Board of Zoning Appeals v. CaseLin Systems, Inc.

Present: Carrico, C.J., Compton, Hassell, Keenan, Koontz, and
Kinser, JJ., and Whiting, Senior Justice

BOARD OF ZONING APPEALS
OF BLAND COUNTY
                                           OPINION BY
v.   Record No. 972060         SENIOR JUSTICE HENRY H. WHITING
                                          June 5, 1998
CASELIN SYSTEMS, INC.

              FROM THE CIRCUIT COURT OF BLAND COUNTY
                     J. Colin Campbell, Judge

      The issue here is whether a landowner acquired a vested

property right to build and operate its planned medical waste

incinerator before the enactment of a county zoning ordinance

precluding such use.

      Michael L. Perkins, the predecessor in interest to CaseLin

Systems, Inc. (CaseLin) and later its president, proposed to

locate a medical waste incinerator in Bland County.    In an April

1990 public meeting of the Board of Supervisors of Bland County

(the Board), representatives of the incinerator manufacturer and

state and regional air pollution control agencies, interested

citizens, and Perkins were given an opportunity to participate

in a discussion of his proposal.

      During that meeting, the Board resolved to give Perkins a

"letter of support" regarding his proposal.   Accordingly, the

Board’s chairman wrote to state and regional waste management

and air pollution agencies in May 1990 that the Board had “voted

to support” the Perkins proposal to locate “a medical waste
incinerator in Bland County.”   Also, pursuant to a Board

resolution adopted on May 21, 1990, and the provisions of Code

§ 10.1-1408.1(B)(1), the chairman sent a “certification” to the

State Department of Waste Management that “the location and

operation of a medical waste incinerator in Bland County by Mr.

Michael Perkins is in accordance with all local ordinances.”

     Relying on the Board’s actions, CaseLin: (1) purchased land

in December 1990 for the location of its proposed medical waste

incinerator from the Bland County Development Corporation; (2)

contracted with its grantor to build an access road into the

grantor’s recently platted industrial park for CaseLin's use and

that of future lot owners; and (3) applied for the required

state air pollution and waste management agency approvals.

Citing the Board's April 1990 resolution to write a letter of

support, the Board chairman joined in the deed from the Bland

County Development Corporation to CaseLin, purportedly on behalf

of the Board, to “irrevocably acknowledge and confirm

[CaseLin’s] right . . . to use the . . . land . . . as a medical

waste incinerator facility.”    After CaseLin purchased the land,

the county administrator wrote letters to the state air

pollution and waste management agencies on February 25, 1991,

stating that “Bland County is anxiously awaiting [their]

completion of [CaseLin’s] permit application reviews."




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     However, citizens opposing the proposed incinerator

appeared before the Board on March 25, 1991, and asked for an

additional public hearing on the issue.   At two Board-scheduled

public meetings held in the following months and attended by

CaseLin officials, it appeared that a large number of citizens

opposed the plan.   Consequently, at the second meeting the Board

voted to "rescind" its April 1990 resolution of support and so

notified the Department of Waste Management, the Air Pollution

Control Board, and other state and regional officials.

     Despite the Board’s rescission of its support, CaseLin

continued to actively pursue the required state approvals until

the General Assembly imposed a moratorium on state approval from

April 1992 until December 1993.   1992 Va. Acts, c. 751, p. 1151

(imposition); 1993 Va. Acts, c. 721, p. 1009 (termination).

Although CaseLin resumed its active pursuit of the required

state approvals, it had not secured them by the time the county

enacted its comprehensive zoning ordinance on July 21, 1995,

more than 18 months after the moratorium ended.   At that time,

CaseLin’s property was zoned as a part of an agricultural

district in which its incinerator was not a permitted use.

     In the 54-month period between its acquisition of the

property in December 1990 and the enactment of the zoning

ordinance in July 1995, CaseLin had a number of surveys

conducted on the property and cleared a minimum amount of brush


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and trees to enable it to establish "a road to go in to do soil

and geo-technical boring."    The record does not indicate whether

this work was done before or after the Board withdrew its

support in May 1991.

