Justia Real Estate & Property Law Opinion Summaries

Articles Posted in September, 2012
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Appellant was among a number of homeowners in multiple states claiming that their mortgage companies wrongfully demanded an increase in flood insurance coverage to levels beyond the amounts required by their mortgages. In this case, the First Circuit Court of Appeals concluded that the pertinent mortgage provision explicitly gave the lender discretion to prescribe the amount of flood insurance. However, the Court held that the district court dismissal of Appellant's complaint must be vacated, as (1) a supplemental document given to Appellant at her real estate closing entitled "Flood Insurance Notification" reasonably may be read to state that the mandatory amount of flood insurance imposed at that time would remain unchanged for the duration of the mortgage; and (2) given the ambiguity as to the Lender's authority to increase the coverage requirement, Appellant was entitled to proceed with her breach of contract and related claims. View "Lass v. Bank of America, N.A." on Justia Law

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In 1942, the U.S. Bureau of Reclamation dammed the upper San Joaquin River near Friant, California. Friant Dam still operates, generates electricity and collects water for agriculture, but causes portions of the river to dry up, leading to extermination of Chinook salmon and other ecological consequences. In 1988 environmental groups sued the federal government, claiming violations of state and federal environmental protection laws. In 2006, the parties reached a settlement that obliged the government to release water to restore and maintain fish populations downstream, while continuing to support surrounding landowners, who depend on the water. Congress subsequently passed the San Joaquin River Restoration Settlement Act, 123 Stat. 1349, directing the Secretary of the Interior to implement the Settlement. In 2009 the Bureau of Reclamation initiated the first release of water. In August 2010, downstream owners sued the government for takings, alleging that the releases unlawfully impaired property rights in the water and inundated their land. Two of the environmental groups involved in the first case moved to intervene as of right. The Court of Federal Claims denied their motion, finding that the groups’ interests were sufficiently aligned with the government’s as to create no foundation for intervention. The Federal Circuit affirmed. View "Wolfsen Land & Cattle Co. v. United States" on Justia Law

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The county assessor determined that the fair market value of a tax parcel, which was improved by a department store operated by respondent Federated Retail Holdings, Inc., was $17,000,000 for the year 2006. The assessor included the value of a leasehold interest held by Federated in the parcel adjacent to the tax parcel in its value determination. Federated timely filed petitions challenging the assessor's market value determinations. The tax court held that Federated's ownership interest in the tax parcel included the leasehold interest in the adjacent property, but concluded that the value of the leasehold interest was not subject to the jurisdiction of the tax court and therefore did not include it. The county appealed. The Supreme Court reversed, holding that the tax court had subject-matter jurisdiction to consider the value of Federated's leasehold interest in adjacent property because it constituted real property of the tax parcel under Minn. Stat. 272.03, 1 and affected the fair market value of the tax parcel. View "Federated Retail Holdings, Inc. v. County of Ramsey " on Justia Law

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The issue before the Supreme Court in this case concerned a dispute over the title to real property along the Red River in Tillman County, Oklahoma. Plaintiff-Appellee, Chad H. Akin asserted title by adverse possession, even though he also insisted that he owned the property through a deed given to him by his father Hugh in 1975. Defendants-Appellees, Don S. Castleberry, Sam D. Castleberry, Terry G. Castleberry, denied Akin's assertion of adverse possession and, instead, insisted that they owned the property through a deed obtained from their aunt in 1986. The trial court determined that Akin neglected to prove title by adverse possession and Akin appealed. The Court of Civil Appeals reversed. The Supreme Court granted certiorari and affirmed the trial court because title by adverse possession was not proven under the facts presented. View "Akin v. Castleberry" on Justia Law

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Daniel King, the substitute defendant and administrator of the estate of David Berzins (administrator), appealed from the judgment of the appellate court affirming the trial court's award of attorney's fees to the plaintiff, Mary Berzins. The administrator appealed, arguing that the trial court improperly relied on Ramin v. Ramin to grant the plaintiff's motion for sanctions and attorney's fees. Ramin held that a court has discretion to award attorney's fees to party who incurs those fees due to the other party's egregious litigation misconduct. The Supreme Court reversed, holding (1) the trial court's award of attorney's fees did not fall within the scope of Ramin, as the phrase "egregious litigation misconduct" was limited to discovery misconduct; and (2) the court did not act within its inherent authority in awarding attorney's fees for filing frivolous and duplicative postjudgment motions because it failed to make a finding that the administrator had acted in bad faith as defined in Maris v. McGrath. View "Berzins v. Berzins" on Justia Law

