Justia Real Estate & Property Law Opinion Summaries

This appeal arose out of an action commenced by the New York State Attorney General against defendants, seeking injunctive and monetary relief as well as civil penalties for violations of New York's Executive Law and Consumer Protection Act, Executive Law 63(12) and General Business Law 349, as well as the common law. The primary issue on appeal was whether federal law preempted these claims alleging fraud and violations of real estate appraisal independence rules. The court held that the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) governed the regulation of appraisal management companies and explicitly envisioned a cooperative effort between federal and state authorities to ensure that real estate appraisal reports comport with the Uniform Standards of Professional Appraisal Practice (USPAP). The court perceived no basis to conclude that the Home Owners' Loan Act (HOLA) itself or federal regulations promulgated under HOLA preempted the Attorney General from asserting both common law and statutory state law claims against defendants pursuant to its authority under Executive Law 63(12)and General Business Law 349. Thus, defendants' motion to dismiss on the grounds of federal preemption was properly denied. The court also agreed with the Appellate Division that the Attorney General had adequately pleaded a cause of action under General Business Law 349 and that the statute provided him with standing. Accordingly, the order of the Appellate Division was affirmed.

In a hierarchical church property dispute, the court granted certiorari in this case to consider whether the Court of Appeals correctly applied the "neutral principles of law" doctrine set forth in Jones v. Wolf. The court held that neutral principles of law demonstrated that an implied trust in favor of the PCUSA existed on the local church's property to which TPC, Inc. held legal title. Accordingly, the Court of Appeals erred in concluding to the contrary and the judgment was reversed.

This case involved a dispute over control of property belonging to the oldest church in Georgia, Christ Church in Savannah. At issue was whether the trial court and the Court of Appeals erred in applying the neutral principles doctrine, particularly with respect to OCGA 14-5-46 and 14-5-47. The court held that although those courts could have erred to some extent in their reliance on OCGA 14-5-46 and 14-5-47, they correctly concluded that neutral principles of law showed that the property of Christ Church at issue was held in trust for the benefit of the Episcopal Church.

Petitioner, a constructor, was sued by several people living in new homes built by Petitioner (Residents). Residents claimed they were injured by radon gas leaking into their homes because of improper construction by Petitioner. Petitioner argued that the agreement to purchase the new homes required Residents to arbitrate their claims, whether they signed the agreement or not. The circuit court found the arbitration provision ambiguous and unconscionable and refused to compel Residents into arbitration. Petitioner subsequently sought a writ of prohibition to compel Residents to arbitrate their claims. The Supreme Court denied the writ, holding that the circuit court was within its authority to refuse to enforce the arbitration clause against Residents because the arbitration provision was ambiguous, unconscionable, and unenforceable.

This case involved a dispute regarding developed property. Developer filed a complaint alleging that the project's general contractor (Contractor) and an engineering firm (Firm) had negligently provided recommendations with respect to site preparation. The circuit court granted partial summary judgment in favor Firm on Contractor's cross-claims against Firm that sought recovery of remediation costs incurred by Contractor, concluding (1) some of Contractor's cross-claims were time-barred by the applicable statute of limitations, and (2) W. Va. Code 55-2-21 did not apply to toll any limitations periods because Contractor's claims were independent causes of action as opposed to cross-claims. The Supreme Court reversed, holding (1) the circuit court prematurely found that section 55-2-21 did not apply because it failed to analyze whether the claims arose from the same transaction or occurrence and, thus, constituted cross-claims or independent causes of action; and (2) genuine issues of material fact existed so as to preclude summary judgment if Contractor's claim was an independent cause of action. Remanded.

The court granted certiorari to examine whether the "anti-indemnity" statute found at OCGA 13-8-2(b) applied to invalidate an indemnification clause within an assignment and assumption agreement transferring responsibility for the management and operation of a newly developed subdivision to its homeowner's association. The court held that OCGA 13-8-2(b) did apply to the assignment and assumption agreement. Therefore, the court held that the indemnification provision was invalid and given that the third party's claims were premised solely on this invalid provision, the Court of Appeals correctly held that summary judgment should have been granted to appellee.

