Justia New Hampshire Supreme Court Opinion Summaries
Articles Posted in Real Estate & Property Law
City of Portsmouth v. 150 Greenleaf Avenue Realty Trust
Plaintiff City of Portsmouth (City) appealed a superior court ruling that the City’s taking by eminent domain of 4.6 acres of land owned by defendants 150 Greenleaf Avenue Realty Trust and Minato Auto, LLC, was unlawful. On appeal the City argued the trial court erred in: (1) setting aside the taking based on a finding that the City did not set forth statutory authority for taking the wetlands; (2) determining that the City failed to demonstrate a reasonable present public need for taking the wetlands; (3) finding that the City’s taking of the sewer line in fee simple was improper and that the burden on the condemnee outweighed the public necessity; and (4) finding that the City’s purported improper motivation to end litigation with the defendants was a basis to set aside the taking. Finding no reversible error, the New Hampshire Supreme Court affirmed. View "City of Portsmouth v. 150 Greenleaf Avenue Realty Trust" on Justia Law
Ventas Realty Limited Partnership v. City of Dover
Plaintiff Ventas Realty Limited Partnership (Ventas), appealed a superior court order denying its request for an abatement of the real estate taxes it paid defendant City of Dover (City), for the 2014 tax year. The subject real estate consists of a 5.15-acre site containing a skilled nursing facility serving both short-term and long-term patients, two garages, and a parking lot. At issue was the City’s April 1, 2014 assessment of the real estate at a value of $4,308,500. Ventas alleged that it timely applied to the City for an abatement of its 2014 taxes. The City presumably denied or failed to act upon the request, and Ventas, thereafter, petitioned the superior court for an abatement pursuant to RSA 76:17 (Supp. 2018), alleging that the City had unlawfully taxed the property in excess of its fair market value. Expert witnesses for both sides opined the property’s highest and best use was as a skilled nursing facility. The experts also agreed that the most reliable method for determining the property’s fair market value was the income capitalization method, although the City’s expert also completed analyses under the sales comparison and cost approaches. Both experts examined the same comparable properties and they also used similar definitions of “fair market value.” The main difference between the approaches of the two experts is that the City's expert used both market projections and the property’s actual income and expenses from 2012, 2013, and 2014 to forecast the property’s future net income, while Ventas' expert did not. Ventas' expert used the property’s actual income and expenses for the 11 months before the April 1, 2014 valuation date, without any market-based adjustments. Despite their different approaches, the experts gave similar estimates of the property’s projected gross income for tax year 2014. The experts differed greatly in their estimates of the property’s projected gross operating expenses for tax year 2014. All of Ventas’ arguments faulted the trial court for finding the City's expert's valuations more credible than its own expert's valuations. The New Hampshire found the trial court made numerous, specific findings which were supported by the record as to why it rejected Ventas' expert's appraisal. Accordingly, the Supreme Court upheld the trial court’s determination that Ventas' expert's appraisal failed to meet Ventas’ burden of proof. View "Ventas Realty Limited Partnership v. City of Dover" on Justia Law
Rankin v. South Street Downtown Holdings, Inc.
