Justia Real Estate & Property Law Opinion Summaries

Articles Posted in August, 2012
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Jefferson County enacted a comprehensive zoning ordinance limiting the use of certain property, including Plaintiff's property, to agricultural purposes. Before the passage of the ordinance, Plaintiff undertook various activities designed to establish business operations for its property. When the County issued a stop work order, Plaintiff, without first receiving a decision from the County's board of zoning appeals, filed a declaratory judgment action arguing that the portion of the property not previously subject to zoning qualified as a pre-existing non-conforming use. The trial court (1) concluded Plaintiff was not required to exhaust its administrative remedies, and (2) ruled that the business activities on the property qualified for protection under Tenn. Code Ann. 31-7-208. The court of appeals set the judgment aside, holding that Plaintiff had failed to exhaust its administrative remedies. The Supreme Court reversed and reinstated the judgment of the trial court, holding (1) the trial court did not err by ruling that Plaintiff was not required to exhaust the administrative remedies; and (2) the evidence did not preponderate against the trial court's finding that Plaintiff had established operations sufficient to qualify for protection under section 13-7-208. View "Ready Mix, USA, LLC v. Jefferson County" on Justia Law

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Appellants here were property owners who alleged that a foreign municipality rezoned land that lay in the municipality but that was adjacent to their property in another municipality for the benefit of private enterprise rather than public health. The complaint sought both a declaratory judgment, alleging violations of due process and equal protection, and a writ of mandamus, alleging a regulatory taking for which Appellants were entitled to compensation. The trial court concluded (1) Appellants had standing to bring a declaratory-judgment action, but Appellants' constitutional claims failed; and (2) Appellants' takings claim failed. The court of appeals affirmed, holding that the property owners lacked standing to bring their claims without distinguishing between the declaratory judgment and mandamus claims. The Supreme Court affirmed in part, reversed in part, and remanded, holding (1) consistent with the Court's holding in Clifton v. Blanchester, Appellants did not have standing to assert a mandamus claim for appropriation of land outside the territorial limits of municipality; but (2) Appellants did have standing to bring a declaratory-judgment action to challenge the constitutionality of the ordinances. View "Moore v. Middletown" on Justia Law

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Joe Waldock appealed the grant of summary judgment quieting title to 25 percent of the mineral interests under a tract of land in Mountrail County in the successors in interest of the Estate of William C. Edwardson. Waldock argued the district court erred in deciding a 1954 administrator's deed from Edwardson's Estate to Waldock's predecessor in interest, Clark Van Horn, was equivalent to a quitclaim deed and in deciding the rule for interpreting mineral conveyances from "Duhig v. Peavy-Moore Co.," (144 S.W.2d 878 (Tex. 1940)), was not applicable to the administrator's deed. ThUpon review, the Supreme Court concluded the legal effect of the plain language of the administrator's deed conveyed 25 percent of the mineral interests to Waldock's predecessor in interest and reserved 25 percent of the mineral interests to Edwardson's Estate. Accordingly, the Court affirmed. View "Waldock v. Amber Harvest Corporation" on Justia Law

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The successors to the interests of eight siblings of John Q. Nichols ("Goughnour defendants") appealed the grant of summary judgment in a quiet title action by the successors to the interests of John Q. Nichols ("Nichols plaintiffs") to determine ownership of 1/2 of the mineral interests in a parcel of land in Mountrail County. The Goughnour defendants claimed they collectively owned 1/4 of the mineral interests in the land and the Nichols plaintiffs owned 1/4 of the mineral interests. The district court decided the Goughnour defendants collectively owned 1/9 of the mineral interests in the land and the Nichols plaintiffs owned 7/18 of the mineral interests. After review of the district court record, the Supreme Court affirmed. View "Nichols v. Goughnor" on Justia Law

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David and Marjorie George appealed the grant of summary judgment which quieted title to gravel, clay, and scoria in a quarter section of land in McKenzie County in Rosalie Veeder. Upon review, the Supreme Court concluded the district court did not err in granting summary judgment quieting title in Veeder and in denying the Georges' motion to amend their complaint to seek reformation. View "George v. Veeder" on Justia Law

