Justia Real Estate & Property Law Opinion Summaries

Barber owns land adjacent to Mill Pond and the Mill Pond Dam (built 1836) in Springfield Township, Michigan. Parts of her property “run directly into the Mill Pond” and include parts of the pond itself. The Township and the County (Defendants) are jointly responsible for maintaining the Dam. In 2018, Oakland County conducted a study. The Township ultimately recommended removing the Dam. Defendants hired engineering firms and allocated money to the project. A local newspaper article titled “Mill Pond Dam to be Removed Next Year,” ran in March 2021. Barber alleges that removing the Dam, among other things, will decrease her property value, interfere with her riparian rights, deprive her of her right to use and enjoy her land, physically damage her property, “will likely pollute, impair and destroy natural resources, including . . . surface water, wetlands, and wildlife and natural habitat,” and “may cause flooding and property damage.” She sought to enjoin the Dam-removal project, alleging that it would constitute a taking under the federal and Michigan constitutions and a trespass under Michigan law.The district court granted the Defendants judgment on the pleadings. The Sixth Circuit reversed, finding Barber’s claims ripe, and that she has standing to sue. She plausibly alleges that she faces a risk of “concrete” and “particularized” injuries. Plaintiffs may sue for injunctive relief even before a physical taking has happened. View "Barber v. Charter Township of Springfield, Michigan" on Justia Law

The Rice family planned to annex their 80-acre farm into the Village of Johnstown and have it zoned for residential development. The Johnstown Planning and Zoning Commission rejected the Rice application at the preliminary stage. The family claimed that Johnstown had unlawfully delegated legislative authority to the Commission, violating its due process rights, and sought declaratory, injunctive, and monetary relief. The district court held that because the farm was not located in Johnstown, but in adjacent Monroe Township, the family lacked standing to bring its claim and granted Johnstown summary judgment.The Sixth Circuit reversed in part. Whatever the merits of the claim, the family has standing to bring it. Because the Johnstown ordinance has since been amended, claims for declaratory and injunctive relief are moot. Only the claim for damages survives. Establishing standing at the summary judgment stage requires “a factual showing of perceptible harm.” The family alleges that because of Johnstown’s unconstitutional delegation to the Commission, its zoning application was subjected to a standardless and conclusive review by allegedly private parties who acted for arbitrary reasons; they have shown a procedural injury. While a procedural right alone is insufficient to create Article III standing, the family’s procedural injury is tied to its economic interest in developing its property. Without the Commission’s approval, their development plans could not proceed; the family is no bystander. View "Rice v. Village of Johnstown, Ohio" on Justia Law

Under 26 U.S.C. 170(h), taxpayers who donate an easement to a land conservation organization may be eligible to claim a charitable deduction on their federal income tax returns if the easement’s conservation purpose is guaranteed to extend in perpetuity. A Department of Treasury rule, 26 C.F.R. 1.170A-14(g)(6), provides that if unforeseen changes to the surrounding land make it “impossible or impractical” for an easement to fulfill its conservation purpose; the conservation purpose may still be protected in perpetuity “if the restrictions are extinguished by judicial proceeding and all of the donee’s proceeds . . . from a subsequent sale or exchange of the property are used by the donee” to further the original conservation purpose. Proceeds are calculated by a formula in 1.170A-14(g)(6)(ii), the “proceeds regulation.”After the IRS denied its charitable deduction, Oakbrook challenged the proceeds regulation, arguing that, in promulgating this rule, Treasury violated the notice-and-comment requirements of the Administrative Procedure Act; that Treasury’s interpretation of section 170(h) is unreasonable; and that the proceeds regulation is arbitrary. The Sixth Circuit affirmed the Tax Court in rejecting those arguments. Oakbrook’s deed to the conservation trust violated the proceeds regulation by ascribing a fixed rather than proportionate value upon judicial extinguishment, and by subtracting from this amount any post-donation improvements that Oakbrook made to the land. View "Oakbrook Land Holdings, LLC v. Commissioner of Internal Revenue" on Justia Law

