Justia Real Estate & Property Law Opinion Summaries

Aliant Bank appealed the entry of an injunction against it by the Shelby Circuit Court enjoining it from interfering with a contract for the sale of real property between Kimberly and Kerry Carter, on the one hand, and Gregory and Robyn Nunley, on the other. The Carters owned, as joint tenants, a piece of real property located in Shelby County. The Carters used the property to secure a mortgage from Mortgage Electronic Registration Systems, Inc. ("MERS"). In addition to the MERS mortgage, three creditors secured judgments against Kerry Carter against the property. Aliant was fourth to secure its judgment lien against Kerry Carter. On August 21, 2014, the Carters entered into a contract with the Nunleys for the sale of the property. At the time the Carters entered into the contract, the judgment liens against the property had not been satisfied. The preliminary settlement statement for the sale of the property indicated that a portion of the sale proceeds would be used to pay off the outstanding mortgage held by MERS on the property. The first judgment creditor thereafter agreed to release its judgment lien on the property in exchange for a smaller portion of the sale proceeds. The record did not indicate that the second or third judgment creditor agreed to release its judgment lien against the property. However, the record was clear that Aliant refused to release its judgment lien against the property. Apparently, Aliant's refusal to execute a release of its judgment lien inhibited the closing of the contract. On September 14, 2014, the Carters sued Aliant, alleging that Aliant had intentionally and maliciously refused to execute a partial release of the property "in order to prohibit [Kerry] Carter from being able to fulfill his obligations under the purchase contract even though all profits due Kerry Carter are being disgorged and paid to the appropriate judgment creditor, [the first judgment creditor]." The trial court granted an injunction against Aliant. Subsequently, Aliant petitioned the Alabama Supreme Court for a writ of mandamus directing the circuit court to vacate its injunction order. The Supreme Court treated Aliant's petition for a writ of mandamus as a timely notice of appeal. After the Supreme Court recharacterized Aliant's petition, Aliant filed its appellant's brief. Instead of filing an appellee's brief, the Carters moved to dismiss Aliant's petition as moot, alleging that the property had been foreclosed upon by MERS. The Carters did not present the Supreme Court with any evidence indicating that MERS had, in fact, foreclosed upon the property. Aliant opposed the motion to dismiss. After review, the Supreme Court agreed with the Carters that the injunctive relief they requested was no longer attainable and that, consequently, the case was no longer justiciable. Accordingly, the Supreme Court dismissed Aliant's appeal. View "Aliant Bank v. Carter" on Justia Law

U.S. Bank National Association ("USB"), successor in interest to Bank of America, N.A., which was the successor by merger to LaSalle Bank, National Association, as trustee for Structured Asset Investment Loan Trust, Mortgage Pass-Through Certificates, Series 2004-4 ("the Trust"), and Bank of America, N.A. ("BOA"), separately appealed a $3.9 million judgment entered against them on trespass and wantonness claims asserted by Chester and Emily Shepherd. USB also appealed the trial court's judgment in favor of the Shepherds on its claims related to an alleged error in a mortgage executed by the Shepherds upon which the Trust had foreclosed. The Alabama Supreme Court reversed. "'Every single one of these cases . . . rejects the availability of negligence and wantonness claims under Alabama law under comparable circumstances to those identified by the [plaintiffs]. Every one of these cases undercuts the legal viability of [the plaintiffs' negligence and wantonness claims], and rejects the very arguments articulated by the [plaintiffs] in opposing dismissal of those causes of action. ... the mortgage servicing obligations at issue here are a creature of contract, not of tort, and stem from the underlying mortgage and promissory note executed by the parties, rather than a duty of reasonable care generally owed to the public. To the extent that the [plaintiffs] seek to hold defendants liable on theories of negligent or wanton servicing of their mortgage, [those negligence and wantonness claims] fail to state claims upon which relief can be granted.'" View "U.S. Bank National Ass'n v. Shepherd" on Justia Law

This case first went before the Alabama Supreme Court in "Ex parte Riverfront, LLC," (129 So. 3d 1008 (Ala. 2013)("Riverfront I")). In Riverfront I, Riverfront and Fish Market Restaurants, Inc. had entered into a lease for real property located in Gadsden. The lease contained a forum-selection clause naming Tuscaloosa County as the venue in which any litigation concerning the lease was to be brought. In determining that the forum-selection clause was enforceable, the Supreme Court held that Tuscaloosa County was not a "seriously inconvenient" forum. The Etowah Circuit Court transferred the action to the Tuscaloosa Circuit Court. Shortly thereafter, Fish Market filed a motion to transfer the action, then pending in the Tuscaloosa Circuit Court, back to the Etowah Circuit Court, citing section 6-3-21.1, Ala. Code 1975, that Tuscaloosa County "would be a seriously inconvenient forum." Riverfront responded, arguing that "[t]he issue stated in [Fish Market's] Motion to Transfer has previously been litigated between the parties, and adjudicated in [Riverfront's] favor by the Alabama Supreme Court." The Tuscaloosa Circuit Court held a hearing on Fish Market's motion and granted it. Riverfront then petitioned the Supreme Court for a writ of mandamus to direct the Tuscaloosa Circuit Court to vacate its order transferring the case back to the Etowah Circuit Court. The Supreme Court found, after review, that Fish Market could have challenged Tuscaloosa County as a "seriously inconvenient" forum in the Etowah Circuit Court and before the Supreme Court in Riverfront I. "Fish Market did not do so and may not now have a second bite at the forum apple and relitigate that issue. The matter has been decided." The Supreme Court granted Riverfront's petition and issued the writ. View "Ex parte Riverfront, LLC." on Justia Law

Riverstone Development Co., Inc. sued Garrett & Associates Appraisals, Inc. ("G&A Appraisals"), asserting negligence, wantonness, and conspiracy claims stemming from a July 2010 appraisal G&A Appraisals conducted on waterfront property Riverstone Development owned on Lake Guntersville. During the course of the eventual trial on those claims, the trial court entered a judgment as a matter of law in favor of G&A Appraisals on the negligence claim, and, at the conclusion of the trial, the jury returned a verdict in favor of G&A Appraisals on the wantonness and conspiracy claims. Riverstone Development appealed, arguing that the judgment as a matter of law was improperly entered on the negligence claim and that it is entitled to a new trial based on juror misconduct. Finding no reversible error, the Supreme Court affirmed. View "Riverstone Development Co., Inc. v. Garrett & Associates Appraisals, Inc." on Justia Law