Justia Real Estate & Property Law Opinion Summaries

Articles Posted in Government & Administrative Law
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Frank Griswold appealed a decision of the Homer, Alaska Advisory Planning Commission to the Homer Board of Adjustment. Griswold was a Homer resident who owned several lots within the Business District, one of which is approximately 3,280 feet from Terry and Jonnie Yager. The Yeagers applied for a conditional use permit to build a covered porch ten feet into a twenty-foot setback. Before the hearing, Griswold submitted two documents to the Commission, arguing that the setback exceptions required a variance rather than a conditional use permit and that provisions of the Homer City Code (HCC) allowing for setback exceptions by conditional use permits in the Business District conflicted with state law. After a public hearing the Commission approved the Yagers’ conditional use permit. Griswold appealed, arguing the Yeagers' permit would adversely affect the value of his Business District properties by increasing congestion in the area and that the permit would create a “pernicious precedent” for future setback exceptions in his neighborhood. Additionally Griswold said this would harm the use and enjoyment of his home. The Board rejected his appeal for lack of standing. Griswold appealed to the superior court, arguing that he had standing under the Homer City Code and alleging a number of due process violations. The superior court ruled that Griswold lacked standing as a matter of law and found any due process errors harmless. It also awarded the Board attorney’s fees on the appeal, reasoning that Griswold did not qualify for protection from attorney’s fees as a public interest litigant. The Alaska Supreme Court reversed, finding that under applicable Home City Code section, a property owner need only produce some evidence supporting the owner’s claim that the city’s action could potentially adversely affect the owner’s use or enjoyment of the owner’s property. "The individual bringing the claim must still prevail on the merits by showing that a legal remedy against such harm is available." The matter was remanded for further proceedings. View "Griswold v Homer Board of Adjustment, et al." on Justia Law

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Plaintiffs A.A. Nettles, Sr. Properties Limited, and Eula Lambert Boyles sought to quiet title a right-of-way that had been conveyed by the Alabama Railroad Company to the Monroe County Commission for use as a recreational trail in accordance with the National Trails System Act ("the Trails Act"), 16 U.S.C. 1247. The trial court quieted title in favor of plaintiffs. The Commission appealed, contending the evidence submitted was insufficient for the trial court to determine the railroad intended to abandon its interest in the right-of-way. The Alabama Supreme Court concluded the trial court did not err in concluding the easement reserved to the railroad by a right-of-way was provided in a quitclaim deed lapsed by nonuse, and was thus extinguished by operation of law, leaving nothing for the railroad to convey to the Commission. View "Monroe County Commission v. Nettles, et al." on Justia Law

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This appeal arose from four separate, yet substantively similar, lawsuits filed by the county recorders in Delaware, Chester, Bucks and Berks Counties, Pennsylvania, and their respective Counties (collectively, the Recorders). The Recorders sued appellees, MERSCORP, Inc., its wholly-owned subsidiary, Mortgage Electronic Registration Systems, Inc. (MERS), and several financial institutions who are members of MERS (collectively, MERSCORP). The issue presented for the Pennsylvania Supreme Court was whether the Commonwealth Court correctly determined that 21 P.S. 351, “Failure to record conveyance,” did not create a mandatory duty to record all mortgages and mortgage assignments in a county office for the recorder of deeds. The Third Circuit Court of Appeals reversed a federal district court’s decision and held Section 351 did not create a mandatory duty to record all land conveyances. Relying on the Third Circuit’s decision, MERSCORP filed preliminary objections in the nature of a demurrer to the Recorders’ complaints at state court, seeking dismissal on the basis that Section 351 did not provide a duty to record, and the Recorders did not have authority to enforce Section 351 in any event. The court overruled the preliminary objections, and denied MERSCORP’s request to certify its interlocutory order for an immediate appeal. MERSCORP then filed a petition for review in the Commonwealth Court; a divided Commonwealth Court reversed. The majority agreed with the Third Circuit’s conclusion in the Federal Action, specifically ruling “Section 351 does not issue a blanket command that all conveyances must be recorded; it states that a conveyance ‘shall be recorded’ in the appropriate place, or else the party risks losing his interest in the property to a bona fide purchaser.” The majority observed the plain language of Section 351 did not specify which party to a transaction must record a conveyance, nor did it state when recording must take place. The majority also recognized Pennsylvania courts have consistently interpreted Section 351 and other provisions of Title 21 as intended to protect subsequent mortgages and purchasers, and that the failure to record inherently provides a limited consequence — the loss of a priority interest. The majority found further support for its conclusion in precedent recognizing as valid even unrecorded interests in land. The majority noted the Recorders have a ministerial duty to the public to record and safeguard records presented to them for recording, but that duty does not confer standing to file actions to protect the public from “inaccurate” records in the MERS(r) system. The Recorders appealed, but finding no reversible error with the Commonwealth Court's judgment, the Supreme Court affirmed. View "MERSCORP, et al v. Delaware Co., et al." on Justia Law

