Justia Landlord - Tenant Opinion Summaries

Appellants Keith Aaron and Weston Street Trust appealed a trial court’s summary judgment upholding a Notice of Violation (NOV) concerning the Trust’s property on grounds it was occupied by more than four unrelated adults in violation of applicable zoning restrictions. The property at issue was an individual unit (unit #1) within a three-unit building (the property) located in the City of Burlington’s Residential Low Density Zoning District (RL District). In the context of cross motions for summary judgment, the Trust did not deny that more than four unrelated adults lived in unit #1, and did not contest that the applicable zoning ordinance prohibited such a use in the RL District. The Trust argued that the violation was unenforceable because it first occurred more than fifteen years ago or, in the alternative, that this enforcement action was barred by claim preclusion. The Environmental Division granted summary judgment to the City, upholding the NOV. The Vermont Supreme Court concluded the City was not precluded from enforcing the zoning violation on account of 24 V.S.A. 4454 because a valid municipal ordinance established that if an unlawful use is discontinued for more than sixty days, resumption of the unlawful use constituted a new violation, and the Supreme Court rejected the Trust’s alternate argument that its use was a lawful preexisting nonconforming use based on the preclusive effect of permitting proceedings in 1972 and 1994. View "In re 15-17 Weston Street NOV" on Justia Law

In May 2020, at the height of the pandemic, New York City amended its Residential and Non-Residential Harassment Laws, to prohibit “threatening” tenants based on their “status as a person or business impacted by COVID-19, or . . . receipt of a rent concession or forbearance for any rent owed during the COVID-19 period,” and added the “Guaranty Law,” which renders permanently unenforceable personal liability guarantees of commercial lease obligations for businesses that were required to cease or limit operations pursuant to a government order. For rent arrears arising during March 7, 2020-June 30, 2021, the Guaranty Law extinguishes a landlord’s ability to enforce a personal guaranty.In a suit under 42 U.S.C. 1983, the plaintiffs alleged that the Harassment Amendments violated the Free Speech and Due Process Clauses of the U.S. and New York Constitutions by impermissibly restricting commercial speech in the ordinary collection of rents and by failing to provide fair notice of what constitutes threatening conduct. Plaintiffs further alleged that the Guaranty Law violated the Contracts Clause, which prohibits “State . . . Law[s] impairing the Obligation of Contracts.” The district court dismissed the suit.The Second Circuit affirmed in part, agreeing that the plaintiffs failed to allege plausible free speech and due process claims. The court reinstated the challenge to the Guaranty Law. The Guaranty Law significantly impairs personal guaranty agreements; there are at least five serious concerns about that law being a reasonable and appropriate means to pursue the professed public purpose. View "Melendez v. City of New York" on Justia Law

Defendant Town of Windham (Town) appealed a superior court order denying its motion to dismiss the tax abatement appeal of plaintiff Shaw’s Supermarkets, Inc. (Shaw’s), for lack of standing. The Town also appealed the superior court's order granting Shaw’s requested tax abatement. The owner of the property at issue leased 1.5 acres of a 34.21-acre parcel in Windham established as Current Use. The lease, in relevant part, required Shaw’s to pay the Owner its pro rata share of the real estate taxes assessed on the entire parcel, and the Owner was required to pay the taxes to the Town. If the Owner received a tax abatement, Shaw’s was entitled to its pro rata share of the abatement. In 2017, Shaw’s was directed by the Owner to pay the property taxes directly to the Town, and it did. Shaw’s unsuccessfully applied to the Town’s selectboard for a tax abatement and subsequently appealed to the superior court. The Town moved to dismiss, arguing that Shaw’s lacked standing to request a tax abatement on property it did not own. Finding the superior court did not err in finding Shaw's had standing to seek the abatement, or err in granting the abatement, the New Hampshire Supreme Court affirmed the superior court's orders. View "Shaw's Supermarkets, Inc. v. Town of Windham" on Justia Law

The Eighth Circuit affirmed the bankruptcy appellate panel's decision affirming the bankruptcy court's determination that debtor's debt to Lariat is excepted from discharge because it was obtained by actual fraud. The court explained that, although Lariat's claim was partially disallowed against debtor's bankruptcy estate under 11 U.S.C. 502(b)(6), the landlord cap does not foreclose Lariat's argument that the claim should be excepted from discharge under section 523(a)(2)(A). Therefore, Lariat's claim is excepted from discharge under section 523(a)(2)(A) to the extent that it was obtained by actual fraud. In this case, the bankruptcy court did not clearly err in finding that debtor had received a fraudulent transfer from her husband, and the record supports the bankruptcy court's finding that debtor participated in the scheme with the requisite wrongful intent. View "Lariat Companies, Inc. v. Wigley" on Justia Law

In this eviction action that was removed from a Massachusetts state court the First Circuit reversed the order of the district court ordering a remand in this case and directed the district court to retrieve the removed action and resume jurisdiction, holding that the district court erred.The action in this case sought both to evict Defendant for nonpayment of rent and to recover rent arrearages. Defendant removed the action to the federal district court on the grounds of diversity jurisdiction. In response, Plaintiff argued that the federal district court was entitled to abstain from adjudicating the action under the abstention principles set forth in Burford v. Sun Oil Co., 319 U.S. 315 (1943). The district court granted Plaintiff's motion to remand, concluding that abstention was appropriate. The First Circuit reversed, holding that the court's remand order was in error. View "Forty Six Hundred, LLC v. Cadence Education, LLC" on Justia Law

