Latest 13 Cases This Week: Coley v. Eskaton (Cal. Ct. App.), Redondo Beach Waterfront, LLC v. City of Redondo Beach (Cal. Ct. App.), WFG National ...

A Modest Proposal: A Heartbeat Bill for Those Who Don’t Wear Masks

MARCI A. HAMILTON

University of Pennsylvania professor Marci A. Hamilton draws upon a strategy used by anti-abortion advocates in suggesting a way to encourage (or coerce) more people into wearing masks to avoid the spread of COVID-19. Hamilton proposes requiring persons who opt not to wear a mask in public (1) to watch, on a large screen, an adult's beating heart for 30 seconds, and (2) to be read a statement about how their decision unreasonably endangers others.

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Coley v. Eskaton

Court: California Courts of Appeal

Docket: C084328(Third Appellate District)

Opinion Date: July 8, 2020

Judge: Vance W. Raye

Areas of Law: Real Estate & Property Law

Eskaton, Eskaton Village-Grass Valley (Eskaton Village), and Eskaton Properties Inc. (collectively, the Eskaton entities) were related corporations that developed and support common interest developments for older adults in Northern California. Ronald Coley owned a home in one of their developments, Eskaton Village Grass Valley (the Village). He brought this suit against the Village’s homeowners association, two of the directors on the association’s board, and the directors’ employers (the Eskaton entities), alleging these directors ran the association for the benefit of the Eskaton entities rather than the association and its members. The trial court agreed with Coley in part, finding these directors breached their fiduciary duty to the homeowners association and its members in several respects. In particular, the court found one director improperly shared with the Eskaton entities the association’s privileged communications with its counsel, and both directors, in violation of the association’s governing documents, approved certain assessments that benefited the Eskaton entities and harmed many of the association’s members. Based on this conduct, the court found the directors’ employers, the Eskaton entities, were liable for any damages Coley suffered as a result, though it declined to find the directors liable in their personal capacities. It awarded Coley damages of $2,328.51 and attorney fees of $654,242.53. Both parties appealed. The Eskaton entities and the two director defendants (collectively, the defendants) contended the court should have afforded the directors more deference under the business judgment rule. They also claimed the court misread the association’s governing documents, miscalculated appropriate damages, and misapplied vicarious- liability principles in finding the Eskaton entities liable for their employees’ conduct even though their employees were not liable themselves. In his cross-appeal, Coley argued the court should have found the two directors personally liable for their conduct, and alleged the court wrongly rejected several of his claims against the defendants. The Court of Appeal agreed in part with both of the parties: (1) the court miscalculated the damages on certain claims and should, after reducing the damages award on remand, reconsider the awarded attorney fees in light of this reduction; and (2) the court should have found the two directors personally liable for their actions. In all other respects, judgment was affirmed.

Redondo Beach Waterfront, LLC v. City of Redondo Beach

Court: California Courts of Appeal

Dockets: B291111(Second Appellate District) , B294659(Second Appellate District)

Opinion Date: July 9, 2020

Judge: Lavin

Areas of Law: Real Estate & Property Law, Zoning, Planning & Land Use

In a consolidated opinion, the Court of Appeal decided two appeals currently pending related to a proposed waterfront development project in the City of Redondo Beach. In the published portion of the opinion, the court held that the Developer has obtained vested rights against the City under Government Code section 66498.1 and those rights vested before the passage of Measure C. The court rejected the Residents' subsidiary argument that the vested rights issue is not ripe for decision. Accordingly, the court affirmed the judgment in favor of the Developer.

WFG National Title Insurance Co. v. Wells Fargo Bank NA

Court: California Courts of Appeal

Docket: B294249(Second Appellate District)

Opinion Date: July 7, 2020

Judge: Lavin

Areas of Law: Banking, Real Estate & Property Law

Alviso filed suit against numerous parties, including Wells Fargo, that were allegedly involved in a sham transaction by which a seller purported to sell a property to a buyer who obtained a mortgage loan from Aviso to fund the purchase. The title insurer involved in the sham transaction, WFG Title, is Alviso's successor-in-interest and is not prosecuting the action. The trial court granted summary judgment for Wells Fargo, finding that it had no legal obligation to maintain public title records and further finding that equity did not justify displacing Wells Fargo as senior lienholder. The Court of Appeal affirmed and held that the trial court properly granted Wells Fargo's motion for summary judgment. The court held that a fraudulent or forged deed does not convey valid title and, because Wells Fargo was not negligent, neither equitable estoppel nor Civil Code section 3543 is applicable. Finally, the court held that Alviso's remaining arguments are forfeited.

