Justia Real Estate & Property Law Opinion Summaries

Before the 2007-2008 financial crisis, Woodcrest Homes was poised to construct a new development. Woodcrest secured only a small parcel, "Parcel C" which was stuck between two larger parcels that were necessary for completion of the project. Over a decade after the failed development, a special metropolitan district controlled by a competitor, Century Communities, sought to condemn Parcel C and finish what Woodcrest started. Woodcrest objected, claiming the entire condemnation proceeding was really a sham designed to benefit Century. Woodcrest contended the condemnation violated both the public use protections of the Colorado Constitution and the statutory prohibition on economic development takings. According to Woodcrest, the purpose of the taking, at the time it occurred, was to satisfy contractual obligations between Century and the Town of Parker. Because the public would not be the beneficiary at the time of the taking, Woodcrest contends that this condemnation violated the Colorado Constitution. Moreover, it argued, the taking effectively transfers the condemned land to Century, which violated section 38-1-101(1)(b)(I), C.R.S. (2018), the state’s anti-economic development takings statute. The Colorado Supreme Court disagreed, finding that condemnation of Parcel C would benefit the public. And the Court found Colorado’s prohibition on economic development takings had no bearing on the condemnation at issue here: the plain language of section 38-1-101(1)(b)(I) prevented public entities from transferring condemned land to private entities. "But there was no transfer, and the only entity involved was a public one, the special district." View "Carousel Farms v. Woodcrest Homes" on Justia Law

The City of Lewes and its Historic Preservation Commission approved Ernest and Deborah Nepa’s plans to renovate a house in the historic district. The Nepas violated the conditions of the approvals by building a two story addition on the back of the house and increasing its already nonconforming setbacks from neighboring properties. After the City discovered the violations and issued a stop work order, the Nepas applied to the City’s board of adjustment for three area variances to complete the unauthorized addition; the board turned them down. The Nepas appealed the variance denials to the Superior Court, arguing that the City Code provision used by the board to evaluate their variance applications conflicted with a more lenient state law addressing municipal variances. The Superior Court agreed and reversed the board’s decision. On appeal, the City argued the Superior Court erred because the state statute relied on, 22 Del. C. 327(a)(3), only prohibited the City from loosening the state law requirements for granting a variance. The City was thus free to require stricter standards. The Delaware Supreme Court agreed with the City and reversed the Superior Court’s decision. “As long as the variance standards applied by the City of Lewes’ board of adjustment meet the minimum state statutory standards, nothing in the state statute prohibits the City, through its board of adjustment, from applying variance standards stricter than those set by the State.” View "City of Lewes & The Board of Adjustment v. Nepa" on Justia Law

The Town of Lincoln, New Hampshire, appealed a Water Court order upholding a decision by the Department of Environmental Services (DES) ordering the town to repair the Pemigewasset River Levee. The Water Counsel determined the Town owned the levee pursuant to RSA 482:11-a(2013), and therefore was obligated to maintain and repair the levee. In support of its position, DES contends that, in the Assurance, the Town “agreed to take responsibility for the [l]evee’s ongoing maintenance and repair.”1 However, the fact that the Town undertook certain maintenance obligations in the Assurance does not mean that the additional obligations of “ownership” under RSA 482:11-a can or should be imposed upon the Town. The New Hampshire Supreme Court determined that the Water Council’s conclusion the Town “owned” the levee under RSA 482:11-a was dependent on flawed reasoning that Appeal of Michele, 168 N.H. 98 (2015) controlled the outcome of this case. The Supreme Court concluded the Town met its burden to show the Water Council was unreasonable. The Court did not decide the precise degree of ownership that made a person or entity an “owner” for the purposes of RSA 482:11-a, it held that the limited access easement held by the Town in this case fell short of that threshold. Because the Court’s holding on this issue was dispositive of this case, it declined to address the parties’ other arguments. View "Appeal of Town of Lincoln" on Justia Law