The question this case presented for the Washington Supreme Court was whether a tenant in a fixed-term commercial lease could become a holdover tenant when the tenancy ends pursuant to an early termination provision. The tenant here argued that this unlawful detainer provision applied only when the tenant remained after the end of the original term specified in the lease. To this, the Supreme Court disagreed: in this case, exercising the no-fault early termination provision in the lease revised the term of the lease, and the term expired on the revised termination date. Therefore, the tenant became a holdover tenant under RCW 59.12.030(1) when they continued in possession of the leased premises after that date. View "Spokane Airport Bd. v. Experimental Aircraft Ass'n, Chapter 79" on Justia Law

Landlords challenged Part A of New York’s residential eviction moratorium statute, the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (CEEFPA), and attempted to challenge the new residential eviction moratorium, (Subpart C(A) 2021), enacted in Sept. 2021, after several provisions of the old moratorium statute expired. The Supreme Court enjoined enforcement of Part A 2020 on August 12, 2021, based on due process defects.The Landlords argued that Subpart C(A) 2021 did not remedy the defect but is merely a continuation of the previous statute. State officials sought dismissal of the appeal as moot, arguing that the challenged provisions of the old statute have expired, Subpart C(A) 2021 does remedy the defect identified by the Supreme Court, and any challenge to the 2021 provisions must be brought in a new lawsuit.The Second Circuit concluded that the due process claims are moot, dismissed them, and remanded the case. With the appeal remanded, the court concluded it lacked jurisdiction to enjoin enforcement of Subpart C(A) 2021. The “mootness is attributable to a change in the legal framework,” so the Landlords “may wish to amend their complaint so as to demonstrate that the repealed statute retains some continuing force or to attack the newly enacted legislation.” View "Chrysafis v. Marks" on Justia Law

Joliet condemned a housing complex managed by New West and paid $15 million. HUD rent subsidies for low-income tenants provided almost all of the money for operating the development. A $2.7 million fund had been established by New West and HUD, to cover necessary maintenance and repairs in the event of a default by New West. HUD refused to release that account to New West, contending that it now holds the account to cover Joliet’s obligations.The Seventh Circuit affirmed the summary judgment rejection of New West’s suit to recover the account. New West cannot establish conversion of the fund without first establishing ownership. HUD’s lien on the fund does not establish ownership of the fund and New West has not established its ownership by showing that it treated deposits into the fund as taxable income. View "New West, L.P. v. Fudge" on Justia Law

Paradigm Investment Group, LLC, and HR IV, LLC ("the tenants"), entered into a written lease agreement, which was ultimately assigned to Dewey Brazelton ("the landlord"). The lease obligated the tenants to make rental payments to the landlord from the operation of a fast-food franchise on the leased premises. When the tenants failed to remit rental payments, the landlord sued the tenants for breach of contract and unjust enrichment. The trial court entered a summary judgment in favor of the landlord, finding that the tenants had breached the lease agreement and were obligated to pay the landlord $113,869.44. The tenants appealed, arguing the trial court erred in entering summary judgment in favor of the landlord because they abandoned the leased premises; the lease agreement does not address abandonment; and, therefore, as a matter of law, common-law principles of abandonment, rather than the terms of lease, govern the landlord's available remedies. The tenants assert that, had the trial court correctly applied common-law principles of abandonment, it would not have awarded contract damages under the lease. Finding summary judgment was properly granted in favor of the landlord, the Alabama Supreme Court affirmed. View "Paradigm Investment Group, LLC and HR IV, LLC v. Brazelton" on Justia Law

The issue this case presented for the Vermont Supreme Court's review was whether a landlord who had no knowledge that a tenant’s dog had dangerous propensities could be held liable for injuries the dog causes to individuals who enter the property with tenant’s permission. Plaintiff Katherine Higgins, who was badly injured by a tenant’s dog while on the leased property, challenged the trial court’s grant of summary judgment to defendant landlords. When he was showing the house on landlords’ behalf after tenant moved in, a realtor who was representing landlords in marketing the property observed obvious signs around the house that a dog lived there, including door casings that were badly scratched by the dog. The realtor did not see the dog and did not know its size or breed or whether it had ever acted aggressively towards any person or other animal; based on the sound of the dog, he opined that it was “tough and loud.” Plaintiff, a neighbor, was attacked and seriously injured by tenant’s dog, an American Pitbull Terrier, while visiting tenant on the rental property. On appeal, plaintiff renews her argument that landlords have a general duty of care to the public, and that this duty includes a duty of reasonable inquiry concerning tenants’ domestic animals. In addition, she argues that landlords were on notice of the dog’s dangerous propensities on the basis of the observations made by realtor, acting as landlords’ agent. Finally, she contends that landlords are liable to plaintiff on the basis of a municipal ordinance. Finding no reversible error in granting summary judgment to the landlords, the Supreme Court affirmed the trial court. View "Higgins v. Bailey" on Justia Law