Justia Real Estate & Property Law Opinion Summaries

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

David Knellinger and Robert Storey discovered that the state of Colorado had taken possession of their property under the Revised Uniform Unclaimed Property Act (RUUPA). They filed a lawsuit under 42 U.S.C. § 1983, claiming that Colorado's unclaimed property scheme violated the Takings Clause of the Fifth Amendment. The plaintiffs alleged that Colorado took their property for public use without just compensation and did not provide them with notice or compensation.The United States District Court for the District of Colorado dismissed the plaintiffs' claims for lack of standing. The court found that Knellinger and Storey failed to sufficiently allege ownership of the property at issue, partly because they did not file an administrative claim to establish ownership as required by RUUPA. The district court also dismissed the plaintiffs' equitable claims, concluding that § 1983 provided an adequate basis for obtaining just compensation.The United States Court of Appeals for the Tenth Circuit reviewed the case and determined that the district court erred in dismissing the plaintiffs' claims for monetary relief. The appellate court held that Knellinger and Storey had plausibly alleged that Colorado took their property for public use without just compensation, which is sufficient to confer standing. The court emphasized that property owners need not file administrative claims with Colorado before suing for just compensation under the Takings Clause. However, the appellate court affirmed the district court's dismissal of the plaintiffs' equitable claims, as § 1983 provides an adequate remedy for obtaining just compensation.The Tenth Circuit reversed the district court's dismissal of the plaintiffs' damages claims and remanded the case for further proceedings consistent with its opinion. View "Knellinger v. Young" 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, particularly as it did not provide testimony or evidence at a trial to counter the City’s findings. The Court also noted that the City’s method of calculating the assessment based on the cost of the project was constitutionally permissible and that the City’s findings regarding the special benefits, such as improved aesthetics and safety, were supported by the project’s features.The Supreme Court of South Dakota affirmed the circuit court’s decision, holding that KJD did not meet its burden to prove that the special assessment was unconstitutional. The Court concluded that the City’s findings and the special assessment were valid and did not exceed the value of the benefits conferred on KJD’s property. View "KJD, LLC v. City of Tea" on Justia Law

Three organizations, Inclusive Louisiana, Mount Triumph Baptist Church, and RISE St. James, sued St. James Parish, the Parish Council, and the Parish Planning Commission, alleging violations of their constitutional and statutory civil rights. They claimed that the Parish discriminated against them by directing hazardous industrial development towards majority-Black districts and Black churches, where their members and congregants live. They also argued that the Parish's actions desecrated and restricted access to cemeteries of their enslaved ancestors.The United States District Court for the Eastern District of Louisiana dismissed all claims. It held that the plaintiffs lacked standing for some claims and that other claims were time-barred, as they were based on the Parish's 2014 Land Use Plan. The court also dismissed claims related to religious injuries, stating that the injuries were not traceable to the Parish's actions.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the district court erred in dismissing the claims as time-barred, noting that the plaintiffs alleged ongoing discriminatory practices, not just a single incident. The court also found that the plaintiffs had standing to sue for property injuries and health-related injuries. Additionally, the court held that the plaintiffs had standing to pursue claims under the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Louisiana Constitution, as their alleged injuries were traceable to the Parish's conduct.The Fifth Circuit reversed the district court's dismissal of the claims and remanded the case for further proceedings. The court emphasized that the plaintiffs had sufficiently alleged ongoing discriminatory practices and injuries that were fairly traceable to the Parish's actions. View "Inclusive Louisiana v. St. James Parish" on Justia Law

Faytima Howard failed to pay her property taxes, leading Macomb County, Michigan, to seize and sell her property in 2023. Howard sued, claiming the county violated the Takings Clause of the Fifth Amendment by keeping proceeds exceeding her tax debt. Previously, Michigan's foreclosure regime was found unconstitutional for not compensating property owners for the surplus from foreclosure sales. However, Michigan amended its law in 2020 to allow property owners to claim any surplus value from foreclosed properties. Howard did not utilize this process.The United States District Court for the Eastern District of Michigan dismissed Howard's complaint for failure to state a claim. The court noted that Michigan's amended law provided a procedure for property owners to claim surplus proceeds, which Howard did not follow. The district court concluded that because Howard did not take advantage of the process, her claim was invalid.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The court held that Michigan's procedure for claiming surplus proceeds from foreclosure sales complies with the Takings Clause, as it provides property owners with a reasonable opportunity to claim any surplus. The court distinguished this case from others where no such process was available, emphasizing that Howard's failure to follow the state procedure meant no taking occurred. The court also rejected Howard's arguments that the process was overly burdensome and that the lack of interest and attorney's fees constituted a taking. The court concluded that Michigan's procedures are constitutionally sound and do not violate the Fifth Amendment. View "Howard v. Macomb Cnty., Mich." on Justia Law

Plaintiffs, a nonprofit corporation and its founder, applied for a special use permit to conduct church activities on agricultural land they purchased in Maui. The Maui Planning Commission denied their application, citing concerns about traffic, safety, and environmental impacts. Plaintiffs continued using the land for non-agricultural purposes without permits, leading to fines. They applied again, addressing some concerns, but the Commission denied the second application as well.The plaintiffs sued the County of Maui and the Commission, alleging violations of the Religious Land Use and Institutionalized Persons Act (RLUIPA) and other constitutional claims. The United States District Court for the District of Hawaii granted summary judgment to the County on most claims, except for the RLUIPA equal-terms claim, which went to trial. An advisory jury found for the County, and the district court entered judgment accordingly. Plaintiffs appealed, and the Ninth Circuit reversed the summary judgment, remanding the case for further proceedings.On remand, the district court severed an unconstitutional provision from the zoning law and proceeded to trial on the remaining claims. The jury found for the County on all counts. Plaintiffs appealed again, arguing that the substantial-burden inquiry under RLUIPA should have been decided by the court, not the jury.The United States Court of Appeals for the Ninth Circuit held that the substantial-burden inquiry under RLUIPA is a question of law for the court to decide. Although the district court erred in submitting this question to the jury, the error was deemed harmless because the jury's verdict was consistent with the required legal outcome. The Ninth Circuit affirmed the district court's judgment in favor of the County of Maui. View "SPIRIT OF ALOHA TEMPLE V. COUNTY OF MAUI" on Justia Law