Justia Real Estate & Property Law Opinion Summaries

A residential property was subject to two homeowners' associations (HOAs), Aliante Master Association and Autumn Ridge at Aliante Community Association. The homeowner fell behind on monthly assessments, resulting in both HOAs recording liens against the property. Only Aliante proceeded with a foreclosure sale. Prior to the sale, the homeowner made payments to Aliante which, if applied to the oldest assessments first, would have satisfied the superpriority portion of Aliante’s lien. Collegium Fund LLC Series 16 purchased the property at the foreclosure sale and sought to quiet title against Deutsche Bank National Trust Company, which held the first deed of trust.The Eighth Judicial District Court of Clark County conducted a bench trial and ruled in favor of Collegium Fund. The district court found that Aliante applied the homeowner’s payments to the lien debt as a whole rather than to the oldest assessments, leaving a small part of the superpriority lien outstanding. Thus, it concluded the sale was a superpriority lien foreclosure that extinguished Deutsche Bank’s deed of trust. Alternatively, the court found that even if Aliante’s superpriority lien had been satisfied, the superpriority portion of Autumn Ridge’s lien also needed to be paid off to convert the sale to a subpriority foreclosure. Since no evidence showed payment to Autumn Ridge, the court held Collegium took the property free of the deed of trust.The Supreme Court of Nevada reviewed the case de novo and reversed the district court’s judgment. The Supreme Court held that, as a matter of law, the homeowner’s payments should be presumed to satisfy the superpriority portion of Aliante’s lien unless expressly directed otherwise. Additionally, the court held that payment of only the foreclosing HOA’s superpriority lien is required to convert the sale to a subpriority foreclosure; payment of the non-foreclosing HOA’s superpriority lien is not necessary. Therefore, the bank’s first deed of trust survived the foreclosure sale, and Collegium took title subject to the deed of trust. View "DEUTSCHE BANK NAT'L TR. CO. VS. COLLEGIUM FUND LLC SER. 16" on Justia Law

Danielle Pennington was the former owner of a property that was foreclosed and sold in 2019 to the predecessor of First Hand Land, LLC. After the sale, Pennington remained on the property, and First Hand Land subsequently sought to evict her. The Superior Court of the District of Columbia granted First Hand Land a writ of restitution, permitting Pennington’s eviction from the premises. Pennington, representing herself, appealed this order and requested that the District of Columbia Court of Appeals enjoin her eviction pending the appeal, which the court denied. She was evicted the following day.Following her eviction, Pennington moved for reconsideration, presenting what she claimed was a federal district court order granting her quiet title to the property. First Hand Land responded by asserting that the purported federal order was a forgery, pointing out discrepancies such as the absence of the order from the federal court’s docket and inconsistencies with the actual disposition of Pennington’s federal case, which had been dismissed prior to the date on the alleged order. The Superior Court, in a parallel action, also found the order to be fraudulent and noted further irregularities, including mismatched dates and the submission of the forged order to official agencies.The District of Columbia Court of Appeals reviewed the materials and found, based on judicially noticeable facts and uncontested evidence, that Pennington had submitted a forged order. The court adopted a standard allowing dismissal of appeals as a sanction for willful deception and conduct grossly inconsistent with the administration of justice. Applying this standard, it dismissed Pennington’s appeal and pending motions as a sanction for her litigation misconduct, concluding that no lesser sanction would be sufficient. View "Pennington v. First Hand Land, LLC" on Justia Law

