Cases





IMMUNITY - MISSISSIPPI

O.R. Garretson v. Mississippi Dept. of Transp.

Supreme Court of Mississippi - November 20, 2014 - So.3d - 2014 WL 6480534

Property owners brought action against the Department of Transportation, seeking damages as a result of silt flooding from bypass construction, and alleging trespass.

The Supreme Court of Mississippi held that:

The crux of property owners’ complaint was that the design of the bypass itself changed the naturally occurring drainage and caused silt to flow onto their land, which had not occurred before, and thus, all of property owners’ causes of action, including their request for injunctive relief, fell within the realm of road design, and sounded in tort.




MUNICIPAL ORDINANCE - MONTANA

City of Helena v. Svee

Supreme Court of Montana - November 25, 2014 - P.3d - 2014 MT 311

City filed complaint against owners of property located within wildland-urban district for violation of ordinance dictating permissible roofing materials. Owners answered and petitioned for declaratory judgment that ordinance was building regulation that city lacked authority to promulgate. The First Judicial Court entered summary judgment for owners, but denied their motion for attorney fees. City appealed, and owners cross-appealed denial of their motion for attorney fees.

The Supreme Court of Montana held that:




EMINENT DOMAIN - MONTANA

Wohl v. City of Missoula

Supreme Court of Montana - November 25, 2014 - P.3d - 2014 MT 310

Abutting landowners brought action against city arising out of dispute concerning the width of public right-of-way constituting avenue. Following a bench trial, the District Court determined the width of the right-of-way, and awarded landowners compensation for a taking, plus a portion of requested costs and fees. City appealed, and landowners cross-appealed.

The Supreme Court of Montana held that District Court’s decision to award landowners appellate attorney fees as prevailing parties was not precluded by the law of the case doctrine.

In an inverse eminent domain action brought by landowners against city, trial court’s decision to award landowners appellate attorney fees as prevailing parties was not precluded by the law of the case doctrine, even though the Supreme Court refused to award fees in its order on rehearing. In its rehearing order, the Supreme Court did not pronounce a principle or rule of law necessary to the decision, but rather, simply observed that it had not expressly awarded attorney fees in a prior decision and declined to do so again, and the rehearing order did not address the substantive question of whether the landowners were entitled to appellate attorney fees.




PENSIONS - NEW JERSEY

Moran v. Board of Trustees, Police and Firemen's Retirement System

Superior Court of New Jersey, Appellate Division - November 25, 2014 - A.3d - 2014 WL 6634502

After suffering disabling injuries while saving two victims from a burning building by kicking in the building’s front door, firefighter applied for an accidental disability retirement pension. The Board of Trustees of the Police and Firemen’s Retirement System (PFRS) denied the application, rejecting the legal conclusion of the Office of Administrative Law that the incident was undesigned and unexpected. Firefighter appealed.

The Superior Court, Appellate Division, held that firefighter suffered an undesigned and unexpected traumatic event and was entitled to accidental disability pension.

Firefighter who suffered disabling injuries after saving two victims from a burning building by kicking in building’s front door suffered an undesigned and unexpected traumatic event, and thus firefighter was entitled to an accidental disability retirement pension, even though event was not a classic accident. Event resulted from combination of unusual circumstances that led to firefighter’s injury, including failure of truck company unit that was responsible for forcing entry and rescuing occupants to arrive, discovery of victims trapped inside a fully engulfed burning building that was reported to have been vacant, training that had not prepared firefighter to break into burning buildings without battering rams or other specialized equipment used by truck company unit, and fact that victims would have died had firefighter not responded immediately to break down door.




PUBLIC UTILITIES - NEW JERSEY

United Water New Jersey, Inc. v. Borough of Hillsdale

Superior Court of New Jersey, Appellate Division - November 26, 2014 - A.3d - 2014 WL 6675036

Public utility filed an action in lieu of prerogative writs alleging that borough had adopted and sought to enforce ordinances that were preempted by state law, and that the New Jersey Department of Environmental Protection (NJDEP) had exclusive jurisdiction over dam improvement project. The Superior Court permitted flood solution group and water customers to intervene, and following a bench trial, found that NJDEP had exclusive jurisdiction over the project. Intervenors appealed.

The Superior Court, Appellate Division, held that borough was preempted by state law from applying its ordinances to dam project.

Borough was preempted by state Safe Dam Act and Water Supply Management Act from applying its conditional use and tree removal ordinances to public utility’s dam improvement project, where state’s regulatory scheme for dams and reservoirs was pervasive and comprehensive, thereby precluding the co-existence of municipal regulation reflected in borough’s ordinances.




