Justia Real Estate & Property Law Opinion Summaries

Articles Posted in US Court of Appeals for the Eleventh Circuit
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Plaintiff sued Select Portfolio Servicing ("Portfolio"), a mortgage servicer, under the Fair Debt Collections Practices Act ("FDCPA") and the Florida Consumer Collection Practices Act ("FCCPA"). Plaintiff claimed that several mortgage statements sent by Portfolio misstated a number of items, including the principal due, and that by sending these incorrect statements, Portfolio violated the FDCPA and FCCPA. The district court dismissed Plaintiff's complaint, finding the mortgage statements were not "communications" under either statute.The Eleventh Circuit reversed, holding that monthly mortgage statements may constitute "communications" under the FDCPA and FCCPA if they "contain debt-collection language that is not required by the TILA or its regulations" and the context suggests that the statements are an attempt to collect or induce payment on a debt. View "Constance Daniels v. Select Portfolio Servicing, Inc." on Justia Law

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Plaintiffs are property owners in Forsyth County who used to rent their homes on a short-term basis. Forsyth County recently amended its Unified Development Code (“UDC”) to prohibit certain property owners from renting their homes on a short-term basis. The amendment includes a grandfathering provision under which a property owner who was engaged in previously lawful activity that is now prohibited may continue to engage in that use. Plaintiffs sought the ability to continue renting their homes on a short-term basis under the amended UDC. The dispute involves determining which of the terms, “owner occupancy,” “rental,” and/or “lease” the phrase “on a weekly, monthly or longer basis” modifies. The court determined that neither the last-antecedent rule nor the series-qualifier canon rule would shed light on the UDC’s meaning. Therefore, the court found that it must discern and apply the ordinary meaning of the terms at issue. Applying ordinary meanings, the court concluded that the prior version of the UDC prohibited short-term rentals.Further, the court disagreed with Plaintiffs’ argument that “[b]ecause the prohibition on ‘rentals’ of less than a week was not explicit in the ordinances, the former UDC[‘s short-term rental ban] was void for vagueness.” The court reasoned that “when the plain text of the statute sets forth clearly perceived boundaries, our inquiry is ended.” Here, the court found that the plain text of the ordinance prohibited short-term rentals, thereby ending the court’s vagueness inquiry. Thus, short-term rentals remain prohibited. View "Kenneth R. Heyman, et al v. Molly Cooper, et al" on Justia Law

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Debtor executed a security deed for a piece of property. She acknowledged the deed to her closing attorney who certified the acknowledgment on the deed’s final page.Under Georgia law, a deed must be attested by two witnesses, and at least one of them needs to be an official such as a notary or court clerk. Here, the deed was invalid because the attorney was a notary, but he failed to attest to the deed. The error was discovered a few years later when the debtor filed for Chapter 7 bankruptcy. Under federal law, a bankruptcy trustee may void a deed if it is voidable by a bona fide purchaser. The managing trustee noticed the problem and sued the loan companies to keep the property in the bankruptcy estate. The loan companies argue that they have produced what the statute requires to save a problematic deed: an affidavit from a “subscribing witness.” Here, the court reasoned that a person becomes a subscribing witness only when she attests a deed, and the closing attorney did not do so. Therefore, the loan companies’ interest in the real property is voidable. View "Pingora Loan Servicing, LLC, et al. v. Cathy L. Scarver" on Justia Law

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In 1981, a Georgia federal district court concluded that Atlanta’s zoning regulations for adult businesses were constitutionally overbroad in their entirety and permanently enjoined their enforcement. Atlanta did not appeal. Cheshire operates an Atlanta adult novelty and video store, Tokyo Valentino, and sued, asserting that the definitions of “adult bookstore,” “adult motion picture theater,” “adult mini motion picture theater,” “adult cabaret,” and “adult entertainment establishment” in the current Atlanta City Code are facially overbroad in violation of the First Amendment.On remand, the district court granted Atlanta summary judgment. The Eleventh Circuit affirmed. The district court did not err in providing a narrowing construction of certain terms (the term “patron” in the definitions of “adult motion picture theater” and “adult mini-motion picture theater”) in the challenged provisions. The phrase “intended, designed, or arranged” suggests that the challenged provisions do not apply to isolated or intermittent uses of the property. Cheshire failed to show that any overbreadth in the provisions is “substantial” as required by Supreme Court precedent. The challenged provisions do not purport to ban the activities or conduct they define or describe but are part of a zoning scheme regulating where covered establishments can locate or operate. View "Cheshire Bridge Holdings, LLC, v. City of Atlanta," on Justia Law

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Property owners filed suit after the Town of Redington Beach passed an ordinance that granted the public certain access to the dry sand beaches. After the lawsuit was filed, Plaintiff Fields was asked to resign from her position on the Board of Adjustment (which reviews requests for variances from the Town's zoning code), because she had filed this suit against the Town.The Eleventh Circuit vacated and remanded the district court's grant of summary judgment to the property owners on their claims that the ordinance violated Florida law and constituted an unlawful taking. The court concluded that the district court erred in declaring the ordinance void under Florida Statute 163.035; the district court erred in granting summary judgment to the property owners on the Town's customary use defense; and the district court erred in finding a facial and an as-applied taking. The court also vacated and remanded the district court's grant of summary judgment to Plaintiff Fields on the First Amendment retaliation claim. View "Buending v. Town of Redington Beach" on Justia Law

