Justia Real Estate & Property Law Opinion Summaries

Endeavor Operating Company, LLC (Endeavor) is a “holding company” that owns “various subsidiaries in the entertainment, sports, and fashion business sectors.” Endeavor sued the insurers for (1) declaratory relief and (2) breach of contract related to COVID-19 closures. The insurers demurred to the complaint. The trial court issued a ruling (1) sustaining the demurrer without leave to amend and (2) denying Endeavor’s motion for a new trial. The court modified its initial ruling to find that the “actual” or “threatened presence” of COVID-19 or the SARS-CoV-2 virus “does not constitute a physical loss or damage required to trigger coverage for property insurance coverage” but reaffirmed its initial ruling that the contamination/pollution exclusion applied, which in the court’s view obviated its need to address the argument Endeavor raised for the first time in its new trial motion. Endeavor appealed.   The Second Appellate District affirmed. The court concluded that the insurance policy unambiguously requires “direct physical loss or damage to property” before Endeavor may recover under the business interruption clauses. The court held that Endeavor failed as a matter of law to plead “direct physical loss or damage to property.” The court explained that California courts are in accord that the phrase “direct physical loss or damage to property” means a “‘distinct, demonstrable, physical alteration’” of the insured property. This is the default definition to be applied where a policy does not provide a different definition of “direct physical loss or damage.” The policy here provides no different definition. View "Endeavor Operating Co., LLC v. HDI Global Ins. Co." on Justia Law

The Supreme Court reversed the determination of the circuit court that the Day County Board of Adjustment could reconsider and modify a previously-granted variance, holding that the Board of Adjustment no longer had the authority to reconsider the variance when it did so.Appellants were informed that their property violated the Day County Planning and Zoning Ordinance because they altered the grading and added rocks. Appellant subsequently sought a variance from the ordinance allowing the existing grading and rocks to remain. The Board of Adjustment unanimously approved the application. The Board subsequently reconsidered the variance and modified it. Appellants later applied for a permit to build a house on their property. The Board of Adjustment denied the application because Appellants had not complied with the modified variance. The circuit court denied Appellants' request for relief and dismissed their complaint. The Supreme Court reversed, holding that because the Board of Adjustment did not reconsider the variance before the appeal time expired, Appellants were entitled to a declaration of their rights under the variance the Board granted. View "Gonsor v. Day County Planning Commission" on Justia Law

In 2005, Joliet filed a complaint seeking to acquire, by eminent domain, a low-income apartment complex that was owned and managed by the plaintiffs. Following almost 12 years of litigation, Joliet acquired fee simple title to the property in 2017. During the litigation, the apartment complex remained in operation; the plaintiffs paid the property taxes without filing any protest. In 2018, the plaintiffs filed a tax objection complaint, seeking the refund of over $6 million in property taxes paid between the date Joliet filed its condemnation complaint and the date it acquired the property. The plaintiffs maintained that “once title to property acquired by condemnation vests with the condemning authority, it vests retroactively to the date of filing the condemnation petition,” so the landowner is entitled to a refund for any taxes paid after the date of filing. The trial court dismissed the complaint. The appellate court held that the plaintiffs were entitled to a refund.The Illinois Supreme Court reversed, overruling the precedent on which the appellate court relied. The legal premises on which that case rested—that a taking occurs at the time a condemnation action is filed and that the valuation of the property is fixed at that point—no longer exists. The court rejected an argument that the act of filing a condemnation complaint burdened the property and it would be unfair to require the plaintiffs to pay the property taxes that accrued during the condemnation proceeding. View "MB Financial Bank, N.A. v. Brophy" on Justia Law

UCSF's 107-acre Parnassus Heights campus currently accommodates two hospitals, various medical clinics, four professional schools, a graduate program, and space for research, student housing, parking, and other support uses. In 2014, UCSF prepared a long-range development plan for its multiple sites around San Francisco, to accommodate most of UCSF’s growth at the Mission Bay campus. There were concerns that the Parnassus campus was overwhelming its neighborhood. In 2020, UCSF undertook a new plan for the Parnassus campus with multiple new buildings and infrastructure resulting in a 50 percent net increase in building space over 30 years.An environmental impact report (EIR) was prepared for the Plan's initial phase (California Environmental Quality Act, Pub. Resources Code 21000, identifying as significant, unavoidable adverse impacts: wind hazards, increased air pollutants, the demolition of historically significant structures, and increased ambient noise levels during construction.The court of appeal affirmed the rejection of challenges to the EIR. The EIR considers a reasonable range of alternatives and need not consider in detail an alternative that placed some anticipated development off campus. The EIR improperly declines to analyze the impact on public transit, but the error is not prejudicial. The aesthetic effects of an “employment center project on an infill site within a transit priority area” are deemed not significant. The EIR is not required to adopt a mitigation measure preserving certain historically significant buildings and its mitigation measure for wind impacts is adequate. View "Yerba Buena Neighborhood Consortium, LLC v. Regents of the University of California" on Justia Law

