Justia Real Estate & Property Law Opinion Summaries

Plaintiffs, E&I Global Energy Services, Inc. and E&C Global, LLC, sued Liberty Mutual Insurance Company for breach of contract and tort claims related to a construction project. The United States, through the Western Area Power Administration (WAPA), contracted with Isolux to build a substation, and Liberty issued performance and payment bonds for Isolux. After Isolux was terminated, Liberty hired E&C as the completion contractor, but E&I performed the work. Plaintiffs claimed Liberty failed to pay for the work completed.The United States District Court for the District of South Dakota granted summary judgment for Liberty on the unjust enrichment claim and ruled in Liberty's favor on all other claims after a bench trial. The court denied Plaintiffs' untimely request for a jury trial, excluded an expert witness report filed after the deadline, found no evidence of an assignment of rights between E&C and E&I, and ruled against Plaintiffs on their fraud, deceit, and negligent misrepresentation claims.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court held that the district court did not abuse its discretion in denying the jury trial request, as Plaintiffs failed to timely file the motion and did not justify the delay. The exclusion of the expert report was also upheld, as the district court properly applied the relevant factors and found the late report was neither substantially justified nor harmless. The court affirmed the district court's finding that there was no valid assignment of rights from E&C to E&I, meaning Liberty's promise to pay was to E&C, not E&I. The court also upheld the findings that Liberty did not have the intent to deceive or induce reliance, and that Bruce did not reasonably rely on Mattingly's statements. Finally, the court declined to address the unjust enrichment claim as Plaintiffs did not raise the argument below. The Eighth Circuit affirmed the district court's rulings in their entirety. View "E&I Global Energy Services v. Liberty Mutual Insurance Co." on Justia Law

A county board of supervisors approved a nonprofit entity’s application to rezone a parcel of land in rural Polk County. Another nonprofit entity and several nearby landowners filed a lawsuit challenging the rezoning decision. The plaintiffs argued that the rezoning violated the county’s comprehensive land use plan, zoning ordinances, and constituted illegal spot zoning. The board of supervisors moved to dismiss the lawsuit, claiming the plaintiffs lacked standing and were subject to heightened pleading requirements under Iowa’s Municipal Tort Claims Act.The Iowa District Court for Polk County granted the motion to dismiss, concluding that the plaintiffs failed to establish standing and were subject to the Act’s heightened pleading requirements. The court found that the individual plaintiffs did not adequately allege their proximity to the rezoned property or their personal concerns, and that the nonprofit organization did not sufficiently allege that its members had a specific and personal interest in the rezoning. The court also ruled that the plaintiffs could not amend their petition due to the Act’s requirements.The Iowa Supreme Court reviewed the case and reversed the district court’s decision. The Supreme Court held that the heightened pleading requirements and penalties under Iowa Code § 670.4A(3) did not apply because the plaintiffs were not seeking monetary damages. The court found that the individual plaintiffs had sufficiently alleged standing based on their proximity to the rezoned property and the nature of the proposed changes. However, the court concluded that the nonprofit organization had not established standing but should be allowed to amend its petition. The case was remanded for further proceedings. View "1000 Friends of Iowa v. Polk County Board of Supervisors" on Justia Law

Sara Pearl Fahrmann filed a complaint against the City of Orange Beach and D.R. Horton, Inc., alleging that the City failed to ensure that Horton's construction of the Cypress Village subdivision complied with the City's zoning ordinance and the approved Planned Unit Development (PUD). Fahrmann claimed that this failure led to inadequate parking, which obstructed emergency services and delayed treatment for her husband, resulting in his death. She asserted wrongful-death claims based on wantonness and negligence.The Baldwin Circuit Court denied the City's motion for summary judgment, which argued that the City was entitled to substantive immunity from Fahrmann's claims. The City then petitioned the Supreme Court of Alabama for a writ of mandamus to direct the circuit court to grant its motion for summary judgment.The Supreme Court of Alabama reviewed the case and held that the City was immune from Fahrmann's wrongful-death claim alleging wantonness under § 11-47-190, Ala. Code 1975, which limits municipal liability to injuries caused by neglect, carelessness, or unskillfulness, and does not include wanton conduct. The Court also held that the City was entitled to substantive immunity from the negligence claim, as the City's failure to enforce its zoning ordinance did not create a legal duty to individual plaintiffs. The Court granted the City's petition and issued a writ of mandamus directing the circuit court to grant summary judgment in favor of the City. View "Ex parte City of Orange Beach" on Justia Law