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At issue in this case are the terms of a recorded easement that runs with two beachfront lots in Walton County, Florida. After the County enacted an ordinance purporting to establish the public's right to use the dry-sand area of all beaches for recreational purposes, two beachfront property owners filed suit alleging that the ordinance triggered the easement's abandonment clause.The Eleventh Circuit reversed the district court's grant of summary judgment in favor of the County, holding that the ordinance triggered the abandonment clause and that no other source of law—Florida common law, separate provisions in the easement, a Walton County resolution, or a consent judgment—forestalls or limits the abandonment clause's operation. Accordingly, the court remanded for further proceedings. View "A Flock of Seagirls LLC v. Walton County Florida" on Justia Law

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The Eleventh Circuit held that sexual harassment—both hostile housing environment and quid pro quo sexual harassment—is actionable under the Fair Housing Act of 1968, provided the plaintiff demonstrates that she would not have been harassed but for her sex.In this case, plaintiff filed suit against the property manager and the property's owner, alleging sexual harassment claims under the Act and state law. The district court found no guidance from the court on this question and therefore dismissed the complaint based on the ground that plaintiff's claims were not actionable under the Act. The court vacated the district court's order dismissing plaintiff's complaint and remanded for reconsideration. View "Fox v. Gaines" on Justia Law

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Spencer sued Sheriff Benison under 42 U.S.C. 1983, alleging that Benison violated his Fifth and Fourteenth Amendment rights by ordering him to remove cones and vehicles that were preventing Spencer’s neighbor from completing construction that Spencer claimed encroached on his property. The district court found that Benison acted outside the scope of his discretionary authority and was not entitled to qualified immunity on Spencer’s individual capacity claims and that Spencer had presented adequate evidence of a constitutional violation to sustain his section 1983 claims against Benison in both his individual and official capacities.The Eleventh Circuit reversed. Benison was acting within the scope of his discretionary authority when he ordered Spencer to remove the cones and vehicles. It was a legitimate job-related function for Benison, an Alabama sheriff, to seek the removal of cones and vehicles for the purposes of achieving public safety, given that traffic was backing up and customers were unable to access a business. Benison properly carried out his duties by verbally commanding Spencer to remove the cones and vehicles and by threatening arrest should he fail to comply. Spencer failed to present adequate evidence of a constitutional violation; he did not demonstrate that Benison’s actions caused him to be deprived of a constitutionally-protected property interest. View "Spencer v. Benison" on Justia Law

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The Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281 (2020) (CARES Act), among other things, imposed a 120-day moratorium on evictions for rental properties receiving federal assistance. The CDC then issued a temporary eviction moratorium on September 4, 2020, that suspended the execution of eviction orders for nonpayment of rent. Before the CDC's order was originally set to expire on December 31, 2020, Congress enacted the Consolidated Appropriations Act, which extended the CDC's order through January 31, 2021. The CDC's order was then extended again through March 31, 2021, and again through June 30, 2021, and again through July 31, 2021.Plaintiffs, several landlords seeking to evict their tenants for nonpayment of rent and a trade association for owners and managers of rental housing, filed suit alleging that the CDC's orders exceeds its statutory and regulatory authority, is arbitrary and capricious, and violates their constitutional right to access the courts.The Eleventh Circuit affirmed the district court's denial of plaintiffs' motion for a preliminary injunction based on plaintiffs' failure to show an irreparable injury. The court declined to find that the CDC's order is unconstitutional, and failed to see how the temporary inability to reclaim rental properties constitutes an irreparable harm. Furthermore, the court explained that, without any information about a tenant’s financial or employment picture, the court has no way to evaluate whether she will ever be able to repay her landlord; to decide otherwise based solely on the CDC declaration would be to conclude that no one who signed the declaration is likely to repay their debts after the moratorium expires. Given the lack of evidence and the availability of substantial collection tools, the court could not conclude that the landlords have met their burden of showing that an irreparable injury is likely. View "Brown v. Secretary, U.S. Department of Health and Human Services" on Justia Law

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This appeal relates to TOT Holdings' execution of a deed that donated to Foothills Land Conservancy, a conservation easement encumbering nearly all its property. The IRS disallowed the deduction claimed by the taxpayer, and the Tax Court upheld that decision because the deed conveying the easement contained a formula for the distribution of proceeds that did not comply with the extinguishment proceeds requirement and the deed was not saved by purported interpretive provisions. The taxpayer appealed.The Eleventh Circuit concluded that the Tax Court correctly determined that the taxpayer did not comply with the extinguishment proceeds requirement and that the deed was not saved by the disputed provisions because they constitute an unenforceable condition-subsequent savings clause. The court also held that the Tax Court did not commit reversible error in approving the penalties assessed. Accordingly, the court affirmed the judgment. View "TOT Property Holdings, LLC v. Commissioner of Internal Revenue" on Justia Law