Justia Real Estate & Property Law Opinion Summaries

Articles Posted in December, 2011
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Appellants signed a note secured by a deed of trust on their home. Respondents, Regional Trustee Services Corporation (RTSC) and One West Bank, were the trustee and beneficiary of the deed of trust. After Appellants stopped making payments, RTSC initiated judicial foreclosure. Appellants elected mediation under the foreclosure mediation program (FMP), which provides proof of compliance with the state's law requiring mediation upon homeowner request before a nonjudicial foreclosure sale can proceed on an owner-occupied residence. When RTSC failed to attend the mediation, the district court declared RTSC in bad faith and directed that RTSC be denied the FMP certificate needed to conduct a valid foreclosure sale. RTSC later reinitiated nonjudicial foreclosure. Appellants sought to enjoin Respondents from pursuing foreclosure, arguing that the order denying the FMP certificate permanently prevented foreclosure. The district court denied Appellants' request and directed the parties to return to FMP mediation. The Supreme Court affirmed, holding that under the circumstances of this case, a lender who has been denied an FMP certificate for failing to mediate in good faith can reinitiate foreclosure by means of a new notice of default and election to sell and rescission of the original, thereby restarting the FMP process.

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After Leon Coleman failed to perform eight construction contracts for detached homes, he was convicted of eight counts of theft by deception and eight counts of failure to escrow under Deposits on New Homes Subtitle (Act). The court of special appeals reversed, holding that the Act did not apply and that there was insufficient evidence of intent to support the theft convictions. The Court of Appeals affirmed, holding (1) the evidence was insufficient to conclude that Coleman intentionally deprived buyers of their property, as required under the theft statute; and (2) the plain meaning of the Act indicated that it did not apply to Coleman.

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The town planning board (Board) granted a dredge-and-fill permit for two culverts on property owned by the Berdeens. Scott Marquis, who owned property abutting the Berdeens' property, (1) appealed the Board's decision, and (2) filed an appeal with the Zoning Board of Appeals (ZBA), which the ZBA denied. Marquis's main contention was that an illegal subdivision had been created on the Berdeens' property, which he claimed the Board should have addressed in determining whether to approve the application for the dredge-and-fill permit. The superior court consolidated Marquis's appeals and remanded them. In their decisions, the Board and the ZBA each determined that the Berdeens' property did not qualify as a subdivision pursuant to Me. Rev. Stat. 30-A, 4401(4) and local law. The superior court affirmed. The Supreme Court (1) affirmed the judgment of the superior court affirming the Board's decision to grant a dredge-and-fill permit; (2) vacated the judgment of the superior court and remanded with instructions to vacate the Board's and ZBA's decisions applying the subdivision law because those determinations were not ripe for review; and (3) instructed the superior court to dismiss the appeal of the ZBA decision as premature.

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Petitioner Christopher Ruel, a licensed real estate appraiser, appealed a superior court order that remanded his case to the New Hampshire Real Estate Appraiser Board for a new disciplinary hearing. In the spring of 2007, Kenneth Frederick hired Petitioner to appraise his property in Kingston. The New Hampshire Department of Transportation (DOT) sought to take Frederick's property by eminent domain and Frederick used Petitioner's appraisal in negotiating a settlement with DOT. DOT performed its own appraisal and valued the property at approximately fifty thousand dollars less than did Petitioner. After finalizing the settlement, a DOT appraisal supervisor reviewed Petitioner's appraisal and filed a grievance against him with the Board. In April 2010, four members of the Board voted to order Petitioner to pay a $500 fine and attend two appraisal courses. On appeal, Petitioner argued that the superior court should have dismissed the Board proceedings against him because: (1) the DOT lacked standing to file the initial grievance and, therefore, the case should never have been heard; (2) the Board violated its governing statute by taking more than two years to dispose of his case; (3) the Board's delay materially prejudiced him; and (4) the Board's determination to continue with the hearing and render a final decision without a quorum violated his due process rights. Upon careful review of the Board's hearing record, the Supreme Court rejected Petitioner's arguments on appeal.

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Petitioners Louise Lauer and Darrell de Tienne separately owned properties that border a lot owned by Mike and Shima Garrison. Through a Land Use Petition Act (LUPA) petition, Petitioners challenged a fish and wildlife variance granted to the Garrisons by Pierce County (the County) to build a single family residence within the protective buffer zone of a stream that runs across the Garrisons' property. The issue before the Supreme Court was whether the Garrisons' rights vested in 2004 when they submitted their building application. The Garrisons also raised questions about the standing and timeliness of Petitioners' claim, as well as whether the relevant critical area regulation even applies to the Garrisons' shoreline property. Upon review, the Court held that Petitioners properly petitioned the superior court for review and that, because the Garrisons' building permit application contained misrepresentations of material fact, the Garrisons' rights did not vest in 2004.

