Justia Real Estate & Property Law Opinion Summaries

Articles Posted in June, 2012
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Petitioner Property Portfolio Group, LLC (PPG) appealed a superior court order which upheld a decision of the planning board of Respondent Town of Derry to grant applicant MTM Realty, LLC a waiver from a provision of the town's site plan regulations. Pursuant to the town’s site plan regulations, solid waste storage areas are required to be at least twenty-five feet from any property boundary. In 2010, as part of an application for further site plan determination, MTM submitted a request for a waiver from this requirement, seeking permission to move its dumpsters closer to its boundary with PPG which was ultimately granted. PPG and another abutter appealed to superior court. Finding no error in the superior court's judgment, the Supreme Court affirmed the decision, concluding "no extended consideration" of this case was required.

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Petitioner Kilnwood on Kanasatka Condominium Unit Association, Inc. (Association) appealed a superior court's decision that dismissed its petition to change the ownership form of twenty-nine units in a residential subdivision from condominiums to single-family simple lots. In 2010, the Association members considered reforming the Declaration to convert it from a condominium association to single-family homes, but they could not reach the unanimous vote required by the Declaration to do so. Unable to reach an accommodation with the minority members, Perry Smith, Andy and Jill Belliveau, and Rob and Candy Baker, the Association petitioned the superior court to reform the Declaration. The minority members, who are the respondents in this case, cross-petitioned the court to declare that Kilnwood remain a condominium association, and moved to dismiss. The Association argued that the Declaration should have been reformed because it was not intended to create a condominium, but rather a subdivision of single-family residential lots. Finding that the fact that large majority of the Association’s members no longer found it desirable to own their property as condominiums did not alter the underlying contractual requirement contained in the Declaration, that any amendment to “matters . . . adjudicating the ownership interest in common areas” must be approved by unanimous vote. The failure of one local realtor to list the homes for sale in Kilnwood as condominiums was irrelevant to the inquiry into the intent of the Developer when it created Kilnwood as a condominium association or when Association members purchased condominium units within Kilnwood. Accordingly, the Supreme Court affirmed the superior court in dismissing the Association's petition.

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Petitioner Nicholas Bosonetto appealed a superior court decision to grant summary judgment in favor of Respondent Town of Richmond. The decision dismissed his appeal of a decision made by the Town's Zoning Board of Adjustment (ZBA). Petitioner and his wife own property in Richmond upon which are several mobile homes. Petitioner submitted a building permit application to replace one of the mobile homes with a new three-bedroom structure at a different location on the property. The Board of Selectman (BOS) denied the application based on the fact that the property is on a private road, and the Town did not have provisions for building permits on private roads. At its deliberation, the ZBA determined that Petitioner had a vested right to use the existing structures because building permits were issued for them, but that right did not permit him to replace one of the existing structures with a different "footprint" and at a different location on the property. Petitioner filed a declaratory action at the superior court, and requested a statutory appeal of the ZBA decision. Finding the trial court did not abuse its discretion and affirmed the trial court's dismissal of Petitioner's case.

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Petitioner Plaid Pantries, Inc. argued before the Supreme Court that the land use final order that Respondent Metro adopted after a remand from the Court did not comply with the applicable statutory standards. Metro and Respondent Tri-County Metropolitan Transit District of Oregon (TriMet) asserted that the land use final order was legally sufficient. The center of the dispute concerned the construction of one part of the South North MAX Light Rail Project. Plain Pantries and other parties challenged the land use final order before the Land Use Board of Appeals (LUBA). The parties made a number of arguments before LUBA, one of which was that Metro had exceeded its statutory authority in adopting the land use final order because the order purported to approve parts of the project that lay outside the Portland metropolitan urban growth boundary. Upon review, the Supreme Court found that Metro neither exceeded its authority not made any decision on the light rail route, associated facilities or highway improvements that was not supported by substantial evidence in the record. The Court affirmed the land use final order.

