Justia Real Estate & Property Law Opinion Summaries

Articles Posted in Real Estate & Property Law
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In Alabama, RAM-Robertsdale Subdivision Partners, LLC contracted Construction Services LLC, d/b/a MCA Construction, Inc. ("MCA") to build infrastructure for a proposed housing subdivision. The relationship between the two parties deteriorated, leading to a lawsuit by RAM-Robertsdale against MCA for various claims including breach of contract, negligence, and negligent misrepresentation, among others. MCA counterclaimed and also filed third-party claims against Retail Specialists, LLC, a member of RAM-Robertsdale, and Rodney Barstein, a corporate officer for Retail Specialists and RAM-Robertsdale, for breach of contract, fraud, unjust enrichment, and defamation. The RAM defendants moved for summary judgment on MCA's counterclaims and third-party claims, arguing that MCA was not properly licensed when it signed the contract, thus making the contract void for public policy. The circuit court granted the RAM defendants' motion for summary judgment and certified its judgment as final.On appeal, the Supreme Court of Alabama found that the circuit court had exceeded its discretion in certifying its judgment as final under Rule 54(b), Ala. R. Civ. P., because the claims pending below and those on appeal were closely intertwined, arising from the same contract and the parties' performance under that contract. The Court noted that if the contract was indeed void for public policy, then neither party would be able to enforce it, impacting the remaining claims pending in the circuit court. As the Court found that deciding the issues at this stage would create an intolerable risk of inconsistent results, it dismissed the appeal for lack of jurisdiction. View "Construction Services, LLC v. RAM-Robertsdale Subdivision Partners, LLC" on Justia Law

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A defamation lawsuit was filed by Janet Palmtag, a real estate agent and general candidate for the Nebraska Legislature, against The Republican Party of Nebraska. The case stems from political mailers, sent by the Party, which stated that Palmtag had been disciplined by the Iowa Real Estate Commission for illegal activities and had lost her Iowa real estate license. Palmtag claims these statements are false and defamatory. The district court granted summary judgment in favor of the Party, finding a genuine issue that the statements were false but no genuine issue that the Party acted with actual malice. Palmtag appealed this decision, and the Party cross-appealed the district court’s conclusion that Palmtag did not have to plead and prove special damages.The Nebraska Supreme Court reversed the lower court's decision. The Supreme Court found that when the facts presented by Palmtag are viewed in the light most favorable to her, those facts are sufficient for a jury to find by clear and convincing evidence that the Party acted with actual malice. The court also rejected the Party's argument that in all public libel cases the plaintiff must prove special damages, finding that Palmtag's action involves defamation per se, for which no proof of actual harm is necessary. The case was remanded for further proceedings. View "Palmtag v. Republican Party of Nebraska" on Justia Law

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In Washington State, a second-tier subcontractor, Velazquez Framing LLC, was not paid for the work it did on property owned by Cascadia Homes Inc., a general contracting company. High End Construction LLC, who had been contracted by Cascadia, subcontracted the work to Velazquez without informing Cascadia. After completing the work, Velazquez filed a lien for labor and materials without giving prelien notice, which resulted in a dispute over whether prelien notice was required for labor liens under Chapter 60.04 of the Revised Code of Washington (RCW). The Supreme Court of the State of Washington ruled that, based on the plain language of the relevant statutes and legislative history, prelien notice is not required for labor liens. The court noted that while Velazquez could not lien for its materials and equipment without providing prelien notice, it could lien for its labor. The case was remanded to the trial court to determine the value of the labor performed. The court's decision reversed the rulings of the Court of Appeals and the trial court, both of which had concluded that prelien notice was required. View "Velazquez Framing, LLC v. Cascadia Homes, Inc." on Justia Law

