315 A.3d 1000
Vt.2024Background
- Plaintiffs (Housing Our Seniors in Vermont, Inc. and Lakemont Retirement Community, LLC) applied for a $750,000 grant from the Newport Development Fund Grant Committee, seeking to support a senior housing project in Newport, Vermont.
- The grant program was established by Vermont using settlement funds from the EB-5 scandal, intended for economic development in Newport, and administered with broad discretion by ACCD.
- Plaintiffs were not awarded a grant; the largest grant was instead given to Northeast Kingdom Development Corporation (NEKDC), which plaintiffs claim was ineligible.
- Plaintiffs alleged conflicts of interest on the grant committee and argued that NEKDC did not meet project criteria such as being shovel-ready or affected by the EB-5 scandal.
- The trial court dismissed the case for lack of standing, finding the grant process did not create legally enforceable rights for applicants.
- Plaintiffs appealed, contending that eligibility criteria in the grant process did create enforceable rules and thus a legally cognizable injury.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge grant awards | Plaintiffs were denied a legally cognizable interest due to eligibility criteria | No legal right to grant funds or process; grant process is discretionary | Plaintiffs lack standing |
| Existence of enforceable procedural rules | Committee's Letter of Intent created enforceable standards for application | No statutory/contractual requirement for any process; guidelines discretionary | No enforceable procedural rights |
| Actual injury to a protected legal interest | Did not receive grant due to alleged unfair process, resulting in injury | Plaintiffs are not entitled to grant or process; no injury-in-fact | No actual injury to a protected legal interest |
| Court’s jurisdiction to review executive discretion | Court should review failure to follow published criteria | Review would encroach on executive branch discretion | Judicial review not warranted; separation of powers |
Key Cases Cited
- Franklin County Sheriff’s Office v. St. Albans City Police Department, 2012 VT 62, 192 Vt. 188, 58 A.3d 207 (Vt. 2012) (Declined standing for disappointed bidder where no legal right to award process or funds existed)
- Town of Cavendish v. Vt. Pub. Power Supply Auth., 141 Vt. 144, 446 A.2d 792 (Vt. 1982) (Standing requires an actual injury to a legally protected interest)
