Justia Real Estate & Property Law Opinion Summaries

Articles Posted in July, 2013
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Defendants-Appellants Leonard and Ione Smith appealed the denial of their motion for supplemental findings or reconsideration following a trial court's granting of Plaintiff-Appellee Alliance Pipeline's petition to enter their land for examinations and surveys. Alliance entered the Smiths' land to survey for federal approval to construct a natural gas pipeline. Upon review of the matter, the Supreme Court concluded the district court did not abuse its discretion in denying the Smiths' motion. View "Alliance Pipeline L.P. v. Smith" on Justia Law

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A large sinkhole developed behind the property of T.L. Carraway. A culvert system failed, causing the hole. The culvert system drained Eastover Lake, which was maintained by the owners whose properties surrounded the Lake. Carraway filed suit against the Owners; the Owners filed third-party complaints for indemnity against the City of Jackson, alleging that the City's sewer line repairs caused the system failure and in turn, the sinkhole. The chancellor found the Owners and the City jointly and severally liable for the repair of the culvert system. All defendants appealed that decision. Upon review, the Supreme Court affirmed in part, finding no merit to the arguments made by the Owners and City. However the Court found the chancellor erred by ordering joint and several liability. The case was reversed and remanded for redetermination of defendants' respective allocations of fault as to be determined by the chancery court. View "Borne v. Estate of T. L. Carraway, Jr." on Justia Law

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ROK Builders LLC (ROK) constructed a hotel for Moultonborough and had a mechanic's lien on the property. 2010-1 SFG Venture LLC (SFG) was the assignee of the construction lender and had a mortgage on the hotel. After Moultonborough filed for bankruptcy, SFG initiated an adversary proceeding against ROK in bankruptcy court, seeking a declaration that its mortgage was senior to ROK's lien to the extent the construction lender had disbursed loan funds to ROK. ROK, in turn, asserted that its lien was senior to SFG's mortgage. The New Hampshire bankruptcy court and district court entered judgment in favor of SFG. The First Circuit Court of Appeals affirmed, holding that the bankruptcy court did not err in concluding that N.H. Rev. Stat. Ann. 447:12-a established the seniority of SFG's mortgage over ROK's mechanic's lien to the extent of the amount of money the construction lender disbursed to ROK. View "ROK Builders, LLC v. 2010-1 SFG Venture, LLC" on Justia Law

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Plaintiffs own properties surrounded by or adjacent to the Shasta-Trinity National Forest, the largest national forest in California, encompassing approximately 2.1 million acres. In 2008 the “Iron Complex” wildfires burned within the Forest. The U.S. Forest Service intentionally lit fires to reduce unburned timber that might fuel the fires, causing destruction of 1,782 acres of marketable timber on plaintiffs’ properties. Plaintiffs alleged a taking for which they should be compensated. The district court dismissed, citing the doctrine of necessity, which absolves the government from liability for any taking or destruction of property in efforts to fight fires. The Federal Circuit reversed and remanded, reasoning that not every action taken for the purpose of fire prevention is protected by the necessity doctrine. The facts pled in the complaint do not demonstrate that the Iron Complex fire created an imminent danger and an actual emergency necessitating the burning of 1,782 acres. View "TrinCo Inv. Co. v. United States" on Justia Law

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Trish Carcopa purchased a unit in Parkway Towers, a condominium, and later executed a quit claim deed conveying the unit to herself and Nicole Carcopa. Nicole subsequently executed an adjustable rate note that was a refinancing of the original purchase-money lien. The note was secured by a deed of trust that was held by Appellant at the time of this dispute. Parkway Towers brought a petition to judicially foreclose on its lien, alleging that Trish and Nicole failed to pay their assessments and dues and asserting it had a first and prior lien on the unit. The trial court found Parkway Towers' lien was superior to Appellant's deed of trust and ordered Parkway Towers' lien to be judicially foreclosed. Appellant appealed, claiming Mo. Rev. Stat. 448.3-116 was unconstitutionally vague and ambiguous with respect to its application to determine priority between a refinancing deed of trust and a delinquent condominium association assessment. The Supreme Court affirmed, holding that the statute was not vague and ambiguous and that Appellant's lien did not receive priority. View "Bd. of Managers of Parkway Towers Condo. Ass'n v. Carcopa" on Justia Law

