Justia Real Estate & Property Law Opinion Summaries

The Supreme Court affirmed in part and reversed in part and remanded this matter for a new trial, holding that the district court erred in proceeding to a trial without a jury on Plaintiff's causes of action for breach of contract, breach of guaranty, and unjust enrichment.Plaintiff's brought this complaint against Defendants for, among other causes of action, forcible entry and detainer. The district court granted relief on the forcible entry and detainer claim, ordering restitution. After a bench trial, the district court heard the remaining causes of action and awarded damages to Plaintiff. The Supreme Court reversed in part, holding (1) Plaintiff's remaining causes of action were legal in nature, and the issues of fact that arose thereunder entitled Defendants to a jury trial unless waived; and (2) there was no waiver of Defendants' right to a jury trial. View "132 Ventures, LLC v. Active Spine Physical Therapy, LLC" on Justia Law

The property at issue was part of a larger tract purchased by Clarence Saloom in 1953 during his marriage to Pauline Womac Saloom. The entire tract was about 80 acres and became known as the “Pine Farm.” Plaintiffs were Clarence and Pauline’s three children: Patricia Saloom, Clarence Saloom Jr., and Daniel Saloom. Pauline died in 1973, and her one-half community interest in the Pine Farm was inherited by plaintiffs. A judgment of possession recognizing them as owners of Pauline’s one-half interest in the Pine Farm, subject to a usufruct in Clarence’s favor, was signed in 1974, and recorded in the public land records of Lafayette Parish. About two years later, the Louisiana Department of Highways (now the Department of Transportation and Development (the “state”)), contacted Clarence about purchasing a piece of the Pine Farm in connection with a project to widen and improve La. Highway 339. The instrument identifies Clarence as “husband of Pauline Womac Saloom” but does not mention Pauline’s death or plaintiffs’ inheritance of her interest in the property. Plaintiffs are not identified in the act of sale, did not sign it, and apparently were unaware of it for several years. In 1985, after learning of their father’s 1976 conveyance, plaintiffs hired an attorney who informed the state that plaintiffs owned an undivided one-half interest in the property. In 2015, about twenty years after Clarence’s death, the state began constructing improvements to Highway 339 on the property. Plaintiffs again contacted the state. In a May 18, 2016 letter, plaintiffs’ counsel confirmed the same information he had relayed to the state over thirty years earlier, specifically the state did not purchase all of the property in 1976 because Clarence only owned an undivided one-half interest. The state claimed to have acquired all interests in the property at issue and declined payment for plaintiffs' interest. Plaintiffs thereafter filed suit seeking damages for inverse condemnation. The Louisiana Supreme Court reversed the court of appeal judgment reversing the trial court’s judgment and granting the state’s motion for summary judgment was vacated. Because the court of appeal did not consider the state’s remaining arguments in support of its motion and in opposition to plaintiffs’ motion for summary judgment, the case was remanded the matter to the court of appeal for consideration of the state’s remaining assignments of error. View "Saloom v. Louisiana Dept. of Transportation & Dev." on Justia Law

Detroit prohibits street vendors from selling their goods within 300 feet of sports arenas or stadiums. After the completion of Little Caesar’s Arena in 2017, the new home of the Red Wings and Pistons, Detroit refused to renew three vendor licenses for locations that fell within the 300-foot exclusion zone. The licenses had been in place since 2008. The displaced vendors sued, claiming due process violations.The Sixth Circuit affirmed summary judgment in favor of Detroit. The ordinance does not create a property interest in a vendor’s license; it never says that applicants will receive licenses for the places they choose but requires that they apply “for an approved location,” and warns that the city may “terminate[] or eliminate[]” a vendor location. Detroit retains the discretion to deny or suspend licenses to prevent a violation of the rules or to protect public safety. Even a protected property interest would not suffice to defeat Detroit’s decision. Detroit had rational reasons for denying these vendor applications: its interest in preventing congestion on its sidewalks, ensuring sidewalk safety, eliminating blight and litter, and protecting arena operators from competition. A 300-foot buffer zone around arenas is a rational way to advance Detroit’s interest in preventing congestion. View "Williams v. City of Detroit" on Justia Law

In 2010, Pacific Grove authorized “transient use of residential property for remuneration,” subject to licensing. One-year “STR” Licenses were subject to revocation for cause. In 2016, the city capped the number of short-term rental licenses citywide at 250 and established a density cap of “15 [percent] per block.” In 2017, the city prohibited more than one license per parcel and required a 55-foot buffer zone between licensed properties. The changes provided that a license could be withdrawn, suspended, or revoked for any reason and that renewal was not guaranteed. The city resolved to “sunset” certain licenses using a random lottery. In 2018, Pacific Grove voters approved Measure M, to prohibit and phase out, over an 18-month sunset period, all existing short-term rentals in residential districts, except in the “Coastal Zone,” as defined by the California Coastal Act. Measure M did not restrict short-term rentals in nonresidential districts or otherwise modify existing rules.The court of appeal affirmed the dismissal of a suit by licensees. The Plaintiffs’ economic interest in renting their homes for transient visitors was not an entitlement subject to state or federal constitutional protection. The curtailment of short-term rental licenses is related to legitimate state interests. View "Hobbs v. City of Pacific Grove" on Justia Law

