Justia Real Estate & Property Law Opinion Summaries

International sought permission to erect two two-sided billboards in the City of Troy. These billboards were to be 14 by 48 feet in area and 70 feet in height when mounted; they did not conform to height, size, and setback requirements in the Ordinance. After the City denied its permit application and request for a variance, International sued, citing the First Amendment and arguing that the Ordinance’s variance procedure imposed an invalid prior restraint and that its permit exceptions were content-based restrictions on free speech. The Sixth Circuit affirmed summary judgment to the City on International’s prior-restraint claim but remanded for the court to consider whether the Ordinance, with the permit exceptions, survived strict scrutiny.The district court held that the permitting requirements, with the content-based exceptions. did not survive strict scrutiny but that the permit exceptions are severable, leaving intact the Ordinance’s height, size, and setback requirements. The Sixth Circuit affirmed. International’s proposed billboards do not satisfy those valid, content-neutral standards, View "International Outdoor, Inc. v. City of Troy" on Justia Law

The Tennessee Department of Transportation (TDOT) contracted with Jones to repair State Route 141. The project involved 68,615 tons of “graded solid rock” for the new road's bottom layer. To obtain graded solid rock, Jones leased land near the roadway, paying the property owner $75,282. Jones prepared the Site and began pattern blasting the limestone to produce appropriately sized rock pieces, using a “shaker” bucket to allow debris to fall away. Appropriately-sized rocks were hauled to the road site. The Site also served as a waste pit for material from the road repair. After several months, a Federal Mine Safety & Health Administration Inspector inspected the Site, determined that Jones had violated several Administration standards, and issued citations and orders.An ALJ ruled that the Site was a mine subject to the Mine Act, not a “borrow pit,” which is not subject to the Administration’s jurisdiction. On remand, the case was assigned to another ALJ, who indicated that she had read the vacated decision. Jone moved for recusal, citing the Sixth Circuit’s command that Jones receive fresh proceedings. The ALJ denied the motion and held that the Site was a mine, not a borrow pit, based on findings that Jones did not only use the Site on a one-time basis or only intermittently; engaged in milling, sizing, and crushing; and did not use the rock more for bulk fill than for its intrinsic qualities. The Sixth Circuit affirmed the decision as supported by substantial evidence. View "Jones Brothers, Inc. v. Secretary of Labor, Mine Safety & Health Administration" on Justia Law

Nashville passed a “sidewalk ordinance.” To obtain a building permit, an owner must grant an easement across their land and agree to build a sidewalk on the easement or pay an “in-lieu” fee that Nashville will use to build sidewalks elsewhere.In a challenge to the ordinance under the Fifth Amendment’s Takings Clause, the landowner plaintiffs asked the court to apply the “unconstitutional-conditions” test that the Supreme Court adopted in 1987 to assess conditions on building permits (Nollan v. California Coastal Commission). Nashville argued that the Court has applied Nollan’s test only to ad hoc administrative conditions that zoning officials impose on specific permit applicants—not generally applicable legislative conditions that city councils impose on all permit applicants. For legislative conditions, Nashville argued in favor of the application of the deferential “balancing” test that the Court adopted to assess zoning restrictions in “Penn Central” (1978). The district court granted Nashville summary judgment.The Sixth Circuit reversed, agreeing with the landowners. Nothing in the relevant constitutional text, history, or precedent supports Nashville’s distinction between administrative and legislative conditions. Nollan’s test should apply to both types, including those imposed by the sidewalk ordinance. View "Knight v. e Metropolitan Government of Nashville and Davidson County" on Justia Law

