Justia Real Estate & Property Law Opinion Summaries
Articles Posted in Constitutional Law
74 Pinehurst LLC v. State of New York
Plaintiffs are individuals who own apartment buildings in New York City that are subject to the relevant Rent Stabilization Law (RSL). Plaintiffs appeal from a judgment of the district court dismissing their complaint pursuant to Rule 12(b)(6).The Second Circuit affirmed the district court's order rejecting Plaintiffs' contention that the New York Rent Stabilization Law was unconstitutional, both facially and as applied. The court held that Plaintiffs did not establish that application of the RSL resulted in a physical taking. The court also held that the RSL did not "go to far" in determining how private landowners can use their property. The court went on to reject Plaintiff's as-applied challenges to the RSL. View "74 Pinehurst LLC v. State of New York" on Justia Law
Kluender v. Plum Grove Investments, Inc.
The Supreme Court affirmed the judgment of the district court granting summary judgment in favor of Defendant and dismissing Plaintiff's claim that Iowa's tax-sale statute violates due process because it doesn't require personal service of a written notice that the taxpayer will lose his or her land, holding that the court did not err.Plaintiff stopped paying property taxes on a parcel of farm land he obtained, and the parcel was sold at a tax sale. Defendant paid Defendant's overdue taxes and received a certificate of purchase. When Plaintiff did not redeem the parcel Defendant sent Plaintiff notice by regular mail and certified mail to the parcel itself and to Plaintiff's last known address. After ninety days the county treasurer issued a tax sale deed to Defendant. Plaintiff brought this action claiming he did not timely receive actual notice of the tax sale proceedings and that Iowa Code 447 violates constitutional due process guarantees because it does not require effective notice. The district court granted summary judgment for Defendant. The Supreme Court affirmed, holding that Plaintiff failed to show a due process violation in this case. View "Kluender v. Plum Grove Investments, Inc." on Justia Law
Ventura29 v. City of San Buenaventura
Appellant Ventura29, LLC purchased property (the Property) in the City of San Buenaventura (City). Appellant filed a complaint against the City alleging that Appellant “is in the process of developing a multi-unit townhome project” on the Property. The first cause of action is for inverse condemnation. Appellant claims City’s modification of an approved grading plan for the Property “resulted in an unconstitutional taking for which [it] is entitled to just compensation.” The trial court entered a judgment of dismissal after the trial court had sustained a demurrer to Appellant’s second amended complaint (complaint). Appellant contends the complaint states causes of action for private nuisance, trespass, and negligence based on the City’s dumping of uncertified fill on the Property in 1977.
The Second Appellate District affirmed the judgment of dismissal. The court concluded that these causes of action are barred by the statute of limitations. The court reasoned that Appellant’s “action on the case” theory is based on its claim that the primary injury to its property was not caused by the dumping of the uncertified fill. Instead, it was caused by the consequences of the dumping. Therefore, Appellant argued, the statute of limitations on the causes of action began to run when the City Engineer made the modification. The “action on the case” theory is of no assistance to Appellant. The theory, in effect, restates the first cause of action for inverse condemnation. Appellant forfeited its right to object to the modification of the grading plan because it had complied with the modification without exhausting its administrative remedies. View "Ventura29 v. City of San Buenaventura" on Justia Law
Seneca Nation v. Hochul
Plaintiff Seneca Nation brought a lawsuit seeking relief from New York State, the New York Thruway Authority, and the Thruway Authority’s Executive Director (collectively “Defendants”) for ongoing use of an invalid easement over its tribal land. Defendants appealed the denial of their motion to dismiss. Defendants contend that the Nation is collaterally estopped from bringing this present action based on a 2004 judgment of this court and that this lawsuit is barred by the Eleventh Amendment.
