Justia Maine Supreme Court Opinion Summaries
Articles Posted in Real Estate & Property Law
Estate of Priest
In 2002 and 2009, the town of Pembroke recorded tax liens against property owned jointly by Brian E. Priest and his wife, Lisa C. Priest. The Priests paid the delinquent taxes, and the town discharged the liens through "municipal quitclaim deeds." After Brian died intestate, a dispute arose among his heirs regarding whether the tax liens had severed the joint tenancy, thus terminating Lisa's right of survivorship.The Penobscot County Probate Court denied Lisa's petition to reform the municipal quitclaim deeds to reflect that the property remained in joint tenancy. The court found no evidence of the transferor's intention at the time the deeds were drafted and dismissed the petition. The court did not address Lisa's alternative request for a declaration that the property was not an asset of the estate.The Maine Supreme Judicial Court reviewed the case and concluded that the joint tenancy was not severed because the town never foreclosed on either tax lien mortgage. The court held that the municipal quitclaim deeds served only to discharge the liens and did not affect the joint tenancy. Consequently, Lisa's right of survivorship remained intact. The judgment of the Probate Court was vacated, and the case was remanded for further proceedings consistent with this opinion. View "Estate of Priest" on Justia Law
Posted in:
Real Estate & Property Law, Trusts & Estates
General Holdings, Inc. v. Eight Penn Partners, L.P.
Pamela Gleichman, a real estate developer, established four affordable housing developments in Pennsylvania as limited partnerships in the 1990s. Gleichman and her company, Gleichman & Co., Inc., served as the general partners, while Metropolitan and U.S.A. Institutional held limited partnership interests. In 2014, Gleichman’s daughter, Rosa Scarcelli, acquired Gleichman & Co. (renamed General Holdings, Inc.) through a foreclosure auction. In 2018, Metropolitan and U.S.A. Institutional transferred their limited partnership interests to Eight Penn Partners, L.P., without the consent of General Holdings.General Holdings and Preservation Holdings filed a complaint in the Superior Court against Eight Penn, Metropolitan, and U.S.A. Institutional, seeking a declaratory judgment and injunctive relief. The case was transferred to the Business and Consumer Docket. The court denied Eight Penn’s motion for summary judgment, finding ambiguity in the partnership agreements regarding General Holdings’ status as a general partner. After a trial, the court ruled in favor of the plaintiffs, declaring that General Holdings remained a general partner with management rights and that the transfer of interests to Eight Penn was invalid without General Holdings’ consent.The Maine Supreme Judicial Court reviewed the case and affirmed the lower court’s judgment. The court found that the partnership agreements required the consent of both general partners for a valid transfer of limited partner interests. The court concluded that the transfer of General Holdings’ controlling interest at a foreclosure auction did not require the limited partners’ consent. Therefore, General Holdings remained a general partner with management rights, and the transfer to Eight Penn was invalid. The court upheld the declaratory judgment and denied injunctive relief as unnecessary. View "General Holdings, Inc. v. Eight Penn Partners, L.P." on Justia Law
Posted in:
Business Law, Real Estate & Property Law
Maples v. Compass Harbor Village Condominium Association
Charles R. Maples and Kathy S. Brown, owners of two condominium units, obtained a judgment against Compass Harbor Village Condominium Association and Compass Harbor Village, LLC for damages due to mismanagement. The judgment awarded Maples $134,900 and Brown $106,801, along with specific performance, declaratory relief, and attorney fees. The judgment prohibited the defendants from imposing special assessments to pay for the judgment. The judgment was affirmed in part by the Maine Supreme Judicial Court, but specific performance and the Unfair Trade Practices Act claim were vacated.Maples and Brown recorded writs of execution, obtaining liens against the LLC's and Association's properties. However, the LLC's units were foreclosed by The First, N.A., extinguishing the liens. Maples and Brown then filed a new action in the Superior Court, seeking to enforce the judgment against the remaining seven units not owned by them or foreclosed upon. The case was transferred to the Business and Consumer Docket, where the court dismissed their claims.The Maine Supreme Judicial Court reviewed the case and focused on whether the lower court erred in dismissing the claim to enforce the judgment lien against the seven units under the Maine Condominium Act, 33 M.R.S. § 1603-117. The court held that the proper procedure for enforcing such a lien requires a disclosure proceeding in the District Court, which has exclusive jurisdiction over such matters. The transfer to the Business and Consumer Docket did not cure the jurisdictional issue. Consequently, the court affirmed the dismissal of Maples and Brown’s claims, as the Superior Court and the Business and Consumer Docket lacked jurisdiction to issue the necessary turnover or sale orders under the disclosure statutes. View "Maples v. Compass Harbor Village Condominium Association" on Justia Law
Alrig USA Acquisitions LLC. v. MBD Realty LLC