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In 2005, Joliet proposed to condemn and raze New West's apartments as a public nuisance. By 2017 the district court held that Joliet is entitled to condemn the buildings, set just compensation at $15 million, and held that New West cannot obtain relief against the city under federal housing discrimination statutes. The Seventh Circuit affirmed. The parties then disputed the status of a reserve fund, about $2.8 million, that the Department of Housing and Urban Development (HUD) held for the federally-subsidized apartment complex. New West argued that the money came from rents to which it was entitled by contract with HUD and that, once it no longer had responsibility for the buildings, HUD must write it a check. The district court recognized that the fund was not part of the condemnation or housing-discrimination suits, but nonetheless rejected New West’s claim and concluded that the fund should accompany the buildings. The Seventh Circuit vacated. HUD controls the reserve fund and is the only entity that can use or disburse it; HUD was dismissed as a party in 2013. The court lacked authority to order HUD to do anything. New West needs to file a new action, seeking an order that the federal government pay it a sum of money, in the Court of Federal Claims, under the Tucker Act or in the district court. “In either forum, the judge should start from scratch, disregarding the missteps in the condemnation suit.” View "Joliet v. New West, L.P." on Justia Law

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In this matter arising from a condemnation proceeding initiated by the West Virginia Department of Transportation, Division of Highways, the Supreme Court accepted questions certified by the circuit court and answered, among other things, that when the DOT initiates a condemnation proceeding that involves a partial taking of land in connection with a highway construction project and when, as a result of the project, a residue tract not needed by the State for public road purposes has been rendered landlocked, a court cannot require the Division of Highways to acquire the landlocked residue by condemnation.The federally-funded highway construction project in this case resulted in residue property being rendered landlocked. The Supreme Court answered questions certified to it by the circuit court and answered, under the circumstances of this case, that (1) the question of whether the residue has become an "uneconomic remnant" is not a question of fact to be determined by a jury; (2) the Division of Highways, over the objection of the landowner, may mitigate the damage to the residue by restoring reasonable public road access thereto; and (3) the trial court cannot require the Division to acquire the landlocked residue by condemnation. View "West Virginia Department of Transportation, Division of Highways v. Echols" on Justia Law

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The Supreme Court affirmed the decision of the district court finding that it lacked jurisdiction over the assessment decision of the Board of Equalization of the City of Omaha exercising a quasi-judicial function as a result of Appellant's failure to file an appeal bond with the city clerk within twenty days, holding that the statutory scheme requires that an appellant execute a bond with the city clerk within twenty days, which Appellant did not do in this case.Appellant personally appeared before the Board to protest a proposed special assessment to be levied on his property. The Board denied Appellant's protest. The City Council for the City of Omaha subsequently levied the special assessment on Appellant's property. Appellant appealed, The district court found that Appellant had failed to comply with Neb. Rev. Stat. 14-813 by not filing an appeal bond with the city clerk within twenty days, thus dismissing Appellant's appeal for lack of jurisdiction. The Supreme Court affirmed, holding that the district court correctly dismissed Appellant's appeal for lack of jurisdiction. View "Glasson v. Board of Equalization of City of Omaha" on Justia Law

