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Justia Weekly Opinion Summaries

Real Estate & Property Law
September 11, 2020

Table of Contents

International Outdoor, Inc. v. City of Troy

Civil Rights, Communications Law, Constitutional Law, Real Estate & Property Law, Zoning, Planning & Land Use

US Court of Appeals for the Sixth Circuit

Nanouk v. United States

Environmental Law, Native American Law, Personal Injury, Real Estate & Property Law, Zoning, Planning & Land Use

US Court of Appeals for the Ninth Circuit

Kidd v. Benson

Civil Procedure, Real Estate & Property Law

Supreme Court of Alabama

Aljabban v. Fontana Indoor Swap Meet, Inc.

Business Law, Landlord - Tenant, Real Estate & Property Law

California Courts of Appeal

Windsor I, LLC v. CWCapital Asset Mgmt, LLC

Business Law, Civil Procedure, Real Estate & Property Law

Delaware Supreme Court

AVG Partners I, LLC v. Genesis Health Clubs of Midwest, LLC

Landlord - Tenant, Real Estate & Property Law

Nebraska Supreme Court

Borton & Sons, Inc. v. Burbank Properties, LLC

Civil Procedure, Contracts, Real Estate & Property Law

Washington Supreme Court

COVID-19 Updates: Law & Legal Resources Related to Coronavirus

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Legal Analysis and Commentary

Law and Non-Legal Entitlements: Kate Manne’s Entitled: How Male Privilege Hurts Women

LESLEY WEXLER

verdict post

Illinois law professor Lesley Wexler comments on philosopher Kate Manne’s recent book, Entitled, in which Mann tackles “privileged men’s sense of entitlement” as a “pervasive social problem with often devastating consequences.” Wexler praises Manne’s work as “illuminating” and calls upon lawyers and law scholars to ask how such entitlements might best and safely be challenged and reallocated, and how new more egalitarian entitlements might be generated and enforced.

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Real Estate & Property Law Opinions

International Outdoor, Inc. v. City of Troy

Court: US Court of Appeals for the Sixth Circuit

Dockets: 19-1151, 19-1399

Opinion Date: September 4, 2020

Judge: Danny Julian Boggs

Areas of Law: Civil Rights, Communications Law, Constitutional Law, Real Estate & Property Law, Zoning, Planning & Land Use

International, an outdoor advertising company, sought to erect digital billboards in two separate locations within the City of Troy. International's permit and variance applications were denied. International filed suit (42 U.S.C. 1983), alleging that the ordinance granted unfettered discretion and contained unconstitutional content-based restrictions as it exempted from permit requirements certain categories of signs, such as flags and “temporary signs.” During the litigation, Troy amended the Ordinance. The Sixth Circuit remanded. The original Ordinance imposed a prior restraint because the right to display a sign that did not come within an exception as a flag or as a “temporary sign” depended on obtaining either a permit or a variance. The standards for granting a variance contained multiple vague, undefined criteria, such as “public interest,” “general purpose and intent,” “adversely affect[ing],” and “hardship.” Even meeting these criteria did not guarantee a variance; the Board retained discretion to deny it. The amendment, however, rendered the action for declaratory and injunctive relief moot. The severability of the variance provisions rendered moot its claim for damages. The court reinstated a claim that the ordinance imposed content-based restrictions without a compelling government interest for reconsideration under the correct standard. A regulation of commercial speech that is not content-neutral is still subject to strict scrutiny.