Oakland County took title to the plaintiffs’ homes under the Michigan General Property Tax Act, which (after a redemption period) required the state court to enter a foreclosure judgment that vested “absolute title” to the property in the governmental entity upon payment of the amount of the tax delinquency or “its fair market value.” The entity could then sell it at a public auction. No matter what the sale price, the property’s former owner had no right to any of the proceeds.In February 2018, under the Act, Oakland County foreclosed on Hall’s home to collect a tax delinquency of $22,642; the County then conveyed the property to the City of Southfield for that price. Southfield conveyed the property for $1 to a for-profit entity, the Southfield Neighborhood Revitalization Initiative, which later sold it for $308,000. Other plaintiffs had similar experiences.The plaintiffs brought suit under 42 U.S.C. 1983, citing the Takings Clause of the Fifth Amendment. The Sixth Circuit reversed the dismissal of the suit. The “Michigan statute is not only self-dealing: it is also an aberration from some 300 years of decisions.” The government may not decline to recognize long-established interests in property as a device to take them. The County took the property without just compensation. View "Hall v. Meisner" on Justia Law

The Indiana Southwestern Railway Company sought to abandon railway easements, in which the owners had reversionary interests. The Surface Transportation Board (49 U.S.C. 10903) issued a Notice of Interim Trail Use and Abandonment (NITU). Negotiations with potential railbanking sponsors failed. Eventually, the NITU expired, Railway abandoned its easements without entering into a trail use agreement, and the landowners’ fee simple interests became unencumbered by any easements.The landowners sought compensation for an alleged taking arising under the National Trails System Act Amendments of 1983, 16 U.S.C. 1247(d), claiming that the government had permanently taken their property in April 2001, when the NITU became effective. The Claims Court found that the government had taken the property but that the taking lasted only from the date the NITU went into effect until it expired. The Federal Circuit affirmed in part. The landowner’s property was temporarily taken under the Trails Act. The NITU delayed the reversion of the owners’ interests. The Railway would have otherwise relinquished its rights to its right-of-way during the NITU period. The court remanded for a determination as to the compensation and interest to which the owners are entitled. View "Memmer v. United States" on Justia Law

The Supreme Court reversed the judgment of the court of appeal holding that a sidewalk picket purporting to protest a real estate company's business practices after the company evicted two long-term residents from their home did not constitute speech in connection with a public issue under the anti-SLAPP statute's catchall provision, holding that the sidewalk protest constituted protected activity within the meaning of Cal. Code Civ. Proc. 425.16(e)(4).The court of appeal held that the sidewalk picket at issue was beyond the scope of anti-SLAPP protection because the picket did not implicate a public issue. Rather, the court of appeal concluded that the picket concerned only a private dispute between the real estate company and the two residents. The Supreme Court reversed after applying both steps of the analysis set forth in FilmOn.com Inc v. DoubleVerify Inc., 7 Cal.5th 133 (2019), holding that the sidewalk protest furthered public discussion of the public issues it implicated. View "Geiser v. Kuhns" on Justia Law

The Supreme Court reversed the the order of the trial court granting summary judgment in favor of the Gary Housing Authority and dismissing allegations that the Housing Authority's notice of its administrative taking of 624 Broadway, LLC's property was constitutionally deficient, holding that the deficient notice was not harmless.The Housing Authority only provided notice of its taking of 624 Broadway's property by publication, despite knowing how to contact the LLC. After 624 Broadway unsuccessfully requested the Housing Authority to postpone the meeting to its appraiser could assess the property 624 Broadway brought this complaint, alleging that the Housing Authority violated its federal due process rights. The trial court granted summary judgment for the Housing Authority. The Supreme Court reversed, holding (1) the Housing Authority's constitutionally deficient notice to 624 Broadway was prejudicial; and (2) 624 Broadway was entitled to a damages hearing. View "624 Broadway, LLC v. Gary Housing Authority" on Justia Law

In 2016, the Department of Housing and Urban Development promulgated a rule prohibiting the use of lit tobacco products in HUD-subsidized public housing units and their immediate surroundings. Appellants, led by New York City Citizens Lobbying Against Smoker Harassment (C.L.A.S.H.), brought an action raising a number of statutory and constitutional challenges to the Rule. The district court rejected all of C.L.A.S.H.’s claims.The D.C. Circuit affirmed, finding that the Department did not exceed its authority in passing the rule and was not arbitrary, capricious, and an abuse of discretion. The Court similarly rejected C.L.A.S.H.’s constitutional claims under the Spending Clause and the Fourth, Fifth, and Tenth Amendments. View "NYC C.L.A.S.H., Inc. v. Marcia L. Fudge" on Justia Law

The plaintiffs filed suit under 42 U.S.C. 1983 challenging a Jersey City ordinance curtailing the ability of property owners and leaseholders to operate short-term rentals. The plaintiffs alleged that having passed an earlier zoning ordinance legalizing short-term rentals, which enticed them to invest in properties and long-term leases, the city violated their rights under the Takings Clause, the Contract Clause, and the Due Process Clauses by passing the new ordinance, which, they allege, undermined their legitimate, investment-backed expectations and injured their short-term rental businesses. The plaintiffs also sought a preliminary injunction. The district court dismissed the complaint.The Third Circuit affirmed. Not every municipal act legalizing a business activity vests the business owner with a cognizable property right. The plaintiffs’ forward-looking right to pursue their short-term rental businesses is not cognizable under the Takings Clause, but the plaintiffs articulated three cognizable property rights: use and enjoyment of their purchased properties, long-term leases, and short-term rental contracts. Because the properties may still be put to multiple economically viable uses, there has been no total taking of those “properties.” Rejecting “partial takings” claims, the court noted that the plaintiffs may have relied on the previous ordinance in deciding to invest in short-term rentals but they failed to take into account the restrictions in place in that ordinance and the city’s strong interest in regulating residential housing. View "Nekrilov v. City of Jersey City" on Justia Law