Justia Real Estate & Property Law Opinion Summaries

Plaintiff Crystal Point Condominium Association, Inc. obtained default judgments against two entities for construction defect claims. Kinsale Insurance Company was alleged to have insured those entities, under the Direct Action Statute, N.J.S.A. 17:28-2. The relevant policies both contained an arbitration agreement providing in part that “[a]ll disputes over coverage or any rights afforded under this Policy . . . shall be submitted to binding Arbitration.” Crystal Point filed a declaratory judgment action against Kinsale, alleging that it was entitled to recover the amounts owed by the entities under the insurance policies issued by Kinsale. Kinsale asserted that Crystal Point’s claims were subject to binding arbitration in accordance with the insurance policies. Kinsale argued that the Direct Action Statute did not apply because Crystal Point had not demonstrated that neither entity was insolvent or bankrupt. In the alternative, Kinsale contended that even if the statute were to apply, it would not preclude enforcement of the arbitration provisions in the policies. The trial court granted Kinsale’s motion to compel arbitration, viewing the Direct Action Statute to be inapplicable because there was no evidence in the record that either insured was insolvent or bankrupt. An appellate court reversed the trial court’s judgment, finding the evidence that the writs of execution were unsatisfied met the Direct Action Statute’s requirement that the claimant present proof of the insured’s insolvency or bankruptcy and determining that the Direct Action Statute authorized Crystal Point’s claims against Kinsale. The appellate court concluded the arbitration clause in Kinsale’s insurance policies did not warrant the arbitration of Crystal Point’s claims, so it reinstated the complaint and remanded for further proceedings. The New Jersey Supreme Court determined Crystal Point could assert direct claims against Kinsale pursuant to the Direct Action Statute in the setting of this case. Based on the plain language of N.J.S.A. 17:28-2, however, Crystal Point’s claims against Kinsale were derivative claims, and were thus subject to the terms of the insurance policies at issue, including the provision in each policy mandating binding arbitration of disputes between Kinsale and its insureds. Crystal Point’s claims against Kinsale were therefore subject to arbitration. View "Crystal Point Condominium Association, Inc. v. Kinsale Insurance Company " on Justia Law

Westfield amended its ordinance governing signs within city limits. Out of a stated concern for public safety and aesthetics, the ordinance requires those wishing to install a sign or billboard to apply for a permit. The ordinance exempts directional signs, scoreboards, particular flags, and notices on gas pumps and vending machines. It prohibits signs on poles and those advertising ideas, products, or services not offered on the same premises (off-premises signs). Those seeking to install a non-compliant sign may appeal the denial of a permit or, if necessary, request a variance. GEFT applied for a permit to build a large digital billboard on private property along U.S. Highway 31 in Westfield. Because of the proposed sign’s off-premises location and use of a pole, Westfield denied GEFT’s application and subsequent variance request.GEFT sued, 42 U.S.C. 1983. The Seventh Circuit previously upheld a restraining order compelling GEFT to cease all actions to install its proposed billboard pending the outcome of the litigation. The district court later granted GEFT summary judgment and permanently enjoined Westfield from enforcing many aspects of its ordinance. The Seventh Circuit remanded for consideration in light of the Supreme Court’s recent decision in “City of Austin v. Reagan National;” the fact that the city must read a sign to evaluate its conformity with regulations is not alone determinative of whether the regulation is content-based. View "GEFT Outdoors, LLC v. City of Westfield" on Justia Law

The Supreme Court affirmed the order of the district court denying Appellants' motion for partial summary judgment and dismissing their inverse condemnation claim against the City of Billings, holding that the district court did not err.Appellants, who owned and resided in a home within the City limits, brought this action seeking to recover damages when 1,000 gallons of raw sewage backed up into their basement. The district court dismissed Appellants' sole claim of inverse condemnation because they did not establish that their damage was caused by the deliberate actions of the City. The Supreme Court affirmed, holding that Appellants failed to establish that the sewer backup was a constitutional damages of their basement for public use, and thus, a condemnation. View "Wittman v. City of Billings" on Justia Law