Alrig USA Acquisitions LLC, a commercial real estate developer, entered into a purchase and sale agreement with MBD Realty LLC for a property in Portland. MBD was aware that the City of Portland planned to redevelop the area, which would involve condemning part of the property, but did not disclose this to Alrig. The agreement included clauses allowing Alrig to terminate the agreement and receive a refund of its deposit under certain conditions, including eminent domain. Alrig extended the inspection period multiple times, paying additional deposits, and eventually waived its due diligence and title review contingencies, making the deposit nonrefundable except in the event of MBD’s default. Alrig later learned of the redevelopment plans and terminated the agreement, seeking a refund of the deposit, which MBD refused.The Superior Court (Cumberland County) granted MBD’s motion to dismiss Alrig’s complaint for breach of contract and fraud, concluding that MBD had no duty to disclose the redevelopment plans. Alrig appealed the decision.The Maine Supreme Judicial Court reviewed the case and affirmed the Superior Court’s judgment. The court held that the amendment to the agreement unambiguously made the deposit nonrefundable except in the event of MBD’s default, and thus Alrig’s contract claim failed. Additionally, the court found that MBD did not actively conceal the City’s planned condemnation, and there was no special relationship imposing a duty to disclose. Therefore, Alrig’s fraud claim also failed as a matter of law. The court concluded that Alrig was not entitled to relief under any set of facts that might be proven in support of its claims. View "Alrig USA Acquisitions LLC. v. MBD Realty LLC" on Justia Law
Posted in:
Contracts, Real Estate & Property Law
Day v. Town of Hiram
James M. Day appealed a decision by the Town of Hiram Planning Board, which granted Brian and Sarah Schnell a conditional use permit to construct a microbrewery on a property in the Town’s Residential District. Day argued that the Board erred in its interpretation of the "need" factor required by the Town of Hiram’s Zoning Ordinance, which mandates consideration of the necessity of a particular location for the proposed use.The Superior Court (Oxford County) initially remanded the case to the Planning Board for findings of fact. After the Board reaffirmed its decision with additional findings, Day appealed again. The Superior Court then affirmed the Board’s decision, leading Day to appeal to the Maine Supreme Judicial Court.The Maine Supreme Judicial Court reviewed the Planning Board’s decision directly. The Court found that the Board had misinterpreted the "need" factor by focusing on the Schnells' lack of alternative properties rather than the community's need for the proposed microbrewery at that specific location. The Court clarified that the "need" factor should consider the community's need for the proposed use in the proposed location, not the applicant's personal need for that location.The Court vacated the Superior Court’s judgment and remanded the case to the Town of Hiram Planning Board for further proceedings consistent with its opinion. The Board may reopen the record to allow for additional evidence relevant to the correct interpretation of the "need" factor. View "Day v. Town of Hiram" on Justia Law
15 Langsford Owner LLC v. Town of Kennebunkport
15 Langsford Owner LLC (15 Langsford) acquired eleven condominium units in Kennebunkport between December 2020 and June 2021. The units were previously approved as residential dwellings under the Town’s Land Use Ordinance (LUO). In April 2021, 15 Langsford began renting the units for short-term stays of less than thirty days. The Town of Kennebunkport, which did not regulate short-term rentals at that time, later contacted 15 Langsford, suggesting that the rentals violated the LUO and the Declaration of Condominium. In June 2021, the Town enacted a Short-Term Rental Ordinance (STRO) requiring licenses for short-term rentals.The Town’s code enforcement officer (CEO) denied 15 Langsford’s applications for short-term rental licenses in May 2022, reasoning that the units were being operated as a hotel or inn, which are not eligible for licenses under the STRO. 15 Langsford filed complaints in the York County Superior Court seeking review of the CEO’s decision. The Superior Court vacated the CEO’s denial, concluding that the units were “[l]egally existing residential dwelling units” eligible for licenses under the STRO.The Maine Supreme Judicial Court reviewed the case and affirmed the Superior Court’s judgment. The Court held that the CEO’s denial of the licenses was reviewable under Rule 80B of the Maine Rules of Civil Procedure, as the denial involved a ministerial act rather than a discretionary one. The Court determined that 15 Langsford’s units were legally existing residential dwelling units and not hotels or inns under the LUO definitions. Therefore, 15 Langsford was entitled to the short-term rental licenses based on the undisputed facts and the terms of the STRO. View "15 Langsford Owner LLC v. Town of Kennebunkport" on Justia Law
High Maine, LLC v. Town of Kittery
High Maine, LLC, challenged the Town of Kittery's issuance of a marijuana retail store license and approval of a change of use and modified site plan for GTF Kittery 8, LLC, to operate a marijuana retail store in the Town’s C-2 zone. High Maine argued that the Town's actions violated local and state regulations, particularly concerning the proximity of the proposed store to a nursery school.The Superior Court (York County) dismissed High Maine's complaint for lack of standing, reasoning that High Maine, as a pre-applicant on the waiting list for a marijuana retail store license, did not suffer a particularized injury. The court concluded that High Maine's status as a prospective license-holder was unchanged by the Town's decisions, and thus, it was not directly affected.The Maine Supreme Judicial Court reviewed the case and determined that High Maine had alleged a particularized injury sufficient to establish standing. The court noted that High Maine's opportunity to obtain the single license available in the C-2 zone was directly and negatively affected by the alleged defects in the licensing process. The court found that High Maine's complaint suggested that GTF Kittery 8 obtained an unfair advantage in the lottery by submitting multiple applications for the same building, which was within 1,000 feet of a school, in violation of state law.The Maine Supreme Judicial Court vacated the Superior Court's judgment and remanded the case for further proceedings, holding that High Maine's allegations were sufficient at the motion to dismiss stage to demonstrate its standing to challenge the Town's actions. View "High Maine, LLC v. Town of Kittery" on Justia Law