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In 1999, Bernard Stockwell had his agriculturally zoned property in McCook County, South Dakota, replatted into five individual lots. In 2022, he sought an opinion from the McCook County Zoning Administrator on the number of building eligibilities for his lots. The Zoning Administrator determined that all five lots shared one building eligibility, based on her interpretation of the 2014 McCook County Zoning Ordinance. Stockwell appealed this decision to the McCook County Board of Adjustment (BOA), arguing each lot should have its own building eligibility. The BOA sided with the Zoning Administrator.Stockwell then petitioned the Circuit Court for a writ of certiorari and sought declaratory relief. The County sought summary judgment, which the Circuit Court granted. Stockwell appealed to the Supreme Court of South Dakota.The Supreme Court reversed the Circuit Court’s decision. The Court held that the 2014 zoning ordinance unambiguously refers to its own effective date, and the Circuit Court erred by not applying this definition, despite recognizing that Stockwell’s lots meet this definition. The Court also noted that if the County wishes to change the definition, it is up to the County’s legislative body, not the courts, to do so. View "Stockwell V. Mccook County Board Of Commissioners" on Justia Law

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In the case before the Maine Supreme Judicial Court, the dispute involved U.S. Bank, N.A. (the Bank) and Charles D. Finch. The Bank had a mortgage on Finch's property due to a loan he had taken out. When Finch defaulted on the loan, the Bank initiated foreclosure proceedings. However, the Superior Court ruled in favor of Finch, finding that the Bank's notice of default did not comply with the requirements of the Maine foreclosure statute, specifically 14 M.R.S. § 6111. Following this, Finch asked the court to rule that the Bank's mortgage was unenforceable and to order the Bank to discharge the mortgage. The court agreed with Finch, citing the Maine Supreme Judicial Court's decision in Pushard v. Bank of America.The Bank appealed this decision, arguing that the Pushard decision should be overturned, and that even if it cannot foreclose on the property, it should not be required to discharge the mortgage.The Maine Supreme Judicial Court, revisiting its decision in Pushard, determined that a lender cannot accelerate a loan balance or commence a foreclosure action without having the statutory and contractual right to do so. This effectively overruled the holding in Pushard that a lender could accelerate the note balance by filing a foreclosure action, even if they lacked the statutory right to do so.The court found that when a lender fails to prove it has issued a valid notice of default or that the borrower breached the contract, the parties are returned to the positions they held before the filing of the action. Therefore, a subsequent foreclosure action based on a different notice of default and a different allegation of default would assert a different claim and would not be barred.The court ultimately vacated the judgment requiring the Bank to discharge the mortgage and remanded the case for entry of a judgment in the Bank's favor on Finch's complaint. The judgment dismissing the Bank's unjust enrichment counterclaim was affirmed. The court concluded that while a lender must strictly comply with the statutory notice requirements in a foreclosure action, a borrower is not automatically entitled to a "free house" if the lender makes a mistake in the notice of default. View "Finch v. U.S. Bank, N.A." on Justia Law

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The Supreme Court of the State of Idaho ruled on a dispute between TCR, LLC, a developer, and Teton County. The developer had sought to record a condominium plat for a planned unit development, but the County refused to do so, arguing that the developer had not submitted final site plans, architectural designs, or landscape drawings for review. The developer filed suit, alleging breach of contract and seeking declaratory and injunctive relief to compel the County to record the condominium plat. The district court granted the developer's motion for summary judgment on its declaratory and injunctive relief claim and denied the County's motion for summary judgment on the same claim. The court also denied all motions to reconsider. The Supreme Court of Idaho affirmed the district court's decision in part, reversed in part, and remanded for further proceedings. The court held that the County's refusal to record the condominium plat violated the Idaho Condominium Property Act and that the County did not have a valid reason for its refusal. The court also found that the district court erred in granting summary judgment to the County on the developer's breach of contract claim, concluding that genuine issues of material fact remained. The case was remanded for further proceedings. View "TCR, LLC v. Teton County" on Justia Law

