Justia Minnesota Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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This case arose out of the foreclosure of Respondent’s townhome. Respondent’s townhome association served Respondent’s adult son with notice of the foreclosure under Minn. R. Civ. P. 4.03(a), the substitute-service rule. Respondent brought this action seeking a declaratory judgment that the foreclosure sale was legally void. The district court determined that service was ineffective under Rule 4.03(a) because Respondent’s son was not “residing” in Respondent’s townhome when the association attempted to serve Respondent. The court of appeals affirmed. The Supreme Court affirmed, holding that because Respondent’s son had not lived at Respondent’s home for an extended period when the substitute service occurred, the service was ineffective under Rule 4.03(a). View "Jaeger v. Palladium Holdings, LLC" on Justia Law

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Two churches (the Churches) located in the City of Saint Paul were subject to a right-of-way assessment (ROW assessment) that the City assessed to nearly every owner of real property within the city limits to pay for public right-of-way maintenance services. The Churches appealed their 2011 ROW assessment, arguing that the charge was a tax and was not imposed uniformly upon the same class of property and that the assessed amount improperly exceeded the special benefit to the Churches’ properties. The district court upheld the assessments after applying a reasonableness test, concluding that the ROW was not a tax imposed under the City’s taxing power but was a fee imposed under the City’s police power and, therefore, was not subject to constitutional restrictions on taxation. The court of appeals affirmed. The Supreme Court reversed, holding (1) the ROW assessment was imposed as an exercise of the City’s taxing power rather than its police power; and (2) summary judgment was inappropriate because a genuine issue of material fact existed regarding the extent of special benefits to the Churches’ properties attributable to the right-of-way services. View "First Baptist Church of St. Paul v. City of St. Paul" on Justia Law

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Blandin Paper Company (Blandin) owned 4,680 parcels of timberland located in Aitkin, Itasca, St. Louis, and Koochiching Counties (the Counties). Blandin challenged tax assessments of market value for the timberland properties. Before trial, the Counties filed a motion to exclude evidence Blandin offered regarding the unit-rule method for determining the market value of the property at issue. The tax court denied the motion, determining that the unit-rule method is admissible in property tax proceedings. At trial, the court adopted Blandin’s appraisal values based on the unit-rule method and reduced the assessor's aggregate market value of the properties. The Supreme Court reversed, holding (1) the unit-rule method to determine the fair market value of real property may be admissible in a property tax proceeding; (2) the record in this case does not establish that the appraisal evidence offered by Blandin satisfied the requirements set forth in this opinion for admitting such evidence; and (3) the case must be remanded for both parties to have the opportunity to present evidence in favor of their respective positions. View "County of Aitkin v. Blandin Paper Co." on Justia Law

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The City of Vadnais Heights imposed an assessment on real property owned by McCullough and Songs, Inc. McCullough appealed the City’s decision. The City moved for summary judgment, arguing that McCullough was precluded from appealing because it had failed to file a written objection to the proposed assessment. The district court denied the motion. The court of appeals reversed, concluding that a party opposed to a proposed amendment must object in writing before or at the assessment hearing to preserve its right to appeal the assessment to the district court. McCullough appealed. The Supreme Court dismissed the appeal, vacated the court of appeals’ decision, and remanded, holding that the court of appeals lacked jurisdiction to review the order denying summary judgment to the City. View "McCullough & Sons, Inc. v. City of Vadnais Heights" on Justia Law

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At issue in this case was Hennepin County’s assessment of the market value of two bulk-distribution warehouses for two assessment dates in 2009 and 2010. The tax court adopted market valuations that were far lower than the recent sale price of each subject property. The County appealed, arguing that the tax court provided inadequate reasons for rejecting the County’s sales comparison analysis and for rejecting a large portion of the County’s income capitalization analysis. The Supreme Court reversed the portion of the tax court’s decision rejecting the County’s sales comparison analysis and vacated the tax court’s order, holding that the tax court (1) did not err in rejecting portions of the County’s income capitalization analysis, but (2) failed adequately to explain its reasons for rejecting the County’s sales comparison analysis. Remanded. View "Archway Marketing Servs. v. County of Hennepin" on Justia Law

