Justia Real Estate & Property Law Opinion Summaries

Articles Posted in December, 2011
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This case involved a challenge to the New Castle County Council's approval of the record plan for a housing development. The development was the joint effort of two record owners of individual parcels: the limited liability companies, Robinson Investments, LLC, and Robinson Investments Two, LLC. Plaintiffs, however, did not name Robinson Investments, LLC, as a party, and defendants moved to dismiss because of plaintiffs' failure to join an indispensable party. Because of the time limitations embodied in 10 Del. C. 8126, joinder of Robinson Investments, LLC, was not precluded. Therefore, if Robinson Investments, LLC, was an indispensable party, the action would be dismissed with prejudice. Consequently, the court found that Robinson Investments, LLC, was an indispensable party to the action and granted defendants' motion to dismiss.

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Pursuant to its power of eminent domain, the Wisconsin DOT acquired the property of 260 North 12th Street, LLC and Basil Ryan (collectively, Ryan). A jury awarded Ryan $2,001,725 as just compensation. Over Ryan's objection, the jury was presented evidence concerning the environmental contamination of Ryan's property and the cost to remediate it. The court of appeals affirmed. The Supreme Court affirmed, holding (1) evidence of environmental contamination and of remediation costs are admissible in condemnation proceedings subject to the circuit court's discretion; (2) the circuit court appropriately exercised its discretion when it admitted at trial testimony by the DOT's appraiser over Ryan's objection that the testimony was speculative; (3) the circuit court did not err when it excluded Ryan's expert witness as a result of Ryan's failure to timely disclose the witnesses in accordance with the court's scheduling order; and (4) the circuit court appropriately exercised its discretion when it rejected Ryan's proposed jury instructions in favor of the standard jury instruction on fair market value in the case of a total taking.

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This case involved a dispute between the Mattesons and the Batchelders over fee ownership of less than one acre of land on a stream and the location of a deeded right-of-way on property owned by the Mattesons. The superior court (1) concluded that the Mattesons owned the disputed parcel of land; and (2) reformed the deed to locate the easement along a field road that crossed that Mattesons' property, concluding that the deed description of the right-of-way was ambiguous. The Supreme Court affirmed in part and vacated in part, holding (1) the superior court did not err in finding that the Mattesons obtained the property in dispute, which was included in the deed's property description; and (2) the court erred in reforming the deed to reflect a new location of the easement along the field road where there was no mutual mistake of fact that anything other than the shoreline was the boundary, as described in the deed. Remanded.

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After the fiscal court voted to discontinue maintenance on a county road, Appellant, who owned property and lived on the road, erected a locked gate blocking the road and provided a key to each property owner on the road. Appellees, a non-profit association known as Preserve Rural Roads of Madison County, filed suit against Appellant to force him to remove the gates. The circuit court granted Appellees' motion for summary judgment, finding that Appellees had standing and that Appellant was without legal right or ownership to prohibit others from using the road. The court of appeals affirmed. The Supreme Court affirmed, holding (1) Rural Roads had associational standing in this matter; (2) the discontinuance of maintenance on the county road did not affect any public easement rights; and (3) the lower courts' decisions in this case, holding that the county road is a public road and that Appellant could not block the road with gates, did not constitute an unlawful taking of Appellant's land.

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Respondent and Cross-Appellant Easterday Ranches, Inc. sought to operate a large feedlot in Franklin County. At the suggestion of the Department of Ecology (Department), Easterday acquired water rights from a neighboring farm. Appellants Scott Collin, Five Corners Family Farmers, the Center for Environmental Law and Policy (CELP), and the Sierra Club filed a declaratory judgment action against the State of Washington, the Department, and Easterday seeking a declaration that the stockwatering exemption from the permit requirement in RCW 90.44.050 is limited to uses of less than 5,000 gallons per day. Appellants further sought an injunction ordering Easterday to cease groundwater use without a permit. Upon review, the Supreme Court concluded that, under the plain language of the statute, withdrawals of groundwater for stock-watering purposes are not limited to any particular quantity by RCW 90.44.050. Accordingly, the Court affirmed the superior court's grant of summary judgment to the respondents.

