Justia Real Estate & Property Law Opinion Summaries

Husband obtained a purchase-money mortgage from Bank to invest in commercial real estate. Wife's signature was forged in executing the purchase-money mortgage. After Husband's death, Bank attempted to foreclose its mortgage, but Husband's Estate and Wife asserted Wife's fraudulent signature voided the mortgage. The district court (1) granted Bank summary judgment, concluding its purchase-money mortgage was superior to Wife's statutory dower interest and the Estate's other debts and charges; and (2) ordered any excess sale proceeds to be paid to the Estate. The court of appeals (1) affirmed the award of summary judgment; but (2) reversed the district court's determination that the foreclosure sale surplus be paid to the Estate, instead holding that Wife's statutory dower interest took priority over the Estate's other debts and charges. The Supreme Court affirmed the court of appeals, holding that a surviving spouse's dower interest, codified in Iowa Code 633.211 as to nonhomestead real property, was not subject to the debts and charges of the Estate of the spouse who died intestate.

In this condemnation case, Plaintiffs brought an action against the Iowa Department of Transportation (IDOT) and the State. IDOT's motion to dismiss was granted. Subsequently, the district court granted summary judgment for the State, concluding that Plaintiffs' exclusive remedy was a mandamus action to compel condemnation proceedings. The court then dismissed the first action. Before the district court had entered its summary judgment ruling, Plaintiffs petitioned for writ of mandamus against IDOT in a second action. After the court granted summary judgment for the State, IDOT filed a motion for summary judgment, arguing that the dismissal of the first action barred Plaintiffs from bringing the second action under both claim and issue preclusion. The district court disagreed and granted Plaintiffs' requested writ of mandamus. Defendants appealed on the issue of claim preclusion. The Supreme Court affirmed, holding that when a court order dismissing an action reveals the court's intent to preserve a claim arising out of the same transaction that is pending in another lawsuit, the claim in the other lawsuit should be allowed to proceed.

Plaintiffs, landowners, challenged special assessments against their property for public improvements to a residential subdivision made by the city. Plaintiffs argued that the city council's decision to make public improvements within a subdivision rendered the city unable to assess the costs of the improvements to the landowners when a city ordinance provided for the improvements to be made by the subdivider. The district court (1) determined the city failed to enforce a subdivision ordinance requiring the subdivider to pay for street improvements but concluded that Plaintiffs failed to state a claim upon which relief could be granted because a city cannot be sued for its failure to enforce ordinances; and (2) found the assessments were not excessive. The Supreme Court affirmed, holding (1) Plaintiffs failed to state a claim upon which relief could be granted, (2) the city's failure to require the subdivider to personally make all improvements did not invalidate the authority of the city to assess property owners, and (3) the Plaintiffs did not establish the assessments to their property exceeded the special benefits provided by the improvement.

Plaintiffs, landowners, challenged special assessments against their property for public improvements to a residential subdivision made by the city. Plaintiffs argued that the city council's decision to make public improvements within a subdivision rendered the city unable to assess the costs of the improvements to the landowners when a city ordinance provided for the improvements to be made by the subdivider. The district court (1) determined the city failed to enforce a subdivision ordinance requiring the subdivider to pay for street improvements but concluded that Plaintiffs failed to state a claim upon which relief could be granted because a city cannot be sued for its failure to enforce ordinances; and (2) found the assessments were not excessive. The Supreme Court affirmed, holding (1) Plaintiffs failed to state a claim upon which relief could be granted, (2) the city's failure to require the subdivider to personally make all improvements did not invalidate the authority of the city to assess property owners, and (3) the Plaintiffs did not establish the assessments to their property exceeded the special benefits provided by the improvement.

During the administration of Ralph Roethler's estate, the executor of the estate did not notify Becky and Kent Lewis that Roethler's will gave the Lewises a first right to purchase eighty acres of farmland. The Lewises later sought to reopen Ralph Roethler's etate to allow them to exercise the option. The district court held that the Lewises met the statutory grounds set out in Iowa Code 633.489 to reopen the estate. The court of appeals reversed, holding that the Lewises' petition to reopen was time-barred. On review, the Supreme Court vacated the decision of the court of appeals and affirmed the district court's judgment, holding (1) the Lewises' petition to reopen satisfied the statutory grounds set forth in section 633.489 to reopen an estate, and (2) the district court properly construed the will to permit the Lewises to exercise their first right of purchase irrespective of the executor's intent to sell the land.

Bill Ernst gave Johnny Vajgrt permission to enter his property to remove a fallen tree. Vajgrt subsequently uprooted approximately forty live trees on Ernst's property. After Vajgrt died, Ernst filed a claim seeking compensatory damages and exemplary damages for the diminution of value of property, value of trees, and expenses for restoration of property. In addition, Ernst sought punitive damages. The district court awarded Ernst compensatory damages but declined to award any punitive damages, stating that it was well settled in Iowa that punitive damages may not be recovered from the estate of a deceased tortfeasor. On appeal, the Supreme Court affirmed, concluding that it would defer to the legislature's prior decisions and the Court's established precedents as it was not persuaded that it should reconsider those precedents.

Two corporations organized as multiple housing cooperatives appealed the classification of their real estate as commercial for property tax purposes to the Jasper County Board of Review. The board did not alter the classification of the properties, and the cooperatives appealed. The district court affirmed the board's determination, concluding that the cooperative was actually operating as a standard rental property. After granting the cooperatives' combined motion for amendment and enlargement of findings and for a new trial, the district court concluded the cooperatives had followed all proper corporate formalities and were set up exactly as prescribed by Iowa law. Accordingly, the court reversed its prior ruling and concluded the real estate should properly be classified as residential. The court of appeals affirmed. On review, the Supreme Court affirmed, holding (1) Iowa law requires property owned by residential cooperatives, properly organized under chapter Iowa Code chapter 499A, to be classified as residential and taxed at residential property rates; and (2) because the cooperatives were operating on a nonprofit basis, there was no basis for penetrating the corporate veil.