Justia Real Estate & Property Law Opinion Summaries

The Court of Appeals reversed the order of the circuit court invalidating, on due process grounds, an order ratifying the sale of Prime Realty's vacant property, holding that Maryland Rule 3-124(o), which allows for substituted service of process on an LLC by service on the State Department of Assessments and Taxation (SDAT), satisfies a litigant's due process rights.The Mayor and City Council of Baltimore (the City) initiated a receivership action against Prime Realty Associates, LLC when property owned by Prime Realty fell into disrepair. The City attempted to serve Prime Realty's resident agent at the address on file with SDAT. When those attempts proved unsuccessful, the City made substitute service on SDAT pursuant to Maryland Rule 3-124(o). The property was subsequently sold, and the district court ratified the sale. Thereafter, Prime Realty moved to vacate the sale, arguing that its due process rights were violated because the City did not adequately serve Prime Realty. The district court denied the motion. On appeal, the circuit court vacated the sale of the property, holding that Prime Realty's due process were violated. The Court of Appeals reversed, holding that the method of substituted service upon SDAT prescribed by Maryland Rule 3-124(o) satisfies a litigant's due process rights. View "Mayor & City Council of Baltimore v. Prime Realty Associates, LLC" on Justia Law

Matthew Wiggins appealed a decision of a special court of eminent domain to the County Court of Hinds County, Mississippi, approving the City of Clinton’s exercise of eminent domain. Wiggins bought property in March of 2016. At the time, the structures located there were dilapidated and were in need of extensive structural repairs. Soon after Wiggins took possession of the properties, Clinton found that the properties should be demolished due to neglect. Clinton assessed 1,434 separate code violations to property Wiggins owned. Wiggins pleaded guilty to the violations on January 26, 2017. Clinton then found additional violations against Wiggins at those properties and at other properties he owned in Clinton. Wiggins was found guilty of two violations by the County Court of Hinds County in 2018. The remaining violations were dismissed. In June 2018, Clinton adopted an urban-renewal plan. Wiggins' parcel was within the renewal area, and sought to take it. The special court found Clinton’s exercise of eminent domain proper. After review, the Mississippi Supreme Court found sufficient evidence in the special court record to support the taking my eminent domain. Similarly, the Court determined the record offered no evidence to demonstrate the determination of the special court was manifestly wrong. Therefore, judgment was affirmed. View "Wiggins. v. City of Clinton" on Justia Law

The Supreme Court affirmed the decision of the circuit court affirming the assessed value of Appellants' agricultural land by the Meade County Commission sitting as a board of equalization (the Board), holding that the circuit court did not err.Before the Board, Appellants argued that the director of equalization incorrectly applied statutory provisions to determine their land's production value. The Board further adjusted the assessment from an average of $519 per acre down to an average of $512 per acre. Appellants appealed the Board's decision to circuit court. After a trial de novo, the circuit court affirmed the Board's tax assessment of the property. The Supreme Court affirmed, holding that the circuit court did not err when it determined that (1) the Board complied with the statutory provisions for evaluating agricultural land in their assessment of Appellants' property; and (2) the Board's tax assessment of the property did not violate provisions of the South Dakota Constitution that require uniform taxation at no more than its actual value. View "Trask v. Meade County Commission" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the trial court awarding Plaintiffs compensation for a taking of various portions of their property with pre-judgment interest, holding that the portion of the trial court's order concerning the proper evaluation of the pre-judgment interest rate was contrary to this Court's precedents.In 1987, the General Assembly adopted the Roadway Corridor Official Map Act. In 1992 and 2006, portions of Plaintiffs' property were designated as within a roadway corridor pursuant to that statute. Plaintiffs filed an inverse condemnation complaint against the North Carolina Department of Transportation (NCDOT) seeking compensation for the taking. Final judgment was issued awarding Plaintiffs $137,247 for the 1992 taking and $6,139 for the 2006 taking, both with pre-judgment interest at eight percent compounded annually. NCDOT appealed. The Supreme Court affirmed in part and reversed in part, holding (1) the trial court did not err in proceeding to trial on the inverse condemnation complaint; (2) any error in the court's characterization of the taking was harmless; (3) the court's treatment of the reduced property taxes was proper; but (4) the trial court erred concerning the proper evaluation of the pre-judgment interest rate. View "Chappell v. N.C. Department of Transportation" on Justia Law

The Supreme Court accepted a question certified to it by the United States Court of Appeals for the Fifth Circuit and answered that a lender is entitled to equitable subrogation where it failed to correct a curable constitutional defect in the loan documents under Tex. Const. art. XVI, 50.Sylvia Zepeda obtained a loan from CIT Group and later refinanced her debt with a loan from Embrace Home Loans, Inc., using her homestead as collateral. Zepeda subsequently notified Embrace that the loan documents did not comply with section 50 because Embrace had not signed a form acknowledging the homestead's fair market value. Embrace subsequently sold the loan to Freddie Mac. When Freddie Mac did not respond to Zepeda's notification of the constitutional defect, Zepeda sued to quiet title, arguing that Freddie Mac did not possess a valid lien on her property. The federal district court concluded that Freddie Mac was not entitled to equitable subrogation because it was negligent in failing to cure the constitutional defect in the loan documents. The Supreme Court disagreed, holding that, under Texas law, a lender who discharges a prior, valid lien on the borrower's homestead property is entitled to subrogation, even if the lender failed to correct a curable defect in the loan documents. View "Federal Home Loan Mortgage Corp. v. Zepeda" on Justia Law