Mendocino Railway, a California railroad corporation, sought to acquire a 20-acre parcel in Willits, California owned by John Meyer through eminent domain. The property is adjacent to Mendocino Railway’s tracks and was intended for the construction and maintenance of rail facilities supporting ongoing and future freight and passenger operations. The company argued that, as a common carrier public utility under relevant statutes, it had the authority to exercise eminent domain for public use. The evidence at trial included testimony about the history of rail service on the line, Mendocino Railway’s acquisition and operations, including passenger excursions and more limited commuter and freight services, and the necessity of the property for expanding its rail facilities.The Mendocino County Superior Court conducted a bench trial and found that Mendocino Railway failed to qualify as a public utility entitled to exercise eminent domain. The court reasoned that the railway’s primary activity was excursion service, which does not confer public utility status, and was unconvinced by the evidence of passenger and freight services. The court further concluded that, even if Mendocino Railway had public utility status, it did not meet the statutory requirements for eminent domain, finding the primary purpose of the proposed taking to be for private business activities rather than public use. The court also found insufficient evidence regarding the project’s impacts on neighboring residents and questioned the credibility and timing of Mendocino Railway’s site plans.On appeal, the California Court of Appeal, First Appellate District, Division One, reversed the trial court’s judgment. The appellate court held that Mendocino Railway met its burden of proving it was a common carrier public utility under California law, and that it satisfied the statutory requirements for eminent domain: public interest and necessity, proper planning for public good and least private injury, and necessity of the property for the project. The court remanded the case for further proceedings regarding compensation to Meyer. View "Mendocino Railway v. Meyer" on Justia Law

The dispute arose from a commercial transaction in which an entity obtained a loan to purchase property, granting the lender a freely assignable and perpetual option to purchase a significant co-tenancy interest in the property. When the borrower later sought to refinance, the lender exercised the option and assigned it to another party. The borrower objected to the option’s exercise, negotiations failed over reimbursement of legal fees, and the refinancing collapsed. Litigation ensued, with the new holder of the option seeking specific performance, while the borrower claimed the option was void under South Carolina’s statutory and common law rules against perpetuities.The Circuit Court for Richland County granted partial summary judgment in favor of the borrower, holding that although the South Carolina Uniform Statutory Rule Against Perpetuities (SCUSRAP) generally superseded the common law rule against perpetuities (CLRAP), the SCUSRAP did not apply to nonvested property interests arising from nondonative transfers, such as the option in question. The Circuit Court reasoned that the common law rule continued to apply to such interests, rendering the option void. The South Carolina Court of Appeals affirmed this judgment.The Supreme Court of South Carolina reviewed the statutory construction issue de novo. It held that the SCUSRAP completely abolished the common law rule against perpetuities in South Carolina. The court found that nonvested property interests arising from nondonative transfers, which are excluded from the statutory rule, are not subject to any rule against perpetuities, statutory or otherwise. Therefore, the option was not void under either the SCUSRAP or the CLRAP. The Supreme Court reversed the judgment of the court of appeals and remanded the case to the circuit court for consideration of the borrower’s waiver defense, which had not been previously addressed. View "Spring Valley Interests, LLC v. The Best for Last, LLC" on Justia Law

A group of landowners are members of a road maintenance association responsible for maintaining private roads serving 22 parcels in Amador County. Initially, a declaration limited annual assessments per parcel to $200, although increases were anticipated. In June 2019, at an annual meeting attended by the minimum quorum, members voted 10-1 to amend the bylaws to eliminate the $200 cap. The following month, the association’s board increased the annual assessment to $1,000 per parcel. Some members challenged this increase, arguing the board’s action was invalid under California law because the required approval from a majority of a quorum of members had not been obtained.The Superior Court of Amador County held a bench trial and issued a statement of decision. The court found the assessment increase was not unlawfully levied, reasoning that the bylaw amendment eliminating the $200 limit was proper and that the limit was unreasonable and unenforceable. The court invoked public policy favoring the association’s ability to fulfill its maintenance obligations and denied the plaintiffs’ request for declaratory relief.Upon review, the Court of Appeal of the State of California, Third Appellate District, determined that the board’s assessment increase was void under the Davis-Stirling Common Interest Development Act. The appellate court found that the board neither complied with statutory reporting requirements nor obtained approval from a majority of a quorum of members as required by law. The court rejected the association’s arguments, including claims of emergency conditions and assertions that no remedy was available. The judgment of the trial court was reversed and the case remanded with instructions to issue a declaratory judgment stating that the July 2019 assessment increase is void and invalid under the Act. Plaintiffs were awarded costs on appeal. View "Ruffier v. Volcano Hills Road Maintenance Assn." on Justia Law

