Justia Real Estate & Property Law Opinion Summaries

A group of landlords and property owners in New York's Hudson Valley region challenged the constitutionality of the 2023 amendments to New York's rent stabilization law. These amendments, known as the Vacancy Provisions, allow municipalities to impose civil penalties on landlords who do not cooperate with vacancy surveys and to presume zero vacancies for nonresponsive landlords. The landlords argued that these provisions authorize warrantless searches of their records without an opportunity to challenge the searches' scope, violating the Fourth Amendment, and that they prevent landlords from contesting vacancy calculations, violating procedural due process under the Fourteenth Amendment.The United States District Court for the Northern District of New York denied the landlords' motion for a preliminary injunction and dismissed their complaint for failure to state a claim. The landlords appealed the decision.The United States Court of Appeals for the Second Circuit affirmed the district court's judgment. The court held that the Vacancy Provisions are facially valid under the Fourth Amendment because landlords have adequate pre-compliance review available under Article 78 of the New York Civil Practice Law and Rules. The court also found that the searches authorized by the Vacancy Provisions are not unreasonable in every situation, given the ample notice and minimal penalties involved. Additionally, the court held that the Vacancy Provisions do not violate procedural due process because landlords can contest vacancy calculations at public hearings before rent stabilization is adopted and through Article 78 after adoption. View "Hudson Shore v. State of New York" on Justia Law

Norfolk Southern Railway Company challenged the constitutionality of Code § 56-16.3, which allows broadband service providers to install fiber optic cables across railroad property. The statute, enacted in 2023, aims to promote broadband expansion in Virginia. Cox Communications filed applications to install fiber optic cables under Norfolk Southern’s tracks, which Norfolk Southern did not initially oppose. However, a dispute arose over the license fees, leading Cox to proceed without a licensing agreement, prompting Norfolk Southern to seek relief from the State Corporation Commission (the “Commission”).The Commission rejected Norfolk Southern’s arguments without a hearing, finding the claims insufficient to establish undue hardship. Norfolk Southern appealed to the Supreme Court of Virginia, which stayed the Commission’s judgment during the appeal.The Supreme Court of Virginia reviewed the case de novo, focusing on whether Code § 56-16.3 violated Article I, Section 11 of the Virginia Constitution. The court emphasized that eminent domain statutes must be strictly construed and that the burden of proving public use lies with the condemnor. The court found that Code § 56-16.3 did not reference public use and allowed a private company to take property for financial gain, which is not a public use under the Virginia Constitution.The court held that the application of Code § 56-16.3 in this case constituted a taking of Norfolk Southern’s property for a nonpublic use, violating the Virginia Constitution. Consequently, the court reversed the Commission’s judgment and remanded the case for entry of judgment in favor of Norfolk Southern. View "Norfolk Southern Railway Co. v. SCC" on Justia Law

In 2017, Gratiot County foreclosed on Donald Freed’s home due to unpaid taxes. Freed’s property, valued at $98,800, was sold for $42,000, although he owed just under $1,110. The county kept all proceeds from the sale, as Michigan’s General Property Tax Act (GPTA) did not require returning surplus proceeds to the property owner. Freed sued Gratiot County and its treasurer, Michelle Thomas, under 42 U.S.C. § 1983, claiming a violation of the Fifth and Fourteenth Amendments. Michigan intervened to defend the GPTA’s constitutionality.The United States District Court for the Eastern District of Michigan dismissed Freed’s complaint for lack of subject matter jurisdiction, citing Wayside Church v. Van Buren County. Freed appealed, and the Sixth Circuit reversed the dismissal, recognizing that the Supreme Court’s ruling in Knick v. Township of Scott partially abrogated Wayside Church. On remand, the district court granted partial summary judgment to Freed, affirming that the county had to pay Freed the difference between the foreclosure sale and his debt, but dismissed claims against Thomas due to qualified immunity.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed Freed’s entitlement to attorneys’ fees from Gratiot County and Michigan. However, the court vacated the district court’s fee calculation and remanded for further proceedings. The Sixth Circuit held that Freed prevailed against both Gratiot County and Michigan, and Michigan’s intervention under 28 U.S.C. § 2403(b) subjected it to attorneys’ fee liability. The court found the district court’s explanation for reducing Freed’s hours and rate by 35% insufficient and required a more detailed justification for the fee award calculation. View "Freed v. Thomas" on Justia Law

