Justia Real Estate & Property Law Opinion Summaries

Articles Posted in US Court of Appeals for the First Circuit
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The First Circuit affirmed the judgment of the tax court sustaining a notice of deficiency issued by the Internal Revenue Services (IRS) to TBL Licensing LLC for the 2011 tax year, holding that the Tax Commissioner properly determined that TBL's transfer of its intangible property was followed by a disposition of that property, requiring TBL to pay the tax due in a lump sum.In 2011, TBL transferred the intangible property at issue, which was worth approximately $1.5 billion, to an affiliated foreign corporation. TBL argued that the tax attributable to the transfer, which occurred in the context of a corporate reorganization involving an exchange as described in section 26 U.S.C. 361, could be paid on an annual basis by one of TBL's affiliates. The IRS disagreed and assessed a deficiency based on its position that TBL was required to pay tax on the entire gain and to do so in its 2011 tax return. The First Circuit affirmed, holding that there was nothing in 26 U.S.C. 367(d) that would absolve TBL of its responsibility under the disposition-payment rule. View "TBL Licensing LLC v. Werfel" on Justia Law

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The First Circuit affirmed the judgment of the district court granting United States Liability Insurance Group's (USLI) motion to dismiss this lawsuit brought by Nahant Preservation Trust, Inc. to secure insurance coverage in connection with defense costs and indemnification arising from a state court action brought by Northeastern University, holding that there was no error.Northeastern sued Nahant in state court seeking a declaratory judgment regarding its rights concerning certain land. Nahant, which carried liability insurance through USLI, did not notify USLI of the suit until it wrote to USLI seeking coverage for defense costs. USLI refused to provide coverage on the grounds that Nahant had provided untimely notice of the claim. Thereafter Nahant sued USLI seeking, among other things, a declaratory judgment regarding USLI's duty to defend and indemnify. The First circuit granted USLI's motion to dismiss, concluding that the "exclusion agreement" signed by the parties excluded coverage. The First Circuit affirmed, holding that the district court properly accepted USLI's plausible reading of the exclusion amendment. View "Nahant Preservation Trust, Inc. v. Mount Vernon Fire Insurance Co." on Justia Law

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The First Circuit denied Petitioners' petition objecting to a permit issued by the Environmental Protection Agency (EPA) and affirmed by the Environmental Appeals Board requiring General Electric Company (GE) to clean up polychlorinated biphenyls from certain portions of the Housatonic River, holding that the EPA's challenged actions were not arbitrary or capricious.On appeal, Petitioners brought three substantive challenges and also brought procedural challenges to the permit's issuance. The First Circuit denied the petition after noting that should GE's cleanup of the river not achieve the goals set out in the permit, the permit requires further measures, holding that Petitioners were not entitled to relief on their procedural and substantive legal challenges. View "Housatonic River Initiative v. U.S. Environmental Protection Agency" on Justia Law

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The First Circuit affirmed the judgment of the district court dismissing Matthew Haney's complaint, brought as the Trustee of the Gooseberry Island Trust, against the Town of Mashpee and its Zoning Board of Appeals, holding that Haney's arguments on appeal were either waived or meritless.Haney brought this action seeking a declaratory judgment that Defendants' actions constituted uncompensated taking of property in violation of the Fifth Amendment of the United States Constitution due to an unconstitutional taking and the Massachusetts Constitution due to inverse condemnation. The district court dismissed the complaint on the grounds that the claims were not ripe for review. The First Circuit affirmed, holding (1) Haney waived his argument relative to whether the government had reached a final decision on the Trust's request for variances; and (2) Haney's remaining arguments were meritless. View "Haney v. Town of Mashpee" on Justia Law

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The First Circuit affirmed the judgment of the district court dismissing the claim brought by the Back Beach Neighbors Committee alleging that the Town of Rockport, Massachusetts committed a class-of-one equal protection violation by failing adequately to enforce local rules against scuba divers at Back Beach, holding that the district court did not err.The Committee brought this complaint claiming that the Town's failure consistently to enforce various rules as to Back Beach led to the singling out of the beach as a place "to welcome divers." The district court granted the Town's motion to dismiss as to six of the complaint's eight counts and then granted summary judgment for the Town on the remaining counts. The First Circuit affirmed, holding that because the Committee did not plausibly allege the existence of similarly-situated comparators, its class-of-one equal protection claim failed. View "Back Beach Neighbors Committee v. Town of Rockport" on Justia Law

