Justia Real Estate & Property Law Opinion Summaries

Articles Posted in April, 2012
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Regent Investments sued Earline Waddle and Lorene Elrod alleging that Regent contracted to purchase real property from Waddle, but that afterwards Regent discovered Waddle had conveyed one-half of her interest in the property to Elrod. Waddle filed a cross-claim against Elrod, alleging that Elrod had acquired her interest in the property through undue influence. Regent later dismissed its claims. Waddle subsequently agreed to settle the case against Elrod by way of emails sent by the parties' attorneys. Elrod, however, refused to sign the settlement documents. The trial court entered an order enforcing the settlement agreement. Elrod appealed, arguing that the Statue of Frauds precluded enforcement of the settlement agreement. The court of appeals affirmed, reasoning that the Statute of Frauds applies only to contracts for the sale of lands. The Supreme Court affirmed on alternate grounds, holding (1) the Statute of Frauds applies to settlement agreements requiring the transfer of an interest in real property; but (2) the Statute of Frauds did not bar enforcement of the settlement agreement at issue in this appeal because the emails that the parties' counsel exchanged and the legal description of the property included in the cross claim satisfied the Statute of Frauds.

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This appeal stemmed from litigation between a homeowner, its insurer, and the company hired to restore the home after a series of storms caused damage to the home. A jury found in the restoration company's favor and the trial court rendered judgment against the homeowner and its insurer, jointly and severally. The court of appeals affirmed in part and reversed in part. The court affirmed the court of appeals' judgment with respect to the homeowner's state Deceptive Trade Practices Act (DTPA), Tex. Bus. & Com Code 17.50, claim because the homeowner was not a prevailing party and he was not a entitled to an order restoring all amounts paid under the contracts without deducting the value received under those agreements. The court also affirmed the restoration company's charge error complaint. The court reversed the court of appeals' judgment as to the insurer where the insurer received direct consideration for its promise to pay for the dehumidification and the court of appeals erred in concluding otherwise. The court remanded for that court to consider the insurer's remaining arguments, which included challenges to the factual sufficiency of the evidence supporting the jury findings.

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This was an appeal from a judgment awarding tenant damages for a landlord's breach of a construction-related duty under a build-to-suit lease agreement. The tenant sued asserting that the landlord's failure to adhere to construction plans resulted in a substandard building, diminishing the value of its leasehold. On appeal, the court agreed with the landlord that the cost of repair was the appropriate measure under the circumstances of the case. Because under the appropriate measure, there was no evidence that the tenant had been damaged, the court reversed.

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A monition action was brought by the City against defendant for the collection of taxes and charges. The real property was sold at a sheriff's sale to the successful third-party bidder, One-Pie. After confirmation, One-Pie filed a petition for tax deed. The Superior Court confirmed a Commissioner's order denying the petition, because defendant had successfully redeemed the property. One-Pie raised three claims on appeal, contending that the Superior Court erred by: (i) determining that the property had been redeemed properly; (ii) determining that One-Pie lacked standing; and (iii) allowing defendant to use One-Pie's funds for redemption. The court found no merit in the appeal and affirmed the judgment.

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Wife and husband were married in 1998 and wife filed a complaint for divorce in 2008. The parties resolved all issues by agreement except the disposition of certain real property which was purchased by wife prior to the marriage. In 2005, wife transferred the property into a family trust for the benefit of her three children. Considering the lack of any evidence of the value of the maintenance work performed by husband, the testimony of wife that he was paid for this work, the fact that husband used a portion of the property rent-free as a commercial recording studio, and the fact that the property paid for the mortgage through its own rents, the trial court had evidentiary support for its finding that any increased value in the property attributable to husband's contributions and the expenditure of marital funds was nominal. Accordingly, the trial court did not abuse its broad discretion to divide the marital property equitably.