The trial court certified a question of law to the New Hampshire Supreme Court on interlocutory transfer. John Rankin (Rankin) and his wife MaryAnne (collectively, plaintiffs)sued after Rankin fell while leaving a business located at 70 South Main Street in Hanover, New Hampshire (the property). The property was owned by South Street Downtown Holdings, Inc. (South Street). In March 2017, plaintiffs sued South Street for negligence and loss of consortium, alleging that Rankin fell on an “inadequate and dangerous ramp or partial stair” that “did not meet applicable building codes.” The trial court asked the Supreme Court whether RSA 508:4-b (“the statute of repose”) as amended in 1990 applied to and bar third party actions by a property owner defendant (in a premises liability action) for indemnity and/or contribution against architects involved in the design of the improvement to real property which the injured plaintiff alleges was dangerous and did not meet applicable building codes. The Supreme Court concluded that it did. View "Rankin v. South Street Downtown Holdings, Inc." on Justia Law
Toy v. City of Rochester
Defendants, the City of Rochester (City) and Michael and Stacey Philbrook, appealed superior court orders : (1) requiring the City to reacquire title to a parcel of land it previously conveyed to the Philbrooks and transfer title to plaintiffs Donald and Bonnie Toy; and (2) awarding attorney’s fees to the Toys. In May 2015, the City took title to a 1.8-acre parcel of land located in Rochester (Lot 54). The Philbrooks owned a lot adjacent to Lot 54. The Toys owned a manufactured housing park known as “Addison Estates” and an additional, smaller lot located nearby. In 2015, the Toys purchased an additional lot, which shared boundaries with Addison Estates and Lot 54. Lot 54 was located in a zoning district in which the development or expansion of manufactured housing parks was prohibited. The Rochester City Council voted to sell Lot 54 through an advertised sealed bid process. The Toys submitted the highest bid and represented that they intended to “annex the property” to their adjacent property. The Philbrooks submitted the lowest bid stating that they intended to “[a]dd this abutting land to [their] land.” The city council reached a “‘consensus’” that the City would sell Lot 54 to the Toys, provided that they agreed to a restrictive covenant in the deed prohibiting the owner of Lot 54 from ever using the property for manufactured housing park development or to expand Addison Estates. The city council also agreed that, if the Toys did not accept the restrictive covenant, it would sell the lot to the Philbrooks. The Toys’ attorney declined purchase with the covenant. The City then sold the property to the Philbrooks with a warranty deed that did not contain any restrictive covenants. The Toys filed a complaint against the City and the Philbrooks, seeking damages, a declaration that the Toys were “lawfully entitled to the right of first refusal” on Lot 54, an order concluding that the City “breached the Conditions of Sale by transferring” Lot 54 to the Philbrooks and requiring the Philbrooks to convey Lot 54 to the Toys, and attorney’s fees. The defendants moved to dismiss. Although, ideally, the City should have included the restrictive covenant in the Notice of Sale or the Conditions of Sale, the New Hampshire Supreme Court disagreed with the trial court that the City could not subsequently revise the terms of sale to include the restrictive covenant. However, the Supreme Court agreed with the trial court that, in contravention of controlling case law, the City failed to treat the Toys “fairly and equally” when it did not require the Philbrooks to accept the same restrictive covenant demanded of the Toys. Therefore, the City's covenant requirement was “outside the bounds of fairness.” Accordingly, the Supreme Court affirmed the trial court’s conclusion that the City did not treat the Toys “fairly and equally” — but only to the limited extent that the City failed to require that other bidders, including the Philbrooks, accept the restrictive covenant. The attorney fee award was vacated and the matter remanded for further proceedings. View "Toy v. City of Rochester" on Justia Law
The Skinny Pancake-Hanover, LLC v. Crotix
