Justia Real Estate & Property Law Opinion Summaries

Cody Durham filed suit against Jacob Cooper, alleging breach of a purchase agreement between them involving the sale of Cooper's residence. In August 2020, Durham saw a listing on the Facebook Marketplace social-media website advertising for sale Cooper's house and the two acres of real property on which the house was situated. Over text messages between Durham and Cooper, they agreed to a purchase price and closing date, with Cooper paying the closing costs. Durham testified that he did not engage any realtor or lawyer to help him with drafting the purchase agreement. Instead, he just Google-searched for "residential purchase agreement" and used the first fillable form generated by that search. One of the conditions of Durham's FHA loan was that the loan would not be approved unless the subject property's appraised value was confirmed by a certified appraiser. A certified appraiser appraised the property's value, but that value was subject to the condition that a storage shed in Cooper's backyard needed to be fixed or torn down. Cooper told Durham he "don't have the money" to fix or tear down the storage shed, so it would be up to Durham to take care of it. Cooper then sent Durham a text stating he was backing out of the deal because the closing date had passed, and the issue of the shed had not been resolved. Durham sought specific performance of the purchase agreement. Following a bench trial, the trial court awarded Durham $79,000 in damages. Cooper appealed. The Alabama Supreme Court concluded the trial court misapplied the law to the facts by measuring Durham's damages based on the difference between the contract price and the subject property's assessed market value in a new appraisal because the proper legal standard for measuring damages for the breach of a contract involving the sale of real property was the difference between the contract price and the subject property's market value at the time of the breach. The judgment was reversed and the case remanded for a recalculation of damages. View "Cooper v. Durham" on Justia Law

In appeal no. SC-2023-0198, Louie Smith, Emily Smith, and Joshua Smith appealed a circuit court judgment declaring that Katherine Stowe had a prescriptive easement over the Smiths' property to allow her to access her property for agricultural and recreational purposes. In appeal no. SC-2023-0200, the Smiths appealed a judgment granting Stowe a right-of-way over both their property and a railroad crossing owned by Norfolk Southern Railway Company ("Norfolk"). Finding no reversible error in either case, the Alabama Supreme Court affirmed the circuit court's judgments. View "Smith v. Stowe" on Justia Law

These consolidated appellate proceedings consisted of an appeal filed by Regina Daily ("Regina") and The Daily Catch, Inc., d/b/a Gulf Shores Seafood ("The Daily Catch") (case number SC-2022-0672); a cross-appeal by Greg Esser ("Greg") (case number SC-2022-0673); and a petition for a writ of mandamus filed by Patrick Daily ("Patrick"), Regina, The Daily Catch, White Sands, Inc., d/b/a Remax of Orange Beach ("White Sands"), and Blue Palms, LLC (case number SC-2022-0992). The appeal, the cross-appeal, and the mandamus petition all involved the same underlying action filed by Greg -- in his individual capacity, in his capacity as the trustee of the Wallene R. Esser Living Trust ("the trust"), and in his capacity as an administrator ad litem of the estate of Wallene R. Esser ("the estate") -- against Patrick, Regina, The Daily Catch, White Sands, and Blue Palms. Following a bench trial, the circuit court entered a judgment awarding damages in favor of Greg and against Regina and The Daily Catch; the circuit court denied Greg's claims as to all the other defendants. Regina and The Daily Catch filed their appeal, and Greg filed his cross-appeal. Later, Patrick, Regina, The Daily Catch, White Sands, and Blue Palms petitioned for mandamus relief. Greg and Regina were Wallene's children and were beneficiaries to Wallene's estate. Generally, Greg alleged that "[t]he trust has been harmed and depleted by the acts and omissions of the defendants." Greg asserted claims of breach of fiduciary duty and unjust enrichment, requesting money damages and declaratory relief. After review, the Alabama Supreme Court affirmed the circuit court's judgment in case numbers SC-2022-0672 and SC-2022-0673, and granted the mandamus petition filed in case number SC-2022-0992. View "Daily, et al. v. Esser" on Justia Law

