Justia Real Estate & Property Law Opinion Summaries

Articles Posted in June, 2013
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Appellees, the Rubins, requested that the district court issue a Writ of Garnishment against the assets of Hamas and HLF after obtaining a judgment against Hamas for damages resulting from a terrorist attack in an outdoor pedestrian mall in Jerusalem. The district court executed the writ but the Rubins could not execute against HLF's assets because those assets had been restrained under 21 U.S.C. 853 to preserve their availability for criminal forfeiture proceedings. The district court subsequently denied the government's motion to dismiss the Rubins' third-party petition under section 853(n) to assert their interests in the restrained assets and vacated the preliminary order of forfeiture. The district court held that the Terrorism Risk Insurance Act of 2002 (TRIA), Pub. L. No. 107-297, title II, 201, 116 Stat. 2337, allowed the Rubins to execute against HLF's assets not withstanding the government's forfeiture proceedings. The court reversed, holding that section 853(n) did not provide the Rubins with a basis to prevail in the ancillary proceeding; TRIA did not provide the Rubins a basis to assert their interest in the forfeited property; TRIA did not trump the criminal forfeiture statute; and the in custodia legis doctrine did not preclude the district court's in personam jurisdiction over HLF. View "United States v. Holy Land Foundation for Relief, et al." on Justia Law

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At issue in this case was two properties consisting of neighboring condominiums. In 2005, Defendants placed barriers in Plaintiffs' claimed right of way, which impeded vehicle access and foot traffic. After Defendants refused to remove the barrier, Plaintiffs sued Defendants, alleging that, according to a condominium declaration, Plaintiffs had an express easement over the right of way, or, in the alternative, they had an implied or prescriptive easement over the right of way. After a trial, the trial justice ruled in favor of Defendants. The Supreme Court (1) vacated the judgment of the superior court with respect to its determination that Defendants did not have a claim of an implied easement by reservation over the right of way, as the trial justice did not make any findings or legal conclusions with respect to whether Plaintiffs had an implied easement by grant over the claimed right of way; and (2) affirmed in all other respects. Remanded. View "Wellington Condo. Ass'n v. Wellington Cove Condo. Ass'n" on Justia Law

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Plaintiff was a condominium unit owner in a condominium community comprised of three sub-condominium residential areas. Plaintiff filed an application for approval to demolish his existing unit and rebuild a larger unit. After America Condominium Association asserted that Plaintiff did not own the land on which he sought to expand, Plaintiff filed a complaint against America seeking a declaratory judgment that he had sufficient interest to file an application regarding the expansion of his unit onto adjoining land. Plaintiff then brought an action against the larger condominium association and the other sub-condominium associations in the community, essentially parroting the allegations set forth in the America action. In both actions, the hearing justice concluded that Plaintiff had standing to file his application for the expansion of his unit but that Plaintiff's proposed expansion required the unanimous consent of the other 153 unit owners. The Supreme Court primarily affirmed, holding (1) Plaintiff had standing to file the application for expansion; but (2) pursuant to the Condominium Act, the unanimous consent of all of the unit owners must be obtained before Plaintiff could carry out his unit expansion. View "Sisto v. Am. Condo. Ass'n" on Justia Law

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Plaintiff Kane Properties, LLC contracted to purchase a piece of property in Hoboken zoned for industrial use. It applied for the necessary variances to construct a residential building. The Zoning Board granted the requested variances. The principal objector to plaintiff's proposal, Skyline Condominimum Association, Inc. appealed to the Hoboken City Council. Before the hearing, Skyline's attorney accepted an appointment as the City Council's attorney. Plaintiff objected to the attorney's participation in the appeal, and the attorney recused himself. Council reversed the zoning board's decision. On appeal, Plaintiff argued that the attorney's involvement in the Skyline appeal in spite of a conflict of interest had irreparably tainted the City Council’s decision. The trial court affirmed the City Council’s decision. Plaintiff then appealed to the Appellate Division. After applying an appearance-of-impropriety standard and finding a conflict of interest, the panel concluded that the attorney's participation in the appeal tainted the City Council’s action. The matter was remanded to the City Council for a proceeding de novo. But Plaintiff filed a petition for certification to the Supreme Court, arguing that a remand back to the City Council was inappropriate. Upon review of the matter, the Supreme Court set aside the City Council's decision because the Court found it was tainted by its new attorney's conflict of interest. View "Kane Properties, LLC v. City of Hoboken" on Justia Law

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Buyers bought a home from Sellers after Sellers completed Indiana's statutory disclosure forms attesting to the home's condition. Buyers subsequently discovered costly defects in the home. Buyers sued Sellers, alleging fraudulent misrepresentation. The trial court awarded damages to Plaintiffs. At issue on appeal was whether Indiana's disclosure statutes created a claim for fraudulent misrepresentation or if the common law still applied and the principle of caveat emptor precluded recovery on the action. The Supreme Court reversed, holding (1) the legislature's adoption of the disclosure statutes abrogated the state's common law jurisprudence falling within their scope, and therefore, the disclosure statues create liability for sellers when they fail to truthfully disclose the condition of features of their property that must be disclosed to the buyer; and (2) the district court erred in finding that Sellers were liable to Buyers because the defects in the home "should have been obvious" to Sellers, as Sellers' "actual knowledge" of the defects was not established. Remanded. View "Johnson v. Wysocki" on Justia Law

