Justia Real Estate & Property Law Opinion Summaries

Patricia Devine sued to invalidate a foreclosure sale that divested her interest in a property located in Elberta, Alabama. The trial court explained that the foreclosure was lawful and that Devine's lawsuit was, in any event, barred by the statute of limitations and precluded by the doctrine of res judicata. Devine insisted on appeal that the foreclosure was illegal and therefore void, but the Alabama Supreme Court found she failed to address the trial court's application of the statute of limitations and the doctrine of res judicata. The trial court was therefore affirmed. View "Devine v. Bank of New York Mellon Company" on Justia Law

CityR Eagle Landing, LLC ("CityR"), and Foresite Realty Management, LLC ("Foresite"), petitioned the Alabama Supreme Court for a writ of mandamus to direct the Montgomery Circuit Court to vacate its order appointing Kia Scott as guardian ad litem for certain minor parties to the underlying action against CityR and Foresite. In 2016, residents of Eagle Landing Apartments, an apartment complex owned by CityR and managed by Foresite, sued CityR and Foresite, among others. They asserted claims of breach of contract, breach of implied warranty, negligence, wantonness, premises liability, negligent hiring, trespass, and nuisance, all arising out of conditions at the apartment complex. The residents were adults living in the apartments with their minor children, who were represented in the action by their parents. All the residents were represented by legal counsel. The Supreme Court determined the trial court exceeded its discretion in appointing a guardian ad litem to represent the minor residents when there was no conflict of interest between the minor residents and their parents. "At this point in the proceedings . . . the parents' interests are aligned with those of their children. . . . [W]ith nothing before us to reflect a conflict of interest between any parent and child involved as parties in the litigation, and no proposed settlement agreement currently before the trial court for review, there is no need for a guardian ad litem for the remaining minors at this stage of the proceedings." Accordingly, the Supreme Court granted the petition and issued the writ, directing the trial court to rescind its order of April 4, 2019, appointing the guardian ad litem to represent the remaining minor residents. View "Ex parte CityR Eagle Landing, LLC" on Justia Law

S. Mark Booth petitioned the Alabama Supreme Court for a writ of mandamus directing the the trial court to dismiss an action filed against him by the City of Guin. In 2008, Booth and the City entered into a contract entitled "Commercial Development Agreement." The agreement provided that the City would sell Booth approximately 40 acres of real property located in Marion County at a price of $5,000 per acre. Booth, in turn, promised to subdivide the property into lots for commercial development. The agreement included a provision granting the City the right to repurchase the property should Booth fail to develop the land within three years following the execution of the agreement. In 2017, the City sued Booth, asserting a claim for specific performance pursuant to the agreement's repurchase option. The City alleged Booth failed to construct at least one commercial facility on the property within three years from the effective date of the agreement. The City alleged that it had "timely tendered the purchase price to [Booth] and requested a conveyance of the real property described in the contract but [that Booth] refused to accept the tender or to make the conveyance." Booth moved to dismiss, arguing that, although he had fulfilled his obligations under the agreement by developing a hotel on the property, the City's complaint seeking to specifically enforce the repurchase of the property pursuant to its option to repurchase in Section 4.4(b) of the agreement was time-barred by the two-year statutory limitations period for such options in 35-4-76(a), Ala. Code 1975. After review, the Supreme Court granted Booth's petition as to the City's claims for specific performance, and its claims alleging fraud and breach of contact; the trial court was ordered to dismiss those claims. The Court denied Booth's petition relating to the City's rescission claim. View "Ex parte S. Mark Booth." on Justia Law

In case no. 1170709, Jere Austill III appealed a circuit court judgment permitting Tyler Montana Jul Prescott to redeem certain real property under sections 40-10-82 and 40-10-83, Ala. Code 1975. Specifically, Austill argued that, through adverse possession, he had "cut off" Prescott's right to redeem the property. Because the Alabama Supreme Court concluded that, by virtue of an adverse judgment in an earlier quiet-title action, Austill was precluded by the doctrine of res judicata from claiming an interest in the property through the extinguishment of Prescott's right of redemption. Therefore, the Supreme Court affirmed that portion of the trial court's judgment that challenged in Austill's appeal. In case no. 1170730, Prescott cross-appealed the trial court's denial of his motion for an award of attorney fees under the Alabama Litigation Accountability Act ("the ALAA"). In support thereof, Prescott argued Austill asserted his argument that he cut off Prescott's right of judicial redemption without substantial justification. The Supreme Court concluded the trial court did not exceed its discretion in denying Prescott's motion, and affirmed that portion of the trial court's judgment. View "Austill III v. Prescott" on Justia Law

