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Sunday, March 31st Hello, This week we have an update on the ongoing Missing Middle Housing lawsuit. More on that below. We will be following that story through to the end, so make sure you are subscribed to our newsletter (and share it with a friend) so you can stay informed. Additionally, stay tuned for more information about an upcoming RaleighForward Happy Hour in May. More details on that when we have them, but thanks to everyone who has joined us for those. We look forward to convening more this year. Hayes Barton Neighbors Lose Motion to Dismiss and May be Ordered to Pay the Townhouse Developer’s Legal Fees Just prior to Thanksgiving, attorneys for the City and Developer argued their respective motions to dismiss the lawsuit filed by several Hayes Barton neighbors seeking to overturn Raleigh’s Missing Middle regulatory reform ordinances. The litigation is still in its early stages where various additional pretrial motions will be filed before the case eventually goes to trial. There was one significant decision filed on March 28th by the Judge. The presiding judge issued an order granted Developer’s motion to dismiss it from this lawsuit. In short, the Court essentially agreed with the Developer’s argument that it should not have been sued because only the City has the authority to enact legislation. The fact that the Developer filed an application to build a project under the terms of that ordinance does not mean they should be sued. What is a bit unusual about this order is the judge requested briefing from each side on how much attorneys’ fees the Hayes Barton Neighbors might have to pay to the Developer for wrongly suing them in the first place. Should the judge decide the Developer is entitled to receive reimbursement of its litigation costs, they could easily exceed $40-$50,000. In the briefing, the Developer’s attorneys will have to submit affidavits laying out its fees in detail, in addition to further arguing why it is entitled to its fees. But the fact that the judge requested briefing on the attorney fee reimbursement is a pretty good indication that the Hayes Barton neighbors may be at risk for paying the Developer’s legal fees. Beyond the ongoing motion practice, the parties are likely also conducting discovery and exchanging documents with each other. Given where the case stands, the trial is unlikely to occur until late Summer at the earliest and most likely will not occur before the 2024 Council election. The other pending litigation relates to the Hayes Barton neighbors administrative appeal challenging the Raleigh Board of Adjustment’s denial of the neighbor’s challenge to the City’s Preliminary Site Plan Approval. Those kinds of administrative appeals generally take less time. Therefore, that case is likely to be resolved before the end of Summer. At this point, all that has happened is the parties have agreed to the contents of what is called the “Record on Appeal.” The next step is for the parties to schedule a hearing to argue the appeal before the presiding judge. RaleighForward will provide updates as they occur. Eric Braun, Founder
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