Justia Landlord - Tenant Opinion Summaries

Articles Posted in US Court of Appeals for the Third Circuit
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The plaintiffs filed suit under 42 U.S.C. 1983 challenging a Jersey City ordinance curtailing the ability of property owners and leaseholders to operate short-term rentals. The plaintiffs alleged that having passed an earlier zoning ordinance legalizing short-term rentals, which enticed them to invest in properties and long-term leases, the city violated their rights under the Takings Clause, the Contract Clause, and the Due Process Clauses by passing the new ordinance, which, they allege, undermined their legitimate, investment-backed expectations and injured their short-term rental businesses. The plaintiffs also sought a preliminary injunction. The district court dismissed the complaint.The Third Circuit affirmed. Not every municipal act legalizing a business activity vests the business owner with a cognizable property right. The plaintiffs’ forward-looking right to pursue their short-term rental businesses is not cognizable under the Takings Clause, but the plaintiffs articulated three cognizable property rights: use and enjoyment of their purchased properties, long-term leases, and short-term rental contracts. Because the properties may still be put to multiple economically viable uses, there has been no total taking of those “properties.” Rejecting “partial takings” claims, the court noted that the plaintiffs may have relied on the previous ordinance in deciding to invest in short-term rentals but they failed to take into account the restrictions in place in that ordinance and the city’s strong interest in regulating residential housing. View "Nekrilov v. City of Jersey City" on Justia Law

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When Revel entered Chapter 11 bankruptcy, its tenant, IDEA, continued to operate nightclubs and a beach club on Revel's Atlantic City casino premises. IDEA sought to protect its right to continue operating by filing an adversary proceeding. Polo became the defendant in the proceeding (and IDEA’s landlord) when the court approved a Purchase Agreement. The Sale Order authorized Polo’s purchase of Revel’s assets “free and clear of all liens, claims, encumbrances and other interests of any kind” under 11 U.S.C. 363(f). The Order contained carve-out provisions that expressly preserved certain rights relating to IDEA’s continued use of the casino premises under the Lease. After entering the Order, the Bankruptcy Court granted Revel’s long-pending motion to reject the Lease retroactively. IDEA filed a notice of its election to retain its rights as a tenant under section 365(h), as expressly allowed by the Sale Order. In an omnibus order, the Bankruptcy Court clarified major aspects of the post-petition landlord–tenant relationship between IDEA and Polo. The Third Circuit affirmed the Bankruptcy Court and the district court. IDEA is permitted to reduce its rental obligations under a tenant-protective provision, 11 U.S.C. 365(h), the Lease, and the doctrine of equitable recoupment, regardless whether its rights arose before or after Revel filed for bankruptcy and regardless whether they arose before or after Revel rejected the Lease. View "Revel AC Inc v. IDEA Boardwalk, LLC" on Justia Law

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Vorchheimer suffers from pulmonary hypertension and other disabilities and must use a rolling walker to get around. She owned a condominium in The Philadelphian and had a reserved parking space in front of the building. Vorchheimer used her walker to get from her condo to the lobby and then used her cane from the lobby to her car. She could neither lift her walker, nor fold it, nor put it into her car, so she began leaving her walker in the lobby. The building managers refused to allow her to continue to do so, but offered her alternatives that involved having staff members take and store the walker or storing the walker in the building’s indoor garage. She sued under the Fair Housing Amendments Act, 42 U.S.C. 3604(f), claiming that her preferred accommodation was necessary to equally enjoy her home. The Third Circuit affirmed the dismissal of her complaint, holding that she had not plausibly pleaded necessity. For a housing accommodation to be “necessary” under the Act, it must be required for that person to achieve equal housing opportunity, taking into account available alternatives. Leaving the walker in the lobby was her preference but given the four alternatives offered she did not plausibly plead that it was necessary. View "Vorchheimer v. Philadelphian Owners Association" on Justia Law

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The Hayes family is a low-income family whose rent is subsidized by enhanced voucher assistance under the Housing Act, 42 U.S.C. 1437f(t) (Section 8). Enhanced vouchers exist to enable residents to “choose” to continue renting the “dwelling unit in which they currently reside.”because an ordinary voucher does not cover a tenant’s rent to the extent that it exceeds the applicable payment standard, and, following a valid opt-out, property owners are no longer subject to limitations on what they may charge for rent. The Hayes family's eligibility to receive enhanced vouchers is contingent upon their continued tenancy in a unit currently owned by Harvey. Harvey notified the Hayes family that he would not renew their lease. The Hayes family refused to vacate, arguing that as enhanced-voucher tenants, they have an enforceable “right to remain” in their unit as long as it is offered for rental housing. The district court granted Harvey summary judgment. The Third Circuit initially affirmed. On rehearing, the Third Circuit reversed. The statute’s plain language and history indicate that enhanced voucher holders may not be evicted absent good cause, even at the end of a lease term. The court remanded so that the district court may consider whether Harvey has good cause to evict. View "Hayes v. Harvey" on Justia Law

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The Hayes family is a low-income family whose rent is subsidized by enhanced voucher assistance under the Housing Act of 1937, 42 U.S.C. 1437f(t) (Section 8). Because an ordinary voucher does not cover a tenant’s rent to the extent that it exceeds the applicable payment standard, and, following a valid opt-out, property owners are no longer subject to limitations on what they may charge for rent, enhanced vouchers exist to enable residents to “choose” to continue renting the “dwelling unit in which they currently reside.” The Hayes family's eligibility to receive enhanced vouchers is contingent upon their continued tenancy in a unit currently owned by Harvey. Toward the end of their most recent lease term, Harvey notified the Hayes family that he would not renew their lease. The Hayes family refused to vacate the premises, arguing that as enhanced-voucher tenants, they have an enforceable “right to remain” in their unit as long as it is offered for rental housing. The district court granted Harvey summary judgment. The Third Circuit affirmed. The Act does not obligate property owners to renew enhanced-voucher tenancies after the initial lease term. View "Hayes v. Harvey" on Justia Law

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In 1962, PWV leased to Norfolk Southern certain railroad properties, consisting of a 112-mile tract of main line railroad and approximately 20 miles of branch rail lines in Western Pennsylvania, Ohio, and West Virginia. After securing appropriate regulatory approvals, the Lease went into effect on October 16, 1964. The term of the Lease is 99 years, renewable in perpetuity at the option of Norfolk Southern absent a default. On May 17, 1990, Norfolk Southern entered into a sublease with Wheeling & Lake Erie Railway. Wheeling assumed the rights, interests, duties, obligations, liabilities, and commitments of Norfolk Southern as lessee, including the role as principal operator of the Rail Line. In 2011, disputes arose following the proposed sale of an unused branch of the railroad line, a restructuring by PWV and its demand for additional rent and attorney's fees. Norfolk Southern sought a declaration that it was not in default under the terms of the Lease. The Third Circuit affirmed the district court’s use of course-of-performance evidence, found that PWV had engaged in fraud to obtain Norfolk’s consent to a transaction otherwise prohibited by the Lease. View "Norfolk Southern Railway Co v. Pittsburgh & West Virginia Railroad" on Justia Law