Justia Real Estate & Property Law Opinion Summaries

Appellants Montana Department of Natural Resources and Montana Board of Land Commissioners (collectively, “the State”) appealed several portions of a district court's summary judgment order in the State’s quiet title action. The issues raised on appeal were: (1) whether the District Court erred by declaring that islands arising vertically from the bed of the Missouri River after statehood were not held by the State in trust for the financial benefit of the public schools; (2) whether the District Court erred by refusing to declare a surveyed boundary between the islands and adjacent private lands based on the State’s evidence; (3) whether the District Court erred in requiring the State to pay damages for taxes paid and improvements made on the land under the theory of unjust enrichment; and (4) whether the District Court erred by denying costs to the State. Upon review, the Supreme Court concluded that the State was the owner of the disputed lands, and as the prevailing party, it was entitled to recover the costs of producing the survey of the boundary of the State-owned land at issue. "While the costs were substantial, the law affords the court no discretion." Accordingly, the Supreme Court reversed the District Court’s denial of the State’s costs and remanded the case with instructions to determine and award the appropriate amount. View "Dept. of Nat. Resources v. ABBCO et al." on Justia Law

In this real-property-valution case, Owner sought to reverse the twenty percent increase in the value of his residential property that the auditor ordered for tax year 2007 as part of the sexennial reappraisal in that county. Owner did not attend the hearing before the board of revision (BOR). On appeal to the board of tax appeals (BTA), the BTA excluded Owner's testimony and two of his exhibits. It then held that Owner had not sustained his burden to show a value different from that found by the BOR. Owner appealed, arguing that he was not properly notified of the BOR hearing, that all the evidence he presented at the BTA hearing should have been considered by the BTA, and that he was entitled to a reduced valuation for tax year 2007. The Supreme Court affirmed, holding that the BTA reasonably and lawfully upheld the county's valuation of Owner's property. View "Gaston v. Medina Cty. Bd. of Revision" on Justia Law

Plaintiff entered into a lease with Defendant containing optional renewal terms. The parties disputed whether the option was properly exercised. Defendant then informed Plaintiff that if it failed to vacate the leasehold, Defendant would pursue legal action. Plaintiff brought this action to forestall that eventuality. At issue in this case was whether the Court of Chancery can exercise jurisdiction over what is essentially a real estate possession action, notwithstanding that the Legislature has vested exclusive jurisdiction over such matters with the Justice of the Peace Courts. The Court of Chancery granted Defendant's motion to dismiss, concluding (1) the Court does not have jurisdiction, under the facts of this case, to enjoin Defendant from seeking relief from the Justice of the Peace Court in this matter where that court has exclusive jurisdiction; and (2) a claim does not exist in equity to nullify Defendant's contractual rights arising from Plaintiffs' purported failure to timely exercise an option. View "Heartland Del. Inc. v. Rehoboth Mall Ltd. P'ship" on Justia Law

The New Jersey Sports and Exposition Authority, a state agency which owned a leasehold interest in the East Hall, also known as “Historic Boardwalk Hall”, on the boardwalk in Atlantic City, was tasked with restoring it. After learning of the market for federal historic rehabilitation tax credits (HRTCs) among corporate investors, and of the additional revenue which that market could bring to the state through a syndicated partnership with one or more investors, NJSEA created Historic Boardwalk Hall, LLC (HBH) and sold a membership interest to a subsidiary of Pitney Bowes. Transactions admitting PB as a member of HBH and transferring ownership of East Hall to HBH were designed so that PB could earn the HRTCs generated from the East Hall rehabilitation. The IRS determined that HBH was simply a vehicle to impermissibly transfer HRTCs from NJSEA to PB and that all HRTCs taken by PB should be reallocated to NJSEA. The Tax Court disagreed. The Third Circuit reversed. PB, in substance, was not a bona fide partner in HBH. View "Historic Boardwalk Hall, LLC v. Comm'r of Internal Revenue" on Justia Law

Plaintiffs brought this suit in Minnesota state court challenging the foreclosure of the mortgage of their home. The Bank defendants removed the case to federal court and filed a motion to dismiss under Rule 12(b)(6), as did the PFB defendants. The district court granted the motions to dismiss and plaintiffs appealed. The court held that the lack of any factual allegations regarding PFB rendered plaintiffs' complaint deficient and the district court did not err in dismissing it for failure to state a claim. The court also held that the district court properly dismissed plaintiffs' claims against the Bank, finding no merit in plaintiffs' claims. View "Butler, et al. v. Bank of America, N.A., et al." on Justia Law

