Justia Real Estate & Property Law Opinion Summaries

Articles Posted in Iowa Supreme Court
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Several landowners owned a tract of land near the intersection of a highway and Interstate 35. The Iowa Department of Transportation (DOT) planned to modernize the interchange and condemned a strip of the landowners' property. The landowners anticipated being able to install a commercial entrance to the highway based on prior discussions with the DOT. However, the DOT's formal notice of condemnation indicated that all rights of direct access to the highway would be taken. The landowners filed actions challenging the condemnation after being informed that commercial access would not be allowed.The Iowa District Court for Story County dismissed the landowners' actions as untimely, citing the thirty-day deadline for challenging the exercise of eminent domain authority under Iowa Code section 6A.24(1). The landowners also delayed filing their notice of appeal in the district court, which was filed fifty-seven days after the dismissal order, although it was served on the DOT within twenty-two days.The Iowa Supreme Court reviewed the case and concluded that the delay in filing the notice of appeal was not fatal, as the thirty-five days from service to actual filing was deemed a reasonable time under Iowa Rule of Appellate Procedure 6.101(4). However, the court found that the landowners' challenge to the condemnation was untimely under Iowa Code section 6A.24(1), which requires actions to be commenced within thirty days after service of notice of assessment. The court held that this statute is the exclusive method for challenging the exercise of eminent domain authority and does not allow for exceptions or the application of a discovery rule. Consequently, the Iowa Supreme Court affirmed the district court's dismissal of the landowners' case. View "Brendeland v. Iowa Department of Transportation" on Justia Law

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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

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Graphite Construction Group, Inc. (Graphite) was hired by Des Moines Area Community College (DMACC) in 2019 for a construction project. DMACC withheld 5% of each payment as retainage, amounting to about $510,000 by January 2022. Graphite requested the release of the retainage, but the project was not yet completed. A dispute arose between Graphite and a subcontractor, Metro Concrete, Inc. (Metro), over unpaid services. Metro filed a claim, and Graphite filed a bond for twice the amount of Metro’s claim, demanding the release of the retainage.The Iowa District Court for Polk County denied Graphite’s motion to compel the release of the retainage, stating that under Iowa Code chapter 573, retainage could not be released before the project’s completion and final acceptance. The court also denied Graphite’s request for attorney fees, as Graphite had not prevailed on its retainage claim.The Iowa Court of Appeals reversed the district court’s decision, ordering the release of the retainage to Graphite but denied Graphite’s request for attorney fees. DMACC sought further review from the Iowa Supreme Court.The Iowa Supreme Court vacated the Court of Appeals' decision and affirmed the district court’s judgment. The Supreme Court held that under Iowa Code chapter 573, retainage could not be released before the project’s completion and final acceptance, and the statutory exceptions did not apply in this case. The court also upheld the denial of attorney fees to Graphite, as they were not the prevailing party. View "Rochon Corporation of Iowa, Inc. v. Des Moines Area Community College" on Justia Law

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The case involves a dispute over the boundary between two parcels of land in Wapello County, Iowa. The northern parcel was owned by the Handlings and the southern parcel by the Sims. Both parties treated a fence line as the boundary between their properties for many years. In the mid-1990s, Scott Hubbell began leasing both properties for farming. In 2004, he built a machine shed south of the fence line, assuming it was on the southern property. In 2014, Hubbell and his wife purchased both properties, becoming the sole owners. In 2017, they sold the southern property to the Remmarks and in 2018, they sold the northern property to Sundance Land Company. A survey commissioned by Sundance revealed that the legal boundary between the properties ran south of the fence line, meaning the machine shed was encroaching onto the northern property. Sundance filed a petition to quiet title according to the survey boundary lines, alleging that the Remmarks were trespassing on the northern property.The district court found that a boundary line by acquiescence had been established at the old fence line during the Handlings’ and Sims’ respective ownership of the properties. The court rejected Sundance’s argument that the Hubbells’ common ownership of both parcels from 2014 to 2017 erased the boundary by acquiescence. The court of appeals affirmed the district court's decision.The Supreme Court of Iowa disagreed with the lower courts' decisions. The court held that when two adjoining parcels come under common ownership, any potential boundary by acquiescence between them is eradicated, and the ten-year clock for calculating boundary by acquiescence restarts when separate ownership resumes. The court vacated the decision of the court of appeals, reversed the district court judgment, and remanded for entry of judgment for Sundance in accordance with this opinion. View "Sundance Land Company, LLC v. Remmark" on Justia Law

