Justia Real Estate & Property Law Opinion Summaries

In 2006 Conway contracted to sell land in Broadview to Donahue, who assigned the contract to Chicago Joe’s Tea Room, LLC. Chicago Joe’s sole manager applied for the required special-use permit. Broadview denied the application in 2007. The land sale contract never closed and the planned strip club never opened. The LLC and Conway filed suit in 2007 alleging that Broadview violated the First Amendment. Broadview amended its ordinances multiple times during the lawsuit. One amendment led District Judge Gottschall, to conclude that Broadview’s amendment to its adult-use setback ordinance was “aimed solely at Chicago Joe’s.” After the case was transferred to Judge Lee, the parties litigated renewed summary judgment motions. Judge Lee granted Broadview summary judgment on Chicago Joe’s declaratory judgment and injunction claims, but denied summary judgment on the damages claim. The Seventh Circuit concluded that the claim for injunctive relief that established interlocutory appellate jurisdiction is actually moot, and affirmed its dismissal. At every stage of the process, Chicago Joe’s has proposed a use of property prohibited by then-current local law, so it has no vested rights. Since 2007, Chicago Joe’s has proposed to use the property in a way prohibited by Illinois statute, without challenging that statute. View "Chicago Joe's Tea Room, LLC v. Village of Broadview" on Justia Law

The city owned land and a townhome in New Orleans after 1998; its previous owner, Jett, neglected to pay his taxes. Notwithstanding its recorded ownership, the city instituted Code Enforcement proceedings against Jett in 2012. The Garretts purchased the property on October 2, 2015, and recorded the conveyance on October 14. They claim that the building was structurally sound. The city continued to pursue Jett. An administrative judgment was entered on October 30, ordering Jett to pay fines and warning that the building could be demolished. A lien was recorded on December 7. The Garretts were not named and received no notice. On January 15, 2016, their realtor noticed a sign advising upcoming demolition of the property. They contacted the city, which canceled the lien. E-mail exchanges indicated that the Garretts intended to resolve all code issues. On January 27, the city demolished the townhouse. Denying the Garretts' request for compensation, the city sent a bill for the demolition costs. They did not appeal but filed suit alleging denial of due process and just compensation. The district court dismissed the claim as jurisdictionally unripe because they failed to seek compensation in state court. The Fifth Circuit vacated, finding the due process claim, predicated on lack of notice and a hearing, ripe, given the uncertainty of remedies in a state court inverse condemnation suit. The court concluded that the other claims were ripe or would be best resolved in the same suit. View "Archbold-Garrett v. New Orleans City" on Justia Law

In this appeal of a condemnation judgment the Supreme Court reversed the decision of the court of appeals holding the trial court’s evidentiary rulings were an abuse of discretion and reinstated the judgment of the trial court.The State planned to condemn a portion of a 33,000 square-foot property owned by Stephen and Kimberly Morale in the Town of Little Elm. The special commissioners awarded the Morales $49,804 in damages for the taking. The Morales objected to the award and demanded a jury trial. The jury awarded $1,064,335 to the Morales, and the trial court essentially rendered judgment on the verdict. The court of appeals reversed and remanded for a new trial, holding that the trial court erroneously admitted and excluded various evidence at trial, thereby probably resulting in the rendition of an improper judgment. The Supreme Court reversed, holding that the trial court’s challenged evidentiary rulings were not an abuse of discretion. View "Morale v. State" on Justia Law

A right to visibility of private property from a public road is not a cognizable right giving rise to a protected property interest.Adams Outdoor Advertising Limited Partnership brought a takings claim against the City of Madison, asserting that its property was taken when the City constructed a pedestrian bridge over the Beltline Highway that blocked the visibility from the highway of the west-facing side of Adams’ billboard. The court of appeals affirmed the circuit court’s grant of summary judgment in favor of the City, concluding that Adams failed to demonstrate a cognizable right underlying its asserted protected property interest. On appeal to the Supreme Court, Adams argued that a taking occurred because the City deprived it of all economically beneficial use of the west-facing side of its billboard. The Supreme Court disagreed, holding that Adams’ taking claim failed. View "Adams Outdoor Advertising Limited Partnership v. City of Madison" on Justia Law

The Surface and Transportation Board (STB) has regulatory authority over rail carriers, 49 U.S.C. 10501(b). A "discontinuance" allows a rail carrier to preserve a rail corridor for possible reactivation of service; "abandonment" removes the line from the system and terminates the railroad’s common carrier obligation. The 1983 Amendments to the National Trails System Act created an alternative process, “railbanking,” 16 U.S.C. 1241, which maintains STB jurisdiction over the dormant corridor, but allows a third party to assume responsibilities for the right-of-way, preserve the right-of-way for future rail use, and, in the interim, convert the corridor into a recreational trail. The railroad first initiates abandonment proceedings; a party interested in acquiring the corridor then requests an STB Notice of Interim Trail Use (NITU). If an agreement is reached, the STB suspends abandonment proceedings, preventing state law reversionary interests in the corridor from vesting. Property owners who believed they had a reversionary interest began claiming that railbanking constituted a taking: the threshold question is whether the claimant has a compensable property interest, which is often answered by analyzing the original deeds that conveyed the property to the railroad. In 2012, BNSF initiated proceedings to abandon a corridor. The Chicago Department of Transportation indicated interest in railbanking. The STB issued an NITU, giving BNSF until April 2014, to negotiate an agreement, after which the corridor would be abandoned. After numerous extensions, BNSF has neither reached an agreement nor abandoned the corridor. The Federal Circuit affirmed the Claims Court: the deeds between the predecessors-in-interest to the claimants and the original railroad conveyed the property to the railroad in fee simple rather than only an easement. There was no taking of any reversionary interest. View "Chicago Coating Co., LLC v. United States" on Justia Law

Minnesota law provides that “the dissolution or annulment of a marriage revokes any revocable . . . beneficiary designation . . . made by an individual to the individual’s former spouse,” Minn. Stat. 524.2–804. If an insurance policyholder does not want that result, he may rename the ex-spouse as beneficiary. Sveen and Melin were married in 1997. Sveen purchased a life insurance policy, naming Melin as the primary beneficiary and designating his children from a prior marriage as contingent beneficiaries. The marriage ended in 2007. The divorce decree did not mention the insurance policy. Sveen did not revise his beneficiary designations. After Sveen died in 2011, Melin and the Sveen children claimed the insurance proceeds. Melin argued that because the law did not exist when the policy was purchased, applying the later-enacted law violated the Contracts Clause. The Supreme Court reversed the Eighth Circuit, holding that the retroactive application of Minnesota’s law does not violate the Contracts Clause. The test for determining when a law crosses the constitutional line first asks whether the state law has “operated as a substantial impairment of a contractual relationship,” considering the extent to which the law undermines the contractual bargain, interferes with a party’s reasonable expectations, and prevents the party from safeguarding or reinstating his rights. If such factors show a substantial impairment, the inquiry turns to whether the state law is drawn in a “reasonable” way to advance “a significant and legitimate public purpose.” Three aspects of Minnesota’s law, taken together, show that the law does not substantially impair pre-existing contractual arrangements. The law is designed to reflect a policyholder’s intent and to support, rather than impair, the contractual scheme. The law is unlikely to disturb any policyholder’s expectations at the time of contracting, because an insured cannot reasonably rely on a beneficiary designation staying in place after a divorce. Divorce courts have wide discretion to divide property upon dissolution of a marriage. The law supplies a mere default rule, which the policyholder can easily undo. View "Sveen v. Melin" on Justia Law

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

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

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

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