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Nanouk v. United States

Court: US Court of Appeals for the Ninth Circuit

Docket: 19-35116

Opinion Date: September 4, 2020

Judge: Paul Jeffrey Watford

Areas of Law: Environmental Law, Native American Law, Personal Injury, Real Estate & Property Law, Zoning, Planning & Land Use

Nanouk uses her 160-acre Alaska Native allotment for traditional subsistence activities. In the 1980s, Nanouk built a small cabin, which she and her family reached by using a trail that runs from the main road through the U.S. Air Force North River Radio Relay Station, which closed in 1978. In 1981, the General Accounting Office criticized the Air Force’s failure to maintain shuttered sites, including North River, which contained hazardous chemicals. The Air Force and the Army Corps of Engineers began remediation, removing 500 gallons of transformer oil containing PCBs and PCB-contaminated soil. Surveys taken in 1987 and 1989 revealed that 6,700 cubic yards of contaminated soil remained. The Air Force and the Corps released a new plan in 2001; clean-up resumed. The trail that Nanouk used ran through a “hot spot” where PCB-contaminated soil was picked up by her vehicles. Nanouk did not learn about the PCBs on her property until 2003 when she reported a strong chemical odor. The Air Force then undertook extensive environmental remediation at the Station and Nanouk’s allotment. Nanouk sued, alleging trespass and nuisance. She and several family members have experienced serious health problems. The Ninth Circuit vacated the dismissal of her suit. The Federal Tort Claims Act's discretionary exception barred claims predicated on two of the acts she challenged as negligent--the government’s alleged failure to supervise contractors during the Station’s operation, and its abandonment of the property between the 1978 closure and 1990. The government did not establish that the exception barred the claims relating to the failure to identify and remediate the hot spot in a timely manner after 1990.

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Kidd v. Benson

Court: Supreme Court of Alabama

Docket: 1190413

Opinion Date: September 4, 2020

Judge: Sellers

Areas of Law: Civil Procedure, Real Estate & Property Law

James Kidd, Jr., and Carolyn Kidd appealed the grant of summary judgment in favor of Edwin and Dianne Benson in their action against the Bensons arising out of a real-estate transaction. In this case, the Kidds signed a purchase agreement expressly stating that they were accepting the property in its "AS IS, WHERE IS, CONDITION." Despite "heightened" knowledge, they did not have the property or its structures professionally inspected. Because the Kidds purchased the property in its "as is" condition, without having a bluff area inspected, they could not invoke the health-or-safety exception to the doctrine of caveat emptor in an attempt to impose upon the Bensons a duty to disclose. Accordingly, the Kidds failed to present sufficient evidence creating a genuine issue of material fact not only as to their fraud claims, but also as to their negligence and wantonness claims. Therefore, the Supreme Court affirmed.

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Aljabban v. Fontana Indoor Swap Meet, Inc.

Court: California Courts of Appeal

Docket: D076214(Fourth Appellate District)

Opinion Date: September 10, 2020

Judge: Joan Irion

Areas of Law: Business Law, Landlord - Tenant, Real Estate & Property Law

Mohamed Aljabban appeals from an adverse judgment after a bench trial in the lawsuit that he and his wife, Jacqueline Carrasco, filed against defendants Fontana Indoor Swap Meet, Inc. (FISM), Jonathan Shapiro and Victor Ramirez. Aljabban and Carrasco operated a beauty salon on the premises of an indoor swap meet managed by FISM and its president, Shapiro. Aljabban contended: (1) the trial court erred in concluding that he and Carrasco were not permitted to remove a sink/cabinet unit, a water heater and some decorative molding when vacating the premises of the beauty salon; (2) FISM and Shapiro improperly withheld $680.00 of the security deposit to cover expenses it incurred to repair damage to the premises; (3) the trial court should have found that FISM and Shapiro breached the parties’ agreement under which Aljabban and Carrasco occupied the premises because they wrongfully failed to renew it; and (4) he did not receive a fair trial because of alleged misbehavior during trial by Shapiro. After review, the Court of Appeal determined only one of Aljabban’s contentions had merit: FISM was not entitled to withhold $680.00 of the security deposit to cover the expense of repairing damage to the premises, as the parties did not specifically agree that the security deposit could be used to cover repairs. Accordingly, the Court reversed in part the trial court's judgment with respect to this contention, but affirmed in all other respects. The matter was remanded for further proceedings on the issue of attorney fees and costs.