Wilson v. Mocabee

Court: Idaho Supreme Court - Civil

Docket: 47056

Opinion Date: July 6, 2020

Judge: Bevan

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

Appellant Sean Mocabee and Respondent Lindsey Wilson lived together, but were not married. In 2013, after receiving a large inheritance, Wilson fully funded the purchase of a home in Kootenai County, Idaho. Per Wilson’s instruction to the title company, Mocabee’s name was included on the deed. In 2017, Wilson and Mocabee split. Shortly thereafter, Wilson filed a complaint against Mocabee for quiet title, unlawful detainer and partition of the home. Mocabee answered and counterclaimed, seeking partition and for the district court to declare Mocabee owned a fifty percent interest in the home. Mocabee also moved for summary judgment arguing the statute of limitations barred Wilson’s quiet title action. The district court granted Mocabee’s motion for summary judgment as to the quiet title action. Then case then proceeded to trial on the partition action. Mocabee filed a motion in limine asking the district court to exclude evidence demonstrating Wilson did not intend to give Mocabee a fifty percent ownership interest in the home. The district court denied the motion. After a bench trial, the district court concluded Wilson had a one hundred percent ownership interest in the home because she had contributed one hundred percent of the purchase price and the evidence did not establish Wilson intended to give Mocabee any ownership interest. As a result, the district court held that a partitioning of the home was unnecessary. Mocabee timely appealed, arguing the district court erred in: (1) using partition statutes to deprive him of any interest in the home; (2) denying Mocabee’s motion in limine; and (3) concluding Mocabee did not own a fifty percent ownership interest in the home by way of a gift from Wilson. Finding no reversible error, the Idaho Supreme Court affirmed the district court's judgment.

Tomasino v. Town of Casco

Court: Maine Supreme Judicial Court

Citation: 2020 ME 96

Opinion Date: July 7, 2020

Judge: Ellen A. Gorman

Areas of Law: Government & Administrative Law, Real Estate & Property Law

The Supreme Judicial Court affirmed the judgment of the superior court affirming the decision of the Town of Casco Zoning Board of Appeals in which the Board denied the request for a shoreline zoning permit filed by Mark and Valerie Tomasino, holding that the Tomasinos lacked standing to seek such a permit. On appeal, the Tomasinos argued that the Board erred in determining that they demonstrated insufficient right, title, or interest in the property to obtain a permit to remove three trees from property owned by Lake Shore Realty Trust, the abutting property owner, over which the Tomasinos claimed a deeded easement. The Supreme Judicial Court affirmed, holding that, even assuming that the Tomasinos demonstrated that they had some interest in the particular portion of property at issue in this case, they failed to demonstrate that they had the kind of interest that would allow them to cut the trees if they were granted a permit to do so.

Enbridge Energy, Limited Partnership v. Commissioner of Revenue

Court: Minnesota Supreme Court

Docket: A19-1875

Opinion Date: July 8, 2020

Judge: McKeig

Areas of Law: Real Estate & Property Law, Tax Law

The Supreme Court affirmed in part and reversed in part the judgment of the tax court increasing the assessed unit value of a pipeline system for tax years 2015 and 2016, holding that the tax court did not err in its calculations for the cost indicator of value but erred in assigning equal weight to the cost and income indicators of value. On appeal, the taxpayer (1) challenged the tax court's market value determination, asserting that the court erred in its treatment of construction work in progress and external obsolescence in the computation of the cost indicator of value; and (2) challenged the weight that the court assigned to the cost indicator of value, as opposed to the income indicator, in determining the unit value of the pipeline system. The Supreme Court held that the tax court (1) did not err in its calculations for the cost indicator of value; but (2) erred by concluding that it had no discretion to adjust the default weightings prescribed by Minnesota Rule 8100.0300, subpart 5 for the cost and income indicators of value.

Callsen v. Missoula County

Court: Montana Supreme Court

Citation: 2020 MT 176

Opinion Date: July 7, 2020

Judge: Gustafson

Areas of Law: Real Estate & Property Law

The Supreme Court affirmed the order of the district court granting summary judgment in favor of Missoula County and declaring that the right-of-way next to Plaintiff's property extends from Rio Vista Drive to the Bitterroot River, as depicted in the subdivision plat, and provides legal access for the public to the river from Rio Vista Drive, holding that the district court did not err. On appeal, Plaintiff argued that the district court erred in determining that the public right-of-way from Rio Vista Drive extends to the banks of the Bitterroot River. The Supreme Court affirmed, holding that the district court correctly determined, when taken together, the subdivision plat donating a right-of-way from Rio Vista Drive to the banks of the river and the Missoula County Board of Commissioners' acceptance of that right-of-way constitute an instrument of conveyance or deed of a right-of-way to Missoula County to hold the conveyance in trust for the public.

