Justia Real Estate & Property Law Opinion Summaries

A group of landowners in Summit County, Utah, challenged a proposed ballot measure to incorporate a new municipality called West Hills. The sponsor of the incorporation, Derek Anderson, had modified the proposed boundaries after the statutory deadline for landowners to request exclusion from the new municipality had passed. As a result, certain landowners whose properties were added late were unable to seek exclusion, even though similarly situated landowners had previously been allowed to do so.The landowners filed suit in the Third District Court, Silver Summit, arguing that the Municipal Incorporation Code, as applied, violated the Uniform Operation of Laws Clause of the Utah Constitution. The district court granted summary judgment for the landowners, finding the code unconstitutional as applied and invalidating the certification of the West Hills ballot measure. The court determined that the plaintiffs were “specified landowners” who would have been entitled to exclusion if their properties had been added earlier, and that the legislature’s interest in certainty did not justify the disparate treatment.The sponsor then filed an emergency petition for extraordinary relief with the Supreme Court of the State of Utah, seeking to overturn the district court’s order before the upcoming election. The Utah Supreme Court, after expedited briefing and oral argument, denied the petition for extraordinary relief. The court held that, under the unique circumstances, it would not exercise its discretion to issue a writ due to the potential disruption and confusion in the election process, including the risk of voter suppression and interference with electioneering efforts. The denial was without prejudice to the sponsor’s ability to pursue an appeal or interlocutory review of the district court’s order. View "Anderson v. Bates" on Justia Law

The plaintiff resided at an apartment complex with his son, who was arrested for aggravated armed robbery by the local police department. After the arrest, the police informed the apartment management, which then evicted both the plaintiff and his son based on a lease provision prohibiting criminal conduct. The plaintiff sought information about his son’s arrest from the city and police department under the Texas Public Information Act, but his request was denied after the city consulted the Texas Attorney General and invoked a law-enforcement exception.In the United States District Court for the Southern District of Texas, the plaintiff filed suit against the city, the police department, the apartment complex, a debt collection agency, and the Texas Attorney General, alleging violations of the U.S. Constitution, the Fair Debt Collection Practices Act, and Texas law. All defendants either appeared, filed answers, or moved to dismiss. The plaintiff moved for default judgment against each defendant, but the district court denied those motions and granted the defendants’ motions to dismiss. On appeal, the plaintiff only challenged the denial of default judgment, as he did not brief arguments regarding the dismissals and thus forfeited them.The United States Court of Appeals for the Fifth Circuit reviewed only the denial of default judgment for abuse of discretion. The court held that default judgment was not warranted because the city, police department, and debt collector had all appeared or answered, and the Attorney General had not been properly served. The court also found that arguments regarding attorney conflict and judicial bias were either forfeited or unsupported. The Fifth Circuit affirmed the district court’s denial of default judgment. View "Clark v. City of Pasadena" on Justia Law

Legacy Housing Corporation purchased several hundred vacant lots in Horseshoe Bay, Texas, intending to develop manufactured housing. The lots were subject to zoning restrictions, including a cap on speculative housing permits, contractor requirements, utility hookup fees, and setback rules. Legacy also acquired adjacent land in the city’s extraterritorial jurisdiction (ETJ) to build a road connecting the lots to a nearby highway, but this land was restricted to agricultural and residential use. Despite these limitations, Legacy constructed a road over the ETJ property, a greenbelt strip, and some development lots, advertising it as a shortcut and access to planned amenities. The City and other defendants opposed the road, citing violations of existing restrictions. Legacy alleged a conspiracy among the City, the property owners’ association (POA), and developers to prevent its development.The United States District Court for the Western District of Texas addressed multiple claims and counterclaims. It denied Legacy’s motion to dismiss the City’s counterclaims, granted the City’s motion to dismiss most claims against it, and granted summary judgment to all defendants on the remaining claims, including regulatory takings, Section 1983 violations, civil conspiracy, breach of fiduciary duty, negligence, and a strips and gores claim. Legacy’s own motion for partial summary judgment was denied, and final judgment was entered.On appeal, the United States Court of Appeals for the Fifth Circuit affirmed the district court’s rulings, with one modification. The appellate court held that Legacy’s regulatory takings claim regarding the two-permit cap was not prudentially ripe and should be dismissed without prejudice. The court otherwise affirmed summary judgment for the defendants, finding no genuine dispute of material fact and concluding that Legacy did not have property rights to build the road, nor did the defendants breach any legal duties or restrictive covenants. View "Legacy Hsing v. City of Horseshoe Bay" on Justia Law