     On July 31, 1995, the county’s zoning administrator

notified CaseLin of the enactment of the zoning ordinance and of

his decision that CaseLin did not have a vested right to use its

property for construction and operation of a medical waste

incinerator.    CaseLin appealed that decision, and the subsequent

denial of its applications for permits to build the incinerator,

to the Board of Zoning Appeals (the BZA).    Upon the BZA’s

affirmation of both decisions, CaseLin appealed to the circuit

court.   The appeals were consolidated by the court and heard on

the records certified by the BZA.

     In a written opinion, the court concluded that because

CaseLin had acquired a vested right to use its property in the

operation of a medical waste incinerator prior to the adoption

of the zoning ordinance, the BZA’s decision was “void and of no

effect.”   The BZA appeals the circuit court's final judgment

entered in conformity with that opinion.

     We begin with a discussion of property rights in relation

to zoning.     Privately held land is subject to applicable local

zoning ordinances whether enacted before or after the property

was acquired.    Generally, landowners have no property right in


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anticipated uses of their land since they have no vested

property right in the continuation of the land’s existing zoning

status.   Snow v. Amherst County Bd. of Zoning Appeals, 248 Va.

404, 408, 448 S.E.2d 606, 608-09 (1994); Town of Vienna Council

v. Kohler, 218 Va. 966, 976, 244 S.E.2d 542, 548 (1978).

However, in limited circumstances, private landowners may

acquire a vested right in planned uses of their land that may

not be prohibited or reduced by subsequent zoning legislation.

See Holland v. Board of Supervisors, 247 Va. 286, 290-91, 441

S.E.2d 20, 22-23 (1994).

     The limited circumstances are outlined in a “bright line

test” which enables such landowners to determine the point at

which they have acquired a vested right.   Town of Rocky Mount v.

Southside Investors, Inc., 254 Va. 130, 132, 487 S.E.2d 855, 856

(1997); Holland, 247 Va. at 292, 441 S.E.2d at 23.   The test is

as follows:

     [A] landowner who seeks to establish a vested property
     right in a land use classification must identify a
     significant official governmental act that is
     manifested by the issuance of a permit or other
     approval authorizing the landowner to conduct a use on
     his property that otherwise would not have been
     allowed. Additionally, and equally important, our
     test requires that the landowner establish that he has
     diligently pursued the use authorized by the
     government permit or approval and incurred substantial
     expense in good faith prior to the change in zoning.

Snow, 248 Va. at 407, 448 S.E.2d at 608 (emphasis added).




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     The parties do not dispute the evidence as to their

respective actions with relation to the sole issue in this case:

whether those actions were sufficient to vest a property right

in CaseLin.    Because the proper application of the test to the

governmental acts in this case poses a question of law, we do

not accord a presumption of correctness to the trial court’s

decision.     Board of Supervisors v. Omni Homes, Inc., 253 Va. 59,

65-66, 481 S.E.2d 460, 463, cert. denied, ___ U.S. ___, 118

S.Ct. 58 (1997); see also Town of Rocky Mount, 254 Va. at 133,

487 S.E.2d at 857.

     CaseLin has not obtained any governmental permit to build

and operate its incinerator.    However, it claims, and the BZA

denies, that the Board’s actions represented "other approval"

and constituted the "significant governmental act" required

under our bright line test.

     CaseLin correctly notes on brief that we have never defined

the term “other approval” as used in the test.    However, a

review of the other language we have used in establishing the

test, related statutes, and our prior cases gives some

indication of the parameters of the term.

     The term "other approval" is used in the context of the

identification of a "significant official governmental act that

is manifested by the issuance of a permit or other approval."

"Significant official governmental act," "issuance," and


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"permit," coupled with the word "or" imply that such "approval"

is of similar character and formality as a "permit."

        Furthermore, statutes dealing with related subjects suggest

that sufficient "approval" requires some formality.    Code

§ 10.1-1442(C), which envisions a hazardous waste facility

siting agreement with local governing bodies that is "binding

. . . in any court of competent jurisdiction," Code § 10.1-

1438(A)(3), requires such an agreement to be "executed by the

signatures of . . . the chief executive officer of the host

community, who has been so directed by a majority vote of the

local governing body."    Code § 15.1-475(B)(1) (now Code § 15.2-

2259) requires that local commissions act on proposed

subdivision plats “officially submitted for approval.”    Under

Code § 15.1-11.02 (now Code § 15.2-929), governing bodies are

required to “grant or deny siting approval” of solid waste

facilities within 120 days of their submission.

