Justia Real Estate & Property Law Opinion Summaries

In 1997, Alessandro Roberto purchased a property in Paterson, New Jersey. By 2022, the property was valued at up to $535,000. Roberto failed to pay three sewer tax bills totaling $606, leading the City of Paterson to place tax liens on the property. 257-261 20th Avenue Realty, LLC bought the tax sale certificates at auction. Years later, the company filed a tax foreclosure complaint, and the trial court set the redemption amount at $32,973.15. Roberto did not respond or pay, resulting in a judgment in favor of the plaintiff. Roberto then moved to vacate the judgment, citing his age, the property's equity, and his financial investments in the property. The trial court vacated the judgment under Rule 4:50-1(f), which allows for relief in exceptional circumstances.The Appellate Division affirmed the trial court's decision, influenced by the U.S. Supreme Court's ruling in Tyler v. Hennepin County, which held that a homeowner's surplus equity taken under Minnesota’s tax foreclosure law violated the Fifth Amendment. The Appellate Division concluded that Tyler applied to New Jersey’s Tax Sale Law (TSL) and provided grounds to vacate the judgment. The court also determined that Tyler should be given pipeline retroactivity and found no abuse of discretion in granting relief under Rule 4:50-1(f).The Supreme Court of New Jersey reviewed the case and held that the version of the TSL in effect before its 2024 amendment was unconstitutional to the extent it allowed for the forfeiture of surplus equity without just compensation. The court recognized a property right to surplus equity in New Jersey and determined that private lienholders acting under the TSL could be considered state actors. The court rejected the argument that the surplus equity was not taken for public use and affirmed the Appellate Division's judgment as modified, based on the reasoning in Tyler. View "257-261 20th Avenue Realty, LLC v. Roberto" on Justia Law

The City of Hillsboro, Missouri, enacted ordinances prohibiting new private wells within city limits and requiring residences to connect to the city water system. The Antoinette Ogilvy Trust, owning a 156-acre property within Hillsboro, claimed these ordinances constituted an uncompensated regulatory taking under the Fifth and Fourteenth Amendments. The trustees, William Becker and Darcy Lynch, argued that the regulations made developing the property financially unfeasible due to the high costs of connecting to the city water system.The United States District Court for the Eastern District of Missouri granted summary judgment in favor of the City, rejecting the trustees' claims. The court found that the regulations did not constitute a per se taking, as they did not involve a physical invasion of the property or deprive it of all economic value. The court also determined that the regulations did not fail the Penn Central balancing test for regulatory takings.The United States Court of Appeals for the Eighth Circuit reviewed the case de novo and affirmed the district court's decision. The appellate court held that the regulations did not mandate a permanent physical invasion of the property, as the trustees were not compelled to build structures or dedicate land to the City. The court also found that the property retained substantial value, thus not constituting a taking under Lucas v. South Carolina Coastal Council. Additionally, the court declined to consider the trustees' exaction claim, as it was not sufficiently raised in the lower court.Under the Penn Central test, the court concluded that the economic impact on the trustees was not significant enough to constitute a taking, and the regulations did not interfere with reasonable investment-backed expectations. The character of the governmental action was deemed a legitimate exercise of the City's police powers to prevent water contamination and protect the aquifer. Therefore, the court affirmed the district court's summary judgment in favor of the City. View "Becker v. City of Hillsboro" on Justia Law

Santa Rita Holdings, Inc. applied for a conditional use permit (CUP) from the County of Santa Barbara to cultivate cannabis on a 2.54-acre parcel owned by Kim Hughes. The only access to the parcel is through a private easement over land owned by JCCrandall, LLC. The County's fire and public works departments deemed the road adequate for the project. Despite JCCrandall's objections, the County granted the CUP, and the Board of Supervisors upheld this decision.JCCrandall petitioned for a writ of administrative mandate, arguing that the use of the easement for cannabis activities was prohibited by the easement deed and federal law, that state law required their consent for such activities, and that the road did not meet County standards. The trial court denied the petition, applying the substantial evidence standard and finding the County's decision supported by substantial evidence.The California Court of Appeal, Second Appellate District, Division Six, reviewed the case. The court determined that the trial court erred in applying the substantial evidence standard instead of the independent judgment standard, as JCCrandall's right to exclude unauthorized persons from their property is a fundamental vested right. The appellate court held that under federal law, cannabis is illegal, and thus, the use of the easement for cannabis transportation exceeds the scope of the easement. The court also found that the County's reliance on Civil Code section 1550.5, subdivision (b), which deems cannabis activities lawful under California law, defies the Supremacy Clause of the U.S. Constitution. Consequently, the judgment was reversed, and costs were awarded to JCCrandall. View "JCCrandall v. County of Santa Barbara" on Justia Law

