Justia Real Estate & Property Law Opinion Summaries
Articles Posted in Constitutional Law
Garofolo v. Ocwen Loan Serv., L.L.C.
Garofolo took out a $159,700 home-equity loan. She made timely payments and paid off the loan in, 2014. Ocwen had become the note’s holder. A release of lien was promptly recorded in Travis County, but Garofolo did not receive a release of lien in recordable form as required by her loan’s terms. Garofolo notified Ocwen she had not received the document. Upon passage of 60 days following that notification, and still without the release, Garofolo sued, alleging violation of the home-equity lending provisions of the Texas Constitution and breach of contract. She sought forfeiture of all principal and interest paid on the loan. The federal district court dismissed. The Fifth Circuit certified questions of law to the Texas Supreme Court, which responded that the constitution lays out the terms and conditions a home equity loan must include if the lender wishes to foreclose on a homestead following borrower default, but does not create a constitutional cause of action or remedy for a lender’s breach of those conditions. A post-origination breach of terms and conditions may give rise to a breach-of-contract claim for which forfeiture can sometimes be an appropriate remedy. When forfeiture is unavailable, the borrower must show actual damages or seek some other remedy such as specific performance. View "Garofolo v. Ocwen Loan Serv., L.L.C." on Justia Law
Tree of Life Christian Schools v. City of Upper Arlington
Because of zoning by Upper Arlington, a suburb of Columbus, Ohio, Tree of Life Christian Schools could not use its otherwise-unused land and building to operate a religious school. The government denied a rezoning application because such a use would not accord with provisions of the government’s Master Plan, which call for maintaining commercial use zoning to maximize tax revenue. TOL filed suit under the Religious Land Use and Institutionalized Persons Act (RLUIPA), 42 U.S.C. 2000cc– 2000cc-5, alleging that the government illegally failed to treat TOL Christian Schools on equal terms with nonreligious assemblies or institutions. The district court granted the government summary judgment. The Sixth Circuit reversed and remanded for resolution of the factual issue: whether the government treated nonreligious assemblies or institutions that would fail to maximize income-tax revenue in the same way it has treated the proposed religious school. View "Tree of Life Christian Schools v. City of Upper Arlington" on Justia Law
City of Chesapeake v. Dominion SecurityPlus Self Storage, LLC
The City filed a petition for condemnation asking for a determination of just compensation for property taken and damages to the residue. The circuit court awarded Dominion SecurityPlus Self Storage, LLC $44,141 for the value of the fee take and more than $2.1 million for the damages to the residue, including loss of visibility and loss of direct access. The Supreme Court reversed the judgment of the circuit court awarding Dominion damages to the residue and entered final judgment in favor of the City on that claim, holding that Dominion failed to present any evidence by which any of over $2.1 in damages that the circuit court awarded could be apportioned to the City’s take of a utility easement and a temporary construction easement outside the area of reservation. View "City of Chesapeake v. Dominion SecurityPlus Self Storage, LLC" on Justia Law
Rangen, Inc. v. Dept of Water Resources
This was an appeal of a district court order affirming in part an order issued by the Director of the Idaho Department of Water Resources (“IDWR”). In response to a delivery call filed by Rangen, Inc., the Director had issued an order curtailing certain junior-priority ground water pumping in the Eastern Snake Plain Aquifer (“ESPA”). The order provided that the junior-priority ground water users could avoid curtailment by participating in an approved mitigation plan. The Idaho Ground Water Appropriators, Inc. (“IGWA”) filed several mitigation plans for approval. The Director issued an order conditionally approving IGWA’s Fourth Mitigation Plan, which proposed leasing water from another surface water right holder and piping the water to the Rangen facility. Rangen petitioned for review. The district court upheld the Director’s order in significant part. Rangen appealed. Finding no reversible error with the district court's order, the Supreme Court affirmed. View "Rangen, Inc. v. Dept of Water Resources" on Justia Law
Klingsheim v. Cordell
The Cordells were the record owners of a tract of land in La Plata County (Tract1), and Mr. Cordell was also the record owner of an adjoining tract that had been deeded to him by his grandmother (Tract2). After the Cordells failed to pay the taxes owed on these properties for three successive years, Brenda Heller purchased tax liens for each tract and later assigned these liens to Bradley Klingsheim. Thereafter, Klingsheim requested deeds for the properties from the Treasurer. The question this case presented for the Colorado Supreme Court's review principally required the Court to determine the scope of a county treasurer’s duty of diligent inquiry, pursuant to section 39-11-128(1), C.R.S. (2015), in attempting to notify a taxpayer that his or her land may be sold to satisfy a tax lien. The Cordells contended that the deeds were void because the La Plata County Treasurer’s Office had not fulfilled its statutory duty of diligent inquiry in attempting to notify the Cordells that it would be issuing a tax deed for the Cordells’ properties. After review, the Supreme Court concluded that a county treasurer had an initial duty to serve notice of a pending tax sale on every person in actual possession or occupancy of the property at issue, as well as on the person in whose name the property was taxed or specially assessed, if upon diligent inquiry, such persons can be found in the county or if their residences outside the county are known. In addition, we hold that a treasurer owed a duty of further diligent inquiry after an initial notice has been sent only when the facts known to the treasurer show that the taxpayer could not have received the notice of the pending tax sale. The Court concluded the Treasurer satisfied its duty of diligent inquiry. In addition, the Court concluded that the notice that the Treasurer provided in this case satisfied due process requirements. View "Klingsheim v. Cordell" on Justia Law
Salt Lake City Corp. v. Evans Dev. Group, LLC
Salt Lake City Corp. used its power of eminent domain to condemn land owned by Evans Development Group, LLC in order to exchange the property for another piece of property owned by Rocky Mountain Power. The City filed a complaint asserting several public uses and public purposes for the condemnation. Evans moved for summary judgment, arguing that the City lacked statutory authority to condemn its property because the condemnation was not for a public use as required by Utah Code 78B-6-501. The City filed a cross-motion for partial summary judgment as to the issue of public use. The district court granted summary judgment in favor of the City. The Supreme Court reversed, holding that although a property exchange may not be completely prohibited by the relevant eminent domain statutes, it may not be accomplished in the manner attempted in this case. View "Salt Lake City Corp. v. Evans Dev. Group, LLC" on Justia Law
Estate of Richard J. Deeble v. Dep’t of Transp.
