Justia Real Estate & Property Law Opinion Summaries

The owners (Owners) of certain property in the Village of Memphis filed with the county judge an inverse condemnation petition against the Village and sought compensation for an unlawful taking, alleging that the Village deprived them of their property by maintaining a well, a buried powerline, and water pipes on their property without an easement. An appraiser awarded damages to the Owners. The Village appealed. Thereafter, the parties entered into a settlement agreement as to compensation to be paid to the Owners. The Owners subsequently moved for attorney fees and expenses under Neb. Rev. Stat. 76-720, which mandates that a property owner be allowed attorney fees if a public entity initiates condemnation proceedings without negotiating in good faith with the owner. The district court denied the motion, concluding that the Village did not fail to engage in good faith negotiations with the Owners. The Supreme Court affirmed because the record demonstrated that the Village engaged in good faith negotiations to settle with the Owners after the Village appealed to the district court. View "Village of Memphis v. Frahm" on Justia Law

Plaintiffs granted a mortgage on their property in Massachusetts to Ameriquest Mortgage Company, which assigned its interest in the mortgage to Mortgage Electronic Registration System, Inc. (MERS). MERS later purported to assign Plaintiffs’ interest to HSBC Mortgage Services, Inc. (HSBC). HSBC subsequently began foreclosure proceedings on Plaintiffs’ property. Plaintiffs filed an eight-count complaint against HSBC, claiming the assignment was void, and therefore, HSBC never acquired the mortgage to their property and had no right to initiate foreclosure proceedings. The district court dismissed Plaintiffs’ complaint for failure to state a claim, concluding that Plaintiffs did not have standing to challenge the assignment because they were not a party to the assignment, nor were they third-party beneficiaries of the assignment. The First Circuit Court of Appeals affirmed, holding (1) under Massachusetts law, homeowners in Plaintiffs’ position have standing to challenge a prior assignment of their mortgage on the grounds that the assignment was void, but because Plaintiffs did not set forth a colorable claim that the mortgage assignment in question was void, Plaintiffs lacked standing to raise certain claims; and (2) Plaintiffs failed to state a claim for promissory estoppel with respect to a loan modification. View "Wilson v. HSBC Mortgage Servs., Inc." on Justia Law

Roger Sundsbak, George Bitz and Northern Livestock Auction appealed a district court judgment granting Craig Anderson's motion for summary judgment and denying Northern Livestock's motion to amend their counterclaim. Anderson was First Western Bank & Trust's assignee. Northern Livestock argued the district court erred as a matter of law by entering summary judgment in favor of Anderson, by failing to enter summary judgment in favor of Northern Livestock's counterclaim for specific performance and by failing to provide sufficient findings of fact and conclusions of law to allow judicial review of its decision denying Northern Livestock's cross-motion for summary judgment. Finding no reversible error, the Supreme Court affirmed. View "Anderson v. Zimbelman" on Justia Law

Downing, Thorpe & James Design, Inc. (DTJ) was an architectural firm incorporated in Colorado. Thomas Thrope, one of DTJ’s three founding principals, was allowed to practice individually as a foreign architect in Nevada, but DTJ was not allowed to practice as a foreign corporation in Nevada. In 2004, DTJ contracted with a Nevada developer to provide architectural services for a Las Vegas subdivision owned by Prima Condominiums, LLC (Prima). Prima obtained a loan from First Republic Bank in exchange for a promissory note secured by a deed of trust on one of the subdivision’s units. After Prima defaulted on its payments, DTJ recorded a notice of mechanic’s lien against the property for unpaid services. First Republic then foreclosed and purchased the property. DTJ subsequently brought an action against First Republic for lien priority and unjust enrichment. The district court granted summary judgment for First Republic. The Supreme Court affirmed, holding (1) because DTJ had failed to comply with Nevada’s statutory registration and filing provisions, it was barred from maintaining an action in Nevada for compensation for its architectural services; and (2) Thorpe’s individual status had no bearing on whether DTJ could bring or maintain an action for compensation for its services. View "DTJ Design, Inc. v. First Republic Bank" on Justia Law