The Second Circuit affirmed. The court explained that Seneca Nation does not assert property rights over land to which New York State has traditionally held the title and does not seek a declaration that the State’s laws and regulations do not apply to the area in dispute. Therefore, the quiet title exception to Ex parte Young outlined by the Court in Coeur d’Alene Tribe has no application here. Accordingly, the lawsuit falls under the Ex parte Young exception to the Eleventh Amendment. Thus, neither collateral estoppel nor the Eleventh Amendment bars the Nation from proceeding in this case. View "Seneca Nation v. Hochul" on Justia Law
Joseph Blackburn, Jr. v. Dare County
Plaintiffs own a beach house in Dare County, North Carolina. In the early days of the COVID-19 pandemic, Dare County banned nonresident property owners from entering the county. As a result, Plaintiffs could not reach their beach house for forty-five days. In response, they sued Dare County, alleging that their property was taken without compensation in violation of the Fifth Amendment. After the district court found that the ban was not a Fifth Amendment taking and dismissed Plaintiffs’ suit for failure to state a claim, Plaintiffs appealed.
The Fourth Circuit affirmed. The court held that the ban did not physically appropriate Plaintiffs’ beach house. And though it restricted their ability to use the house, compensation is not required under the ad hoc balancing test that determines the constitutionality of most use restrictions. The court further explained that Dare County’s order is neither a physical appropriation, a use restriction that renders the property valueless, nor a taking under Penn Central. The effects of the order were temporary, Plaintiffs had a chance to occupy their property before it took effect, and while the order was operative they could still exercise significant ownership rights over their property. View "Joseph Blackburn, Jr. v. Dare County" on Justia Law
Billie v. Village of Channahon
In 1993 the Village of Channahon approved the plat of a residential subdivision lying within the DuPage River Special Flood Hazard Area. The Village subsequently issued permits for the construction of houses in this subdivision, all of which experience flooded basements when the river is at high water. The current owners of these houses contend that the Village violated the Constitution either by granting the permits to build or by failing to construct dykes to keep water away.The Seventh Circuit affirmed the dismissal of their suit, noting the plaintiffs do not contend that the Village required them to build where they did or dig basements, or took any steps after the houses’ construction that made flooding worse. The Constitution establishes rights to be free of governmental interference but does not compel governmental intervention to assist persons. Even if the Village violated a local ordinance and a federal regulation, 44 C.F.R. §60.3(c)(7), by granting the applications without insisting that the houses be built higher, the Constitution does not entitle private parties to accurate enforcement of local, state, or federal law. The Village did not take anyone’s property, either by physical invasion or by regulation that prevented the land’s use. The river, which did invade their basements, is not a governmental body. Government-induced flooding of limited duration may be compensable but the -plaintiffs have not plausibly alleged that the water in their basements is “government-induced.” View "Billie v. Village of Channahon" on Justia Law
Gattineri v. Town of Lynnfield, Mass.
The First Circuit affirmed the judgment of the district court dismissing Appellants' complaint against the Town of Lynnfield, Massachusetts and several of the town's agencies and employees (collectively, Lynnfield) in this dispute over Appellants' spring water business, holding that there was no error or abuse of discretion.Appellants owned and operated the Pocahontas Spring in Lynnfield, Massachusetts, which sat on protected wetlands subject to state and local regulations. When Appellants sought to revive their spring water business and to maintain the Spring for Native Americans as a source of healing water. Appellants brought this complaint alleging that Lynnfield conspired to have neighbors lodge false complaint about Appellants' allegedly unlawful activities at the Spring and Lynnfield would respond to intimidate Appellants and interfere with their business. The First Circuit affirmed the district court's dismissal of the complaint, holding that Appellants' failure adequately to brief their two First Amendment claims proved fatal in this case. View "Gattineri v. Town of Lynnfield, Mass." on Justia Law
Nesti v. Agency of Transportation et al.