After Nygard removed his driveway and was about to pour a new one, an Orono inspector told Nygard that he needed a permit. The next day, Nygard finished the driveway and applied for a permit. The new driveway was narrower than the previous one. The city responded with a form, imposing several conditions. Nygard crossed out some conditions, initialed the modified form, and returned it. After several exchanges, the city notified Nygard that he must agree to the conditions or “this matter will be turned over to the prosecuting attorney.” Nygard did not acknowledge the conditions. A police officer drafted a statement of probable cause, alleging that “work had been completed without having first obtained a permit” and listing some alleged deficiencies in its construction. According to the Nygards, the police did not inspect the property and some allegations were not true.Nygard was acquitted of violating the city code. The Eighth Circuit affirmed the dismissal of his suit under 42 U.S.C. 1983, claiming the code was void for vagueness and alleging First Amendment retaliation, abuse of process, and malicious prosecution. Nygard’s prosecution was not based on falsehoods. The report did not claim that the conditions were required by the code but that Nygard had not agreed to the conditions and had replaced a driveway without a permit. Any failure to investigate did not defeat probable cause; the city already knew that he installed a driveway without a permit. View "Nygard v. City of Orono" on Justia Law

Plaintiff-appellant Amber Machowski was an individual with a disability who used a wheelchair for mobility. Defendant 333 N. Placentia Property, LLC, was the owner of a property in Fullerton, California, on which a business establishment known as City Market Liquor II was located. When Machowski attempted to patronize the store, she encountered architectural barriers that prevented her from making full use and enjoyment of the premises. Machowski sued Defendant, asserting claims under the Americans with Disabilities Act, and the Unruh Civil Rights Act. The complaint sought injunctive relief, statutory damages under the Unruh Act, and reasonable attorney’s fees and costs. After Defendant failed to respond to the complaint, Machowski applied for the entry of default judgment, seeking injunctive relief and statutory damages. Machowski’s application for default judgment did not seek an award of attorney’s fees. Instead, it advised the district court that “plaintiff will separately file a motion for her attorney fees and costs once this application is granted and judgment has been entered.” The district court declined to exercise supplemental jurisdiction over Machowski’s Unruh Act claim, granted default judgment on her ADA claim, ordered injunctive relief, and sua sponte awarded Machowski $1000 in attorney’s fees under Central District of California Local Rule 55-3. Machowski timely appealed the fee award. The Ninth Circuit held that where, as here, a prevailing party advises the district court that it is opting out of the fee schedule and will seek by motion, an award of reasonable attorney's fees, the district court abuses its discretion by disregarding the plaintiff's choice and sua sponte awarding fees under the fee schedule. Accordingly, the fee award was vacated and the matter remanded for further proceedings. View "Machowski v. 333 N. Placentia Property, LLC" on Justia Law

The Supreme Court affirmed the decision of the district court entering summary judgment in favor of Defendants and dismissing Plaintiff's action with prejudice, holding that Defendant was not entitled to relief on any of his claims of error.Plaintiff sued a neighboring confined animal feeding operation (CAFO) alleging common law nuisance, trespass, and drainage law violations. Defendants moved for summary judgment based on the statutory immunity in Iowa Code 657.11. Plaintiff, relying on , argued that section 657.11, as applied, violated the Iowa Constitution's inalienable rights clause. The district court granted summary judgment in favor of Defendants. The Supreme Court affirmed, holding (1) the three-part test set forth in Gacke is overruled; (2) under rational basis review, Plaintiff's constitutional challenge to section 657.11 was unavailing; (2) Plaintiff failed to preserve error on his takings claim; and (3) as to Plaintiff's trespass and drainage claims Plaintiff failed to generate a question of fact precluding summary judgment on statutory nuisance immunity or causation. View "Garrison v. New Fashion Pork LLP" on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing the challenges brought by Salt Lake City to four provisions of the Utah Inland Port Authority Act, holding that the challenged zoning provisions did not violate the Utah Constitution.The Act requires that Salt Lake City, West Valley City, and Magna adopt specific zoning regulations and permissions favorable to developing an inland port in the area. Salt Lake brought this action alleging that four provisions of the Act violated the Utah Constitution's Uniform Operation of Laws and Ripper clauses. The district court rejected the City's claims. The Supreme Court affirmed, holding (1) the zoning provisions were rationally related to a legitimate legislative purpose and therefore did not violate the Uniform Operation of Laws Clause; and (2) the zoning provisions did not delegate municipal functions in violation of the Ripper Clause. View "Salt Lake City Corp. v. Inland Port Authority" on Justia Law

