Justia Real Estate & Property Law Opinion Summaries

Articles Posted in Constitutional Law
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After the City decided to undertake road improvements along South Avenue in Missoula, Montana, Plaintiffs, a group of landowners who owned property along South Avenue, contested the City’s assessment of the width of the right-of-way on a section of the street. The district court concluded that the City’s actions constituted a taking. The Supreme Court reversed in part and remanded for a redetermination of damages. Plaintiffs filed a petition for rehearing asking the Court to award both attorney’s fees and costs incurred for the appeal. The Supreme Court denied the petition. On remand, Plaintiffs agreed to reduce their “taken property” value and asked the district court to assess both attorney’s fees and costs against the City for the appeal. The district court determined that Plaintiffs were the prevailing party on appeal and awarded them appellate attorney’s fees and costs. The City appealed, arguing that the Court’s refusal to award fees in its order on rehearing constituted “law of the case.” The Supreme Court affirmed the district court’s award of appellate attorney’s fees and costs, holding that the district court correctly concluded that Plaintiffs had a constitutional right to be made whole through an award of attorney fees and costs on appeal.View "Wohl v. City of Missoula" on Justia Law

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After defendants purchased the building where plaintiff was living in a rent-controlled apartment, defendants served plaintiff with a 60-day notice to quit. Plaintiff subsequently initiated unlawful detainer proceedings against defendants and then filed a complaint alleging several state claims. Plaintiff sought an order restoring him to his apartment, restitution, damages, and attorney fees. On appeal, defendants challenged the trial court's denial of their Code of Civil Procedure section 426.16 special motion to strike plaintiff's first amended complaint because their conduct was protected litigation activity. Plaintiff cross-appealed the trial court's denial of his request for attorney fees in defending the motion. The court affirmed the denial of defendant's motion to strike where plaintiff's complaint was not directed at protected activity. However, the court reversed the denial of attorney fees and remanded for further proceedings to determine whether defendants' motion was frivolous, whether plaintiff is entitled to attorney fees and if so, the amount of such fees.View "Ben-Shahar v. Pickart" on Justia Law

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In 2012, St. Louis County adopted an ordinance that implemented a foreclosure mediation program requiring lenders to provide residential borrowers an opportunity to mediate prior to foreclosure. Two bankers filed suit against the County seeking a declaratory judgment establishing that the ordinance was invalid. The circuit court sustained the County’s motion for summary judgment, concluding that the County possessed the charter authority to enact the ordinance, the ordinance was a valid exercise of the County’s police power, the ordinance was not preempted by state law, and the fees associated with the ordinance did not violate the Hancock Amendment. The Supreme Court reversed, holding that the ordinance was void and unenforceable ab initio because the County exceeded its charter authority in enacting the ordinance.View "Mo. Bankers Ass’n, Inc. v. St. Louis County, Mo." on Justia Law

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The issue this case presented for the Pennsylvania Supreme Court's review centered on the viability of the historic police power of the state in validating and regulating riparian rights and remedies where it was alleged that a downstream landowner subject to federal rail-safety regulations obstructed a natural watercourse causing upstream flooding and significant damage as a result. Hotel owner David Miller and his hotel (appellants) sought to hold the Southeastern Pennsylvania Transportation Authority ("SEPTA") liable for water damage allegedly resulting from the negligent construction and/or maintenance of a nearby SEPTA-owned railroad bridge. Appellants purchased hotel property in 1996, and they claimed that the bridge thereafter obstructed the flow of a creek which ran under the bridge, causing the creek to flood appellants' upstream hotel on three separate occasions of extreme weather conditions. On each occasion, appellants experienced flooding that filled the hotel basement and first floor. In 2001, the hotel closed and appellants declared bankruptcy. "As this is an area of law that has been regulated by the Commonwealth for centuries," the Pennsylvania Court concluded that there was no clear and manifest federal congressional intention to preempt Pennsylvania law central issue of this case. The Court declined to "invalidate the rights and remedies afforded to appellants under the laws of this Commonwealth." The Court reversed the Commonwealth Court's order and remanded this case for further proceedings.View "Miller v. SEPTA" on Justia Law

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In 1992, Robert Farmer and his wife, Kathy, bought Wolverine Lodge in Glennallen from Peggy Jo Watson. The purchase price of $365,000 was secured by a deed of trust on the property. Farmer defaulted on the mortgage for the first time in 1996, but he cured before the foreclosure sale occurred. In 2012 Farmer defaulted again. Farmer was almost five months late on the payments, had not paid the real estate taxes or room taxes, and had no insurance on the property. Watson paid all of these expenses herself in order to keep the property up-to-date and insured. She testified that "Farmer promised many times that he would bring the loan current and obtain insurance,” but “[h]e never did." In March 2012 Watson commenced nonjudicial foreclosure proceedings. Watson’s attorney recorded a notice of default and a notice of sale, and distributed them to Farmer by mail and personal service. Notice of the nonjudicial foreclosure sale was published in the Alaska Journal of Commerce and posted at various locations in Anchorage. The nonjudicial foreclosure sale was postponed six times. It was initially set for July 25, but Watson postponed it until August 29. On August 28 Farmer filed for Chapter 13 bankruptcy, and Watson again postponed the sale, this time at Farmer’s request, until September 26. Because of the ensuing automatic bankruptcy stay, the sale was postponed until October 31, then until November 28, then again until December 19, and finally until December 27, when the sale actually took place. Watson’s attorney was the only attendee at each of the scheduled sales. Each of these postponements was announced publicly on the sale date, and the trustee signed the notice of postponement every time. Farmer was not otherwise notified of any of the postponements, and, at the time of the actual sale, he alleged that neither "[he], [his] wife, nor [his] bankruptcy attorney knew . . . that a deed of trust foreclosure sale was scheduled for December 27, 2012." Farmer argued that equity required re-notice after each postponement and that the lack of re-notice violated his due process rights. The superior court granted summary judgment to Watson. Upon review, the Supreme Court affirmed: equity does not require re-notice after postponement of a nonjudicial foreclosure sale and notice of a postponement by public announcement satisfies due process.View "Farmer v. Alaska USA Title Agency, Inc." on Justia Law

