Justia Real Estate & Property Law Opinion Summaries

Articles Posted in Alabama Supreme Court
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Jeffery and Allison Rhodes petitioned for a writ of mandamus to direct the Circuit Court to dismiss the ejectment action filed against them by the Federal National Mortgage Association ("Fannie Mae"). The Supreme Court found that the defect in the foreclosure process alleged by the Rhodeses did not implicate Fannie Mae's standing to bring the ejectment action against the Rhodeses or, in turn, the subject-matter jurisdiction of the trial court to entertain that claim. The only basis upon which the Rhodeses sought interlocutory mandamus relief from the order of the trial court denying their motion to dismiss the complaint against them was an alleged lack of subject-matter jurisdiction in the trial court as a result of the alleged lack of standing. Because the problem alleged by the Rhodeses did not implicate subject-matter jurisdiction, the Supreme Court had no basis on which to consider this petition for a writ of mandamus. View "Federal National Mortgage Association v. Rhodes" on Justia Law

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Sandra Chavers sued the City of Mobile seeking damages based on claims of negligent maintenance, continuing trespass, continuing nuisance, and inverse condemnation, all related to that part of the City's storm water-drainage system that abutted her property. After the Circuit Court entered a summary judgment in favor of the City, Chavers appealed. After careful review, the Supreme Court affirmed in part and reversed in part. Chavers repeatedly notified the City of damage to her property, and an inspector came to her home after she complained. After that visit, the inspector recommended that repairs be made to certain aspects of the City's drainage system, including an open concrete-lined ditch. The record indicated that those repairs were not made until well after Chavers had filed a notice of claim and had sued the City. The Court concluded the evidence in the Circuit Court record was sufficient to withstand a motion for a summary judgment based on the City's allegation that there was no evidence to support a claim. The Supreme Court affirmed the summary judgment as to the inverse-condemnation claim and as to the negligent-maintenance, nuisance, and trespass claims insofar as Chavers requested damages based on the cracking and uneven settling of her house. The Court reversed the summary judgment as to the negligent- maintenance, nuisance, and trespass claims insofar as Chavers requested damages for sinkholes allegedly caused by the City's negligent maintenance of the open concrete-lined ditch. The case was remanded to the circuit court for further proceedings. View "Chavers v. City of Mobile " on Justia Law

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Foundation Bank petitioned the Supreme Court for a writ of mandamus to compel the circuit court to vacate its order staying the Bank's attempted redemption in the probate court of certain property. The property at issue consisted of two parcels of contiguous property located in Autauga County, which included equipment for outdoor entertainment opportunities for the community. Emerald Falls, LLC, and its only member, Alice L. Smith owned the property originally. In 2010, Rob Riddle purchased the property at a tax sale as a result of Emerald Falls' failure to pay the ad valorem taxes on the property. Riddle assigned his interest in the property to CMC Properties, LLC. Riddle then sent notice to Working Capital No. 1, LLC, the mortgagee of the property, advising Working Capital that he had purchased the property. Riddle then filed a complaint against Emerald Falls alleging that Emerald Falls had abandoned the property and that Riddle was entitled to immediate possession. The circuit court entered a consent order, in which Emerald Falls and Riddle acknowledged that Riddle had purchased the property subject to the redemption rights of Emerald Falls, that Riddle had made improvements to the property, and that Riddle was entitled to be reimbursed for those improvements. Riddle sent written notification to the Bank, after discovering that Working Capital had assigned its mortgage on the property to the Bank as additional security for a line of credit held by the Bank. The Bank sent CMC written notice of its intent to redeem the property. CMC moved to stay the redemption, arguing that a resolution had not been reached between the parties with regard to the amount necessary to redeem the property. When the Bank attempted to redeem the property by depositing with the probate court the amount it believe to be owing, but the probate court denied the redemption. Finding that the Bank was within its right to redeem the property, the Supreme Court granted the Bank's petition and issued the writ. View "CMC Properties, LLC v. Emerald Falls, LLC" on Justia Law

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Two petitions for a writ of mandamus came before the Supreme Court. Both sought review of orders that found plaintiffs lacked of standing and, in turn, found the trial courts lacked subject-matter jurisdiction. In case no. 1111567, U.S. Bank National Association ("U.S. Bank"), sought a writ to require the Walker Circuit Court to dismiss an action filed by Walker County. In case no. 1111370, MERSCORP, Inc. ("MERSCORP"), and Mortgage Electronic Registration Systems, Inc. ("MERS") sought a writ to require the Barbour Circuit Court to dismiss an action filed by Barbour Probate Judge Nancy Robertson. Upon careful consideration of the underlying trial court cases, the Supreme Court concluded that these cases did not fall within the subject-matter-jurisdiction exception to the general rule that the Supreme Court would not engage in mandamus review of a trial court's denial of a motion to dismiss. The Court therefore denied the request for mandamus relief in both of the cases. View "Robertson v. MERSCORP, Inc." on Justia Law