A homeowners association in Fremont County, Idaho sought to enforce an amendment to its covenants, conditions, and restrictions (CCRs) prohibiting short-term rentals (less than thirty days) in a subdivision. The amendment was adopted in 2016 by a majority vote of property owners; however, the owners of one particular property at that time, C&L Lee, L.C., expressly voted against the restriction and did not provide written consent. After the amendment, the property was transferred multiple times, with each new deed referencing the CCRs, but none of the subsequent owners ever gave express written consent to the short-term rental restriction. In 2022, the HOA discovered the property was being advertised as a short-term rental and brought suit against the current owners, seeking injunctive and declaratory relief.The District Court of the Seventh Judicial District reviewed cross-motions for summary judgment, focusing on the interpretation of Idaho Code section 55-3211. The district court found the statute unambiguously protected properties from newly added rental restrictions unless the property owner at the time of the restriction’s adoption expressly agreed in writing. Because no owner of the property, either at the time of the amendment or thereafter, had provided written consent, the court concluded the restriction did not encumber the property and could not be enforced against the current owners.On appeal, the Supreme Court of the State of Idaho affirmed the district court’s decision. The Supreme Court held that Idaho Code section 55-3211 prohibits a homeowners association from adding or enforcing rental restrictions unless the property owner at the time of the amendment consents in writing. The restriction did not bind the property or successors because consent was never given. Consequently, summary judgment for the homeowners was affirmed, and neither party was awarded attorney fees. Costs on appeal were awarded to the homeowners. View "North Henry's Lake v. Norton" on Justia Law

The case concerns a dispute between neighboring property owners in Fremont County, Idaho, regarding roadway access rights along Bootjack Drive and Whitetail Lane near Henry’s Lake. Edward and Barbara Stasiewicz, who own an 80-acre landlocked parcel, along with other plaintiffs, sought to establish express, implied, and prescriptive easements over land owned by Henry’s Lake Village, LLC (HLV) and other defendants. The controversy intensified after the Stasiewiczes’ predecessors obtained deeds that included easements, followed by a default judgment in a quiet title action initiated by HLV against the predecessors, which purported to extinguish any easement rights. Subsequently, HLV granted the Stasiewiczes restrictive access easements over Bootjack Drive and Whitetail Lane.The Seventh Judicial District Court of Fremont County initially granted HLV’s motion to dismiss the Stasiewiczes’ express and prescriptive easement claims as moot due to the granted easements, but allowed the implied easement claim to proceed, requesting briefing on res judicata. After supplemental briefing, the district court denied motions to strike evidence, found the Stasiewiczes’ claims precluded by res judicata due to the prior quiet title judgment, and dismissed all remaining claims as moot, concluding the Stasiewiczes had already received the relief they sought.The Supreme Court of the State of Idaho reviewed the appeal. It held that the district court erred by raising the affirmative defense of res judicata sua sponte, as such defenses must be raised by parties, not the court. The Supreme Court also found the district court incorrectly dismissed the Stasiewiczes’ claims as moot, especially regarding Bootjack Drive, since the restrictive terms of the granted easements did not fully resolve the controversy. The Supreme Court vacated the district court’s judgment, reversed the dismissal of the Stasiewiczes’ claims, and remanded the case for further proceedings. View "Stasiewicz v. South Henry's Lake" on Justia Law

