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Subject:
Subdivision Based on Inaccurate Survey - Recourse?
Category: Relationships and Society > Law Asked by: flubber-ga List Price: $50.00 |
Posted:
17 Apr 2003 18:41 PDT
Expires: 17 May 2003 18:41 PDT Question ID: 192066 |
What liability or recourse exists if a town approves a subdivision plan, and it is later discovered that the plan was based on an inaccurate survey? An accurate survey would have shown that the plan violated a provision of the town's subdivision regulations. In this situation an accurate plan would not have been approved without changes. Further, let's assume these events occurred over 20 years ago and the company that performed the survey no longer exists. Could current property lines be challenged on the basis that the town approved an illegal subdivision? My initial assumption is that liability would primarily lie with the suveying company that made the mistake, or with the company that contracted the surveyor. I further assume that the town probably bears little responsibility, and that current landowners probably have little recourse if they are affected by the mistake. But I don't know, which is why I'm here :) In answering the question, I'm looking for a general elucidation of some of the legal principles involved. For example, the general legal liability of towns for mistakes made in the planning process, liability for survey mistakes, and mechanisms for correcting mistakes many years after the fact. | |
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Subject:
Re: Subdivision Based on Inaccurate Survey - Recourse?
Answered By: richard-ga on 19 Apr 2003 17:49 PDT Rated: |
Hello and thank you for your interesting question. It raises an interesting legal issue. Of course, my answer is not intended to substitute for informed professional advice, but I think you will find my answer helpful. If you want to sue the town, the threshold question is whether you can sue it for failing to realize that the survey was faulty, and thereby approving a subdivision plan that it should have rejected. As noted in hlabadie-ga's comment, you will not be able to sue the town if sovereign immunity bars this sort of suit. [Because the King could not be sued, neither can governmental agencies or agents be sued if their action falls within the scope of the rule (unless they consent to be sued)] Here's the New Hampshire rule: "[M]unicipalities are immune from liability for acts and omissions that constitute 'the exercise of an executive or planning function involving the making of a basic policy decision which is characterized by the exercise of a high degree of official judgment or discretion.... [the Supreme Court of New Hampshire has] recognized that '[c]ertain essential, fundamental activities of government must remain immune from tort liability so that our government can govern.'" "'We distinguish policy decisions involving the consideration of competing economic, social, and political factors from operational or ministerial decisions required to implement the policy decisions.'" HACKING v. TOWN OF BELMONT May 14, 1999 http://www.state.nh.us/judiciary/supreme/opinions/1999/hacking.htm In other words, you can't sue the town for its zoning policies and decisions. Nut you can sue the town for an "operational or ministerial" decision. I think that based on the facts as you show them, you can get past the soverign immunity barrier, if you can show that the town was careless in accepting an erroneous survey--it's not that their judgment was bad, but rather that they mishandled the operational aspect of reviewing the survey. Then the next barrier is whether they actually were careless in reviewing the survey. Here I think you have a real problem. I don't think it's the town's job to hire a surveyor to verify whether the survey submitted to them is accurate. So unless the surcey was faulty on its face, it doesn't seem that the town should be liable. So let's consider a second approach. Instead of suing the town, can you ask the town to rescind the grant of the subdivision? Probably not - - and certainly not if the person who applied for the subdivision acted in reliance on it. So if they've put in sewer and electric lines or spent other money in reliance of having the approval, you should be out of luck there. Have they spent that kind of money? I get the impression from your question that the subdivision may be unimproved. That brings us to the issue that's raised in hlabadie-ga's second comment. You would need to ask the legislature to pass special legislation to grant to the town the ability to revisit the subdivision issue. Without this legislative authorization, it is too late for the town to revisit the question. Here again I think your chance of success will turn on whether the person who applied for the subdivision has spent money and acted in reliance of it. And even if he hasn't, you can assume he will be arguing against you in the legislature, and you'll face a greater burden since you're asking them to act, and he's asking them not to act. Finally there is the title insurance question. Surely you don't have title insurance to cover you here. You have a policy that says you own what you own--and you do, don't you? So there's only one way that the insurance is relevant--and that is if there is a policy issued to the subdivider that he can claim against if your action ends up costing him money. In other words, if his title is based on the erroneous survey and the title insurance failed to spot the mistake, then if he loses his subdivision rights he may be able to make a claim against his title policy. You can't make that claim because you are ot the person who bought the policy. But maybe he will not oppose your application for the special legislation if he knows that he can get money from his insurer if you win. Google search terms used: "sovereign immunity" "new hampshire" town subdivision "erroneous servey" --and a tip of the hat to hlabadie for discovering AGO 9/9/98 http://www.state.nh.us/nhdoj/OPINIONS/9998AGO.htm I hope you find this answer useful. If any of it is unclear, please request clarification. I would appreciate it if you would hold off on rating my answer until I have an opportunity to reply. Sincerely, Google Answers Researcher richard-ga | |
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Subject:
Re: Subdivision Based on Inaccurate Survey - Recourse?
