Justia Real Estate & Property Law Opinion Summaries

Gary Fordham, David Thompson, and Venture Sales, LLC appealed a chancery court order that dissolved Venture Sales pursuant to Mississippi Code Section 79-29-802 (Rev. 2009). Walter Ray Perkins owned 27.7 acres of land. Sometime in the late 90s, he was approached by Fordham and Thompson about a potential business venture involving his land. Perkins, Fordham, and Thompson eventually agreed that Fordham and Thompson would acquire the 438 acres of land that adjoined Perkins's land; the parties would combine their respective land, along with some cash, and form a venture to develop the land. Following the contributions, the operating agreement of Venture Sales was revised to reflect the arrangement. The parties signed the new operating agreement in 2000. In February 2010, Perkins filed an application for judicial dissolution of Venture Sales. Following a trial, the chancellor found that, based on the property's history, the company's inability to get funding for development, and the uncertainty regarding the economic climate in the area, it was not reasonably practicable to carry on the business of Venture Sales. The chancellor therefore ordered the company dissolved. Upon review, the Supreme Court determined that the chancellor's decision to order the dissolution of Venture Sales was not an abuse of discretion: substantial evidence existed supporting the chancellor's determination that it was not reasonably practicable for Venture Sales to carry on business in conformity with its operating agreement.

Lamar Hooker appealed a chancery court's grant of Stephen Greer's Motion for Partial Summary Judgment, in which the court awarded attorney's fees to Greer based on Hooker's improper filing of a lis pendens, and Greer's Motion for Summary Judgment on Hooker's counterclaim. Greer and Hooker knew each other for more than thirty years, having worked together in multiple business ventures. In early 2002, Greer and Hooker entered into an agreement for the purchase, development, and sale of two tracts of land to which each made monetary contributions and participated in certain decisions regarding the development and marketing of the properties. In September 2003, Greer sent a letter to Hooker in which he cancelled their business arrangement. In this letter, he characterized the relationship as a "proposed joint venture" and declared such proposed venture "null and void." Greer claimed the venture was predicated on Hooker's ability to put up one half of the initial capital investment to purchase the properties, and that Hooker had failed to do so. Upon review, the Supreme Court affirmed the trial court's finding that the lis pendens was improperly filed. However, because the trial court based the attorney's fees award on an improper interpretation of the Litigation Accountability Act, the Court reversed the judgment, vacated the award, and remanded for further consideration. Finally, the Court affirmed the trial court's grant of summary judgment for Greer on Hooker's counterclaim, holding that his claim was subject to a three-year statute of limitations and was thus time-barred.

This case came before the Supreme Court on interlocutory appeal from the Circuit Court of Warren County in which the circuit court affirmed in part and reversed in part the county court's grant of summary judgment for Plaintiff James Hobson, Jr. Defendants Chase Home Finance, LLC, and Priority Trustee Services of Mississippi, LLC (collectively, Chase) appealed the circuit court's affirmance of their liability. Plaintiff cross-appealed the circuit court's order that vacated the county court's award and ordered trial on damages. The dispute arose from Plaintiff's purchase of real property at a foreclosure sale. He tendered a cashier's check to Chase's agent, for which Chase gave Plaintiff a receipt. Approximately two weeks later, Chase returned Plaintiff's check and refused to tender a deed to the property, stating that the foreclosure sale had been cancelled due to the original borrower's reinstatement. Plaintiff sued for breach of contract, arguing that Defendants breach was grossly negligent, and requested actual and punitive damages along with attorney's fees. Upon review, the Supreme Court found that the borrower's alleged reinstatement prior to the foreclosure sale created a genuine issue of dispute regarding Chase's liability, and, therefore, the Court held that the circuit court erred in affirming the county court's grant of summary judgment as to liability. Accordingly, the Court reversed the circuit court's judgment and remand to the county court for further proceedings.