Plaintiff The Skinny Pancake-Hanover, LLC, appealed superior court decisions to grant partial summary judgment to defendants, Crotix and James and Susan Rubens, on plaintiff’s breach of contract claim, and that dismissed plaintiff’s claim against defendants for breach of the implied covenant of good faith and fair dealing. Plaintiff entered into a lease with defendants for a single unit in the Hanover Park Condominium building. The lease gave plaintiff the option to purchase its rental unit along with certain other units in the building. Less than a year later, plaintiff notified defendants it wanted to exercise its purchase option. Defendants “declined” plaintiff’s request, stating that plaintiff’s attempted exercise of the option was untimely under the terms of the agreement. Plaintiff sued; defendants answered, asserting the notice plaintiff sent regarding purchase of the rental unit was insufficient to trigger the option under the original lease agreement. Finding the superior court did not err in granting judgment in favor of defendants, the New Hampshire Supreme Court affirmed. View "The Skinny Pancake-Hanover, LLC v. Crotix" on Justia Law
New Hampshire v. Vincelette
Defendant David Vincelette appealed a the Superior Court decision finding that he committed criminal contempt by violating a January 2016 trial court order that prohibited him from interfering with the Town of Hanover’s efforts to remove debris from a right of way and Town-owned nature preserve. The Town-owned nature preserve was accessed by a deeded right of way that crossed land where defendant resided. In May 2015, the trial court found that the defendant had “placed numerous objects,” including wood pallets, abandoned vehicles, boats, and appliances on the nature preserve and on the right of way such that the right of way was “narrow[ed] . . . to such a width that it is difficult for a vehicle to access the [T]own’s property.” Defendant argued “[t]he court erred by finding that the State presented sufficient evidence that [he] intentionally violated the court’s order.” Finding no reversible error, the New Hampshire Supreme Court affirmed. View "New Hampshire v. Vincelette" on Justia Law
Tarnawa v. Goode
Defendant Richard Goode appealed a Superior Court order granting a petition to partition real property in Manchester, New Hampshire brought by plaintiff Evelyn Tarnawa. The parties were siblings; the received joint title to the property at issue under the will of their mother (the decedent), who died in 2009. Defendant had been living on the property with the decedent prior to her death, and, after her death, chose to continue living there. In 2010, plaintiff sent defendant a proposed agreement purporting to set forth defendant’s rights and responsibilities with respect to the property while he continued to reside there. Although some back-and-forth discussions took place between the parties, the agreement was never executed, and no evidence of any other agreement regarding the property was presented to the trial court. Defendant claimed to have made improvements to the property. Beginning in 2012, defendant failed to pay the property taxes in full. Plaintiff did not learn of this failure until she was notified by the City of Manchester in 2016. By December 2017, the amount owed for outstanding taxes, costs and interest was $33,803.13, with interest accruing at $11.17 per day. In 2016, plaintiff filed a petition for partition, requesting that the court order a sale of the property “and a division of the proceeds of the sale on an equitable basis, i.e. a deduction of all outstanding deficiencies from the Defendant’s share of the proceeds.” Defendant moved to dismiss for lack of subject matter jurisdiction and for summary judgment on the basis of res judicata and the decedent’s intent to devise the property to the parties as joint tenants with rights of survivorship. The trial court denied those motions and granted the petition to partition. Finding no reversible error in the superior court's judgment, the New Hampshire Supreme Court affirmed partition. View "Tarnawa v. Goode" on Justia Law
Posted in:
Civil Procedure, Real Estate & Property Law
Greenwald et al. v. Keating et al.
This case centered on a property lease in Gilford, New Hampshire that included certain preemptive purchase rights (the Agreement). Plaintiffs Evan and Kelly Greenwald sought a declaration on the interpretation of the Agreement, whether it had been breached, and who was liable. On cross-motions for summary judgment, the Superior Court ruled in favor of defendants Barbara Keating, Jill Keating, Ellen Mulligan, and Barry and Chrysoula Uicker. The New Hampshire Supreme Court determined that central to the trial court’s decision was the interpretation of the Agreement - specifically paragraphs 18B and 18C. In the trial court’s view, the Agreement unambiguously required that Richard and Jill Keating intend to list the Mink Island property for sale, not merely intend to sell it, before plaintiffs’ rights under paragraph 18B were triggered. The court also concluded that paragraph 18B was unenforceable because it did not include an essential term: the purchase price. As for the right of first refusal under paragraph 18C, the trial court concluded that this provision was triggered only if the Keatings accepted an offer to purchase made by a third party after the Keatings had listed the