In this municipal-annexation case, the Supreme Court affirmed the judgment of the trial court against the Town of Brownsburg, holding that a trial court hearing a remonstrance proceeding on judicial review must consider the evidence submitted by both the municipality and the remonstrators.In 2013, the Town adopted an ordinance to annex 4,462 acres of property adjacent to the Town. A group of affected landowners acting through a political action committee remonstrated, seeking a declaration that the Town did not meet the statutory annexation requirements. The trial court entered judgment for the Remonstrators and against the Town, determining that the Town had not met all statutory requirements for annexing the proposed territory. The Supreme Court affirmed, holding (1) on appellate review, the reviewing court asks not whether the record supports the municipality's decision to enact the annexation ordinance but whether it supports the trial court's decision to uphold or reject the annexation; (2) a trial court assessing the legality of a disputed annexation must equally weigh and balance the evidence submitted by both sides; and (3) the trial court did not satisfy its threshold burden to prove it met the requirements of either Ind. Code 36-4-3-13(b) or (c). View "Town of Brownsburg, Indiana v. Fight Against Brownsburg Annexation" on Justia Law

The Supreme Judicial Court affirmed the judgment of the superior court dismissing Appellants' claim for a declaratory judgment in this zoning dispute, holding that the superior court did not err in dismissing the claim as duplicative of Appellants' appeal from a municipal action that was included in the same complaint.Appellants owned a parcel of land that abutted a parcel owned by Landowners. After the zoning board of appeals (ZBA) approved Landowners' application for permission to raze an existing house located on their property and to build a new one Appellants filed a complaint against the Town of Cape Elizabeth and Landowners, asserting, inter alia, a request for judicial review of the ZBA's approval of Appellants' application pursuant to Me. R. Civ. P. 80B and an independent claim for a declaratory judgment that section 19-6-11(E)(2) of the Cape Elizabeth Zoning Ordinance is preempted by the state's Mandatory Shoreland Zoning Act, Me. Rev. Stat. 38, 439-A(4)(C)(1). The superior court dismissed the declaratory judgment claim as duplicative of the Rule 80B appeal. The Supreme Judicial Court affirmed, holding that because Appellants' claim for declaratory relief was not independent from its Rule 80B, the superior court's dismissal of the declaratory judgment claim as duplicative was not an abuse of discretion. View "Cape Shore House Owners Ass'n v. Town of Cape Elizabeth" on Justia Law

In 2013, a small business jet crashed into a Georgia Power Company transmission pole on Milliken & Company’s property near the Thomson-McDuffie Regional Airport in Thomson, Georgia. The two pilots were injured and the five passengers died. In the wake of the crash, the pilots and the families of the deceased passengers filed a total of seven lawsuits against multiple defendants, including Georgia Power and Milliken. The complaints in those seven suits alleged that a transmission pole located on Milliken’s property was negligently erected and maintained within the airport’s protected airspace. The record evidence showed Georgia Power constructed the transmission pole on Milliken’s property for the purpose of providing electricity to Milliken’s manufacturing-plant expansion, and that the pole was constructed pursuant to a 1989 Easement between Georgia Power and Milliken. In each of the seven suits, Milliken filed identical cross-claims against Georgia Power, alleging that Georgia Power was contractually obligated to indemnify Milliken “for all sums that Plaintiffs may recover from Milliken” under Paragraph 12 of the Easement. Georgia Power moved for summary judgment on the crossclaims, which were granted. The trial court reasoned Paragraph 12 of the Easement operated as a covenant not to sue, rather than as an indemnity agreement, because it “nowhere contains the word ‘indemnity’” and “it is not so comprehensive regarding protection from liability.” The Court of Appeals affirmed summary judgment to six cases. Rather than adopt the trial court’s reasoning, the appellate court held that the provision was an indemnity agreement and affirmed the trial court by applying Georgia’s anti-indemnity statute, OCGA 13-8-2 (b), to determine that Paragraph 12 of the Easement was “void as against public policy,” a theory argued before the trial court but argued or briefed before the Court of Appeals. The Georgia Supreme Court determined the Court of Appeals erred in its construction and application of OCGA 13-8-2(b), vacated the judgment and remanded for the lower court to consider whether, in the first instance, the trial court’s rationale for granting Georgia Power’s motions for summary judgment and any other arguments properly before the Court of Appeals. View "Milliken & Co. v. Georgia Power Co." on Justia Law

