Justia Real Estate & Property Law Opinion Summaries

Articles Posted in Rhode Island Supreme Court
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Plaintiffs, tenants on property owned by Baird Properties, were required to vacate the premises they leased and to remove their belongings when the property was condemned due to a lack of electricity, heating and water. Plaintiffs brought an action under the Residential Landlord and Tenants Act alleging that Baird Properties and Michael Baird purposely sabotaged utility services to the property in order to set events in motion that would force Plaintiffs to vacate the premises. After a trial, the superior court entered judgment in favor of Plaintiffs. The Supreme Court affirmed, holding (1) the trial justice correctly found that a landlord-tenant relationship existed between Plaintiffs and Baird Properties; (2) the trial justice did not err in determining that Baird tampered with essential services to the property; and (3) the award of attorney’s fees was reasonable. View "Gregoire v. Baird Props., LLC" on Justia Law

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The Rhode Island Department of Transportation (RIDOT) condemned a parcel of real property owned by Richard Deeble and his wife for highway purposes. The Deebles subsequently died. RIDOT utilized only a portion of the condemned property in furtherance of the relocation of an interstate. Plaintiff, the Estate of Richard Deeble, sought declaratory and injunctive relief against RIDOT, asserting that should RIDOT seek to sell or lease the condemned property, the Estate was entitled to a right of first refusal to repurchase or lease the land in accordance with article 6, section 19 of the Rhode Island Constitution. The superior court justice concluded that the provisions of article 6, section 19 did not pass to the Estate. The Supreme Court affirmed, holding that the rights guaranteed by article 6, section 19 terminate upon the death of the original condemnee. View "Estate of Richard J. Deeble v. Dep’t of Transp." on Justia Law

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The dispute in this receivership action centered on the receiver’s sale of commercial property owned by P.T.A. Realty, LLC to NMLM Realty, LLC. NMLM’s agent, Liberty Title & Escrow Company, failed to list all the municipal taxes owed on the property, resulting in an overpayment of funds to Bank of America, N.A. NMLM filed a petition for restitution against the Bank, which Liberty incorporated in its own petition for restitution against the Bank. The Bank argued that it was insulated from a restitution claim as a third-party creditor that received the payment in good faith and without notice of Liberty’s error. A hearing justice ruled in favor of the Bank. NMLM and Liberty filed a joint notice of appeal. The Supreme Court affirmed, holding (1) there was no evidence that, at the time the proceeds from the sale were disbursed, the Bank knew that it was receiving an overpayment of funds; and (2) therefore, the Bank received the excess funds in good faith, and NMLM and Liberty could not seek the return of their erroneous payment predicated on the theory of unjust enrichment. View "Bank of America, N.A. v. P.T.A. Realty, LLC, et al." on Justia Law

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John Izzo was the owner of certain property and his mother, Carmel Izzo, held a mortgage on the property. After the failure to pay sewer fees, the property was put up for sale at a tax sale. Defendant purchased the property and filed a petition to foreclose the Izzos’ (Plaintiffs) rights of redemption on the property (the petition). After a hearing, a final decree was entered foreclosing Plaintiffs’ rights of redemption to the property. Plaintiffs filed this complaint seeking entry of an order vacating the final decree foreclosing their rights of redemption, alleging inadequate notice of the petition. The trial justice granted Plaintiffs’ request, concluding that inadequate notice to Plaintiffs of the petition amounted to a denial of due process. An order subsequently implemented the trial justice’s bench decision and vacated the final decree foreclosing Plaintiffs’ rights of redemption. The Supreme Court vacated the order of the superior court, holding (1) the trial justice erred in finding that notice of the petition as it pertained to John was inadequate since John was estopped from raising such an argument; and (2) the notice provided to Carmel was adequate. View "Izzo v. Victor Realty" on Justia Law

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The Free & Clear Company (Free & Clear) filed suit alleging that the Narragansett Bay Commission (NBC) owed it damages. NBC admitted liability, and the case proceed to trial on the issue of damages only. The jury returned a verdict for Free & Clear in the amount of $680,277, and the trial justice added prejudgment interest in the amount of $756,169. The Supreme Court affirmed, holding that the trial justice (1) did not err in instructing the jury; (2) properly reviewed the testimony of Free & Clear’s expert witness when issuing his decision; (3) did not err in refusing to apply the doctrine of judicial estoppel to portions of the testimony of Free & Clear’s expert witness; (4) did not err in denying NBC’s motion for a remittitur; (5) correctly calculated prejudgment interest; and (6) did not err by denying NBC’s motion for partial judgment as a matter of law. Further, the jury’s award of damages was not based on impermissible speculation. View "Free & Clear Co. v. Narragansett Bay Comm’n" on Justia Law

