Opinion ID: 1252884
Heading Depth: 1
Heading Rank: 7

Heading: Vested Rights Doctrine

Text: Owners argue that the fence has been built in reliance on the variance, and, therefore, they have a vested right in the fence which renders this action moot. In support of their argument, Owners rely on our holding in Snake River Venture v. Board of County Commissioners, 616 P.2d 744 (Wyo. 1980). In Snake River, a developer requested a permit to construct a subdivision and commercial development in Teton County. Id. at 746. After initial approval of the project, the county board of commissioners amended the relevant zoning regulations to limit the permitted density. Thereafter, the commissioners gave final approval to the developer's project, even though the proposed density exceeded the amount allowed in the amended regulations. Subsequently, a trial court held that the final approval was unlawful. Id. at 747-49. Upholding the finding of the trial court on appeal, we quoted with approval Boise City v. Blaser, 98 Idaho 789, 572 P.2d 892, 894 (1977): [W]hile a landowner who merely obtains a building permit is not protected against a future zoning change, he will be protected if, in reliance on the permit or on the existing zoning, he has made substantial expenditures or otherwise committed himself, to his substantial disadvantage, before the zoning is changed. (Citation omitted.) The fact that appellant-developer had not begun any actual construction on the project at the time of the trial court's decision [was] highly significant to our disposition of this appeal. Snake River Venture, 616 P.2d at 745. Owners contend that because they expended substantial amounts in reliance on the variance, this holding grants them a vested right to keep the six-foot fence. We disagree. Generally, a permit issued under a mistake of fact confers no vested right or privilege and may be revoked at any time. Bruno v. Zoning Board of Adjustment, 664 A.2d 1077, 1080 (Pa. Cmwlth.1995). The concept of vested rights is a judicial construct designed to provide individual relief in zoning cases involving egregious statutory or bureaucratic inequities. Id. (quoting Highland Park Community Club v. Zoning Board of Adjustment, 509 Pa. 605, 506 A.2d 887, 891 (1986)). Our decision in Snake River did not specifically address the precise conditions under which expenditures or commitments create a vested right. It has been recognized, however, that a property owner must act in good faith to acquire vested rights in a variance, and the reliance on the variance must be reasonable. See Bruno, 664 A.2d at 1080. Actions taken in reliance on a variance or permit while the time for appeal is pending are inherently unreasonable. Columbus Board of Zoning Appeals v. Wetherald, 605 N.E.2d 208, 210 (Ind.App.1992); Appeal of Gambone, 143 Pa. Cmwlth. 116, 598 A.2d 620, 626 (1991)(and cases cited therein); Bowman v. City of York, 240 Neb. 201, 482 N.W.2d 537, 546 (1992). Rather than protected activity, the commitment and expenditures under these circumstances are considered to be a calculated risk. Wetherald, supra ; Bowman, supra; Hussey v. Town of Barrington, 135 N.H. 227, 604 A.2d 82, 85 (1992). Here, Owners knew that the Board's decision was hotly contested and subject to appeal for 30 days after the time the Board rendered its final decision. Nonetheless, Owners state that before the time for appeal had passed, they executed a contract and paid a non-refundable deposit for materials, tore down substantial portions of the hedge, and paved a driveway, providing for the placement of fence posts. Owners further submit that they continued to substantially complete the construction after the appeal was filed despite the fact the petitioners had concurrently filed a motion for stay of the administrative order. Snake River does not stand for the proposition that one who knows a variance is subject to appeal may render that appeal moot if only they act quickly. Owners' affirmative statements demonstrate that they were well aware of the risks associated with proceeding with the fence during the time allowed for appeal. The theory of vested rights does not apply here.