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Appellant Friends of Pennsylvania Leadership Charter School appealed an order of the Commonwealth Court which held that the retroactive real estate tax exemption provided in Section 1722-A(e)(3) of the Public School Code, 24 P.S. 17-1722-A(e)(3), was unconstitutional. Upon review, the Supreme Court affirmed (though by different reasoning), concluding that retroactive application of the real estate tax exemption of Section 1722-A(e)(3) was unconstitutional under the Pennsylvania Constitution because it violated the separation of powers doctrine.View "Friends of PaLCS v. Chester Cty Bd of Assess" on Justia Law

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In 2009, the Newtown Township Board of Supervisors enacted a Planned Residential Development Ordinance. This appeal centered on challenges to the validity of that ordinance and to the approval of a Tentative PRD Plan pursuant to it. Intervenors BPG Real Estate Investors (BPG) submitted an application under the anticipated PRD Ordinance for approval of a Tentative PRD Plan, proposing multi-use development of an approximately 218-acre tract of land that it owned. The Township Board orally approved BPG's Tentative PRD Plan, and later issued a written decision granting approval. Newtown Square East, L.P. (NSE), which owned a two-acre tract of land adjacent to BPG's tract, filed a challenge to the validity of the PRD Ordinance with the Newtown Township Zoning Hearing Board, and filed an appeal of the Township Board's approval of BPG's Tentative PRD Plan with the court of common pleas. With regard to its validity challenge before the Zoning Board, NSE argued, inter alia, that the PRD Ordinance violated Article VII of the MPC by, allegedly, failing to require that a tentative plan identify the uses of buildings and other structures, and permitting the location of buildings to be subject to free modification between the time of tentative plan approval and final plan approval. Following several hearings, the Zoning Board upheld the validity of the PRD Ordinance, finding that its minor textual variations from the relevant provisions of the MPC, Article VII, did not create an inconsistency or conflict with the enabling legislation. Finding no reversible error, the Supreme Court affirmed the validity of the ordinance. View "Newtown Square East v. Twp. of Newtown" on Justia Law

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The primary question this case presented for the Supreme Court's review was whether a municipal authority could exercise its eminent domain powers to condemn an easement over privately-owned land, where the sole purpose of the easement is to supply a private developer with land to install sewer drainage facilities needed for a proposed private residential subdivision. "While this determination may seem to interfere with the ability of municipal water and/or sewer authorities to expand their operations under circumstances where, as here, there is an overarching nexus between the taking and private development, it is not this Court’s function to ameliorate such difficulties by departing from the statutory text. [. . .] The Legislature’s decision to exempt regulated public utilities, but not municipal authorities, from the preclusive rule set forth in Section 204(a) demonstrates that it intended to allow – within constitutional limitations – the continued use of eminent domain for the provision of public services such as water and sewer access in tandem with private development for a limited, defined class of condemnors. As RAWA is not within that class, its condemnation of the drainage easement is in violation of PRPA." View "Reading Area Wat Auth v. Schuyl River Grwy, et al" on Justia Law

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The United States District Court for the Western District of Washington certified a question of Washington law to the Washington Supreme Court. The issue centered on whether Washington law recognized a cause of action for monetary damages where a plaintiff alleges violations of the deeds of trust act (DTA), chapter 61.24 RCW, but no foreclosure sale has been completed. The Supreme Court was also asked to articulate the principles that would apply to such a claim under the DTA and the Consumer Protection Act (CPA), chapter 19.86 RCW. The Court held that the DTA does not create an independent cause of action for monetary damages based on alleged violations of its provisions where no foreclosure sale has been completed. The answer to the first certified question was no-at least not pursuant to the DT A itself. Furthermore, the Court found that under appropriate factual circumstances, DTA violations may be actionable under the CPA, even where no foreclosure sale has been completed. The answer to the second certified question was that the same principles that govern CPA claims generally apply to CPA claims based on alleged DTA violations. View "Frias v. Asset Foreclosure Servs., Inc." on Justia Law

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Neighbor and owner of property near the Palmer Municipal Airport brought an inverse condemnation claim against the City of Palmer, arguing that the airport operation diminished his property value. The superior court entered summary judgment for the City of Palmer because the property owner failed to submit any expert testimony regarding damages. The Supreme Court reversed the superior court's decision because Alaska law permits property owners to testify about their opinion of the property's value before and after an alleged taking. View "Briggs v. City of Palmer" on Justia Law