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Plaintiff Robin Plaisted appealed a superior court order that dismissed her case against defendant Jeffrey LaBrie as untimely. The issue between the parties stemmed from the contract to sell real estate. Plaintiff wrote, and the defendant cashed, a check made out to "Jeff LaBrie" in the amount of $19,500. The check noted that it was "[f]rom R. Plaisted for full payment for 50% of 10 Nelson [Street] Property." Defendant, as president of Blue Star, signed a "Declaration of Ownership" stating that Blue Star granted to the plaintiff a fifty percent interest in the property. Two years later, Blue Star sold the property for a profit of $98,855.97 and wired the proceeds to a bank account "[f]or the benefit of Blue Star Consulting (Jeff LaBrie)." Plaintiff petitioned the trial court, seeking a declaration that she had been a one-half owner of the property, as well as an order requiring the defendant to pay her one-half of the sale proceeds. Finding no error in the trial court's determination that plaintiff's suit was time barred, the Supreme Court affirmed dismissal. View "Plaisted v. LaBrie" on Justia Law

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Plaintiff sought injunctive relief and damages against the Bank after it filed an unlawful detainer action against her in state court without giving 90 days notice to vacate the foreclosed property. At issue on appeal was whether the Protecting Tenants at Foreclosure Act of 2009 (PTFA), Pub. L. No. 111-22, 701-04, 123 Stat. 1632, 1660-62, provided a private right of action. The court concluded that dismissal of the state unlawful detainer proceedings did not moot plaintiff's claim; the court agreed with the Third Circuit that the regulation of eviction proceedings "does not implicate an important state interest" under Younger v. Harris; but plaintiff had no cognizable interest under the PTFA. Accordingly, the court affirmed the district court's dismissal of the complaint. View "Logan v. U.S. Bank" on Justia Law

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Plaintiff, a subcontractor, filed an action to enforce a mechanic's lien on certain land. More than a year later, Defendants, acting as principal debtor and the surety, executed and recorded a surety bond to dissolve the lien pursuant to Mass. Gen. Laws. ch. 254, 14. The bond named Plaintiff as an obligee. Plaintiff subsequently amended its complaint to include Defendants as defendants in the underlying complaint and to add a claim to enforce the bond against them. At issue was whether Plaintiff's amendment of its original complaint constituted timely commencement of its action to enforce a bond pursuant to section 14. The lower court found that although Plaintiff had not filed the amended complaint within ninety days of receipt of notice of the bond, service of its motion to amend on Defendants within that ninety-day period satisfied the section 14 requirement that a claimant have "commenced" a civil action within that period in order to enforce the bond. The Supreme Court affirmed, holding that the commencement requirement in section 14 was satisfied on the facts of this case because the amendment to the complaint related back to the date on which Plaintiff filed its original action against Corporation. View "Nes Rentals v. Me. Drilling & Blasting, Inc." on Justia Law

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Plaintiffs, Minnesota homeowners represented by the same counsel, brought thirteen separate claims against defendants, nearly all of which rested on a "show me the note" theory. The district court granted defendants' motion to dismiss nearly all of the claims and sua sponte sanctioned counsel, awarding attorney fees to defendants. The court affirmed, concluding that the district court had diversity jurisdiction as the claims against the sole nondiverse defendant lacked a reasonable basis in fact and law; plaintiffs failed to state a plausible claim for relief sufficient to survive a motion to dismiss; the "show me the note" theory had been repeatedly rejected by the Minnesota Supreme Court and this court applying Minnesota law; and the district court did not abuse its discretion in imposing sanctions against counsel under Rule 11 where, at the very least, counsel had lacked a frivolous basis for appeal. View "Welk, et al. v. Ally Financial,Inc., et al." on Justia Law

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Plaintiffs refinanced their home through Lender. The monthly payment on the loan was $600 greater than Plaintiffs' total monthly income. After the mortgage was funded, it was sold and assigned to Bank. Servicer serviced the loan. After Plaintiffs defaulted on the loan, Bank foreclosed on the mortgage. Plaintiffs subsequently brought this action asserting violations of the Consumer Protection Act, the Predatory Home Loan Practices Act, and the Borrower's Interest Act, and asserting that the loan was unenforceable because it was unconscionable. A superior court judge granted summary judgment to Defendants, Bank and Servicer, on all claims based on the ground that Defendants, as assignees, had no liability for the acts of Lender. The Supreme Court (1) reversed summary judgment in favor of Bank, holding that Bank was not shielded from liability as a matter of law by virtue of its status as an assignee and that Bank failed to establish the absence of material issues of disputed fact entitling it to judgment on any individual claim; and (2) affirmed summary judgment in favor of Servicer because Servicer was not shown to be an assignee and Plaintiffs offered no alternative basis on which Servicer might be held liable. Remanded. View "Drakopoulos v. U.S. Bank Nat'l Ass'n" on Justia Law