Justia Real Estate & Property Law Opinion Summaries

In 1922, the Territory of Hawai‘i issued a Land Patent for a 3.99-acre property to a trustee for the Church of Jesus Christ of Latter-Day Saints, with a deed restriction requiring the property to be used “for Church purposes only.” If used otherwise, the property would revert to the Territory. Over the years, the property changed hands several times, with each transaction referencing the original deed restriction. The current owners, Hilo Bay Marina, LLC and Keaukaha Ministry LLC, are not religious institutions and sought to have the restriction removed, arguing it was void under Hawai‘i Revised Statutes § 515-6(b), and violated both the Hawai‘i and Federal Establishment Clauses.The Circuit Court of the Third Circuit granted summary judgment for the State of Hawai‘i and its Board of Land and Natural Resources, finding that the deed restriction was a permissible form of early use-zoning, did not violate the cited laws, and was covered by the statutory exemption for religious use. The court also concluded that the restriction did not violate either the Hawai‘i or Federal Establishment Clauses, applying both the Lemon test and the more recent “historical practices and understandings” standard from Kennedy v. Bremerton School District.On appeal, the Supreme Court of the State of Hawai‘i reviewed the case de novo. The court found that the record did not support the lower court’s conclusion that the deed restriction was an early form of use-zoning. It held that the State’s enforcement of the restriction violated the Hawai‘i Establishment Clause, as it required the State to actively police religious use and entangled the government with religious affairs. The court reversed the Circuit Court’s judgment for the State, vacated its ruling on the Federal Establishment Clause, and held that summary judgment should be entered for the plaintiffs. View "Hilo Bay Marina, LLC v. State" on Justia Law

After the death of Arthur L. Bacon, Richard D. Gaynor, acting as the personal representative of Bacon’s estate, filed a lawsuit against Tom L. Larkin and Jerome B. Williams. The complaint alleged that a durable power of attorney in favor of Larkin was recorded shortly after Bacon’s death, though it was purportedly executed in 2019. It further claimed that, just hours before Bacon died, Larkin executed a deed transferring all of Bacon’s real property to Williams. The estate sought to void the conveyance and requested damages.Williams and Larkin each filed motions to dismiss. The Talladega Circuit Court granted Larkin’s motion to dismiss on March 3, 2025, but did not resolve the claims against Williams. On the same day, the court ordered the plaintiff to amend the complaint within 30 days to include necessary heirs or real parties in interest. Gaynor requested more time to respond, which both defendants opposed. On April 11, 2025, Gaynor filed a notice of appeal to the Supreme Court of Alabama, challenging the dismissal of Larkin. Subsequently, the circuit court entered an order stating that the dismissal of Larkin was a final order for purposes of appeal, referencing Alabama Rules of Civil Procedure.The Supreme Court of Alabama reviewed whether it had jurisdiction over the appeal. The Court held that, because the circuit court’s order did not dispose of all claims against all parties and lacked a proper Rule 54(b) certification at the time the notice of appeal was filed, there was no final judgment. The Court declined to remand for possible certification and dismissed the appeal for lack of a final, appealable order. View "Gaynor v. Larkin" on Justia Law

