Justia Real Estate & Property Law Opinion Summaries

Malik & Son, LLC owned property in the Borough of Merchantville. The Property contained a fifty-four unit apartment building and had been designated by the Borough as an area in need of redevelopment. Malik assumed a mortgage loan issued by LB-RPR REO Holdings, LLC’s (LB) predecessor, and defaulted on the loan. LB’s predecessor in interest filed a complaint to foreclose the mortgage, and Malik did not file an answer. In early 2011, the court entered a final judgment of foreclosure. LB’s predecessor in interest transferred all its rights and interest in the Property to LB the next day. Once it acquired the loan, LB had a receiver appointed for the Property and made substantial repairs to the building. In an effort to protect its interest in the Property, LB sought, and the court entered, an order that directed that Malik could not sell the Property without the express approval of the sale price by LB. Throughout 2010 and 2011, the Borough pursued a plan to redevelop the Property. The Borough designated Citadel Wellwood, LLC (Citadel) as the redeveloper of the Property, and adopted the redevelopment and rehabilitation plan for the Property. Months before Citadel was designated as the redeveloper of the Property, Citadel entered a contract to purchase it for $1,250,000. Richard DePetro, the principal of Citadel, cancelled the contract after seeking a $200,000 reduction in the purchase price due to the deteriorated condition of the building. Malik rejected the offer, citing the amount due on the LB mortgage. Prior to cancelling the contract, Citadel contacted LB and offered to purchase the Property for $1,250,000 if LB agreed to a short sale to permit satisfaction of other liens. In the course of those discussions, DePetro mentioned to LB’s representative that the Borough would probably condemn the Property. In June 2011, in response to an inquiry from an LB representative, the Borough denied any intention to condemn the Property. However, once the Borough adopted the redevelopment plan on September 26, 2011, the Borough engaged an appraiser to ascertain the fair market value of the Property. The appraiser opined that as of August 24, 2011, its fair market value was $0. He calculated that value because the cost to renovate the Property far exceeded its market value following renovation and rehabilitation. The appraiser also assigned a fair market value of $270,000 without renovations. In a letter dated November 11, 2011, the Borough offered Malik $270,000 for the Property. Malik declined the Borough's offer. That same date, LB’s attorney contacted the Borough, expressing its surprise that the Borough intended to condemn the Property and noted that the Borough’s offer was far less than the price offered by Citadel in June 2011. LB’s attorney informed the Borough that it had obtained a final judgment of foreclosure and that the Property was scheduled to be sold at Sheriff’s Sale. Noting that it would soon own the Property, LB expressed its desire to meet with the Borough to discuss reasonable compensation for the Property. In this appeal, the issue this case presented to the Supreme Court was whether N.J.S.A. 20:3-6 required a condemning authority to engage in bona fide negotiations with a mortgage holder that has obtained a final judgment of foreclosure for the property sought to be condemned. In this case, the condemning authority initiated eminent domain proceedings after the property owner rejected its offer to acquire the property, just days before the holder of the foreclosure judgment expected the property to be sold at a Sheriff’s Sale. The judgment holder contended it was the real party in interest, and that the condemning authority had an obligation to negotiate with it rather than the property owner prior to initiating condemnation proceedings. The trial court concluded that the condemning authority had properly submitted the offer to the owner of record, and the subsequent rejection of the offer satisfied the statutory requirement of bona fide negotiations prior to the exercise of eminent domain authority. The trial court also determined that the condemning authority had no obligation to advise the foreclosure judgment holder of its intention to condemn or to engage in bona fide negotiations with it. In a reported decision, the Appellate Division affirmed. The Supreme Court agreed and affirmed the judgment of the Appellate Division. View "Borough of Merchantville v. Malik & Son, LLC" on Justia Law

This case arose from the City of Hattiesburg’s annexation of property in 2007. Pearson’s Fireworks leased land which was part of the annexed property for the purpose of selling fireworks during the Fourth of July and New Year’s holiday seasons. Prior to the annexation, the City passed an ordinance prohibiting the sale of fireworks within city limits. After the annexation, the City notified Pearson’s that it could no longer sell fireworks on the newly annexed land. Pearson’s then filed suit against the City. The circuit court granted summary judgment in favor of the City, and Pearson’s appealed. Finding no reversible error, the Supreme Court affirmed. View "Pearson's Fireworks, Inc. v. City of Hattiesburg" on Justia Law

Landowners filed a complaint against the City of North Las Vegas for inverse condemnation and precondemnation damages. The district court awarded Landowners precondemnation damages and attorney fees, costs, and prejudgment interest. The Supreme Court affirmed the district court’s orders with the exception of the prejudgment interest award, which the Court reversed, concluding that the district court erred in failing to calculate prejudgment interest from the date on which the resulting injury arose. The City sought rehearing of that order on the prejudgment issue and on issues concerning the statute of limitations and standing. Although rehearing was not warranted, the Court took the opportunity to clarify the relevant law, holding (1) the Court’s dispositional order properly concluded that prejudgment interest should be calculated from the date of taking, which was the first date of compensable injury; (2) the City could not raise its statute of limitations argument for the first time on rehearing, and even if it could, that defense was inapplicable to the facts of this case; and (3) rehearing was not warranted to clarify whether the City can assert a standing defense on remand. View "City of N. Las Vegas v. 5th & Centennial, LLC" on Justia Law

