Town of Pawlet v. Banyai

7ermont Superior Court
Filed 11/9
Rutland

VERMONT SUPERIOR COURT Ky CIVIL DIVISION
Rutland Unit Case No. 22-CV-00884
83 Center St
Rutland VT 05701
802-775-4394
www.vermontjudiciary.org

Town of Pawlet v. Daniel Banyai et al

ORDER

This is a foreclosure action brought by the Town of Pawlet against Daniel Banyai, David Brodsky,
Slate Ridge Incorporated, and Spencer & Lepre LLP. This matter was reopened by order of the court on
October 14, 2024. On October 15, 2024, Defendant Banyai filed a request for foreclosure mediation. The
Town filed an objection on October 21, 2024 and Defendant Banyai filed a response on November 4,
2024. For the reasons stated below, Defendant Banyai's request for mediation is DENIED.

The Town argues that 12 V.S.A. Ch. 163 does not provide a right to mediation in this case because
this case involves a foreclosure on a judgment lien as opposed to a foreclosure of a mortgage. The Town
is correct that Chapter 163 establishes a mediation program "in actions for foreclosure of a mortgage" and
not foreclosure of a judgment lien. 12 V.S.A. § 4631(@). As such, Defendant Banyai is not entitled to
foreclosure mediation under Title 12 of the Vermont Statutes Annotated. This does not end the inquiry
for the court as mediation in this action is governed by V.R.C.P. 16.3.

Rule 16.3 states that "parties must participate in mediation pursuant to this rule unless excused by
the judge." V.R.C.P. 16.3(a)(1). The Rule goes on to state that mediation is not required in the following
cases:

A. Small claims actions under the Vermont Rules of Small Claims Procedure;
B. Actions in which at or before the filing of the last required pleading, the parties jointly
certify that they have in good faith engaged in mediation regarding the dispute that is
the subject of the action and file with the court a report of the mediator, describing the
process employed and the results;
Actions to foreclose a mortgage or evict a tenant;
mMmOO

Actions to renew a judgment;
Appeals under Rules 74-75; and
Proceedings for a writ of habeas corpus or for post-conviction relief.

V.R.C. P. 16.3(a)(2). An action to foreclose a judgment lien is not one of the listed exceptions for those
cases where mediation is not required. As such, mediation is required for actions to foreclose a judgment
lien unless otherwise ordered by the court.

Although mediation is required for this type of case, "[t]he court at any time, by its own order or
on the motion of a party, may for good cause excuse any party or parties from the application of any or all
provisions of this rule or may modify provisions of the rule to fit particular circumstances." V.R.C.P.
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22-CV-00884 Town of Pawlet v. Daniel Banyai et al
16.3(d). This case involves a long-running dispute between the Town and Defendant Banyai that has gone
from the Environmental Division, to the Vermont Supreme Court, to this court. It has resulted in a
contempt finding and a mittimus for Mr. Banyai’s imprisonment for failure to comply with the
Environmental Court’s order. See Town of Pawlet v. Banyai, 2024 VT 13 (upholding contempt sanctions
against Mr. Banyai by the Environmental Division). Given this contentious history, the court does not see
that mediation would be either successful or helpful. The court finds good cause to excuse the Town
from engaging in mediation with Defendant Banyai in this case.
Order
Plaintiff is excused from engaging in mediation in this action.

Electronically signed on November 4, 2024 pursuant to V.R.E.F. 9(d)

__________________________
Alexander N. Burke
Superior Court Judge

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22-CV-00884 Town of Pawlet v. Daniel Banyai et al