Two property owners in the extraterritorial jurisdiction (ETJ) of College Station, Texas, challenged city ordinances regulating off-premise signage and driveway construction. They argued that these regulations, imposed without granting them the right to vote in city elections, violated the Texas Constitution's requirement for a "republican form of government." The plaintiffs sought a declaration that the ordinances were void and unenforceable.The trial court dismissed the case with prejudice, agreeing with the City that the form of local government is a political question for the legislature, not the courts. The plaintiffs appealed, but while the appeal was pending, the legislature amended the law to allow ETJ residents to unilaterally opt out of a city's ETJ. The Court of Appeals for the Sixth District of Texas affirmed the trial court's dismissal, not addressing the new statutory opt-out provision.The Supreme Court of Texas reviewed the case and determined that the legislative change provided a nonjudicial remedy that could moot the plaintiffs' constitutional claims. The court vacated the lower court judgments and remanded the case to the trial court with instructions to abate the proceedings, allowing the plaintiffs a reasonable opportunity to complete the opt-out process. The court emphasized the importance of judicial restraint and constitutional avoidance, noting that the new law offered a means of relief that should be pursued before addressing broader constitutional questions. View "ELLIOTT v. CITY OF COLLEGE STATION, TEXAS" on Justia Law

In June 2020, the North Dakota Department of Health inspected ND Indoor RV Park, LLC and found several health, safety, and fire code violations. The Park was informed that its 2020 operating license would be revoked unless the violations were corrected. The Park did not address the violations, leading to the initiation of the license revocation process. The Park also requested a renewal of its license for 2021, which was denied due to the existing violations. The Park was allowed to operate until the hearing proceedings were final. The Park later withdrew its request for a hearing, and the Department of Health dismissed the renewal application and closed the case. Subsequently, the Park sold its property.The Park filed a complaint against the State of North Dakota, alleging regulatory taking, deprivation of substantive and procedural due process, inverse condemnation, unlawful interference with business relationships, systemic violation of due process, and estoppel. The State moved for judgment on the pleadings, claiming qualified immunity for individual defendants and lack of subject matter jurisdiction on the takings claims. The district court denied the State’s motion for summary judgment on the takings and due process claims but granted summary judgment on the unlawful interference claim. The remaining claims were dismissed by stipulation.The North Dakota Supreme Court reviewed the case. The court granted a writ of supervision, directing the district court to dismiss counts II and III because the individual defendants were entitled to qualified immunity. The court also directed the dismissal of counts I and IV for lack of subject matter jurisdiction, as the Park failed to exhaust administrative remedies. The court concluded that the Park could not prevail on its substantive and procedural due process claims and that the district court lacked jurisdiction over the takings claims. View "ND Indoor RV Park v. State" on Justia Law

A group of landowners in Indiana, who own land adjacent to the former Indiana Nickel Plate Line, sued the United States in the Court of Federal Claims. They sought compensation for an alleged taking under the Fifth Amendment, arguing that the issuance of Notices of Interim Trail Use (NITUs) under the National Trails System Act Amendments of 1983 constituted a taking of their property.The Court of Federal Claims rejected the plaintiffs' request to certify a question to the Indiana Supreme Court. It held that the plaintiffs lacked a compensable property interest because the releases signed by their predecessors-in-interest conveyed fee simple estates to the Peru and Indianapolis Railroad Company. The court granted summary judgment in favor of the United States.The United States Court of Appeals for the Federal Circuit reviewed the case. The court affirmed the lower court's decision, holding that under Indiana law, the releases conveyed fee simple titles to the railroad company. The court relied on the Indiana Supreme Court's decisions in Newcastle & Richmond Railroad Co. v. Peru & Indianapolis Railroad Co. and Indianapolis, Peru, & Chicago Railway Co. v. Rayl, which established that releases executed under the railroad's legislative charter conveyed fee simple estates. The court also declined to certify a question to the Indiana Supreme Court, finding that the relevant Indiana law was clear and controlling. View "ATS FORD DRIVE INVESTMENT, LLC v. US " on Justia Law

Kenneth Michael Sikorsky purchased a property in Newburgh, New York, in 2006 but fell behind on his property taxes, leading to foreclosure by the City of Newburgh in 2012. Sikorsky and the City later agreed on a contract for Sikorsky to repurchase the property, but the sale fell through when Sikorsky failed to make the required payments. The City subsequently sold the property for $350,500, significantly more than the $92,786.24 Sikorsky owed in taxes, but did not return the surplus to Sikorsky.The United States District Court for the Southern District of New York dismissed Sikorsky's pro se complaint, which alleged a constitutional taking and violations of New York state laws. Sikorsky, now represented by counsel, appealed the dismissal, arguing that he had stated a valid claim under the Takings Clause of the Fifth Amendment and that he had a right to recover under new New York state laws enacted during the appeal.The United States Court of Appeals for the Second Circuit reviewed the case and concluded that Sikorsky had indeed stated a claim for a constitutional taking against the City of Newburgh and Jeremy Kaufman. The court found that the new New York laws did not provide Sikorsky with a remedy, as they only applied to properties sold on or after May 25, 2023, or to those with active proceedings under N.Y. CPLR § 7803(1) on the effective date of the act. Since Sikorsky's property was sold in June 2021 and he had not initiated an Article 78 proceeding, he lacked a local remedy.The Second Circuit vacated the District Court's dismissal of Sikorsky's constitutional taking claims against the City of Newburgh and Jeremy Kaufman and remanded the case for further proceedings consistent with its opinion. View "Sikorsky v. City of Newburgh" on Justia Law