Anthony S. Noonan IRA, LLC v. U.S. Bank National Ass'n

Court: Supreme Court of Nevada

Citation: 136 Nev. Adv. Op. No. 41

Opinion Date: July 9, 2020

Judge: Silver

Areas of Law: Banking, Real Estate & Property Law

The Supreme Court held that the entire amount of a homeowners' association's (HOA) yearly assessment can be included in the superpriority piece of an HOA's lien under Nev. Rev. Stat. 116.3116 so long as the assessment became due in the nine months preceding the HOA's recording of its notice of delinquent assessments. When Homeowners did not pay their 2011 yearly assessment, the HOA, in April 2011, recorded a notice of lien for delinquent assessments. A Bank, the beneficiary of the first deed of trust on the property, requested the super priority amount from the HOA's foreclosure agent and then tendered to the foreclosure agent an amount representing nine out of twelve months of assessments. The HOA continued with the foreclosure sale, and Appellants purchased the property. Appellants filed a complaint seeking to quiet title to the property. The district court granted summary judgment for the Bank, concluding that the Bank's tender cured the default on the superpriority portion of the HOA's lien and that the foreclosure sale did not therefore extinguish the Bank's deed of trust. The Supreme Court reversed, holding that because the Bank did not tender the entire superpriority amount before the HOA foreclosed on its lien, the foreclosure sale extinguished the Bank's deed of trust on the property.

Kuptz-Blinkinsop v. Blinkinsop

Court: Supreme Court of Nevada

Citation: 136 Nev. Adv. Op. No. 40

Opinion Date: July 9, 2020

Judge: Stiglich

Areas of Law: Family Law, Real Estate & Property Law

In this real property dispute, the Supreme Court clarified that its holding in Davidson v. Davidson, 382 P.3d 880 (Nev. 2016), does not apply to claims for enforcement of real property distribution in divorce decrees. The Supreme Court held in Davidson that the six-year statute of limitations in Nev. Rev. Stat. 11.190(1)(a) applies to claims for enforcement of a property distribution provision in a divorce decree. In the instant case, Appellant sought to partition real property that a divorce decree from nine years earlier awarded to Respondent as separate property. Appellant argued that the decree expired pursuant to Davidson, which precluded Respondent from enforcing his distribution rights under the decree and rendered the property still held in joint tenancy subject to partition. The district court granted summary judgment and quieted title in favor of Respondent. The Supreme Court affirmed, holding (1) section 11.190(1)(a) unambiguously excludes from its purview actions for recovery of real property, and therefore, Davidson did not apply; (2) Respondent was not required to renew the divorce decree pursuant to Nev. Rev. Stat. 17.214 to enforce his real property rights; and (3) Appellant's partition claim was barred by claim preclusion.

Investors Bank v. Torres

Court: Supreme Court of New Jersey

Docket: a-55-18

Opinion Date: July 1, 2020

Judge: Anne M. Patterson

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

Defendant Javier Torres signed a promissory note (Note) secured by a residential mortgage (Mortgage). Torres defaulted on the Note. CitiMortgage, Inc., discovered that it had lost the original Note but had retained a digital copy setting forth its terms. CitiMortgage assigned the Mortgage and its interest in the Note to plaintiff Investors Bank (Investors). In this appeal, the issue presented for the New Jersey Supreme Court's review was whether Investors could enforce the Note. The Supreme Court affirmed the trial court: Investors Bank could enforce the note. Relying on two statutes addressing assignments, N.J.S.A. 2A:25-1 and N.J.S.A. 46:9-9, as well as common-law assignment principles, the Court held Investors had the right as an assignee of the Mortgage and transferee of the Note to enforce the Note. The Court construed N.J.S.A. 12A:3-309 to address the rights of CitiMortgage as the possessor of a note or other instrument at the time that the instrument was lost, but not to supplant New Jersey assignment statutes and common law in the setting of this appeal or to preclude an assignee in Investors’ position from asserting its rights according to the Note’s terms. Read together, "N.J.S.A. 12A:3-309, N.J.S.A. 2A:25-1, and N.J.S.A. 46:9-9 clearly authorized the assignment and entitled Investors to enforce its assigned Mortgage and transferred Note."