In 1973, the brothers’ father, Marvin, purchased property in Sequatchie County. In 1997, he obtained a $200,000 home equity line of credit. A Deed of Trust was recorded. The terms of the loan required monthly interest payments until the maturity date—May 2007—when a final balloon payment of the entire outstanding balance would become due. The loan’s maturity date passed but Regions did not demand payment of the entire balance, refinance the loan, or foreclose on the property, but continued to accept monthly interest payments. After Marvin’s death, the brothers used the property for their trucking business and made payments on the loan through the business account. Regions learned of Marvin’s death in 2011 but continued to accept payments. In 2017, the brothers realized that Regions was sending statements demanding payment of the entire debt. A Regions representative informed them that the property would be foreclosed on with “no further discussion.” In 2018, Regions filed a foreclosure action, requesting a declaration that the loan’s maturity date had been extended. Based on an apparent tax lien, the IRS removed the case to federal court.The Sixth Circuit affirmed summary judgment in favor of the brothers. Tennessee law provides a 10-year statute of limitations for the enforcement of liens. The maturity date of the loan was never extended; Tennessee law requires a written instrument, “duly executed and acknowledged,” and “filed for record with the register of the county.” View "Regions Bank v. Fletcher" on Justia Law

In 2017, the County initiated an administrative tax foreclosure against BSI. The County Board of Revision (BOR) issued its final adjudication of foreclosure in June 2019. Because the County had opted for the alternative right of redemption, BSI had 28 days to pay the taxes before the County took title to the property. Days later, BSI filed a Chapter 11 bankruptcy petition, which automatically stayed the BOR’s final judgment and 28-day redemption period. The bankruptcy court granted the County relief from the stay on January 17, 2020. The BOR determined that the statutory redemption period expired on January 21, 2020. On January 30, rather than sell the property, the County transferred it to its land bank (Ohio Rev. Code 323.78.1). When a county sells foreclosed property at auction, it may not keep proceeds beyond the taxes the former owner owed; if the county transfers the property to the land bank, “the land becomes ‘free and clear of all impositions and any other liens.’”BSI filed suit, 42 U.S.C. 1983, alleging that a significant difference between the appraised value of the property and the amount that the County alleged BSI owed meant that the County’s action violated the Takings Clause. The district court dismissed the case under the two-year statute of limitations. The Sixth Circuit reversed. The limitations period began to run when the redemption period ended on January 21, 2020. If BSI paid its delinquent taxes during that period, the County would have been prohibited from taking the property. View "Beaver Street Investments, LLC v. Summit County, Ohio" on Justia Law

A 2008 Michigan initiative decriminalized marijuana for medical purposes; a 2016 law afforded legal status to medical marijuana dispensaries. In Detroit, the Buildings, Safety Engineering, and Environmental Department (BSEED) screened applications for such facilities. The code prohibits locating such a facility in a drug-free zone–an area “within 1,000 radial feet of the zoning lot” containing any one of several "sensitive places," including a school.Genie applied to run a medical marijuana distribution facility on Mack Avenue in Detroit. BSEED denied the application at the screening stage because the proposed site was in a drug-free zone based on a lot (in the neighboring community of Grosse Point Park) on which St. Clare School sits. Genie unsuccessfully challenged the determination through state administrative and judicial channels. Detroit deemed the St. Clare’s “zoning lot” to include land where the parish church sits (the church and school have separate lots of record), all of which is listed under a single tax parcel number.Genie sued in federal court, arguing that Detroit erred in measuring the distance between the proposed Genie site and St. Clare’s while approving other sites in violation of the equal protection and due process guarantees. The Sixth Circuit affirmed summary judgment in favor of Detroit. Genie had no property interest in its proposed facility. Detroit applied the same method of measurement to each comparable applicant. Although Genie cited two applications that were approved, many applications were rejected on that basis. View "Green Genie, Inc. v. City of Detroit" on Justia Law

Detroit prohibits street vendors from selling their goods within 300 feet of sports arenas or stadiums. After the completion of Little Caesar’s Arena in 2017, the new home of the Red Wings and Pistons, Detroit refused to renew three vendor licenses for locations that fell within the 300-foot exclusion zone. The licenses had been in place since 2008. The displaced vendors sued, claiming due process violations.The Sixth Circuit affirmed summary judgment in favor of Detroit. The ordinance does not create a property interest in a vendor’s license; it never says that applicants will receive licenses for the places they choose but requires that they apply “for an approved location,” and warns that the city may “terminate[] or eliminate[]” a vendor location. Detroit retains the discretion to deny or suspend licenses to prevent a violation of the rules or to protect public safety. Even a protected property interest would not suffice to defeat Detroit’s decision. Detroit had rational reasons for denying these vendor applications: its interest in preventing congestion on its sidewalks, ensuring sidewalk safety, eliminating blight and litter, and protecting arena operators from competition. A 300-foot buffer zone around arenas is a rational way to advance Detroit’s interest in preventing congestion. View "Williams v. City of Detroit" on Justia Law