Plaintiff-counterclaim defendant Janice Morrison appealed a circuit court's judgment entered in favor of defendants-counterclaim plaintiffs Torry May, Sr., and Angela May. This case involved two parcels of property in Mobile, Lots 24 and 25. In 2008, the Morrison's parents, the Reddicks, executed a mortgage on Lot 25 in favor of GMAC Mortgage, LLC, f/k/a GMAC Mortgage Corporation ("GMAC"). Yolanda Reddick died in 2009. Shortly after Yolanda's death, Joseph Reddick moved out of state and died shortly later. Lot 24 was sold at a tax sale; GMAC foreclosed on Lot 25, and Fannie Mae purchased Lot 25 at the foreclosure sale in 2012. In early 2013, the Mays purchased Lot 25 from Fannie Mae, and Morrison purchased Lot 24 from the State. The Mays testified they waited until the redemption period ended before they started making improvements to the house. Torry testified he had not expanded the part of the house that sat on Lot 24. Morrison testified that, at the time she purchased Lot 24, she did not know that parts of the house, the driveway, and the storage shed were located on Lot 24 and that she did not discover that information until sometime later. At some point in 2018, Morrison walked up the driveway on Lot 24, and Torry told her to get off his property. She told Torry that it was not his property, the police were called, ultimately leading to this litigation. In its judgment, the trial court found that the Mays were entitled to redeem Lot 24 pursuant to § 40-10-82 because they were in possession of that property Morrison had not adversely possessed Lot 24 for a period of three years. The Alabama Supreme Court found the undisputed evidence established the Mays had never been owners of Lot 24 and never ever held title that property. Thus, the exception in § 40-10-82 did not apply. Because the Mays filed their counterclaim to redeem Lot 24 after the expiration of the time to redeem, the trial court erred when entered its August 11, 2022 judgment determining that the Mays had properly exercised the right to redeem Lot 24, and when it subsequently entered its November 3, 2022, order quieting title to Lot 24 in favor of the Mays. View "Morrison v. May" on Justia Law

This appeal involved a boundary-line dispute between neighbors: Kathleen LaFlore sued her neighbors, Robert and Katherine Huggins, seeking to have the court establish the true boundary line between her property and the Hugginses' property. LaFlore alleged she had acquired legal title to the disputed property -- which consisted of a ravine ("the gully") and an adjoining strip of land -- through adverse possession. The trial court rejected LaFlore's claim and declared the true boundary to be the western survey line that existed when her family originally purchased their home in 1962. LaFlore filed a timely postjudgment motion, which the trial court denied. LaFlore appealed. Finding no reversible error, the Alabama Supreme Court affirmed. View "LaFlore v. Huggins" on Justia Law

Dolgencorp, LLC, appealed a judgment entered on a jury verdict in favor of Deborah Gilliam. In March 2016, Daisy Pearl White Freeman was operating her vehicle in the parking lot of the Northwood Shopping Center. Freeman lost control of the vehicle, ran over a six-inch curb, crossed a sidewalk, and crashed through the storefront of a Dollar General store, striking Gilliam -- a customer of the store. Gilliam sustained serious and permanent injuries. According to an Alabama Uniform Traffic Crash Report, Freeman reported that, immediately before the accident, she had been traveling across the shopping center parking lot when the vehicle's steering wheel began to shake, the vehicle jerked to the left, and the vehicle's brakes failed. The traffic report also indicated that witnesses had observed Freeman's vehicle traveling across the parking lot at a "high rate of speed." The traffic report listed the speed limit in the parking lot at 15 miles per hour; it was estimated that Freeman's vehicle had been traveling approximately 33-34 miles per hour when it collided with the storefront. Gilliam filed suit against, among others, Dolgencorp, which owned the Dollar General store, alleging that Dolgencorp had been negligent and wanton in failing to erect barriers such as bollards outside the store's entrance, which, she claimed, could have prevented Freeman's vehicle from crashing into the storefront and injuring her. Dolgencorp moved for a summary judgment, arguing, among other things, that Gilliam's claims were precluded as a matter of law. The Alabama Supreme Court concurred with the company, finding Gilliam's negligence claim failed as a matter of law. It therefore reversed the trial court's judgment and rendered judgment in favor of Dolgencorp. View "Dolgencorp, LLC v. Gilliam" on Justia Law