LIABILITY - NEW YORK

Coleson v. City of New York

Court of Appeals of New York - November 24, 2014 - N.E.3d - 2014 N.Y. Slip Op. 08213

Wife who was stabbed by her husband brought action on behalf of herself and her son against city and city police department, alleging that defendants were negligent in failing to protect plaintiffs from attacks by husband, and asserting claim for negligent infliction of emotional distress. The Supreme Court, Bronx County granted defendants’ motion for summary judgment, and wife appealed.

The Court of Appeals held that:

Genuine issues of material fact existed as to whether special relationship existed between wife, who was stabbed by her husband after husband was arrested in connection with domestic violence incident and then released, and city, and as to whether wife justifiably relied on police officer’s assurances that husband would remain in jail, precluding summary judgment as to wife’s negligence claim arising from city’s failure to protect her from attack.

Child was not in zone of danger at time his mother was stabbed by his father, as would subject city to liability for negligent infliction of emotional distress arising from its handling of domestic violence situation. Child was in broom closet while mother was stabbed, and thus he neither saw incident nor was immediately aware of incident at time it occurred.




PENSIONS - PENNSYLVANIA

United Police Society of Mt. Lebanon v. Mt. Lebanon Comm'n

Supreme Court of Pennsylvania - November 24, 2014 - A.3d - 2014 WL 6634130

Municipality adopted police pension plan (the “Plan”) pursuant to a collective bargaining agreement (CBA). Thereafter, the municipality administered the plan term along the lines of the incomplete or inaccurate assessment that resulted from the incomplete or inaccurate information submitted to the actuary, in effect unilaterally modifying both the plan and the CBA.

The Commonwealth Court determined that because Act 205 had statutory primacy over any CBA, the plan must be administered as understood by the actuary when it made its Act 205 cost study, even if this effectively alters a bargained-for term of the parties.

The Supreme Court of Pennsylvania took up the case.

“However, we must nevertheless consider how Act 205 affects the proper disposition of this case. Because the Municipality provided the wrong information to the actuary performing the Act 205 cost study with respect to the COLA cap for early retirees, the Municipality failed to obtain a “complete and accurate” actuarial cost estimate, as required by Act 205. Thus, as here, the implementation of a pension plan based on an incomplete and inaccurate cost estimate is a violation of Act 205 in itself. For this reason, the Commission erred by ordering the Plan’s implementation along the lines of the incomplete and inaccurate Act 205 cost study, which was, in turn, based on the incomplete and inaccurate information supplied by the Municipality.”

“The only appropriate remedy available is to remand the matter for an order directing the Municipality to comply with its mandate under Section 305: to make a complete and accurate cost study that includes the correct COLA cap for certain early retirees, as herein determined.”

The Court concluded that it was error to impose a unilateral change to the Plan at odds with its plain language based on the results of an incomplete and inaccurate Act 205 cost study. It therefore reversed the order of the Commonwealth Court and remanded the case to that court for further remand to effectuate a complete and accurate Section 305 cost study.




FIRST AMENDMENT - PUERTO RICO

Watchtower Bible and Tract Society of New York, Inc. v. Municipality of San Juan

United States Court of Appeals, First Circuit - November 20, 2014 - F.3d - 2014 WL 6482932

Distributors of religious tracts brought § 1983 action against municipalities, alleging implementation of Puerto Rico’s Controlled Access Law (CAL), which allowed municipalities to authorize neighborhood associations to erect gates enclosing public streets, violated First Amendment right to free speech. The District Court imposed remedial scheme requiring unmanned gated communities provide distributors with gate keys upon distributors’ disclosure of their identities and purpose. Parties cross-appealed.

The Court of Appeals held that:

In § 1983 action alleging Puerto Rico’s Controlled Access Law (CAL), which allowed municipalities to authorize neighborhood associations to erect gates enclosing public streets, violated First Amendment rights of religious tract distributors who sought access to those streets for protected speech activities, district court sufficiently explained reasons for issuing injunction requiring municipalities to allow distributors access to gated public streets upon distributors’ disclosure of their purpose and identities, where, in crafting injunction, court sought to balance parties’ rights of free speech and personal security, while avoiding the imposition of undue administrative and financial burdens on municipalities and gated communities.




IMMUNITY - UTAH

Cope v. Utah Valley State College

Supreme Court of Utah - November 21, 2014 - P.3d - 2014 UT 53

State college student filed suit against college for head injury sustained during performance of ballroom dance maneuver at direction of instructor. The District Court entered summary judgment for college and dismissed complaint, and student appealed. The Court of Appeals reversed in part based on determination that special relationship exception to public duty doctrine applied. Certiorari review was granted.

