Cynosure v. Champlain Valley Dispensary
25-cv-371
| Vt. Super. Ct. | Sep 16, 2025Background
- Cynosure, Inc. (landlord) obtained an ex parte Order approving attachment of two bank accounts held in tenant Champlain Valley Dispensary’s name at Eastrise Credit Union.
- Intervenor Acquiom Agency Services (secured creditor) claimed superior rights to the same accounts and moved to dissolve the trustee process.
- After hearings and briefing, the court granted Acquiom’s motion and dissolved the trustee process.
- Cynosure moved for permission to file an interlocutory appeal under V.R.A.P. 5(b) and 5.1(a), arguing dissolution would irreparably impair its ability to collect a future judgment.
- The court denied permission to appeal: it found the Rule 5(b) criteria unmet (order not a controlling issue of law affecting the core litigation) and declined collateral-order review under Rule 5.1(a) because Cynosure failed to show the order would be effectively unreviewable after final judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether interlocutory appeal is permitted under V.R.A.P. 5(b) (controlling question of law; advances termination) | Cynosure: dissolution of trustee process is appealable and affects its ability to collect judgment from Eastrise accounts | Acquiom: (implicit) the order is collateral and does not control the substantive lease dispute; interlocutory review unnecessary | Denied — court found the order not a controlling legal question that would materially advance termination of the litigation |
| Whether collateral-order interlocutory appeal is permitted under V.R.A.P. 5.1(a) (conclusive, separate, effectively unreviewable) | Cynosure: dissolution will allow depletion of assets and render any future judgment ineffectual (irreparable harm) | Acquiom: did not contest conclusive/separate nature; argued (implicitly) that funds would be available or that appeal can wait | Denied — court found conclusive/separate criteria met but Cynosure failed to show the order would be effectively unreviewable after final judgment |
Key Cases Cited
- In re Pyramid Co. of Burlington, 141 Vt. 294, 449 A.2d 915 (Vt. 1982) (articulates V.R.A.P. 5(b) criteria and narrow scope for interlocutory appeals)
- In re F.E.F., 156 Vt. 503, 594 A.2d 897 (Vt. 1991) (explains collateral-order doctrine and its limited, discretionary nature)
- In re J.G., 160 Vt. 250, 627 A.2d 362 (Vt. 1993) (example of interlocutory review where delay would cause irreparable loss of important rights)
- State v. Haynes, 2019 VT 44, 210 Vt. 417 (Vt. 2019) (recognizes trial court discretion in granting/denying interlocutory appeal)
- State v. Lafayette, 148 Vt. 288, 532 A.2d 560 (Vt. 1987) (defines ‘‘effectively unreviewable’’ as rights likely lost if review delayed)
- NCDR, L.L.C. v. Mauze & Bagby, P.L.L.C., 745 F.3d 742 (5th Cir. 2014) (federal authority on what constitutes a conclusively determined issue for collateral-order review)
- In re Diet Drugs (Phentermine/Fenfluramine/Dexfenfluramine) Prods. Liab. Litig., 401 F.3d 143 (3d Cir. 2005) (federal discussion of unreviewability prong; interim financial awards not automatically "effectively unreviewable")
