Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

Articles Posted in Real Estate & Property Law
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The United States Court of Appeals for the Ninth Circuit affirmed the district court’s summary judgment for the Orange County Transportation Authority (OCTA) in a case brought by two utilities, Southern California Edison Company and Southern California Gas Company. The utilities claimed they were entitled to compensation under the Takings Clause or under state law for having to relocate their equipment from public streets to allow for the construction of a streetcar line.The court held that the utilities did not have a property interest under California law in maintaining their facilities at their specific locations in the face of OCTA’s efforts to construct a streetcar line. The California Supreme Court recognized in a previous case that a public utility accepts franchise rights in public streets subject to an implied obligation to relocate its facilities therein at its own expense when necessary to make way for a proper governmental use of the streets.The court rejected the utilities’ argument that constructing rail lines is per se a proprietary activity, not a governmental one. California common law has traditionally required utilities to bear relocation costs when governments construct subways, and there is no reason why above-ground rail lines should be treated differently.Finally, the court rejected the utilities’ supplemental state-law claim that California Public Utilities Code section 40162 places the costs of relocation on OCTA. That provision says nothing about imposing the costs of relocation on OCTA. Thus, section 40162 does not apply to OCTA’s project. View "SOUTHERN CALIFORNIA EDISON COMPANY V. ORANGE COUNTY TRANSPORTATION AUTHORITY" on Justia Law

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In the case heard by the United States Court of Appeals for the Ninth Circuit, Peace Ranch LLC challenged the constitutionality of California AB 978, a mobilehome-rent-control statute. Peace Ranch alleged that if it increases mobilehome rents more than AB 978 permits, the California Attorney General would enforce AB 978 against it. However, Peace Ranch also alleged that AB 978 does not apply to its mobilehome park. The Court of Appeals concluded that Peace Ranch had adequately established standing based on a pre-enforcement injury. The court reasoned that Peace Ranch was trapped between complying with a law that it believes does not apply to it or risking enforcement proceedings by raising rents. This dilemma, the court ruled, is the precise predicament that supports pre-enforcement standing. As such, the court reversed the district court's dismissal for lack of standing. View "PEACE RANCH, LLC V. BONTA" on Justia Law

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In the case involving Katherine Blumenkron, David Blumenkron, and Springville Investors, LLC, versus Multnomah County, the Metro Regional Government, and members of the Oregon Land Conservation and Development Commission, the plaintiffs challenged the designation of their land in Multnomah County, Oregon, as "rural reserves" under the Oregon Land Reserves Statute. They claimed that the statute and regulations facially violate the Equal Protection and Due Process Clauses of the federal constitution, and that the defendants’ rural reserve designations violated their federal procedural due process, substantive due process, and equal protection rights. The U.S. Court of Appeals for the Ninth Circuit affirmed the district court’s dismissal of plaintiffs’ facial and as-applied constitutional challenges to the designation, concluding that the requirements for Burford abstention (a doctrine that allows federal courts to refrain from deciding a case in deference to state courts) were met for each of the as-applied claims. The court also held that the district court did not abuse its discretion by abstaining from exercising jurisdiction over the claims in their entirety, including plaintiffs’ claims for damages. The court concluded that plaintiffs had abandoned their facial constitutional claims on appeal and therefore affirmed the district court’s dismissal of these claims for failure to state a claim as a matter of law. View "BLUMENKRON V. MULTNOMAH COUNTY" on Justia Law

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This case concerns the property rights of two uniquely Alaskan entities. On one side is Flying Crown Subdivision Addition No. 1 and No. 2 Property Owners Association (“Flying Crown”), a homeowners’ association for the eponymous subdivision in Anchorage, Alaska. Flying Crown is one of many subdivisions nestled in South Anchorage. The homes in Flying Crown back up to a small airstrip. Some of Flying Crown’s homeowners selected the subdivision for that very reason. On the other side is the Alaska Railroad Corporation (“ARRC”), a state-owned corporation that owns and operates Alaska’s railroad system. ARRC filed this action seeking to quiet title in the right-of-way and to clarify that ARRC’s interest in the right-of-way includes an exclusive-use easement. The district court properly granted summary judgment to ARRC.   The Ninth Circuit affirmed. The panel held that the Alaska Railroad Act of 1914 authorized the creation of the Alaska Railroad, a federal railroad, and reserved railroad rights-of-way to the United States. The Alaska Railroad Transfer Act of 1982 authorized the federal government to transfer nearly all of the Alaska Railroad property rights to ARRC. The panel held that the 1914 Act did not reveal the scope of the right-of-way retained by the government. The panel concluded that, in the Sperstad Patent, the federal government intended to reserve an exclusive-use easement under the 1914 Act. The panel further held that the federal government transferred the exclusive-use easement it retained under the 1914 Act. View "ALASKA RAILROAD CORPORATION V. FLYING CROWN SUBDIVISION ADDITION NO. 1 & NO. 2, ET AL" on Justia Law

