Justia Real Estate & Property Law Opinion Summaries
Articles Posted in Constitutional Law
Comeaux v. Louisiana Tax Commission
Taxpayers Kraig and Kelly Strenge appealed directly to the Louisiana Supreme Court a declaration by a district court that La. R.S. 47:1990 was unconstitutional, as applied. The district court’s ruling on partial summary judgment also held that the Louisiana Tax Commission (the “Commission”) exceeded its authority in promulgating Section 3103(Z) of Title 61, Part V of the Louisiana Administrative Code (the “Rules and Regulations”) and declared Section 3103(Z) unconstitutional. The underlying issue centered on the Taxpayers challenge to the correctness of the appraisal of their residential property in Lafayette Parish in 2016. After the Lafayette City-Parish Council (Board of Review) ruled in favor of the Assessor, Taxpayers appealed to the Commission. The Commission ruled that the fair market value of the property for tax year 2016 was $231,500, not $288,270 as determined by the Assessor, and ordered the Assessor to reduce Taxpayers’ 2016 assessment accordingly. Two days after the Commission’s oral ruling, the Assessor assessed the fair market value of Taxpayers’ property for the 2017 tax year again at $288,270. Taxpayers again appealed, and after a hearing, the Commission issued a “Rule to Show Cause” to the Assessor. That dispute went before the district court, and the court’s decision served as the grounds for this appeal. The Supreme Court found the district court erred in ruling the Commission exceeded its authority in promulgating Section 3103(Z) and declaring Section 3103(Z) unconstitutional but correctly declared La. R.S. 47:1990 unconstitutional, as applied. Accordingly, judgment was reversed in part and affirmed in part. View "Comeaux v. Louisiana Tax Commission" on Justia Law
Keene Group, Inc. v. City of Cincinnati
In April 2017, a tax foreclosure action was commenced against the then-owner of the Cincinnati property, Davis. The city was named as a defendant. Notice of a May 2018 order for a sheriff’s sale was served on the city on June 1, 2018. During 2017-2018, a building on the property was also the subject of administrative condemnation proceedings. The condemnation decision, dated July 16, 2018, was sent by certified mail to the then-owner, Davis. After the public hearing, but before the decision to demolish the building was made, Plaintiff was the successful bidder at the July 5 sheriff’s sale. A decree confirming the sale entered on July 17. A sheriff’s deed was issued and was recorded in August.Plaintiff was not aware of the demolition decision. On November 14, 2018, the city sent letters to Plaintiff summarizing the public nuisance proceedings and the decision to raze the building, requesting that Plaintiff respond within 10 days The letters were sent via certified mail but were never delivered to Plaintiff. The city made no subsequent efforts to provide notice to Plaintiff.The building was demolished on April 8, 2019. The city demanded $10,515.00 from Plaintiff for the costs of the demolition. The Sixth Circuit affirmed the rejection of Plaintiff’s claims under 42 U.S.C. 1983 and for trespass. Plaintiff was provided with “notice reasonably calculated, under all the circumstances,” of the pendency of the condemnation proceedings. The city did not need to obtain a warrant to demolish a vacant building that had been condemned by administrative proceedings which met due process requirements. View "Keene Group, Inc. v. City of Cincinnati" on Justia Law
Missoula v. Mountain Water Co.
The Supreme Court reversed an order issued by the district court denying a motion for substitution of judge that was made after the Supreme Court reversed the summary judgment order of the district court and remanded the case for further proceedings, holding that the district court erred in denying the motion for substitution for judge.This matter arose from condemnation proceedings concerning the water supply system serving the Missoula urban area. Mountain Water Company and Carlyle Infrastructure Partners, LP (collectively, Owners) filed a notice of constitutional question and motion for partial summary judgment, contending that Mont. Code Ann. 70-30-306(2) and (3) were unconstitutional. The district court determined that section 70-30-306 was constitutional facially and as-applied. The Supreme Court reversed and remanded for limited discovery. On remand, Owners filed a motion for substitution of district judge. The district court denied the motion as untimely. The Supreme Court reversed, holding that Owners were denied their right of substitution upon this Court's reversal of the district court's summary judgment order. View "Missoula v. Mountain Water Co." on Justia Law
Bayou Bridge Pipeline, LLC v. 38.00 Acres, More or Less, Located in St. Martin Parish et al.
