Ocean Bay Mart, Inc. (“Ocean Bay”), owned a 7.71- acre parcel of real property in the City of Rehoboth Beach (“the City”). In June 2015, Ocean Bay submitted a Site Plan to the City proposing to develop the property into 63 residential condominium units. Under the plan, the 7.71 acres would remain a single, undivided parcel. The development would be known as “Beach Walk.” The submission of the Site Plan set into motion a chain of events over whether Beach Walk could be approved as a single, undivided parcel or whether the project had to be subdivided into individual lots corresponding to the residential units. The events included a decision by the City’s Building Inspector that the project could not be approved as a single, undivided parcel; a decision by the City’s Board of Adjustment overruling the Building Inspector’s decision; a decision by the City’s Planning Commission, rendered after the Board of Adjustment’s decision, that the Site Plan could not be considered unless it was resubmitted as a major subdivision application; a decision by the City Commissioners upholding the Planning Commission; an appeal of the Commissioners’ decision to the Superior Court, which reversed the Commissioners; and the City’s adoption of three amendments to its zoning code. Ocean Bay filed this action with the Delaware Court of Chancery, alleging that it had a vested right to have its Site Plan approved substantially in the form submitted without going through major subdivision approval, and that the City was equitably estopped from enforcing the zoning code amendments against Beach Walk. After a trial, the Court of Chancery ruled that Ocean Bay did not have a vested right to develop Beach Walk as laid out on the Site Plan and the City was not equitably estopped from enforcing its new zoning amendments. Ocean Bay appealed, but finding no reversible error, the Delaware Supreme Court affirmed.