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In 2004, the Baldwin County Commission passed a resolution recognizing the Fair Association's planned construction of a multimillion dollar coliseum at the Association's new fairgrounds site in Baldwin County. The Commission resolved to provide long-term funding for the Fair Association for a period of 10 years, beginning in the County's 2005 fiscal year. In 2008, the County and the Fair Association entered into a real-estate sale and purchase agreement for the conveyance of the coliseum property to the County. The purchase agreement provided that the County would be "released and relieved from paying [the Fair Association]the Seventy Five Thousand Dollars ($75,000.00), annual payment...." Following conveyance of the coliseum property, the parties entered into a lease agreement for the property. Despite the parties' agreement to discontinue the annual $75,000 payment to the Fair Association, the County made two additional payments in 2009 and in 2010. Each additional payment was presented to the County Commission as part of the "County Commission Accounts Payable Payments" and approved by the Commission along with payments to other vendors. The County asserted the two payments were made by mistake and sued the Association to recover the payments. After a hearing on the matter, the circuit court granted the Fair Association's motion for a judgment on the pleadings. The County appealed. Finding no reversible error, the Supreme Court affirmed the circuit court's judgment. View "Baldwin County v. Baldwin County Cattle & Fair Association, Inc. " on Justia Law

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The Supreme Court consolidated two cases for the purposes of this opinion. Each of the plaintiffs in these cases attended a foreclosure auction, was the successful bidder at that auction, paid money for the auctioned property, and received a foreclosure deed to the property. Each plaintiff brought an ejectment action under Alabama law, claiming good title to the property at issue and the right to eject the original debtor. Upon review, the Supreme Court concluded that the trial courts had subject-matter jurisdiction over these cases, including any issue as to the validity in fact of the plaintiffs' title to the property (this being one of the elements of proof required in an ejectment action). The Supreme Court reversed the trial court in the "Strudivant" case, but affirmed in the "Harris" case. View "Sturdivant v. BAC Home Loans Servicing, LP" on Justia Law

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GMAC Mortgage, LLC challenged the reversal of a circuit court judgment entered on GMAC Mortgage's ejectment action against Reginald and Diana Patterson. Upon review the Supreme Court reversed the appellate court's and remanded for further proceedings: "We … recognize, contrary to the holding of the Court of Civil Appeals, that, with respect to nonjudicial foreclosures through the exercise of a power of sale, there is no 'initiation of foreclosure proceedings' with the import ascribed to it. Nor does a 'foreclosure' of the mortgagor's rights occur at some midpoint in that process. We are left then with the notion, long established as it turns out, that the 'foreclosure' of a mortgagor's rights does not occur until the 'end,' when a deed divesting the mortgagor of its rights is signed and delivered to a purchaser." View "Patterson v. GMAC Mortgage, LLC " on Justia Law

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The Board of Equalization and Adjustment of Shelby County appealed a consent judgment reflecting an agreement between the Board and Shelby 39, LLC. The Board argued the circuit court lacked subject-matter jurisdiction over certain matters decided by the consent judgment. Upon review, the Supreme Court affirmed. View "Board of Equalization and Adjustment of Shelby County v. Shelby 39, LLC " on Justia Law

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In case no. 1111525, M & F Bank ("M & F") appealed a summary judgment entered in favor of First American Title Insurance Company ("FATIC") on negligence, breach-of-contract, and bad-faith-failure-to-pay claims M&F asserted against FATIC related to a title-insurance policy ("the title policy") FATIC issued M & F in connection with a mortgage loan made by M & F to a developer of property in Auburn. In case no. 1111568, FATIC appealed the grant of summary judgment entered in favor of M & F on FATIC's counterclaims asserting abuse of process, conspiracy, breach of contract, and negligence. Upon review of both cases, the Supreme Court affirmed both judgments. View "M & F Bank v. First American Title Insurance Company " on Justia Law

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The O'Neals appealed a circuit court order that granted Bama Exterminating Company, Inc.'s motion to compel arbitration. The dispute arose shortly after the O'Neals closed on the purchase of a house. As part of the loan disclosures, Bama Exterminating prepared an inspection report that the house was termite-free. The report did disclose a prior infestation at the house's carport from several years earlier. Mr. O'Neal signed the report right below the arbitration provision. Two weeks after closing, the O'Neals discovered "bugs" in the walls. They called Bama Exterminating who confirmed that the bugs were termites. The O'Neals then sued Bama Exterminating alleging negligence, wantonness and breach of contract. Bama Exterminating answered their complaint with the affirmative defense of the arbitration clause in the inspection report. The parties moved toward trial in the circuit court. When mediation failed, Bama Exterminating moved the court to compel arbitration. The O'Neals argued that the exterminator waived its right to compel arbitration by its participation in the litigation process. The Supreme Court found the exterminator did not waive its right to compel arbitration, and therefore affirmed the circuit court's decision to grant the company's motion. View "O'Neal v. Bama Exterminating Company, Inc. " on Justia Law