Huntersville "Lagoona Bay" developer drops lawsuit against rezoning rival
Add Axios as your preferred source to
see more of our stories on Google.
Lagoona Bay was going to be an $800-million, resort-style community on a ginormous assemblage of vacant land in north Mecklenburg County. Courtesy of Bi-Part Development, LLC/Town of Huntersville
The developer of the failed Lagoona Bay project settled his libel lawsuit against the woman who runs a popular Huntersville Facebook page, according to a press release from the law firm Spengler & Agans.
Why it matters: The defendant's firm suggests the case exemplifies how powerful business interests can weaponize the legal system to silence critics.
The big picture: North Carolina is one of a handful of states without an anti-SLAPP law, according to the Institute for Free Speech, which protects people from frivolous lawsuits intended to keep them quiet.
Catch up quick: Developer Jacob Palillo sued Huntersville residents Noelle Burton and Violet Clarke in 2023. He blamed their social media posts for the collapse of his ambitious, 270-acre "beachside" community. The suit sought more than $1 million in damages from Burton, according to lawyer Eric Spengler's release.
- "He's not for the community at all. He's for himself and his greedy family," Clarke posted, QC News reported at the time.
- Palillo's company, Bi-Part Development, withdrew its application for rezoning approval for the Lagoona Bay project in 2023. At the time, he cited the economic risks and said a scaled-back version of the plan — one compliant with current zoning laws — wouldn't make more sense financially.
- Burton's counterclaim argued that Palillo's complaint had no good-faith basis.
- The case against Clark was settled separately for $25,000.
Context: Burton runs "Huntersville Unmasked," an online group with more than 2,000 members where neighbors discuss and organize around local government issues. Conversations around the town's rezoning proposals often turn fiery as the area struggles to balance its fast growth while preserving its suburban, family-friendly appeal.
What they're saying: "While freedoms in our country come at a price, this is not the price one should pay for exercising those freedoms," the press release states. "Burton will continue to speak out on issues of public importance that affect the Huntersville community."
The other side: In response to a request for comment, Palillo wrote in an email: "Her attorney sends out a marketing press release bragging he won??? He didn't! Does he think he's famous now? He wants to do press releases and interviews? Lol"
- He added: "Shocking he left out terms of the agreement. They didn't win! We will leave it at that!"
The terms of the settlement agreement include:
- Burton has to disable the "anonymous posting" feature on "Huntersville Unmasked."
- Burton has to allow Palillo in the Facebook group, but can not moderate his content.
- Both parties agree not to make statements "maliciously disparaging about the other person or the other person's family."
The bottom line: Per the release, Burton will not pay Palillo anything, although it mentions she incurred tens of thousands of dollars in attorney's fees.