Justia Civil Procedure Opinion Summaries

The case involves a dispute between the developers of an aviation-centric community and the homeowners' association regarding the transfer and use of special declarant rights associated with a unique lot. The developers sold the lot to new owners, but the deed did not clearly convey the special declarant rights, and the homeowners' association was not informed about the transfer of these rights. The new owners sought a declaratory judgment that they held the special declarant rights, allowing them to bypass the association's oversight for construction, rent aircraft facilities to non-lot owners, and permit those non-lot owners to use the airstrip. The association argued otherwise and also contended that the lot owners must make tiedowns available to other community members.The Superior Court of Alaska granted summary judgment in favor of the association, ruling that the new owners did not obtain the special declarant rights, that construction on the lot required the association's approval, that the lot owners must make tiedowns available to other members, and that only lot owners could use the airstrip and aircraft facilities. The court also awarded attorney's fees to the association.The Supreme Court of Alaska reviewed the case and found that the statutory warranty deed was ambiguous regarding the transfer of the special declarant rights. The court reversed the summary judgment on this issue and remanded for further proceedings to determine whether the new owners obtained the special declarant rights. The court affirmed the requirement for the lot owners to make tiedowns available to other members but reversed the determination that only lot owners could use the airstrip and aircraft facilities, finding the declaration ambiguous on this point. The court vacated the award of attorney's fees and remanded for a new prevailing party determination. View "Meyers v. Sky Ranch, Inc." on Justia Law

The Vermont Agency of Transportation (AOT) proposed a project to reconstruct the interchange between Interstate 89 and U.S. Routes 2 and 7 in Colchester, Vermont, into a Diverging Diamond Interchange (DDI). Timberlake Associates, LLP, the landowner of a gas station at the southeast corner of the interchange, contested the necessity of the land takings required for the project. Timberlake argued that AOT did not fulfill its pre-suit obligation to negotiate and that the trial court erred in its determination of necessity.The Superior Court, Chittenden Unit, Civil Division, held a four-day evidentiary hearing and concluded that Timberlake failed to demonstrate bad faith or abuse of discretion by AOT. The court found that AOT had satisfied its burden of demonstrating the necessity of taking Timberlake’s property to the extent proposed. Timberlake appealed the decision, arguing that AOT did not adequately consider the statutory factors of necessity and failed to negotiate in good faith.The Vermont Supreme Court reviewed the case and affirmed the lower court’s decision. The Court found that AOT presented sufficient evidence showing it considered the statutory factors, including the adequacy of other property and locations, the effect on the landowner’s convenience, and the environmental impacts. The Court also determined that AOT’s selection of the DDI design was justified based on its superior performance in increasing capacity, reducing congestion, and improving safety compared to other alternatives. Additionally, the Court concluded that AOT made reasonable efforts to negotiate with Timberlake before filing suit, as required by statute.The Vermont Supreme Court held that the trial court acted within its discretion in determining the necessity of the takings and that AOT fulfilled its pre-suit obligation to negotiate. The decision of the lower court was affirmed. View "Agency of Transportation v. Timberlake Associates, LLC" on Justia Law

Steven Fustolo purchased a rental investment unit in Boston, Massachusetts, in 2009, taking out a mortgage with Mortgage Electronic Registration Systems, Inc. (MERS) as nominee for Union Capital Mortgage Business Trust. The mortgage was reassigned six times, and Fustolo defaulted on the loan. He sought a declaratory judgment that the current holders, Federal Home Loan Mortgage Corporation as Trustee of SCRT 2019-2 (the Trust) and Select Portfolio Servicing, Inc. (SPS), had no right to foreclose because they did not validly hold the mortgage or the accompanying promissory note. Fustolo also claimed defamation, slander of title, unfair business practices, violation of Massachusetts's Debt Collection Act, and a violation of Regulation X of the Real Estate Settlement Procedures Act (RESPA) by SPS.The United States District Court for the District of Massachusetts dismissed Fustolo's claims, except for one count challenging the adequacy of a notice letter, which was later settled. The court found that the Trust validly held both the mortgage and the note, and that Fustolo's state law claims hinged on the incorrect assertion that the Trust did not have the right to foreclose. The court also dismissed the RESPA claim, stating that Fustolo failed to specify which provision of RESPA was violated and that SPS had responded to his notice of error.The United States Court of Appeals for the First Circuit affirmed the district court's dismissal. The appellate court held that the Trust validly held the mortgage and the note, as the note was indorsed in blank and in the Trust's possession. The court also found that MERS had the authority to assign the mortgage despite Union Capital's dissolution. Additionally, the court ruled that Fustolo's RESPA claim failed because challenges to the merits of a servicer's evaluation of a loss mitigation application do not relate to the servicing of the loan and are not covered errors under RESPA. View "Fustolo v. Select Portfolio Servicing, Inc." on Justia Law

