Latest 7 Cases This Week: Oneida Indian Nation v. Phillips (2d Cir.), Richardson et al. v. County of Mobile (Ala.), California v. Gonzalez (Cal. ...

In (Trial) Courts (Especially) We Trust

VIKRAM DAVID AMAR, JASON MAZZONE

Illinois law dean Vikram David Amar and professor Jason Mazzone describe the increasing importance of courts and lawyers in safeguarding and reinforcing the role of factual truths in our democracy. Dean Amar and Professor Mazzone point out that lawyers and judges are steeped in factual investigation and factual determination, and they call upon legal educators (like themselves) to continue instilling in students the commitment to analytical reasoning based in factual evidence, and to absolutely reject the notion that factual truth is just in the mind of the beholder.

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The Rhetoric About a “Decline” in Religious Liberty Is Good News for Americans

MARCI A. HAMILTON

Marci A. Hamilton, a professor at the University of Pennsylvania and one of the country’s leading church-state scholars, explains why the rhetoric about a “decline” in religious liberty actually signals a decline in religious triumphalism, and is a good thing. Professor Hamilton describes how religious actors wield the Religious Freedom Restoration Act (RFRA) not as a shield, but as a sword to destroy the lives of fellow Americans.

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Oneida Indian Nation v. Phillips

Court: US Court of Appeals for the Second Circuit

Docket: 19-2737

Opinion Date: November 24, 2020

Judge: Jose A. Cabranes

Areas of Law: Native American Law, Real Estate & Property Law

The Second Circuit affirmed the district court's grant of the Oneida Indian Nation of New York's motion for judgment on the pleadings for its claims asserting a tribal right to possession of land under the Indian Commerce Clause (ICC), federal treaties and statutes, and federal common law. This action arose from a disputed tract of 19.6 acres of land in the Town of Vernon in Oneida County, New York, over which both the Nation and defendant assert ownership. The court granted the district court's decision and order granting the Nation's motion to dismiss defendant's counterclaim. The court held that: (1) the district court correctly granted the Nation's motion for judgment on the pleadings because title was not properly transferred to defendant, and defendant's defenses do not raise any issues of material fact that would preclude the requested declaratory and injunctive relief sought by the Nation; and (2) the district court did not err by declining to apply an immovable property exception to tribal sovereign immunity in dismissing defendant's counterclaim.

Richardson et al. v. County of Mobile

Court: Supreme Court of Alabama

Dockets: 1190468, 1190469

Opinion Date: November 25, 2020

Judge: Sellers

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

In case 1190468, Lewis and Ellen Richardson, and in case 1190469, Sherry Phelps (collectively, "the landowners") appealed the grant of summary judgment in favor of Mobile County, Alabama in their respective actions against the County. The landowners asserted the County was responsible for flooding that damaged the landowners' personal property, allegedly decreased the value of their residential property, and made travel over the roads in their neighborhood unsafe and inconvenient. The trial court concluded the County owed no duty to remediate the flooding. To this, the Alabama Supreme Court agreed: the landowners did not demonstrate the County owed them a duty to prevent the flooding of their property. However, the Court concluded the County did owe a duty to keep its roads safe and convenient for travel, and the landowners could seek to enforce that duty. The Supreme Court therefore affirmed the trial court in part, reversed in part, and remanded for further proceedings.

California v. Gonzalez

Court: California Courts of Appeal

Docket: D077208(Fourth Appellate District)