In 2000, DCW Dutchship Island, LLC (DCW), a corporation wholly owned by Daryl Wagner, purchased the Little Island in the Magothy River. At that time, the Island measured approximately 1.92 acres in area and was improved by a single-family house and related structures built in the 1920s. Wagner demolished the house and built a new one. In November 2004, the County authorities discovered the construction activities on the Island and notified DCW of numerous violations. In December, DCW sought variances from the unobserved requirements of the Critical Area Law for each of the structures and improvements on the Island. DCW sought also an amendment to the critical area buffer map, which prohibited most development activity within 100 feet of the shoreline. A County Administrative Hearing Officer heard the evidence for and against the requests for variances. The Magothy River Association (MRA) appeared at the variance hearings to oppose DCW’s requests. The Hearing Officer granted some of the variances. Wagner administratively appealed the denials, and the MRA, the Chesapeake Bay Foundation (CBF), and the Maryland Critical Area Commission for the Chesapeake and Atlantic Coastal Bays appealed the decision to grant the variances, all to the County Board of Appeals. At the Anne Arundel County Board of Appeals (the “Board”) hearing, Wagner moved to dismiss MRA and CBF as parties to the administrative proceedings. The Board ultimately concluded that CBF did not have standing to appeal the granted variances because it did not participate in the hearing before the Administrative Hearing Officer (“AHO”). After 24 evenings of hearings on the subject, the Board revised the decision of the AHO to include certain conditions on the variances.The Maryland Critical Area Commission for the Chesapeake and Atlantic Coastal Bays (the Commission), MRA, CBF, and Wagner all sought judicial review of the Board’s decision at the Circuit Court. In addition, CBF filed a Motion for Summary Judgment limited to the issue of whether the Board improperly excluded CBF from the variance portion of the proceedings. The court denied all motions relevant to the variance matter. The Circuit Court then affirmed the decision of the Board. The Commission and CBF appealed the Circuit Court’s decision to the Court of Special Appeals, arguing that the Critical Area Act applied to the variance proceedings, that the Board erred in refusing to allow CBF to participate as a party in the administrative process, and that the Board did not base its decision on substantial evidence in the record. In an unreported opinion, the Court of Special Appeals rejected these arguments and affirmed the Circuit Court. MRA and CBF then petitioned the Court of Appeals for certiorari. The issues this case presented for the Court's review were: (1) whether CBF had standing to participate in the variance proceedings before the Board of Appeals on the grounds that MRA, which advocated the same position, had standing; (2) whether AACC 3-1-104(a) violated the Express Powers Act, thus making the Board’s denial of standing to CBF on the basis of it erroneous; (3) whether the Board of Appeals violated its own rules when it held that CBF could not cross-examine witnesses, resulting in CBF being denied due process; and (4) whether the Board of Appeals erred in granting Wagner after-the-fact variances. The Court answered the first three questions in the negative and the fourth in the affirmative, but only in part. View "Chesapeake Bay Found. v. DCW Dutchship" on Justia Law

The New York State Legislature amended N.Y. C.P.L.R. 5206 in 2005, increasing the state's homestead exemption from $10,000 to $50,000. At issue was whether the 2005 Amendment's increased homestead exemption applied to judgment liens perfected prior to the amendment's effective date and, if so, whether application of the law to pre-enactment judgment liens violates the Takings Clause of the Fifth Amendment. The court held that the 2005 Amendment applies to all creditors and all obligations, including pre-existing obligations, regardless of whether the debt was reduced to a judgment lien prior to the statute's enactment; and (2) that retroactive application of the exemption does not constitute an uncompensated taking of pre-enactment judgment liens in violation of the Takings Clause. Accordingly, the court affirmed the judgment of the district court affirming the bankruptcy court's conclusion that there was been no taking of claimant's property. View "1256 Hertel Avenue Associates v. Calloway" on Justia Law

Olive Lane Industrial Park owned real property that was taken by eminent domain. Within four years after the eminent domain order, Olive Lane acquired another parcel of property. About five years after the eminent domain order, for purposes of calculating property taxes on its new property, Olive Lane filed a request with the San Diego County tax assessor to transfer the condemned property's base year value to the replacement property, as permitted by California Constitution, article XIIIA. The County denied Olive Lane's request as untimely. After evaluating the constitutional and statutory provisions as a whole, the Court of Appeal concluded the Legislature did not intend to deprive a taxpayer who loses property through eminent domain of the right to obtain prospective application of the base year value transfer in the event the replacement property is acquired within the four-year statutory period but the claim is filed after the four-year period. Accordingly, the Court reversed the judgment and remanded the matter for further proceedings. View "Olive Lake Industrial Park v. Co. of San Diego" on Justia Law

