Justia Real Estate & Property Law Opinion Summaries

The United States Army Corps of Engineers partnered with the City of Dallas on the Dallas Floodway Extension (DFE) project, which began in 1999. Plaintiffs Timpy Ondrusek and Barbara Ann Ondrusek Wolfe own property that Dallas attempted to condemn for the DFE. They sued the Corps and the City in federal district court, seeking declaratory and injunctive relief under the Administrative Procedure Act (APA), claiming the Corps failed to prepare a supplemental environmental impact statement (SEIS) to account for new information, violating the National Environmental Policy Act (NEPA) and the Clean Water Act (CWA).The United States District Court for the Northern District of Texas dismissed the claims, determining the case was not justiciable. The court found the plaintiffs had not shown Article III standing and dismissed the complaint without prejudice. The plaintiffs filed an amended complaint, but the district court again concluded the case was not justiciable, noting the levee design phase was only 35 percent complete, and dismissed the case as unripe without prejudice, denying leave to amend.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found the claims against the Army Corps of Engineers were ripe for decision, as the Corps' failure to comply with NEPA presented a present controversy. The court determined the plaintiffs had standing, as they alleged a concrete and particularized risk of environmental harm to their property due to the Corps' failure to prepare an SEIS. The court reversed the district court's dismissal of the suit with respect to the Army Corps of Engineers, affirmed the dismissal with respect to the City of Dallas, and remanded for further proceedings. View "Ondrusek v. United States Army Corps of Engineers" on Justia Law

In March 2013, Woodsboro Farmers Cooperative contracted with E.F. Erwin, Inc. to construct two grain silos. Erwin subcontracted AJ Constructors, Inc. (AJC) for the assembly. AJC completed its work by July 2013, and Erwin finished the project in November 2013. However, Woodsboro noticed defects causing leaks and signed an addendum with Erwin for repairs. Erwin's attempts to fix the silos failed, leading Woodsboro to hire Pitcock Supply, Inc. for repairs. Pitcock found numerous faults attributed to AJC's poor workmanship, necessitating complete deconstruction and reconstruction of the silos, costing Woodsboro $805,642.74.Woodsboro sued Erwin in Texas state court for breach of contract, and the case went to arbitration in 2017. The arbitration panel found AJC's construction was negligent, resulting in defective silos, and awarded Woodsboro $988,073.25 in damages. The Texas state court confirmed the award in September 2022. In December 2018, TIG Insurance Company, Erwin's insurer, sought declaratory relief in the United States District Court for the Southern District of Texas, questioning its duty to defend and indemnify Erwin. The district court granted TIG's motion for summary judgment on the duty to defend, finding no "property damage" under the policy, and later ruled there was no duty to indemnify, as the damage was due to defective construction.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that there were factual questions regarding whether the damage constituted "property damage" under the insurance policy, as the silos' metal parts were damaged by wind and weather due to AJC's poor workmanship. The court determined that the district court erred in granting summary judgment for TIG and concluded that additional factual development was needed. The Fifth Circuit reversed the district court's decision and remanded the case for further proceedings. View "TIG Insurance Company v. Woodsboro Farmers Coop" on Justia Law