Opinion Date: November 24, 2020

Judge: Aaron

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

In May 2014, George Gonzalez pled guilty to two misdemeanor counts of using his premises without a permit or variance, and one count of maintaining an unauthorized encroachment. The trial court placed Gonzalez on probation for three years, subject to various stipulated conditions, including that he must bring all properties up to code. Gonzalez violated probation on five separate occasions; each time, the court revoked and then reinstated Gonzalez’s probation, with terms to which Gonzalez expressly agreed, including stayed terms of custody of increasing lengths. During a hearing on the third of these violations, Gonzalez agreed to additional specific probation conditions relating to property that he owned on Aldine Drive. Gonzalez specifically agreed to a probation condition that required he sell the Aldine Property for fair market value if he failed to comply with various probation conditions mandating that he undertake specified corrective work on the property. In March 2017, after admitting a fourth probation violation, Gonzalez agreed to an extension of the probationary period and to modify the stayed term of custod. After a hearing concerning the Aldine Property, the trial court found Gonzalez in violation of probation for a fifth time. Gonzalez was again given an opportunity to cure the violations prior to the next hearing; when conditions were not cured, the court ordered Gonzalez to sell the Aldine Property. Gonzalez challenged the order to sell the Aldine Property, arguing, among other things, the order to sell the Aldine Property was invalid because it was entered after the expiration of the maximum three-year probation period as authorized by his 2014 guilty plea, and an order directing the sale of real property was not specified as a potential punishment for municipal code violations in the San Diego Municipal Code. The Court of Appeal determined: (1) the order to sell the Aldine Property was a condition of probation, not a punishment; (2) Gonzalez’s takings claim was without merit; and (3) Gonzalez forfeited any challenge to the reasonableness of the probation condition by failing to raise such a challenge in the trial court or in his opening brief on appeal. The trial court’s order directing the sale of the Aldine Property was affirmed.

St. Mary & St. John Coptic Orthodox Church v. SBC Insurance Services, Inc.

Court: California Courts of Appeal

Docket: A156085(First Appellate District)

Opinion Date: November 23, 2020

Judge: Brown

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

The Church experienced water damage 57 days after escrow closed on a residence it had purchased; its insurance broker, SBC, had procured commercial property insurance for the residence with Philadelphia Indemnity. Philadelphia denied a claim. The policy states the insurer will not pay for losses if the building where the loss occurs was vacant for more than 60 consecutive days before the loss. The parties entered into an agreement whereby the Church gave Philadelphia the right to control litigation in the Church's name against SBC or third parties in exchange for a loan of money to repair and remediate the residence; the loan was to be repaid out of any recovery. In a suit against SBC for professional negligence, the court found that SBC had breached its duty of care, but that the Church suffered no damages because the loss was covered under the Philadelphia policy. The court found the vacancy provision ambiguous and concluded that it did not include time before the insured owned the residence. The court of appeal reversed. When the vacancy provision is properly interpreted and applied to the undisputed evidence, there was no coverage for the loss. The residence did not contain enough personal property to conduct operations as a residence for the Coptic Pope and visiting clergy or the prior owner. The court rejected an argument that the residence was not vacant under the policy because it was being held out for sale.

United Water & Sanitation Dist. v. Burlington Ditch Reservoir & Land Co.

Court: Colorado Supreme Court

Citation: 2020 CO 80

Opinion Date: November 23, 2020

Judge: Monica M. Márquez

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

This appeal stemmed from an application for a conditional water storage right filed by United Water and Sanitation District, a special water district formed in Elbert County, Colorado, acting through the United Water Acquisition Project Water Activity Enterprise (“United”). United sought to secure various water rights in Weld County. United’s original applications were consolidated in a set of four cases. In response to a motion for determination of questions of law from opposer Farmers Reservoir and Irrigation Company (“FRICO”) in the consolidated cases, the District Court for Water Division 1 (“water court”) concluded that United’s applications failed to demonstrate non-speculative intent to appropriate water. In response to this ruling, United withdrew its applications in the consolidated cases and, a week later, filed a new application in Case No. 16CW3053 for a conditional water storage right that was the subject of this appeal. Pertinent here, United sought to appropriate water for use in a proposed residential development in another county. In support of its new application for a conditional storage right, United offered a new, purportedly binding contract with the landowners of the proposed development. United also claimed for the first time that its status as a special district qualified it for the governmental planning exception to the anti-speculation doctrine. FRICO opposed United's application, and the water court determined United's new application likewise failed to demonstrated non-speculative intent to appropriate water. The water court found that United was acting as a water broker to sell to third parties for their use, and not as a governmental agency seeking to procure water to serve its own municipal customers. Consequently, the water court held, United did not qualify for the governmental planning exception to the anti-speculation doctrine. United appealed. But concurring with the water court's judgment, the Colorado Supreme Court affirmed: United was ineligible for the governmental planning exception to the anti-speculation doctrine.