The Army Corps of Engineers designed a stormwater diversion system for Pond Creek, which drains into a large watershed in the Louisville area. It included Pond Creek’s tributary, Fishpool Creek, and a nearby basin, Vulcan Quarry. The Corps suggested connecting the two through a spillway. The Corps partnered with Metro Sewer District (MSD). MSD filed an eminent domain action. The court awarded MSD only an easement over the quarry and refused to impose water treatment obligations on the easement. MSD’s stream construction permit from the Kentucky Natural Resources and Environmental Protection Cabinet did not require treatment of the water or cleaning up any pollutants.In 2000, the project was completed. South Side bought Vulcan Quarry in 2012 and claimed that MSD had exceeded its easement by diverting all of Fishpool Creek. In 2018, South Side sent MSD notice of its intent to sue for violations of the Clean Water Act’s (CWA) “prohibition on the dumping of pollutants into U.S. waters,” the easement, and Kentucky-issued permits. The district court dismissed certain claims as time-barred and others because the notice failed to identify sewage as a pollutant, provide dates the pollution took place, and describe the source of the pollution.The Sixth Circuit affirmed. MSD did not need a CWA discharge permit when it built the spillway and does not need one now. The waters of Fishpool Creek and Vulcan Quarry are not meaningfully distinct; the spillway is the kind of water transfer that is exempt from the permitting process. View "South Side Quarry, LLC v. Louisville & Jefferson County Metropolitan Sewer District" on Justia Law

Canton’s 2006 Tree Ordinance prohibits the unpermitted removal, damage, or destruction of trees of specified sizes, with exceptions for agricultural operations, commercial nurseries, tree farms, and occupied lots smaller than two acres. If Canton issues a permit, the owner must replace removed trees on its own or someone else’s property or pay into Canton’s tree fund. For every landmark tree removed, an owner must replant three trees or pay $450. For every non-landmark tree removed as part of larger-scale tree removal, an owner must replant one tree or pay $300.In 2016, Canton approved the division of F.P.'s undeveloped property, noting the permitting requirement. The parcels were bisected by a county drainage ditch that was clogged with fallen trees and debris. The county refused to clear the ditch. F.P. contracted for the removal of the trees and debris and clearing other trees without a permit. Canton determined that F.P. had removed 14 landmark trees and 145 non-landmark trees. F.P. was required to either replant 187 trees or pay $47,898. F.P. filed suit under 42 U.S.C. 1983.The Sixth Circuit affirmed summary judgment for F.P. on its as-applied Fifth Amendment claim; although the ordinance, as applied to F.P., was not unconstitutional as a per se physical taking, it was unconstitutional as a regulatory taking and as an unconstitutional condition. Canton has not made the necessary individualized determination; the ordinance fails the “rough proportionality” required by Supreme Court precedent. View "F.P. Development, LLC. v. Charter Township of Canton" on Justia Law

Golf Village owns, maintains, and administers a 900-acre planned community in Powell, including one of 11 separate lots in a commercial development. A 2003 “Declaration of Private Roads” refers to the use of private roads by each commercial lot owner, its employees, customers, and invitees. In 2010, one lot was transferred to the city for a municipal park. In 2018, the City began using three streets without Golf Village’s permission, removed a curb, and built a construction entrance. Golf Village sued (42 U.S.C. 1983), claiming that Powell has taken its property without just compensation or due process.The Sixth Circuit affirmed the dismissal of the suit. Golf Village did not establish the loss of its right to exclude; it could terminate the alleged taking by building a gate at the private street's entrance to ensure that everyone who drives on those streets is an invited guest. Under Golf Village’s analysis, any time the government took an action that made a property owner’s property more popular, regardless of what actions the property owner could take, there would be a taking. Any increased traffic, which may lead to additional maintenance costs, is merely a government action outside the owner’s property that causes consequential damages within. There are no material allegations that Golf Village cannot use and enjoy the private roads to the extent that it did before the City’s actions. View "Golf Village North, LLC v. City of Powell" on Justia Law

For more than 50 years, the Trust has owned contiguous parcels on Garfield Road, Mentor, Ohio, comprising 16.15 acres near the terminus of Norton Parkway, a road completed in 2006 that connects Garfield Road to Center Street, which connects to I-90 via an interchange completed in 2005. According to the Trust, the interchange “has dramatically changed the character of the area" from rural residential to mixed-use, with industrial, office, commercial, medical, senior living and various residential uses. The Trust sought rezoning from “Single Family R-4” to “Village Green – RVG,” hoping to develop 40 single-family residences with five acres of open space. Without the rezoning, the Trust could develop 13 single-family residences. According to the Trust, its Echo Hill Subdivision plan is materially identical to a plan that the city approved for rezoning in 2017, the “Woodlands.” The Planning Commission recommended denial; the City Council adopted that recommendation. According to the Trust, this is the first time that the city has denied an application for rezoning to RVG since 2004.The Sixth Circuit reinstated certain claims. The Trust’s ownership of 16 acres is a sufficient property interest to support its takings claim. The Trust does not need to plead facts negating every possible explanation for the differential treatment between the Trust’s property and the Woodlands for its class-of-one equal-protection claim to survive a motion for judgment on the pleadings. View "Andrews v. City of Mentor" on Justia Law