GIP purchased property from a steel mill’s bankruptcy estate, omitting the “Eastern Excluded Property” (EEP). GIP purchased some personal property located on the EEP, which contains two piles comprising slag (a steel manufacturing byproduct), kish (a byproduct of a blast furnace operation), and scrap. Each pile occupied more than 10 acres and was more than 80 feet high. GIP's "Itemization of Excluded Item from Sale” referred to: “All by-products of production other than kish and 420,000 cubic yards of slag” on the EEP “with a reasonable period of time to remove such items.” The EPA began investigating contaminants leaching from the piles. While GIP was negotiating for the separation of recoverable metals, the EPA decided to reduce the size of the piles. In 2009-2013, EPA contractors recovered and sold 245,890 tons of material and recovered and used 92,500 cubic yards of slag onsite for environmental remediation; they processed approximately 50% of the piles, spending about $14.5 million, about a million more than income from sales. The EPA compacted the materials to minimize leachate, leaving further remediation to state environmental authorities. GIP did not attempt its own recovery operation during the EPA remediation.GIP sued, alleging “takings” of the slag, kish, and scrap. The trial court awarded GIP $755,494 for the slag but awarded zero damages for the kish and scrap. The Federal Circuit vacated in part. GIP had no claim to any particular subset of slag. The trial court erred in finding that the EPA somehow prevented GIP from recovering its full allotment of slag; GIP cannot establish a cognizable property interest in the slag that was recovered. The court affirmed in part. GIP’s unreliable calculations left the trial court without competent evidence relating to a critical component of the damages calculation with respect to the kish and scrap. View "Gadsden Industrial Park, LLC v. United States" on Justia Law

Alaska Housing Finance Corporation (AHFC) held a promissory note and deed of trust executed in connection with a borrower’s purchase of his home. AHFC non-judicially foreclosed on the deed of trust without first providing the borrower an opportunity to present to a decision-maker his argument why under AHFC’s policies and procedures he was entitled to loan assistance to prevent the foreclosure. The borrower brought suit, alleging among other things, that he was denied procedural due process protections before AHFC took his property by foreclosure. The superior court rejected his due process argument and granted AHFC summary judgment on all issues. The sole issue presented to the Alaska Supreme Court on appeal was the due process question. The Court concluded that AHFC, a public corporation, was a “state actor,” that the foreclosure effected a deprivation of the borrower’s property, and that the borrower was not afforded a constitutionally required pre­ deprivation opportunity to be heard. The Court therefore reversed the superior court’s summary judgment decision on the due process question and remanded for further proceedings. View "Anderson v Alaska Housing Finance Corporation" on Justia Law

The Supreme Court affirmed the decision of the district court granting summary judgment in favor of Appellee and quieting title on certain property after issuance of a tax deed, holding that Appellee complied with the statutory notice requirements for obtaining a tax deed and that the statutory notice requirements are constitutionally sufficient.On appeal, Appellant argued, among other things, that the district court erred in finding that the notice provided complied with Nebraska statutes and in not finding the Nebraska tax sale statutory scheme violated the federal and state constitutions. The Supreme Court affirmed, holding (1) because the statutory notice requirements are reasonably calculated to apprise a property owner of a tax certificate holder's intent to apply for a tax deed, they are constitutionally sufficient; and (2) Appellant failed to meet his burden of establishing that the tax deed was invalid. View "HBI, LLC v. Barnette" on Justia Law

The 1961 National Housing Act provided financial incentives to private developers to build low-income housing, including below-market mortgages insured by HUD. Participating developers had limited ability to increase rents while HUD insured the mortgage. The mortgage term was 40 years but developers could prepay their mortgages after 20 years and convert to market-rate housing. The 1988-1990 Preservation Statutes eliminated the prepayment option, 12 U.S.C. 4101. The 1996 Housing Opportunity Program Extension Act restored prepayment rights to developers still in the program.Four “first wave plaintiffs” (FWPs) owned their properties before the Preservation Statutes and sold after their enactment, consistent with the 1990 Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA) to organizations that preserved the rent restrictions. One FWP owned its property before the Preservation Statutes and remained in the program, obtaining HUD financial incentives in exchange for abiding by the restrictions for the property's "remaining useful life.” The final FWP (Casa) purchased its property in 1991 and sold pursuant to LIHPRHA. The FWPs alleged regulatory taking. The Claims Court applied the “Penn Central” three-factor test and rejected the claims on summary judgment.The Federal Circuit affirmed with respect to Casa, a sophisticated investor that voluntarily purchased its property with knowledge that it had no prepayment option and had no reasonable investment-backed expectation. The court otherwise vacated. The character of the governmental action and the investment-backed expectations weighed against summary judgment and the Claims Court did not consider certain genuine issues of fact regarding the calculations of economic impact. View "Anaheim Gardens, L.P. v. United States" on Justia Law

The Ninth Circuit affirmed the district court's dismissal of a 42 U.S.C. 1983 petition raising an as-applied challenge to the Expedited Conversion Program. The Program allows property owners to convert their tenancy-in-common properties into condominium properties on the condition that the owners agree to offer any existing tenants lifetime leases in units within the converted property.The panel held that plaintiffs' takings challenge was unripe, because plaintiffs did not ask the City for an exemption from the lifetime lease requirement, and thus failed to satisfy the separate finality requirement in Williamson County Regional Planning Commission v. Hamilton Bank of Johnson City, 473 U.S. 172 (1985). The finality requirement survived Knick v. Township of Scott, 139 S. Ct. 2162 (2019), and consequently continues to be a requirement for bringing regulatory takings claims such as plaintiffs' in federal court. Furthermore, plaintiffs knowingly waived their right to seek an exemption and their arguments to the contrary were unpersuasive. View "Pakdel v. City and County of San Francisco" on Justia Law