Justia Real Estate & Property Law Opinion Summaries

The California Coastal Act of 1976 (Pub. Resources Code 30000) requires a coastal development permit (CDP) for any “development” resulting in a change in the intensity of use of, or access to, land or water in a coastal zone. In December 2018, Los Angeles adopted the Home-Sharing Ordinance, imposing restrictions on short-term vacation rentals, with mechanisms to enforce those restrictions. Objectors sought to enjoin enforcement of the Ordinance in the Venice coastal zone until the city obtains a CDP, claiming the Ordinance constituted a “development” requiring a CDP.The trial court denied relief, finding the petition time-barred by the 90-day statute of limitations in Government Code section 65009, and that the Ordinance does not create a change in intensity of use and, therefore, is not a “development” requiring a CDP. The court of appeal affirmed, agreeing that the 90-day statute of limitations applies, rather than the three-year statute of limitations in Code of Civil Procedure section 338(a). The court did not address whether the Ordinance constitutes a “development” subject to the CDP requirements of the Coastal Act. View "Coastal Act Protectors v. City of Los Angeles" on Justia Law

Canyon Mine is located within the Kaibab National Forest, which has been withdrawn from new mining claims; the withdrawal did not extinguish “valid existing rights.” The Trust challenged the Forest Service’s determination that Energy Fuels holds a valid existing right to operate the uranium mine, alleging that in determining that there were “valuable mineral deposits,” 30 U.S.C. 22, the Service ignored sunk costs. The Ninth Circuit previously held that the Trust had Article III standing.The Ninth Circuit subsequently affirmed the summary judgment rejection of the claim. It was not arbitrary for the Service to ignore costs that have already been incurred and cannot be recovered. Applying Chevron analysis, the court held that the critical term in the Mining Act, “valuable mineral deposits,” was ambiguous. The Department of the Interior’s interpretation of the Act, in which sunk costs are not considered when determining whether a mine is profitable, was permissible and not manifestly contrary to the Act; it was consistent with the prudent person and marketability tests. It is a basic principle of economics that sunk costs should be ignored when making a rational decision about whether to make further expenditures. It was not arbitrary for the Forest Service to rely on the Department's interpretation. View "Grand Canyon Trust v. Provencio" on Justia Law

The Enterprises, Fannie Mae and Freddie Mac, suffered financial losses in 2008 when the housing market collapsed. The Housing and Economic Recovery Act of 2008 (HERA), created the Federal Housing Finance Agency (FHFA), an independent agency tasked with regulating the Enterprises, including stepping in as conservator, 12 U.S.C. 4511.With the consent of the Enterprises’ boards of directors, FHFA placed the Enterprises into conservatorship, then negotiated preferred stock purchase agreements (PSPAs) with the Treasury Department to allow the Enterprises to draw up to $100 billion in exchange for senior preferred non-voting stock having quarterly fixed-rate dividends. A “net worth sweep” under the PSPAs replaced the fixed-rate dividend formula with a variable one that required the Enterprises to make quarterly payments equal to their entire net worth, minus a small capital reserve amount, causing the Enterprises to transfer most of their equity to Treasury, leaving no residual value for shareholders.Shareholders challenged the net worth sweep. Barrett, an individual shareholder, separately asserted derivative claims on behalf of the Enterprises. The Claims Court dismissed the shareholders’ direct Fifth Amendment takings and illegal exaction claims for lack of standing; dismissed for lack of subject matter jurisdiction the shareholders’ direct claims for breach of fiduciary duty, and breach of implied-in-fact contract; and found that Barrett had standing to bring his derivative claims, notwithstanding HERA. The Federal Circuit affirmed the dismissal of shareholders’ direct claims but concluded that the shareholders’ derivatively pled allegations should also be dismissed. View "Fairholme Funds, Inc. v, United States" on Justia Law

The Enterprises, Fannie Mae and Freddie Mac, suffered financial losses in 2008 when the housing market collapsed. The Housing and Economic Recovery Act of 2008 (HERA), created the Federal Housing Finance Agency (FHFA), tasked with regulating the Enterprises, including stepping in as conservator, 12 U.S.C. 4511. FHFA placed the Enterprises into conservatorship, then negotiated preferred stock purchase agreements (PSPAs) with the Treasury Department to allow the Enterprises to draw up to $100 billion in exchange for senior preferred non-voting stock having quarterly fixed-rate dividends. A “net worth sweep” under the PSPAs replaced the fixed-rate dividend formula with a variable one that required the Enterprises to make quarterly payments equal to their entire net worth, minus a small capital reserve amount, causing the Enterprises to transfer most of their equity to Treasury, leaving no residual value for shareholders.In a companion case, the Federal Circuit affirmed the dismissal of shareholders’ direct claims challenging the net worth sweep and concluded that the shareholders’ derivatively pled allegations should also be dismissed.The Washington Federal Plaintiffs alleged direct takings and illegal exaction claims, predicated on the imposition of the conservatorships, rather than on FHFA's subsequent actions. The Federal Circuit affirmed the dismissal of those claims. Where Congress mandates the review process for an allegedly unlawful agency action, plaintiffs may not assert a takings claim asserting the agency acted in violation of a statute or regulation. These Plaintiffs also lack standing to assert their substantively derivative claims as direct claims. View "Washington Federal v. United States" on Justia Law

