Justia Real Estate & Property Law Opinion Summaries

Articles Posted in Constitutional Law
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The Eleventh Circuit affirmed the denial of the City's motions for judgment as a matter of law and for a new trial in an inverse condemnation action. In this case, the underlying dispute involved a beachfront parcel owned by plaintiffs, which experienced significant public usage. The court held that the evidence at trial supported the jury's finding that a physical taking occurred through the continuous occupation of plaintiffs' property by members of the general public where the City encouraged public occupation by placing beach access signs, clearing vegetation, creating nearby parking spaces, hosting events at the property, and refusing to remove trespassers. The court also held that there was no basis to grant a new trial. Finally, on the City's request for fee simple ownership of the beach parcel upon payment of the judgment—the court held that such relief was not warranted under Florida law and the district court did not abuse its discretion in denying the City's request to transfer title. The court held that the City has paid for, and was entitled to, a permanent easement across plaintiffs' beach property for the benefit of the public and directed the district court to amend its judgment to reflect this permanent easement. View "Chmielewski v. City of St. Pete Beach" on Justia Law

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M.A.K. Investment Group, LLC owned several parcels of property in Glendale, Colorado. The City adopted a resolution declaring several of M.A.K.’s parcels “blighted” under state law. Glendale never notified M.A.K. of its resolution or the legal consequences flowing from it. The blight resolution began a seven-year window in which the City could begin condemnation proceedings against M.A.K.’s property. It also started the clock on a thirty-day window in which M.A.K. had a right to seek judicial review of the blight resolution under state law. Receiving no notice, M.A.K. did not timely seek review. M.A.K. argued Colorado’s Urban Renewal statute, both on its face and as-applied to M.A.K., violated due process because it did not require municipalities to notify property owners about a blight determination, or the thirty days owners had to seek review. The Tenth Circuit concluded the statute was unconstitutional as applied to M.A.K. because M.A.K. did not receive notice that Glendale found its property blighted. Because of this, the Court did not decide whether the statute was unconstitutional on its face. As for M.A.K.’s second argument, the Court held due process did not require Glendale to inform M.A.K. about the thirty-day review window. View "M.A.K. Investment Group v. City of Glendale" on Justia Law

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At issue was when the claims that Plaintiffs asserted against Defendant, the Town of Carthage, accrued and whether Plaintiffs’ claims were barred by a one-year, two-year, three-year, or ten-year statute of limitations and the doctrine of estoppel by the acceptance of benefits. The Supreme Court held (1) Plaintiffs’ cause of action accrued upon the Town’s exaction of the unlawful impact fees against Plaintiffs; (2) Plaintiffs’ claims against the Town arose from a liability created by statute that was subject to the three-year statute of limitations set out in N.C. Gen. Stat. 1-52(2); and (3) Plaintiffs’ claims against the Town were not barred by the doctrine of estoppel by the acceptance of benefits. View "Quality Built Homes Inc. v. Town of Carthage" on Justia Law

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The Supreme Court reversed the final judgment of the trial court in this eminent domain case granting $167,866 in damages to the landowner, holding that the trial court erred in disallowing the expert witness for the Commissioner of Highways from testifying.The Commissioner initiated this condemnation proceeding to acquire a strip of commercial property to create a multi-use trial. At trial to determine just compensation, the trial court allowed the landowner’s expert witness to testify that the take caused $193,270 in damages to the remainder but disallowed the Commissioner’s expert witness from testifying that the take caused $0 in damages to the remainder. The Supreme Court reversed and remanded the case for retrial, holding that the trial court erred by excluding the Commissioner’s expert witness testimony. View "Commissioner of Highways v. Karverly, Inc." on Justia Law

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HH intended to open an Indianapolis retail establishment, “Hustler Hollywood,” entered a 10-year lease, and applied for sign and building permits. HH’s proposed store was located in a zoning district that prohibited “adult entertainment businesses.” The Department of Business and Neighborhood Services determined that HH was an adult entertainment business; the Board of Zoning Appeals affirmed. HH sought a declaratory judgment that the ordinance violated its First and Fourteenth Amendment rights. The district court denied HH’s motion for a preliminary injunction. On interlocutory appeal with respect to its as-applied First Amendment claim, the Seventh Circuit affirmed. HH’s speech has not been silenced or suppressed; HH has only been told that it cannot operate in a particular commercial district. The ordinance is “content-neutral” and the city’s interest in reducing the secondary effects of adult businesses is a sufficient or substantial interest. Application of the ordinance resulted only in an incidental restriction on HH’s speech in a particular location. HH presented no evidence that officials displayed any bias or censorial intent in their determinations; the city was under no constitutional obligation to inspect the property or allow HH to open conditionally before making its determination. View "HH-Indianapolis, LLC v. Consolidated City of Indianapolis" on Justia Law