Revolution Resources, LLC v. Annecy, LLC

Court: Oklahoma Supreme Court

Citation: 2020 OK 97

Opinion Date: November 24, 2020

Judge: Douglas L. Combs

Areas of Law: Civil Procedure, Energy, Oil & Gas Law, Real Estate & Property Law

Plaintiff-appellee Revolution Resources, LLC, (Revolution), an oil and gas well operator, filed an action under the Oklahoma Surface Damages Act (SDA), to Appoint Appraisers. In February 2018, Revolution acquired and became the operator of a 30,000 acre unit that was created in 1947 pursuant to Order 20212 of the Oklahoma Corporation Commission (OCC). The unit wasknown as the West Edmond Hunton Lime Unit (WEHLU). Defendant-appellant Annecy, LLC, (Annecy) purchased the subject premises in August 2019, with the intent to build expensive luxury homes. Appellant unsuccessfully sought a temporary injunction against Appellee's operations. Appellant appealed the interlocutory order denying its motion for temporary injunction. The Oklahoma Supreme Court granted an injunction pending the appeal. Appellant was required to post a bond securing the cost and attorney fees of the Appellee if the Supreme Court determined later the temporary injunction should not have been granted. The Supreme Court concluded the injunction should not have been granted: Annecy purchased its surface estate subject to the outstanding mineral estate held by Revolution. Annecy's surface estate is servient to that of Revolution's mineral estate. Annecy did not meet its burden of proving by clear and convincing evidence that it would be irreparably harmed by Revolution's oil and gas operations. Having failed to establish one of the four factors required, i.e., irreparable harm, by clear and convincing evidence, Annecy did not meet its burden to prove all necessary factors to obtain extraordinary relief, therefore its motion for temporary injunction was correctly denied. The temporary injunction granted by the Supreme Court was dissolved, and the matter remanded for further proceedings to determine the costs and attorney fees owed the Appellee which were secured by bond.

3500 Sepulveda, LLC v. RREEF America REIT II Corp. BBB

Court: US Court of Appeals for the Ninth Circuit

Dockets: 18-56620, 18-56637, 19-55227, 19-55273

Opinion Date: November 20, 2020

Judge: Mark J. Bennett

Areas of Law: Business Law, Construction Law, Real Estate & Property Law

This case arises from the parties' dispute concerning a construction project to expand the Manhattan Village Shopping Center in Manhattan Beach, California. The parties' predecessors executed the Construction, Operation and Reciprocal Easement Agreement (the COREA) in 1980. The parties resolved disputes in a Settlement Agreement in 2008 where, under the terms of the settlement agreement, RREEF agreed not to oppose Hacienda's plan to convert office space into restaurants and Hacienda agreed not to oppose RREEF's expansion project subject to certain limitations in the Agreement. At issue is RREEF's project. The Ninth Circuit affirmed the district court's grant of summary judgment on the nuisance claim and reversed the district court as to the remaining claims. In regard to the claim for breach of contract, the panel concluded that RREEF has discretion to pursue the project and alter the site plan, and Hacienda's objections to the city are limited to RREEF's material changes. That RREEF has discretion to revise the site plan does not mean that Hacienda gave up its rights under the COREA, especially considering that the Settlement Agreement, by its own terms, does not amend the COREA. In regard to the claim for interference with easement rights, the panel concluded that the Settlement Agreement does not extinguish plaintiffs' easement rights under the COREA, and the district court erred in holding otherwise. In regard to the claim for breach of the covenant of good faith and fair dealing, the panel concluded that plaintiffs have presented sufficient evidence to raise a triable issue as to whether RREEF's construction of the North Deck was contrary to "the contract's purposes and the parties' legitimate expectations." In regard to the claim for interference with business and contractual relations, the panel concluded that plaintiffs have raised triable issues concerning whether defendants' construction interfered with Hacienda's tenant contracts, and whether defendants acted with the knowledge that "interference is certain or substantially certain to occur as a result of [their] action." The panel also reversed the district court's grant of summary judgment as to plaintiffs' request for declaratory relief. In regard to RREEF's counterclaims, the panel concluded that policy considerations weighed against applying the litigation privilege. Finally, the panel concluded that the attorneys' fee question was moot and vacated the district court's order denying the parties' motions for attorneys' fees.