The operator of a houseboat rental has dismissed a lawsuit against the Town of Ocean City.
Last week, Sea Rocket OC Houseboats LLC dismissed a lawsuit that challenged the city over newly adopted ordinances that prohibited the commercial use of houseboats within corporate limits and assigned fines for any such violations. The case was voluntarily dismissed with prejudice, meaning the claims asserted in the lawsuit cannot be re-filed at any time by the plaintiff.
“Ocean City has at all times believed firmly in the legal correctness and the strength of the positions it has taken in this matter,” said Bruce Bright, attorney for the Town of Ocean City.
In April, the Ocean City Council directed staff to develop recommendations for banning houseboat rentals after discovering listings for a short-term rental operation at the Dorchester Street marina. While the town views houseboats as floating structures – which are prohibited by town code – representatives for the operator, Sea Rocket OC Houseboats LLC, argue they are vessels consistent with marina use.
Despite objections from Sea Rocket’s manager, Will Wangel, and threats of litigation from the company’s attorney, Demetrios Kaouris, the council in June adopted an ordinance prohibiting the commercial use of houseboats within corporate limits, as well as a companion ordinance assigning fines for any violations.
Days later, Sea Rocket Houseboats LLC filed suit in Worcester County Circuit Court seeking declaratory judgment and injunctive relief.
“There is a clear dispute as to the actions taken by the Town through the enactment of the Ordinances,” the initial complaint read. “It is Sea Rocket’s position that the Ordinances are invalid and not an appropriate exercise of police power. The Town disagrees with that position, and contends the Ordinances are valid and fully enforceable against the Sea Rocket. An actual controversy therefore exists between the contending Parties, that the Sea Rocket does not believe the Town’s actions are lawful.”