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The United States initiated an eminent domain action to acquire land in Montecito, California, to build the Ortega Reservoir. Plaintiff’s property is located directly north of the Ortega Reservoir, and the maintenance road at issue (the Access Road) runs along the southern edge of Kimball-Griffith’s property, just within the boundaries of the federal reservoir land. The federal Bureau of Reclamation (BOR) granted an easement over the Access Road to the County of Santa Barbara, and the County installed locked gates across the road, blocking public entry. Plaintiff filed this lawsuit, asserting the right to use the Access Road based on its purported ownership. The district court held that Plaintiff’s claim against the BOR and its officials must be construed pursuant to the Quiet Title Act (QTA). The district court dismissed the remaining claims as time-barred and because Plaintiff failed to allege a property interest in the Access Road.   The Ninth Circuit affirmed the district court’s dismissal. The panel held that in light of Wilkins, it need not decide whether the statute of limitations applied. The panel held that it could affirm on any ground supported by the record. The panel held that Plaintiff did not allege that, at the time of condemnation, the Access Road existed as a “public street.” As a result, Plaintiff cannot rely on the theory that the adjacent landowners acquired a private easement. Second, the panel held that Plaintiff had not alleged facts suggesting that the adjacent landowners acquired an easement over the Access Road as a third party by any other means or operation of law. View "KIMBALL-GRIFFITH, L.P V. BRENDA BURMAN, ET AL" on Justia Law

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The United States Forest Service, together with the Montana Department of Natural Resources and Conservation, managed the rapidly changing fire conditions and actively communicated with the public about the Lolo Peak Fire. After the fire, various affected landowners sued the federal government. They claim that the Forest Service is liable under the Federal Tort Claims Act (“FTCA”) for failing to comply with its duty to consult with them about fire-suppression activities on and near their properties. Specifically, they argued that the Forest Service was required to consult with landowners through individualized—rather than public—communication channels. The district court granted summary judgment for the Forest Service, holding that it lacked subject matter jurisdiction because the property owners’ claims were barred by the discretionary function exception.   The Ninth Circuit affirmed the district court’s summary judgment in favor of the United States. The panel applied the requisite two-step test to determine whether the discretionary function exception applied. First, the panel examined whether there was a federal statute, regulation, or policy that prescribed the Forest Service’s course of action regarding the agency’s communications with the landowners during the Lolo Peak fire in the Bitterroot Mountains in Montana in July 2017. The panel held that the Forest Service’s specific communications with the landowners exceeded the incident decision’s instruction and involved an element of judgment or choice sufficient to satisfy the first step of the discretionary function exception. The panel held that the Forest Service’s decisions about notifying the landowners about fire-suppression activities likely to occur on and near their properties were susceptible to a policy analysis. View "MICHELLE SCHURG, ET AL V. USA" on Justia Law

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The State of Alaska Department of Fish and Game brought this action against the Board and several federal officials, alleging that the changes violated the Alaska National Interest Lands Conservation Act (“ANILCA”) and the Administrative Procedure Act. Before the district court issued its decision, the Kake Hunt ended, and the district court deemed the challenge to it moot. And while this appeal was pending, the partial Unit 13 closure expired.   The Ninth Circuit reversed in part and vacated in part the district court’s decision in an action challenging the Federal Subsistence Board’s approval in 2020 of two short-term changes to hunting practices on federal public lands in Alaska, specifically (1) the Board’s opening of an emergency hunt for Intervenor, the Organized Village of Kake; and (2) the Board’s partial temporary closure of public lands in game management Unit 13 to nonsubsistence users.   The panel first held that Alaska’s claim that the Board violated ANILCA by opening the 60-day emergency Kake hunt without statutory authority was not moot because it fit within the mootness exception of being capable of repetition yet evading review. Alaska’s claim that ANICLA did not authorize the federal government to open emergency hunting seasons raised a question of first impression in this circuit and required resolution of complicated issues of statutory interpretation. Noting that the district court had not reached the merits, the panel remanded this claim to the district court. With regard to Alaska’s partial Unit 13 closure claim, the panel vacated the part of the district court’s order that addressed the claim. View "STATE OF ALASKA DEPARTMENT OF V. FEDERAL SUBSISTENCE BOARD, ET AL" on Justia Law