The Supreme Court affirmed the judgment of the district court granting a Partnership's motion for summary judgment and concluding that Tract 3, one of three individual tracts that were carved out from Owners' land for separate ownership by each of the Partnership's owners, was burdened by a thirty-foot easement and could not benefit from it, holding that there was no error.In 1990, Owners conveyed the property at issue to the Partnership and conveyed Tract 3 to R.A. Roehder. The warranty deed conveying the property provided that the property was given together with thirty-foot-wide easements for ingress and egress. Roehder later sold his interest in the Partnership. After Roehder's death, Tract 3 was acquired by Zinvest, LLC by tax deed, and Zinvest conveyed the property to Lee Lou. The Partnership later filed a complaint to quiet title with a declaratory judgment that Lee Lou owned no interest in the easement and only the partnership had an interest in the easement. The court granted summary judgment in favor of the Partnership. The Supreme Court affirmed, holding that the district court did not err in determining that Tract 3 did not benefit from the thirty-foot easement and that tracts 1 and 2 did benefit from the easement. View "Duke Trust v. Lee Lou, LLC" on Justia Law

The Supreme Court affirmed the order of the district court granting summary judgment in favor of the City of Whitefish and affirming the Whitefish City Council's decisions to deny a conditional use permit (CUP) and grant Resolution 21-43, which denied the permit, holding that there was no error in the proceedings below.Whitefish 57 Commercial, LLC and Rimrock Companies, LLC (collectively, Appellants) applied for a CUP to develop a hotel on a lot of their subdivision. After a public hearing on the development project the Council adopted Resolution 21-43 that denied the permit. Appellants appealed, claiming that the Council abused its discretion in denying their CUP. The district court granted summary judgment against Appellants. View "Whitefish 57 Commercial, LLC v. City of Whitefish" on Justia Law

Plaintiff Oil Valley Petroleum, LLC and defendant Clay Moore (Moore) sought equitable relief to adjudicate title based upon two oil and gas leases. Plaintiff requested the trial court to quiet title, cancel an oil and gas lease, and declare its top-lease to be in force and effect. Both parties moved for summary judgment. The district court granted defendant's motion and denied plaintiff's motion. Plaintiff appealed and the Court of Civil Appeals reversed the district court and directed judgment for plaintiff. Defendant sought certiorari to review the Court of Civil Appeals' opinion. The Oklahoma Supreme Court held: (1) exhibits presented during summary judgment proceedings were insufficient to show a material fact that a well was commercially profitable for the purpose of the habendum clause of an oil and gas lease; (2) an overriding royalty interest may be extinguished by an extinguishment of the working interest from which it was carved by a lessee's surrender of the lease in substantial compliance with the lease, unless the surrender is the result of fraud or breach of a fiduciary relationship; and (3) prevailing party status for the purpose of an attorney fee is determined by the trial court when not determined on appeal. The opinion of the Court of Civil Appeals was vacated and the Court reversed the order granting Moore a partial summary judgment and remanded for additional proceedings. View "Oil Valley Petroleum v. Moore" on Justia Law