Moreau v. Town of Parsonsfield
Roger K. Moreau sought to operate an automotive repair shop on his lot in the Town of Parsonsfield, which is accessed via Reed Lane, a private road. The lot, created from a larger parcel, lacks frontage on a public road. Reed Lane, dating back to 1991, is a fifty-foot-wide right-of-way with a fifteen-foot-wide gravel road. Moreau had been operating the repair shop without a permit since 2015-2018. Nelligan, who owns adjacent property, opposed the business.The Town of Parsonsfield Planning Board initially denied Moreau's application for a site plan review permit but later approved it after Moreau acquired additional property. The Zoning Board of Appeals (ZBA) vacated this approval, stating the lot remained nonconforming. Moreau submitted a third application, which the Planning Board approved, but the ZBA again vacated the decision, citing the insufficient width of Reed Lane for commercial use. Moreau appealed to the Superior Court, which vacated the ZBA's decision, finding the Planning Board's approval valid.The Maine Supreme Judicial Court reviewed the case and determined that the commercial road standards in the Town’s Land Use and Development Ordinance required a sixty-foot-wide right-of-way for a business, which Reed Lane did not meet. The court concluded that Moreau's commercial use of the lot was not grandfathered and must comply with current ordinance standards. Consequently, the court vacated the Superior Court's judgment and directed entry of judgment in favor of Nelligan and the Town of Parsonsfield, affirming the ZBA's decision. View "Moreau v. Town of Parsonsfield" on Justia Law
Longview Hotel Condominium Association v. Pearl Inn
The case involves a dispute between two condominium associations, Longview Hotel Condominium Association (Longview) and Pearl Inn Condominium Association (Pearl), over a strip of land used for parking. Longview owns a beachfront property with six units and an adjacent parking lot, while Pearl owns a nearby property with eight units. The contested area is a rectangular strip of land adjacent to Pearl's building, which has been used by Pearl's residents for parking for decades. Longview claims that Pearl's use of this land constitutes trespass, while Pearl asserts it has acquired the land through adverse possession.The Superior Court (York County) ruled in favor of Pearl, finding that Pearl had acquired the strip of land by adverse possession. The court determined that Pearl's use of the land was continuous, open, and notorious for the required twenty-year period. The court also directed Pearl to submit a proposed judgment with a specific metes-and-bounds description of the adversely possessed area. Longview appealed, arguing that the court erred in its determination of continuous use and in setting the boundaries of the land acquired by adverse possession.The Maine Supreme Judicial Court reviewed the case and affirmed the lower court's finding that Pearl had satisfied the elements of adverse possession, including continuous use. The court found sufficient evidence that Pearl's residents had used the disputed area for parking consistently over the years. However, the Supreme Judicial Court vacated the portion of the judgment concerning the boundaries of the adversely possessed land. The court found that the description provided by Pearl included areas not supported by evidence of actual or continuous use. The case was remanded for a revised metes-and-bounds description that accurately reflects the area used by Pearl's residents. View "Longview Hotel Condominium Association v. Pearl Inn" on Justia Law
Posted in:
Real Estate & Property Law
Stiff v. Town of Belgrade
Geoffrey S. Stiff and Carolyn B. Stiff own a lot on Long Pond in Belgrade, Maine. Their neighbors, Stephen C. Jones and Jody C. Jones, own an adjacent 1.23-acre lot within the limited residential district of the Belgrade shoreland zone. The Joneses' lot is legally non-conforming and already contains a non-conforming house and a shed. In 2017, the Joneses sought a permit to build a garage with a laundry room and playroom. However, they constructed a two-story structure with three bedrooms, two bathrooms, a laundry room, and a playroom with kitchen appliances, which was not in accordance with the permit.The Stiffs objected to the new structure, leading the Joneses to apply for an after-the-fact permit from the Town of Belgrade Planning Board. The Planning Board approved the permit with the condition that kitchen appliances be removed. The Stiffs appealed to the Board of Appeals (BOA), which remanded the matter due to a lack of findings of fact or conclusions of law. On remand, the Planning Board again approved the permit, finding the new structure to be an accessory structure. The Stiffs appealed to the BOA again, and after the BOA denied their appeal, they filed a complaint in the Superior Court, which also denied their appeal.The Maine Supreme Judicial Court reviewed the case and found that the Planning Board had misconstrued the Belgrade Shoreland Zoning Ordinance (SZO). The court held that the new structure was not an accessory structure as defined by the SZO because it was not incidental and subordinate to the existing house. The court vacated the judgment and remanded the case to the Superior Court with instructions to remand to the BOA, which would then remand to the Planning Board for further proceedings consistent with the opinion. View "Stiff v. Town of Belgrade" on Justia Law