From: hlabadie-ga on 17 Apr 2003 21:20 PDT |
Incorporated towns enjoy sovereign immunity in planning matters, which are considered discretionary and quasi-legislative. There might be some recourse to title insurance companies that were supposed to insure that bounds were accurate, but that is a long shot. hlabadie-ga |
Subject:
Re: Subdivision Based on Inaccurate Survey - Recourse?
From: neilzero-ga on 18 Apr 2003 03:21 PDT |
Mistakes occur, even when great care is taken, And some work is sloppy. The sensible proceedure would be to spead the hurt among the current residents as painlessly as possible. Lawyer fees will do little, but increase the financial loss. I think it is reasonable to ask the title insurance companies to help mediate the problem and pay at least part of the loss. If hlabadie is correct: Shame on the title insurence companies for stealing our primiums for the last century or so. Neil |
Subject:
Re: Subdivision Based on Inaccurate Survey - Recourse?
From: hlabadie-ga on 19 Apr 2003 06:24 PDT |
Presumably, part of the injury that the property owners suffered is that they would be unable to demonstrate a clean title, that they would be unable to transmit the title if they decided to sell, that the prospective buyers could not obtain title insurance, etc. In addition, assessments would be incorrect and taxes unfairly apportioned. The only legal remedy appearsto be be to petition the Legislature for relief by special legislation. See: Opinion of the Attorney General of New Hampshire's office regarding the local law that addressed the request by the Town of Raymond to create and record a corrected plat of the Green Hills Trailer Park, for which the original was rendered inaccurate due to road construction inconsistent with the approved plan. AGO 9/9/98 http://www.state.nh.us/nhdoj/OPINIONS/9998AGO.htm "In order to clarify this issue, you have requested our opinion with respect to the following issues: l. Is the Legislature empowered to correct inaccuracies in a recorded subdivision plan by establishing a process for creation and recordation of a corrected assessor's plat, which supersedes, corrects and amends the existing and recorded subdivision plan and all deeds and instruments of conveyance which refer to or are based on the original subdivision plan? 2. Does HB 160-LOCAL satisfy the constitutional and common law requirements for enactment of a local law? 3. Is the process for the amendment of an original subdivision plan established by HB 160-LOCAL adequate to establish marketable title in lots within the Green Hills Trailer Park affected by the corrected assessor's plat recorded in conformity with that law? I. History of HB 160-LOCAL Green Hill Estates is a manufactured housing community located in Raymond, New Hampshire. It contains approximately 362 lots with 200 individual homes. An original subdivision plan and assessor's plat, laying out road locations and lot dimensions was recorded in 1965. However, after the recordation of the subdivision plan, the main road of the park was laid out at a different angle than that depicted in the original plat. As a result, virtually all lots in the park are laid out in configurations which were at variance with the recorded plan. Nearly all deeds to lots within the park, to the extent they reference or incorporate the original subdivision plan, contained inaccurate descriptions of lots. In recent years, the existence of an inaccurate site plan and the prevalence of inaccurate deeds caused title companies to raise questions of marketability with respect to several lots within the community. In consequence, residents of the community sought abatement of taxes from the Town of Raymond to reflect the systemic defects in title affecting lots within the community. See, HB 160-LOCAL, sec. 1, I(b),(c),(d) (Statement of Purpose). HB 160-LOCAL was enacted to address this issue in a systemic manner. As enacted, the statute authorizes the Town of Raymond to address and cure this localized problem. The statute provides that, upon the petition by a majority of the residents of the park, the Town may, by warrant article approved by the board of selectmen or town meeting, cause an amended assessor's plat to be created for the purpose of conforming the actual dimensions of all lots in the subdivision with dimensions recorded on a valid assessor's plat. HB 160-LOCAL, sec. 2, 3, 6. The statute further provides for acceptance of the plat by the Town Planning Board after public hearing, Id., sec. 7, I, and