City of Wilmington v. RHR Holdings, LLC
CourtSuperior Court of Delaware
Date FiledSeptember 17, 2026
DocketN25J-03690
StatusPublished
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Full Opinion
IN THE SUPERIOR COURT OF THE STATE OF DELAWARE
THE CITY OF WILMINGTON )
a municipal corporation of the )
STATE OF DELAWARE, )
)
Plaintiff, )
v. ) Civ. A. No. N25J-03690
)
RHR HOLDINGS, LLC d/b/a )
Rowhome Rentals, LLC ) Tax Parcel – 20-027.30-277
)
Defendants. )
ORDER
Before the Court is Defendant’s Motion to Dismiss the Writ of Monition. For
the reasons that follow, Defendant’s Motion is STAYED.
I. BACKGROUND
Defendant RHR Holdings LLC (“Defendant”) owns a residential property at
505 North Broom Street, Wilmington, Delaware (“the Property”).1 The City of
Wilmington (“the City” or “Plaintiff”) assessed the Property a $10,000.00 vacant
registration fee for the year 2023, and Defendant requested a one-time waiver of the
fee because Defendant was in the process of renovating the property to create a rental
unit.2 On February 28, 2024, the City granted Defendant’s request, but the City
1
Docket Item (“D.I.” 16), ¶ 1. Defendant’s facts, as provided in the Motion to Dismiss Writ of
Monition are accepted as accurate for purposes of this decision.
2
Id., ¶ 2.
1
also informed Defendant that the property had to be occupied by January 1, 2025 to
avoid the imposition of an additional vacant property registration fee.3
On July 25, 2024, Defendant entered a residential lease agreement for the
Property, and Defendant asserts it timely leased the Property in accord with the
City’s January 1, 2025 directive.4 But, the City also assessed a vacant property fee
for 2024.5 The City then sent Defendant two bills for vacant property assessments
for calendar years 2023 and 2024, and Defendant contested both charges in writing.6
The City removed the 2023 vacant property fee assessment, but the 2024 assessment
remained.7 Defendant contends the 2024 vacant property fee assessment is
improper, and it sent additional correspondence to the City requesting it remove the
2024 vacant property assessment. The 2024 assessment remains on the books, and
the City instituted a monition proceeding to collect the balance due.
To that end, on December 5, 2025, Plaintiff recorded a Writ of Monition
(“Writ”) in this Court,8 and on December 17, 2025, this Court issued the Writ.9 On
3
The February 28, 2024 letter from the City to Defendant indicates the requested waiver was
granted. Id., Ex. 1. Attached to Exhibit 1 was a form indicating a party’s “Appeal Rights” to
contest vacant property assessments. Id.
4
Id., ¶ 4.
5
Id., ¶ 5.
6
Id., ¶¶ 7-8.
7
Id., ¶ 9.
8
D.I. 1.
9
D.I. 2.
2
April 1, 2026, Defendant filed a first Motion to Dismiss the Writ of Monition,10 and
on May 14, 2026 Defendant filed a second Motion to Dismiss the Writ of Monition.11
Plaintiff scheduled a sheriff sale to collect the fee for April 16, 2026,12 but that
sale was stayed on April 5, 2026.13 The sheriff sale was rescheduled to July 14,
2026,14 and that proceeding has also been stayed.
On July 6, 2026, this Court received Plaintiff’s Response In Opposition To
Defendant’s Motion to Dismiss Writ of Monition.15 Therein, the City argues this
Court should deny Defendant’s motion to dismiss “because it asks this Court to
resolve issues that are wholly outside the limited scope of a monition proceeding and
seeks judicial review of administrative determinations that Defendant never properly
appealed.”16 Plaintiff notes Defendant does not contend the City failed to comply
with the statutory requirement governing the issuance of a writ of monition, and
Defendant does not argue the lien was satisfied.17 According to Plaintiff, Defendant
failed to pursue the available administrative remedy available to challenge the City’s
assessment of the vacant property registration fee, and Defendant’s filing in this
Court amounts to a collateral attack on the underlying assessment. The City
10
D.I. 9.
11
D.I. 16.
12
D.I. 7, Ex. A.
13
D.I. 12.
14
D.I. 19, Ex. A.
15
D.I. 21.
16
Id., ¶ 1.
17
Id., ¶ 2.