Gulfstream Café, Inc. owns a restaurant within the Marlin Quay Planned Development (PD) in Georgetown County, South Carolina. The PD includes a shared parking lot, with Gulfstream holding a nonexclusive easement for sixty-two spaces and owning seventeen additional spaces. In 2016, Palmetto Industrial Development, LLC purchased the marina and parking lot, demolished the existing structures, and sought approval from the Georgetown County Council to build a new restaurant. After several iterations and legal challenges, the Council approved a final plan (Ordinance 2018-40) for the new restaurant, which increased evening parking demand and allegedly harmed Gulfstream’s business.Previously, Gulfstream challenged the approval process and the impact on its easement rights in the Circuit Court for Georgetown County. The court held a bench trial and ruled in favor of the County, the County Council, and Councilmember Steve Goggans on all claims, including substantive and procedural due process, takings, inverse condemnation, and alleged impropriety in the approval process. Gulfstream appealed the decision.The Supreme Court of South Carolina reviewed the case, applying a limited scope of review for factual findings and de novo review for legal and constitutional issues. The Court held that Gulfstream’s easement was nonexclusive and had not been deprived by the ordinance, that the County’s actions had a rational basis, and that the ordinance did not constitute a per se or regulatory taking under the Penn Central test. The Court also found no procedural due process violation, as Gulfstream received notice and an opportunity to be heard, and determined that Councilmember Goggans’ prior involvement did not invalidate the ordinance. The Supreme Court of South Carolina affirmed the circuit court’s judgment in all respects. View "The Gulfstream Café v. Georgetown County" on Justia Law

In this case, the owners of a residential property in Fayetteville, Arkansas, sought to rent their home as a short-term rental when not in residence. The City of Fayetteville had enacted an ordinance regulating short-term rentals, requiring a license for all such properties and a conditional-use permit for certain types in residential zones. The ordinance also imposed a cap on the number of these rentals. After applying for a conditional-use permit, the property owners’ application was denied by the Fayetteville Planning Commission, which found the proposed rental incompatible with the neighborhood due to the number of similar rentals nearby.Following the denial, the property owners attempted to appeal to the Fayetteville City Council, but their appeal was not sponsored by the required number of council members. They then filed an administrative appeal in the Washington County Circuit Court, along with claims for declaratory and constitutional relief. They also sought a preliminary injunction to prevent enforcement of the ordinance while their case was pending. The City moved for summary judgment, arguing the administrative appeal was untimely. The circuit court denied the preliminary injunction and dismissed the administrative appeal for lack of jurisdiction, but left the constitutional claims pending.The Supreme Court of Arkansas reviewed only the denial of the preliminary injunction, as the dismissal of the administrative appeal was not properly before it due to the absence of a final, appealable order. The court held that the circuit court did not abuse its discretion in denying the preliminary injunction, finding no irreparable harm and no likelihood of success on the merits at this stage. The denial of the preliminary injunction was affirmed, and the appeal of the administrative dismissal was dismissed without prejudice for lack of jurisdiction. View "HAUSE v. CITY OF FAYETTEVILLE, ARKANSAS; THE FAYETTEVILLE PLANNING COMMISSION" on Justia Law