Deutsche Bank National Trust Company ("Deutsche Bank"); MERSCORP, Inc., and Mortgage Electronic Registration Systems, Inc. (collectively, "MERS"); and CIS Financial Services, Inc. ("CIS"), petitioned the Alabama Supreme Court for permission, pursuant to Rule 5, Ala. R. App. P., to appeal the trial court's denial of their motions seeking to dismiss the claims of the plaintiffs-- Walker County and Rick Allison, in his official capacity as judge of probate of Walker County (collectively, "plaintiffs")--seeking class-based relief on behalf of themselves and all other similarly situated Alabama counties and judges of probate. At issue was a particular aspect of the mortgage-securitization process. Deutsche Bank served as trustee for numerous residential mortgage-backed security ("RMBS") trusts containing mortgages for properties located in Walker County and other Alabama counties. In this case, plaintiffs initiated the underlying litigation against Deutsche Bank "seeking to recover the benefit [Deutsche Bank allegedly] received by relying on the real property recording systems of the Counties without compensating the Counties for that benefit." Plaintiffs alleged that Alabama law requires mortgage assignments to be recorded; therefore, they maintained, the MERS system used by Deutsche Bank avoided the proper recording of mortgage assignments, along with the payment of the requisite filing fees, and has resulted in lost income to county governments. The Alabama Supreme Court reversed the trial court and remanded: “We see no intent in the Code section to embrace a mandatory rule that all conveyances, which would include not only real-property conveyances but also apparently all conveyances of personal property, are required to be recorded in the probate court. Instead, 35-4-50 simply states that the probate court is where conveyances that are required by law to be filed must be filed. Section 35-4-51, in turn, is the Code section that provides for the recording of conveyances generally, and it places a duty on only the probate court to accept those filings. The arguments before us demonstrate no legal duty to record mortgage assignments.” View "Deutsche Bank National Trust Company, as trustee of any specific residential mortgage-backed security" on Justia Law

Plaintiffs David and Lisa McDaniel petitioned the Alabama Supreme Court for a writ of mandamus to direct the Shelby Circuit Court to vacate its order staying the proceedings against defendants Southern Craftsman Custom Homes, Inc. ("SCCH"); Jeffrey Rusert; Larry Curry, Sr.; SouthFirst Bancshares, Inc., d/b/a SouthFirst Bank ("SouthFirst"); Mari Gunnels; and Danny Keeney. At the time of this opinion, Rusert was awaiting the outcome of a federal criminal investigation against him. In 2017, the McDaniels contacted Rusert for the purpose of entering into an agreement with SCCH to build a house. According to the McDaniels, Rusert represented himself as the president of SCCH. At some point, Rusert recommended that the McDaniels speak with Gunnels, who worked for SouthFirst, to secure a loan to pay for the construction of the new house. In November 2017, with Gunnels's assistance, the McDaniels began the process of applying for a construction loan with SouthFirst. The loan closing occurred on January 26, 2018. The McDaniels executed, among other agreements, a written construction-loan agreement, a promissory note, and a construction-loan disbursement agreement. The McDaniels met with Rusert to discuss some concerns they had with the ongoing construction. During that meeting, Rusert provided the McDaniels with a credit application from a local building-supply company and asked them to execute it so that, he said, he could use the McDaniels' credit to purchase building materials and supplies. The McDaniels learned that the company refused to do business with SCCH, Rusert, and Curry because all three had purportedly failed to pay significant amounts owed the company. The McDaniels immediately contacted Gunnels and placed a "stop-payment" order on the most recent draw request from SCCH and Rusert. Thereafter, the McDaniels sued SCCH, Rusert, Curry, SouthFirst, Gunnels, and Keeney. In their complaint, the McDaniels sought damages for negligence, suppression, fraudulent misrepresentation, civil conspiracy, conversion, and the infliction of emotional distress. The McDaniels further alleged breach-of-contract claims against SouthFirst, SCCH, Rusert, and Curry, as well as a claim of breach of fiduciary duties against SouthFirst. Finally, the McDaniels sought a judgment against SouthFirst, Gunnels, and Keeney declaring the loan agreement and mortgage void. Rusert and SCCH moved to stay the civil proceedings against them pending the outcome of a federal criminal investigation against Rusert, which the trial court granted. The Alabama Supreme Court determined, however, the McDaniels established a clear legal right to relief from the trial court's order. Accordingly, the Supreme Court granted the petition for a writ of mandamus and directed the trial court to vacate its order staying the underlying case. View "Ex parte David and Lisa McDaniel." on Justia Law