The Rhode Island Department of Transportation (RIDOT) condemned a parcel of real property owned by Richard Deeble and his wife for highway purposes. The Deebles subsequently died. RIDOT utilized only a portion of the condemned property in furtherance of the relocation of an interstate. Plaintiff, the Estate of Richard Deeble, sought declaratory and injunctive relief against RIDOT, asserting that should RIDOT seek to sell or lease the condemned property, the Estate was entitled to a right of first refusal to repurchase or lease the land in accordance with article 6, section 19 of the Rhode Island Constitution. The superior court justice concluded that the provisions of article 6, section 19 did not pass to the Estate. The Supreme Court affirmed, holding that the rights guaranteed by article 6, section 19 terminate upon the death of the original condemnee. View "Estate of Richard J. Deeble v. Dep’t of Transp." on Justia Law
Northeast Mental Health – Mental Retardation Commission v. Cleveland
The Northeast Mental Health-Mental Retardation Commission challenged the validity of a ninety-nine-year fixed-lease agreement with a private contractor, V.M. Cleveland. The Commission contracted to pay Cleveland $18,000 per month over a ninety-nine-year period to build and to lease a facility on land owned by the Commission. Payments continued uninterrupted for ten years, until the Commission became concerned about the agreement’s legality. The Commission stopped making payments and sought to rescind the agreement. The chancellor found that the agreement was enforceable and ordered the Commission to pay Cleveland $612,000 in back rent. The Commission appealed, arguing that the agreement’s ninety-nine-year duration rendered the agreement voidable at the Commission’s discretion as a matter of law due to the rule against binding successors. The Commission also argued that the specific terms of the agreement were unreasonable, illegal, or both, and thus void ab initio as a matter of law. The Supreme Court found that the agreement at issue here violated the common-law rule against binding successors, and as such reversed the chancellor’s judgment and rendered judgment in the Commission’s favor. View "Northeast Mental Health - Mental Retardation Commission v. Cleveland" on Justia Law
Northeast Mental Health – Mental Retardation Commission v. Cleveland
The Northeast Mental Health-Mental Retardation Commission challenged the validity of a ninety-nine-year fixed-lease agreement with a private contractor, V.M. Cleveland. The Commission contracted to pay Cleveland $18,000 per month over a ninety-nine-year period to build and to lease a facility on land owned by the Commission. Payments continued uninterrupted for ten years, until the Commission became concerned about the agreement’s legality. The Commission stopped making payments and sought to rescind the agreement. The chancellor found that the agreement was enforceable and ordered the Commission to pay Cleveland $612,000 in back rent. The Commission appealed, arguing that the agreement’s ninety-nine-year duration rendered the agreement voidable at the Commission’s discretion as a matter of law due to the rule against binding successors. The Commission also argued that the specific terms of the agreement were unreasonable, illegal, or both, and thus void ab initio as a matter of law. The Supreme Court found that the agreement at issue here violated the common-law rule against binding successors, and as such reversed the chancellor’s judgment and rendered judgment in the Commission’s favor. View "Northeast Mental Health - Mental Retardation Commission v. Cleveland" on Justia Law
High v. Kuhn
The special court of eminent domain granted Todd and Angela Kuhn’s petition for a private road across Cheryl High’s property in Gulfport. As grounds for their claim, the Kuhns utilized Mississippi Code Section 65-7-201 (Rev. 2012), which created a statutory right for private citizens to petition the special court of eminent domain when a private road over the land of another is necessary for ingress and egress. Section 110 of the Mississippi Constitution empowered the Legislature to create the statutory right to “private roads, where necessary for ingress and egress” upon “due compensation” to the property owners, this section was equally clear “such rights of way shall not be provided for in incorporated cities and towns.” Because the private property the Kuhns sought to condemn for a private road was in the incorporated City of Gulfport, the special court of eminent domain could not condemn High’s property for the Kuhns’ private benefit. So the Supreme Court reversed the special court of eminent domain’s order granting the Kuhns a private road under Section 65-7-201. View "High v. Kuhn" on Justia Law