The issue presented for the Louisiana Supreme Court’s review in this case centered on whether an award of attorney fees and other litigation costs to defendant landowners in an expropriation proceeding could be upheld under current law. The underlying matter arose from the construction of the Bayou Bridge Pipeline. As part of the project, Bayou Bridge Pipeline, LLC (“BBP”), sought to acquire servitudes on the property of various landowners. The specific piece of property at the center of this litigation is approximately 38 acres of land (“the property”). Prior to reaching servitude agreements with all individuals with an ownership interest in this particular parcel of land, BBP began pipeline construction. Peter Aaslestad, one of the property owners, filed suit against BBP in order to enjoin BBP from further construction. BBP later stipulated that it would remain off the property as of September 10, 2018. However, the pipeline construction was more than 90% complete at that time. Meanwhile, in late July 2018, after it had begun construction on the property, BBP filed expropriation litigation against hundreds of property owners with whom servitude agreements could not be reached, including Mr. Aaslestad, Katherine Aaslestad, and Theda Larson Wright (collectively referred to as “defendants”). In response, defendants filed a reconventional demand against BBP, alleging BPP trespassed on their property and violated due process by proceeding with construction of the pipeline prior to a judgment of expropriation. The matter proceeded to a trial wherein the trial court granted BBP’s petition for expropriation, finding the expropriation served a public and necessary purpose. The trial court also granted defendants’ reconventional demand, finding that BBP trespassed on defendants’ property prior to obtaining permission or legal authority. The trial court ultimately awarded each defendant $75.00 for the expropriation and another $75.00 in trespass damages. The court of appeal reversed in part: upholding the constitutionality of the expropriation process, but finding that BBP violated defendants’ due process rights and awarded $10,000.00 to each defendant for trespass, and granted attorney fees. The Supreme Court determined the award of fees was constitutional, and upheld the Court of Appeal. View "Bayou Bridge Pipeline, LLC v. 38.00 Acres, More or Less, Located in St. Martin Parish et al." on Justia Law
Maddox v. Bank of New York Mellon Trust Co.
The Second Circuit affirmed the district court's order denying the Bank's motion for judgment on the pleadings. The court held that state legislatures may create legally protected interests whose violation supports Article III standing, subject to certain federal limitations. The court also decided that the New York law violations alleged here constitute a concrete and particularized harm to plaintiffs in the form of both reputational injury and limitations in borrowing capacity over the nearly ten-month period during which their mortgage discharge was unlawfully not recorded and in which the Bank allowed the public record to reflect, falsely, that plaintiffs had an outstanding debt of over $50,000.The court further concluded that the Bank's failure to record plaintiffs' mortgage discharge created a material risk of concrete and particularized harm to plaintiffs by providing a basis for an unfavorable credit rating and reduced borrowing capacity. The court explained that these risks and interests, in addition to that of clouded title, which an ordinary mortgagor would have suffered (but plaintiffs did not), are similar to those protected by traditional actions at law. Therefore, plaintiffs have Article III standing and they may pursue their claims for the statutory penalties imposed by the New York Legislature, as well as other relief. Accordingly, the court affirmed and remanded. View "Maddox v. Bank of New York Mellon Trust Co." on Justia Law
Protect the Adirondacks! Inc. v. New York State Department of Environmental Conservation
The Court of Appeals held that the construction of approximately twenty-seven miles of Class II community connector trails designed for snowmobile use in the Forest Preserve violated the "forever wild" provision of N.Y. Const. art. XIV, 1 and, therefore, could not be accomplished other than by constitutional amendment.The Forest Preserve is located within the Adirondack Park. In 2006, the Department of Environmental Conservation and the New York State Office of Parks, Recreation and Historic Preservation prepared a plan with the goal of creating a system of snowmobile trails between communities in the Adirondack Park. Plaintiff commenced this action alleging that construction of the trails violated article XIV, 1 of the New York Constitution. Supreme Court held that the construction was constitutional. The Appellate Division reversed. The Court of Appeals affirmed, holding that the planned Class II trails were constitutionally forbidden. View "Protect the Adirondacks! Inc. v. New York State Department of Environmental Conservation" on Justia Law
City of Albuquerque v. SMP Props., LLC