A charter city in California was required by state law to update its housing element—a component of its general plan addressing housing needs—by October 15, 2021. The city submitted a draft housing element to the California Department of Housing and Community Development (HCD), which found the draft would comply with state law if adopted. However, the city refused to adopt the revised housing element, citing concerns about environmental impacts and the number of affordable housing units required. The city also filed a federal lawsuit challenging the constitutionality of the Housing Element Law, which was ultimately dismissed for lack of standing.The People of California, represented by the Attorney General and the HCD, filed a petition for writ of mandate in the Orange County Superior Court, later transferred to the San Diego County Superior Court, seeking to compel the city to adopt a compliant housing element. The Kennedy Commission, an affordable housing advocacy group, intervened. The trial court granted the State’s petition for writ of mandate, finding the city had a ministerial duty to adopt a compliant housing element, but the court’s order did not include a 120-day compliance deadline or provisional remedies limiting the city’s permitting and zoning authority, as requested by the State. The court also stayed further proceedings due to pending appeals and unresolved cross-petitions.The California Court of Appeal, Fourth Appellate District, Division One, reviewed the case. It held that Article 14 of Chapter 3 of Division 1 of Title 7 of the Government Code, which includes the 120-day compliance deadline and provisional remedies, applies to enforcement actions against charter cities. The court directed the trial court to vacate its prior order and issue a new order including the required compliance deadline and provisional remedies, and to lift its stay and expeditiously resolve remaining issues. The court declined to order entry of final judgment while other pleadings remained unresolved. View "Kennedy Commission v. Superior. Ct." on Justia Law

A hotel in the Town of Newburgh, New York, agreed to provide long-term housing to asylum seekers as part of a program initiated by New York City. In response, the Town alleged that the hotel’s actions violated local zoning and occupancy ordinances, which limited hotel stays to transient guests for no more than 30 days. The Town inspected the hotel, found modifications suggesting long-term use, and filed suit in the Supreme Court of the State of New York, Orange County, seeking to enjoin the hotel from housing asylum seekers for extended periods. The state court issued a temporary restraining order, but allowed the asylum seekers already present to remain pending further orders.The hotel removed the case to the United States District Court for the Southern District of New York, arguing that the Town’s enforcement was racially motivated and violated Title II of the Civil Rights Act of 1964, thus justifying removal under 28 U.S.C. § 1443(1). The district court found that removal was improper because the hotel had not sufficiently pleaded grounds for removal under § 1443(1), and remanded the case to state court.While the hotel’s appeal of the remand order was pending before the United States Court of Appeals for the Second Circuit, the underlying state court action was discontinued with prejudice after the asylum seekers left and the City ended its program. The Second Circuit determined that, because the state court case was permanently terminated, there was no longer a live controversy regarding removal. The court held the appeal was moot and, following standard practice when mootness occurs through no fault of the appellant, vacated the district court’s remand order and dismissed the appeal. View "Town of Newburgh v. Newburgh EOM LLC" on Justia Law

In this case, a condominium unit was sold at a foreclosure sale in 2014 to Tyroshi Investments after the original owner defaulted on both her mortgage and condominium assessments. The condominium association conducted the sale, and Tyroshi subsequently rented out the unit. In 2015, the mortgage and deed of trust were transferred to U.S. Bank, which then initiated its own judicial foreclosure and purchased the unit at a second sale in 2016. Both Tyroshi and U.S. Bank recorded their deeds at different times, and for a period, Tyroshi’s tenants continued to occupy the unit while U.S. Bank paid taxes and assessments. In 2020, Tyroshi was denied access to the unit, leading to litigation over rightful ownership.The Superior Court of the District of Columbia held a bench trial and determined that U.S. Bank’s claims to quiet title and invalidate the 2014 foreclosure sale were timely, applying a fifteen-year statute of limitations for actions “for the recovery of lands” under D.C. Code § 12-301(a)(1). The court declared the 2014 sale invalid and found U.S. Bank to be the legal owner. Tyroshi appealed, arguing that the claims were untimely.The District of Columbia Court of Appeals reviewed the case and held that the fifteen-year limitations period applies only to possessory actions, such as ejectment or adverse possession, not to claims like wrongful foreclosure or breach of contract, which are subject to shorter limitations periods. The court found that U.S. Bank’s claims were time-barred, except for a portion of its unjust enrichment claim related to payments made within three years of the suit. The appellate court reversed the trial court’s judgment and remanded for consideration of the unjust enrichment claim. View "Tyroshi Investments, LLC v. U.S. Bank, NA, Successor Trustee to LaSalle Bank NA" on Justia Law