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The case involves a landowner, Medardo Rivera, who sought to clear an easement from his property. The easement was granted by a previous owner of the property to Clear Channel Outdoor, Inc., and later assigned to TLC Properties, Inc., an affiliate of Lamar Advertising Company. The easement allowed for the construction and operation of billboards on the property. Rivera argued that the easement was void as it was granted after he had already purchased the property.The district court granted summary judgment in favor of the easement holder, ruling that Rivera's action was time-barred under Iowa Code section 614.17A. This statute prevents actions to recover or establish an interest in real estate if the action is based on a claim arising more than ten years earlier, is against the holder of the record title to the real estate in possession, and the holder and their grantors have held chain of title to the real estate for more than ten years.The Supreme Court of Iowa reversed the district court's decision. The court agreed with Rivera's argument that section 614.17A could not apply to an action to clear an easement. The court reasoned that by its terms, section 614.17A only applies to claims against a "holder of the record title to the real estate in possession." Because easements are nonpossessory interests, an easement holder does not possess the encumbered real estate, and so section 614.17A cannot apply to an action to clear an easement. The case was remanded for further proceedings. View "Rivera v. Clear Channel Outdoor, LLC" on Justia Law

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An elderly woman, Janice Geerdes, and her long-time friend, Albert Gomez Cruz, had a partnership raising hogs on a piece of land. Initially, Janice deeded half of her interest in the land to Albert. Over a decade later, she deeded the rest of her interest in the land to Albert, receiving nothing in return. About six months later, Janice’s adult daughters were appointed her conservator and guardian. The conservator challenged the validity of the quitclaim deed based on undue influence and lack of capacity.The district court set aside the deed, finding that there was undue influence through a confidential relationship and that Janice lacked the necessary capacity to deed her interest in the land. The court of appeals affirmed the decision on the basis of lack of capacity.The Supreme Court of Iowa, however, disagreed with the lower courts. The Supreme Court found that the conservator did not establish by clear, convincing, and satisfactory evidence that there was undue influence or that Janice lacked capacity at the time of the gift. The court found that the lower courts gave too much weight to the perceived improvidence of the transaction and too little weight to the testimony of the third-party accountant who witnessed the transaction. Therefore, the Supreme Court vacated the decision of the court of appeals, reversed the district court judgment, and remanded for further proceedings. View "Conservatorship of Janice Geerdes v. Cruz" on Justia Law

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The case revolves around Lori Randolph, who was injured after falling down stairs in a rental property owned by Aidan, LLC. Randolph sued Aidan, alleging negligence in failing to provide safe stairs. Aidan, in turn, filed a third-party claim against Sioux City, asserting that a city employee had inspected the property and declared it compliant with the municipal code. Aidan claimed that the city was negligent in hiring, retaining, or supervising the unqualified inspector, and thus, should indemnify Aidan for any damages owed to Randolph. Sioux City moved to dismiss Aidan’s claim, arguing it was immune under Iowa Code section 670.4(1)(j).The district court denied Sioux City's motion to dismiss Aidan's claim. Sioux City and Randolph requested interlocutory review, which was granted. The Supreme Court of Iowa was tasked with reviewing the denial of Sioux City's motion for the correction of errors at law.The Supreme Court of Iowa reversed the district court's decision. The court held that Sioux City was immune from Aidan's claim under Iowa Code section 670.4(1)(j). The court reasoned that Aidan's claim for negligent hiring was "based upon" the negligence of Sioux City's employee in inspecting the stairs. Therefore, the claim fell within the scope of the immunity provided by section 670.4(1)(j). The court remanded the case for further proceedings, including the dismissal of Aidan's claim against Sioux City. View "Randolph v. Aidan, LLC" on Justia Law