3
contends Defendant’s failure to exhaust an available administrative remedy is fatal
to its motion to vacate, and Defendant’s motion is procedurally barred.18
Finally, Defendant contends the City’s position is that if it properly filed a
writ of monition, and Defendant fails to identify a defect in that process, “there is
nothing that the landowner/defendant or the Court can do to stop the Sheriff’s Sale
of the property.”19 Defendant asserts the City’s position – “that this Court’s review
of a City-filed Monition is strictly limited to defects in the process and landowners
are prohibited from challenging the underlying basis for the imposition of the
municipal lien supporting the Writ of Monition” is unsupported by caselaw or
statue.20 Defendant also disputes that its alleged failure to exhaust administrative
remedies precludes it from filing a Motion to Dismiss.21 Defendant argues Chapter
7, Section 5-705 of the City Code does not mandate it follow the provided appeal
procedure, and does not create an “affirmative obligation on a landowner to first be
limited to a Board of License and Inspection review and precluded from coming to
Superior Court for judicial relief.”22
18
Id., ¶¶ 8-12.
19
D.I. 24, ¶ 1.
20
Id., ¶ 2.
21
Id., ¶ 3.
22
Id., ¶ 5. Defendant also contends the City is not “afforded the protection of the Delaware
Administrative Procedures Act (29 Del. C. § 10101 et seq.) . . . as the definition of a state “agency”
as defined in § 10102 specifically excludes municipalities.” Id., ¶ 6.
4
II. DISCUSSION
The City contends Defendant did not pursue available administrative remedies
afforded to it by the City of Wilmington Code (the “Code”), and therefore this Court
should not intervene and decide the motion on the merits. Plaintiff encourages this
Court to apply the doctrine of exhaustion of administrative remedies and deny the
Motion.
The doctrine of exhaustion of administrative remedies lies within the
discretion of the court.23 As was explained in Levinson v. Delaware Compensation
Rating Bureau, Inc.:
Delaware has adopted the doctrine of exhaustion of administrative
remedies. A judicially created rule, the doctrine requires that where a
remedy before an administrative agency is provided, relief must be
sought by exhausting this remedy before the courts will either review
any action by the agency or provide an independent remedy. The policy
which sustains this doctrine is one of maintaining the proper
relationship between the courts and the administrative agencies. It
accomplishes this by: (1) favoring a preliminary administrative sifting
process; (2) avoiding interference with the administrative agency by
withholding judicial action the administrative process has run its
course; and (3) preventing attempts to burden the courts by a resort to
them in the first instance.24
To apply the doctrine of exhaustion of administrative remedies, Levinson
requires that the administrative body (the Commissioner of the Department of
23
Town of South Bethany v. Nagy, 2006 WL 1451528, at *6 (Del. Super. Ct. May 12, 2006) (citing
Buckson v. Town of Camden, 2001 WL 1671443, at *6 (Del. Ch. Dec. 4, 2001)).
24
Levinson v. Delaware Compensation Rating Bureau, Inc., 616 A.2d 1182, 1187 (Del. 1992)
(internal citations omitted).
5
Licenses and Inspections) must have exclusive jurisdiction to review the City’s
vacant property assessments. Here, Wilmington City Code Section 13-42(a)-(f)
details the requirements imposed on a party charged with maintaining an alleged
vacant city property. Section 13-42 provides: guidelines for the proper maintenance
of a vacant property;25 the right of members of the City’s Licenses and Inspections
Department (“L&I”) to enter and inspect vacant properties;26 how L&I should
provide a property owner service of deficiency notices,27 the processes for
administration and enforcement of the city code as it relates to vacant properties;28
the specific notice requirements to land owners of an alleged vacant property;29 and
an exclusive administrative appeal process.30 The City Code is the exclusive
administrative remedy, and does not provide an alternative process for resolving
vacant property determinations issued by L&I.31
To the extent Defendant argues the adoption of the doctrine of administrative
remedies only applies to state “agencies,” Delaware caselaw demonstrates
25
Section 13-42(a)-(b).
26
Section 13-42(c)-(d).
27
Section 13-42(e).
28
Id.
29
Id.
30
Section 13-42(f).
31
The doctrine of administrative remedies “applies only where a claim must be initiated before
an administrative agency which has exclusive jurisdiction over the matter and is able to provide
an adequate remedy.” Levinson, 616 A.2d at 1187.