The case concerns a property owner who challenged the assessed valuation of his residential property by the county assessor. After receiving a tax assessment notice valuing his home at $732,661, the property owner met with the assessor to contest the figure, citing his home’s 2013 purchase price as more accurate. The assessor, after review, reduced the assessment twice—first lowering the quality rating of the home and then making a minor adjustment for siding type—ultimately setting the value at $674,465. The property owner appealed the assessment, objecting to the timing of evidence disclosure by the assessor and arguing that the assessed value should reflect actual sales in the neighborhood or a realtor’s market evaluation instead of the mass appraisal system used.The Laramie County Board of Equalization held a hearing on the appeal, admitting both parties’ evidence, including the assessor’s exhibits, which were received by the property owner three days later than the statutory deadline but still twenty-seven days before the hearing. The Board found the assessor’s methods and use of the state-mandated Computer Assisted Mass Appraisal (CAMA) system proper, and concluded that the property owner failed to provide credible evidence that the valuation was incorrect or unlawful. The Board affirmed the assessment. The property owner appealed to the State Board of Equalization, which remanded briefly for procedural reasons, after which the Board reaffirmed its decision. The State Board and then the District Court of Laramie County both affirmed.The Supreme Court of Wyoming reviewed the case and held that the County Board did not abuse its discretion in admitting the assessor’s evidence, given the minimal delay and lack of prejudice. It also held that the property owner did not meet his burden to rebut the presumption of correctness in the assessor’s valuation, which was supported by substantial evidence and in accordance with law. The Supreme Court affirmed the lower courts’ decisions. View "Johnston v. Ernst" on Justia Law

Several trusts and entities purchased properties in Nevada that were subject to deeds of trust held by Fannie Mae or Freddie Mac. After unsuccessful attempts in state court to extinguish the deeds of trust and quiet title, each property remained encumbered. Between 2022 and 2024, foreclosure proceedings were initiated on these properties, with Fannie Mae and Freddie Mac acting through their conservator, the Federal Housing Finance Agency (FHFA). In response, the plaintiffs brought suit against the FHFA and its Director, seeking to prevent foreclosure and challenging the constitutionality of the FHFA’s funding mechanism under the Appropriations Clause and the nondelegation doctrine.The United States District Court for the District of Nevada reviewed the case. The district court denied the plaintiffs’ motions for preliminary relief, then dismissed their amended complaint with prejudice, finding that the FHFA’s funding structure was constitutional. The court determined that the Recovery Act, which created the FHFA and provides for its funding via regulatory assessments rather than Congressional appropriations, met constitutional standards by specifying both a source and purpose for the funds. The court also found that the Recovery Act’s limitation to “reasonable costs” provided an intelligible principle, satisfying the nondelegation doctrine. Leave to amend was denied as futile.The United States Court of Appeals for the Ninth Circuit affirmed the district court’s judgment. The appellate court held that the plaintiffs had Article III standing, but rejected their arguments on the merits. It concluded that the FHFA’s funding mechanism, as established by the Recovery Act, does not violate the Appropriations Clause because it identifies a source and purpose for expenditures, consistent with the Supreme Court’s decision in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Limited. It further held the mechanism does not violate the nondelegation doctrine, as the statute provides an intelligible principle. The judgment of dismissal was affirmed. View "DAISEY TRUST v. FEDERAL HOUSING FINANCE AGENCY" on Justia Law

A group of cities holding junior ground water rights in the Eastern Snake Plain Aquifer sought judicial review of a final order issued by the Director of the Idaho Department of Water Resources. This order updated the methodology used to assess whether pumping by junior ground water users caused material injury to senior surface water rights holders who divert water from the Snake River. The Director’s Fifth Amended Final Order revised technical aspects of the model and data, and after a hearing on objections by the cities, the Director affirmed the methodology with modifications and issued a Sixth Methodology Order, which expressly superseded all prior methodology orders.The cities filed a petition for judicial review in the Snake River Basin Adjudication district court, challenging the Director’s Post-Hearing Order regarding the Fifth Methodology Order. The district court affirmed the Director’s findings and conclusions, upholding the methodology and the application of the clear and convincing evidence standard, and found that the Director did not prejudice the cities’ substantial rights. The district court’s judgment specifically affirmed the Post-Hearing Order but did not address the operative Sixth Methodology Order.On appeal, the Supreme Court of the State of Idaho reviewed whether the cities had properly invoked its jurisdiction. The Court held that the cities failed to challenge the currently operative Sixth Methodology Order in district court, and therefore, under Idaho law, the Court lacked jurisdiction to consider the appeal or award the requested relief. As a result, the appeal was dismissed for lack of jurisdiction. The Court awarded attorney fees and costs to the Idaho Department of Water Resources but denied attorney fees to the intervening Surface Water Coalition, granting them costs only. View "City of Idaho Falls v. IDWR" on Justia Law