Justia Real Estate & Property Law Opinion Summaries

The First Circuit affirmed the order of the district court entering summary judgment in favor of Defendant and dismissing Plaintiff's claims for fraud, civil conspiracy, breach of fiduciary duty, and unjust enrichment, holding that Plaintiff failed to make a sufficient showing on essential elements of her case.In 2014, Plaintiff sold her special limited partnership interests in an affordable housing property for $1.5 million. In 2016, the property sold for $11.7 million. Plaintiff brought this lawsuit alleging claims for civil conspiracy, fraud, unjust enrichment, and breach of fiduciary duty, alleging that she was fraudulently led to believe that Defendant had power over the property and would block any attempt to sell or refinance it. The district court entered summary judgment for Defendant. The First Circuit affirmed, holding (1) Plaintiff failed to establish that Defendant intentionally misrepresented the value of the property and Plaintiff's special interest; and (2) Plaintiff's remaining causes of action were unsuccessful in the absence of wrongdoing or foreseeable damages. View "Katz v. Belveron Real Estate Partners, LLC" on Justia Law

The First Circuit affirmed the judgment of the district court dismissing a relator's qui tam action brought under the False Claims Act (FCA), 31 U.S.C. 3729 through 3733, holding that the district court did not err in dismissing the action.At issue before the First Circuit was the function of the hearing provided by statute when the government files a motion to dismiss a relator's FCA qui tam action over the relator's objections. The Court held (1) the government must provide its reasons for seeking dismissal such that the relator can attempt to convince the government to withdraw its motion at the hearing; (2) if the government does not agree to withdraw its motion, the district court should grant the motion unless the relator can show that, in seeking dismissal, the government is transgressing constitutional limitations or perpetrating a fraud on the court; and (3) the district court properly granted the government's motion to dismiss this case. View "Borzilleri v. Bayer AG" on Justia Law

The First Circuit affirmed the judgment of the district court entering three separate judgment opinions and orders against Puerto Rico Industrial Development Company (PRIDCO) in this action brought by the United States seeking to recover response costs associated with the cleanup of the Maunabo Area Groundwater Contamination Superfund Site, holding that the district court did not err.The United States brought this action under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), 42 U.S.C. 9601 et seq., against PRIDCO, as a potentially responsible party. PRIDCO owned property on the Site that contained elevated levels of hazardous substances in the groundwater that were found downgradient in a public drinking water well. In its orders against PRIDCO, the district court found, inter alia, that the United States had established its prima facie case against PRIDCO for liability under CERCLA and that PRIDCO was liable for $5.5 million in past response costs and would be liable for additional response costs reasonably incurred by the United States. The First Circuit affirmed, holding that the entry of summary judgment and award of response costs was not error. View "United States v. Puerto Rico Industrial Development Co." on Justia Law

The First Circuit affirmed the judgment of the district court awarding to the Commonwealth a letter written by Alexander Hamilton to the Marquis de Lafayette on July 21, 1780 that was the subject of a civil forfeiture action, holding that there was no error.The letter at issue was seized pursuant to a judicial warrant by the Federal Bureau of Investigations from a fine antiques auctions house in Virginia. The government filed a verified complaint for forfeiture in rem against the letter, alleging that the letter was subject to forfeiture as property traceable to a violation of statutes that criminalize interstate transport of and trade in stolen goods valued over $5,000. The Commonwealth and the Estate of Stewart Crane filed claims to the letter. The district court struck the Estate's claim and concluded that the Commonwealth was the only entity that could own the letter. The First Circuit affirmed, holding that the district court did not err in honoring the Commonwealth's claim of entitlement to the letter. View "United States v. Boss" on Justia Law

In this appeal arising out of an adversary action filed in a Chapter 11 proceeding in the Bankruptcy Court for the District of Massachusetts the First Circuit affirmed the judgment of the bankruptcy court allowing the debtor to avoid a mortgage, holding that there was no error in the bankruptcy court's judgment.After Debtor filed for Chapter 11 bankruptcy Debtor commenced an adversary proceeding against U.S. Back seeking to "avoid" the mortgage because her name was missing from the certificate of acknowledgment. The district court granted Debtor's motion. The district court affirmed. The First Circuit affirmed, holding that summary judgment was properly granted for Debtor because the omission of Debtor's name from the certificate of acknowledgment was a material defect under Massachusetts law. View "U.S. Bank, N.A. v. Desmond" on Justia Law