The case involves Andris Pukke, Peter Baker, and John Usher, who were found liable for violations of the Federal Trade Commission Act, the Telemarketing Sales Rule, and a permanent injunction from a prior fraud case. They were involved in a real estate scam, selling lots in a development called "Sanctuary Belize" through deceptive practices. The district court issued an equitable monetary judgment of $120.2 million for consumer redress, imposed an asset freeze, and appointed a receiver.The United States District Court for the District of Maryland found the defendants liable after a bench trial and issued permanent injunctions against them. The court also held them in contempt for violating a prior judgment in a related case, ordering them to pay the same $120.2 million in consumer redress. The defendants appealed, and the United States Court of Appeals for the Fourth Circuit affirmed the district court's decision, except for vacating the monetary judgment to the extent it relied on FTC Act Section 13(b).The United States Court of Appeals for the Fourth Circuit reviewed the case and affirmed the district court's decision to maintain the receivership and asset freeze. The court held that the receivership and asset freeze were necessary to effectuate the injunctive relief and ensure that the defendants did not continue to profit from their deceptive practices. The court also found that the contempt judgment supported maintaining the receivership and asset freeze until the judgment was satisfied. The court emphasized the defendants' history of deceptive conduct and the need for a professional receiver to manage and distribute the assets to defrauded consumers. The judgment was affirmed. View "Federal Trade Commission v. Pukke" on Justia Law

Chris Welsh, representing CAL SD, LLC, entered into a purchase agreement with Interwest Leasing, LLC to buy commercial real estate, with a $30,000 earnest money deposit. Welsh passed away before closing, and CAL SD refused to close. Interwest sold the property to another buyer for the same price but did not return the earnest money. CAL SD filed a declaratory judgment action to recover the deposit, claiming the agreement was void due to their inability to obtain financing.The Circuit Court of the Seventh Judicial Circuit in Pennington County, South Dakota, treated the declaratory judgment as a breach of contract action and set it for a jury trial. The jury found in favor of CAL SD, and the court ordered the return of the earnest money deposit. Interwest appealed, arguing the action was equitable and should not have been decided by a jury, and also claimed the court gave erroneous jury instructions.The Supreme Court of the State of South Dakota reviewed the case. The court held that the declaratory judgment action was legal, not equitable, because it sought to enforce contractual rights under the purchase agreement, which was void if financing was not obtained. The court affirmed the lower court's decision to submit the case to a jury for a binding verdict, as the issue was whether CAL SD breached the contract by failing to secure financing. The court concluded that the jury's determination that CAL SD was unable to obtain financing rendered the purchase agreement void, entitling CAL SD to the return of the earnest money deposit. View "Cal SD, LLC v. Interwest Leasing, LLC" on Justia Law

Sarah Staab purchased a condominium unit at a foreclosure sale conducted by the condominium association to recover unpaid fees. She later challenged two Superior Court orders that ruled the sale of the unit to her was barred by the Federal Foreclosure Bar, 12 U.S.C. § 4617(j)(3), and thus void, and granted summary judgment to Wells Fargo Bank, N.A. on its claims for judicial foreclosure, declaratory judgment, and quiet title. Staab did not contest that the property was encumbered by a deed of trust owned by the Federal Housing Finance Agency (FHFA) and the Federal National Mortgage Association (Fannie Mae) and serviced by Wells Fargo, nor did she dispute the application of the Federal Foreclosure Bar. Instead, she raised three procedural arguments.The Superior Court of the District of Columbia initially ruled in favor of Wells Fargo, determining that the bank's claims were timely, the foreclosure and sale of the property to Staab were void under the Federal Foreclosure Bar, and the condominium association was not an indispensable party. Staab argued that the court applied the incorrect statute of limitations, abused its discretion by allowing Wells Fargo to amend its complaint years after filing, and erred by not joining the condominium association as an indispensable party.The District of Columbia Court of Appeals reviewed the case and affirmed the Superior Court's judgment. The court held that Wells Fargo's initial action for judicial foreclosure was timely and that the additional facts and arguments raised in the amended complaint were in direct response to Staab's affirmative defense. The court also concluded that any error in granting Wells Fargo leave to amend its complaint was harmless, as the bank could have raised the same arguments at the summary judgment stage. Finally, the court determined that the condominium association was not an essential party under Super. Ct. Civ. R. 19(a)(1), as the court could grant complete relief without its involvement. View "Staab v. Wells Fargo Bank, N.A." on Justia Law

The case involves a partition action concerning two properties in Charlestown, Rhode Island, owned by Peter Karasuk, Lee Karasuk Ingley, and Sandra Karasuk Puchalski as joint tenants with a right of survivorship. The properties were inherited from their mother’s estate in 2017. After failed negotiations to sell the properties to Puchalski, Karasuk and Ingley filed a partition action on May 3, 2021. Numerous continuances were granted due to Puchalski's complaints of hearing impairment. Despite accommodations, Puchalski expressed dissatisfaction and failed to appear at several hearings.The Superior Court dismissed Puchalski’s appeals, approved the commissioner’s petition for instructions, and quashed a statement she filed in the Town of Charlestown Land Evidence Records. Puchalski appealed these decisions. The Superior Court had granted plaintiffs' motion to sell the properties, appointed a commissioner, and issued a temporary restraining order against Puchalski. Puchalski failed to appear at critical hearings, leading to the dismissal of her appeals.The Rhode Island Supreme Court reviewed the case and found that Puchalski received adequate notice of the motions and hearings. The court determined that the orders appealed from were interlocutory and not subject to review under the exceptions to the final-judgment rule. The court affirmed the Superior Court’s decisions, including the dismissal of Puchalski’s appeals and the orders related to the partition and sale of the properties. The court emphasized that Puchalski’s continued attempts to delay the proceedings were unavailing and that the matter should proceed to finality. View "Karasuk v. Puchalski" on Justia Law