        Our rejection of a number of claims of "approval" within

the meaning of the test gives further evidence that the scope of

an "approval" is limited to an official response to a detailed

request for a use of a particular property that would not

otherwise be allowed under the law.    Neither the granting of a

variance nor the previous rezoning of particular property is a

sufficient manifestation of “approval” under the bright line

test.     See Snow, 248 Va. at 408, 448 S.E.2d at 608-09 (grant of


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variance); Town of Rocky Mount, 254 Va. at 133, 487 S.E.2d at

857 (zoning classification change).   Similarly, the partial

processing of a proposed and filed subdivision plat and site

plan does not constitute the necessary “approval.”   Town of

Stephens City v. Russell, 241 Va. 160, 164, 399 S.E.2d 814, 816

(1991).   Nor are informal assurances of future approval made by

individual board members and the county administrator sufficient

to demonstrate “approval” under the test.   Notestein v. Board of

Supervisors, 240 Va. 146, 151-52, 393 S.E.2d 205, 207-08 (1990).

     With these considerations in mind, we consider the actions

of the county asserted by CaseLin as evidence of the required

approval.   The April 1990 resolution stated only that the Board

resolved to write a letter of support, not that the Board had

approved a specific proposal regarding the operation of a

medical waste incinerator.   Cf. Town of Rocky Mount, 254 Va. at

133, 487 S.E.2d at 857 (significant governmental act authorizes

specific use to be made of the property).   Rather, the

resolution was merely a short-lived expression of the Board's

enthusiasm for the project which was later withdrawn in the face

of public criticism.

     The letters to the state agencies were simply statements of

the Board’s general support of the plan, not a specific

authorization of the project.   Moreover, the administrator’s

certification that the location and operation of the planned


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incinerator were in accordance with the local ordinances was

nothing more than a statement of the facts existing at that

time, not an authorization to proceed.   Accordingly, we hold

that the April 1990 resolution and the May 1990 letters of the

Board and county administrator to the state agencies were not an

“approval” of CaseLin’s planned incinerator within the meaning

of the test.

     However, CaseLin also contends that such an approval is

contained in the deed to CaseLin which states that the Board

“irrevocably acknowledge[d] and confirm[ed] the right of

[CaseLin] to use the herein described parcel of land . . . as a

medical waste incinerator facility.”   We find no merit in this

contention.

     Nothing in the Board’s April 1990 resolution of general

support for the project authorized the chairman to bind the

Board to CaseLin's “irrevocabl[e]” right to use the land for the

incinerator.    Therefore, the chairman could not bind the Board

as its agent.    See Leachman v. Board of Supervisors, 124 Va.

616, 621, 626-27, 98 S.E. 656, 658, 659 (1919) (chairman not

board's agent to sign unauthorized checks).

     For these reasons, we conclude that CaseLin failed to

secure governmental approval sufficient to acquire a vested

right to construct and operate a medical waste incinerator.      Our

decision makes unnecessary a consideration of whether CaseLin


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has established the other elements required to create its

asserted vested property right. *

     Accordingly, we will reverse the judgment of the trial

court and enter final judgment for the Board of Zoning Appeals

of Bland County.

                                     Reversed and final judgment.




*
  Additionally, we do not consider what effect, if any, Code
§ 10.1-1408.1(F) may have had on this case because the issue was
not raised by either party. Code § 10.1-1408.1(F) provides:

          There shall exist no right to operate a landfill or
     other facility for the disposal, treatment or storage of
     nonhazardous solid waste or hazardous waste within the
     Commonwealth. Permits for solid waste management
     facilities shall not be transferable except as authorized
     in regulations promulgated by the Board. The issuance of a
     permit shall not convey or establish any property rights or
     any exclusive privilege, nor shall it authorize any injury
     to private property or any invasion of personal rights or
     any infringement of federal, state, or local law or
     regulation.



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