states that notice of the application for acceptance shall be given to owners of record of lands in the plat, the applicant, abutters, the public and to mortgagees according to the procedure set forth in RSA 676:4, I (d), Id., sec. 7, III. Any person aggrieved by a decision by the Planning Board regarding approval of an assessor's plat may appeal such decision to the Superior Court pursuant to RSA 677:15. Id., sec. 8, IV. The statute provides that, upon acceptance by the Town in conformity with the procedures discussed above, the plat shall be placed on record. Id., sec. 8, I. The corrected plat shall supersede any existing and inaccurate plat and that such existing plat shall be vacated to the extent it is included in or altered by a new assessor's plat. Id., sec. 3, III." [...] "It has been brought to our attention that certain title examiners have raised the question of the Legislature's authority to enact HB 160-LOCAL. As set out above, it is the view of this office that the Legislature had authority to enact HB 160-LOCAL and to prescribe the procedures and methods for creation and recordation of an assessor's plat contained in that statute. Therefore, questions concerning the authority of the Legislature to enact this statute should not preclude a finding of marketability of title. I trust the foregoing is responsive to your request." hlabadie-ga |
Subject:
Re: Subdivision Based on Inaccurate Survey - Recourse?
From: hlabadie-ga on 20 Apr 2003 05:59 PDT |
Purchasers of land or improved land in the subdivision prior to the discovery of the survey error may have recoverable losses under the terms of the standard owners's title insurance policy. The American Land Title Association http://www.alta.org/ American Land Title Association Homeowners Policy of Title Insurance for a One-to-four Family Residence Adopted 10/17/98 Section II-14 http://www.alta.org/store/forms/homeown.pdf "COVERED RISKS [...] 6. Your Title is defective. [...] 10. Someone else claims to have rights affecting Your Title arising out of fraud, duress, incompetency or incapacity. [...] 16. You are forced to remove or remedy Your existing structures, or any part of them, because they violate an existing zoning law or zoning regulation. If You are required to remedy any portion of Your existing structures, the amount of Your insurance for this Covered Risk is subject to Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A [...] 26. Your Title is unmarketable, which allows someone else to refuse to perform a`contract to purchase the Land, lease it or make a Mortgage loan on it. 27. A document upon which Your Title is based is invalid because it was not properly signed, sealed, acknowledged, delivered or recorded. [...] 29. The map, if any, attached to this Policy does not show the correct location of the Land according to the Public Records." However, depending upon the particular terms of policy, the insurance company may have an exclusion of any or all of the above, as can be seen in the language for standard exclusions. This would be probable in the case of any sales after the date that the survey error was discovered. STANDARD EXCEPTIONS FOR THE ALTA LOAN POLICY (ONE-TO-FOUR FAMILY RESIDENTIAL) http://www.alta.org/store/forms/standexc.pdf "The ALTA Standard Exceptions are suggested for use in one-to-four family residences. The Standard Exceptions are intended to facilitate the electronic transmission of title insurance policies. The Standard Exceptions are also intended to promote a prompt and efficient review of the Schedule B Exceptions from Coverage by lenders. The suggested ALTA Loan Policy Standard Exceptions relate to residential transactions and matters that are commonly excepted from coverage in Schedule B. A title company using the suggested Standard Exceptions will be able to expedite the lender's policy review. As lenders become familiar with their text or unique coding, the suggested Standard Exceptions will be readily distinguished from other exceptions peculiar to the title examined. The lender may be able to recognize Standard Exceptions by the text or by the suggested ALTA coding." [...] "Acreage Exceptions ACRX01 Any Inaccuracy in Area Any inaccuracy in the area, square footage, or acreage of land described in Schedule A or attached plat, if any. The Company does not insure the area, square footage, or acreage of the land. [...] Boundary Lines Exceptions BOUX01 Boundary Line Conflict Boundary line conflict with the adjoining tract along the ____________ line