Defendant National Security Fire & Casualty Company appealed a circuit court order that certified a class for a class action lawsuit. Plaintiff Maurice DeWitt's mobile home was damaged by Hurricane Katrina, and at the time of his loss, Plaintiff was insured by National Security. In 2007, Plaintiff filed suit in circuit court against National Security and other insurance companies alleging that the Defendants breached his insurance policy when they did not include a 20% "general contractor overhead and profit" (GCOP) amount in its loss payment. Specifically, Plaintiff alleged the insurance companies did not take into account Plaintiff's loss and the need for additional general contractor services in rebuilding his home. Plaintiff sought to represent similarly situated policyholders whose claims were allegedly miscalculated in the same fashion. Upon review, the Supreme Court concluded that Plaintiff did not satisfy his burden of establishing the predominance and superiority requirements to certify his class action. Accordingly, the Court held that the trial court exceeded its discretion in cerfifying the class.

The South Carolina Coastal Conservation League (League) and the South Carolina Department of Health and Environmental Control (DHEC) appealed an administrative law judge's (ALJ) order that allowed Respondent Kiawah Development Partners to construct erosion control devices in a critical zone on Captain Sam's Spit (Spit). Respondent owend a peninsula (Spit) which lies primarily south of Kiawah Island, surrounded on three sides by the Atlantic Ocean, Kiawah River and Captain Sam's Inlet which separates the Spit from Seabrook Island. For the past sixty years, the Spit has been "growing," accreting sand on the ocean side at a greater rate than it has been losing ground to erosion on the river side. Respondent leased oceanfront property near the neck to the Charleston County Parks and Recreation Commission, which operates Beachwalker Park there. Respondent sought a permit from DHEC to erect a 2,783 foot bulkhead/revetment combination along the Kiawah River, with the structure to begin at the neck, that is, at Beachwalker Park. DHEC authorized construction of the proposed erosion control device for 270 feet, beginning at Beachwalker Park, and denied the remaining portion of the request. Both the League and Respondent requested a contested case hearing before the ALJ, the League to protest the portion of the permit request which was granted, and Respondent to challenge the portion denied. The Appellants contended the ALJ failed to give the deference due DHEC's interpretation of the statutes and regulations, and further that he exceeded his authority in rewriting the permit, resulting in one with terms neither approved by DHEC nor sought by Respondent. Upon review of the ALJ's ruling and the applicable legal standards, the Supreme Court reversed and remanded, finding the ALJ's decision was "affected by numerous errors of law … beginning with the ALJ's misunderstanding of the applicable statutes, regulations, and public policies, and concluding with his erroneous effort to craft a new permit, one which has never been sought by respondent, nor reviewed by OCRM, and which he, in any case, lack[ed] the authority to issue."

Purchasers sued Developers and Brokers, alleging that at the time of their purchases in a 26-story condominium, Developers had already undertaken plans to develop a 46-story building directly across the street. Developers advertised "spectacular city views" from the 26-story condominium and Brokers advised that any future developments to the south of the building would be low to mid-rise office buildings. Purchasers alleged that they paid substantial premiums for their views of the city which was now blocked by the 46-story building. At issue was whether the Court of Appeals erred when it reversed the trial court's grant of judgment on the pleadings on Purchasers' claims for fraud, negligent misrepresentation, negligent supervision and violation of the Georgia's fair business practices statute. The court held that the trial court was correct in finding that Purchasers did not properly elect rescission as a remedy, and the Court of Appeals erred in reversing the decision; the Court of Appeals erred in holding that Purchasers were not bound by the agreements they signed; because there can be no justifiable reliance where Purchasers were bound by their agreements, the Court of Appeals erred in holding that Purchasers' fraud-based claims could proceed; and the trial court correctly found that Purchasers did not sufficiently plead a cause of action against Developers for negligent supervision and the Court of Appeals erred when it reversed the trial court's decision on that count.

These appeals arose from annexations by the City of parcels of unincorporated real property in Fayette County. At issue was whether appellee, the City resident seeking to enjoin the City from providing services to the area annexed in 2007, had standing as a citizen-taxpayer to do so; whether the appeal was moot; and whether a subsequent annexation by the City cured the flaw the Court of Appeals found in the first annexation. The court concluded that the appeal was moot when it was docketed in the Court of Appeals, and the Court of Appeals should have dismissed it as such. In light of this decision, there was no need to address the issue of appellee's standing as a citizen-taxpayer. Accordingly, the court reversed and remanded.