Elmer Miller, a general contractor and owner of a construction company, was cited by the Occupational Safety and Health Administration (OSHA) for failing to provide fall protection for workers. OSHA sent the citation by certified mail to an address (433 E. County Road, 100 North, Arcola, Illinois) that it had used for Miller in the past. The certified mail was twice refused at that address and returned. OSHA then resent the citation to the same address using UPS, which was marked as received by “Miller.” Miller later argued that the citation was not properly served because it was sent to the wrong address and that there was no proof he received it, claiming his correct address was 435 E. County Road, not 433.After Miller did not contest the citation within the statutory period, the citation became a final order. The Secretary of Labor petitioned the United States Court of Appeals for the Seventh Circuit for summary enforcement of the order. In response, Miller raised the issue of improper service, asserting that the Commission failed to prove adequate service because the citation was not sent to his correct address. The Secretary countered with public records and prior court documents showing Miller and his business had repeatedly used the 433 address for official purposes, including previous OSHA citations and court filings.The United States Court of Appeals for the Seventh Circuit held that OSHA’s service of the citation to the 433 address was reasonably calculated to provide Miller with notice, satisfying due process requirements. The court found that Miller’s history of using the 433 address and his prior acceptance of service there undermined his claim. The court granted the Secretary of Labor’s petition for summary enforcement and issued the enforcement decree pursuant to 29 U.S.C. §660(b). View "Chavez-DeRemer v. Miller" on Justia Law

The dispute arose over whether certain parcels of land owned by Vintage II, LLC and Christine Holding in Teton County, Idaho, were subject to covenants, conditions, and restrictions (CC&Rs) or other limitations associated with the adjacent Teton Saddleback Vistas Subdivision. The plaintiffs sought to quiet title, arguing their properties were not encumbered by three recorded CC&R instruments. The defendant homeowners association claimed the properties were subject to restrictions, including those set forth in a recorded Master Plan referenced in the plaintiffs’ deeds.The District Court of the Seventh Judicial District reviewed the case after a bench trial. It found that the CC&Rs did not encumber the subject properties due to deficiencies in their recording and description. However, the court concluded that the Master Plan, referenced in the plaintiffs’ deeds, did impose restrictions such as lot numbers, sizes, and open area requirements, and thus encumbered the properties. The court denied the plaintiffs’ request to quiet title, holding that the Master Plan created enforceable restrictions and a common law dedication of open space.On appeal, the Supreme Court of the State of Idaho affirmed the district court’s decision to admit the Master Plan into evidence, finding it relevant because it was referenced in the deeds and material to the quiet title action. However, the Supreme Court reversed the district court’s conclusions that the Master Plan created restrictive covenants or a common law dedication. The Court held that the Master Plan did not clearly express any binding restrictions or dedication, and thus could not encumber the properties. The amended judgment was vacated, and the case was remanded for entry of judgment in favor of the appellant, Vintage II, LLC. The Court awarded costs to Vintage as the prevailing party. View "Vintage II, LLC v. Teton Saddleback" on Justia Law

Two related Wyoming companies, one owning the surface estate and the other owning the mineral estate in an adjacent tract, sought to drill a horizontal well. The plan involved drilling from the surface owner’s land, traversing through federally owned subsurface minerals, and ending in the mineral owner’s adjacent tract. The Bureau of Land Management (BLM), which manages the federal minerals, informed the companies that they needed to obtain a permit to drill through the federal mineral estate, as the process would involve removing a small amount of federal minerals. The companies disagreed, arguing that BLM lacked authority to require a permit for a well that would not produce from the federal minerals, and filed suit seeking a declaration of their right to drill without BLM’s consent.The United States District Court for the District of Wyoming ruled in favor of BLM, holding that Congress had retained sufficient regulatory authority over the mineral estate and had delegated that authority to BLM under the Mineral Leasing Act. The court concluded that BLM could require a permit for the proposed traversing well and that the companies qualified as “operators” under BLM regulations, thus subject to the permit requirement.On appeal, the United States Court of Appeals for the Tenth Circuit reviewed the case. The Tenth Circuit determined that the dispute was fundamentally about property rights—specifically, whether the surface owner had the right to drill through the federal mineral estate without BLM’s consent. The court held that such disputes must be brought under the Quiet Title Act (QTA), which is the exclusive means for challenging the United States’ title or property interests in real property. Because the companies brought their claim under the Administrative Procedure Act and the Declaratory Judgment Act instead of the QTA, the district court lacked jurisdiction. The Tenth Circuit vacated the district court’s judgment and remanded with instructions to dismiss for lack of jurisdiction. View "True Oil v. BLM" on Justia Law

