Justia Real Estate & Property Law Opinion Summaries

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

Faytima Howard failed to pay her property taxes, leading Macomb County, Michigan, to seize and sell her property in 2023. Howard sued, claiming the county violated the Takings Clause of the Fifth Amendment by keeping proceeds exceeding her tax debt. Previously, Michigan's foreclosure regime was found unconstitutional for not compensating property owners for the surplus from foreclosure sales. However, Michigan amended its law in 2020 to allow property owners to claim any surplus value from foreclosed properties. Howard did not utilize this process.The United States District Court for the Eastern District of Michigan dismissed Howard's complaint for failure to state a claim. The court noted that Michigan's amended law provided a procedure for property owners to claim surplus proceeds, which Howard did not follow. The district court concluded that because Howard did not take advantage of the process, her claim was invalid.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The court held that Michigan's procedure for claiming surplus proceeds from foreclosure sales complies with the Takings Clause, as it provides property owners with a reasonable opportunity to claim any surplus. The court distinguished this case from others where no such process was available, emphasizing that Howard's failure to follow the state procedure meant no taking occurred. The court also rejected Howard's arguments that the process was overly burdensome and that the lack of interest and attorney's fees constituted a taking. The court concluded that Michigan's procedures are constitutionally sound and do not violate the Fifth Amendment. View "Howard v. Macomb Cnty., Mich." on Justia Law

Plaintiffs, a nonprofit corporation and its founder, applied for a special use permit to conduct church activities on agricultural land they purchased in Maui. The Maui Planning Commission denied their application, citing concerns about traffic, safety, and environmental impacts. Plaintiffs continued using the land for non-agricultural purposes without permits, leading to fines. They applied again, addressing some concerns, but the Commission denied the second application as well.The plaintiffs sued the County of Maui and the Commission, alleging violations of the Religious Land Use and Institutionalized Persons Act (RLUIPA) and other constitutional claims. The United States District Court for the District of Hawaii granted summary judgment to the County on most claims, except for the RLUIPA equal-terms claim, which went to trial. An advisory jury found for the County, and the district court entered judgment accordingly. Plaintiffs appealed, and the Ninth Circuit reversed the summary judgment, remanding the case for further proceedings.On remand, the district court severed an unconstitutional provision from the zoning law and proceeded to trial on the remaining claims. The jury found for the County on all counts. Plaintiffs appealed again, arguing that the substantial-burden inquiry under RLUIPA should have been decided by the court, not the jury.The United States Court of Appeals for the Ninth Circuit held that the substantial-burden inquiry under RLUIPA is a question of law for the court to decide. Although the district court erred in submitting this question to the jury, the error was deemed harmless because the jury's verdict was consistent with the required legal outcome. The Ninth Circuit affirmed the district court's judgment in favor of the County of Maui. View "SPIRIT OF ALOHA TEMPLE V. COUNTY OF MAUI" on Justia Law

Casey Hoff applied for a building permit from the City of Burlington to add an addition to his home, which is located within the city's floodplain. Hoff, an experienced contractor, provided appraisals and plans to the city officials, who approved the permit based on the information provided. However, after Hoff began construction, it was later determined that the remodel constituted a "substantial improvement" under the city's floodplain ordinances, requiring additional compliance measures. The city subsequently refused to issue a certificate of occupancy, leading Hoff to sue the city.The District Court of Ward County held a bench trial and denied Hoff's claims for a writ of mandamus, declaratory judgment, injunction, and inverse condemnation. The court found that Hoff did not comply with the city's floodplain ordinances and that the remodel was a substantial improvement. The court also granted summary judgment dismissing Hoff's negligence claim, concluding that the city was immune under N.D.C.C. § 32-12.1-03.The North Dakota Supreme Court affirmed the district court's decision. The court held that Hoff did not establish a clear legal right to a certificate of occupancy, as he did not comply with the city's ordinances. The court also found no abuse of discretion in denying Hoff's declaratory judgment and injunction claims. Additionally, the court concluded that Hoff failed to establish a "special relationship" with the city, which is necessary to overcome the city's immunity from negligence claims. The court also rejected Hoff's inverse condemnation claim, finding no total regulatory taking occurred. View "Hoff v. City of Burlington" on Justia Law