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Windsor I, LLC v. CWCapital Asset Mgmt, LLC

Court: Delaware Supreme Court

Docket: 443, 2019

Opinion Date: September 10, 2020

Judge: Karen L. Valihura

Areas of Law: Business Law, Civil Procedure, Real Estate & Property Law

Windsor I, LLC appealed a superior court's decision to grant defendants' CWCapital Asset Management LLC (“CWCAM”) and U.S. Bank National Association (“U.S. Bank”) motion to dismiss. Windsor owned a 48,000 square foot commercial property and building encumbered by debt eventually held by U.S. Bank. In 2015, after learning that the Property’s sole tenant intended to vacate, Windsor sought special servicing to refinance the debt. After nearly two years of negotiation and litigation, CWCAM, the special servicer, offered to sell the loan to Windsor in a proposed transaction for $5,288,000, subject to credit committee approval. The credit committee, however, rejected the transaction, and Defendants filed a foreclosure action against Windsor in 2017. Defendants thereafter held an online auction to sell the loan. A Windsor representative participated in the auction. After the auction, Defendants sold the loan to a third party, WM Capital Partners 66 LLC (“WM Capital”), and Windsor ultimately paid $7.4 million to WM Capital in full satisfaction of the loan. In its action seeking relief based upon quasi-contractual theories of promissory estoppel and unjust enrichment, Windsor alleged that but for the credit committee’s arbitrary rejection of the proposed transaction, Windsor would have purchased the note and loan nearly a year earlier for over $2,112,000 less than it paid to WM Capital. The Superior Court ultimately held that Windsor failed to state claims for promissory estoppel and unjust enrichment, and that the claims were barred because Windsor’s representative had agreed to a general release as part of an auction bidding process. Finding no reversible error, the Delaware Supreme Court affirmed dismissal.

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AVG Partners I, LLC v. Genesis Health Clubs of Midwest, LLC

Court: Nebraska Supreme Court

Citation: 307 Neb. 47

Opinion Date: September 4, 2020

Judge: William B. Cassel

Areas of Law: Landlord - Tenant, Real Estate & Property Law

The Supreme Court affirmed the judgment of the district court granting a money judgment for Landlord after Tenant breached its leases on two commercial properties, holding that there was no merit in Tenant's arguments on appeal. After a trial, the jury returned a special verdict in Landlord's favor, finding that Landlord met its burden of proving that Tenant breached the lease agreement, causing Landlord damages of $1,657,800 for unpaid rent and late fees and for unpaid taxes. The court entered judgment on the verdict and further awarded prejudgment interest. The Supreme Court affirmed, holding (1) Landlord had standing in this action and was not required to produce the actual assignment of the leases; (2) there was no error in the award of prejudgment interests or in the special verdicts awarding late fees; and (3) the court had inherent authority to award Landlord its actual expenses as a condition of sustaining Tenant's motion for continuance of trial.

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Borton & Sons, Inc. v. Burbank Properties, LLC

Court: Washington Supreme Court

Docket: 97690-2

Opinion Date: September 10, 2020

Judge: Yu

Areas of Law: Civil Procedure, Contracts, Real Estate & Property Law

When a lessee does not timely exercise an option contained in a lease agreement, special circumstances may warrant granting them extra time to exercise the option. In this case, petitioner Burbank Properties LLC mailed its notice shortly after the deadline had passed, and the trial court awarded Burbank an equitable grace period to exercise the option on summary judgment where it was undisputed that no valuable permanent improvements were made. The Washington Supreme Court granted review to decide valuable permanent improvements to the property were a necessary prerequisite to granting the equitable grace period. The Court held that granting an equitable grace period was proper only when a lessee made valuable improvements to property that would result in an inequitable forfeiture if the lessee was not given a grace period.

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