property for sale. Thus, the trial court ruled that no breach occurred because the triggering condition - listing the property for sale - was never met. The Supreme Court concluded that because the meaning of the Agreement was ambiguous concerning whether listing the property was intended to be ministerial or substantive, the trial court erred in resolving this issue on summary judgment. The Court agreed with plaintiffs that the trial court erred in summarily concluding that Barbara could not be held liable under the Agreement because she held no ownership interest in the Mink Island property and could not otherwise be chargeable as an agent of Jill. The matter was reversed and remanded for further proceedings. View "Greenwald et al. v. Keating et al." on Justia Law
Appeal of Town of Lincoln
The Town of Lincoln, New Hampshire, appealed a Water Court order upholding a decision by the Department of Environmental Services (DES) ordering the town to repair the Pemigewasset River Levee. The Water Counsel determined the Town owned the levee pursuant to RSA 482:11-a(2013), and therefore was obligated to maintain and repair the levee. In support of its position, DES contends that, in the Assurance, the Town “agreed to take responsibility for the [l]evee’s ongoing maintenance and repair.”1 However, the fact that the Town undertook certain maintenance obligations in the Assurance does not mean that the additional obligations of “ownership” under RSA 482:11-a can or should be imposed upon the Town. The New Hampshire Supreme Court determined that the Water Council’s conclusion the Town “owned” the levee under RSA 482:11-a was dependent on flawed reasoning that Appeal of Michele, 168 N.H. 98 (2015) controlled the outcome of this case. The Supreme Court concluded the Town met its burden to show the Water Council was unreasonable. The Court did not decide the precise degree of ownership that made a person or entity an “owner” for the purposes of RSA 482:11-a, it held that the limited access easement held by the Town in this case fell short of that threshold. Because the Court’s holding on this issue was dispositive of this case, it declined to address the parties’ other arguments. View "Appeal of Town of Lincoln" on Justia Law
Sabato v. Federal National Mortgage Association
Plaintiff Wayne Sabato appealed, and defendant Federal National Mortgage Association (FNMA) cross-appealed a trial court order in a suit brought by plaintiff to establish his homestead right in the subject property. Plaintiff’s wife, Cheryl Sabato, acquired the subject property, taking title by warranty deed that acknowledged she was a “married person,” and granted a purchase money mortgage to a party not identified in the record (the original mortgage), which plaintiff did not sign. Both Cheryl and plaintiff resided at the property since 2001. In January 2002, Cheryl refinanced the original mortgage, executing a new mortgage to HomeVest Mortgage Corporation (the first mortgage). Plaintiff did not sign the first mortgage, which was immediately assigned to CitiMortgage, Inc. In 2005, Cheryl granted a mortgage to National City Bank to secure a home equity line of credit; both Cheryl and plaintiff signed this, the second mortgage. National City Bank was acquired by PNC Bank National Association, which assigned the second mortgage to Situs Investments, LLC (Situs) in 2013. Meanwhile, in 2011, the first mortgage was assigned by CitiMortgage, Inc. to FNMA. In 2014, Situs foreclosed its mortgage, and purchased the property at the foreclosure auction for $64,872.01, taking title subject to the first mortgage. Situs then sold its interest in the property to FNMA. Accordingly, FNMA held title to the property and the first mortgage. In 2016, FNMA notified the Sabatos that they might be evicted from the property. Plaintiff then filed the underlying suit, seeking to establish his homestead right in the property. Both parties moved for summary judgment. Plaintiff contended that foreclosure of the second mortgage did not affect his homestead right because he had not waived that right in the first mortgage. FNMA argued that, because plaintiff waived his homestead interest in the second mortgage, he could not now assert any homestead right. The trial court denied both motions, ruling that the second mortgage was a home equity line of credit, and that some portion of plaintiff's homstead exemption still existed and had to be set-off before FNMA owned the property free and clear. The trial court determined plaintiff was entitled to $120,000 less the amount owed on the note secured by the second mortgage at the time of the foreclosure sale. Finding no reversible error in the trial court's judgment, the New Hampshire Supreme Court affirmed. View "Sabato v. Federal National Mortgage Association" on Justia Law
Posted in:
Real Estate & Property Law