As part of a project to construct a new road along the North Diversion Channel, the City of Albuquerque initiated a condemnation proceeding to acquire a thirty-foot-wide strip of land across a 9.859-acre property (Property) owned by SMP Properties, LLC, whose managing member was R. Michael Pack (collectively, SMP). The district court granted Albuquerque entry and ordered the distribution of $143,850 to SMP as “just compensation” for the condemned property. SMP asserted it did not receive full compensation because, prior to initiating the condemnation action, Albuquerque directly communicated its intent to condemn a portion of the Property to one of SMP’s tenants, SAIA Motor Freight Line, LLC (SAIA). Hearing of Albuquerque’s intent to condemn, SAIA apparently decided not to renew its lease before Albuquerque filed the contemplated condemnation action, determining that the condemnation would disrupt its operation and use of the portion of the Property it leased. Based on Albuquerque’s pre-condemnation communications with SAIA and SAIA’s subsequent failure to renew its lease, SMP asserted an inverse condemnation claim against Albuquerque seeking consequential damages, including lost rental income and devaluation of the Property adjacent to the thirty-foot wide strip that Albuquerque condemned. Albuquerque moved for partial summary judgment on SMP’s “claims for consequential damages relating to the loss of potential tenant leases.” The district court granted Albuquerque summary judgment and concluded that Albuquerque’s pre-condemnation activity did not constitute “substantial[] interfere[nce] with the landowner’s use and enjoyment of the [P]roperty,” and therefore, no taking (in the form of an inverse condemnation) occurred. The Court of Appeals reversed the district court, finding there were disputed issues of material fact to preclude summary judgment. Though it did not adopt the appellate court’s reasoning, the New Mexico Supreme Court affirmed reversal of summary judgment. View "City of Albuquerque v. SMP Props., LLC" on Justia Law
Cobble Hill Center LLC v. Somerville Redevelopment Authority
The Supreme Judicial Court held that the broad eminent domain powers granted to redevelopment authorities by Mass. Gen. Laws ch. 12B, 11(d) include demonstration projects under Mass. Gen. Laws. ch. 121B, 46(f).The Somerville Redevelopment Authority (SRA) took by eminent domain approximately four acres of land from Cobble Hill Center LLC as a demonstration project pursuant to section 46(f). Following the taking, Cobble Hill brought this action asserting that section 46(f) does not authorize takings by eminent domain. The trial judge entered judgment in favor of SRA. The Supreme Judicial Court affirmed, holding (1) the demonstration project plan at issue satisfied the definition of "demonstration" for purposes of section 46(f); and (2) the SRA's taking was a lawful demonstration under section 46(f) and was constitutional. View "Cobble Hill Center LLC v. Somerville Redevelopment Authority" on Justia Law
City of Crestwood v. Affton Fire Protection District
The Supreme Court affirmed the decision of the circuit court granting judgment on the pleadings in favor of the Affton Fire Protection District, the governor, and the attorney general (collectively, Defendants) in this challenge to Mo. Rev. Stat. 72.418.2 and 321.322.3, holding that the circuit court did not err.The City of Crestwood and two of its resident taxpayers (collectively, Plaintiffs) argued that sections 72.418.2 and 321.322.3, which govern the provision of and payment for fire protection services in certain annexed areas, violate the prohibition against special laws in Mo. Const. art. III, 40 and that section 72.418.2 violates constitutional due process protections and provisions of the Missouri Constitution prohibiting certain taxes and the creation of unfunded mandates. The Supreme Court held (1) a rational basis supported the classification scheme in sections 72.418 and 321.322.3; (2) the fee Crestood pays to the district is not a tax on the resident taxpayers of Crestwood; and (3) section 72.418.2 does not create an unfunded mandate. View "City of Crestwood v. Affton Fire Protection District" on Justia Law
Salisbury v. City of Santa Monica
The Fair Housing Amendments Act of 1988 (FHAA) does not require landlords to accommodate the disability of an individual who neither entered into a lease nor paid rent in exchange for the right to occupy the premises.The Ninth Circuit affirmed the district court's grant of summary judgment in favor of the City, in an action brought by plaintiff against the City for wrongful eviction based on several theories of state law implied tenancy. The panel held that the FHAA applies to rentals only when the landlord or his designee has received consideration in exchange for granting the right to occupy the premises. As to occupants requesting accommodation, the panel held that the FHAA's disability discrimination provisions apply only to cases involving a "sale" or "rental" for which the landlord accepted consideration in exchange for granting the right to occupy the premises. Applying a federal standard rather than California landlord-tenant law, the panel concluded that because plaintiff never provided consideration in exchange for the right to occupy Spot 57, the FHAA was inapplicable to his claim for relief. Furthermore, the City was not obligated to provide, offer, or discuss an accommodation. View "Salisbury v. City of Santa Monica" on Justia Law