The plaintiffs sued a municipality after their efforts to convert a former residence and group home into a tourist outfitting business were repeatedly delayed and burdened by changing building and zoning requirements.
The court held that the municipality owed a duty of care in the operational administration of building permits and rezoning, and breached that duty through unreasonable, inconsistent, and procedurally unfair conduct by its chief building official, compounded by the municipality's failure to supervise and its refusal to allow a later official to assist with permit closure.
Applying the municipal duty of care framework and negligent misrepresentation principles, the court found the plaintiffs suffered foreseeable economic loss.
The court awarded lost profits for 2012 to 2015, certain professional expenses, and general damages for mental distress and inconvenience, while declining to award most claimed renovation costs.