The Lamar County Mississippi School District denied a request by Smith Petroleum to erect and construct an LED advertising billboard on its Sixteenth Section leasehold located on Old Highway 11 in Hattiesburg. Smith Petroleum filed its Notice of Appeal and Bill of Exceptions with the Chancery Court of Lamar County. The chancellor affirmed the School District’s denial of Smith Petroleum’s request to erect and construct the LED billboard. Finding no error, the Mississippi Supreme Court affirmed the chancery court. View "Smith Petroleum, Inc. v. Lamar County School District" on Justia Law

A public utility filed a condemnation action seeking the land use rights necessary to construct a natural gas storage facility in an underground formation of porous rock. The utility held some rights already by assignment from an oil and gas lessee. The superior court held that because of the oil and gas lease, the utility owned the rights to whatever producible gas remained in the underground formation and did not have to compensate the landowner for its use of the gas to help pressurize the storage facility. The court held a bench trial to determine the value of the storage space. The landowner appealed the resulting compensation award, arguing it retained ownership of the producible gas in place because the oil and gas lease authorized only production, not storage. It also argued it had the right to compensation for gas that was discovered after the date of taking. The landowner also challenged several findings related to the court’s valuation of the storage rights: that the proper basis of valuation was the storage facility’s maximum physical capacity rather than the capacity allowed by its permits; that the valuation should not have included buffer area at the same rate as area used for storage; and that an expert’s valuation methodology, which the superior court accepted, was flawed. The Alaska Supreme Court concluded the superior court did not err in ruling that the landowner’s only rights in the gas were reversionary rights that were unaffected by the utility’s non-consumptive use of the gas during the pendency of the lease. Furthermore, the Court concluded the trial court did not clearly err with regard to findings about valuation. View "Kenai Landing, Inc. v Cook Inlet Natural Gas Storage, et al." on Justia Law

The Alaska Department of Transportation and Public Facilities (DOT or the State) condemned a strip of property along the Parks Highway. DOT filed a declaration of taking, allowing it to take title immediately, and deposited approximately $15,000 in court as estimated compensation for the taking. The landowner challenged DOT’s estimate and was eventually awarded approximately $24,000, as well as attorney’s fees and costs. Pursuant to AS 09.55.440, the superior court awarded prejudgment interest to the landowner on the difference between the amount of DOT’s initial deposit and the amount the property was ultimately determined to be worth. The landowner appealed, arguing that the prejudgment interest should have been calculated on the difference between the deposit and his entire judgment, including significant amounts for attorney’s fees and appraisal costs. The Alaska Supreme Court concluded the landowner’s argument was not supported by the statutory language, legislative history, or policy. Furthermore, the Court rejected the landowner’s arguments that the superior court applied the wrong postjudgment interest rate and abused its discretion by denying discovery of the State’s attorneys’ billing records. The trial court failed to state its reasons for excluding attorney time from its attorney's fees award, and therefore vacated that award and remanded for reconsideration only of the fees award. View "Keeton v. Alaska, Department of Transportation and Public Facilities" on Justia Law

In 2013 and 2014 attorney Gerald Markham applied for a senior citizen tax exemption on his residential property in Kodiak, Alaska. The Borough assessor denied the applications due to Markham’s prolonged absences from Alaska. When given the opportunity to prove his absences were allowed under the applicable ordinance, Markham refused to provide corroborating documentation. He appealed the denials to the Borough Board of Equalization, which affirmed the denials. He appealed the Board’s decisions to the superior court. The superior court dismissed the 2013 appeal for failure to prosecute, denied the 2014 appeal on the merits, and awarded attorney’s fees to the Borough. Markham appealed. The Alaska Supreme Court affirmed the superior court’s 2013 dismissal and the Board’s 2014 denial on the merits, but vacated the superior court’s award of attorney’s fees and remanded for further findings. View "Markham v. Kodiak Island Borough Board of Equalization" on Justia Law