The 1985 “Manning Lease” granted the lessee rights to oil and gas on an approximately 100-acre tract of land in Bowling Green that is adjacent to a quarry. There is a long-expired one-year term, followed by a second term that conditions the maintenance of the leasehold interest on the production of oil or gas by the lessee. Bluegrass now owns the property. Believing that lessees were producing an insufficient quantity of oil to justify maintaining the lease, Bluegrass purported to terminate the lease and sought a declaration that the lease had terminated by its own terms while asserting several other related claims.The district court found that Bluegrass’s termination of the lease was improper and granted the lessees summary judgment. The Sixth Circuit reversed and remanded. There is a factual dispute regarding whether the lease terminated by its own terms. The trier of fact must determine if the lessee has produced oil in paying quantities after considering all the evidence. There is a material factual dispute about whether the lessee ceased producing oil for a period of time, and, if so, whether that period of time was unreasonable. View "Bluegrass Materials Co., LLC v. Freeman" on Justia Law

Oakland County took title to the plaintiffs’ homes under the Michigan General Property Tax Act, which (after a redemption period) required the state court to enter a foreclosure judgment that vested “absolute title” to the property in the governmental entity upon payment of the amount of the tax delinquency or “its fair market value.” The entity could then sell it at a public auction. No matter what the sale price, the property’s former owner had no right to any of the proceeds.In February 2018, under the Act, Oakland County foreclosed on Hall’s home to collect a tax delinquency of $22,642; the County then conveyed the property to the City of Southfield for that price. Southfield conveyed the property for $1 to a for-profit entity, the Southfield Neighborhood Revitalization Initiative, which later sold it for $308,000. Other plaintiffs had similar experiences.The plaintiffs brought suit under 42 U.S.C. 1983, citing the Takings Clause of the Fifth Amendment. The Sixth Circuit reversed the dismissal of the suit. The “Michigan statute is not only self-dealing: it is also an aberration from some 300 years of decisions.” The government may not decline to recognize long-established interests in property as a device to take them. The County took the property without just compensation. View "Hall v. Meisner" on Justia Law

Fannie Mae purchases mortgage loans from commercial banks, which enables the lenders to make additional loans, finances those purchases by packaging the mortgage loans into mortgage-backed securities, then sells those securities to investors. In 1968, Fannie Mae became a publicly-traded, stockholder-owned corporation. Freddie Mac also buys mortgage loans and securities and sells those mortgage-backed securities to investors. In 1989, Freddie Mac became a publicly traded, stockholder-owned corporation. In the 2008 recession, both entities suffered precipitous drops in the value of their mortgage portfolios. The Federal Housing Finance Agency (FHFA) was established and authorized to undertake extraordinary measures to resuscitate the companies, 12 U.S.C. 4511(b)(1).Fannie Mae and Freddie Mac shareholders sought to nullify an agreement (the “third amendment”) between FHFA and the Treasury Department that “secured unlimited funding" from Treasury in exchange for "almost all of Fannie’s and Freddie’s future profits.” The third amendment was authorized by FHFA’s Acting Director, who was serving in violation of the Appointments Clause. Shareholders also claimed that they are entitled to retrospective relief because the Supreme Court held in 2021 that FHFA’s enabling statute contained an unconstitutional removal restriction. The district court dismissed the complaint. The Sixth Circuit reversed, holding that the Acting Director was not serving in violation of the Constitution when he signed the third amendment. The court remanded for determination of whether the unconstitutional removal restriction inflicted harm on shareholders. View "Rop v. Federal Housing Finance Agency" on Justia Law