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The Supreme Court of the State of Idaho affirmed the lower court's judgment dismissing a negligence claim filed by GSN Capital, LLC and Dave Zortman against the Shoshone City & Rural Fire District. GSN's sawmill property was destroyed by a wildfire, and they argued that the Fire District was negligent in not calling for additional aid, not deploying fire units to protect their property, and not performing a mitigation and salvage operation to save part of their property. However, the court concluded that the Fire District did not owe GSN a duty in tort for any of the challenged decisions. The court found that the Fire District did not have custody or control over GSN's property and did not owe a duty to protect individual properties within its territory. The court also held that the Fire District did not undertake any firefighting efforts for GSN until after the fire was contained, and thus did not assume a duty to GSN. View "GSN Capital, LLC v. Shoshone City & Rural Fire District" on Justia Law

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This case is an appeal from a District Court order enforcing a Water Court decree related to water rights in Big Warm Creek, in Phillips County. Little Big Warm Ranch, LLC (LBWR) argued against the enforcement order and Wilfred Doll cross-appealed a ruling denying attorney fees. The parties have a complex history related to land sales and shared water rights with the same priority date. The water rights in question were co-equal in priority, meaning neither party could "call" on the other to decrease their water usage during times of low flow.The District Court allocated the parties' rights on a percent basis, which LBWR argued was erroneous. LBWR also contended that Doll should not be allowed to leave water instream at the Ester Headgate (a point of diversion). Doll, on the other hand, contended that he was entitled to attorney fees.The Supreme Court of Montana affirmed the District Court's decision. The Court found that the District Court correctly allocated the parties' rights on a percent basis and that it was correct in determining that Doll may leave water instream at the Ester Headgate. The Court also affirmed the District Court's refusal to award Doll attorney fees, reasoning that there was no prevailing party in the underlying dispute. View "Little Big Warm v. Doll" on Justia Law

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In this case, the Supreme Court of Arizona affirmed a lower court's decision involving a dispute over a 135 square foot piece of land between two neighboring property owners, the Becks and the Nevilles. The Becks had landscaped their property and mistakenly installed decorative pavers outside their actual property line, encroaching on the Nevilles' land. The Nevilles claimed ownership of this disputed land based on the doctrine of "boundary by acquiescence" and "adverse possession."The Court held that Arizona law recognizes a cause of action for boundary by acquiescence. To succeed in such a claim, a claimant must prove by clear and convincing evidence that: (1) they occupied or possessed the property up to a clearly defined line, (2) the adjoining landowners mutually acquiesced to that line as the dividing line between their properties, (3) they continuously acquiesced for ten years, and (4) the actual boundary was uncertain or disputed.The Court also held that occasionally parking a car partially on an adjoining landowner’s property is insufficient to establish the open and notorious element of an adverse possession claim.In this instance, the Court found that the Nevilles failed to provide sufficient evidence to satisfy the elements of either boundary by acquiescence or adverse possession. Consequently, the Court affirmed the trial court's decision that the Becks were the rightful owners of the disputed land. View "BECK v NEVILLE" on Justia Law

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The case revolves around injury suffered by a swimmer, Dr. Jennifer Pennington, who collided with the corner of a swimming-pool wall at a health and fitness center owned and operated by Memorial Hospital of South Bend, doing business as Beacon Health and Fitness. The design and construction of the swimming pool was carried out by Spear Corporation and Panzica Building Corporation. The Penningtons filed a suit against Beacon, Spear, and Panzica, alleging negligent design, failure to warn, negligent maintenance and operation, negligent construction, and deprivation of companionship due to the injury. The trial court granted summary judgment to Panzica and Spear on all counts and to Beacon on some counts, but denied summary judgment to Beacon on the count of negligent maintenance and operation and failure to provide adequate warnings and instructions. The Indiana Supreme Court held that Beacon was not entitled to summary judgment on any count, except as to the single issue of the level of the water within Count III. The court affirmed summary judgment for Spear and Panzica, stating that the Penningtons failed to provide admissible evidence regarding Spear or Panzica's breach of their professional duty of care. However, the court found that there were issues of fact regarding Beacon's role in the pool’s design and its maintenance and operation that required a trial. View "Pennington v. Memorial Hospital of South Bend, Inc." on Justia Law