J.C. and Betty Lockhart owned a life estate in an undivided one-fourth interest in 160 acres in Monroe County, Mississippi. After the death of J.C., Betty Lockhart filed a complaint to partition by public sale the land that she shared with her in-laws, Bolin and Orene Hamilton. The Hamiltons also owned a life estate in the same property, and they maintained the property as their homestead. Additionally, Lockhart sued Richard and Peggy Collins, who have a future interest in the property as remaindermen. The trial court dismissed Lockhart's petition, and Lockhart appealed. Because Lockhart failed to meet the statutory requisites for a partition sale, the Supreme Court affirmed the chancellor's ruling.

The issue before the Supreme Court concerned whether the Union County Circuit Court erred in finding that the City of New Albany Board of Aldermen's (City) decision that a tract of land had been legally rezoned from agricultural to industrial was arbitrary and capricious and that the City failed to give statutorily required notice before changing the zoning designation. Upon review of the trial court record and the applicable legal authority, the Supreme Court found that the circuit court did not err: in finding that the City acted arbitrarily and capriciously; in finding that the City failed to give statutorily required notice; and in concluding that the property should remain zoned for agricultural use. The Court vacated the Court of Appeals' holding and reinstated the judgment of the circuit court.

J. C. and Betty Lockhart owned a life estate in an undivided one-fourth interest in 160 acres in Monroe County, Mississippi. After the death of J.C., Betty Lockhart filed a complaint to partition by public sale the land that she shared with her in-laws, Bolin and Orene Hamilton. The Hamiltons also owned a life estate in the same property, and they maintained the property as their homestead. Additionally, Lockhart sued Richard and Peggy Collins, who had a future interest in the property as remaindermen. The trial court dismissed Lockhart’s petition, and Lockhart appealed. Because Lockhart failed to meet the statutory requisites for a partition sale, the Supreme Court affirmed the chancellor’s ruling.

The Secretary of State of Mississippi (State) and the City of Ocean Springs (Ocean Springs) appealed a chancery court's decision that enjoined the construction of a sidewalk. The sidewalk would have run along a beach adjacent to the seawall on property claimed by Respondents Clyde Gunn, III and Neil Harris in Ocean Springs. The issue before the Supreme Court was whether the chancellor erred in granting the permanent injunction. The State and Ocean Springs asserted that the chancellor erred in issuing the permanent injunction because: her finding of irreparable injury was not supported by substantial evidence; an adequate remedy at law was available; and she failed to rule on the merits of the underlying dispute regarding ownership of the land where the proposed sidewalk was to be located. Upon review, the Supreme Court found no error in the chancellorâs earlier determination that irreparable injury would result if she did not grant an injunction and that no adequate remedy at law was available. The Court concluded that the chancellorâs order and opinion was in fact a preliminary injunction, incorrectly styled as a permanent injunction: "[i[t is clear from its language that the chancellor sought to protect the interests of all parties until ownership of the property could be determined. We therefore remand this case to the Hinds County Chancery Court, vacate the permanent injunction, and leave the earlier-issued preliminary injunction in place."

The central issue in this case was whether an oil company could deduct reasonable processing and investment costs from the payments it made to royalty owners. If so, the Supreme Court had to determine whether Mississippi code 53-3-39 was applicable in calculating the damages owed to the royalty owners for unreasonable deductions. Upon review, the Supreme Court affirmed the chancellor's holding that reasonable processing and investment costs could be deducted from royalty owners' payments. However, the Court determined that the chancellor erred by failing to apply 53-3-39 to calculate damages. Thus, the Court partly affirmed, partly reversed the chancellor's decision, and remanded the case for recalculation of damages.

Respondent Tim Norris failed to pay his 2005 property taxes on his restaurant in Jackson. In 2006, Sass Muni purchased the restaurant in a tax sale. When Mr. Norris did not redeem the property within the statutory two-year period, a tax deed was issued to Sass Muni, who then deeded the property to Petitioner Rebuild America, Inc. When Rebuild America filed suit to confirm its title, Mr. Norris intervened, arguing that he was never served with notice of the tax sale. He moved to have the tax sale set aside. The chancellor set the tax sale aside, and Rebuild America appealed. The appellate court affirmed the chancery court's ruling. Rebuild America appealed again to the Supreme Court. The Supreme Court agreed with the appellate court's analysis of the issues presented on appeal, and affirmed its holding.