Justia Real Estate & Property Law Opinion Summaries

Articles Posted in February, 2013
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Petitioner entered into a consent order with the several Queen Anne's County officials regarding resolution of their disputes over Petitioner's proposed construction of a project in the county. The consent order terminated litigation in Kent Island I in the Anne Arundel County circuit court. Seeking invalidation of the consent order, Respondents filed suit in the Queen Anne's County circuit court (Kent Island II). On Petitioner's motion, the case was transferred to the Anne Arundel County circuit court, which granted summary judgment for Petitioner. The court of special appeals vacated the judgment, finding that venue was appropriate in the Queen Anne's County circuit court. The Supreme Court reversed, holding (1) the circuit court for Queen Anne's County did not have jurisdiction to modify or revise the consent order, a final judgment, entered by the Anne Arundel County circuit court; and (2) moreover, the Anne Arundel County circuit court was not empowered to revise or modify the judgment entered in Kent Island I in a manner sought by Respondents, as none of Respondents were a party in Kent Island I, and therefore, they could not maintain an action seeking either circuit court to exercise revisory power over the judgment in Kent Island II. View "Kent Island, LLC v. DiNapoli" on Justia Law

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Appellant and Appellees were engaged in a commercial real estate transaction. Appellant was unable to secure adequate financing to close the transaction, and Appellees retained his earnest money deposit. Appellant filed suit, and the circuit court entered summary judgment in favor of Appellees. The court of appeals affirmed. The Supreme Court reversed and remanded, holding (1) given that there was an ambiguity in the language of the contract regarding whether the earnest money clause constituted a proper liquidated damages provision, summary judgment in this case was inappropriate; (2) there was a question of genuine fact as to whether the amount of the earnest money deposit was reasonable or so unreasonably large that it was unenforceable on the grounds that public policy would deem it to be a penalty; and (3) if the deposit is deemed to be an unenforceable penalty, a constructive trust should have been established in order to protect the funds. View "Patel v. Tuttle Props., LLC" on Justia Law

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Appellee filed suit in the circuit court against Tammie and Brooksie Horn to obtain a judgment securing his right to an easement on property owned by the Horns and property owned by Appellant. Appellant was added as a defendant to the suit. The trial court granted Appellee a sixteen-foot easement over Appellant's and the Horns' property. Appellant appealed. The court of appeals dismissed the appeal because Appellant had failed to name two indispensable parties - Brooskie and Tammie Horn - in his appeal. The Supreme Court affirmed, holding (1) Brooksie and Tammy Horn were each an indispensable party to the appeal; and (2) Tammie Horn was not named a party of Appellant's appeal. View "Browning v. Preece" on Justia Law

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McGuire leased farmland in Arizona from the Colorado River Indian Tribes with approval of the Bureau of Indian Affairs. After the BIA removed a bridge that he used to access portions of the leased property, McGuire filed a Fifth Amendment claim. McGuire does not claim that removal of the bridge was itself a taking, but rather that the BIA’s alleged refusal to authorize replacement of the bridge was a taking of his property rights. The Court of Federal Claims rejected the claim. The Federal Circuit affirmed, holding that the regulatory takings claim never ripened because McGuire failed to pursue administrative remedies. Even if McGuire’s claim had ripened, he had no cognizable property interest in the bridge, which he neither possessed nor controlled because it was in a BIA right-of-way. No federal regulation gave him a property interest and he was not entitled to an easement by necessity. View "McGuire v. United States" on Justia Law

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Defendant was a nonprofit conservation corporation that owned beachfront property. Plaintiff filed a complaint seeking the superior court's recognition of its right to traverse Defendant's land to get access to its own property. Plaintiff then amended its complaint to add a claim for easement by prescription. The superior court recognized a prescriptive easement over Defendant's property. The Supreme Court vacated the judgment of the superior court, holding (1) Plaintiff's first complaint sufficiently pleaded a claim for an easement by prescription; but (2) Plaintiff did not establish by clear and convincing evidence that a prescriptive easement existed over Defendants' property. Remanded to permit the parties to supplement the existing record. View "R.I. Mobile Sportfishermen, Inc. v. Nope's Island Conservation Ass'n" on Justia Law

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In 2006, debtor Denise Codrington executed a security deed with appellant Wells Fargo that was recorded with the Clerk of the Superior Court of Fulton County on October 13, 2006. The deed provided: "[i]f one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants of each such rider shall be incorporated into ...this Security Instrument as if the rider(s) were a part of this Security Instrument." The security deed specifically identified the "ARM Rider" as being incorporated. The last page of the deed was signed by the debtor, the co-debtor (Alvina Codrington), and a notary, but the signature line for an "Unofficial Witness" was left blank. Contemporaneously recorded with the security deed were a number of other exhibits, including a "Waiver of Borrower's Rights." The waiver provided that "the provisions hereof are incorporated into and made a part of the security deed." The parties agreed that the waiver was signed by the debtor, the co-debtor, an unofficial witness, and a notary. In June 2008, the debtor filed for Chapter 7 bankruptcy. Appellee Neil Gordon, Trustee for the debtor's bankruptcy estate, commenced an adversary proceeding against Wells Fargo seeking to avoid Wells Fargo's interest in the property. Appellee asserted that because the security deed lacked the signature of an unofficial witness, it was not duly recorded and it did not provide constructive notice to a subsequent bona fide purchaser, rendering the security deed avoidable per 11 U.S.C. 544. Wells Fargo moved for summary judgment, the bankruptcy court denied the motion, and the bankruptcy court entered judgment in favor of appellee. Wells Fargo appealed to the Eleventh Circuit Court of Appeals which certified two questions to the Georgia Supreme Court: (1) whether a security deed that lacks the signature of an unofficial witness should be considered "duly filed, recorded, and indexed" as required by OCGA 44-14-33; and (2) if no, whether such a situation would nonetheless put a subsequent hypothetical bona fide purchaser on inquiry notice. Upon review, the Supreme Court answered both certified questions in the negative. View "Wells Fargo Bank, N.A. v. Gordon" on Justia Law

