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THE LICENSE ALLOWING THE USE OF A BOAT SLIP AT A COUNTRY CLUB WAS REVOCABLE AT WILL BY THE COUNTRY CLUB (THE LICENSOR) (CT APP). ​

The Court of Appeals, reversing the Appellate Division, over an extensive three-judge dissenting opinion, determined that the license at issue was revocable at will by the licensor:

… [P]laintiff Skaneateles Country Club (SCC) undertook a project to construct 80 boat slips on Skaneateles Lake for the benefit of club members. Interested members, including defendant Olivia Cambs, were required to contribute an initial capitalization payment and enter into an Assignment Agreement. Through the Assignment Agreement, SCC “assign[ed] and transfer[red]” to defendant the “use and occupancy right with respect to one boat slip,” subject to certain express conditions. SCC reserved the right to determine the specific boat slip defendant would occupy, and defendant agreed to comply with all of SCC’s rules and policies, pay an annual maintenance fee, and adhere to any applicable laws, ordinances or governmental regulations. The agreement also permitted defendant to make a “Legacy Transfer” of the slip to her offspring if certain specified conditions were met. Further, the agreement provided that, “[i]n the event [defendant] elect[ed] to terminate this Assignment Agreement” or was no longer a club member, SCC would return the initial capitalization payment.

Following an unrelated dispute with defendant, SCC commenced this declaratory judgment action, seeking a declaration that the agreement was a license terminable at will by SCC. …

… [N]othing in the parties’ agreement limits SCC’s right to terminate or otherwise evinces an intent to alter the general rule that licenses are revocable at will by the licensor … . Although licenses may become irrevocable by the licensor in certain circumstances … , we are not satisfied that any such circumstances are presented here. Skaneateles Country Club v Cambs, 2023 NY Slip Op 05352, CtApp 1-24-23

Practice Point: Although under some circumstances licenses cannot be revoked at will by the licensor, that is not general rule. Here the license allowing use of boat slip at a county club was revocable at will. Nothing in the agreement evinced an intent to alter the general rule.

 

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