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This appeal arose from a dispute between two neighboring property owners regarding a workshop addition to the home of Appellants, Neil and Seth Milner (Milner). The addition violated the city's setback requirement, and Appellee Gary Olsen reached an agreement with Milner to sell strip of his property so the building would be in compliance. The parties disagreed, however, about the terms of the agreement. Milner filed suit, and the district court rescinded and set aside the agreement. Olsen was ordered to return Milner's money and costs, and Milner was required to deed the land back to Olsen. After Olsen discovered that Milner's addition encroached past the boundary line of his property, Olsen filed suit alleging trespass and nuisance. The district court found in favor of Olsen and ordered Milner to remove the addition. The Supreme Court affirmed, holding that the district court did not err in determining (1) Olsen's claims were not barred by res judicata; (2) Olsen's claims were not barred by equitable estoppel or waiver; and (3) Milner was liable to Olsen for trespass.

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In 1991, the predecessor in title to the disputed property at issue in this case to Petitioner, HNS Development, and Baltimore County failed to resolve conclusively whether certain development restrictions would be placed on parcels including and adjacent to a historic building. HNS purchased the two parcels in 2004 with knowledge of a cautionary note on the 1991 development plan. After having its proposed amended development plan rejected by three county agencies, the circuit court, and the court of special appeals, HNS asked the Court of Appeals to conclude that its amended development plan met the applicable development regulations of the Baltimore County Code and ignore the conceded Baltimore County Master Plan conflict. Respondents, People's Counsel for Baltimore County and the Greater Kingsville Community Association, argued that the Master Plan conflict provided a stand-alone basis for the County to reject the proposed amended development plan. The Court of Appeals agreed with Respondents and affirmed the judgment of the court of special appeals.

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This appeal grew out of an adversary proceeding in debtor's Chapter 7 bankruptcy proceedings. The bankruptcy trustee filed a complaint against debtor and her husband, claiming that certain money and property belonged to debtor's bankruptcy estate. The trustee sought turnover to the bankruptcy estate of certain proceedings from the sale of the couple's homestead, a rental property held in the husband's name, and income earned from the rental property. The bankruptcy court rejected all of the trustee's claims and the Bankruptcy Appellate Panel affirmed. The court concluded that the proceeds of the homestead sale belonged to debtor's bankruptcy estate but that the rental property held in the husband's name and the income did not. Accordingly, the court reversed in part and affirmed in part.

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Plaintiffs Marc and Laurie Brown appealed a superior court order that granted summary judgment to Defendant Concord Group Insurance Company in their insurance coverage action. In 2005, Plaintiffs purchased a house from then-owner Michael Rogers. Two years later, they discovered water leaking into the house near a sliding glass door. They contacted Eugene Spencer, the person who built the house, to repair the problem. In 2009, Plaintiffs again observed water leaking into the house near the same sliding glass door. This time they contacted Daniel Lewis to repair the problem. Lewis later testified that damage was caused by leaks Spencer did not discover during his repair, but probably would have discovered had he removed all of the siding on the wall. The damage required extensive repair work. Concord Group insured Spencer. His policy did not cover "property damage" to his work "arising out of [his work] or any part of [his work]." Plaintiffs argued that the policy provided coverage because Spencer negligently repaired their house in 2007, and the damage in 2009 would not have occurred but for his negligence. Upon review of the policy in question, the Supreme Court concluded it was error for the trial court to grant Concord Group summary judgment because what caused the damage (either the 2003 or the 2007 work) was a genuine issue of material fact as to whether the policy provided coverage in this case. The case was reversed and remanded for further proceedings.

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Citizens sought a ballot initiative to eliminate the special regulations that govern real property transactions in a local economic development area. After the municipal clerk twice denied their petition for a ballot initiative, the sponsors sued for an order placing the initiative on the ballot. Finding the petition to be both contrary to existing law and misleading, the superior court upheld the municipal clerk's denial. The sponsors appealed. Because the Supreme Court concluded that the petition is neither contrary to existing law nor misleading, it reversed.