6
otherwise.32 Additionally, there is nothing in the Delaware Administrative
Procedures Act (29 Del. C. § 10101 et seq.) which limits the exhaustion doctrine to
eligible state “agencies” as that term is defined by 29 Del. C. § 10102. Moreover,
as indicated in Levinson, the doctrine is a judicially created rule rather than a
jurisdictional requirement, and it generally requires a litigant to pursue an available
administrative remedy before seeking judicial intervention, particularly where the
administrative body has authority over the claim and can provide an adequate
remedy.33
In addition to the provisions of Chapter 13, Section 42 of the City of
Wilmington Code, Chapter 7, provides appellate procedures exclusive to L&I review
determinations.
Section 5-705 of the City Code provides:
Board of license and inspection review.
The board of license and inspection review shall provide an appeal
procedure whereby any person aggrieved by the issuance, transfer,
renewal, refusal, suspension, revocation or cancellation of any city
license or by any notice, order or other action as a result of any city
inspection affecting him directly (except for any civil penalty imposed
pursuant to Sections 3-12, or Chapter 13 of the City Code), shall upon
request be furnished with a written statement of the reasons for the
action taken and afforded a hearing thereon by the board of license and
inspection review. Upon such hearing, the board shall hear any
32
The doctrine of exhaustion of administrative remedies has been applied by Delaware courts to
non-state agencies. See generally Walker v. City of Wilmington, 2014 WL 4407977 at *8-9 (Del.
Ch. Sept. 5, 2014); Pleasanton v. Hugg, 2010 WL 5313228 at *1 (Del. Super. Ct. Nov. 29,
2010); Cheswold Aggregates, LLC v. Town of Cheswold, 1999 WL 743339 at *1-2 (Del. Super.
Ct. July 2, 1999).
33
Levinson, 616 A.2d at 1187.
7
evidence which the aggrieved party or the city may desire to offer, shall
make findings and render a decision in writing. The board may affirm,
modify, reverse, vacate or revoke the action from which the appeal was
taken to it.34
Additionally, Chapter 7, Section 5-708 of the City Code explicitly affords a property
owner the right to appeal L&I’s determinations to the Commissioner of Licenses and
Inspections, and a specific procedure to do so. That section provides as follows:
Sec. 5-708. - Appeals to commissioner of licenses and inspections.
The commissioner of licenses and inspections shall provide an appeal
procedure whereby any person aggrieved by any civil penalty imposed
pursuant to Sections 3-12 or Chapter 13 of the City Code may submit a
detailed written explanation of the grounds for the appeal, along with
payment in full of the civil penalty. After reviewing such written
submission, the commissioner of licenses and inspections or his or her
designee shall issue a written decision affirming, modifying, reversing,
vacating or revoking the civil penalty, and such decision shall be final.
In the event the civil penalty is reversed, revoked, vacated or decreased
in amount, the appellant shall be reimbursed for payment of the portion
of the civil penalty found to have been wrongfully imposed.35
While it is apparent Defendant attempted to resolve this disputed fee assessment
through written correspondence with the City, the record is devoid of evidence that
Defendant followed the procedure provided for in the Code to appeal an adverse
administrative determination, and the Code provided the exclusive remedy to dispute
the vacant property fee. Defendant has not asserted an appropriate remedy is
unavailable through the administrative review process -- it seeks to remove what it
34
City of Wilmington Code, Chapter 7, Section 5-705.
35
Id., Chapter 7, Section 5-708.
8
believes to be an erroneous vacant property assessment. Defendant’s recourse in
disputing the vacant property assessment rests with the administrative appeal process
as delineated in the Code.
III. CONCLUSION
Based on the foregoing, this Court declines to exercise jurisdiction over the
vacant property assessment dispute. The application of the doctrine of exhaustion
of administrative remedies requires Defendant to pursue the administrative appeal
process provided in the Code. The Commissioner of the Department of Licenses
and Inspections enjoy exclusive jurisdiction to review vacant property assessment
appeals, and the Commissioner can fashion an appropriate remedy to address
Defendant’s claim. This determination is consistent with the policy of maintaining
the proper relationship between the courts and administrative agencies by favoring
the administrative review process, avoiding interference with the administrative
agency, and preventing attempts to burden the courts with administrative appeals
when established administrative procedures are in place.
While Plaintiff was generally correct to point out that Defendant did not
identify a defect in the Writ of Monitions process which would justify granting the
pending motion to dismiss, the Motion to Dismiss Writ of Monition is STAYED
sixty days to afford Defendant an opportunity to exhaust the administrative remedies
9
noted above. Defendant shall submit a status report to this Court updating it on its
progress with the administrative appeal on or before November 13, 2026.
IT IS SO ORDERED, this 17th day of September, 2026.
/s/ Martin B. O’Connor
Commissioner
10