Justia Real Estate & Property Law Opinion Summaries

Chicago’s Department of Administrative Hearings determined that Discount Inn had violated city ordinances, providing that “any person who owns or controls property within the city must cut or otherwise control all weeds on such property so that the average height of such weeds does not exceed ten inches” and that “it shall be the duty of the owner of any open lot ... to cause the lot to be surrounded with a noncombustible screen fence … . P. The owner shall maintain any such fence in a safe condition." Both ordinances provide for fines. The Seventh Circuit affirmed dismissal of constitutional challenges to the ordinances.The fencing of vacant lots is important to enable the identification of such land as being owned rather than abandoned, and to discourage squatters and the use of vacant lots as sites for the sale of illegal drugs. While expressing concern about the lack of a definition of “weed” and enforcement of the average height limit, the court stated that taken to its logical extreme, Discount Inn’s defense of the weed would preclude any efforts by local governments to prevent unsightly or dangerous uses of private property. View "Discount Inn, Inc. v. City of Chicago" on Justia Law

In 1993, the Patereks, owners of PME, an injection molding company, relocated the business from Macomb County to the Village Armada, after purchasing a former high school auto shop. The Planning Commission issued the required Special Approval Land Use permit (SALU) with restrictions. Over the following years, the Patereks were occasionally in violation of the SALU, obtained modifications, and expanded the business. Paterek became involved in local government and was sometimes at odds with other local politicians, including a planning commissioner. Patereks ultimately filed suit under 42 U.S.C. 1983, after the village declined perform inspections and to issue a certificate of occupancy for a 2013 expansion. The Sixth Circuit reversed summary judgment in favor of the defendants, reasoning that a jury could reasonably find that defendants retaliated against Patereks for having complained about officials, in violation of the First Amendment; that defendants arbitrarily and capriciously ticketed Patereks, in violation of substantive due process; that defendants, due to their animus against Patereks, subjected PME to disparate treatment, in violation of the Equal Protection Clause; and that the district court erroneously denied Patereks’ civil contempt motion. View "Paterek v. Village of Armada" on Justia Law

The Park, a mobile home park, filed suit against the City, challenging Ordinance 644, asserting claims for, among other things, violations of the Takings, Due Process, and Equal Protection Clauses of the United States Constitution. Ordinance 644's purpose is to “stabilize mobile home park space rents” to, among other things, “[p]revent exploitation of the shortage of vacant mobile home park spaces,” “[p]revent excessive and unreasonable . . . rent increases,” and “[r]ectify the disparity of bargaining power” between park owners and mobile home owners. The district court granted the City's motion to dismiss. The court held that no regulatory taking occurred here and that the Park’s self-styled “private takings claim” is not a separately cognizable claim. The court concluded that the Park’s “private takings claim” cannot serve as a means to evade Penn Central Transportation Company v. City of New York scrutiny. And in any event, as articulated here, such claim fails because it is a thinly veiled facial challenge, which is both time barred and lacks merit. Further, the court was not persuaded by the related due process and equal protection claims. Accordingly, the court affirmed the district court’s dismissal of the case. View "Rancho de Calistoga v. City of Calistoga" on Justia Law

Appellant Columbia Venture, LLC, purchased approximately 4500 acres of land along the eastern bank of the Congaree River in Richland County, intending to develop the property. Columbia Venture knew at the time of the purchase that the Federal Emergency Management Agency (FEMA) was in the process of revising the area flood maps and designating most of the property as lying within a regulatory floodway. Pursuant to federal law, development is generally not permitted in a regulatory floodway. When Columbia Venture's efforts to remove the floodway designation were unsuccessful, Columbia Venture sued Richland County, alleging an unconstitutional taking. By consent, the case was referred to a special referee, who after numerous hearings and a multi-week trial dismissed the case and entered judgment for Richland County. The Special Referee concluded that Columbia Venture's investment-backed expectations were not reasonable in light of the inherent risk in floodplain development. Moreover, the Special Referee concluded that, on balance, the "Penn Central" factors preponderated against a taking and therefore that the County could not be responsible for any diminution in the property's value. Like the able Special Referee, the Supreme Court found Richland County's adoption of floodway development restrictions and the County's required utilization of FEMA flood data did not constitute a taking of any sort, and affirmed the Special Referee's decision. View "Columbia Venture v. Richland County" on Justia Law

In 2008, plaintiffs obtained a loan from Quicken and granted a mortgage on their property to Quicken’s nominee, Mortgage Electronic Registration Systems, “MERS.” The note and mortgage ultimately were conveyed to Bank of America. Plaintiffs defaulted. Bank of America foreclosed by advertisement under Mich. Comp. Laws 600.3201. The Federal Home Loan Mortgage Corporation, “Freddie Mac,” purchased the property at a foreclosure sale. The plaintiffs did not exercise their “equity of redemption” within the six-month statutory redemption period under Michigan law. Freddie Mac initiated eviction. In their counter-complaint, plaintiffs argued that the foreclosure was fraudulent and violated Michigan law because there was no chain of title evidencing ownership by Bank of America, which, therefore, did not have standing to foreclose; Freddie Mac was negligent for failing to evaluate plaintiffs’ loan under the Home Affordable Modification Program; the foreclosure and subsequent eviction were “wrongful” under Michigan law; and Freddie Mac violated their due process rights because its status as a government actor precluded foreclosure by advertisement. The Sixth Circuit affirmed dismissal of plaintiffs’ claims, reasoning that any negligence was not attributable to Freddie Mac and compliance with Michigan’s foreclosure-by-advertisement procedures satisfied the requirements of the Due Process Clause. View "Rush v. Freddie Mac" on Justia Law