The Supreme Court reversed the order of the district court granting summary judgment in favor of the cities of Pella and Oskaloosa regarding the validity of an agreement between the cities and Mahaska County to establish a regional airport authority, holding that Landowners had standing to challenge the agreement.Landowners brought this action seeking a judgment that the agreement at issue was illegal and an injunction to prevent the transaction. The district court held that Landowners lacked standing to bring the suit and granted summary judgment in favor of the Cities. The Supreme Court reversed, holding (1) by entering into the agreement, the County's Board of Supervisors bound future board to a particular course of legislative action, in violation of the Iowa Constitution; (2) the agreement violated precedent regarding delegation of a municipality's legislative power; and (3) therefore, the district court erred in declaring the agreement to be valid and ordering specific performance by the County of its obligations under the agreement. View "Site A Landowners v. South Central Regional Airport Agency" on Justia Law

In 2008, the City of Gulfport undertook a project to replace the infrastructure associated with its water and sewer systems relating to damage caused by Hurricane Katrina in 2005. The repair project involved federal, state, and local agencies and ultimately cost approximately $85 million to complete. The original design of the Area 3B project, the sewer infrastructure that crossed the Cowan Road property located north of U.S. Highway 90 and east of Highway 605 were to be replaced, and the new infrastructure was to be installed within the City’s existing easements across the properties. The Cowan Road property at issue was located in the Area 3B geographic zone. Robert “Kris” Riemann, P.E., then-director of the City’s department of public works, was notified that John Felsher had inquired about relocating the sewer infrastructure in Area 3B. Based on an agreement with Felsher to relocate the utilities, the City had the Area 3B design drawings redrafted to move the utilities. The City's project manager was notified that the discovery of underground telephone lines and other utilities required that the sewer line being relocated had to cut the northwest corner of the property. Cowan Road filed a complaint in the Chancery Court of Harrison County, Mississippi, advancing a claim for inverse condemnation against the City. The chancery court transferred the case to the Special Court of Eminent Domain in Harrison County. Due to the jurisdictional limits of county court, the case ended up in Harrison County Circuit Court. The circuit court entered an order granting the motion for partial summary judgment filed by the City on the issue of the date of the taking. The parties eventually settled the reverse condemnation claim, and the City agreed to pay $100,000 to Cowan Road & Hwy 90, LLC, for the improper and unlawful taking of its property. The issue before the Mississippi Supreme Court centered on the circuit court's grant of attorneys' fees and expenses: Gulfport argued that Cowan Road should not have been allowed to recover attorneys’ fees under Section 43-37-9. Finding that the statute applied and fees were appropriate, the Supreme Court affirmed. However, the Court found the trial judge abused his discretion by disallowing requests for postjudgment interest. View "City of Gulfport v. Cowan Road & Hwy 90, LLC, et al." on Justia Law

After a judicial foreclosure proceeding for delinquent property taxes, the county generally sells the land at a public auction and pays any proceeds above the delinquency amount to the owner upon demand. Ohio's 2008 land-bank transfer procedure for abandoned property permits counties to bring foreclosure proceedings in the County Board of Revision rather than in court and authorizes counties to transfer the land to landbanks rather than sell it at auctions, “free and clear of all impositions and any other liens.” The state forgives any tax delinquency; it makes no difference whether the tax delinquency exceeds the property’s fair market value. The Board of Revision must provide notice to landowners and the county must run a title search. Owners may transfer a case from the Board to a court. After the Board’s foreclosure decision, owners have 28 days to pay the delinquency and recover their land. They also may file an appeal in a court of general jurisdiction. Owners cannot obtain the excess equity in the property after the land bank receives it.After Tarrify’s vacant property was transferred to a landbank, Tarrify sued under 42 U.S.C. 1983, claiming that the transfers constituted takings without just compensation. The Sixth Circuit affirmed the denial of Tarrify’s motion to certify a class of Cuyahoga County landowners who purportedly suffered similar injuries. While the claimants share a common legal theory—that the targeted Ohio law does not permit them to capture equity in their properties after the county transfers them to a land bank—they do not have a cognizable common theory for measuring the value in each property at the time of transfer. View "Tarrify Properties, LLC v. Cuyahoga County" on Justia Law