Landowner Frances Nesti appealed two civil-division orders resolving multiple claims in favor of the Vermont Agency of Transportation (VTrans). In 2006, VTrans rebuilt Route 7 in South Burlington and Shelburne. The new system directed stormwater downhill from the road in a westerly direction toward Lake Champlain. Nesti’s property abutted the lake, west of Route 7. Stormwater flowed over the depression from time to time before 2006. Nesti engaged in a series of conversations with VTrans and Department of Environmental Quality (DEQ) personnel regarding the issue beginning in 2009 or 2010. Nesti filed suit at the end of 2018, seeking damages and injunctive relief. She initially pleaded takings, trespass, and private-nuisance claims, and later added claims of ejectment and removal of lateral support. VTrans moved to dismiss all claims on the basis that each was barred by the six-year statute of limitations for civil actions, 12 V.S.A. § 511, and the doctrine of sovereign immunity. VTrans also argued the ejectment and lateral support causes of action failed to state a claim. Nesti countered that the fifteen-year statute of limitations for actions for recovery of land, 12 V.S.A. § 501, applied to each claim rather than § 511, and the continuing-tort doctrine caused her trespass and nuisance claims to continually accrue with each new runoff event, even if the claims were subject to § 511. The civil division dismissed Nesti’s takings, trespass and nuisance claims, concluding that the applicable statute of limitations was § 511, not § 501. However, the court permitted Nesti’s trespass and nuisance claims to proceed to summary judgment on the question of whether they were continuing torts, and denied the State’s motion to dismiss them under the doctrine of sovereign immunity. VTrans moved to dismiss the remaining claims, but the civil division denied the motion, but found VTrans was not equitably estopped from raising a statute-of-limitations defense. The Vermont Supreme Court concluded Nesti's claims were time-barred under the § 511, and affirmed the civil division's judgment. View "Nesti v. Agency of Transportation et al." on Justia Law
PEM Entities LLC v. County of Franklin
A real estate development company PEM Entities LLC (PEM), asserts a North Carolina county violated the Federal Constitution and state law by imposing new rules for getting water and sewage services. The district court dismissed the complaint, concluding the company lacked standing to bring its takings and due process claims, its equal protection claim was too insubstantial to raise a federal question, and the court should not exercise jurisdiction over the state law claims once the federal claims were dismissed.
The Fourth Circuit affirmed. The court explained that without a constitutionally protected property interest, PEM’s takings and due process claims fail as a matter of law. Accordingly, the court affirmed the district court’s dismissal of PEM’s takings and due process claims because they fail to state a claim on which relief can be granted. Further, the court concluded the district court was right to dismiss PEM’s equal protection claim but should have done so for failure to state a claim rather than lack of jurisdiction. Thu, having concluded the district court correctly dismissed all of PEM’s federal claims, the court saw no abuse of discretion in the district court’s decision not to exercise supplemental jurisdiction over the state law claims. View "PEM Entities LLC v. County of Franklin" on Justia Law
Adams Outdoor Advertising Limited Partnership v. City of Madison, Wisconsin
Adams Outdoor Advertising owns billboards throughout Wisconsin, including 90 in Madison. Madison’s sign-control ordinance comprehensively regulates “advertising signs,” to promote traffic safety and aesthetics. The ordinance defines an “advertising sign” as any sign advertising or directing attention to a business, service, or product offered offsite. In 1989, Madison banned the construction of new advertising signs. Existing billboards were allowed to remain but cannot be modified or reconstructed without a permit and are subject to size, height, setback, and other restrictions. In 2009, Madison prohibited digital displays; in 2017, the definition of “advertising sign” was amended to remove prior references to noncommercial speech. As amended, the term “advertising sign” is limited to off-premises signs bearing commercial messages.Following the Supreme Court’s 2015 “Reed” decision, Adams argued that any ordinance treating off-premises signs less favorably than other signs is a content-based restriction on speech and thus is unconstitutional unless it passes the high bar of strict scrutiny. The judge applied intermediate scrutiny and rejected the First Amendment challenge. The Supreme Court subsequently clarified that nothing in Reed altered its earlier precedents applying intermediate scrutiny to billboard ordinances and upholding on-/off-premises sign distinctions as ordinary content-neutral “time, place, or manner” speech restrictions. The Seventh Circuit affirmed the dismissal of the suit. View "Adams Outdoor Advertising Limited Partnership v. City of Madison, Wisconsin" on Justia Law