JHVS Group, LLC and its members, Jasanjot Singh and Harshana Kaur, purchased a 66.4-acre pistachio orchard from Shawn Slate and Dina Slate for approximately $2.6 million. The Slates agreed to carry a loan for $1,889,600, and JHVS made a $700,000 down payment. The agreement included provisions for interest payments and additional payments coinciding with expected crop payments. JHVS alleged that the Slates and their brokers, Randy Hayer and SVN Executive Commercial Advisors, misrepresented material facts about the property, including water rights and the value of the 2022 crop. JHVS claimed the actual value of the crop was significantly lower than represented, and they fell behind on payments, leading the Slates to record a notice of default.JHVS filed a lawsuit in the Superior Court of Madera County, raising seven causes of action, including breach of fiduciary duty, negligence, intentional fraud, negligent misrepresentation, breach of contract, rescission based on fraud or mutual mistake, and injunctive relief to stop the foreclosure process. JHVS filed a motion for a preliminary injunction to prevent the foreclosure sale, arguing that the Slates and Hayer had lied about water restrictions and misrepresented the crop's value. The trial court granted the preliminary injunction after the defendants did not appear or file a response.The California Court of Appeal, Fifth Appellate District, reviewed the case and found that the trial court lacked fundamental jurisdiction over the Slates because they were never served with the summons and complaint. The appellate court determined that the trial court's order was void as to the Slates due to the lack of proper service and reversed the preliminary injunction order with respect to the Slates. The case was remanded for further proceedings consistent with the appellate court's opinion. View "JHVS Group, LLC v. Slate" on Justia Law

The Wyoming Board of Land Commissioners (Board) manages state trust lands for the benefit of public schools. In Teton County, the Board issued temporary use permits to Basecamp Hospitality, LLC and Wilson Investments, LLC for commercial activities on state trust lands. Teton County challenged these permits, arguing they should be subject to local land use regulations. The district court dismissed Teton County's challenge, stating the county lacked standing for judicial review. Subsequently, Teton County issued abatement notices to the permit holders, which led the Board to seek declaratory and injunctive relief, claiming sovereign immunity from local regulations.The Teton County Board of County Commissioners (Teton County) filed a petition for review, which was dismissed by the Ninth Judicial District Court. The Board then filed for declaratory judgment and injunctive relief in the First Judicial District, Laramie County, Wyoming. The district court issued a temporary restraining order and preliminary injunction against Teton County's enforcement actions. Citizens for Responsible Use of State Lands (CRUSL), formed by local property owners, sought to intervene, claiming their interests were directly impacted by the use of the state trust lands.The Wyoming Supreme Court reviewed the case. CRUSL argued it had a significant protectable interest due to the proximity of its members' properties to the state trust lands. However, the court found CRUSL's interests were contingent on the outcome of the sovereign immunity issue and thus not significant protectable interests. Additionally, the court held that Teton County adequately represented CRUSL's interests, as both sought to enforce local regulations on state trust lands. Consequently, the court affirmed the district court's denial of CRUSL's motion to intervene as a matter of right under Wyoming Rule of Civil Procedure 24(a)(2). View "Citizens for Responsible Use of State Lands v. State" on Justia Law

A landowner, Main St Properties LLC (MSP), entered into a conditional zoning agreement with the City of Bellevue, Nebraska, in 2012. The agreement allowed the City to rezone MSP’s property if MSP violated the agreement by parking U-Haul vehicles north of the building. The City issued multiple violation notices to MSP over the years, citing breaches of the agreement.MSP did not appeal the first three violation notices but did appeal a fourth notice issued in June 2020. While this appeal was pending, the City rezoned MSP’s property back to its original classification, citing the multiple violations as the basis for this action.MSP filed two lawsuits against the City: one seeking declaratory and injunctive relief and the other challenging the rezoning through a petition in error. The district court granted summary judgment for the City in both cases, finding that the City acted within its rights under the agreement and that the rezoning was not arbitrary or unreasonable.The Nebraska Supreme Court reviewed the case. It determined that the City’s action to rezone the property was legislative, not judicial, and thus not subject to a petition in error. Consequently, the court dismissed the appeal related to the petition in error and vacated that judgment. However, the court affirmed the district court’s summary judgment in the declaratory and injunctive relief case, holding that the City properly exercised its rights under the agreement after MSP committed multiple violations. The court also found that the stay provision in Neb. Rev. Stat. § 19-909 did not apply to the City’s legislative action and that there were no genuine issues of material fact precluding summary judgment. View "Main St Properties v. City of Bellevue" on Justia Law