The New London Hospital Association, Inc. v. Town of NewportAnnotate this Case
Plaintiff The New London Hospital Association, Inc. (Hospital), challenged a superior court's grant of summary judgment in favor of defendant Town of Newport (Town), in the Hospital’s appeal of the Town’s denial of the Hospital’s application for a charitable tax exemption, and denying the Hospital’s motion to amend its complaint. At a meeting held on August 29, 2016, the Newport Board of Selectmen (board) voted to deny the Hospital’s application for the 2016 tax year “because the application for the exemption was untimely and because the level of charity care provided by the hospital is very small and it is a fee for service operation.” The Town informed the Hospital of the board’s decision by letter dated September 7, 2016. Aside from the filing of a related tax form on May 23, 2016, the parties did not communicate at all regarding the Hospital’s application for a charitable exemption for tax year 2016 between the date the Form A-9 was filed and the date the application was denied by the board. The Hospital did not dispute its form was untimely filed. However, the Hospital argued the Town waived any objection to the timeliness of the Hospital’s application, and because the Hospital was able to satisfy the statutory standard of accident, mistake or misfortune. While the summary judgment motion was pending, the Hospital moved to amend its complaint to add a claim alleging an equal protection violation based upon the Town’s administrative policy, uncovered by the Hospital during discovery, of notifying particular entities, not including the Hospital, of approaching filing deadlines for tax exemptions. The trial court denied the Hospital’s motion, ruling that the amendment introduced an entirely new cause of action, would call for substantially different evidence, and would not cure the defect in the complaint. After review, the New Hampshire Supreme Court determined the trial court properly granted the Town's motion for summary judgment, and sustainably exercised its discretion in denying the Hospital's motion to amend.