A sub-subcontractor, Diamond Services Corporation, entered into a contract with Harbor Dredging, a subcontractor, to perform dredging work in the Houston Ship Channel. The prime contract for the project was awarded to RLB Contracting by the U.S. Army Corps of Engineers, and RLB obtained a surety bond from Travelers Casualty and Surety Company of America. During the project, unexpected site conditions, including the presence of tires, caused delays and increased costs. Diamond continued working based on an alleged agreement that it would be compensated through a measured-mile calculation in a request for equitable adjustment (REA) submitted by RLB to the Corps. However, RLB later settled the REA for $6,000,000 without directly involving Diamond in the negotiations and issued a joint check to Harbor and Diamond for $950,000.The United States District Court for the Southern District of Texas dismissed some of Diamond's claims, including those for unjust enrichment and express contractual claims against RLB, but allowed Diamond's quantum meruit claim to proceed. The court also denied Travelers' motion to dismiss Diamond's Miller Act claims but required Diamond to amend its complaint to include proper Miller Act notice, which Diamond failed to do timely. Subsequently, the district court granted summary judgment in favor of RLB and Harbor, dismissing Diamond's remaining claims and striking Diamond's untimely second amended complaint.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court's summary judgment against Diamond's quantum meruit claims, holding that the express sub-subcontract covered the damages Diamond sought and that Diamond failed to provide evidence of the reasonable value of the work performed. The court also affirmed the dismissal of Diamond's Miller Act claim, as the damages sought were not recoverable under the Act. The court dismissed Diamond's appeal regarding the tug-expenses claim due to untimeliness. View "Diamond Services v. RLB Contracting" on Justia Law

Anthony Barron, a civilian contractor, drowned while driving through a low water crossing at Camp Bullis, a U.S. military facility near San Antonio, Texas. The crossing was not closed or guarded despite regulations requiring such measures during heavy rain. Barron’s parents sued the United States under the Federal Tort Claims Act, alleging general negligence, premises liability, and negligent undertaking.The United States District Court for the Western District of Texas dismissed the claims, citing sovereign immunity and the discretionary function exception. On appeal, the Fifth Circuit reversed, finding that the regulation mandating the gate be locked or guarded was non-discretionary. On remand, the district court granted summary judgment for the government, ruling that Texas law barred the general negligence and premises liability claims and that the negligent undertaking claim was inadequately pleaded.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. It affirmed the district court’s summary judgment on the general negligence and premises liability claims, agreeing that Texas law precludes recovery under these theories. However, the appellate court disagreed with the district court’s finding that the negligent undertaking claim was inadequately pleaded. The Fifth Circuit found that the plaintiffs had sufficiently alleged the elements of negligent undertaking.Given the uncertainty in Texas law regarding whether a negligent undertaking claim can proceed when a premises liability claim is barred by the natural accumulation doctrine, the Fifth Circuit certified this question to the Supreme Court of Texas. The appellate court retained jurisdiction pending the state court’s response. View "Barron v. United States" on Justia Law

Keiland Construction, L.L.C. entered into a construction subcontract with Weeks Marine, Inc. for a project in Louisiana. Weeks terminated the contract for convenience, leading to a dispute over compensation. Keiland submitted pay applications and demobilization costs, which Weeks partially paid. The disagreement centered on whether the contract required lump-sum payments for work completed before termination or if it converted to a cost-plus basis upon termination.The United States District Court for the Western District of Louisiana held a bench trial and found the contract ambiguous. It construed the ambiguity against Keiland, the drafter, and ruled in favor of Weeks. The court awarded Keiland damages based on Weeks’s interpretation of the contract but denied Keiland’s claims for direct employee and demobilization costs. The court also awarded Weeks attorneys’ fees and costs, though less than requested, and denied Weeks’s motion for post-offer-of-judgment fees and costs.The United States Court of Appeals for the Fifth Circuit reviewed the case. It affirmed the district court’s findings, agreeing that the contract was ambiguous and that the ambiguity should be construed against Keiland. The appellate court upheld the district court’s rulings on damages, attorneys’ fees, and costs, including the denial of post-offer-of-judgment fees and costs. The court also affirmed the award of prejudgment interest to Keiland, finding no abuse of discretion.In summary, the Fifth Circuit affirmed the district court’s judgment in all respects, including the interpretation of the contract, the award of damages, attorneys’ fees, costs, and prejudgment interest. View "Keiland Construction v. Weeks Marine" on Justia Law

