American Law’s Worst Moment—2020

AUSTIN SARAT

Austin Sarat—Associate Provost and Associate Dean of the Faculty and William Nelson Cromwell Professor of Jurisprudence & Political Science at Amherst College—explains why the police murder of George Floyd was the worst moment of 2020 in American law. Professor Sarat proposes that we remember the event and that date—May 25—as “infamous,” a word reserved for rare and atrocious events like the bombing of Pearl Harbor, in an attempt to capture the brutality and inhumanity of the act.

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Alpert v. NationStar Mortgage LLC

Court: US Court of Appeals for the Ninth Circuit

Docket: 19-35867

Opinion Date: December 31, 2020

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

The Ninth Circuit filed an order deferring submission and certifying the following questions to the Washington State Supreme Court: 1. Should the filed rate doctrine apply to claims by a Washington homeowner against a loan servicer arising from the placement of lender placed insurance on the Washington homeowner's property where the servicer purchased the insurance from a separate insurance company who filed the insurance product with the Washington State Office of the Insurance Commissioner? 2. In the event the filed rate doctrine does apply to this type of transaction, do the damages requested by plaintiff fall outside the scope of the filed rate doctrine, or rather do they "directly attack agency-approved rates," such that they are barred under McCarthy Finance, Inc. v. Premera, 347 P.3d 872, 875 (Wash. 2015)?

FNB Bank v. Marine Park, LLC, et al.

Court: Supreme Court of Alabama

Docket: 1190251

Opinion Date: December 31, 2020

Judge: Michael F. Bolin

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

SE Property Holdings, LLC ("SEPH"), the successor by merger to Vision Bank, and FNB Bank ("FNB") separately appealed a circuit court's judgments on their breach-of-contract claims against Bama Bayou, LLC, formerly known as Riverwalk, LLC ("Bama Bayou"), and Marine Park, LLC ("Marine Park"), and the individuals and entities guaranteeing Bama Bayou's and Marine Park's contract obligations, challenging the trial court's damages awards. Bama Bayou and Marine Park were the developers of a planned mixed-use development in Orange Beach consisting of a marine park, residential condominiums, retail shops, hotels, and commercial entertainment venues. Marine Park specifically intended to develop a special-use facility for the exhibition of marine animals. Vision Bank made four loans to Bama Bayou and Marine Park related to the development project. The Marine Park loan was fully funded by FNB pursuant to a participation agreement with Vision Bank. The participation agreement provided that the Marine Park parcel would be owned by FNB in the event it was acquired by foreclosure. Bama Bayou and Marine Park were having financial problems with regard to the project by August 2007. Vision Bank demanded payment at that time, and Bama Bayou, Marine Park, and the guarantors failed and/or refused to pay the indebtedness owed on the loans. In 2009, Vision Bank conducted a public auction to separately foreclose the mortgages. No bids were submitted; Vision Bank purchased the properties. Neither Bama Bayou, nor Marine Park, nor the guarantors exercised their rights to redeem the properties. Vision Bank sued Bama Bayou and its guarantors, and Marine Park and its guarantors for amounts owed under those loans, including all principal, accrued interest, late charges, attorney's fees and collection costs. After review, the Alabama Supreme Court reversed the trial court's judgments in these consolidated cases and remanded for a determination of the appropriate awards on the breach-of-contract claims. "Such awards should account for all accrued interest, late charges, attorney's fees, collection costs, and property- preservation expenses owed."

Hurd v. Henley

Court: Alaska Supreme Court

Docket: S-17104

Opinion Date: December 31, 2020

Judge: Joel H. Bolger

Areas of Law: Real Estate & Property Law

Shay Hurd appealed the superior court’s determination that his adjoining neighbor, Larry Henley, adversely possessed a portion of his land. Hurd and Henley shared a boundary line that Henley first encroached on by building a shed and then by building a larger shop. Hurd sued, and the superior court ultimately awarded the area originally occupied by Henley’s shed and the area surrounding it to Henley, but not the larger area with the shop. After review of the superior court record, the Alaska Supreme Court concluded the superior court did not err when it found that Henley regularly graveled and parked vehicles in the area granted to him as adversely possessed. "Henley’s activities on that area were sufficient to constitute adverse possession. The superior court adequately defined the area adversely possessed by referencing landmarks with locations readily ascertainable from the record." The Court interpreted the “good faith but mistaken belief” required for adverse possession by AS 09.45.052(a) to require only subjective good faith; therefore, the superior court did not clearly err by determining Henley occupied the former shed area due to a good-faith belief the land was his.

Phillis v. County of Humboldt

Court: California Courts of Appeal

Docket: A158725(First Appellate District)

Opinion Date: December 31, 2020

Judge: Kline

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

In 2013, Phillips purchased Humboldt County property at a public trustee sale for $153.806.41, comprising two 80-acre parcels, two miles from a public road. The terrain is mostly steep and wooded. There is a 1,508-square-foot, three-bedroom manufactured home on a permanent foundation that uses a solar generator system, a spring-fed water system, and a septic system. The property was previously purchased in 2000 for $125,000; in 2001 the modular home was added, costing $85,000. Phillips filed multiple applications challenging the prior owner’s $469,976 assessment. The Assessor reappraised the property at $415,000. Phillips cited Revenue and Taxation Code 110(b): the purchase price of real property is rebuttably presumed to be its “fair market value” “if the terms of the transaction were negotiated at arms-length between a knowledgeable transferor and transferee neither of which could take advantage of exigencies. Phillips argued that the price he paid for the property had to be treated as its taxable value and challenged the Assessor’s comparable sales analysis, The Board determined the value to be $250,000. Phillips filed a tax refund action. On remand, the Board found the 2013 fair market value was $335,000. The court of appeal affirmed that the property was not obtained in an open market transaction, there was substantial evidence to support the Board’s conclusion as to its assessed value of the property, and Phillips’ due process rights were not violated. A foreclosure sale is by nature not an open market transaction supporting the application of the section 110 presumption; even where that presumption applies, it may be rebutted by evidence that the property's fair market value is otherwise.

Moreschi v. Village of Williams Bay

Court: Wisconsin Supreme Court

Docket: 2018AP000283

Opinion Date: December 30, 2020

Judge: Dallet

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

The Supreme Court affirmed the decision of a local zoning court of appeals approving homeowners' variance request, holding that, pursuant to Wis. Stat. 62.23(7)(e)10., certiorari review of the board's decision is triggered when a written copy of the decision is filed in the board's office. The homeowners in this case petitioned the Village of Williams Bay Extraterritorial Zoning Board of Appeals for a variance request. The Board unanimously approved the variance. Plaintiff, the homeowners' neighbor, filed for a writ of certiorari within thirty days after the Board orally voted to grant the variance but before the Board issued and filed a written copy of its decision. The circuit court affirmed the Board's decision. The court of appeals affirmed. At issue on appeal was whether the court of appeals properly determined what constitutes the "triggering event" for purposes of appealing the Board's decision on a writ of certiorari. The Supreme Court affirmed, holding (1) an aggrieved party's right to certiorari review is triggered when a written copy of a zoning board of appeals' decision is filed in the office of the board; (2) the Board's written decision and approved minutes were properly included in the certiorari record; and (3) the Board acted under the correct theory of law.