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This dispute centered around two roads owned by the Maceys, their company Family Link, and the remaining defendants (Defendants). Petitioner Nadine Gillmor previously brought suit against the Maceys seeking to interpret and enforce the terms of a settlement agreement purporting to give the Gillmors a limited private easement over one road and limited access over the other road. The court of appeals held that Gillmor had a limited private easement over the roads but that the easement would not pass on to her children from a prior marriage. Gillmor later brought two claims for access over the roads, asserting that the roads were subject to condemnation for a public access easement and that the roads had been continuously used as public thoroughfares for a period of ten years and were thus dedicated to public use as a "highway by use" under Utah Code 72-5-104. The district court dismissed the complaint based on res judicata and imposed sanctions on Gillmor's attorney for filing a claim without a basis in law. The Supreme Court (1) held that Gillmor's claims were not barred by res judiciata; and (2) vacated the imposition of sanctions. Remanded for adjudication of Gillmor's suit on the merits.

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A 2007 conveyance of commercial property in Milton was characterized by mistakes, starting with an error-filled purchase offer, so that the deed ultimately conveyed a residential parcel that was not owned by the seller at the time of conveyance and that the seller did not intend to convey. In an opinion characterized as “unpleasant to write,” the chancellor declared the purported conveyance a nullity and noted that the “matter has been litigated far beyond what a rational evaluation of its costs and potential benefits would dictate.” The chancellor found that the deed, purporting to transfer the residential parcel, was altered by the buyer’s attorney, to the detriment of the seller and without the effective consent of the seller and was ineffective to convey any property. The actual deed signed by the parties contained a reference to the residential parcel by tax number, but omitted that property from the metes and bounds description.

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Since at least 1986, the town had a deteriorating sewer system. Defects allowed inflow and infiltration (I/I). Wet weather caused overflow, contaminating the ocean, rivers, and wetlands. To avoid overflow into housing, the town installed, without approval, a bypass pump that discharged raw sewage into the Saugus River. In 2005, the town entered into a consent order with the Department of Environmental Protection, acknowledging violations of the Clean Water Act and state law; the town was required to implement plans to eliminate I/I. There was a moratorium on new connections until the problem was addressed. The town embarked on a 10-year, $27 million dollar plan. Ratepayers were to finance the majority of the plan. In the interim, the town required new connections to pay an I/I reduction contribution, calculated by multiplying, by a factor that decreased as repairs were completed, the number of gallons of new flow to be generated. Plaintiff, developers, paid $670,460 to accommodate new flow from the single-family houses and multifamily housing. The trial court concluded that the charge provided no particularized benefit to the developers; that the amount was excessive compared to regulatory costs involved; and that the charge was an impermissible tax. The Massachusetts Supreme Court vacated, finding that the charge is a fee.

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The debtors are limited partnerships that own real estate on which they operate low-income housing. In their Chapter 11 cases, the bankruptcy court concluded that, for purposes of determining the value of the secured portion of the bank’s claims under 11 U.S.C. 506(a), determination of the fair market value of various apartment complexes included consideration of the remaining federal low-income housing tax credits. The court also concluded that various rates and figures used by the bank’s appraiser were more accurate. The Sixth Circuit affirmed. A major component of the value of the bank’s claims was determination was whether the value of the remaining tax credits would influence the price offered by a hypothetical willing purchaser of the property that serves as collateral for the claims.

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In this action, a real estate company that prepared due diligence reports for a developer in connection with the potential purchase of commercial properties alleged that a rival brokerage firm was unjustly enriched when it acquired the material from the developer and later obtained a commission on the ultimate sale of the properties. Supreme Court dismissed the unjust enrichment claim against the rival brokerage firm, and the appellate division affirmed. At issue before the Court of Appeals was whether a sufficient relationship existed between the two real estate firms to provide a basis for an unjust enrichment cause of action. Based on the allegations presented in the complaint, the Court of Appeals held that the relationship between the two parties was too attenuated and affirmed.

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Richard Hurlbert, Audrey McGlashan, and Hurlbert-McGlashan, LLC (collectively, Hurlbert) had record title to property abutting Andrew and Melinda Weinstein's (collectively, Weinstein) property. This action arose from the parties' dispute about ownership of certain property. The superior court declared that Weinstein held title to the disputed land through adverse possession. Hurlbert appealed, arguing that the trial court erred because Weinstein failed to satisfy his burden of establishing the required elements of an adverse possession claim. The Supreme Court agreed and vacated the judgment, holding that Weinstein's use of the property was not sufficiently hostile and notorious to put the true owner on notice that the land in question was actually, visibly, and exclusively held by Hurlbert in antagonistic purpose.