In two cases recently decided by the New Hampshire Supreme Court, Ransmeier and Spellman represented two member towns of the Local Government Center. In the case of A&B Lumber v. Town of Pembroke, et al, (decided May 6, 2010), the New Hampshire Supreme Court determined that even though a code enforcement officer in the Town of Pembroke may have made certain representations regarding the issuance of building permits, he had no authority to bind the town contractually. Accordingly, there was no contract and there could be no tortuous interference with a contractual relationship. The court made it clear that in order for a town official to have authority to bind the town, the Board of Selectmen must have explicitly delegated that authority to that town official. There was no evidence that this was the case in this situation and the court ruled in favor of the town.

 

In Khater, et al., v. Town of Hudson, et al, (decided June 3, 2010), the New Hampshire Supreme Court affirmed the decision of the superior court and determined that there could be no cause of action based on the New Hampshire Constitution for damages when the plaintiffs, who had sought permits to sell used cars in the Town of Hudson, were denied these permits. The plaintiffs alleged that the Town discriminated against them because of their race and filed an action for damages under the New Hampshire Constitution. They specifically claimed that their equal protection rights were violated. The court determined that the plaintiffs had an adequate remedy at law in that they could have pursued their claims by appealing the initial decision of the town official to the zoning board and from there to the New Hampshire Superior Court and then to the New Hampshire Supreme Court. The court determined that as a matter of policy, litigation would multiply if it allowed a constitutional tort of a type the plaintiffs were seeking here. Accordingly, it did not allow such an action and affirmed the decision of the superior court dismissing the case.