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In this case concerning the regulation of gambling licenses in the Commonwealth the First Circuit reversed in part the summary judgment for Defendants and certified questions of law to the Massachusetts Supreme Judicial Court (SJC).An option contract for the purchase of land gave Encore Boston Harbor the option to purchase land from FBT Realty, LLC for $75 million should the Massachusetts Gaming Commission grant Encore a gaming license. The Commission ultimately conditioned the grant of the license on a $35 million purchase price for the sale of the land and signed certification by each member of FBT, except for Plaintiff, that they were sole members of the company. Defendants presented Plaintiff with an offer that would "make him whole" if he signed the certification in a contract. Plaintiff executed the required certification and then brought this action alleging, among other claims, breach of contract. The district court granted summary judgment for Defendants, finding no valid or enforceable contract. The First Circuit reversed in part, holding that genuine issues of material fact existed as to certain claims and that the question of whether the contract was unenforceable as contrary to state law and/or as a violation of public policy must be resolved by the SJC. View "Gattineri v. Wynn MA, LLC" on Justia Law

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The First Circuit affirmed the decision of the district court dismissing in part Plaintiffs' claims that a subset of Defendants participated in a conspiracy in violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act, 18 U.S.C. 1961-1968 and that this conspiracy injured Plaintiffs, holding that there was no error.Plaintiffs brought this action alleging that Defendants engaged in several interrelated schemes to defraud Plaintiffs of Maine real estate. The district court dismissed the RICO conspiracy claim against two defendants, David Hirshon and LOSU, LLC, and denied Plaintiffs' motion seeking limited discovery from Hirshon. The First Circuit affirmed, holding that the district court did not err in (1) ruling that the complaint failed to state a RICO conspiracy claim against Hirshon and LOSU; (2) declining to consider certain documents outside the complaint in deciding a motion to dismiss; and (3) denying Plaintiffs discovery. View "Douglas v. Hirshon" on Justia Law

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The First Circuit affirmed the judgment of the district court dismissing Appellants' complaint against the Town of Lynnfield, Massachusetts and several of the town's agencies and employees (collectively, Lynnfield) in this dispute over Appellants' spring water business, holding that there was no error or abuse of discretion.Appellants owned and operated the Pocahontas Spring in Lynnfield, Massachusetts, which sat on protected wetlands subject to state and local regulations. When Appellants sought to revive their spring water business and to maintain the Spring for Native Americans as a source of healing water. Appellants brought this complaint alleging that Lynnfield conspired to have neighbors lodge false complaint about Appellants' allegedly unlawful activities at the Spring and Lynnfield would respond to intimidate Appellants and interfere with their business. The First Circuit affirmed the district court's dismissal of the complaint, holding that Appellants' failure adequately to brief their two First Amendment claims proved fatal in this case. View "Gattineri v. Town of Lynnfield, Mass." on Justia Law

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The First Circuit reversed the order of the district court dismissing Plaintiffs' breach of contract claim against Wilmington Savings Fund Society, FSB and otherwise affirmed the district court order dismissing Plaintiffs' complaint against Wilmington Savings and Selene Finance LP, holding that the district court erred in part.Plaintiffs filed a complaint seeking a declaratory judgment that Defendants breached the parties' mortgage contract by selling their property through a non-judicial foreclosure, thus rendering the foreclosure void. Specifically, Plaintiffs alleged that the foreclosure and sale were conducted without providing adequate notice, as required by the mortgage contract. The district court granted Defendants' motion to dismiss. The First Circuit reversed in part, holding (1) Plaintiffs stated a claim that the notice of default failed strictly to comply with the requirements of the mortgage contract, and therefore, dismissal of their claim against Wilmington Savings was improper; and (2) as to the remaining claims, dismissal was proper. View "Aubee v. Selene Finance LP" on Justia Law

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In this dispute over an award of attorneys' fees under 42 U.S.C. 1988, the First Circuit identified only one defect in the award, thus vacating the existing fee award in the amount of $20,243 and remanding to the district court to enter a modified fee award in the amount of $18,218, holding that the district court abused its discretion in part.The underlying case revolved around a parcel of real property in Puerto Rico formerly owned by Plaintiff. Defendants, including the Puerto Rico Highway and Transportation Authority, moved for summary judgment for Plaintiff's failure to seek just compensation in the Puerto Rico courts before raising a federal takings claim. The district court granted the motion. As to attorney's fees, the district court found that the federal takings claim was frivolous and awarded payment of fees in the amount of $20,243. The First Circuit vacated the award, holding that the time expended in connection with a non-frivolous supplemental tort claim should have been deducted from the fee award. View "Efron v. Mora Development Corp." on Justia Law