The property at the center of this dispute was located in San Juan County with productive oil and gas wells thereon. While ownership of the land was the ultimate question the parties sought to resolve in the underlying lawsuit, the issue on appeal was narrower: whether, as a matter of law, a joint tenancy in realty may be terminated and converted into a tenancy in common by a mutual course of conduct between the owners that demonstrates their intent to hold the property as tenants in common. Upon review of the matter, the Supreme Court held that such a course of conduct may effectively terminate a joint tenancy. Accordingly, the Court reversed the Court of Appeals and remanded the case to the district court for further proceedings. View "Edwin Smith, LLC v. Synergy Operating, LLC" on Justia Law

The New Castle County Sheriff sold real property encumbered with a judgment lien and a mortgage lien, in that order of priority, at a mandated sheriff’s sale. The Sheriff disbursed the proceeds to Eastern Savings Bank, the mortgage lien holder. CACH, LLC, the judgment lien holder, filed a complaint in the Court of Common Pleas alleging misappropriation and unjust enrichment. The Court of Common Pleas judge denied CACH’s Motion for Summary Judgment and granted Eastern’s Motion to Dismiss for failure to state a claim. The Superior Court judge reversed. On appeal, Eastern argued that the sheriff’s sale did not discharge the judgment lien, and therefore CACH is not entitled to the sale proceeds. Upon review, the Supreme Court found no merit to Eastern’s argument and held that: (1) all nonmortgage liens are discharged at a sheriff’s sale and (2) sheriff’s sale proceeds are disbursed according to a first in time, first in line priority. Therefore, the Court affirmed. View "Eastern Savings Bank, FSB v. Cach, LLC" on Justia Law

Vanderbilt sued to foreclose against appellees for defaulting on their installment payments on a mobile home and appellees responded by claiming that they had been released from any underlying debt on the retail installment contract. Intervenors claimed that Vanderbilt, CMH, and their parent company CHI, had filed false liens on their land as collateral for appellees' retail installment contract. The court affirmed the judgment and award of damages with respect to intervenors' claims. The court reversed and remanded the judgment as to Vanderbilt's claims against appellees, as well as appellees' counterclaims. View "Vanderbilt Mtge. and Fin. Inc. v. Flores, et al." on Justia Law

Appellants John and Margaret Toor appealed a decision of the Superior Court, Environmental Division, which upheld a notice of violation issued by the Town of Grand Isle Zoning Administrator for changing the use of their single-family home in Grand Isle without obtaining a zoning permit. On appeal, appellants argued that renting their home did not constitute a change in use under the Town's zoning ordinance, and accordingly they were not required to obtain a zoning permit prior to renting. Upon review of the applicable zoning ordinances and the parites' briefs on appeal, the Supreme Court agreed with Appellants and reversed the Zoning Administrator's decision. View "In re Toor & Toor Living Trust NOV" on Justia Law

This case related to an arbitration award denying an express easement on Petitioners' property. Petitioners filed a petition in the circuit court to confirm the arbitration award, and Respondent filed a motion to vacate the same. Respondent argued that the award was irrational because, without an easement over Petitioners' land, his land would be landlocked. The circuit court confirmed the arbitration award, relying upon the Uniform Arbitration Act. The court of special appeals (CSA) reversed, overturned the arbitrator's denial of the easement, and directed that an easement by necessity be located over Petitioners' land. While recognizing the Act's limitation on the authority of the courts to overturn arbitration awards, the CSA pointed out that arbitration awards that were completely irrational or which were manifestly in disregard of the law had been overturned in previous opinions. The Court of Appeals vacated the judgment of the CSA and remanded with directions to vacate the circuit court, holding (1) the arbitration award, in part, was contradictory; and (2) Md. Code Ann. Cts. & Jud. Proc. 3-225(a) authorizes a court to vacate an award and order a rehearing before arbitrators when the award is ambiguous or contradictory. Remanded for further proceedings pursuant to section 3-225(a). View "Downey v. Sharp" on Justia Law