Sunapee Difference, LLC v. New Hampshire

Plaintiff The Sunapee Difference, LLC appealed: (1) a superior court order that granted summary judgment to the State on Sunapee’s claims for breach of contract, equitable estoppel, promissory estoppel, breach of an implied covenant of good faith and fair dealing, reformation, and inverse condemnation; and (2) an order partially granting the State’s motion to dismiss Sunapee’s inverse condemnation claim. The State appealed the superior court’s order that ruled Sunapee had standing to bring a reformation claim. The matter arose from a management proposal and lease authorized by the New Hampshire legislature with regard to a ski area at Mount Sunapee State Park. The Capital Budget Overview Committee approved the Lease; a month later, the State produced a map and property description with the metes and bounds of the leasehold area. Sunapee discovered that the northern and western leasehold boundaries described in the Lease were not coterminous with those of the state park. At some time during the lease period, Sunapee had proposed expanding the ski area to the east. Sunapee obtained options to buy privately-owned land bordering the western boundary of the state park. Because the leasehold and state park boundaries were not described as coterminous in the Lease, this land could not be used for expansion without including buffer land in the leasehold. Accordingly, Sunapee requested that the State approve inclusion of the buffer land in an amendment to the Lease. Based upon the State’s assurances that it favored the western expansion plan as long as Sunapee satisfied certain conditions, Sunapee exercised the purchase options for $2.1 million. A new governor was elected during the pendency of Sunapee’s expansion plans. The new governor strongly opposed Sunapee’s plans for expansion. The Governor refused to bring the proposed expansion before the Executive Council. Sunapee subsequently sued the State for damages or alternatively, mandamus relief, alleging breach of contract. Upon review, the Supreme Court: (1) found that there were issues of material facts with regard to breach of contract, estoppel and inverse condemnation, and reversed the trial court with respect to those claims; (2) found that Sunapee had standing to bring the reformation claim; and (3) affirmed the trial court’s grant of summary judgment with regard to the breach of the implied covenant of good faith and fair dealing. The case was remanded for further proceedings.

Sunapee Difference, LLC v. New Hampshire