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Respondents were four Ranch owners who, with notice of the Lake Fork Hunting and Fishing Club’s (the Club) restrictive covenants and bylaws, purchased deeds conferring record title to their respective Ranches. In 2015, the Hinsdale County Assessor conducted valuations of the Respondents’ Ranches and assessed property taxes to their parcels. Respondents protested these valuations and assessments to the Hinsdale County Board of Equalization (the BOE), which denied their petitions. Respondents then appealed the BOE’s determination to the Board of Assessment Appeals (the BAA), arguing that because of the Club’s restrictive covenants and bylaws, the Club was the true owner of those parcels and should have been held responsible for real property taxes. The BAA denied the Respondents’ appeal and affirmed the Assessor’s valuation of the Ranch parcels. The Ranch owners then appealed the BAA’s decision to the court of appeals, which reversed the BAA’s order. Given the extent of the Club’s control over the property, the court of appeals concluded that the Club was the true owner of the parcels for purposes of property taxation and viewed the Ranch owners’ interests as akin to mere licenses to conduct certain activities on the Club’s property. The Colorado Supreme Court reversed, finding Colorado’s property tax scheme reflected the legislative intent to assess property taxes to the record fee owners of real property. “Because Respondents voluntarily agreed to the restrictive covenants and bylaws that facilitate the collective use of their property for recreational purposes, we hold that they cannot rely on these same restrictive covenants and bylaws to avoid property tax liability that flows from their record title ownership.” Accordingly, the court of appeals erred in relying on the Club’s restrictive covenants and bylaws to conclude that the Club is the “owner” of the Ranch parcels and that the Ranch owners hold mere licenses to use Club grounds. The court further erred in holding that the Assessor therefore improperly valued the Respondents’ parcels. View "Hinsdale County v. HDH Partnership" on Justia Law

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The Supreme Judicial Court affirmed in part and vacated in part the judgment of the Business and Consumer Docket entering a declaratory judgment invalidating all rules and regulations previously promulgated by Fall Line Condominium Association's Board of Directors, holding that the declaratory judgment voiding rules and regulations not approved by a majority in interest of unit owners that concern the use of units, common areas, and facilities was proper but that the declaratory judgment as to all other rules and regulations was not.Plaintiffs, who owned a unit at Fall Line, filed a complaint against the Association and certain members of the Board seeking a declaratory judgment that all rules, regulations, and limitations affecting unit owners and their use of their units and any common element at the condominiums not approved by a majority in interest by the unit owners were void. The Business Court granted summary judgment in favor of Plaintiffs. The Supreme Judicial Court held (1) the Association's bylaws unambiguously states that the Board, in order to promulgate or amend rules of conduct concerning the use of the units, common areas, and facilities, must seek approval from a majority in interest of unit owners; and (2) there is no such limitation on other types of rules or regulations governing the general operation and use of the property. View "Scott v. Fall Line Condominium Ass'n" on Justia Law

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The Supreme Court vacated the portion of the order of the Arizona Corporation Commission requiring a public utility to apply for Commission approval of a proposed condemnation, holding that Ariz. Rev. Stat. 40-285(A) does not give the Commission power over a city's exercise of eminent domain.Section 40-285(A) gives the Commission authority to approve the sale or disposition of a public service corporation's assets. In the instant case, voters authorized and the city council approved the filing of a condemnation action by the City of Surprise of condemning substantially all the assets of Circle City Water Company, LLC, including the right to four thousand acre-feet of water per year from the Central Arizona Project (CAP). A residential developer asked the Commission to enter an order preventing the "sale" of Circle City's CAP allocation to the City. The Commission ordered Circle City to file an application under section 40-285 seeking Commission authorization to "dispose of" its utility. The Supreme Court vacated the order in part, holding that the Commission has no authority to regulate condemnations under section 40-285(A). View "City of Surprise v. Arizona Corporation Commission" on Justia Law

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The Court of Appeals reversed the decision of the Appellate Division affirming the decision of Supreme Court annulling the decision of the New York City Landmarks Preservation Commission (LPC) to approve the redevelopment of 346 Broadway, a historic building that the LPC previously designated as a landmark, holding that the LPC's decision was not irrational or affected by errors of law.If an application seeks to alter or demolish a landmark, the LPC must issue a certificate of appropriateness (COA) before the proposed work can begin. In this case, a developer seeking to convert the 346 Broadway into private residences sought a COA from the LPC. The LPC approved the proposal. Supreme Court annulled the COA, The Appellate Division affirmed. The Court of Appeals reversed, holding that the Appellate Division erred in concluding that the LPC acted with "no rational basis" and that the LPC's decisions were not affected by an error of law. View "Save America's Clocks, Inc. v City of New York" on Justia Law