RLR owns land on the Little Pigeon River. Tract 1 had a private resort and parking spaces. Tract 2 had a duplex building. The city decided to build a pedestrian walkway along the River, going through both tracts, and filed a petition for condemnation of a permanent easement. The easement would make some of the parking spaces on Tract 1 unusable. The petition also sought temporary construction easements, including one on which the city would construct Tract 2 parking spaces to replace those lost on Tract 1. RLR argued that the compensation for the loss of the spaces was too low and that the plan of building parking spaces on Tract 2 was a private, rather than public, purpose. The court ruled in favor of the city, which took possession of the land and built the walkway, but never built the parking spots. Before valuation proceedings, RLR filed suit in federal court, alleging an unlawful taking under the Fifth and Fourteenth Amendments and 42 U.S.C. 1983. The district court held that it lacked subject-matter jurisdiction under the Rooker-Feldman doctrine because the source of RLR’s injury was the state court’s order. The Sixth Circuit affirmed, rejecting an argument that the Supreme Court’s 2005 Exxon decision abrogated Sixth Circuit precedent applying Rooker-Feldman to interlocutory orders. The state-court order of possession counts as a judgment under Rooker-Feldman. View "RLR Investments, LLC v. City of Pigeon Forge" on Justia Law

In 1998, Old Ben Coal Company conveyed its rights to the methane gas in various coal reserves to Illinois Methane. A “Delay Rental Obligation” required the owner of the coal estate to pay Methane rent while it mined coal in areas that Methane had not yet exploited. A deed, including the Delay Rental Obligation was recorded. A few years later, Old Ben filed for bankruptcy and purported to sell its coal interests “free and clear of any and all Encumbrances” to Alliance. Old Ben did not notify Methane before the bankruptcy sale but merely circulated notice by publication in several newspapers. Alliance later sought a permit to mine coal. Methane eventually sought to collect rent in Illinois state court. Alliance argued that Old Ben’s “free and clear” sale had extinguished Methane’s interest.The bankruptcy court held that Alliance was not entitled to an injunction. The district court and Sixth Circuit affirmed. The deed indicates that the Delay Rental Obligation runs with the land and binds successors; it “is not simply a personal financial obligation between” Old Ben and Methane. The covenant directly affects the value of the coal and methane estates. Methane was a known party with a known, present, and vested interest in real property, entitled to more than publication notice. View "Alliance WOR Properties, LLC v. Illinois Methane, LLC" on Justia Law

The Benalcazars purchased 43 acres in Genoa Township in 2001. The property sits at the northern end of the Township’s more developed areas and abuts the Hoover Reservoir. The parcel was zoned as Rural Residential; development would have required separate septic systems, clear-cutting, and multiple driveways. In 2018, the Benalcazars obtained rezoning of the property to a Planned Residential District, which permits higher density development. Township residents approved a referendum that prevented the amendment from taking effect, O.R.C. 519.12(H).The Benalcazars sued. In a settlement, the Township agreed to change the zoning designation; the Benalcazars agreed to reduce the proposed development from 64 homes to 56 homes, to provide more open space, and to increase the width of some lots. O.R.C. 505.07 provides “Notwithstanding . . . any vote of the electors on a petition for zoning referendum … a township may settle any court action by a consent decree or court-approved settlement agreement which may include an agreement to rezone.” The district court permitted objectors to intervene, dismissed the Benalcazars’ due process claims, but ruled that the Benalcazars stated a plausible equal protection claim, and approved the consent decree. The Sixth Circuit affirmed. The Benalcazars’ due process and equal protection claims are not “frivolous” but “arguable.” The district court had subject-matter jurisdiction and had the authority to approve a settlement. No other merits inquiry was required. View "Benalcazar v. Genoa Township" on Justia Law