The First Circuit affirmed the judgment of the Bankruptcy Appellate Panel for the First Circuit (BAP) affirming the summary judgment entered by the bankruptcy court against the bankruptcy trustee (the Trustee) for an estate of two individuals, holding that an unrecorded mortgage in Puerto Rico is not a transfer of the debtor's property that is voidable by a bona fide purchaser that triggers the bankruptcy trustee's authority to avoid and preserve the lien.Jose Antonio Lopez Cancel and Carmen Nereida Medina Gonzalez acquired a property in Puerto Rico that they used as their primary residence. Banco Popular de Puerto Rico held the mortgage, but the mortgage was never recorded. The bankruptcy court treated the mortgage as a general unsecured claim covered by an earlier discharge order. The Trustee then filed this action to avoid the mortgage and preserve it on behalf of the bankruptcy estate, arguing that the unrecorded mortgage was a transfer of the debtor's property that was voidable by a bona fide purchaser. The bankruptcy court concluded that the Trustee could not avoid and preserve an unrecorded mortgage because, under Puerto Rican law, an unrecorded mortgage is not a property interest. The BAP affirmed. The First Circuit affirmed, holding that there was no error. View "Segarra Miranda v. Banco Popular de Puerto Rico" on Justia Law

In this en banc decision involving a real property dispute, the First Circuit affirmed the judgment of the district court holding that the "Penobscot Indian Reservation" (the Reservation) does not include the waters and submerged lands constituting the riverbed of the six-mile stretch of the Penobscot River known as the Main Stem, holding that the district court did not err.The Penobscot Nation sued the State of Maine and various state officials seeking a declaratory judgment that the Nation had exclusive regulatory authority over the Main Stem and a declaratory judgment that the Nation had sustenance fishing rights in the Main Stem. The district court declared that the Reservation does not include the waters of the Main Stem or the submerged lands of the riverbed beneath it but that the Nation had sustenance fishing rights in the Main Stem. A divided panel of the First Circuit affirmed in part and vacated in part. The First Circuit subsequently vacated the panel opinion and granted rehearing en banc. The Court then held (1) the Reservation does not include the waters and submerged lands constituting the riverbed of the Main Stem; and (2) as to the Nation's claim that Maine infringed on its fishing rights, the claim was not ripe and the Nation lacked standing. View "United States v. Frey" on Justia Law

The First Circuit affirmed the judgment of the district court holding that the Federal National Mortgage Association (Fannie Mae) and the Federal Housing Finance Agency (FHFA) were not subject to Appellants' Fifth Amendment claims, holding that there was no error.Appellants obtained loans secured by mortgages on their real property in Rhode Island. The loans and mortgages were later sold to Fannie Mae while the FHFA was acting as Fannie Mae's conservator. Consistent with Rhode Island law, when Appellants defaulted on their loans Fannie Mae conducted nonjudicial foreclosure sales of the mortgaged properties. Appellants brought suit in a federal district court, arguing that the nonjudicial foreclosure sales violated their procedural due process rights under the Fifth Amendment. The district court dismissed those claims. The First Circuit affirmed, holding that FHFA and Fannie Mae were not government actors subject to Appellants' due process claims. View "Montilla v. Federal National Mortgage Ass'n" on Justia Law

The First Circuit dismissed Plaintiffs' appeal for want of jurisdiction, holding that the Federal Rules of Bankruptcy Procedure (the bankruptcy rules), and not the Federal Rules of Civil Procedure (the civil rules), govern cases that have come within the federal district court's jurisdiction as cases "related to" a pending bankruptcy proceeding. 28 U.S.C. 1334(b).In this case arising from the derailment and explosion in Lac-Megantic, Canada, Plaintiffs brought thirty-nine separate suits against several defendants. The derailment occurred on the watch of Montreal, Maine and Atlantic Railway (MMA). MMA sought the protection of the bankruptcy court. Plaintiffs' suits were removed to federal district court. Plaintiffs subsequently joined Canadian Pacific Railway Company as an additional defendant. The suits were centralized in the District of Maine. The district court later granted Plaintiffs' request to dismiss their claims against all defendants except Canadian Pacific pursuant to a settlement agreement that was part of MMA's plan of liquidation. The district court entered judgment for Canadian Pacific. Plaintiffs moved for reconsideration of their motion to file an amended complaint. The district court denied the motion as untimely. The First Circuit dismissed Plaintiffs' appeal, holding that the Bankruptcy Rules governed the procedural aspects of this case, Plaintiffs' motion to reconsider was untimely, and the attempted appeal was untimely. View "Roy v. Canadian Pacific Railway Co." on Justia Law

The First Circuit vacated the judgment of the district court granting summary judgment in favor of Bautista Cayman Asset Company in its action for collection of monies and foreclosure of collateral against Fountainebleu Plaza, S.E., Edwin Loubriel Ortiz, and Sedcorp, Inc., holding that remand was required for the sole purpose of better determining the amount due.Fountainebleu and Loubriel (collectively, Appellants) appealed the district court's judgment, arguing that the district court lacked subject matter jurisdiction over the case and that, alternatively, genuine issues of material fact precluded summary judgment. The First Circuit vacated the judgment, holding that because the record failed to account for payments made to Bautista's predecessor, the case must be remanded for the sole purpose of better determining the amount due. View "Bautista Cayman Asset Co. v. Fountainebleu Plaza, S.E." on Justia Law