Plaintiffs Frank Schmidt Sr. and other former parishioners of the St. Paul Catholic Church in Pass Christian appealed the second dismissal with prejudice of their claims against the Catholic Diocese of Biloxi, Inc., Most Reverend Thomas J. Rodi, and Rev. Dennis Carver. In 2005, Hurricane Katrina ravaged the Mississippi Gulf Coast. The storm caused extensive damage to the St. Paul Catholic Church and its ancillary properties. The actual church building was also damaged, although the extent of the damage is disputed by the parties. Plaintiffs insisted that the church remains structurally sound, that many of its sacred articles were unharmed, and that repair costs should be less than $2.5 million. Church Defendants maintain that the church and its most sacred places were “destroyed in large part.” Bishop Rodi issued a decree merging the St. Paul and Our Lady of Lourdes Parishes to form a new parish called the Holy Family Parish. The decree stated that the Holy Family Parish would maintain two church edifices, St. Paul Church and Our Lady of Lourdes Church. A number of St. Paul’s former parishioners, including some of the Plaintiffs in this case, filed a canonical appeal through the Roman Catholic Church’s ecclesiastical tribunals. In 2007, the Vatican issued a decree which stated that Bishop Rodi had acted in accordance with the requirements and procedures set forth under canon law. While the canonical appeal was pending, 157 former parishioners filed suit asserting, in part, that Bishop Rodi held the St. Paul Church property in trust for the members, that any financial contributions designated for reconstruction of the church were held in trust for that particular purpose, that Church Defendants had violated said trusts, and that Father Carver had made misrepresentations in soliciting donations for the rebuilding efforts. The Mississippi Supreme Court affirmed in part, finding that Plaintiffs lacked standing to assert the St. Paul property was held in trust for their benefit. However, the Court reversed and remanded the chancellor’s dismissal of the diversion-of-designated funds claim, as well as the claim against Father Carver for intentional misrepresentation, finding subject-matter jurisdiction existed over these claims. On remand, the chancellor denied Plaintiffs’ motions for additional discovery and granted Church Defendants’ motion for summary judgment, dismissing Plaintiffs’ claims with prejudice. Plaintiffs argued on appeal that the chancellor erred in dismissing their claims for diversion of designated funds and intentional misrepresentation. Because none of the Plaintiffs established the requisite elements for a diversion of designated funds, the Supreme Court affirmed the grant of summary judgment on this issue. In addition, because no Plaintiffs could establish a claim for intentional misrepresentation, the Court affirmed the grant of summary judgment on this issue. Therefore, the Court affirmed the Chancery Court's judgment. View "Kinney v. Catholic Diocese of Biloxi, Inc." on Justia Law

Plaintiffs filed a putative class action alleging that Verizon installed multi-unit terminal boxes on their property without just compensation and violated their due process rights. The court concluded that Williamson Cnty. Reg'l Planning Comm'n v. Hamilton Bank of Johnson City applied to physical takings, with the recognition that the finality requirement was satisfied by a physical taking; in regards to plaintiffs' due process claims, Williamson County applies to such claims arising from the same circumstances as a takings claim; and plaintiffs have failed to exhaust their state remedies through an inverse condemnation proceeding. Accordingly, the court affirmed the judgment of the district court. View "Kurtz v. Verizon New York, Inc." on Justia Law

Stanley and Kathryn Wasserman are the successors in interest to an easement created in 1915 for the purpose of draining what is now their farmland over land now owned by the City of Freemont. After the City unilaterally replaced plastic drainage tiles across the easement with a single drainage pipe and rerouted the drainage pathway, the Wassermans sued in mandamus, alleging an unconstitutional taking. The court of appeals concluded that the City violated the easement and that the Wassermans were entitled to a determination of whether a taking had actually occurred. The Supreme Court reversed, holding (1) the express easement language gave the owner of the original servient estate the right to determine the lines by which the drainage system should run through the land, and as the current owner of the servient estate, the City retained the right to change the route of the drainage tile as long as it continued to drain the Wassermans’ land; and (2) under the facts of this case, the City did not violate the easement. View "State ex rel. Wasserman v. City of Fremont" on Justia Law

The Porretto family owned several acres of property between the Galveston Seawall and the Gulf of Mexico. Due to the State’s repeated recharacterization of the Porretto’s property as public property, the Porrettos had difficulty selling the property. The Porrettos sued the State, arguing that the State’s claims made it impossible for them to sell their property and therefore amounted to a compensable taking. The trial court held that the State’s actions had resulted in a compensable taking and awarded the Porrettos $5.012 million as damages for the lost market value of the property taken. The court of appeals reversed, concluding that the State’s actions did not constitute a taking. The Supreme Court agreed with the court of appeals' conclusion that the State’s conduct did not constitute a taking and affirmed. View "Porretto v. Tex. Gen. Land Office" on Justia Law