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Plaintiffs paid off their home mortgage early and were charged a $30 "payoff statement fee" and a $14 "recording fee" in connection with the prepayment. They challenged the fees as violations of the mortgage contract, of state laws, and of the federal Real Estate Settlement Procedures Act, 12 U.S.C. 2601. The district court dismissed the suit as preempted by the federal Home Owners’ Loan Act, 12 U.S.C. 1461, and for failure to state a claim under RESPA. The Sixth Circuit held that the other claims were properly dismissed, but remanded a breach of contract claim. A Michigan Usury Act claim was preempted by HOLA; plaintiffs failed to state a claim under the deed recording statute, the state consumer protection law, or RESPA, which does not apply to charges imposed after the settlement. The court rejected a claim by the FDIC, appointed as receiver for the defendant-lender, that the court had been deprived of jurisdiction by the Financial Institution Reform, Recovery, and Enforcement Act, 12 U.S.C. 1281(d).

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The Fronks (Fronks) purchased two pieces of property from the Collinses (Collins), and the parties entered into an oral agreement whereby Collins would acquire horses and Collins would be entitled to keep the first foal from each mare as payment for their services. Fronks later transferred $215,000 to Collins for the acquisition of the horses. Fronks later deeded the properties back to Collins with the understanding that Collins would reconvey the land back to Fronks within five years. The parties subsequently signed an agreement setting forth each party's obligations. When Collins did not comply with the agreement, Fronks brought an action for breach of contract, breach of implied covenant of good faith and fair dealing, and misrepresentation seeking, inter alia, to enforce the agreement and recover damages, obtain ownership of the real property, and recover attorney fees. The district court determined that the agreement was a valid, enforceable contract and granted summary judgment to Fronks. The Supreme Court affirmed, holding that the agreement was a valid contract and the agreement did not suffer from a lack of consent by virtue of duress or menace.

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Husband and Wife divorced in 2005. During the pendency of the divorce proceedings, Wife brought a separate civil suit seeking various forms of equitable relief and monetary damages, which the district court granted. At issue in the civil suit was certain property on which the couple ran an equestrian business but which a Husband's corporation owned. Husband filed a timely notice of appeal, arguing, inter alia, that the district court erroneously found that an express oral agreement existed between Husband and Wife to purchase, hold, and develop the property, and the equestrian business therein, for their mutual enjoyment and benefit. The Supreme Court affirmed in part and reversed in part, holding (1) the district court did not err in imposing a constructive trust and declaring the property part of the marital estate; but (2) the district court erred in its determination that an enforceable agreement existed, as the purported agreement lacked sufficient specificity. Remanded.

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The board of directors of a nonprofit condominium association approved necessary but nonemergency repairs to the association's parking garage without a full vote by its members. The repairs were completed at an amount eight times greater than the theshold in the bylaw, which required preapproval of a supermajority of owners to authorize certain expenditures exceeding $25,000. Several condominium owners sued for a judicial declaration that the board's violation of the bylaw's preapproval requirement excused their obligation to pay. The association counterclaimed against the owners to collect their share of the completed repairs and for attorney fees. The district court ruled in favor of the owners. The Supreme Court reversed, (1) holding that the business judgment rule applies to the governance decisions of this board when it acts within its authority; and (2) because the bylaw at issue was ambiguous, the Court deferred to the board's authority under the governing declaration to decide questions of interpretation or application of the bylaws. Remanded.

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Plaintiff ranchers sued the State because of ongoing damage to their property from incursions of prairie dogs from public lands. Relying on multiple statutes requiring the State to manage and control prairie dog populations, Plaintiffs requested injunctive relief, abatement, and damages. The circuit court granted summary judgment in favor of Plaintiffs and ordered a trial on damages. When the case was reassigned, the State moved the new judge to reexamine the first judge's ruling. On reconsideration, the court vacated the first summary judgment and granted summary judgment for the State. The Supreme Court affirmed, holding that the second circuit court judge did not err in granting summary judgment for the State where the acts mandated by the statutes cited by Plaintiffs were discretionary and the State was protected from suit by sovereign immunity.