Justia Real Estate & Property Law Opinion Summaries

The City of Oakland filed suit alleging that Wells Fargo engaged in discriminatory lending practices by issuing predatory loans to its Black and Latino residents in violation of the Fair Housing Act of 1968 (FHA). On appeal, Wells Fargo challenged the district court's partial denial of its motion to dismiss the City's complaint under Federal Rule of Civil Procedure 12(b)(6).In Bank of Am. Corp. v. City of Miami (Miami I), 137 S. Ct. 1296, 1306 (2017), the Supreme Court held that to establish proximate cause under the FHA, a plaintiff must do more than show that its injuries foreseeably flowed from the alleged statutory violation. Rather, some direct relation between the injury asserted and the injurious conduct alleged is required. Pursuant to Miami I, the Ninth Circuit held, after reviewing the FHA's text and legislative history, that Congress clearly intended the nature of the statutory cause of action at issue in this case to be broad and inclusive enough to encompass less direct, aggregate, and city-wide injuries. Furthermore, all three of the Holmes factors support the panel's conclusion that it is administratively feasible for the district court to administer the aggregate, city-wide injuries that the City claims it suffered as a result of Wells Fargo's unlawful discriminatory lending practices throughout the City.The panel held that the allegations in the amended complaint are sufficient to plead that Oakland's reduced property-tax revenues, but not its increased municipal expenses, are proximately caused by Wells Fargo's discriminatory lending practices. Therefore, the panel affirmed the district court's denial of Wells Fargo's motion to dismiss as to the City's claims for lost property-tax revenues and the district court's grant of Wells Fargo's motion to dismiss as to Oakland's claims for increased municipal expenses. The panel also held that the FHA's proximate-cause requirement applies to claims for injunctive or declaratory relief. Accordingly, the panel reversed the district court's denial of Wells Fargo's motion to dismiss as to the City's claims seeking injunctive and declaratory relief. The panel remanded for further proceedings. View "City of Oakland v. Wells Fargo & Co." on Justia Law

The Supreme Court affirmed the order of the district court affirming the Acting Roosevelt County Superintendent of School's grant of a territory transfer from Poplar Elementary School District No. 9 to Froid Elementary School District No. 65 pursuant to Mont. Code Ann. 20-6-105, holding that the Acting Superintendent did not abuse her discretion, and that Poplar's constitutional challenges failed.On appeal, Poplar argued that the Acting Superintendent's decision granting the territory transfer petition constituted an abuse of discretion and that section 20-6-105, the territory transfer statute, is unconstitutional both facially and as applied. The Supreme Court affirmed, holding (1) the district court correctly determined that the Acting Superintendent did not abuse her discretion in granting the petition to transfer the transfer territory; (2) the doctrines of res judicata and collateral estoppel barred Poplar's facial constitutional challenge; and (3) Poplar's as-applied challenge failed because a school district does not have a constitutional right to due process. View "Poplar Elementary School District No. 9 v. Froid Elementary School District No. 65" on Justia Law

The Barack Obama Foundation selected Jackson Park in Chicago to house the Obama Presidential Center. Chicago acquired 19.3 acres from the Chicago Park District, enacted the necessary ordinances, and entered into a use agreement with the Obama Foundation. Construction will require the removal of multiple mature trees, the diversion of roadways, and will require the city to shoulder some expenses. Opponents sued, alleging that the defendants violated Illinois’s public trust doctrine, which limits the government’s ability to transfer control or ownership of public lands to private parties and that under Illinois law, the defendants acted beyond their legal authority in entering the use agreement because it delegates decision-making authority to the Foundation and grants the Foundation an illegal lease in all but name, Under federal law, they argued that, by altering the use of Jackson Park and granting control to the Foundation, the defendants took the plaintiffs’ property for a private purpose and deprived them of property in a process lacking in procedural safeguards.The district court granted the defendants summary judgment. The Seventh Circuit affirmed as to the federal claims and held that the state claims should have been dismissed for lack of jurisdiction. Federal courts are only permitted to adjudicate claims that have allegedly caused the plaintiff a concrete injury. The federal claims allege a concrete injury, but the lack of a property interest is a fundamental defect. The state claims allege only policy disagreements. View "Protect Our Parks, Inc. v. Chicago Park District" on Justia Law