The City of Fargo, a home rule municipality, adopted zoning ordinances prohibiting the sale of firearms and ammunition as home occupations and in non-farm commercial use zoned districts. In 2023, the North Dakota legislature passed House Bill 1340, amending N.D.C.C. §§ 40-05.1-06 and 62.1-01-03 to limit the authority of political subdivisions, including home rule cities, regarding firearms and ammunition. Fargo filed a declaratory judgment action challenging the constitutionality of H.B. 1340 and seeking a declaration that the amended statutes did not void its ordinances.The District Court of Cass County granted summary judgment in favor of the State, holding that H.B. 1340 did not violate the North Dakota Constitution and expressly preempted and voided Fargo’s zoning ordinances. Fargo appealed the decision.The North Dakota Supreme Court reviewed the case de novo and affirmed the district court’s judgment. The court held that H.B. 1340 was a valid exercise of the legislature’s constitutional authority to define the powers of home rule cities. The court concluded that the amended statutes were constitutional as applied to Fargo’s home rule charter and ordinances. The court also determined that H.B. 1340 preempted and rendered void Fargo’s zoning ordinances prohibiting the sale of firearms and ammunition, as the legislature had expressly limited the authority of political subdivisions in this area. View "City of Fargo v. State" on Justia Law

A landowner in Hardin County, Iowa, refused to allow a surveyor for a pipeline developer to enter his private property. The developer, Summit Carbon Solutions, LLC, sought access under Iowa Code section 479B.15, which governs hazardous liquid pipelines. The district court ordered the landowner to allow the surveyor temporary access, rejecting the landowner’s claims that the statute was unconstitutional under the “takings” clauses of the U.S. and Iowa Constitutions and that carbon dioxide in a supercritical state is not a “hazardous liquid.”The Iowa District Court for Hardin County ruled that the statute was facially constitutional and that Summit was a “pipeline company” with access rights under section 479B.15. The court found that Summit had provided proper statutory notice to the landowner and that the landowner’s claim of having a tenant who did not receive notice was not credible. The court granted Summit’s request for injunctive relief to compel access for surveying.The Iowa Supreme Court reviewed the case and affirmed the district court’s judgment. The court held that section 479B.15 is a lawful pre-existing limitation on the landowner’s title, consistent with longstanding background restrictions on property rights, and does not constitute a taking under the Federal or Iowa Constitutions. The court also held that supercritical carbon dioxide is a “hazardous liquid” within the meaning of section 479B.2, making Summit a pipeline company with access rights under the statute. The court found that Summit had complied with the statutory notice requirements and that no additional showing of irreparable harm was required for the injunction. The judgment and injunctive relief granted by the district court were affirmed. View "Summit Carbon Solutions, LLC v. Kasischke" on Justia Law

Yamhill County filed an in rem civil forfeiture action against a property in Yamhill, Oregon, alleging it was used to facilitate prohibited conduct. Sheryl Lynn Sublet, who claimed an interest in the property, opposed the forfeiture, arguing it violated the Double Jeopardy Clause of the Fifth Amendment because she had already been prosecuted for the same conduct. The trial court rejected her argument, and a jury found in favor of the county, leading to a judgment forfeiting the property.The Oregon Court of Appeals reversed the trial court's decision, agreeing with Sublet that the forfeiture was barred by the Double Jeopardy Clause. The court held that civil forfeiture in Oregon is effectively a criminal penalty, thus implicating double jeopardy protections.The Oregon Supreme Court reviewed the case to determine whether civil forfeiture under Oregon law constitutes criminal punishment for purposes of the Double Jeopardy Clause. The court concluded that the civil forfeiture scheme under ORS chapter 131A is intended to be remedial and not punitive. The court emphasized that the forfeiture proceeds through an in rem action, targeting the property itself rather than the owner, and incorporates distinctly civil procedures. The court found no clear proof that the forfeiture's purpose and effect are punitive, thus it does not trigger double jeopardy protections.The Oregon Supreme Court reversed the decision of the Court of Appeals and remanded the case for further proceedings, holding that civil forfeiture under current Oregon law does not constitute criminal punishment under the Double Jeopardy Clause of the Fifth Amendment. View "Yamhill County v. Real Property" on Justia Law