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Appellant Peter McGlashan and appellee Terrell Snowden own adjacent lots of real property in Ware County. McGlashan contracted to build a home on his lot and took exclusive possession of the completed home in July 2010. In March - April 2011, McGlashan discovered that his home encroached 1.11 acres onto Snowden's lot. After being informed by McGlashan of the encroachment, Snowden filed a complaint for ejectment, seeking to recover possession of his lot and the dwelling house and improvements located on it as well as damages for trespass, and seeking to be awarded fee-simple title to the home and improvements. McGlashan filed a counterclaim in which he raised an equitable claim for unjust enrichment and sought permission to remove the home and improvements from Snowden's lot. McGlashan also filed a third-party complaint against the builders of the home, seeking to recover from them the full value of McGlashan's loss should he lose the ejectment action or the cost of removing the dwelling and improvements from Snowden's lot should McGlashan have prevailed. After a hearing, the trial court granted summary judgment to Snowden. McGlashan appealed the judgment to the Supreme Court. The sole issue on appeal was whether the trial court erred when it granted summary judgment to Snowden on McGlashan's counterclaim for equitable unjust enrichment. Upon review, the Court disagreed with McGlashan's contention that the trial court erred. View "McGlashan v. Snowden" on Justia Law

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Appellant City of Suwanee appealed a judgment in favor of Appellee Settles Bridge Farm, LLC in an inverse condemnation action. Following a bench trial, the trial court found that the City of Suwanee's enactment of an amendment to its zoning ordinance was an unconstitutional regulatory taking of a large parcel of land owned by Settles Bridge and awarded Settles Bridge more than $1.8 million in damages. The City appealed, contending, inter alia, that the case was unripe for judicial review due to Settles Bridge’s failure to exhaust its administrative remedies. Upon review, the Supreme Court agreed with the City that Settles Bridge should have exhausted its administrative remedies prior to initiating litigation in this matter, and therefore reversed the judgment entered against the City. View "City of Suwanee v. Settles Bridge Farm, LLC" on Justia Law

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Plaintiffs Joe F. Watkins, Patricia M. Smith, and RE/MAX Lake Martin Properties, LLC sued Bear Brothers, Inc., ETC Lake Development, LLC ("ETC Lake"), and E.T. "Bud" Chambers, among others, asserting claims related to the construction and development of a condominium project on Lake Martin. ETC Lake and Chambers crossclaimed against Bear Brothers seeking to recover losses suffered on the project as well as indemnification for the costs of litigating the plaintiffs' action and any damages for which they might be found liable to the plaintiffs. In January 2010, Bear Brothers moved the circuit court to compel arbitration of the cross-claim against it. The circuit court did not rule on that motion. Bear Brothers renewed its motion in July 2011, and the circuit court granted the motion to compel arbitration of the cross-claim in December. Bear Brothers then moved the circuit court "to stay [the] proceedings [in the plaintiffs' action] pending the outcome of a related arbitration." After a hearing, the circuit court denied the motion to stay. Bear Brothers appealed the circuit court's order denying the motion to stay to the Supreme Court; ETC Lake and Chambers moved to dismiss the appeal. Upon review, the Supreme Court concluded that the motion at issue in this case was a motion to stay related proceedings pending the arbitration of a crossclaim between codefendants and was filed separately from the initial motion to compel arbitration of the cross-claim and subsequent to the circuit court's order granting the motion. Thus, Bear Brothers did not demonstrate a right to appeal the denial of the motion to stay at this time, and accordingly the Court dismissed the appeal as being from a nonfinal judgment. View "Bear Brothers, Inc. v. ETC Lake Development, LLC" on Justia Law

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The parties in this case entered into a real estate agreement thirteen years ago. The trial court concluded that the agreement constituted a contract for deed and that the purchasers had therefore acquired an equitable interest in the property in question. The court initiated a foreclosure on that interest, even though it had not been pled. Plaintiffs, the purchasers as found by the superior court, David and Barbara Prue, appealed the foreclosure. Defendant, the seller as found by the court, Larry Royer, appealed the court’s conclusions that the contract was an enforceable contract for deed. Upon review of the matter, the Supreme Court affirmed the court’s conclusion that the parties entered into a contract for deed and that it was enforceable, but reversed the foreclosure decree as premature. View "Prue v. Royer, Sr." on Justia Law