In 2016, the Ohio Department of Transportation began a construction project on a portion of Interstate Highway 75 near the Plaintiffs’ Hancock County properties. As a result of this construction, storm and groundwater flooded those properties three times and caused significant damage. The Plaintiffs filed suit, including a claim brought directly under the Fifth Amendment to the U.S. Constitution and Article I, Section 19 of the Ohio Constitution, seeking a declaratory judgment that the flooding caused a “change in topography [that] constitutes a taking of private property without just compensation,” and compensation for the same, and a claim under 42 U.S.C. 1983 seeking damages for the alleged taking. The district court dismissed, finding that Ohio’s Eleventh Amendment sovereign immunity deprived it of subject matter jurisdiction. The Sixth Circuit affirmed. States’ sovereign immunity predates the Constitution; unless the Constitution itself, or Congress acting under a constitutional grant of authority, abrogates that immunity, it remains in place. The Sixth Circuit has previously held that the states’ sovereign immunity protects them from takings claims for damages in federal court and that Ohio’s statutory mechanism for obtaining compensation to remedy a Takings Clause violation does provide reasonable, certain, and adequate procedures. View "Ladd v. Marchbanks" on Justia Law

R.L. Vallee, Inc. appealed the superior court’s denial of its motion to intervene in a state condemnation action seeking property rights for a highway project. Vallee argued: (1) it had a right to intervene under Vermont Rule of Civil Procedure 24(a)(1) because Vermont’s highway condemnation statute conferred an unconditional right to intervene; and (2) it had a right to intervene under Vermont Rule of Civil Procedure 24(a)(2) because it had an interest relating to property that was subject to the condemnation action and intervention was necessary to protect that interest. After review, the Vermont Supreme Court held that Vallee had an unconditional statutory right to intervene under Rule 24(a)(1), and accordingly, reversed. View "Agency of Transportation v. Timberlake Associates et al." on Justia Law

The Plaintiffs, in their individual capacities and on behalf of similarly situated taxpayers, sought declaratory relief regarding chapter 61-33.1, N.D.C.C., relating to the ownership of mineral rights in lands subject to inundation by the Garrison Dam, was unconstitutional. The district court concluded that N.D.C.C. 61-33.1-04(1)(b) was on its face unconstitutional under the “gift clause,” and enjoined the State from issuing any payments under that statute. The court rejected Plaintiffs’ constitutional challenges to the rest of chapter 61-33.1. The Defendants appealed and the Plaintiffs cross-appealed the trial court’s orders, judgment, and amended judgment. After review, the North Dakota Supreme Court reversed that portion of the judgment concluding N.D.C.C. 61- 33.1-04(1)(b) violated the gift clause and the court’s injunction enjoining those payments. The Supreme Court also reversed the court’s award of attorney’s fees and costs and service award to the Plaintiffs because they were no longer prevailing parties. The Court affirmed the remainder of the orders and judgment, concluding the Plaintiffs did not establish that chapter 61-33.1 on its face violated the North Dakota Constitution. View "Sorum, et al. v. North Dakota, et al." on Justia Law