Owners of developed commercial and residential properties in Athens-Clarke County challenged the county’s stormwater utility charge, arguing that it was an unconstitutional tax rather than a fee. The charge, established by county ordinances in 2004, funds stormwater management services required by federal law, with the amount assessed based on impervious surface area and land-use classification. The ordinance exempts certain properties, such as public roads and sidewalks, and offers credits for on-site stormwater management. The funds collected are used for flood prevention, pollution minimization, and compliance with federal regulations.Previously, the Superior Court of Athens-Clarke County granted summary judgment to the county, finding that the stormwater utility charge was a fee, not a tax, and thus not subject to the Georgia Constitution’s taxation uniformity provision. This decision relied on the Georgia Supreme Court’s earlier ruling in Homewood Village, LLC v. Unified Government of Athens-Clarke County, which had addressed the same ordinance and held it imposed a fee rather than a tax. The appellants also pursued related claims in federal court, but those were dismissed on abstention grounds.On appeal, the Supreme Court of Georgia affirmed the trial court’s decision. The court held that its prior decision in Homewood Village, LLC v. Unified Government of Athens-Clarke County controlled, reaffirming that the stormwater utility charge is a fee and not a tax, and therefore the uniformity provision does not apply. The court also rejected the appellants’ arguments that the charge constituted an unconstitutional taking under the Georgia and United States Constitutions, finding no basis for such a claim. Finally, the court found that the trial court had properly applied the summary judgment standard and had not improperly resolved factual disputes. The judgment in favor of the county was affirmed. View "HOMEWOOD ASSOCIATES INC. v. UNIFIED GOVERNMENT OF ATHENS-CLARKE COUNTY" on Justia Law

A billboard company sought to erect a sign in a Michigan township, but its application was denied because the proposed billboard did not comply with local height and size restrictions. Instead of appealing the denial or seeking a variance, the company filed a federal lawsuit challenging the township’s sign ordinance on First Amendment grounds, including claims that the ordinance imposed content-based restrictions, constituted an unconstitutional prior restraint, and was unconstitutionally vague. The company did not challenge the height and size restrictions themselves. The township’s ordinance only allowed billboards in certain industrial zones adjacent to interstate freeways, but, according to the company, no such zones existed in the township.The United States District Court for the Eastern District of Michigan granted summary judgment to the township, finding the company lacked standing because its alleged injuries were not caused by the challenged provisions and would not be redressed by a favorable decision. The United States Court of Appeals for the Sixth Circuit affirmed, holding that the company failed to meet the requirements for standing on any of its claims.Subsequently, the company filed a new lawsuit in the same district court, again alleging that the ordinance was a prior restraint on speech. The district court dismissed the suit, holding that res judicata (claim preclusion) barred the action. On appeal, the United States Court of Appeals for the Sixth Circuit held that issue preclusion, not claim preclusion, applied. The court concluded that issue preclusion barred the company from relitigating its prior-restraint claim based on its earlier application, but did not bar claims based on new facts—specifically, the company’s allegation that it was self-censoring and not applying for any billboards due to the ordinance’s discretionary variance process. The Sixth Circuit affirmed in part, vacated in part, and remanded for further proceedings on the new factual allegations. View "Outdoor One Communications LLC v. Charter Twp. of Canton, Mich." on Justia Law

Amy Hadley’s home in South Bend, Indiana, was significantly damaged when law enforcement officers executed a search warrant in pursuit of a murder suspect they believed was inside her residence. The officers, acting on information that the suspect had accessed his Facebook account from Hadley’s IP address, obtained a warrant and forcefully entered the home, causing extensive property damage, including the use of tear gas and destruction of personal items. Hadley, who had no connection to the suspect, was denied compensation by both the City of South Bend and St. Joseph County for the $16,000 in damages.After her request for compensation was denied, Hadley filed suit in Indiana state court, seeking relief under 42 U.S.C. § 1983 for violations of her Fifth and Fourteenth Amendment rights, specifically invoking the Takings Clause. The case was removed to the United States District Court for the Northern District of Indiana, South Bend Division. The defendants moved to dismiss, arguing that Seventh Circuit precedent, particularly Johnson v. Manitowoc County, foreclosed her claim. The district court agreed and dismissed the complaint, finding that the Takings Clause did not entitle her to compensation for property damage resulting from the execution of a lawful search warrant.On appeal, the United States Court of Appeals for the Seventh Circuit affirmed the district court’s dismissal. The court held that, under its precedent in Johnson v. Manitowoc County, the Fifth Amendment does not require the government to compensate property owners for damage caused by law enforcement executing a valid search warrant. The court declined to overrule Johnson and found that Hadley’s arguments did not warrant revisiting the established rule. View "Hadley v. City of South Bend" on Justia Law

