Justia Real Estate & Property Law Opinion Summaries

The lessee of commercially used Sixteenth Section Land sought to prevent the leasing school board from adjusting the annual rent outside the time constraints of the lease. While the terms of the lease appeared to contain a clear time restriction within which the Board did not act, the Mississippi Supreme Court determined the restriction could not be enforced. The restriction ran contrary to the statutory requirement that rent “shall be adjusted not less than once every ten (10) years . . . .” Miss. Code Ann. sec. 29-3-69 (Rev. 2010). Further, a school board’s duty as trustee to assure adequate consideration is received based on current fair market value of the Sixteenth Section Land cannot be waived, even by mutual agreement in a contract. For those reasons, the Supreme Court concluded the chancellor did not err by denying the lessee’s motion for a declaratory judgment that the school board was precluded from adjusting the rent based on the time restrictions in the lease. View "Oak Grove Marketplace, LLC v. Lamar County School District" on Justia Law

In Friends of Columbia Gorge v. Energy Fac. Siting Coun., 365 Or 371, 446 P3d 53 (2019), the Oregon Supreme Court held that the Energy Facility Siting Council had failed to substantially comply with a procedural requirement when it amended rules governing how it processes requests for amendment (RFAs) to site certificates that the council issued. The Court therefore held that the rules were invalid. In response to that decision, the council adopted temporary rules governing the RFA process. Petitioners contended that those temporary rules were also invalid. According to petitioners, the rules were invalid because the council failed to prepare a statement of its findings justifying the use of temporary rules. Petitioners also maintained that the council’s rules exceed the 180-day limit on temporary rules or otherwise improperly operated retroactively. After review, the Supreme Court disagreed with petitioners’ arguments and concluded the temporary rules were valid. View "Friends of Columbia Gorge v. Energy Fac. Siting Coun." on Justia Law

The Supreme Court affirmed in part and reversed and remanded in part the circuit court's order awarding damages under the Arkansas Civil Rights Act to Alexander Apartments, LLC and certain tenants after determining that the City of Little Rock violated Appellees' due process rights under the Arkansas Constitution, holding that the circuit court correctly found that the City violated Appellees' due process rights but incorrectly awarded damages. On appeal, the City argued that it did not violate Alexander Apartments' or the tenants' due process rights under the Arkansas Constitution. The Supreme Court disagreed, holding (1) the circuit court was correct as a matter of law that the City violated Alexander Apartments' and the tenants' due process rights under the Arkansas Constitution; (2) substantial evidence supported the circuit court's award of damages to Alexander Apartments in the amount of $432,744.33; and (3) the circuit court erroneously considered events and circumstances that were unrelated to the City's due process violations in determining the tenants' damages awards. View "City of Little Rock v. Alexander Apartments, LLC" on Justia Law

The Supreme Court granted New Wen, Inc.'s request for a writ of mandamus to compel the Ohio Department of Transportation and its director (collectively, ODOT) to commence appropriation proceedings for an alleged taking of its real property, holding that New Wen showed, by clear and convincing evidence, that ODOT must pay compensation for the taking of the property at issue in this case. At issue was ODOT's closure of a certain intersection, which deprived New Wen of access to a state route. The Supreme Court held that an easement agreement expressly preserved the right of access of New Wen's predecessor-in-title right to the state route and that ODOT's closure of the intersection deprived New Wen of its right of access. Therefore, the Court granted a writ of mandamus to compel ODOT to commence appropriation proceedings and pay compensation for the taking of the property at issue in this case. View "State ex rel. New Wen, Inc. v. Marchbanks" on Justia Law

After John Worthen amassed over eighteen million dollars in unpaid tax liabilities, the federal government placed liens on properties it claimed belonged to his alter egos or nominees. Following a court- ordered sale of the properties, Worthen sought to exercise a statutory right to redeem under Utah state law. The district court concluded there were no redemption rights following sales under 26 U.S.C. 7403. The Tenth Circuit concurred, finding neither section 7403 nor 28 U.S.C. 2001, which governed the sale of realty under court order, explicitly provided for redemption rights. Moreover, federal tax proceedings provided sufficient protection for taxpayers and third parties. View "Arlin Geophysical Company v. United States" on Justia Law

In this inverse condemnation action the Supreme Court affirmed the decision of the district court entering judgment of a matter of law that Appellant failed to establish a taking and failed to provide proof of damages, holding that the trial court did not err in granting a directed verdict based on insufficient evidence of the value of Appellant's property. In her action, Appellant alleged that a road expansion project took a portion of her real property in Johnson County. The trial court entered a judgment as a matter of law, concluding that Appellant did not meet her burden to show that a taking occurred and that the evidence would be inadequate to prove any measure of damages for a partial taking. The Supreme Court affirmed, holding that the trial court properly entered a judgment as a matter of law that Appellant failed to establish a taking and failed to provide proof of damages. View "Byrnes v. Johnson County Commissioners" on Justia Law

The Supreme Court reversed in part the judgment of the Appellate Court reversing the judgment of the trial court ordering strict foreclosure, holding that the Appellate Court erred in concluding that an initial entry into a record of debt was not admissible under the business records exception to the hearsay rule when that entry was provided by a third party in the course of the sale of the debt. Specifically, the Court held that the Appellate Court (1) did not err in concluding that Jenzack Partners, LLC (Jenzack) had standing to foreclose a mortgage executed in support of a personal guarantee of a promissory note given by a third party even though the guarantee was not explicitly assigned to the foreclosing party; and (2) erred in determining that the business records exception did not apply to Jenzack's calculation of the debt owed on the promissory note where the initial entry into the record of the debt was provided by a third party. View "Jenzack Partners, LLC v. Stoneridge Associates, LLC" on Justia Law