West Pleasant-CPGT, Inc. v. U.S. Home Corporation

Court: Supreme Court of New Jersey

Docket: a-1-19

Opinion Date: July 8, 2020

Judge: Jaynee LaVecchia

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

In 2005, U.S. Home Corporation entered into a contract to purchase two contiguous tracts of land, one of which was owned by West Pleasant-CPGT, Inc. Under the contract, West Pleasant and the other landowner were to gain certain approvals permitting development of the properties. Pursuant to the contract, U.S. Home paid advances to the landowners totaling over $1.5 million. As security for the advances, West Pleasant executed a mortgage and note on its property; the other landowner did not. When a contract dispute arose in 2006, U.S. Home sought to terminate the contract and get a return of its total advance. U.S. Home prevailed in arbitration and was awarded a judgment in the full amount of the advance, plus interest. The Appellate Division affirmed the judgment in 2009. When the judgment was not satisfied, U.S. Home commenced foreclosure actions against the properties. The foreclosure proceedings were stayed when West Pleasant and the other property owner filed for bankruptcy. In West Pleasant’s bankruptcy action, U.S. Home moved to dismiss and for relief from the automatic stay. West Pleasant and U.S. Home executed a Consent Order, in which West Pleasant dismissed its bankruptcy proceeding, waived a fair market valuation and its right to object to a sheriff’s sale of its property, and released U.S. Home from any claims in law or equity. U.S. Home never proceeded with any deficiency action against either landowner. Nonetheless, the landowners commenced the affirmative litigation that gave rise to this appeal, seeking a declaration that the arbitration award was fully satisfied, as well as compensation “in the amount of the excess fair market value of the properties obtained by defendant U.S. Home over the amount of its outstanding judgment.” The second property owner then assigned its rights to West Pleasant. After trial, the court valued the second property as worth almost $2.4 million and West Pleasant’s property as worth almost $2 million. The court ordered U.S. Home to pay the fair market value of the West Pleasant property, plus interest, and extinguished the arbitration award on the second property. On appeal, the Appellate Division determined that West Pleasant had waived its right to a fair market valuation on its property but that it was owed a fair market value credit for the second property. The Appellate Division remanded the matter to the trial court for recalculation of damages. The New Jersey Supreme Court reversed, finding use of fair market value credit by this debtor to obtain a money judgment against a creditor, in the absence of a deficiency claim threatened or pursued or any objection being raised at the time of the sheriff’s sales, was "inconsistent with sound foreclosure processes and, moreover, inequitable in the circumstances presented." The judgment of the Appellate Division was reversed and the matter remanded for further proceedings.

Poletti v. Glynn

Court: Rhode Island Supreme Court

Docket: 19-109

Opinion Date: July 1, 2020

Judge: William P. Robinson, III

Areas of Law: Personal Injury, Real Estate & Property Law

The Supreme Court affirmed the order of the superior court granting summary judgment in favor of Gonsalves-Pastore Realty, LLC and dismissing Mauro Poletti's negligence complaint, holding that summary judgment was properly granted. Poletti entered into an agreement with Linda Glynn, a licensed real estate agent, to assist him in the purchase of real estate for investment purposes. Later, Glynn granted two mortgages on property purchased in furtherance of Poletti's investment plan and used the resulting funds in contravention of that plan. In his complaint, Plaintiff alleged that Gonsalves-Pastore, as Glynn's employer or principal, breached its fiduciary duty to Poletti to oversee Glynn such that Glynn was acting in the best interests of Poletti and that no loss would ever occur to Poletti. The hearing justice granted summary judgment for Gonsalves-Pastore. The Supreme Court affirmed, holding that the hearing justice did not err in (1) determining that no genuine issue of material fact remained as to whether or not a fiduciary relationship existed between Poletti and Gonsalves-Pastore; and (2) concluding that no genuine issue of material fact existed as to whether or not Defendant was liable for Glynn's alleged acts of malfeasance.

Trapnell & Associates, LLC v. Legacy Resorts, LLC

Court: Utah Supreme Court

Citation: 2020 UT 44

Opinion Date: July 6, 2020

Judge: Pearce

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

In this appeal arising from a dispute between lien holders regarding the distribution of the money a foreclosure sale of Zermatt Resort had generated the Supreme Court vacated the decision of the court of appeals concluding that it had jurisdiction to resolve a procedural matter and affirming the district court, holding that the court of appeals did not have jurisdiction to resolve the matter. After the district court entered its final judgment in this matter but before the time to appeal expired Trapnell & Associates, LLC purchase the plaintiff's interest in the litigation. Trapnell filed a notice under Utah R. Civ. P. 17 that it was a real party in interest and, on that same day, lodged a notice of appeal. The court of appeals noted that it would have been better had Trapnell filed a motion invoking Utah R. Civ. P. 25(c) instead of a notice invoking rule 17 but ruled on the merits of Trapnell's arguments, concluding that because Trapnell had intended to become a party and the district court had treated Trapnell as a party, Trapnell had become a party. The Supreme Court vacated the court of appeals' decision, holding that the court of appeals erred in concluding that Trapnell had properly substituted into this matter.