Justia Real Estate & Property Law Opinion Summaries

Plaintiffs Russell and Mary Ann Rueger and John Moyers appealed a trial courts grant of summary judgment in favor of Defendants Natural Resources Board and the District #9 Environmental Commission of Vermont. The matter arose from an Access to Public Records Act request. The court concluded that certain records held by Defendants reflected deliberations of an agency acting in a quasi-judicial role, and those were exempt from disclosure. Plaintiffs argued on appeal that the court erred in interpreting the Act. Upon review, the Supreme Court agreed with the trial court that the documents in question fell within the plain language of the Act, and were indeed exempt. Accordingly, the Court affirmed the grant of summary judgment in favor of Defendants.

This appeal arose from an action brought by Stonebrook Construction, LLC against Chase Home Finance, LLC where it sought to foreclose a mechanic's lien. The district court granted Chase's motion for summary judgment, holding that Stonebrook was precluded from placing a lien against the subject property because it did not properly register under the Idaho Contractor Registration Act (ICRA) Stonebrook appealed, arguing that Chase lacked standing to assert this defense and was not within the class intended to be protected by the ICRA. Alternatively, Stonebrook contended that the good-faith registration of one member of the LLC constituted actual or substantial compliance with the requirements of the ICRA. Upon review of the matter, the Supreme Court affirmed: "the plain language of the Act unambiguously indicates that the Legislature intended to require all limited liability companies engaged in the business of construction to register as contractors and to preclude those that do not register from enforcing mechanic's liens. Although the result for Stonebrook is harsh, it is the result the Legislature intended. [The Court was] not at liberty to disregard this legislative determination as to the most effective means of protecting the public." Thus, the Court declined to vacate the district court’s decision.

Gary Fordham, David Thompson, and Venture Sales, LLC appealed a chancery court order that dissolved Venture Sales pursuant to Mississippi Code Section 79-29-802 (Rev. 2009). Walter Ray Perkins owned 27.7 acres of land. Sometime in the late 90s, he was approached by Fordham and Thompson about a potential business venture involving his land. Perkins, Fordham, and Thompson eventually agreed that Fordham and Thompson would acquire the 438 acres of land that adjoined Perkins's land; the parties would combine their respective land, along with some cash, and form a venture to develop the land. Following the contributions, the operating agreement of Venture Sales was revised to reflect the arrangement. The parties signed the new operating agreement in 2000. In February 2010, Perkins filed an application for judicial dissolution of Venture Sales. Following a trial, the chancellor found that, based on the property's history, the company's inability to get funding for development, and the uncertainty regarding the economic climate in the area, it was not reasonably practicable to carry on the business of Venture Sales. The chancellor therefore ordered the company dissolved. Upon review, the Supreme Court determined that the chancellor's decision to order the dissolution of Venture Sales was not an abuse of discretion: substantial evidence existed supporting the chancellor's determination that it was not reasonably practicable for Venture Sales to carry on business in conformity with its operating agreement.

Defendant-Respondent High Mark Development, LLC owned a commercial building located in the City of Ammon. In 2006, it had leased a portion of the building to The Children's Center, Inc., for a period of ten years. In 2007, High Mark listed the real property for sale through its realtor. Plaintiff-Appellant Thomas O'Shea, a resident of California, learned of the property through a realtor friend in Boise. Appellant and his wife were trustees of the "Thomas and Anne O'Shea Trust u/d/t Dated November 2, 1998," which they had formed to protect their assets and provide for their children. They decided to purchase the real property. The Trust entered into a real estate contract agreeing to purchase the property from Defendant High Mark for $3.7 million. The sale closed late 2007. The Children's Center made no payments to Plaintiffs after they acquired the property. Shortly thereafter, the Children's Center vacated the property, and went out of business. Plaintiffs filed suit against High Mark and two of its principals, Gordon, Benjamin and Jared Arave arguing Defendants had induced them to acquire the property by providing false information that the Children's Center was current in its payments of rent and/or concealing or failing to disclose that the Center had failed to pay all rent due under the lease. Plaintiffs alleged claims for breach of contract and fraud by misrepresentation and nondisclosure against all of the Defendants, but the issues were narrowed after cross motions for summary judgment. The case was tried to a jury on the issues of: High Mark's breach of contract; High Mark's alleged fraud by misrepresentation and nondisclosure; Gordon Arave's alleged fraud by misrepresentation and nondisclosure; and Benjamin Arave's alleged fraud by nondisclosure. The jury returned verdicts in favor of all of those Defendants. The Plaintiffs filed a motion for a judgment notwithstanding the verdict on the issue of liability or, in the alternative, for a new trial, which the district court denied. The Plaintiffs then timely appealed. Upon review, the Supreme Court concluded that the jury could reasonably have determined that the Plaintiffs failed to prove that they were damaged by the breach and that they failed to prove that the breach of contract caused any damages. In addition, the jury could have found that the breach did not cause any damages because the Plaintiffs did not have the right to terminate the contract for the misrepresentation in an estoppel certificate. Therefore, the district court did not err in denying the motion for a judgment notwithstanding the verdict on the breach of contract claim.

