Unlike an April lawsuit brought by property owners contending the shutdown of the Outer Banks was unconstitutional, the latest suit claims the closure amounted to an illegal seizure of out-of-town owners’ property in violation of the U.S. Constitution.
Related story: Outer Banks property owners file federal suit challenging restrictions to their homes
On March 20, the Dare County Control Group — a multi-jurisdictional policy-making body that assumes a leadership role for the entire county during emergencies — amended a March 17 emergency declaration restricting visitor access to include non-resident property owners. Dare County did not reopen again to out-of-town property owners until early May.
“They were real selective how they did it, and who they chose to punish was the non-resident property owners,” Smith said.
In the suit, Smith argues that during that time, non-resident property owners “had no rights whatsoever to and in their real property in Dare County but were subjected to continual taxes and such utilities bills as may be required.” Property owners also lost fair market value for property rentals during the 45-day shut down.
The suit asks the county governments to pay damages, which would include rental losses during that time.
Smith said his office will soon set up a website for interested property owners to get more information about the suit. Until then, anyone interesting in joining can call his office at 252-794-3161.
“We’ll send a contract and save them a seat at the table,” he said.
The suit has been served to Dare officials, according to court records. Dare spokeswoman Dorothy Hester said the county does not comment on active litigation.
Smith is also representing Hatteras-based Surf or Sound Realty in a challenge to the North Carolina Real Estate Commission’s opinion that people who rented vacation homes this spring but were denied access should have their funds refunded.
Related story: Real Estate Commission: Give vacation home renters their money back
Smith, in an opinion issued for Surf or Sound Realty, contends that paying refunds shouldn’t fall on realty companies and homeowners, but instead Dare County and the Outer Banks’ town governments.
Based on that opinion, Surf or Sound has recently notified dozens of vacation renters that their deposits and other payments won’t be refunded, unless the property owner decides to do so. Surf and Sound instead is offering vacationers alternative weeks.
In addition, all out-of-town owners who use Surf or Sound for vacation-rental management will automatically be added to the class-action lawsuit unless they opt out, according to a letter the realty company sent to homeowners.
Dozens of renters who lost funds to Surf and Sound due to the bridge closures are attempting to launch their own lawsuit seeking refunds. The thwarted vacationers have launched a Facebook group to share information, which had more than 500 members Tuesday morning.
This is all fine and dandy, but do keep in mind homeowners will get virtually nothing out of this class action lawsuit. Expect pennies on the dollars, but Mr. Smith will make some serious money off of this. This is the way class action lawsuits work. In this case I don’t know if the county has insurance for lawsuits or if they are self-insured. Either way it will cost the taxpayers so in essence it will be self-taxation. If we are lucky it will not obtain class status and be thrown out of court. Should it go to court the cost will be paid by the taxpayers of the county. Should the county lose the taxpayers will also pay though the county probably has some type of backstop insurance if the settlement is above a certain amount. The cost of that premium in future years will rise significantly if the county lose.
For those with short memory spans the bridge settlements are an example of the expected outcome. There may be an initial offer to settle for a given amount, which was $2500 for businesses (I think). This was the ask no questions and provide no proof of anything paperwork. Those not willing to accept this could enter the class, which unfortunately did not end well for many. The $2500 was more than a lot of businesses got.
Surf or Sound just lost my business for the rest of my lifetime. And that usually includes a spring and fall house rental annually. Pitiful cash grab attempt on their part.
Hopefully they win and Dare county voters hold their leadership accountable for their discriminatory actions.
Good for them. Should be an easy win. Even if the settlement does mostly go to the lawyers, the local governments still deserve the legal condemnation for this kind of blatant, unreasonable discrimination that the ruling will convey.
I as a NRHO am glad they shut it up as I have elderly parents who had just had surgery for cancer removal who live on the island. As well as an uncle. I was good to stay in Richmond and not take anything to my parents. there is only one store on Hatteras and they still needed to be able to go get groceries and go to the drug stores. If everyone had behaved like adults and hadn’t tried to lie and sneak people on the island just because it was a nice weekend they would not have shut it up to NRHOs. I know it was locals too but the copying of passes is NRHOs I only wish Richmond and surrounding Counties had done the same thing and we wouldn’t have had an invasion of Northerners into our towns. it was a messed up time and people did what they needed to do to control the spread of a virus not to stop the visit to our 2nd homes. The stay at home order was for everyone not just those that didn’t own property in other states that were not their homes. i think the lawsuit is stupid. Are you going to sell your property in the Outer Banks? Are you going to stop going down there? i am sure the answer is NO so why would you not want to abide by the order that was keeping those people that actually live there,not elsewhere, safe. It is a small island and there is always going to be visitors to rent your 2nd homes. But once that local elderly person gets sick and dies from this virus that you brought to them what’s their recourse, who do they sue, what about the family that loses them?