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JB Mineral Services, LLC (JB), appealed the grant of summary judgment declaring an oil and gas lease terminated and awarding statutory damages, costs, and attorney fees to Dahn P. Beaudoin and J. Willard Beaudoin, as trustees of the William Beaudoin Irrevocable Mineral Trust (Beaudoins). JB sought to lease the Beaudoins' oil and gas interests, and sent a lease, a supplemental agreement and a document it alleged was a "120-say sight draft" for $165,000. Later, JB sent a revised lease and a 25-day sight draft to Beaudoins, reflecting JB's claim that Beaudoins owned 3.68 fewer mineral acres than covered in the original lease. The revised lease would also have extended the term of the lease approximately six months longer than a July 2009 lease. Beaudoins never executed or agreed to the revised lease and did not present the second sight draft for payment. Beaudoins claim that the "termination date" under the supplemental agreement was January 12, 2010, which was 120 business days after they signed the lease and supplemental agreement in July, 2009. JB's position was that it had until January 20, 2010, to pay a supplemental bonus payment by funding the July 2009 sight draft. Beaudoins' counsel responded by faxed letter dated January 20, 2010, reiterating that the lease had already terminated and was invalid. JB never authorized payment of the July 2009 sight draft, but recorded the original July 2009 lease on January 20, 2010. Beaudoins sued JB to have the lease declared invalid and for statutory damages, costs, and attorney fees. Upon review, the Supreme Court affirmed summary judgment in favor of the Beaudoins, finding the district court did not err in concluding JB failed to timely pay or tender the sum required to continue the 2009 lease and that the lease automatically terminated by its express terms.

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The State of Illinois maintains a state park on land that was once a college founded in the nineteenth century. The township sought quiet title to two parcels comprising the park. The state has a sign on the land and mows the grass, but no legal instruments have been recorded against the parcels since the original survey and plat in 1860 by the college. When the plat was certified, the parcels complied with requirements for a statutory dedication. The dedication was impliedly accepted by the township and fee simple vested in the public. The appellate court affirmed the circuit court's grant of summary judgment to the township quieting title, finding no lack of jurisdiction. It also affirmed on the merits, declining to reach, as premature, a claim that the township wanted to sell land that must be preserved for public purposes. The supreme court affirmed. In the initial filing by the township, the state could not have been sued in circuit court, but the state went beyond defending itself when it subsequently invoked the jurisdiction of the circuit court to assert its own claim that it was entitled to have title quieted in its favor.

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Tara Thomas filed a lawsuit against her former attorney, Grant Kidani. Kidani represented Thomas in a real estate dispute wherein the jury decided the case against Thomas. Following that trial, Thomas sued Kidani, alleging legal malpractice. The circuit court granted summary judgment in favor of Kidani, and the intermediate court of appeals (ICA) affirmed. The Supreme Court affirmed but on different grounds, holding (1) the ICA applied an incorrect standard of review on appeal where it invoked the clearly erroneous standard rather than a de novo review of Kidani's motion for summary judgment; but (2) Kidani was entitled to summary judgment in this case because Thomas did not meet her burden of proving that she would have prevailed at trial.

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In 1979, Plaintiffs-Appellees James and Betty Van Berkom executed a contract for deed for the purchase of certain real estate from Arlo and Garoldine Van Berkom, James Van Berkom's uncle and aunt. The contract for deed contained a mineral reservation clause. In 1995, after the completion of payments under the contract for deed, Garoldine executed a warranty deed conveying the real estate to Plaintiffs. The warranty deed did not contain a mineral reservation clause. Garoldine died in 2002, and she willed an option to purchase any part of her farmland and mineral rights she owned to Defendant Mark Barenthsen who exercised the option and purchased (specific to this appeal) the mineral rights in question. A discrepancy in title was brought to the parties' attention in 2008 when both parties sought to simultaneously lease the disputed mineral acres. Plaintiffs commenced this action to quiet title to the mineral rights they claimed under the 1995 warranty deed. Defendants responded, alleging the warranty deed suffered from a mutual mistake and seeking to reform the warranty deed to conform to the 1979 contract for deed. They argued the warranty deed suffered from a mutual mistake and Arlo and Garoldine actually intended to except the mineral rights from the warranty deed. The trial court ruled in favor of Plaintiffs, and Defendants appealed. The primary issue on appeal is whether the trial court clearly erred when it found Defendants failed to establish a mutual mistake and were not entitled to reformation of the warranty deed. Finding Defendants failed to establish the alleged error affected their substantial rights and prejudiced the outcome of the case, the Supreme Court affirmed the trial court's judgment in favor of Plaintiffs.

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This case arose when the Zoning Board of Adjustment (ZBA) granted three use variances to Ingleside to allow partial demolition and renovation of the H. Fletcher Brown Mansion for use as a thirty-five unit multi-family apartment building for senior citizens. Appellants raised three issues on appeal. The court concluded that the ZBA was not properly constituted and therefore, it was without authority to act. Consequently, there was no need to address the merits of appellants' other two arguments. The judgment of the Superior Court was reversed and the matter remanded for further proceedings.