of the land. BOUX02 Boundary Line Agreement Terms and provisions of boundary line agreement concerning the __________ line of the land recorded ____________.. BOUX03 Exception to Disputed Area The following portion of the land is specifically excepted from the coverage of this Policy: ___________________________. [...] Encroachments [...] Extended Coverage Exceptions [...] EXTX03 Survey Exception - Owner's Policy Rights or claims of parties in possession and easements or claims of easements not shown by the public records, boundary line disputes, overlaps, encroachments, and any matters not of record which would be disclosed by an accurate survey and inspection of the land. EXTX04 Survey Exception - Mortgagee Policy Any state of facts as would be disclosed by an accurate survey and inspection of the premises. [...] Marketability Exception MKTX01 Unmarketability of Title Unmarketability of title due to _____________. [...] Setback Lines Exceptions SBLX01 Setback Line on Map ___________ foot setback line along the ___________ side of the land as shown on or described in the plat of the subdivision recorded ____________. SBLX02 Setback Line in Document ____________ foot setback line along the ___________ side of the land as shown by or described in the instrument recorded ______________. SBLX03 Setback Line on Survey __________ foot setback line along the _________ side of the land as reflected by survey dated __________ made by ___________, surveyor. Streets, Alleys and Roads Exceptions STRX01 Located Road (No Recording Reference) Title to and easements in, that portion of the land within the street/alley/road along the __________ of the land. STRX02 General Roads Exception (No Recording Reference) Title to, and easements in, any portion of the land lying within any highways, roads, streets, or other ways. STRX03 Future Widening Title to, and easements in, that portion of the land along the _________ of the land reserved for the widening of ___________ as disclosed by ____________. STRX04 Located Road (With Recording Reference) Terms and provisions, including title to, and easement for, street or road along the ______ of the land as provided in instrument recorded ___________. [...] Surveys Exceptions SURX01 Facts Disclosed by Survey Any rights, easements, interests or claims which may exist by reason of or reflected by the following facts shown on the survey dated ______________ by _____________. SURX02 Facts Disclosed by Inspection Any rights, easements, interests or claims which may exist by reason of or reflected by the following facts: ________. SURX03 Survey Matters After Stated Date Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or overlapping of improvements which would be disclosed by an inspection and accurate survey of the premises [arising subsequent to ___________]." Concerning the sovereign immunity of the town, the planning activities are normally immune from all tort liabitity. See the Google Answers question: http://answers.google.com/answers/main?cmd=threadview&id=185197 CTCW Newsletter _ The Scope of Municipal Immunity http://www.ctcw.org/newsletter/may-02/municipal_immunity.html "Immunity for negligent acts is not absolute. Courts have recognized exceptions to immunity where: 1. the conduct amounts to the performance of a ministerial duty; 2. an existing "known present danger" makes the duty to remedy the danger "so clear and so absolute" that there is no room for discretion; 3. the conduct arose out of the performance of "professional" or "non-governmental" conduct; or 4. the conduct was "malicious, willful and intentional"." Still, even though an official has failed in a ministerial duty, the Court may find that immunity applies. Legislative direction appears to be a requirement for ministerial duty. "Ministerial duties have been recognized when an official fails to follow statutes prescribing the manner in which to erect signs [Chart v. Dvorak, 57 Wis. 2d 92, 203 N.W.2d 673 (1973)]; the failure to strictly follow contract language governing conduct [Major v. County of Milwaukee, 196 Wis. 2d 939, 539 N.W.2d 472 (Ct. App. 1995)]; and the construction of sewers in accordance with specific designs. Allstate v. Metropolitan Sewerage District, 80 Wis. 2d 10, 258 N.W.2d 148 (1977)" And the New Hampshire cases: FREDERICK AND SHIRLEY DELANEY v. THE STATE OF NEW HAMPSHIRE March 21, 2001 http://www.state.nh.us/judiciary/supreme/opinions/2001/delan050.htm In Delaney, the Court found that the State was liable because it had failed