Plaintiffs A.A. Nettles, Sr. Properties Limited, and Eula Lambert Boyles sought to quiet title a right-of-way that had been conveyed by the Alabama Railroad Company to the Monroe County Commission for use as a recreational trail in accordance with the National Trails System Act ("the Trails Act"), 16 U.S.C. 1247. The trial court quieted title in favor of plaintiffs. The Commission appealed, contending the evidence submitted was insufficient for the trial court to determine the railroad intended to abandon its interest in the right-of-way. The Alabama Supreme Court concluded the trial court did not err in concluding the easement reserved to the railroad by a right-of-way was provided in a quitclaim deed lapsed by nonuse, and was thus extinguished by operation of law, leaving nothing for the railroad to convey to the Commission. View "Monroe County Commission v. Nettles, et al." on Justia Law

Ralph Eustace, Linda Eustace, and Daryl Eustace sued James Ray ("Ray") Wilbourn and his wife Karen, alleging a trespass to land and conversion of timber. The Wilbourns filed a counterclaim, seeking to establish title to the subject land and to recover in tort for intentional interference with a contractual relationship. The trial court entered a judgment in favor of the Eustaces on the trespass and conversion-of-timber claims and determined that the Eustaces were entitled to recover compensatory damages on those claims. The trial court also entered a judgment in favor of the Wilbourns on the claim asserting an intentional interference with a contractual relationship and determined that the Wilbourns were entitled to an award of compensatory damages on that claim. The Court of Civil Appeals affirmed the judgment of the trial court, without an opinion. The Alabama Supreme Court determined the Court of Civil Appeals lacked jurisdiction over the case because the appeal was taken from a nonfinal judgment. Therefore, the appellate court's judgment was reversed and the matter remanded with instructions to dismiss the appeal. View "Ex parte Ralph Eustace et al." on Justia Law

This case contested the validity of a property deed that was executed by Gayron Brooks in the weeks before her death from lung cancer. The deed conveyed her house in Boaz to her husband of 18 years, David. Following Gayron's death, her adult children, Teresa Elizabeth Mitchell and Steve E. Allen, as personal representatives of Gayron's estate, sued David alleging, among other things, that David held a dominant position over Gayron and that he had unduly influenced her to sign the deed. After a four-day nonjury trial, the trial court entered a judgment in favor of David. This appeal followed. Finding no reversible error in the circuit court's judgment, the Alabama Supreme Court affirmed. View "Mitchell v. Brooks" on Justia Law

Plaintiff Tim Seriana sought mandamus relief to order the circuit court reverse its grant of a motion for change of venue filed by Joe Stevens, LLC. In 2015, Seriana and his wife, Karen, sued Joe Todd Stevens (and his LLC) and various fictitiously named defendants, alleging Stevens was a contractor who did business in northeast Alabama who negligently failed to barricade, cordon off, or otherwise warn pedestrians of a big ditch then excavated by Stephens. Seriana fell into the ditch, and sustained an injury. In his petition, Seriana argued the trial court erroneously transferred this case to Talladega County because, he contended, Stevens waived any objection it might have had to venue in Calhoun County when it answered the amended complaint without raising the defense of improper venue. The Alabama Supreme Court agreed, granted the writ of mandamus, and directed the trial court to vacate its motion for change of venue and transfer this case to Talladega County. View "Ex parte Tim Seriana." on Justia Law