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Appellant filed an action under 42 U.S.C. 1983 against Scott County and Credit River Township, claiming that the County took his property without just compensation by placing conditions on the approval of his plat application. The County moved for summary judgment, arguing that the district court did not have subject-matter jurisdiction because Appellant’s exclusive avenue for review of the County’s decision was to seek a writ of certiorari from the court of appeals. The district court determined that it had jurisdiction over the action. The court of appeals reversed, concluding that the County’s plat approval subject to conditions was a quasi-judicial action, which was reviewable only by certiorari appeal within sixty days. The Supreme Court reversed, holding that the district court had jurisdiction over Appellant’s section 1983 action. View "Zweber v. Credit River Township" on Justia Law

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Plaintiff brought an action against Defendant for copyright infringement and obtained a money judgment in California. The judgment against Defendant was filed and docketed in a Minnesota district court. Plaintiff subsequently served a garnishment summons on Defendant and sought to attach Defendant’s domain name and the content of its related website. The district court concluded that neither the domain name nor its associated website constituted property subject to garnishment under Minn. Stat. 571.73(3). The court of appeals reversed. The Supreme Court affirmed, holding that an Internet domain name constitutes intangible personal property subject to attachment by garnishment under section 571.73(3)(3). View "Sprinkler Warehouse, Inc. v. Systematic Rain, Inc." on Justia Law

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The State acquired three parcels of land for use during construction of Interstate 394. Because the State no longer needed the parcels, it planned to convey the land to the Golden Valley Housing and Redevelopment Authority (HRA). Webb Golden Valley owned nearby land and argued that the conveyance violated Minn. Stat. 161.44(1). The district court (1) granted Defendants’ motion to dismiss as to two of the parcels for lack of standing, and (2) dismissed the complaint in its entirety when Webb failed to post a surety bond. The court of appeals reversed, holding (1) Webb’s interest in purchasing the two parcels was sufficient to confer standing to challenge the State’s proposed transfer; and (2) the HRA’s allegations of public harm were not supported by evidence in the record, and therefore the district court erred in granting the HRA’s motion for an order directing Webb to post a surety bond. The Supreme Court affirmed in part and reversed in part, holding (1) Webb had standing to bring this suit; but (2) the district court did not abuse its discretion by ordering Webb to post a surety bond, and because Webb did not post the surety bond, the district court did not err in dismissing Webb’s lawsuit with prejudice. View "Webb Golden Valley, LLC v. State" on Justia Law

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After Appellants, several public utilities, sought to condemn a permanent easement across the property of Landowners for a high-voltage transmission line, Landowners elected to compel Appellants to purchase their entire parcel of land pursuant to the Buy-the-Farm statute, Minn. Stat. 216E.12(4). Appellants challenged Landowners’ election, arguing that it was not reasonable because the land subject to the election was much larger than the land needed for the easement and that the district court must consider several factors in addition to the statute’s requirements, including the size of the election. The district court approved the election, concluding that it was not required to analyze factors outside the provisions of the Buy-the-Farm statute. The court of appeals affirmed. The Supreme Court affirmed, holding (1) the language of the statute forecloses Appellants’ assertion that the district court must engage in a totality-of-the-circumstances analysis of the reasonableness of Landowners’ election; (2) case law does not require an extra-statutory analysis; and (3) because Landowners’ election meets the statutory requires, the district court did not err in approving the compelled purchase of the parcel. View "Great River Energy v. Swedzinski" on Justia Law

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When Amos Graves was anticipating losing his home to foreclosure, Michael Wayman persuaded him to enter into a transaction that would purportedly save his home. Graves executed a quitclaim deed in favor of a corporate entity under Wayman’s control, but, the next day, sent a cancellation notice to Wayman, as was his statutory right. Wayman refused to cancel the transaction. When Wayman ceased making mortgage payments, First Minnesota Bank, the eventual mortgagee of the property, foreclosed on and purchased the home. Graves sued Wayman, Wayman’s companies, and First Minnesota, alleging that First Minnesota’s mortgage was invalid because Graves did not lawfully sell his home to Wayman. The district court awarded the property to First Minnesota, concluding that the bank was a bona fide purchaser. The court of appeals reversed and awarded the property to Graves, concluding that First Minnesota did not qualify as a bona fide purchaser. The Supreme Court affirmed in part and reversed in part, holding (1) First Minnesota was not entitled to rights in the property as a bona fide purchaser; but (2) the court of appeals erred in concluding that Graves should be awarded title to the property free of any interest of First Minnesota. Remanded. View "Graves v. Wayman" on Justia Law