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Appellant Jay Warren appealed an order that denied his Rule 55(c) and Rule 60(b)(1), SCRCP motions, as well as his independent motion to set aside a judgment sale. On appeal, he contested only the denial of his motion to set aside. Warren is a state bail bondsman, and Respondent Arrow Bonding Company is also in the bond business. Warren agreed to be responsible if a mutual client forfeited a surety bond issued by Respondent. In October 2006, Respondent obtained a $5,120.00 judgment against Warren after the client forfeited. In August 2007, the clerk issued a Judgment Execution, and on September 19, 2007, the sheriff issued an Execution Account Statement. In this statement, he reported receiving a $1,000 payment from Warren, from which he deducted his $52.50 fee, leaving $947.50 to be applied against the debt. After deducting the $947.50 and adding the interest accrued as of September 19, 2007, Warren's judgment debt stood at $4,705.15. In January 2008, Respondent brought an action to foreclose its judgment lien. Warren did not answer, and the clerk granted Respondent's motions, ordering entry of the default against Warren, and referring the matter to the Master-in-Equity. On the sales day, Warren went to the sheriff's office and tendered the amount due under the original judgment, not the amount then due in light of the accumulated interest and other fees. The Master issued a deed to Respondent, who bought all of Warren's properties, which were sold at the sale as a single lot, leaving a deficiency. Warren filed a motion to set aside the default order under Rule 55(c) and/or Rule 60(b), and to set aside the foreclosure deed. The Master denied all relief requested, and denied the request to reconsider his decision. Upon review of the matter, the Supreme Court concluded that the Master did not err in refusing to set aside the sale or by selling the properties as a single lot. View "Arrow Bonding Company v. Warren" on Justia Law

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In 2007, Fifth Third loaned Buford $406,000 in exchange for a mortgage on property that Buford purportedly owned. Fifth Third obtained a title-insurance policy from Direct Title, an issuing agent for Chicago Title. Direct Title was a fraudulent agent; its sole “member” was the actual title owner of the property and conspired with Buford to use that single property as collateral to obtain multiple loans from different lenders. When creditors foreclosed on the property in state court, Fifth Third intervened and asked Chicago Title to defend and compensate. Chicago Title refused to defend or indemnify. Chicago Title sought to avoid summary judgment, indicating that it needed discovery on the questions whether “Fifth Third failed to follow objectively reasonable and prudent underwriting standards” in processing Buford’s loan application and whether Direct Title had authority to issue the title-insurance policy. The district court granted Fifth Third summary judgment. The Sixth Circuit affirmed, noting that “When a party comes to us with nine grounds for reversing the district court, that usually means there are none.”View "Fifth Third Mortg. Co. v. Chicago Title Ins. Co." on Justia Law

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Javell, the owner of a mortgage brokerage, and Arroyo, Javell’s employee and loan processor, were convicted of two counts of mortgage-based wire fraud (18 U.S.C. 1343) based on their actions in procuring a fraudulent mortgage during an FBI sting operation. Javell was sentenced to 12 months and one day in prison. The Seventh Circuit affirmed. Javell argued the district court violated Bruton, and Javell’s Sixth Amendment rights by admitting the post-arrest statements made by Arroyo and by failing to properly instruct the jury about the rules of non-imputation. According to Javell, Arroyo’s post-arrest statements directly implicated Javell and had the jury not heard those statements, Javell would not have been convicted. Noting a “plethora” of other evidence, including recordings, the court rejected the argument. View "United States v. Javell" on Justia Law

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Real property owners (Owners) sued Appellant, the county engineer, complaining that their property had been flooded for several years and the water caused damage to their property. Owners alleged that the draining system was improperly designed, constructed, or installed and pleaded that the court require Appellant to upgrade the system to prevent future flooding. The trial court dismissed the complaint, finding that the county engineer was immune from litigation under Ohio Rev. Code 2744, which addresses political-subdivision liability for torts. Owners appealed, arguing that the design, planning, or construction of a sewer system is a proprietary function, which is an exception to political subdivision immunity. The court of appeals affirmed. The Supreme Court reversed, holding that because upgrading a storm-sewer system involves construction and design, such upgrading is a governmental, not a proprietary, function. View "Coleman v. Portage County Eng'r" on Justia Law

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William Jefferson & Co., Inc. (William Jefferson) lost a state administrative appeal in which William Jefferson challenged the Orange County Tax Assessor's valuation of a parcel of real property. William Jefferson then filed a suit in federal district court, alleging that its procedural due process rights were violated in the course of the administrative appeal hearing. The court affirmed the district court's conclusion that the state administrative appeal did not deny William Jefferson procedural due process. In a separate memorandum disposition filed concurrently with this opinion, the court affirmed the lower court's grant of the agency's motion for a protective order and its denial of class certification. View "William Jefferson & Co., Inc. v. Board of Assessment and Appeal, et al." on Justia Law