Agency of Transportation v. Timberlake Associates, LLC
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In this case, the Vermont Supreme Court affirmed a lower court's decision that the defendants, R.L. Vallee, Inc., and Crystal Clear Hospitality, LLC (CCH), accepted and used payments issued by the Vermont Agency of Transportation (the Agency) in connection with a condemnation order and are therefore barred from contesting the necessity of the taking or the public purpose of the Agency’s highway project under 19 V.S.A. § 506(c).
The Agency sought to acquire certain property rights for a highway project. After a judgment of condemnation was issued, the Agency tendered payments to the defendants. The defendants deposited these payments into their respective accounts but maintained that they had not "used" the funds. They appealed the judgment, intending to challenge the necessity and public purpose of the project.
The court held that depositing a check constitutes both "acceptance" and "use" of a payment under 19 V.S.A. § 506(c). It rejected the defendants' argument that they had not used the "funds" because the issue was whether they used the Agency’s payments when they deposited its checks into their accounts. The court also rejected the defendants' argument that the Agency was required to show that they knowingly, intelligently, and voluntarily waived their rights under § 506(c), noting that defendants are charged with knowledge of the law and were represented by counsel. Finally, the court did not address the defendants' argument that § 506(c) is unconstitutional, as the defendants failed to assign error to the lower court's decision not to address that argument.
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