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The issue in this case was whether the parties' dispute over a provision in their lease for a shopping center store had to be resolved under the arbitration provision in the lease or whether it could have been resolved by a proceeding in district court. The disputed provision provided that landlord KWD River City Investments, L.P. would not alter the exterior of the shopping center without the consent of tenant Ross Dress for Less. KWD admitted that it allowed another tenant to alter the shopping center's exterior at that tenant's store location without Ross' consent. However, KWD maintained that Ross unreasonably withheld its consent in violation of the consent provision. KWD contended that the unreasonableness of Ross' refusal to consent was demonstrated by Ross conditioning its consent upon KWD making exterior alterations to benefit Ross. KWD then filed declaratory judgment action in district court to resolve the dispute. Ross filed a motion to compel arbitration. The trial court denied the motion to compel arbitration. On appeal, the Court of Civil Appeals reversed. KWD petitioned the Supreme Court to review the opinion of the Court of Civil Appeals. Upon review, the Court vacated the Court of Civil Appeals opinion and affirmed the trial court's denial of the motion to compel arbitration. View "KWD River City Investments, LP v. Ross Dress for Less, Inc." on Justia Law

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Landowners along a trail in Missouri and Kansas sought to join an existing “takings” suit against the United States, concerning the Rails-to-Trails program, filed under the Tucker Act. The initial plaintiff characterized her suit as a class action on behalf of herself and similarly situated persons; the owners qualified as such persons. The class action had been filed before the running of the six-year statute of limitations for the Tucker Act; however, the plaintiffs who sought to join as named parties did not do so until after the limitations period had run. The Court of Federal Claims refused to permit the original plaintiff to amend her complaint for joinder of additional plaintiffs; their suits were dismissed as time barred. The Federal Circuit reversed; the merits are before the Court of Federal Claims. In the meantime, the owners filed “protective suits” under 28 U.S.C. 1346, the “Little Tucker Act” which authorizes suits against the government in federal district courts, if damages sought do not exceed $10,000. The district courts declined to stay those suits pending the appeal and dismissed them as time barred. The Federal Circuit vacated and instructed the district courts to dismiss those suits without prejudice. View "Evans v. United States" on Justia Law

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Countrywide appealed a class certification order of the bankruptcy court. Plaintiffs are former chapter 13 debtors with mortgages serviced by Countrywide. Plaintiffs claimed, among other things, that the fees Countrywide charged while plaintiffs' bankruptcy cases were still pending were unreasonable, unapproved, and undisclosed under Federal Rule of Bankruptcy Procedure 2016(a). Because the bankruptcy court's decision was not an abuse of discretion, the court affirmed its grant of class certification for plaintiff's injunctive relief claim. Because the court's precedence rejected the fail-safe class prohibition, the court concluded that the bankruptcy court did not abuse its discretion when it defined the class in the present case. Because the court concluded that Countrywide's Rule 59(e) motion for reconsideration was not based on newly discovered evidence, the court did not revisit the bankruptcy court's separate merits denial of the motion. View "Rodriguez, et al v. Countrywide Home Loans, Inc." on Justia Law

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Plaintiffs, owners of garaged lots in a subdivision, filed a complaint against the homeowners' association (HOA) alleging that the unequal treatment resulting from the HOA's assignment of parking spaces only to ungaraged lots in an amendment violated the subdivision's declaration of covenants, conditions, and restrictions (the Declaration). The circuit court determined that the amendment was invalid and ruled that the reservation of parking spaces in the common area for use solely by owners of ungaraged lots violated the Declaration. The court also found Plaintiffs were entitled to attorneys' fees. The Supreme Court affirmed in part and reversed in part, holding that the circuit court (1) did not err in ruling the Declaration requires that parking spaces in the common area be assigned equally among all lot owners; (2) did not err in ruling that the amendment was invalid; (3) erred in its award of certain compensatory damages but did not err in awarding other compensatory damages; and (4) did not err in ruling that Plaintiffs were entitled to attorneys' fees and in determining the amount of that award. Remanded for a determination of attorneys' fees incurred by Plaintiffs subsequent to the court's entry of the judgment appealed from. View "Manchester Oaks Homeowners Ass'n v. Batt" on Justia Law

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Plaintiffs filed a complaint against Defendants, alleging common law trespass. Plaintiffs argued that by not developing their land in a reasonable manner, Defendants directed and caused storm water to flow upon Plaintiffs' property so as to cause damage to the property. The trial court sustained Defendants' demurrer with prejudice, finding that Plaintiffs failed to allege facts sufficient to support a cause of action for trespass. The Supreme Court reversed, holding that the trial court erred in sustaining Defendants' demurrer, as Plaintiffs' amended complaint alleged sufficient facts to state a cause of action for common law trespass based upon a violation of the modified common law rule applicable to surface water. Remanded. View "Kurpiel v. Hicks" on Justia Law