Santa Rita Holdings, Inc. applied for a conditional use permit (CUP) from the County of Santa Barbara to cultivate cannabis on a 2.54-acre parcel owned by Kim Hughes. The only access to the parcel is through a private easement over land owned by JCCrandall, LLC. JCCrandall objected to the use of its easement for cannabis transportation. Despite the objection, the County granted the CUP, and the County’s Board of Supervisors upheld the decision, finding the road adequate for the project.JCCrandall petitioned for a writ of administrative mandate, challenging the County’s determination. JCCrandall argued that the use of the easement for cannabis activities was prohibited by the easement deed and federal law, required JCCrandall’s consent under state law, and violated County standards for private roads. The trial court denied the petition, applying the substantial evidence standard and finding the County’s decision supported by substantial evidence.The California Court of Appeal, Second Appellate District, Division Six, reviewed the case. The court held that the trial court erred in applying the substantial evidence standard instead of the independent judgment standard, as JCCrandall’s right to exclude unauthorized persons from its property is a fundamental vested right. The appellate court also found that under federal law, cannabis is illegal, and thus, the use of the easement for cannabis transportation exceeds the scope of the easement. The court concluded that the County’s reliance on Civil Code section 1550.5, subdivision (b) was misplaced, as it defies the Supremacy Clause of the U.S. Constitution. The judgment was reversed, and costs were awarded to JCCrandall. View "JCCrandall v. County of Santa Barbara" on Justia Law

A Nevada limited liability company, Mass Land Acquisition, LLC, challenged the use of eminent domain by Sierra Pacific Power Company, d/b/a NV Energy, to take an easement across its property for a natural gas pipeline. NV Energy sought immediate occupancy of the property, while Mass Land argued that such a taking by a private entity violated the Nevada Constitution and requested a jury determination on whether the taking was for a public use.The First Judicial District Court of Nevada denied Mass Land's motion to dismiss and granted NV Energy's motion for immediate occupancy. The court concluded that NV Energy, as a regulated public utility, was exercising delegated eminent domain powers and acting as the government, not as a private party. The court also found that the taking was for a natural gas pipeline, a statutorily recognized public use, and thus did not require a jury determination on public use before granting occupancy.The Supreme Court of Nevada reviewed the case and denied Mass Land's petition for a writ of mandamus or prohibition. The court held that the Nevada Constitution's prohibition on transferring property taken by eminent domain to another private party did not apply to NV Energy's taking for a natural gas pipeline, as it was a public use. The court also determined that there were no genuine issues of material fact requiring a jury determination on whether the taking was actually for a public use. The court concluded that NV Energy's actions were lawful and consistent with the statutory and constitutional provisions governing eminent domain in Nevada. View "MASS LAND ACQUISITION, LLC VS. DISTRICT COURT" on Justia Law

In 2020, East Fork Funding LLC filed a quiet title action against U.S. Bank, N.A., regarding a mortgage recorded against East Fork’s property. The mortgage had been subject to three foreclosure actions, two of which were voluntarily discontinued by the mortgagee. The district court granted summary judgment in favor of East Fork, holding that under the Foreclosure Abuse Prevention Act (FAPA), enacted in December 2022, the voluntary discontinuances did not reset the six-year statute of limitations for bringing a foreclosure action. Consequently, the statute of limitations continued to run from the commencement of the first foreclosure action in 2010 and expired six years later, entitling East Fork to quiet title.The United States District Court for the Eastern District of New York reviewed the case and granted summary judgment in favor of East Fork. The court held that FAPA applied retroactively to the voluntary discontinuances, meaning they did not reset the statute of limitations. Therefore, the statute of limitations began running with the filing of the 2010 action and expired before East Fork commenced the quiet title action. The court also found that retroactive application of FAPA did not violate the U.S. Constitution and that even under pre-FAPA law, the statute of limitations had expired.The United States Court of Appeals for the Second Circuit is currently reviewing the case. The main issue on appeal is whether FAPA applies retroactively to voluntary discontinuances that occurred before its enactment. The court has certified this question to the New York Court of Appeals, as it is a novel question of state law necessary to resolve the appeal. The Second Circuit seeks clarification on whether Sections 4 and/or 8 of FAPA apply to a unilateral voluntary discontinuance taken prior to the Act’s enactment. The court retains jurisdiction pending the New York Court of Appeals' response. View "E. Fork Funding LLC v. U.S. Bank, Nat'l Ass'n" on Justia Law

Michael Mogan, a condominium owner, challenged the City of Chicago's Shared Housing Ordinance, which prevented him from listing his unit on short-term rental platforms like Airbnb. Mogan claimed that the Ordinance constituted an unconstitutional taking and inverse condemnation under Illinois law. He also sought a declaratory judgment against the City and his homeowners association, Roscoe Village Lofts Association, to allow him to lease his unit on a short-term basis.The United States District Court for the Northern District of Illinois dismissed Mogan's takings and inverse condemnation claims and declined to exercise jurisdiction over any remaining state law claims. Mogan appealed the decision.The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the district court's decision. The court held that Mogan lacked standing to challenge the Ordinance because he failed to demonstrate a concrete and particularized injury. The court also found that Mogan's property rights were subject to the Declaration of Condominium Ownership, which prohibited leases of less than 30 days. Therefore, Mogan could not claim that the Ordinance interfered with any reasonable investment-backed expectations or caused any economic impact. The court concluded that the district court did not abuse its discretion in declining to exercise supplemental jurisdiction over the remaining state law claims. View "Mogan v. City of Chicago" on Justia Law