Stars is a nude dancing establishment in Neenah, Wisconsin. When Stars opened in 2006, the County had a zoning ordinance governing Adult Entertainment Overlay Districts. Stars’s application was stalled because, all parties agree, the 2006 ordinance violated the First Amendment. Its owner sued in federal court, arguing that anything is legal that is not forbidden, and Staars was banned only by an unconstitutional ordinance: therefore, Stars was permitted in 2006 and is now a legal nonconforming use that cannot be barred by a later ordinance. The court granted summary judgment to Winnebago County, reasoning that it was possible to use the law’s severance clause to strike its unconstitutional provisions. The Seventh Circuit reversed in part, agreeing that the permissive use scheme laid out in the ordinance was unconstitutional, but reasoning that, after the constitutional problems are dealt with, the remaining questions concern state law. Their resolution depends on facts that were not developed, and on the possible existence of a power not only to sever problematic language but to revise it—a power federal courts do not have. The district court should have declined to exercise supplemental jurisdiction over the state-law claims and should have dismissed them without prejudice so that the parties may pursue them in state court. View "Green Valley Inv., LLC v. Winnebago Cnty." on Justia Law

This case concerns a plan to replace public housing units destroyed by Hurricane Ike in part by redeveloping on two of the sites destroyed by Ike. At issue are questions concerning the scope of standing to sue under the Fair Housing Act of 1968, 42 U.S.C. 3601 et seq.; whether Congress intended by that Act to abrogate States' sovereign immunity; and whether defendants can avail themselves of a safe harbor provision in the United States Housing Act of 1937, as amended by the Quality Housing and Work Responsibility Act of 1998, 42 U.S.C. 1437 et seq. The court held that it lacked jurisdiction to entertain the dismissal of the Individual Plaintiffs and GOGP because they did not appeal; plaintiff has Article III standing to bring her claim that the planned redevelopment will deprive her of the social and economic benefits that result from living in an integrated community; Congress did not make clear an intent to abrogate States’ Eleventh Amendment sovereign immunity from suits brought under the Fair Housing Act, a conclusion reached by other courts considering the issue; and the district court properly granted summary judgment to the remaining defendants on plaintiff’s Fair Housing Act claim, concluding that plaintiff's claim was precluded by a safe harbor provision found at 42 U.S.C. 1437p(d). Accordingly, the court affirmed the judgment. View "McCardell v. HUD" on Justia Law

Carter lost his home in Crete, Illinois, after its mortgage foreclosed. He sued the financial institutions involved in making, servicing, or foreclosing his mortgage, alleging constitutional claims based on the fact that the “foreclosing entity” (not identified) did not hold the note or mortgage at the time of the foreclosure. The district court dismissed the suit as frivolous. The Seventh Circuit agreed that the suit and a similar pending suit are “indeed frivolous” and affirmed dismissal. In neither case did the complaint allege anything that might support an inference that the defendants were state actors under 42 U.S.C. 1983. A claim must be dismissed “if it is clear beyond any reasonable doubt that a case doesn’t belong in federal court, the parties cannot by agreeing to litigate it there authorize the federal courts to decide it.” View "Carter v. Homeward Residential, Inc." on Justia Law

The Yangs listed their building for sale. In February 2011 the restaurant leasing the property closed. The Yangs never sold the building or found another tenant. They continued to pay property taxes. The building was vandalized and started to fail. In October 2011, city officials posted an abandonment notice and mailed a copy to the owner listed in its files. The notice went to the abandoned building and named the previous owner. Nine months later, the city posted a “repair/demolish” notice and sent notices by certified mailing to the property’s address; the notices were returned. After a title search, which identified the Yangs, the city sent certified mail notices to their home in September 2012. Having no response, the city scheduled a November 1 hearing about demotion and sent the Yangs notice by regular mail, with a copy to their realtor. The post office returned as “unclaimed” the certified mailing. The non-certified mailing was not returned. The Yangs did not appear. Demolition was approved. The city mailed another notice to the home address, but got no response. In January 2013, the city razed the building and mailed a $22,500 bill. The Yings claim to remember getting mail that said something about fixing up the building but ignoring it and that they did not receive notice concerning demolition. The Yangs sued under 42 U.S.C. 1983. The district court granted the city summary judgment. The Sixth Circuit affirmed, holding that the city provided all of the notice that was reasonably due. View "Yang v. City of Wyoming" on Justia Law

The City of Madison enacted an ordinance requiring landlords to obtain a license for each unit of rental property. The Rental Inspection and Property Licensing Act (RIPLA) conditioned the grant of a license on the landlord’s advance consent to property inspections. Kenneth Crook was convicted in municipal court of two counts of violating RIPLA by maintaining a rental unit without a rental license and sentenced to pay a fine of $300 on each count. After a bench trial, the County Court of Madison County affirmed. Crook then appealed to the Circuit Court of Madison County, which also affirmed. Crook then appealed to the Supreme Court. The Supreme Court assigned his appeal to the Court of Appeals, which affirmed. At each level of review, Crook argued that RIPLA’s inspection provisions violated the ban on unreasonable searches imposed by the Fourth Amendment of the United States Constitution. The Court of Appeals held that RIPLA was not unconstitutional because it required the City to obtain a judicial warrant if the landlord or tenant withheld consent to an inspection. The Supreme Court granted Crook’s petition for certiorari and reversed: RIPLA’s inspection provisions were constitutionally defective because, although RIPLA had a warrant provision, that provision allowed a warrant to be obtained “by the terms of the Rental License, lease, or rental agreement,” which was a standard less than probable cause. The Court reversed the lower courts' judgments affirming Crook's convictions, and rendered a judgment of acquittal. View "Crook v. City of Madison" on Justia Law