A dispute arose over the ownership of real property located at 829 Yale Street in Houston, Texas. In 2019, Nicholas Fugedi, acting as trustee for the Carb Pura Vida Trust, initiated a quiet title action against several defendants. The central issue became whether the trust, and specifically Fugedi’s appointment as trustee, was used as a device to create diversity jurisdiction in federal court, given that Fugedi was a citizen of Michigan while the underlying parties were Texas residents.Initially, the United States District Court for the Southern District of Texas ruled against Fugedi, finding the deed void under Texas law. On appeal, the United States Court of Appeals for the Fifth Circuit reversed that decision but noted that the district court could consider new evidence on remand regarding whether the trust was a sham created to manufacture diversity jurisdiction. On remand, the district court found that Fugedi had been appointed as a sham trustee solely to create diversity jurisdiction, and dismissed the case for lack of subject matter jurisdiction under 28 U.S.C. § 1359.The United States Court of Appeals for the Fifth Circuit reviewed the district court’s dismissal de novo, and its factual findings for clear error. The Fifth Circuit held that 28 U.S.C. § 1359 applies to trusts and that a trust can be used as a device to improperly manufacture diversity jurisdiction. The court found no clear error in the district court’s factual findings that Fugedi was appointed as a sham trustee for the purpose of creating federal jurisdiction. Accordingly, the Fifth Circuit affirmed the district court’s dismissal for lack of subject matter jurisdiction. View "Fugedi v. Initram" on Justia Law

A group of plaintiffs, who are successors to a 1968 lease for 2,400 acres of undeveloped coastal land in San Luis Obispo County, challenged the lessor’s assertion that their lease was limited to 51 years under California Civil Code section 717, which restricts leases of land for “agricultural purposes” to a maximum of 51 years. The property, known as Wild Cherry Canyon, had historically been used for cattle grazing, but the plaintiffs argued that the primary purpose of the lease was not agricultural, but rather estate planning, development, and, in practice, minimal cattle grazing for wildfire prevention.The Superior Court of San Luis Obispo County conducted a bench trial and issued a detailed statement of decision. The court found that the lease was for agricultural purposes, specifically to continue the property’s existing use for cattle grazing, and that this use fell within the meaning of “agricultural purposes” under section 717. As a result, the court ruled that the lease expired after 51 years, in December 2019, and entered judgment in favor of the lessor, Eureka Energy Company, quieting title in its favor and rejecting the plaintiffs’ claims for declaratory relief and to quiet title to their leasehold interest.The California Court of Appeal, Second Appellate District, Division Six, reviewed the case and reversed the trial court’s judgment. The appellate court held that while “agricultural purposes” in section 717 can include cattle grazing, the minimal grazing conducted here—primarily for wildfire suppression and not as a commercial agricultural activity—did not constitute an “agricultural purpose” within the meaning of the statute. Therefore, the 51-year lease limitation did not apply, and the plaintiffs’ lease was not subject to forfeiture on that basis. The appellate court ordered that judgment be entered in favor of the plaintiffs. View "Pacho Limited Partnership v. Eureka Energy Co." on Justia Law