The City of Gautier granted David Vindich a permit to build a 1,410 square foot garage/workshop on his .76 acre lot. When the building was almost completed, Vindich’s neighbor, Martin Wheelan, filed a lawsuit arguing the City’s decision was unlawful because Vindich actually sought a variance, which required a public hearing rather than a building permit. Thus, Wheelan said he was denied due process. Wheelan also claimed the City’s decision was arbitrary and capricious and that the workshop “completely overwhelm[ed]” the neighborhood and created a nuisance. After a trial, the chancellor dismissed Wheelan’s claims, finding that the City’s interpretation of the applicable ordinance was not manifestly unreasonable. The chancellor also found that the building was not a nuisance. Wheelan appealed, but the Court of Appeals affirmed. The Mississippi Supreme Court agreed with the appellate court's dissenting opinion, finding the City erred in its interpretation of the ordinance at issue here. The Court therefore reversed the Court of appeals and the chancery court, and remanded for further proceedings. View "Wheelan v. City of Gautier, et al." on Justia Law

The Supreme Court affirmed the judgment of the trial court dismissing Appellants' appeal from the decision of the Planning and Zoning Commission of the City of Shelton approving an application for a planned development district submitted by Shelter Ridge Associates, LLC, holding that the trial court did not err or abuse its discretion.Specifically, the Supreme Court held (1) contrary to Appellants' argument on appeal, the zoning authority conferred by Conn. Gen. Stat. 8-2 supports the creation of planned development districts; (2) the planned development district proposed by Shelter Ridge did not violate the uniformity requirement contained in section 8-2; and (3) the Commission’s decision did not result in an unlawful subdivision. View "Tillman v. Planning & Zoning Commission of the City of Shelton" on Justia Law

The Supreme Court affirmed the decision of the tax court concluding that three clinics - Perham Clinic, Ottertail Clinic, and New York Mills Clinic - were not subject to property tax because they clinics were exempt under Minn. Stat. 447.31, subd. 6, holding that there was no error.The exemption at issue is provided for hospital districts. At issue on appeal was whether to classify the three medical clinics that were owned and operated by Perham Hospital District as taxable or exempt. Otter Tail County classified the clinics as commercial and thus subject to property tax, concluding that the tax exemption at issue was available to hospitals and not to clinics. After a trial, the tax court concluded that the clinics were exempt from tax under Minn. Stat. 447.31, subd. 6. The Supreme Court affirmed, holding that the tax court did not clearly err in finding that the District used the clinics to improve and run Perham Hospital during the tax years at issue. View "Perham Hospital District v. County of Otter Tail" on Justia Law

The Army Corps of Engineers denied a permit to build student housing on the Russellville property, next to Arkansas Tech University. The land is bordered by two waterways. Downstream from the tract, the Corps maintains the Russellville Dike and Prairie Creek Pumping Station to protect Russellville from flooding by pumping water into the backwaters of the Arkansas River, away from the city. Upstream from the station is a sump, 730 acres of low-lying land that holds water that then flows toward the pumping station, The Corps purchased flowage easements giving it the right to flood the land subject to those easements to a certain elevation. Part of the tract at issue lies within the sump and is subject to an easement, "that no structures for human habitation shall be constructed." The owner proposed four apartment buildings on land subject to the easement.The Eighth Circuit upheld the denial of a permit. It is unlawful for anyone "in any manner whatever [to] impair the usefulness of any . . . work built by the United States . . . to prevent floods" unless the Corps permits it, 33 U.S.C. 408(a). The proposed construction would impair the usefulness of the Corps's pumping station. The Corps found that the structures would result in water velocities and depths that would be "a significant hazard that can deny escape," and "may threaten the lives and security of the people and property in Russellville.” View "Russellville Legends LLC v. United States Army Corps of Engineers" on Justia Law

The Supreme Court dismissed this appeal from the judgment of the district court dismissing Appellants' appeal from a decision of the Madison County Board of Commissioners for lack of appellate jurisdiction, holding that this Court lacked jurisdiction.At issue in this appeal was the Madison County Board of Commissioners' approval of the Elkhorn Valley Sportsman Club's application for a conditional use permit. Appellants appealed the Board's decision to the district court, which dismissed the appeal for failure to pay the docket fee. The Supreme Court dismissed Appellants' subsequent appeal, holding that the district court did not err in dismissing this appeal from the Board's determination for lack of appellate jurisdiction. View "Kowalewski v. Madison County Board of Commissioners" on Justia Law

Tran applied to the Department of Regional Planning for renewal of the conditional use permit (CUP) for his unincorporated Los Angeles County liquor store. Considering the store’s location and site plan, information from the California Department of Alcohol and Beverage Control, a crime report, and letters from the public, the Department recommended approval of the CUP subject to conditions. Tran objected to conditions limiting the hours of alcohol sales to 6:00 a.m.-10:00 p.m., and that distilled spirits not be sold in small containers. The Commission approved the CUP with the recommended small bottle prohibition but permitting alcohol sales from 6:00 a.m.-2:00 a.m. The County Board of Supervisors voted to review the approval. At the close of an August 1, 2017, hearing the Board voted to indicate its "intent to approve” the CUP, restricting alcohol sales to 10:00 a.m-10:00 p.m. and forbidding small bottle sales. About eight months later, the Board adopted the findings and conditions of approval prepared by county counsel and approved the CUP with the modified conditions.Tran unsuccessfully sought a judicial order to set aside the decision as untimely under the County Code, which provides that review decisions “shall be rendered within 30 days of the close of the hearing” The court of appeal vacated the Board’s decision. The 30-day time limit was mandatory, not directory. The Board failed to render its decision within 30 days. View "Tran v. County of Los Angeles" on Justia Law