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Plaintiffs leased part of Love Field airport from the City of Dallas and constructed a six-gate airline terminal. Plaintiffs claim that the Wright Amendment Reform Act of 2006 (WARA), 120 Stat. 2011, effected a regulatory taking of their leases and a physical taking of the terminal because the statute codified a private agreement in which Dallas agreed to bar the use of plaintiffs’ gates for commercial air transit and to acquire and demolish plaintiffs’ terminal. The Claims Court found that WARA's enactment constituted a per se regulatory taking of plaintiffs’ leaseholds under Supreme Court precedent, Lucas, and a regulatory taking of the leaseholds under Penn Central, and a physical taking of the terminal. The Federal Circuit reversed. Noting the history of regulation of Love Field and limitations in place before WARA, the court stated there can be no regulatory taking because plaintiffs cannot demonstrate that their ability to use their property for commercial air passenger service pre-WARA had any value. Plaintiffs’ reasonable, investment-backed expectations are limited by the regulatory regime in place when they acquired the leases. Rejecting a claim of physical taking the court reasoned that a requirement that federal funds not be used for removal of plaintiffs’ gates explicitly distances the federal government from Dallas’ intended action. View "Love Terminal Partners, L.P. v. United States" on Justia Law

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The Ninth Circuit reversed the district court's judgment and remanded with instructions to enter judgment in favor of defendant in an action brought by the owner of a mobile home park alleging that the City engaged in an unconstitutional taking. Plaintiff alleged that the City violated the Fifth Amendment when it approved a lower rent increase than he had requested. The panel applied the factors in Penn Central Transportation Co. v. City of New York, 438 U.S. 104 (1978), and held that plaintiff did not present sufficient evidence to create a triable question of fact as to the economic impact caused by the City's denial of larger rent increases; plaintiff failed to present sufficient evidence supporting its investment-backed expectations claim; and the character of the City's action could not be characterized as a physical invasion by the government. Based on the evidence, the panel held that no reasonable finder of fact could conclude that the denials of plaintiff's requested rent increases were the functional equivalent of a direct appropriation of the property. View "Colony Cove Properties, LLC v. City of Carson" on Justia Law

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Saint Bernard Parish Government and other owners of real property in St. Bernard Parish or in the Lower Ninth Ward of the City of New Orleans sued under the Tucker Act, 28 U.S.C. 1491(a)(1), alleging a taking. They claimed that the government was liable for flood damage to their properties caused by Hurricane Katrina and other hurricanes. Plaintiffs’ theory was that the government incurred liability because of government inaction, including the failure to properly maintain or to modify the Mississippi River-Gulf Outlet (MRGO) channel, and government action (the construction and operation of the MRGO channel). The Claims Court found a taking occurred and awarded compensation. The Federal Circuit reversed. The government cannot be liable on a takings theory for inaction and the government action in constructing and operating MRGO was not shown to have been the cause of the flooding. The Claims Court failed to apply the correct legal standard, which required that the causation analysis account for government flood control projects that reduced the risk of flooding. View "St. Bernard Parish Government v. United States" on Justia Law

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The Supreme Court reversed the decision of the court of appeals affirming the circuit court’s grant of summary judgment in favor of the City of Oshkosh in this action challenging the special assessment imposed by the City following the reconfiguration of a traditional traffic light intersection into a roundabout. The Court held (1) the term “special benefits” in Wisconsin’s eminent domain statute has the same meaning in Wisconsin’s special assessment statute, and the City’s admission that special benefits are non-existent in the context of an earlier eminent domain proceeding constitutes relevant evidence in a later challenge to the special assessment; and (2) the court of appeals erred in concluding that Plaintiff failed to overcome the presumption of correctness afforded the City’s special assessment and to establish sufficient genuine issues of material fact. The Court remanded the case to the circuit court for a trial. View "CED Properties, LLC v. City of Oshkosh" on Justia Law

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Thorncreek, a Park Forest townhouse complex, applied to the Village for a permit to use a vacant townhouse as a business office but began to conduct its business from the townhouse without a permit. The Village cited it for zoning violations and operating without the required permit. The Village later filed suit to halt the zoning and operating violations and to redress certain building-code violations. Thorncreek counterclaimed against the Village and 10 officials, claiming civil-rights violations under 42 U.S.C. 1981, 1983, 1985, and 1986 and the Illinois Civil Rights Act. Two Thorncreek "areas" went into foreclosure. Thorncreek blamed the Village’s regulatory overreach in denying a business license, interfering with business operations, refusing to grant a conditional use permit, failing to issue a certificate of occupancy, and unequally enforcing a building-code provision requiring electrical upgrades, based on irrational animus against Clapper, the owner, and racial bias against its black residents. A jury found the Village and Village Manager Mick liable for a class-of-one equal-protection violation; found Mick and Kerestes, the director of community development, liable for conspiracy (section 1985(3)); otherwise rejected the claims, and awarded $2,014,000 in compensatory damages. Because the jury rejected the race-based equal-protection claim, the judge struck the verdict against Kerestes. The judge awarded $430,999.25 in fees and $44,844.33 in costs. The Seventh Circuit affirmed, rejecting challenges to the judgment against Mick, the admission of evidence concerning Clapper’s wealth, and the admission of Thorncreek’s financial records. View "Thorncreek Apartments I, LLC v. Village of Park Forest" on Justia Law