Lathfield Investments, LLC, Lathfield Holdings, LLC, and Lathfield Partners, LLC (collectively, "Lathfield") own three commercial buildings in Lathrup Village, Michigan, rented to various commercial tenants. The City of Lathrup Village and its Downtown Development Authority (collectively, the "City") require landlords to obtain a rental license and list each tenant's name and principal business. Lathfield applied for a landlord rental license in July 2020 but did not list the required tenant information, leading to the denial of their application and their tenants' business license applications. Lathfield sued the City, alleging unlawful compulsion to apply for unnecessary licenses and make unnecessary property improvements, bringing eleven claims, nine against the City.The United States District Court for the Eastern District of Michigan granted summary judgment to the City on all nine claims. Lathfield appealed, arguing that the City improperly required site plan approval, violated due process and equal protection rights, and engaged in inverse condemnation, among other claims.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The court held that Lathfield's request for declaratory relief regarding site plan approval was moot since the site plan process was already completed. The court also found that Lathfield was required to obtain a general business license under the City Code and that the City Code's tenant registration requirement applied to Lathfield. The court rejected Lathfield's due process claims, noting that the City’s adoption of the Michigan Building Code was a legislative act not subject to procedural due process requirements. The court also dismissed Lathfield's equal protection claim due to a lack of evidence of differential treatment and found no basis for the Contracts Clause claim under 42 U.S.C. § 1983. Lastly, the court concluded that Lathfield failed to establish an inverse condemnation claim or a civil conspiracy. View "Lathfield Investments, LLC v. City of Lathrup Village, Mich." on Justia Law

The City of Tea passed a resolution imposing a special assessment on properties abutting a road construction project, including property owned by KJD, LLC. The City found that the improvement conferred special benefits on the abutting properties beyond those experienced by the public. KJD objected to the assessment, arguing it was unconstitutional as the project did not confer a special benefit on its property. The circuit court held that KJD did not rebut the presumption that the City’s assessment was valid and did not prove by clear and convincing evidence that the City’s findings were incorrect, thus denying KJD’s objection.KJD appealed to the Supreme Court of South Dakota. The Supreme Court reviewed the case de novo, noting that the City’s findings in its resolution are presumed correct and that KJD had the burden to rebut this presumption with substantial, credible evidence. The Court found that KJD failed to present such evidence. The City’s findings included that the project would improve aesthetics, safety, and access to the properties, which are considered special benefits. The Court also noted that the City’s method of calculating the assessment based on the cost of the project was constitutionally permissible.The Supreme Court of South Dakota affirmed the circuit court’s decision, holding that KJD did not meet its burden of proving by clear and convincing evidence that the City’s special assessment was unconstitutional. The Court concluded that the City’s findings were supported by the record and that the special assessment did not exceed the value of the benefits conferred on KJD’s property. View "KJD, LLC v. City Of Tea" on Justia Law

Jewels Helping Hands and Ben Stuckart challenged a proposed initiative by Spokane resident Brian Hansen, which aimed to expand the criminalization of camping within 1,000 feet of schools, parks, and childcare facilities. The initiative was a response to increased crime rates near a homeless encampment called Camp Hope. Spokane had previously adopted a comprehensive ordinance regulating public camping, which included provisions to comply with the Ninth Circuit's Martin v. City of Boise decision, barring criminalization of camping when no shelter space was available.The trial court ruled that the plaintiffs had standing but found their claims without merit, allowing the initiative to proceed to the ballot. The Court of Appeals affirmed, holding that the initiative was within the scope of the local initiative power, not a zoning ordinance, did not conflict with state law, and was legislative rather than administrative.The Washington Supreme Court reviewed the case and disagreed with the lower courts. It held that the initiative was impermissibly administrative because it modified the details of Spokane's preexisting comprehensive policy on public camping. The court emphasized that local initiatives must be legislative in nature, creating new policies rather than administering existing ones. The court reversed the lower courts' decisions, ruling that the initiative exceeded the scope of the local initiative power. View "Jewels Helping Hands v. Hansen" on Justia Law