The case involves two nonprofit organizations, the National Federation of the Blind of Texas and Arms of Hope, which use donation boxes to collect items for fundraising. The City of Arlington, Texas, enacted an ordinance regulating the placement and maintenance of these donation boxes, including zoning restrictions and setback requirements. The nonprofits challenged the ordinance, claiming it violated the First Amendment by restricting their ability to place donation boxes in certain areas of the city.The United States District Court for the Northern District of Texas reviewed the case. The court granted summary judgment in favor of Arlington on several counts, including the constitutionality of the setback requirement and the ordinance not being overbroad or a prior restraint. However, the court ruled in favor of the nonprofits on the zoning provision, finding it was not narrowly tailored and thus violated the First Amendment. The court enjoined Arlington from enforcing the zoning provision against the nonprofits.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that the ordinance was content-neutral and subject to intermediate scrutiny. It found that the zoning provision, which limited donation boxes to three of the city's 28 zoning districts, was narrowly tailored to serve Arlington's significant interests in public health, safety, welfare, and community aesthetics. The court also upheld the setback requirement, finding it did not burden more speech than necessary and left ample alternative channels of communication. The court concluded that the ordinance's permitting provisions did not constitute an unconstitutional prior restraint.The Fifth Circuit vacated the district court's judgment regarding the zoning provision and rendered judgment in favor of Arlington on that part. The rest of the district court's judgment was affirmed. View "National Federation of the Blind of Texas, Incorporated v. City of Arlington" on Justia Law

The case revolves around a dispute between SR Construction (SRC), a construction company, and RE Palm Springs II, L.L.C. (RPS), a company formed to take title to a hotel property. SRC was hired to build a hotel in California but was terminated before completion, leaving it with a demand for $14 million in unpaid work. After several failed attempts to recover its dues, SRC held onto certain personal property left over from the hotel project. The bankruptcy court ordered SRC to turn over the personal property, which SRC appealed.The lower courts had a series of interactions with this case. The bankruptcy court initially ordered SRC to turn over the personal property. SRC appealed this decision, challenging the bankruptcy court's power to order the turnover and the validity of the most recent hotel owner's claim to the personal property. The district court affirmed the bankruptcy court's decision, concluding that the bankruptcy court had jurisdiction to interpret and enforce the Sale Order. It also affirmed the bankruptcy court's conclusion that Hall had obtained title to the Personal Property and had not waived its right to the Personal Property by taking it "as is."The United States Court of Appeals for the Fifth Circuit affirmed the lower courts' decisions. The court concluded that the bankruptcy court's order was part of its undisputed power to order the sale of a bankruptcy debtor's assets. It also rejected SRC's arguments about ownership of the assets in this case. The court found that the bankruptcy court had jurisdiction to enter the Turnover Order because that order interpreted and enforced the Sale Order. It also concluded that because the Turnover Order is integral to and inseparable from RPS's bankruptcy, it is a core matter. Therefore, issuing the Turnover Order was entirely within the bankruptcy court's authority. The court also affirmed the conclusion that title to the Personal Property passed from SRC to Palm Springs, then to RPS, and finally to Hall. View "SR Construction v. RE Palm Springs II" on Justia Law