Hardy owns land in Newton County, Georgia, through which CGA operated a rail line. CGA’s predecessor acquired interests in Hardy’s parcels through various deeds. In 2013, CGA applied for authority to abandon a portion of its rail line by filing a notice of exemption from formal abandonment proceedings with the Surface Transportation Board (STB). The Foundation requested interim trail use under the National Trail Systems Act, 16 U.S.C. 1247(d). The STB issued a Notice of Interim Trail Use or Abandonment (NITU). In 2016, CGA notified the STB that the map attached to CGA’s notice of exemption was inaccurate and attached a corrected map. The STB accepted CGA’s revised map and modified 2013 NITU “effective on its date of service.” Hardy filed suit, alleging that the 2013 NITU caused takings by preventing CGA’s abandonment of sections of the rail line running through Hardy’s parcels.The Federal Circuit affirmed summary judgment that Hardy has a cognizable property interest; the deeds conveyed easements rather than fee simple estates. The court vacated a holding that the NITU caused a temporary taking of parcels that were erroneously included in the description of the land. In a rails-to-trails case, a taking occurs when a “NITU is issued and state law reversionary interests that would otherwise take effect pursuant to normal abandonment proceedings are forestalled.” The court remanded for determinations of whether or when the Railroad would have abandoned the easements absent the NITU. View "Hardy v. United States" on Justia Law

Water levels in Eagle Lake, near Vicksburg, are controlled by the Muddy Bayou Control Structure, part of the Army Corps of Engineers’ Mississippi River flood control program. Eagle Lake's predictable water levels allowed the plaintiffs to build piers, boathouses, and docks. In 2010, the Corps determined that “sand boils” threatened the stability of the nearby Mississippi River Mainline Levee, a component of the same flood-control program. Unusually wet weather in 2011 exacerbated the problem. The Corps declared an emergency, finding that the rise in nearby water levels threatened the structural integrity of the levee and “that the likelihood of breach was over 95%.” The Corps decided to flood Eagle Lake to reduce pressures along the levee. Because of that action, the levee did not breach. A breach would have resulted in widespread flooding affecting “about a million acres and possibly between four thousand to six thousand homes and businesses.” The damage to the plaintiffs’ properties would have exceeded the damage caused by raising the lake level. The plaintiffs sued, seeking compensation. The Federal Circuit reversed the Claims Court’s finding that the government was liable and award of $168,000 in compensatory damages. The relative benefits doctrine bars liability. The plaintiffs were better off as a result of the Corps’ actions. If the government had not raised the water level, the levee would almost certainly have breached, and the plaintiffs would have suffered more damage. View "Alford v. United States" on Justia Law

After filing unsuccessful petitions for writ of mandate challenging the approval of two of the projects under various land use laws, AFH filed suit against the City for violating the federal Fair Housing Act (FHA) and the state Fair Employment and Housing Act (FEHA) based on a disparate-impact theory of liability.The Court of Appeal held that the trial court correctly found AHF cannot assert a cause of action under the FHA and FEHA based on its alleged disparate-impact theory of liability where AHF has not alleged a policy that is an artificial, arbitrary, and unnecessary barrier to fair housing. In this case, AHF has not alleged that the City's policy restricts affordable housing; the City's approval of the Projects does not eliminate housing; and AHF seeks to impose a new development policy on the City, rather than to eliminate one. The court also held that the trial court did not abuse its discretion by denying AHF leave to amend. Accordingly, the court affirmed the trial court's decision sustaining the City's and Real Parties' demurrers. View "AIDS Healthcare Foundation v. City of Los Angeles" on Justia Law

In this eminent domain action, the Supreme Court reversed the judgment of the district court endorsing a "general rule that a party may not rely on post-valuation facts and circumstances to prove severance damages," holding that there is no categorical rule foreclosing the relevance of evidence of a subsequent transaction involving the property in question.In 2009, a portion of Plaintiff's property was taken by the Utah Department of Transportation (UDOT). During the subsequent litigation, the parties disputed the amount of damages for the condemned property and on the amount of severance damages as to Plaintiff's remaining property. Plaintiff eventually sold the remaining property, which was developed into two car dealerships. On a pretrial motion in limine the district court excluded this development, concluding that that the property had to be valued as of the date of the taking and based on what a willing buyer and seller would have known at that time. The Supreme Court reversed, holding that there is no categorical rule deeming post-valuation-date evidence irrelevant to the determination of fair market value under Utah Code 78B-6-511 and -512. View "Utah Department of Transportation v. Boggess-Draper Co." on Justia Law