The Supreme Court of Utah held that:




LIABILITY - CONNECTICUT

Robinson v. Cianfarani

Supreme Court of Connecticut - November 25, 2014 - A.3d - 2014 WL 6435084

Pedestrian filed suit against owners of property that abutted public sidewalk for injuries sustained in slip and fall on snow and ice that had accumulated on sidewalk. The trial court entered summary judgment for owners, and pedestrian appealed.

The Supreme Court of Connecticut held that town ordinance imposing fines on owners of property abutting public sidewalks for failure to keep sidewalk clear of ice and snow did not transfer town’s civil liability for pedestrian’s injuries to landowners.




LIABILITY - DISTRICT OF COLUMBIA

District of Columbia v. Bamidele

District of Columbia Court of Appeals - November 13, 2014 - A.3d - 2014 WL 5858952

Restaurant patron and his wife brought action against off-duty police officers and their employer after officers allegedly assaulted and battered them. Following a jury trial, the Superior Court entered judgment in favor of patrons. Officers and employer appealed.

The Court of Appeals held that:




PUBLIC UTILITIES - ILLINOIS

People ex rel. Madigan v. Illinois Commerce Com'n

Supreme Court of Illinois - November 20, 2014 - N.E.3d - 2014 IL 116642

State appealed decision of the Illinois Commerce Commission granting water utility’s request for approval of its annual reconciliation of purchased water and purchased sewage treatment surcharges. The Appellate Court dismissed appeal as untimely. State petitioned for leave to appeal and Commerce Commission filed separate petition to appeal as a matter of right or for leave to appeal, both of which were granted and appeals were consolidated.

The Supreme Court of Illinois held that 35-day period specified in Public Utilities Act, rather than 30-day period in court rule, applied to review of decision of Commerce Commission.




ZONING - ILLINOIS

Affordable Recovery Housing v. City of Blue Island

United States District Court, N.D. Illinois, Eastern Division - November 17, 2014 - F.Supp.3d - 2014 WL 6461596

Affordable Recovery Housing (ARH) obtained a license from the Illinois Department of Human Services (DHS) to operate a Recovery Home. The DHS is charged with regulating and licensing Recovery Homes, which provide substance abuse services and housing for recovering alcoholics and substance users.

Pursuant to the statutory authority granted to it in the Alcoholism and Other Drug Abuse and Dependency Act, 20 ILCS 301 et seq., DHS enacted a comprehensive regulatory scheme regarding Recovery Homes. Under the DHS regulations, ARH is not required to install sprinkler systems for fire safety purposes in its buildings. Under the Life Safety Code adopted by the City of Blue Island, however, sprinkler systems are required. ARH challenged the City Code.

The District Court held that the DHS regulations preempt the City’s Life Safety Code such that the City may not enforce its sprinkler requirements against ARH.




EMPLOYMENT - MASSACHUSETTS

Fernandes v. Attleboro Housing Authority

Supreme Judicial Court of Massachusetts, Bristol - November 19, 2014 - N.E.3d - 2014 WL 6460260

Employee brought action against employer, alleging violations of the Wage Act. Following jury verdict in favor of employee, the Superior Court Department denied employer’s motion for judgment notwithstanding the verdict (JNOV), employee’s motion for reinstatement of employment, and employee’s motion for new trial on damages. Employer appealed and employee cross-appealed. The case was transferred from the Appeals Court.

The Supreme Judicial Court held that:

Civil Service Commission did not have exclusive authority, pursuant to civil service law, over housing authority employee’s claims under the Wage Act, and therefore dismissal of employee’s judicial action against employer was not required under doctrine of primary jurisdiction.

Reinstatement of employment following termination was not an available remedy for violations of the Wage Act, where Act provides that employee claiming to be aggrieved by violation of Act could bring civil action for injunctive relief, for any damages incurred, and for any lost wages and other benefits, and Act did not expressly authorize reinstatement as available remedy.




EMPLOYMENT - MASSACHUSETTS

Kelley v. Boston Fire Dept.

Appeals Court of Massachusetts - November 18, 2014 - N.E.3d - 2014 WL 6390168

Fire lieutenants employed by city fire department filed appeal claiming to be aggrieved by practice of appointing out-of-grade acting captains without following provisions of civil service laws. The Civil Service Commission determined that the city violated the civil service laws, but ultimately dismissed the appeal, concluding that compliance with the statutory procedures was ministerial, and that the lieutenants had failed to demonstrate that the appointments did not meet the statutory criteria. Lieutenants appealed. The Superior Court Department vacated and remanded. City appealed.

The Appeals Court held that Superior Court order remanding to Civil Service Commission was interlocutory order not immediately appealable.




IMMUNITY - MISSISSIPPI

K.N. v. Moss Point School Dist.