The plaintiffs in this case are homeowners and rental-property supervisors in New Orleans who challenged the City’s regulations governing short-term rentals (STRs), defined as lodging offered for less than thirty days. The City’s regulatory scheme requires permits for both owners and operators of STRs, restricts eligibility to “natural persons,” mandates that operators reside at the property, and imposes specific advertising requirements. The regulations were enacted in response to concerns about neighborhood disruption and loss of affordable housing attributed to the proliferation of STRs. Plaintiffs argued that these regulations violated various constitutional provisions, including the Due Process and Equal Protection Clauses, the First Amendment, and the dormant Commerce Clause.The United States District Court for the Eastern District of Louisiana granted summary judgment largely in favor of the City, upholding the constitutionality of most aspects of the STR regulations. The district court found that the City had authority under state law to regulate STRs and rejected the plaintiffs’ due process and equal protection claims, except for one provision not at issue on appeal. The court also upheld the advertising restrictions and the operator residency requirement, interpreting the latter as not requiring permanent residency.On appeal, the United States Court of Appeals for the Fifth Circuit affirmed in part, reversed in part, and remanded. The Fifth Circuit held that the City’s prohibition on business entities obtaining owner or operator permits violated the Equal Protection Clause, as the distinction was arbitrary and not rationally related to a legitimate government interest. The court also found that the requirement that each STR advertisement list only one dwelling unit violated the First Amendment. However, the court upheld the City’s authority to regulate STRs, the due process analysis, most advertising restrictions, and interpreted the operator residency requirement as not violating the dormant Commerce Clause. View "Hignell-Stark v. City of New Orleans" on Justia Law

A group of fourteen taxpayers, all out-of-state owners, operators, or lessees of multifamily housing developments in the City of Tuscaloosa, challenged a city ordinance that amended the business-license fee structure. The ordinance, effective April 2022, imposed a 3% business-license fee on rents received from student-oriented housing developments (SOHDs) with more than 200 bedrooms, while other rental properties remained subject to a 1% fee. The SOHD designation is determined by the city’s zoning officer based on a non-exhaustive list of characteristics and factors. The taxpayers alleged that the ordinance unfairly targeted out-of-state owners and was vague in its application.The taxpayers filed suit in the Tuscaloosa Circuit Court, seeking a declaration that the ordinance was invalid and a refund of taxes paid. They raised claims under the Equal Protection and Due Process Clauses, the dormant Commerce Clause, and argued that the ordinance was essentially a zoning ordinance adopted without following statutory notice requirements. The trial court granted the City’s motion to dismiss under Rule 12(b)(6), finding the complaint insufficient to state a claim.On appeal, the Supreme Court of Alabama reviewed whether the complaint alleged sufficient facts to survive dismissal. The court held that the taxpayers’ claims under the Equal Protection Clause, Due Process Clause (vagueness), and dormant Commerce Clause were sufficiently pleaded to withstand a motion to dismiss, as the allegations, if proven, could entitle the taxpayers to relief. However, the court affirmed the dismissal of the claim that the ordinance was a zoning ordinance subject to statutory notice requirements, finding the ordinance did not regulate property use in the manner of zoning laws. The case was affirmed in part, reversed in part, and remanded for further proceedings. View "Campus Crest at Tuscaloosa LLC v. City of Tuscaloosa" on Justia Law