Justia Real Estate & Property Law Opinion Summaries

The dispute centers on a Delaware law, House Bill 242 (HB242), which permits New Castle County school districts to set different property tax rates for residential and non-residential properties for the 2025-2026 school year. This legislation was enacted after a county-wide property reassessment revealed a significant shift in the tax base, resulting in higher taxes for residential properties. In response to public concern, HB242 allowed school districts to implement a split-rate system, reducing residential rates and increasing non-residential rates, with the stipulation that non-residential rates could not exceed twice the residential rate and that total projected revenue could not surpass the amount projected under the original tax warrant. Subsequent corrections to property classifications led to a net increase in projected tax revenue.The plaintiffs, four property-related associations, challenged HB242 in the Court of Chancery, arguing that it violated the Uniformity Clause of the Delaware Constitution and a “revenue neutrality” requirement in the statute. The Court of Chancery rejected these claims, finding that the General Assembly has the authority to create reasonable property classifications for tax purposes and that the statute’s use of “projected” rather than “actual” revenue allowed for adjustments due to classification corrections.On appeal, the Supreme Court of Delaware reviewed the constitutionality of HB242 and the statutory interpretation issues de novo. The Court held that the Uniformity Clause does not prohibit reasonable legislative classifications of property for taxation, provided tax rates are uniform within each class. The Court also determined that HB242’s revenue limitation applies to projected, not actual, revenue, and that corrections to property classifications do not violate the statute. The Supreme Court of Delaware affirmed the judgment of the Court of Chancery. View "Newark Property Association v. State" on Justia Law

New South Media Group, LLC, along with other plaintiffs, sought to construct four types of signs—flags, artwork, political messages, and event notices—on private property in Rainbow City, Alabama. The city denied their permit applications, determining that the proposed signs were billboards, which are prohibited under Section 214 of the city’s sign ordinance. The plaintiffs believed their signs qualified for exemptions under Section 213, but the city’s definition of “billboard” encompassed their proposed signs. After receiving the denial, New South requested variances, which were also denied by the city’s zoning board.Following these denials, New South appealed in state court and brought federal and state constitutional challenges, which were dismissed in state court and then refiled in federal court. In the United States District Court for the Northern District of Alabama, New South alleged that several city sign regulations violated the First Amendment and the Alabama Constitution by imposing content-based restrictions, lacking time limits for permit decisions, and granting unbridled discretion to city officials. The district court granted summary judgment to Rainbow City, finding that New South lacked standing because the injury—the denial of the applications—was caused by the unchallenged billboard prohibition, not the provisions New South contested.On appeal, the United States Court of Appeals for the Eleventh Circuit reviewed the district court’s decision de novo. The Eleventh Circuit held that New South lacked standing to challenge the constitutionality of the non-billboard regulations because the injury was not traceable to those provisions and a favorable decision would not redress the harm caused by the billboard prohibition. The court affirmed the district court’s order granting summary judgment to Rainbow City and dismissing the case without prejudice for lack of jurisdiction. View "New South Media Group, LLC v. City of Rainbow City" on Justia Law

A resident of University Heights, Ohio, who practices Orthodox Judaism, sought to use his home for group prayer sessions due to religious obligations and restrictions on travel during the Sabbath. After inviting neighbors to participate in these gatherings, a neighbor complained to city officials, prompting the city’s law director to send a cease-and-desist letter, warning that using the home as a place of religious assembly violated local zoning laws. The resident then applied for a special use permit to operate a house of worship but withdrew his application before the city’s Planning Commission could reach a decision, stating he did not wish to operate a house of worship as defined by the ordinance. Despite withdrawing, he later filed a federal lawsuit against the city and several officials, alleging violations of federal and state law, including constitutional and statutory claims.The United States District Court for the Northern District of Ohio granted summary judgment for the city and its officials. The court found that the plaintiff’s claims under the Religious Land Use and Institutionalized Persons Act (RLUIPA), the First and Fourteenth Amendments, and the Ohio Constitution were unripe because there was no final decision by the relevant local authorities regarding the application of the zoning ordinance to his property. The court also rejected his Fourth Amendment and Freedom of Access to Clinic Entrances Act (FACE Act) claims on the merits and declined supplemental jurisdiction over a state public records claim.The United States Court of Appeals for the Sixth Circuit affirmed. The court held that most of the plaintiff’s claims were unripe because he withdrew his application before any final decision was made by the city’s zoning authorities, and thus there was no concrete dispute for federal review. The court also held that his facial challenges to the ordinance were forfeited and, in any event, failed as a matter of law. The court further concluded that the Fourth Amendment and FACE Act claims failed on the merits and found no abuse of discretion in declining supplemental jurisdiction over the state law claim. View "Daniel Grand v. City of University Heights, Ohio" on Justia Law

Susan Boggs and Fouad Rachid reside in a home owned by Fouad, Inc., located in Olmsted Township near the Cleveland-Hopkins International Airport. Boggs alleges that increased air traffic and airport operations, particularly following a runway expansion project, have caused significant noise, vibrations, and emissions, rendering the property unsuitable for residential use and amounting to a governmental taking. Boggs declined Cleveland’s offer to purchase an avigation easement and subsequently filed a mandamus action against the City of Cleveland, seeking to compel the city to initiate appropriation proceedings to determine compensation for the alleged taking.The case was initially removed to federal court, where Boggs pursued administrative remedies with the Federal Aviation Administration (FAA), but her claims were rejected. After further federal litigation, the district court granted summary judgment to Cleveland on federal claims and remanded the state-law claims to the Cuyahoga County Court of Common Pleas. In state court, both parties moved for summary judgment. The trial court granted summary judgment to Cleveland, finding that Boggs lacked standing because Cleveland, as a municipality, lacked authority to appropriate property outside its boundaries. The Eighth District Court of Appeals affirmed, holding that Boggs’s injury was not redressable since Cleveland could not be compelled to initiate appropriation proceedings for property outside its jurisdiction.The Supreme Court of Ohio reviewed the case and reversed the judgment of the Eighth District Court of Appeals. The court held that under Article I, Section 19 of the Ohio Constitution, a landowner whose property has been taken by a foreign municipality has standing to pursue a mandamus action to force the municipality to institute appropriation proceedings for compensation, regardless of whether the property is located within the municipality’s boundaries. The case was remanded for further proceedings, including consideration of the statute-of-limitations issue. View "State ex rel. Boggs v. Cleveland" on Justia Law

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