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The issue before the Supreme Court in this case centered on two water rights cases involving Raftopoulos Brothers (Raftopoulos) and Vermillion Ranch Limited Partnership (Vermillion). In Case No. 11SA86, the Court vacated the portions of the water court’s order interpreting the phrase "all other beneficial uses" in a 1974 change decree regarding Raftopoulos’s absolute water rights and whether Raftopoulos had abandoned any right to use the decreed water for commercial or industrial purposes. The Court reversed the portion of the water court’s order decreeing Raftopoulos’s requested new conditional water storage rights to the extent the decree permits the water to be used for industrial and commercial purposes. In Case No. 11SA124, the Court reversed the water court’s order granting Vermillion’s application for a finding of reasonable diligence for previously decreed conditional water storage rights and granting Vermillion’s application for a new conditional water storage right. View "Vermillion Ranch Limited Partnership v. Raftopoulos Brothers" on Justia Law

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Plaintiff Dennis Shaw and First Horizon Home Loan Corporation challenged an appellate court's ruling that "constructive fraud" was sufficient to void a request for release of a deed of trust, arguing that actual fraud is required under CRS 38-39-102(8). The Supreme Court reversed, concluding that the statute creates a narrow exception that voids the public trustee’s release of a deed of trust only when proof of actual fraud is demonstrated by a preponderance of the evidence. View "Shaw v. 17 West Mill St." on Justia Law

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The Supreme Court considered a reformulated certified question from the U.S. Court of Appeals for the Tenth Circuit: whether Colorado’s premises liability statute applied as a matter of law only to activities and circumstances directly or inherently are related to the land. The Supreme Court held that the statute is not restricted solely to activities and circumstances that are directly or inherently related to the land. Instead, the Court held that the premises liability statute applied to conditions, activities, and circumstances on the property that the landowner is liable for in its legal capacity as a landowner. View "Larrieu v. Best Buy Stores, L.P." on Justia Law

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The Supreme Court affirmed the district court’s order granting a new trial on plaintiffs' claim for breach of the implied warranty of habitability and its denial of defendants' request for attorney fees at trial. Plaintiffs Shawn and Shellee Goodspeed purchased a home from Robert and Jorja Shippen via warranty deed. After the basement of the home flooded, the Goodspeeds filed suit against the Shippens, alleging breach of the implied warranty of habitability. The district court denied a request for a jury instruction on the requirements for disclaiming the implied warranty of habitability and the case went to trial. The jury returned a verdict in favor of the Shippens, and the Goodspeeds moved for judgment notwithstanding the verdict or, alternatively, for a new trial, arguing the disclaimer of the implied warranty of habitability in the purchase and sale agreement was ineffective because it was not conspicuous. The district court granted a new trial after determining it had excluded the disclaimer instruction based upon its incorrect belief that the Goodspeeds had actual knowledge of the disclaimer. View "Goodspeed v. Shippen" on Justia Law

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In 1972 Koontz bought 14.9 undeveloped acres. Florida subsequently enacted the 1972 Water Resources Act, requiring a permit with conditions to ensure that construction will not be harm water resources and the 1984 Henderson Wetlands Protection Act, making it illegal to “dredge or fill in, on, or over surface waters” without a wetlands permit. The District with jurisdiction over the Koontz land requires that applicants wishing to build on wetlands offset environmental damage by creating, enhancing, or preserving wetlands elsewhere. Koontz decided to develop 3.7-acres. In 1994 he proposed to raise a section of his land to make it suitable for building and installing a stormwater pond. To mitigate environmental effects, Koontz offered to foreclose development of 11 acres by deeding to the District a conservation easement. The District rejected Koontz’s proposal and indicated that it would approve construction only if he reduced the size of his development and deeded a conservation easement on the larger remaining property or hired contractors to improve District wetlands miles away. Koontz sued under a state law that provides damages for agency action that constitutes a taking without just compensation. The trial court found the District’s actions unlawful under the requirements of Nollan v. California Coastal Commission and Dolan v. City of Tigard, that the government may not condition permit approval on the owner’s relinquishment of a portion of his property unless there is a nexus and rough proportionality between the demand and the effects of the proposed use. The court of appeal affirmed, but the Florida Supreme Court reversed. The U.S. Supreme Court reversed and remanded, holding that a governmental demand for property from a land-use permit applicant must satisfy the Nollan/Dolan requirements even when it denies the permit. The Nollan/Dolan standard reflects the danger of governmental coercion in the land-use permitting context while accommodating the legitimate need to offset public costs of development through land use exactions. It makes no difference that the Koontz property was not actually taken. It does not matter that the District might have been able to deny Koontz’s application outright without giving him the option of securing a permit by agreeing to spend money improving public lands. Even a demand for money from a land-use permit applicant must satisfy the Nollan/Dolan requirements; there is a direct link between the demand and a specific parcel of real property. The Court rejected arguments that applying Nollan/Dolan scrutiny to money exactions will leave no principled way of distinguishing impermissible land-use exactions from property taxes, stating that its holding “will not work a revolution in land use law or unduly limit the discretion of local authorities to implement sensible land use regulations.” View "Koontz v. St. Johns River Water Mgmt. Dist." on Justia Law