On April 1, 2016, Lasonya Lindsey agreed to purchase real property located in Selma from Doris Wallace. Attorney Charles Sims III was retained by one or both of the transacting parties in connection with the sale. On April 26, Sims incorrectly represented to Lindsey that the property was unencumbered by any liens. The transaction closed two days later. In November 2017, Lindsey received written notice that the property had been sold two days earlier at a foreclosure sale after Wallace defaulted on a mortgage on the property. Lindsey and her family were ordered to immediately vacate the property, on which they had already spent $20,000 improving. In early 2018, Lindsey brought a single-count complaint against Sims under the Alabama Legal Services Liability Act, alleging that Sims breached his duty of care by misrepresenting the property. Lindsey filed a first amended complaint on January 31 for the sole purpose of correcting the spelling of Sims's name. Neither the original complaint nor the first amended complaint contained a jury demand. Sims answered the first amended complaint on March 8, and on April 25 he submitted a response to Lindsey's interrogatories in which he stated that he had never represented Lindsey, that his only involvement in the transaction had been to prepare a warranty deed at Wallace's direction, and that he did not perform any title work as part of his representation of Wallace. Lindsay amended the complaint a second time, which included, for the first time, a jury demand on all counts. Relevant here, Sims moved to strike the jury demand, asserting it was made more than 30 days after service of the last pleading on the triable issue: Sims' March 8, 2018, answer. The trial court granted this motion, and Lindsay petitioned the Alabama Supreme Court for mandamus relief, directing the trial court to vacate its order. Because any error could be adequately remedied on appeal, the Supreme Court denied Lindsey's petition for a writ of mandamus to the extent it asks the Court to direct the trial court to vacate its order dismissing counts III and IV of the second amended complaint. The Court granted the petition for a writ of mandamus, however, to the extent it asks the Court to direct the trial court to vacate its order striking the jury demand in the second amended complaint with respect to new issues. The second amended complaint included two new issues –- the conflict-of- interest allegation against Sims in count I and the fraud claim against Wallace in count II –- and Lindsey made a timely demand for a trial by jury on both of those issues. View "Ex parte Lasonya Lindsey" on Justia Law

Plaintiff Ventas Realty Limited Partnership (Ventas), appealed a superior court order denying its request for an abatement of the real estate taxes it paid defendant City of Dover (City), for the 2014 tax year. The subject real estate consists of a 5.15-acre site containing a skilled nursing facility serving both short-term and long-term patients, two garages, and a parking lot. At issue was the City’s April 1, 2014 assessment of the real estate at a value of $4,308,500. Ventas alleged that it timely applied to the City for an abatement of its 2014 taxes. The City presumably denied or failed to act upon the request, and Ventas, thereafter, petitioned the superior court for an abatement pursuant to RSA 76:17 (Supp. 2018), alleging that the City had unlawfully taxed the property in excess of its fair market value. Expert witnesses for both sides opined the property’s highest and best use was as a skilled nursing facility. The experts also agreed that the most reliable method for determining the property’s fair market value was the income capitalization method, although the City’s expert also completed analyses under the sales comparison and cost approaches. Both experts examined the same comparable properties and they also used similar definitions of “fair market value.” The main difference between the approaches of the two experts is that the City's expert used both market projections and the property’s actual income and expenses from 2012, 2013, and 2014 to forecast the property’s future net income, while Ventas' expert did not. Ventas' expert used the property’s actual income and expenses for the 11 months before the April 1, 2014 valuation date, without any market-based adjustments. Despite their different approaches, the experts gave similar estimates of the property’s projected gross income for tax year 2014. The experts differed greatly in their estimates of the property’s projected gross operating expenses for tax year 2014. All of Ventas’ arguments faulted the trial court for finding the City's expert's valuations more credible than its own expert's valuations. The New Hampshire found the trial court made numerous, specific findings which were supported by the record as to why it rejected Ventas' expert's appraisal. Accordingly, the Supreme Court upheld the trial court’s determination that Ventas' expert's appraisal failed to meet Ventas’ burden of proof. View "Ventas Realty Limited Partnership v. City of Dover" on Justia Law

In this foreclosure case, the Supreme Court held that the circuit court's award of a forfeited down payment as damages to the Association of the Owners of the Kumulani of the Uplands at Mauna Kea, creditors in the judicial foreclosure action, was an abuse of discretion. In response to a pair of post-judgment motions, the circuit court entered two orders. The first order found OneWest Bank, F.S.B., the foreclosing mortgagee and winning bidder at the foreclosure auction, liable for damages in an amount equal to its down payment for failure to close the foreclosure sale. The second order awarded the down payment as expectation damages to the association, a junior lienholder. On appeal, OneWest challenged the circuit court's jurisdiction to assess damages against OneWest and award them to the association. The Supreme Court held that because, pursuant to Haw. Rev. Stat. 667-3, creditors in a judicial foreclosure action are entitled to payment according to the priority of their liens, the circuit court erred by awarding damages to the Association rather than by applying the down payment amount to reduce the debt owed to OneWest. View "OneWest Bank, F.S.B. v. Ass'n of the Owners of the Kumulani at the Uplands at Mauna Kea" on Justia Law