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Field Asset Services, Inc. (“FAS”) is in the business of pre-foreclosure property preservation for the residential mortgage industry. Plaintiff was the sole proprietor of BB Home Services, which contracted with FAS as a vendor. Plaintiff alleged that FAS willfully misclassified him and members of the putative class as independent contractors rather than employees, resulting in FAS’s failure to pay overtime compensation and to indemnify them for their business expenses. FAS first argued that the district court abused its discretion by certifying the class, despite the predominance of individualized questions over common ones.   The Ninth Circuit filed (1) an order denying a petition for panel rehearing, denying on behalf of the court a petition for rehearing en banc, and amending the opinion filed on July 5, 2022; and (2) an amended opinion reversing the district court’s order certifying a class of 156 individuals who personally performed work for FAS, reversing the partial summary judgment in favor of the class, vacating the interim award of more than five million dollars in attorneys’ fees, and remanding for further proceedings.   The panel held that here, the class failed the requirement because complex, individualized inquiries would be needed to establish that class members worked overtime or that claimed expenses were reimbursable. The panel concluded that class certification was improper. The panel noted that FAS’s joint employment argument would likely succeed was an actual employee of a vendor suing FAS, claiming that FAS was an employer. The panel further held that the interim award of attorneys' fees must be vacated because the class certification and summary judgment orders were issued in error. View "FRED BOWERMAN, ET AL V. FIELD ASSET SERVICES, INC., ET AL" on Justia Law

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Plaintiff-appellant Amber Machowski was an individual with a disability who used a wheelchair for mobility. Defendant 333 N. Placentia Property, LLC, was the owner of a property in Fullerton, California, on which a business establishment known as City Market Liquor II was located. When Machowski attempted to patronize the store, she encountered architectural barriers that prevented her from making full use and enjoyment of the premises. Machowski sued Defendant, asserting claims under the Americans with Disabilities Act, and the Unruh Civil Rights Act. The complaint sought injunctive relief, statutory damages under the Unruh Act, and reasonable attorney’s fees and costs. After Defendant failed to respond to the complaint, Machowski applied for the entry of default judgment, seeking injunctive relief and statutory damages. Machowski’s application for default judgment did not seek an award of attorney’s fees. Instead, it advised the district court that “plaintiff will separately file a motion for her attorney fees and costs once this application is granted and judgment has been entered.” The district court declined to exercise supplemental jurisdiction over Machowski’s Unruh Act claim, granted default judgment on her ADA claim, ordered injunctive relief, and sua sponte awarded Machowski $1000 in attorney’s fees under Central District of California Local Rule 55-3. Machowski timely appealed the fee award. The Ninth Circuit held that where, as here, a prevailing party advises the district court that it is opting out of the fee schedule and will seek by motion, an award of reasonable attorney's fees, the district court abuses its discretion by disregarding the plaintiff's choice and sua sponte awarding fees under the fee schedule. Accordingly, the fee award was vacated and the matter remanded for further proceedings. View "Machowski v. 333 N. Placentia Property, LLC" on Justia Law

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The California Department of Transportation (“Caltrans”) coordinates and works with other government services before clearing homeless encampments. When Caltrans planned to clear high-risk encampments along the freeway, Plaintiff campers sought an injunction. The district court required Caltrans to give Plaintiffs six months to relocate and find housing before clearing the encampments.   The Ninth Circuit vacated the district court’s order finding "there is no serious question" that the ADA requires such a lengthy delay. The court also held that the district court abused its discretion when evaluating the harm the injunction caused to Caltrans and the attendant public safety concerns, and thus erred in balancing the equities.   Caltrans argued that clearing the encampments involves no ADA obligation because its properties are not open to the public. The ADA requires “only ‘reasonable modifications' that would not fundamentally alter the nature of the service provided.” Here, the court found that a six-month delay is a fundamental alteration of Caltrans’s programs, which provide for expedient clearing of level 1 encampments and include, when possible, 72 hours’ notice and coordination with local partners.   The court also held that the district court erred by incorrectly mitigating the hardships caused by the injunction. When evaluating the balance of equities, the district court noted that Plaintiffs’ potential injury was “exacerbated by the public health concerns of disbanding homeless encampments during the COVID-19 pandemic.” View "WHERE DO WE GO BERKELEY V. CALTRANS" on Justia Law