A property owner applied for a conditional use permit to build a commercial hog facility on its land in rural Cherry County, Nebraska. The facility was intended to provide manure for fertilizing the owner's crops. Neighboring landowners objected to the issuance of the permit, arguing that the owner, not being the operator of the facility, could not establish compliance with zoning regulations regarding odor mitigation and water contamination.The Cherry County Board of Commissioners issued the permit, and the neighboring landowners appealed to the district court, seeking a trial de novo. The district court held a trial and determined that the owner's application complied with the relevant zoning regulations, affirming the issuance of the permit. The neighboring landowners then appealed to the Nebraska Supreme Court, while the Board cross-appealed, arguing that the district court lacked jurisdiction over the neighboring landowners' appeal.The Nebraska Supreme Court found that the district court had jurisdiction over the appeal, as the relevant statutes did not limit the right to appeal to applicants only. The court also concluded that the district court did not err in finding that the property owner demonstrated compliance with the zoning regulations. The court held that the property owner, not the operator, was responsible for showing compliance with the regulations and that the odor and water contamination mitigation plans submitted by the owner were sufficient. The court affirmed the district court's decision to uphold the issuance of the conditional use permit. View "Amorak v. Cherry Cty. Bd. of Comrs." on Justia Law

Allan Gumarang entered into a lease agreement with Braemer on Raymond, LLC (Lessor) to operate an ice cream parlor. The lease included provisions requiring the Lessor to maintain the property and for Gumarang to obtain liability insurance and indemnify the Lessor against claims arising from his use of the property. In October 2017, a fire destroyed the property, and Gumarang alleged that the Lessor and its management (Management) failed to ensure the property had adequate fire prevention systems.Gumarang filed a lawsuit against the Lessor and Management for breach of contract, negligence, and other claims. In response, the Lessor and Management demanded that Gumarang defend and indemnify them under the lease terms. When Gumarang refused, they filed a cross-complaint for indemnity and breach of contract. Gumarang filed an anti-SLAPP motion to strike the cross-complaint, arguing it arose from his protected activity of filing the lawsuit.The Superior Court of Los Angeles County granted Gumarang’s anti-SLAPP motion in part, striking the cross-claims for comparative indemnity and equitable indemnity but denied it for the contractual indemnity and breach of contract claims. The court found that the latter claims did not arise from protected activity and that the indemnity provision in the lease was enforceable. The court also denied Gumarang’s request for attorney fees, finding he did not achieve a practical benefit from the partial success of his anti-SLAPP motion.The California Court of Appeal, Second Appellate District, affirmed the lower court’s decisions. The appellate court agreed that the cross-claims for contractual indemnity and breach of contract did not arise from Gumarang’s protected activity of filing the lawsuit but from his alleged breach of the lease’s indemnity provision. The court also upheld the denial of attorney fees, concluding that Gumarang did not obtain a significant practical benefit from the partial success of his anti-SLAPP motion. View "Gumarang v. Braemer on Raymond, LLC" on Justia Law

Musselshell Ditch Company (MDC) owns and operates the Musselshell Ditch canal system. JD Bar D, LLC, along with its shareholders James D. Harris and Jody Wacker, own a ranch in Musselshell County, Montana, which is crossed by the Ditch. An easement granted in 2005 allows MDC exclusive use of the Ditch for operation and maintenance. Between 2014 and 2017, JD Bar D received permission from MDC for several projects impacting the Ditch. However, from 2017 to 2019, JD Bar D installed additional structures, including a wooden bridge, cement pump box, water pump, electrical conduit, and buried pipeline, without MDC’s permission. MDC opposed these installations, but JD Bar D refused to remove them.The Fourteenth Judicial District Court of Montana found that JD Bar D’s installations unreasonably interfered with MDC’s easement rights, violating § 70-17-112, MCA. The court ordered JD Bar D to remove the structures and awarded MDC approximately $40,000 in attorneys’ fees. JD Bar D appealed, arguing that the District Court failed to balance their water and property rights with MDC’s easement rights and improperly relied on the absence of permission in determining the reasonableness of the structures.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court’s decision. The court held that JD Bar D’s installations created permanent, hazardous, and inconvenient encroachments within the Ditch, unreasonably interfering with MDC’s easement rights. The court also noted that forcing MDC to defend its easement rights in court constituted unreasonable interference. The Supreme Court concluded that the District Court’s findings were supported by substantial credible evidence and that the award of attorneys’ fees to MDC was appropriate under § 70-17-112(5), MCA. View "Musselshell Ditch Co. v. JD BAR D, LLC" on Justia Law

Tyler Ross, a manager and co-CEO of ROCO Real Estate LLC and ROCO Management LLC, pleaded guilty to one count of conspiracy to commit an offense against the United States. Ross was involved in a scheme to provide mortgage lenders with inflated income information about properties owned by his real-estate-investment firm. The scheme involved submitting false financial documents to mortgage lending businesses to make underperforming properties appear more profitable than they were, thereby obtaining favorable mortgage valuations and refinancing terms.The United States District Court for the Eastern District of Michigan applied a sentencing enhancement for defendants who derived more than $1,000,000 in gross receipts from one or more financial institutions as a result of their offense. The district court found that Ross's conduct met the enhancement's requirements, as he received over $2 million from a property sale financed by a loan from JPMorgan Chase Bank, which relied on falsified financial documents provided by Ross. The district court sentenced Ross to 12 months and one day of imprisonment, granting a downward variance from the guideline range of 46-57 months.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's judgment. The court held that the gross-receipts enhancement was correctly applied because Ross's offense targeted financial institutions, and he derived gross receipts from a financial institution as a result of his offense. The court rejected Ross's arguments that the enhancement should only apply when a defendant causes loss to a financial institution and that his receipts were derived from a real-estate firm rather than a financial institution. The court emphasized that the enhancement applies to gross receipts obtained directly or indirectly from a financial institution as a result of the offense. View "United States v. Ross" on Justia Law