Plaintiff Steven Dixon appealed the grant of summary judgment in favor of defendants the City of Auburn ("the City"); Ron Anders, in his official capacity as the mayor of the City; and Beth Witten, in her official capacity as an Auburn City Council member who served as mayor pro tempore of the City. The underlying action arose from a dispute between Dixon and defendants over Ordinance No. 3288, which amended the City's zoning ordinance to expressly regulate short-term rentals of residential property within the City's geographical limits. Dixon claimed that the adoption and enforcement of the short-term-rental ordinance violated his right to due process and also violated his right to equal protection as guaranteed by the Alabama Constitution. Finding that the trial court properly entered summary judgment in defendants' favor, the Alabama Supreme Court affirmed. View "Dixon v. City of Auburn, et al." on Justia Law

Andrew William Spraggins's driveway crossed a neighboring tract of land owned by Ammons Properties, LLC ("Ammons"). After a dispute arose between Spraggins and Ammons, Spraggins filed a complaint asking a circuit court to enter a judgment declaring that he had an easement for the portion of his driveway that crossed Ammons's property. Ammons filed a counterclaim alleging that Spraggins was liable for several tortious acts. Following a bench trial, the circuit court ruled that Spraggins had an easement across Ammons's property and denied Ammons's counterclaims. Ammons appealed. Finding no reversible error, the Alabama Supreme Court affirmed the trial court's judgment. View "Ammons Properties, LLC v. Spraggins" on Justia Law

The property at issue in this appeal served as a rental home located in a residential neighborhood. The property owner, J.C. King III, stopped paying property taxes in 2015 after a fire extensively damaged the property and rendered it uninhabitable. The State of Alabama purchased the property at a 2016 tax sale, and in 2019 the property was ultimately sold in its uninhabitable state to Anderson Realty Group, LLC ("ARG"). ARG spent $88,812 to extensively renovate and restore the property to a habitable condition, and in 2020 it filed a complaint seeking to quiet title to the property. King filed a counterclaim to redeem the property and disputed whether the extensive renovations to the property could be considered "preservation improvements" due to be included in the redemption amount pursuant to § 40-10-122, Ala. Code 1975. The trial court agreed with King, holding that "preservation improvements" included only those amounts expended by ARG to keep the property from further deterioration, the value of which it concluded was $10,000, and it entered a judgment setting the redemption amount accordingly. ARG appealed, and the Court of Civil Appeals reversed that judgment, holding that the trial court had erred in limiting the "preservation improvements" to the cost of repairs undertaken to keep the property in the same condition it was in at the time of the tax sale. The Alabama Supreme Court granted King's petition for a writ of certiorari to consider, as a matter of first impression, the meaning of the phrase "preservation improvements" as defined in § 40-10-122(d). The Supreme Court agreed that the trial court erred in limiting ARG to the recovery of the cost of repairs to keep the property in the same condition it was in at the time of the tax sale. Accordingly, its judgment was affirmed. View "Ex parte J.C. King III" on Justia Law

MUSA Properties, LLC ("MUSA"), and R.K. Allen Oil Co., Inc. ("Allen Oil"), entered into a real-estate sales contract in which MUSA agreed to purchase from Allen Oil a gasoline service station and convenience store ("the property"). The terms of the sales contract were not fulfilled, and the property was not transferred to MUSA. Allen Oil filed a lawsuit against MUSA, alleging various causes of action based on the sales contract; MUSA filed various counterclaims in response. MUSA also filed in probate court a notice of lis pendens describing the property. In an interlocutory order, the circuit court later determined that MUSA did not have a right to or interest in the property, and, upon the motion of Allen Oil, the circuit court entered an order expunging the lis pendens notice. MUSA then petitioned the Alabama Supreme Court for mandamus relief, to direct the circuit court to vacate its order expunging the lis pendens notice. Finding that Allen Oil's argument did not provide a convincing basis for the Supreme Court to suspend application of the doctrine of lis pendens and deny MUSA's mandamus petition, the Court granted the petition and issued the writ directing the circuit court to vacate its order expunging the lis pendens notice. View "Ex parte MUSA Properties, LLC" on Justia Law