Wise Business Forms, Inc. (“Wise”) was the nation’s fourth largest printer of business forms, and was headquartered in Forsyth County, Georgia. A 36-inch metal pipe (“Subject Pipe”) ran underneath Wise’s property and had been in place since 1985. Approximately twenty-five feet of the drainage pipe extended into a two-acre tract of land west of Wise’s property (“Corner Tract”). The Corner Tract was undeveloped and forms a natural detention basin into which a large vertical concrete drainage structure with a large stormwater outlet pipe (“Feeder Structure”) was constructed. Wise asserted in its complaint that water from the Feeder Structure on the Corner Tract was designed to flow through the Subject Pipe underneath Wise’s property. The McFarland Parkway Widening Project extended McFarland Road from two lanes to four lanes and was completed in 2000. Wise alleged in its complaint that this project resulted in a substantial increase of the surface and stormwater runoff flowing underneath its property. In 2020, Wise filed a complaint against Forsyth County and the Georgia Department of Transportation (the “DOT”) raising claims for per se taking of Wise’s property, inverse condemnation by permanent nuisance, attorney fees. Wise amended its complaint to add a claim for inverse condemnation by abatable nuisance. The Georgia Supreme Court granted certiorari in this case to clarify the standards for determining when a claim for inverse condemnation by permanent nuisance accrues for purposes of applying the four-year statute of limitation set forth in OCGA § 9-3-30 (a). The Court concluded that, although the Court of Appeals articulated one of the correct standards to apply in determining when the applicable statute of limitation begins to run on a permanent nuisance claim, the Court of Appeals failed to construe the allegations of the complaint in the light most favorable to the plaintiff as the non-moving party; erred in concluding there was only one harm in this case that was “immediately observable” to the plaintiff when the nuisance at issue was completed; and erred in concluding that the statute of limitation had run on the plaintiff’s claim as a matter of law. View "Wise Business Forms, Inc. v. Forsyth County, et al." on Justia Law

This case concerns the property rights of two uniquely Alaskan entities. On one side is Flying Crown Subdivision Addition No. 1 and No. 2 Property Owners Association (“Flying Crown”), a homeowners’ association for the eponymous subdivision in Anchorage, Alaska. Flying Crown is one of many subdivisions nestled in South Anchorage. The homes in Flying Crown back up to a small airstrip. Some of Flying Crown’s homeowners selected the subdivision for that very reason. On the other side is the Alaska Railroad Corporation (“ARRC”), a state-owned corporation that owns and operates Alaska’s railroad system. ARRC filed this action seeking to quiet title in the right-of-way and to clarify that ARRC’s interest in the right-of-way includes an exclusive-use easement. The district court properly granted summary judgment to ARRC.   The Ninth Circuit affirmed. The panel held that the Alaska Railroad Act of 1914 authorized the creation of the Alaska Railroad, a federal railroad, and reserved railroad rights-of-way to the United States. The Alaska Railroad Transfer Act of 1982 authorized the federal government to transfer nearly all of the Alaska Railroad property rights to ARRC. The panel held that the 1914 Act did not reveal the scope of the right-of-way retained by the government. The panel concluded that, in the Sperstad Patent, the federal government intended to reserve an exclusive-use easement under the 1914 Act. The panel further held that the federal government transferred the exclusive-use easement it retained under the 1914 Act. View "ALASKA RAILROAD CORPORATION V. FLYING CROWN SUBDIVISION ADDITION NO. 1 & NO. 2, ET AL" on Justia Law

Between 2015 and 2019, BitterSweet Ranch and its managers (“BitterSweet”) leased three parcels of farmland from Frank Sullivan and two of his business entities, The Green Desert, LLC, and The Sullivan Limited Partnership (collectively, “Sullivan”). The parties signed three identical five-year leases (“the Leases”) involving three separate parcels of real property, each owned by one of the three Sullivan parties. The Leases specified that Sullivan was to be responsible for payment of the property taxes, but that those parties were to be reimbursed by BitterSweet, and that BitterSweet was to be responsible for bi-annual rent payments, utilities, and water assessments. For a variety of reasons, the parties purportedly orally agreed to modify the Leases to offset amounts owed to each other throughout the terms of the Leases. Shortly before the Leases were set to expire at the end of their five-year terms, Sullivan claimed that BitterSweet was in breach of the Leases for its alleged failure to make timely rent payments, to pay all property taxes, and to pay the water assessments pursuant to the terms of the Leases. Sullivan then filed three lawsuits (one for each of the Leases and in the names of each of the three parties) in district court. The district court ordered the cases consolidated and then granted summary judgment in favor of BitterSweet, concluding that a genuine issue of material fact had not been created as to whether BitterSweet had breached the Leases. Sullivan appealed the adverse order. Finding no reversible error, the Idaho Supreme Court affirmed. View "Sullivan v. BitterSweet Ranch, LLC" on Justia Law