Benjamin Jones and Melanie Jones were married in 2003 and have two minor children. They resided in Glenburn, North Dakota, and purchased a modular home and surrounding acreage from Melanie's parents under a contract for deed. During the COVID-19 pandemic, payments on the contract were suspended, and no payments have been made since, leaving an outstanding debt. In March 2023, Benjamin filed for divorce. In February 2024, Melanie's father notified the parties of his intention to declare default and cancel the contract for deed. The trial was held later that month.The District Court of Renville County granted the divorce, awarded primary residential responsibility of the children to Benjamin, and divided the property and debts. The court found zero equity in the marital home due to nonpayment and the intention to foreclose. It reserved ruling on the final value of the marital home and debt consolidation loan for six months. The court awarded Melanie spousal support of $900 per month for 10 years and ordered her to pay $590 per month in child support.The North Dakota Supreme Court reviewed the case. It affirmed the award of primary residential responsibility to Benjamin, finding no clear error in the lower court's decision. However, it reversed the lower court's reservation of ruling on the marital home and debt consolidation loan valuations, as well as the valuation of the marital home and corresponding debt without specific findings on the valuation date. The Supreme Court also found error in the child support calculation for omitting spousal support and in-kind income.The Supreme Court remanded the case for the lower court to clarify the valuation date for the marital property and debt, make specific findings if another valuation date is fair and equitable, redistribute the marital estate if valuations change, reconsider spousal support in light of any redistribution, and recalculate child support to include spousal support. View "Jones v. Jones" on Justia Law

Kensington Title-Nevada, LLC, a Nevada-based real estate company, acquired property in Denton, Texas, which contained radioactive materials owned by US Radiopharmaceuticals, Inc. (USR). The Texas Department of State Health Services had denied USR’s application for a radioactive material license and ordered decommissioning of the materials. Kensington proposed a decommissioning plan, which the Department approved, and a licensed contractor began the cleanup. However, Kensington faced conflicting demands from the Department and local taxing entities, leading to a halt in decommissioning.The Department issued a notice of violation to Kensington for possessing radioactive material without a license and sought an $8,000 penalty. Kensington amended its pleading in an ongoing tax dispute to seek a declaratory judgment under Section 2001.038(a) of the Administrative Procedure Act, asserting that the licensing rule did not apply to it as it did not own or possess the radioactive material. The trial court denied the Department’s plea to the jurisdiction, but the Court of Appeals reversed, holding that Kensington failed to allege a proper rule-applicability challenge.The Supreme Court of Texas reviewed the case and held that Kensington had standing to seek a declaratory judgment under Section 2001.038(a). The Court found that Kensington’s allegations of interference with its legal rights due to the Department’s notice of violation were sufficient to establish standing. The Court also concluded that Kensington’s challenge to the applicability of the licensing rule was within the scope of the statute’s waiver of immunity. The Court reversed the Court of Appeals’ judgment and remanded the case to the trial court for further proceedings. View "KENSINGTON TITLE-NEVADA, LLC v. TEXAS DEPARTMENT OF STATE HEALTH SERVICES" on Justia Law

Several residents of the City of Muscle Shoals filed a lawsuit against the City, seeking damages for negligence and trespass due to flooding caused by the City's management of a stormwater-drainage pond in their neighborhood. The plaintiffs claimed that heavy rainfall in February 2019 overwhelmed the pond, leading to the flooding of their homes. They argued that the City failed to plan adequately for such events and did not maintain the pond properly.The plaintiffs initially filed their complaint in the Colbert Circuit Court in March 2020, seeking damages for negligence, wantonness, and trespass. They later amended their complaint to drop the wantonness claim and added a request for injunctive relief, which the trial court denied. The City moved for summary judgment, arguing that the claims were barred by § 11-47-190, Ala. Code 1975, and that there was no substantial evidence to support the trespass claim. The trial court denied the City's motion, leading the City to file a petition for a writ of mandamus with the Supreme Court of Alabama.The Supreme Court of Alabama reviewed the case and determined that the City was immune from the plaintiffs' claims under § 11-47-190, Ala. Code 1975. The Court found that the City's decision to plan for 25-year rainfall events was within common municipal practice and did not constitute neglect, carelessness, or unskillfulness. Additionally, the Court concluded that the City's design and maintenance of the pond were not defective within the meaning of the statute. As a result, the Court granted the City's petition and issued a writ directing the trial court to enter a summary judgment in favor of the City, effectively barring the plaintiffs' claims for damages. View "In re: Burrell v. City of Muscle Shoals" on Justia Law