At issue in this appeal was Eaton v. Fed. Nat’l Mortgage Ass’n, which held that a foreclosure by power of sale is invalid unless a foreclosing party holds the mortgage and also holds either the underlying mortgage note or acts on behalf of the note holder. In the instant case, Plaintiffs defaulted on their mortgage payments, and Mortgage Electronic Registration Systems (MERS) sought to foreclose on the property. Plaintiffs filed a complaint against MERS claiming that MERS did not have standing to initiate foreclosure proceedings because it was not the holder of the promissory note or an authorized agent of any note holder. The superior court dismissed the complaint. Before Plaintiffs’ appeal was heard, the Supreme Court decided Eaton. The Supreme Court subsequently vacated the dismissal of Plaintiffs’ claim alleging a lack of authority to foreclose, holding (1) Eaton applies to cases, such as the instant case, that preserved the issue presented in Eaton and that were pending on appeal as of June 22, 2012; and (2) therefore, Plaintiffs’ complaint should not have been dismissed for failure to state a claim on the grounds that MERS lacked the authority to foreclose. Remanded. View "Galiastro v. Mortgage Elec. Registration Sys., Inc." on Justia Law

Dan and Brenda Billingsley owned and operated Floors and More, Inc. on certain property (“West Bank Property”). Benton NWA Properties purchased the property across from the West Bank Property in 2008 (“East Bank Property”). Appellants, the Billingsleys and Floors and More, filed a second amended complaint against Benton NWA, alleging that Appellants suffered damages after the West Bank Property flooded due to the owners of the East Bank Property placing fill material in the floodplain. The parties settled, and the circuit court subsequently granted a motion to enforce the settlement agreement in favor of Benton NWA. Appellants appealed, arguing that the circuit court erred in ordering that the settlement agreement should contain a release of all liability for future flooding of property owned by the Billingsleys. The Supreme Court dismissed the appeal without prejudice because the circuit court’s order failed to contain specific factual findings in accordance with Ark. R. Civ. P. 54(b). View "Billingsley v. Benton NWA Props., LLC " on Justia Law

In 2006, Joseph and Mary Romero signed a mortgage contract with the Mortgage Electronic Registration Systems (MERS) as nominee for Equity One, Inc. They pledged their home as collateral for the loan. The Romeros alleged that Equity One urged them to refinance their home for access to the home's equity. The terms of the new loan were not an improvement over their then-current loan: the interest rate was higher and the loan amount due was higher. Despite that, the Romeros would receive a net cash payout they planned to use to pay other debts. The Romeros later became delinquent on their increased loan payments. A third party, Bank of New York (BONY), identified itself as a trustee for Popular Financial Services Mortgage, filed suit to foreclose on the Romeros' home. BONY claimed to hold the Romeros' note and mortgage with the right of enforcement. The Romeros defended by arguing that BONY lacked standing to foreclose because nothing in the complaint established how BONY held their note and mortgage, and that the contracts they signed were with Equity One. The district court found that BONY had established itself as holder of the Romeros' mortgage, and that the bank had standing to foreclose. That decision was appealed. Upon review, the Supreme Court concluded the district court erred in finding BONY's evidence demonstrated that it had standing to foreclose. Accordingly, the Court reversed the district court and remanded the case for further proceedings. View "Bank of New York v. Romero" on Justia Law

Appellant appealed the grant of a summary judgment that dismissed his claim seeking to enforce a vendee’s lien in real property. Because the appellant only addressed on appeal one of two possible grounds upon which the district court granted summary judgment, the Supreme Court affirmed the district court. View "Cuevas v. Barraza" on Justia Law

Lewis Lubar, the trustee of The Clover Trust, filed a complaint for foreclosure against Frederick Connelly. Connelly filed an answer and several affirmative defenses. The superior court granted Lubar’s motion for summary judgment and ordered the sale of Connelly’s residence. Connelly appealed. The Supreme Court vacated the judgment of foreclosure and order of sale, holding that summary judgment was improperly granted because (1) Lubar failed to include the minimum required, properly supported, facts in his statement of material facts, and therefore, Lubar failed to demonstrate that there were no genuine issues of material fact and that he was entitled to judgment as a matter of law; and (2) the record was rife with genuine issues of fact material to deciding the issues raised in this case, including Connelly’s affirmative defenses. Remanded. View "Lubar v. Connelly" on Justia Law

Over the course of several decades, Plaintiffs and their predecessors in title used a section of their neighbor’s property, now owned by Defendants. In 2011, Plaintiffs filed an action alleging that they had obtained a prescriptive easement over the section of land. The superior court granted Plaintiffs a prescriptive easement over the disputed property, finding that Plaintiffs had established all elements necessary to the cause of action. On appeal, Defendants argued, among other things, that the Supreme Court should adopt a “friendly-neighbor” exception to the presumption of adversity that arises when the other elements of a prescriptive easement have been established. The Supreme Court affirmed without reaching Defendants’ legal argument because the superior court did not find that a friendly-neighbor relationship existed during the relevant timeframe. View "Riffle v. Smith" on Justia Law