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Plaintiff operated a Wendy’s restaurant in East Greenwich. One defendant had received permission to build a new McDonald’s restaurant with a drive-through window on property located down the street. Plaintiff sought a mandatory injunction and a writ of mandamus to prevent the construction of the drive-through facility until McDonald’s first submitted a special-use permit application for the drive-through window to the Town of East Greenwich’s Zoning Board of Review. The superior court granted Defendants’ motion for summary judgment on all counts. The Supreme Court affirmed, holding that the hearing justice correctly concluded that Defendants were entitled to judgment as a matter of law because the amended East Greenwich Zoning Ordinance permitted drive-through uses as a matter of right. View "CCF, LLC v. Pimental" on Justia Law

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Sophie Danforth entered into a purchase and sales agreement (PSA) with Timothy and Rebecca More, pursuant to which Danforth agreed to sell, and the Mores agreed to purchase, certain real estate. The PSA provided that $30,000 would be paid as a deposit at the time the PSA was executed. The Mores failed to appear at the scheduled closing. Thereafter, Danforth filed an amended complaint alleging breach of contract, requesting that she be allowed to retain the Mores’ deposit, and seeking declaratory relief, asking the court to construe the terms of the PSA and to order the escrow agent to disburse the deposit to Danforth. The hearing justice granted summary judgment in favor of Danforth, concluding that Danforth was entitled to retain the deposit. The court further denied Danforth’s motion for attorney’s fees but awarded prejudgment interest. The Supreme Court affirmed, holding that there was no error in the grant of summary judgment in favor of Danforth, the award of prejudgment interest to Danforth, and the denial of attorneys’ fees. View "Danforth v. More" on Justia Law

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In 2008, Plaintiffs filed this action seeking a declaratory judgment that the original master declaration creating Goat Island South - A Waterfront Condominium (GIS) was invalid and the second amended restated master declaration (SAR) was void ab initio. The hearing justice granted summary judgment in favor of Defendants on all claims, ruling that some claims were barred by res judicata because they could have been raised in earlier, related, litigation and that those claims were barred by the doctrine of estoppel by deed. The hearing justice also determined that the SAR was valid. The Supreme Court affirmed, holding (1) Plaintiffs’ first two claims were barred by the doctrines of res judicata and estoppel by deed; (2) the SAR is valid; (3) summary judgment in favor of the individually named GIS executive board defendants was appropriate; and (4) the hearing justice did not err in denying Plaintiffs’ motion to amend their complaint. View "IDC Props., Inc. v. Goat Island S. Condo. Ass’n" on Justia Law

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In 2011, Plaintiff purchased a condominium unit at a condominium association lien foreclosure sale. In 2013, Plaintiff filed suit seeking to quiet title to the unit in his name. Plaintiff also sought declaratory and injunctive relief to prevent a foreclosure by Defendant, the prior owner’s first mortgage holder. The superior court dismissed Plaintiff’s complaint for failure to state a claim, concluding that Plaintiff took title to the property subject to Defendant’s mortgage. The Supreme Court reversed, holding that a condominium foreclosure sale conducted pursuant to the Rhode Island Condominium Act extinguishes a prior-recorded first mortgage on the unit following the mortgagee’s failure to exercise the right of redemption provided for in R.I. Gen. Laws 34-36.1-3.21(c). Remanded. View "Twenty Eleven, LLC v. Botelho" on Justia Law

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In 2006, Ingram executed a promissory note in favor of Loancity in the amount of $212,500 to finance the purchase of property in Providence and executed a mortgage on the property. The documents identified Mortgage Electronic Registration Systems (MERS) as “a separate corporation that is acting solely as nominee for Lender and Lender’s successors and assigns.” After a series of assignments in 2009, Deutsche Bank held both the note and the mortgage to the property. Ingram failed to make the required payments. OneWest, under power of attorney for Deutsche Bank, mailed notice that a foreclosure sale on the property was scheduled for March 25, 2010. The foreclosure sale was advertised in the Providence Journal. At the scheduled sale, Deutsche Bank purchased the property for $95,066.40. Ingram sought declaratory relief and to quiet title to the property. The superior court dismissed. The Rhode Island Supreme Court affirmed, rejecting various allegations of improper procedure. View "Ingram v. Mortg. Elec. Registration Sys., Inc" on Justia Law