A New Hampshire judge has tossed out all but one claim made in a civil lawsuit filed by the owners of a popular lobster roll restaurant in Rye Harbor, who alleged they were unfairly targeted by state officials.
The lawsuit by Rye Harbor Lobster Pound accused the Pease Development Authority, as well as Geno Marconi, the former state ports director, of illegally implementing a 10% tax on portions of the restaurants’ sales, dubbed a “concessions fee,” as part of its lease in 2023. The complaint also accused Marconi and the authority of other retaliatory actions, including removing free parking spaces in front of the shack, and encouraging lobstermen to not supply the restaurant with fresh catch.
Marconi and the port’s leadership denied those allegations, arguing it had the authority to collect the concession fees, as well as implement other crowd control measures after the restaurant saw a huge increase in business during the pandemic summers of 2020 and 2021.
Last week, the judge overseeing the case dismissed the bulk of the restaurant’s allegations, leaving only a single claim related to emotional distress allegedly suffered by the father and daughter who own the restaurant, Nathan Hanscom and Sylvia Cheever.
The lobster pound sits on state-owned land that it operates on through a lease. State agencies commonly charge concession fees at private businesses that operate out of state-owned properties, such as Odiorne Point State Park and the State House cafeteria. In early 2021, the Pease board alerted Rye Harbor Lobster Pound that it could no longer serve prepared foods, such as chowders or lobster rolls, under its existing lease. That dispute eventually led to former Gov. Chris Sununu stepping into the fray; he signed a waiver allowing the restaurant to operate during the crowded summer season.
According to the lawsuit, the Pease Development Authority and Marconi then moved to alter the parking rules for the harbor, including eliminating short-term free parking spots, which the lobster pound alleges was intended to hurt business.
The suit also alleged that Marconi may have been motivated by his own interests: His family owns a lobster pound several miles up the coast in Portsmouth.
According to the lawsuit, Cheever has dealt with insomnia and depression, among other conditions, as a result of the years-long conflict with the state. Her elderly father has suffered from vertigo and lost sleep, as well as strokes, which they blame in part on the state’s actions.
With the bulk of their claims now rejected, it isn’t clear if the family will pursue the case further. Their attorney did not respond to a request for comment.
While lawyers from the New Hampshire Attorney General’s office have represented the Pease Development Authority in the case, Marconi was required to pay for his own legal counsel, even though he was sued in his capacity as a state official. That was due to an unrelated criminal case involving Marconi brought by the Attorney General’s office, alleging he improperly shared confidential motor vehicle and boat records of a Pease board member. Marconi pleaded guilty and resigned from his position last year.
Given the parallel prosecution of Marconi on criminal charges, and the unrelated civil case by the restaurant, the Attorney General denied Marconi’s request to cover the costs of a private lawyer to represent him in the lobster pound case.
Marconi has since filed his own lawsuit, demanding that Gov. Kelly Ayotte present his request for legal fees to the Executive Council for a vote, something she has so far declined to do. That case remains pending.
