Justia Real Estate & Property Law Opinion Summaries
Articles Posted in Constitutional Law
Ark. Teacher Ret. Sys. v. Short
In 2009, the Arkansas Teacher Retirement System (ATRS) petitioned the county court seeking a determination that a shopping center it owned was exempt from ad valorem taxation. The county court rejected ATRS's contention that the property qualified for an exemption. ATRS appealed. The circuit court held that the shopping center was not exempt under article 16, section 5 of the Arkansas Constitution because the property was not used exclusively for public purposes. ATRS appealed, arguing the shopping center is public property used exclusively for public purposes and therefore is exempt from taxation under the constitution. The Supreme Court affirmed, holding the circuit court's decision was not clearly erroneous. The evidence was undisputed that the property in question is a retail shopping center that is leased to private business. As such, the ATRS failed to demonstrate the structure is used exclusively for public purposes.
State v. Petropoulos
This action arose out of condemnation proceedings initiated by the State after the landowners and the State could not agree on the amount of compensation for a .33 acres out of a 3.5 acre tract of land fronting U.S. Highway 290 in Travis County. At issue was whether the trial court erred by only charging the jury to find the pre-taking value of the tract when there was evidence the taking did not cause damage to the remainder and whether there was any evidence the remainder suffered compensable damages. The court concluded that the trial court committed charge error by inquiring whether the landowner suffered damages to the remainder. The court also held that there was no evidence the taking caused compensable damages to the remainder and based on the jury findings, the value of the tract taken could be determined. Accordingly, the court reversed the court of appeals judgment and remanded to the trial court for rendition of judgment.
MATL LLP v. Salois
Appellant appealed from an order of the district court dismissing its complaint for condemnation and entering judgment in favor of appellee. At issue was whether the district court erred in issuing an order concluding that appellant did not possess the power of eminent domain, either express or implied, and it had no authority to take the private property of a nonconsenting landowner. The court concluded that HB 198 provided appellant authority to pursue eminent domain proceedings and that HB 198 explicitly codified eminent domain authority into the Major Facility Siting Act ("Act"), Title 75, chapter 20. The court held that HB 198 retroactively applied to appellant's certificate issued pursuant to the Act and the explicit language of HB 198 was in conflict with the district court's order. Accordingly, the court reversed the order dismissing appellant's complaint and remanded for further proceedings.
Steele v. City of Shelley
Petitioner-Appellant Roger Steele and several residents appealed a district court order that dismissed their claim that the City of Shelley (City) illegally annexed land in Bingham County known as "Kelley Acres." The district court found that there was no statutory authorization for the district court's review of the annexation. On appeal to the Supreme Court, Appellants argued that the annexation was "arbitrary and capricious" and procedurally defective. Upon careful consideration of the arguments and the applicable legal authority, the Supreme Court found that there was indeed, no statutory authority for judicial review of the annexation. Furthermore, the Court found substantial evidence that supported the City's annexation of Kelley Acres. The Court affirmed the lower court's decision.
Klemm v. American Transmission Co., LLC
This case involved litigation expenses under Wis. Stat. 32.28(3)(d) in a condemnation proceeding between defendant and plaintiffs, the condemnees, when defendant initiated condemnation proceedings against the condemnees under Wis. Stat. 32.06 for an easement to construct an electrical transmission line across the condemnees' property. At issue was whether litigation expenses should be awarded when an appeal was taken from a negotiated price recorded in a certificate of compensation. The court held that an owner who accepted the negotiated price under section 32.06(2a), timely appealed that price, and subsequently received an award from the county condemnation commission that exceeded the thresholds under section 32.28, should be awarded litigation expenses. The court also considered, but was not persuaded by various other arguments defendant made criticizing the circuit court's and the court's interpretation of section 32.06(a) and section 32.28(3)(d) that the condemnees in the present case should be awarded litigation expenses.