Jose and Kirstin Aroca executed a "Note Secured by Deed of Trust" in 2007, agreeing to pay Tang Investment Company $40,000, secured by real property in Pinal County. They made interest-only payments for one year and then stopped. Tang did not initiate foreclosure or any action to enforce the debt, which remains unpaid. In 2022, the Arocas filed a suit to quiet title, claiming the Deed of Trust was invalid as the statute of limitations on the Note had expired.The Superior Court in Pinal County dismissed the Arocas' complaint, agreeing with Tang that under A.R.S. § 33-714, the Deed of Trust lien was valid until 2057. The court of appeals reversed, holding that A.R.S. § 33-714 did not extend the statute of limitations for foreclosure, which was governed by A.R.S. § 33-816 and A.R.S. § 12-548(A)(1), setting a six-year limit. The court concluded that Tang could not foreclose or initiate a trustee’s sale after 2018 and that the Arocas were entitled to quiet title under A.R.S. § 12-1104(B).The Supreme Court of Arizona reviewed the case and held that the equitable principles from Provident Mut. Bldg.-Loan Ass’n v. Schwertner do not override the statutory rights established in A.R.S. § 12-1104(B). The court determined that an action to quiet title can proceed even if the underlying debt remains unpaid, provided the statute of limitations for enforcing the debt has expired. The court reversed the Superior Court's judgment and remanded for entry of judgment in favor of the Arocas, affirming their right to quiet title. The court also vacated parts of the court of appeals' opinion but left the attorney fees award intact. Tang's request for attorney fees and costs was denied. View "AROCA v TANG INVESTMENT" on Justia Law

The case involves BAK Realty, LLC, and Crossing Over, Inc., which operate a sober house in a three-family dwelling in Fitchburg, Massachusetts. The sober house, located in a residential B (RB) district, houses thirteen unrelated individuals recovering from addiction. The City of Fitchburg's zoning ordinances classify the sober house as a boarding house, a use not permitted in the RB district. The plaintiffs argue that the city's zoning ordinances violate the anti-disability discrimination provision of the Zoning Act, G. L. c. 40A, § 3, fourth par., which they interpret as requiring the city to treat the sober house residents as a "family" under local zoning laws.The Superior Court judge granted partial summary judgment in favor of the plaintiffs, annulling the decision of the Fitchburg Zoning Board of Appeals (board). The judge concluded that G. L. c. 40A, § 3, required the city to treat the sober house residents the same as a family or any similar-sized group of unrelated persons, whichever is more favorable. The judge ruled that the city's zoning ordinances could not be enforced against the sober house residents.The Supreme Judicial Court of Massachusetts reviewed the case and disagreed with the Superior Court's interpretation. The court held that G. L. c. 40A, § 3, fourth par., does not preempt municipalities from defining "family" for zoning purposes. The statute requires that disabled persons in congregate living arrangements be treated the same as either families or similar-sized groups of unrelated persons, but not necessarily both. The court found that the residents of the sober house did not meet the local definition of "family" and were treated the same as any similar group of thirteen unrelated people living together. Therefore, the court reversed the judgment of the Superior Court, upholding the board's decision that the sober house was operating as a boarding house, a use not permitted in the RB district. View "BAK Realty, LLC v. City of Fitchburg" on Justia Law

Plaintiffs Francisco Lorenzo and Angelina Nicolas sued Core/Related Grand Avenue Owner, LLC, Tishman Construction Corporation of California, and Calex Engineering, Inc. for wrongful death after their daughters were killed by a dump truck driven by Stanley Randle, an employee of a subcontractor. The truck was traveling from an unpermitted off-site staging area to a construction project in downtown Los Angeles. Plaintiffs argued that the defendants' decision to use an unpermitted staging area was negligent and led to the accident.The Superior Court of Los Angeles County granted summary judgment in favor of the defendants, concluding that they did not owe a duty of care to the decedents. The court found that the defendants' actions were not the proximate cause of the accident and that the defendants did not have a duty to ensure the safety of the decedents under the circumstances.The California Court of Appeal, Second Appellate District, Division One, reversed the lower court's decision. The appellate court held that the defendants did owe a duty of care to the decedents. The court reasoned that Civil Code section 1714 establishes a general duty to exercise reasonable care for the safety of others, and the defendants' decision to establish an unpermitted staging area foreseeably created a risk of harm. The court also found that the Rowland factors did not justify an exception to this duty. The court further rejected the defendants' argument that their conduct did not proximately cause the accident, concluding that there were triable issues of fact regarding causation. The judgment was reversed, and the case was remanded for further proceedings. View "Lorenzo v. Calex Engineering, Inc." on Justia Law