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The Supreme Court of Iowa affirmed the decision of the Court of Appeals and the District Court in favor of the City of Des Moines, in a case brought by Lime Lounge, LLC. Lime Lounge, a bar, challenged a city ordinance requiring it to obtain a conditional use permit (CUP) to operate. After receiving noise complaints, the City revoked Lime Lounge's CUP, which was upheld in a prior appeal. Lime Lounge then challenged the ordinance arguing it was preempted by Iowa Code, violated equal protection and spot zoning prohibitions. The trial court dismissed Lime Lounge's claims and this decision was affirmed by the Court of Appeals.The Supreme Court of Iowa found that the city's ordinance was not preempted by state law. Rather, it was a proper exercise of the city's zoning authority and did not create a separate local alcohol license. The Court also rejected Lime Lounge's equal protection claim, holding that the city had a legitimate purpose in imposing a CUP on specific businesses selling alcohol. Finally, the Court dismissed the claim of illegal spot zoning, as Lime Lounge failed to prove that the city had engaged in such activity. The Court thus affirmed the dismissal of Lime Lounge's challenge to the ordinance. View "Lime Lounge, Inc. v. City of Des Moines, Iowa" on Justia Law

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In this case, the Iowa Supreme Court reviewed a dispute involving property owners David and Jeanie Vaudt and Wells Fargo Bank, which held the mortgage on neighboring property owned by Fredesvindo Enamorado Diaz and Denice Enamorado. The Vaudts had installed a landscaping barrier that encroached on the Enamorado's property. When the Enamorados disputed the boundary, the Vaudts filed a petition to quiet title, claiming boundary by acquiescence and adverse possession. Wells Fargo moved to dismiss the claims, arguing they were time-barred by a one-year statute of limitations related to property transfers by trustees. The district court agreed with Wells Fargo, citing a previous Iowa Supreme Court ruling (Heer v. Thola).The Vaudts appealed, asking the Supreme Court to overrule Heer. They argued their claims arose from the conduct of the Enamorados' predecessors in interest, not the transfer of property by the trustee's deed. The Supreme Court agreed with the Vaudts, stating that Heer incorrectly interpreted the statute of limitations, which applies specifically to claims arising from transfers by trustees, not to all adverse claims. The court overruled Heer, rejecting its broad application of the one-year statute of limitations to boundary-by-acquiescence claims.The court reversed the district court's dismissal of the Vaudts' claims, remanding the case for further proceedings. View "Vaudt v. Wells Fargo Bank, N.A." on Justia Law

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The Supreme Court affirmed the judgment of the district court affirming the decision of the Iowa Utilities Board (IUB) to grant MidAmerican Energy Company's petition for a franchise to build electric transmission lines in Madison County, some of which would run through a road right-of-way encumbering Appellant's land, holding that MidAmerican satisfied the statutory requirements for a franchise.Specifically, the Supreme Court held (1) MidAmerican satisfied the statutory requirement that new electric transmission lines must be necessary for a public use; (2) Iowa Code 306.46(1) provides utilities like MidAmerican with statutory authority to construct, operate, repair, or maintain their utility facilities with a public road right-of-way, including that right-of-way at issue in this case; and (3) as to the question of whether the construction of electric transmission lines within Appellant's right-of-way could result in a constitutional taking requiring compensation, this Court is evenly divided. View "Juckette v. Iowa Utilities Bd." on Justia Law