Property at issue in this case was a five-sided parcel roughly the shape of a rectangle. North of the property is a paved road that curves northwest. On the east side, a north-south right-of-way that provided access from the paved road to a lot adjoining the property to the south. In 2006, Defendants-Respondents Cornelius and Patricia Mercea purchased the property; in 2007, Plaintiff-Appellant Diana James purchased the property from the Merceas. Prior to the purchase, she did not have any conversations with the Merceas, nor did they make any representations regarding the property except those contained in the property disclosure form required by the Idaho Property Condition Disclosure Act. Plaintiff obtained title insurance from First American Title Insurance Company, and First American Title Company, Inc., was the closing agent. In 2009, Plaintiff filed this action against the Merceas, the prior owners of the parcel, and First American Title Insurance Company, alleging that when she purchased the property, she believed that the pavement going from the paved street to her garage was entirely her private driveway and that she did not know that most of that pavement was on a public right-of-way. She also alleged that she believed a portion of an adjoining lot was also part of the property she purchased. The trial court granted summary judgment in favor of the Merceas, finding that they did not violate the Idaho Property Condition Disclosure Act or commit fraud by failing to disclose that the public road alongside the property was not a private driveway on the property. The Supreme Court affirmed the trial court's judgment finding Plaintiff failed to meet her burden of presenting sufficient evidence to maintain her claims.

This case arose from charges against defendants, which related to the stealing of prescription medical devices from hospitals and selling them on the black market. In this interlocutory appeal, defendants challenged a district court's order denying their motion to vacate a pretrial protective order restraining their assets. Defendant argued that, in addition to traceability, they should have been allowed to challenge the factual foundation supporting the grand jury's probable cause determinations at a pretrial, post-restraint hearing. Because defendants were not entitled to try the entire case twice, once before trial and then again before a judge and jury, the court affirmed the district court's order denying defendants' motion to vacate the protective order.

Debtor appealed an order of the Bankruptcy Court directing that a third party receive a portion of a check made payable jointly to the third party and debtor for rent of debtor's property. At issue was whether the third party had a right to funds for rent of debtor's property when the rent check was made payable jointly to debtor and the third party. The court held that the third party had an interest in the funds by virtue of a contract between the parties and, therefore, the third party was entitled to the portions of the funds that the bankruptcy court required debtor to remit to him.

The issue before the Supreme Court concerned the validity of a single unified tax assessment of both a tract of land, and the buildings of a shopping center, movie theater, and restaurant located on the land. The land was owned by Appellant Tech One Associates, and the buildings and surrounding improvements to the land were constructed and owned by a second entity, "Terra Century Associates" (Lessee). Upon review, Appellees the Board of Property Assessment Appeals and Review of Allegheny County, the Borough of West Mifflin, and the West Mifflin Area School District correctly treated the land, the buildings, and the improvements to the land as real estate subject to taxation under Section 201(a) of the Commonwealth's General County Assessment Law. Further, the Court upheld the rulings of the lower courts that its previous decision in "In re Appeal of Marple Springfield Center, Inc," (607 A.2d 708 (1992)) did not preclude the valuation of real estate owned as a leasehold interest, and that the market value for the land, buildings, and improvements determined at trial accurately reflected the "economic reality" of the impact of the long-term lease between Appellant and its lessee.

Appellant Mesivtah Eitz Chaim of Bobov, Inc., a not-for-profit religious entity related to the Bobov Orthodox Jewish community in Brooklyn, appealed a Commonwealth Court ruling, asking that the Supreme Court find it is an "institution of a purely public charity" under Article VIII, sec. 2(a)(v) of the Pennsylvania Constitution, and entitled to exemption from real estate taxes. Appellant operated a summer camp in Pike County, Pennsylvania. Pike County denied Appellant's exemption request, finding that occasional use of Appellant's recreational and dining facilities by Pike County residents was insufficient to prove Appellant was a purely public charity. The Court allowed this appeal to determine if it must defer to the General Assembly's statutory definition of that term. Upon review, the Supreme Court affirmed, holding its prior jurisprudence set the constitutional minimum for exemption from taxes; the legislation may codify what was intended to be exempted, but it cannot lessen the constitutional minimums by broadening the definition of "purely public charity" in the statute.

Ordinarily, the Government must assess a deficiency against a taxpayer within "3 years after the return was filed." 26 U.S.C. 6501(a). The 3-year period was extended to 6 years, however, when a taxpayer "omits from gross income an amount properly includible therein which is in excess of 25 percent of the amount of gross income stated in the return." Section 6501(e)(1)(A). At issue was whether this latter provision applied when the taxpayer overstated his basis in property that he has sold, thereby understating the gain that he received from the sale. Following Colony, Inc. v. Commissioner, the Court held that the provision did not apply to an overstatement of basis. Therefore, the 6-year period did not apply. Accordingly, the Court affirmed the judgment of the Fourth Circuit.