Boston Edison Co. v. Massachusetts Water Resources Authority
Boston Edison Company ("Boston Edison") brought an action under G.L. c. 79, 12 to recover damages caused by four eminent domain takings by the Massachusetts Water Resources Authority ("MWRA") on property known as the Fore River Station ("site") in the town of Weymouth and city of Quincy. The parties raised issues related to the reasonable probability of residential development on the north parcel of land; limiting damages on the south parcel of land to those caused by the actual taking or the public project for which the taking was made; and the calculation of interest. The court held that a rational jury, viewing the evidence in the light most favorable to Boston Edison, reasonably could have found that it was reasonably probable that the north parcel could be rezoned for residential use and developed even though it was in a designated port area. The court also held that damages arising from a planned taking were not compensable and therefore, the jury must distinguish between damages arising from the actual taking and those arising from the planned, but unrealized, taking. The court further held that there was no error in the calculation of prejudgment or postjudgment interest where the court failed to see what basis remained for claiming the preamendment rate of interest when Boston waived any constitutional challenge to the statutory rate of interest. Accordingly, the court affirmed the rulings and remanded for further action consistent with the opinion and the judge's allowance of the motion for remittur.
Wylie v. Idaho Bd of Transportation
Plaintiff-Appellant James Wylie owned a subdivision in the City of Meridian. He sought a declaration from the district court that the City and the Idaho Transportation Department improperly denied access for his property directly onto a nearby state highway. The district court dismissed Plaintiffâs complaint on the ground that he failed to present a âjusticiable issue.â The Supreme Courtâs review of the record revealed that Plaintiff acquired the land in question subject to certain conditions recorded in the plat for the subdivision. The plat listed plainly that âthe subject property does have frontage along [the state highway] but . . . not direct access [to the highway].â The Court reasoned that Plaintiff failed to bring an issue for the Court to resolve since Plaintiffâs recorded deed clearly listed the frontage road as access to his property. Therefore, the Court reasoned that the case was ânon-justiciableâ and affirmed the lower courtâs decision to dismiss Plaintiffâs case.
Downing/Salt Pond Partners, L.P. v. RI and Providence Plantations
Pursuant to a permit issued by the Rhode Island Coastal Resources Management Council (CRMC), the developer built 26 of 79 planned homes and installed infrastructure between 1992 and 2007. The Rhode Island Historic Preservation and Heritage Commission (HPHC) became interested in the site and recommended withdrawal of the permit or requiring a complete archaeological data recovery project. In 2009, after informal negotiations, the developer notified the HPHC that it would resume construction absent some response from the agencies. The developer resumed construction and a stop-work order issued. CRMC hearings are ongoing. The district court dismissed the developer's takings claims as unripe, rejecting an argument that the state litigation requirement was excused; that argument was foreclosed by a binding First Circuit holding that Rhode Island's procedures were available and adequate. The First Circuit affirmed, holding that the developer did not prove that state remedies were unavailable or inadequate.
South Dakota Department of Transportation v. Clark (SD)
The South Dakota Department of Transportation (DOT) obtained title to land once owned by Defendants Philip Clark, P&J Enterprises, LLC and Hansen Manufacturing Corporation by eminent domain. The jury determined the amount of compensation to award for the taking. The trial court subsequently awarded prejudgment interest and attorneyâs fees to Defendants. The DOT challenged the award of attorneyâs fees. The Supreme Court found that the plain language of the applicable state law allows for an award of prejudgment interest and attorneyâs fees in connection with eminent domain takings. Accordingly, the Court affirmed the trial courtâs decision.
Kathy Heffernan, et al v. Missoula City Council, et al
The Missoula City Counsel, the City of Missoula, and the Mayor, (collectively "City") and Muth-Hilberry, LLC ("developer") appealed a district court determination that found that the City was arbitrary and capricious in approving a zoning and preliminary plat for a subdivision known as Sonata Park located in Rattlesnake Valley, Montana. At issue was whether neighbors, several parties opposed to the subdivision, and the North Duncan Drive Neighborhood Association, Inc. ("Association") had standing. Also at issue was whether the district court erred in striking affidavits filed by the developer and the City in connection with their motions for summary judgment. Further at issue was whether the 1989 Sunshine Agreement between the City and the developer's predecessor in interest superseded the City's growth policy. Finally at issue was whether the City's decision in Sonata Park was arbitrary, capricious, or unlawful. The court held that the neighbors had standing to sue in their own right and that the Association had associational standing to proceed on behalf of its members. The court also held that any error made by the district court in granting the neighbor's motion to strike the developer's affidavit was harmless. The court further held that the Sunlight Agreement did not supersede the City's growth policy where the Sunlight Agreement could be void ab initio and did not appear to guarantee certain density. The court finally held that substantial compliance was still valid and that a government body must substantially comply with its growth policy in making zoning decisions and that the City's decision to approve Sonata Park was arbitrary, capricious, and unlawful.