to follow an established policy to the letter. LINDA M. BERGERON & a. v. CITY OF MANCHESTER & a. November 9, 1995 "Neither the city nor the State enjoys full sovereign immunity from tort liability. Merrill v. Manchester, 114 N.H. 722, 725, 332 A.2d 378, 383-84 (1974); RSA 541-B:19 (Supp. 1994). In fact, immunity is the exception, rather than the rule, in tort cases. See RSA 541-B:19; Schoff v. City of Somersworth, 137 N.H. 583, 589, 630 A.2d 783, 787 (1993)." [...] "Government entities are immune from liability for conduct that involves "the exercise of a legislative or judicial function, [or] the exercise of an executive or planning function involving the making of a basic policy decision which is characterized by the exercise of a high degree of official judgment or discretion." Gardner, 137 N.H. at 256, 624 A.2d at 1339 (quotation omitted); see RSA 541-B:19. In the instant case, the trial court concluded that the decision whether to install a flashing beacon at the subject intersection was not, as a matter of law, a discretionary function. In resolving discretionary immunity questions, we distinguish between planning or discretionary functions and functions that are purely ministerial. When the particular conduct which caused the injury is one characterized by the high degree of discretion and judgment involved in weighing alternatives and making choices with respect to public policy and planning, governmental entities should remain immune from liability." Immunity exists because there is a presumption of negligence, but the government must be free to govern. hlabadie-ga |
Subject:
Re: Subdivision Based on Inaccurate Survey - Recourse?
From: hlabadie-ga on 21 Apr 2003 12:30 PDT |
TITLE LXIV PLANNING AND ZONING CHAPTER 674 LOCAL LAND USE PLANNING AND REGULATORY POWERS Site Plans Section 674:44 674:44 Site Plan Review Regulations. http://gencourt.state.nh.us/rsa/html/LXIV/674/674-44.htm Part of which law provides that the Planning Board must: " (e) Include provision for waiver of any portion of the regulations in such cases where, in the opinion of the planning board, strict conformity would pose an unnecessary hardship to the applicant and waiver would not be contrary to the spirit and intent of the regulations." The new subdivision can be approved, even if it does not comply with all regulations. The developer could argue that he was being deprived of the use of his property. That might prove to be a cogent argument. This comes back to the discretionary functions of planning. Legally, the situation is fraught with difficulties and possible pitfalls. hlabadie-ga |
Subject:
Re: Subdivision Based on Inaccurate Survey - Recourse?
From: expertlaw-ga on 21 Apr 2003 16:35 PDT |
My suggestion is that you work with the other affected property owners, assuming they also object to the proposed placement of the road, and consult with a real estate lawyer. The lawyer will be able to fully evaluate your situation for any possible legal action, and may also be able to achieve the desired result without litigation. A lawyer should also be able to figure out the nature of the entities involved in the original action (whether they were individuals, partnerships, corporations, etc.), and whether any current entities (e.g., a successor corporation) bear responsibility for their mistakes. Further, a lawyer will be able to assess the application of the statute of limitations (and exceptions, such as the "discovery rule") to the facts you describe. As has been outlined above, the chance of being able to bring a successful action against the municipality is slight. However, the original landowner's successors in title may remain liable for his mistakes, and there may be insurance policies floating out there somewhere which could at least provide a source of financial compensation. My assumption is that the proposed placement of the road is that which maximizes the value of the unimproved parcel, which is now to be subdivided. It may well diminish the value of that parcel to move the road, but that's not your fault. You may be entitled to some form of equitable relief, as an innocent landowner affected by somebody else's mistake. It would be interesting to know which, if any, of the intervening owners of that property (those who owned it after the original developer, but before the present developer) had survey work done. That is, to find out when this situation first became known to the owner of that property. |
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