In this case, a Delaware statutory trust, NB Taylor Bend, DST (Taylor Bend), borrowed $13 million from Prudential Mortgage Capital Company, LLC (Prudential) to acquire property in Lafayette County, Mississippi. Patrick and Brian Nelson, who were guarantors of the loan, signed an Indemnity and Guaranty Agreement (the Guaranty) in December 2014, personally guaranteeing the loan. After the loan documents were executed, Prudential assigned the loan to Liberty Island Group I, LLC (Liberty), which in turn assigned the loan to North American Savings Bank, FSB (NASB). By May 2020, Taylor Bend struggled to find tenants for the property due to the COVID-19 pandemic and informed NASB of their financial problems. In May 2021, NASB declared Taylor Bend to be in default after the borrower continually failed to make timely loan payments. NASB then filed an action against the Nelsons in the United States District Court for the Northern District of Mississippi, asserting claims for breach of the Guaranty, for recovery of the loan balance, and for declaratory judgment.The district court entered partial summary judgment for NASB, holding the Nelsons “breached the [G]uaranty and thus owe[d] to [NASB] the amount remaining due on the subject loan.” The court determined that the Guaranty was “freely assignable” and that Prudential adequately assigned all of its rights and interests to Liberty, which in turn assigned all of its rights and interests to NASB, including those conferred by the Guaranty. The court also concluded that the defenses raised by the Nelsons were “unavailable given the borrower’s absence from this litigation.” The court also granted Brian’s motion for summary judgment against Patrick, ruling that the indemnity agreement between the brothers was valid and binding and that Patrick was contractually required to indemnify Brian for “any and all obligations arising out of or relating to this litigation.”The United States Court of Appeals for the Fifth Circuit affirmed the district court's decision. The court held that the Guaranty was properly assigned from Prudential to Liberty and from Liberty to NASB. NASB could therefore properly bring its claims for breach of guaranty and declaratory judgment against the Nelsons to recover the loan deficiency. Moreover, under Mississippi law, Patrick may not interpose equitable defenses that were available only to Taylor Bend to defeat his liability under the Guaranty. The court also held that the deficiency judgment awarded to NASB pursuant to the Guaranty need not be reduced by the third-party sale of the Apartments to Kirkland. NASB had no duty to mitigate its damages under either Mississippi law or the terms of the Guaranty. View "North American Savings Bank v. Nelson" on Justia Law

The case revolves around a dispute between Good River Farms and Martin Marietta Materials and TXI Operations, who own land directly across from each other along the Colorado River. In 2015, a "120-year flood" event occurred near Austin, Texas, causing severe damage to Good River's pecan farm. Good River claimed that Martin Marietta's strip mining activities resulted in a large pit filled with groundwater that breached and released a deluge of impounded surface water onto their property. Following a jury trial, Good River was awarded $659,882.00 in damages, prevailing on claims for violations of Texas Water Code § 11.086 and for negligence. Martin Marietta appealed the decision.The case was initially heard in the United States District Court for the Western District of Texas. The jury rejected Good River's nuisance claims but found in favor of Good River on the issues of water diversion and negligence. The trial court entered final judgment on that verdict, awarding Good River $659,882.00 in damages. Martin Marietta filed a renewed motion for judgment as a matter of law under Rule 50(b), which the trial court denied.The case was then reviewed by the United States Court of Appeals for the Fifth Circuit. The court affirmed the lower court's decision, ruling that there was sufficient evidence to support the jury's conclusions that Martin Marietta violated Texas Water Code § 11.086 and committed common law negligence. The court noted that the jury verdict demands deference and that the unique factual scenario presented in this case supported the jury's conclusions. View "Good River Farms v. TXI Operations" on Justia Law

In October 2018, Warren G. Treme, a member of AJSJS Development, LLC, leased minerals on a tract of land in St. John the Baptist Parish, Louisiana, from Dr. Christy Montegut and his siblings. AJSJS intended to join a joint venture formed in 2010 between Treme, AIMS Group, Inc., and Fred Kinsley. The joint venture aimed to extract and process clay material from the tract for a U.S. Army Corps of Engineers project. However, to conduct mining and excavation activities, the plaintiffs needed to change the zoning classification of the tract. Despite multiple applications for rezoning, the Parish Council denied the applications after hearing complaints from affected residents. The plaintiffs then sued the Parish and the Council, alleging that the denial of the rezoning application constituted a regulatory taking without compensation in violation of the United States and Louisiana Constitutions. The plaintiffs also alleged violations of procedural and substantive due process and equal protection rights under the Fourteenth Amendment.The United States Court of Appeals for the Fifth Circuit held that the plaintiffs lacked standing to bring a takings claim because their mineral lease was not yet in effect, meaning they had no vested property interest in the tract. The court interpreted the lease to have a suspensive condition that required the plaintiffs to obtain governmental approvals for the lease to become effective. As the plaintiffs had not obtained these approvals, the lease had not yet come into effect. Consequently, the court affirmed the district court’s decision but modified the judgment to be a dismissal without prejudice. View "Treme v. St. John the Baptist" on Justia Law