Court of Appeals of Mississippi - November 18, 2014 - So.3d - 2014 WL 6433486

High school student was injured when a vertically placed, metal divider fell from the door of the band hall and hit her on the head. Student sued. The school district filed a motion for summary judgment, which the circuit court granted after finding that the school district was immune from liability under the discretionary-function exception. Student appealed.

The Appeals Court reversed, holding that the school district created the dangerous condition by leaving the metal divider unsecured, thereby preventing summary judgment.




ZONING - NEW HAMPSHIRE

Dembiec v. Town of Holderness

Supreme Court of New Hampshire - November 13, 2014 - A.3d - 2014 WL 5859514

Landowners brought declaratory judgment action alleging that town was estopped from enforcing zoning ordinance in regard to landowners’ property. The Superior Court dismissed petition. Landowners appealed.

The Supreme Court of New Hampshire held that zoning board lacked authority to grant relief requested, and thus landowners were not required to exhaust administrative remedies.

Zoning board lacked authority to grant relief requested by landowners in their declaratory judgment action, and therefore landowners were not required to exhaust administrative remedies before bringing declaratory judgment action asserting that town was estopped from enforcing one-dwelling-per-lot zoning ordinance with regard to landowners’ property, after zoning compliance officer advised landowners that he would not issue certificate of compliance for newly-built home on property due to existence of other dwelling unit on property, even if action required resolution of factual issues. Applicable statutes did not confer general equitable jurisdiction upon zoning board, and landowners failed to meet requirements for either a variance or an equitable waiver from ordinance’s dimensional requirements.




ZONING - NORTH CAROLINA

Byrd v. Franklin County

Court of Appeals of North Carolina - November 18, 2014 - S.E.2d - 2014 WL 6435679

Landowners appealed from a superior court’s order affirming a decision by Franklin County, made by its Board of Adjustment, determining that Landowners could not operate a shooting range on their property without a special use permit, requiring approval by the County’s Board of Commissioners.

Landowners contended that the superior court erred in its interpretation of the Franklin County Unified Development Ordinance (UDO). Specifically, Landowners argued that the UDO does not regulate shooting ranges and, therefore, they did not need any approval from the County to operate a shooting range on the Property. Landowners also argued that the superior court erred by concluding that shooting ranges were regulated by the UDO as an Open Air Game.

The Court of Appeals agreed with the Landowners that the superior court erred in its interpretation of the UDO by concluding that the shooting range fell within the Open Air Games category in the Table. However, it disagreed with the Landowners that the UDO did not regulate shooting ranges at all, and that it did in fact prohibit shooting ranges anywhere in the County by providing that “[u]ses not specifically listed in the Table [ ] are prohibited.” Accordingly, the court held that the superior court did not err in affirming the County’s order that Landowners cease and desist from operating a shooting range on the Property.




BENEFITS - PENNSYLVANIA

Stermel v. W.C.A.B.

Commonwealth Court of Pennsylvania - November 13, 2014 - A.3d - 2014 WL 5849344

Police officer petitioned for review of an adjudication of the Workers’ Compensation Appeal Board finding that city employer was entitled to recover a portion of the Heart and Lung benefits it paid officer from officer’s third party tort claim settlement.

The Commonwealth Court held that:

Motor Vehicle Financial Responsibility Law precluded officer from recovering the amount of benefits paid under the Heart and Lung Act from the responsible tortfeasor, and therefore, there could be no subrogation out of a tort recovery that did not include those benefits.




LIABILITY - PENNSYLVANIA

Zauflik v. Pennsbury School Dist.

Supreme Court of Pennsylvania - November 19, 2014 - A.3d - 2014 WL 6474931

Student who lost her leg when school district bus ran over her filed action against school district under Political Subdivision Tort Claims Act (PSTCA). District admitted liability. After jury awarded over $14 million in damages to student, the Court of Common Pleas amended verdict to $500,000 to reflect statutory cap on damages and sanctioned district $5,000 for not timely disclosing an excess insurance policy. Student appealed.

The Supreme Court of Pennsylvania held that:




BRIBERY - PENNSYLVANIA

Com. v. Moran

Supreme Court of Pennsylvania - November 20, 2014 - A.3d - 2014 WL 6491605

Defendant was convicted in the Court of Common Pleas of three counts of bribery in official and political matters. Defendant appealed.

The Supreme Court of Pennsylvania held that:

Defendant, a publicly elected official, stated to purchaser, who was purchasing land from town, that zoning approval could be expedited if purchaser paid an additional $500,000, the bribery statute did not require defendant to act with a corrupt motive, and it did not require that defendant solicit a benefit for himself, rather, benefit was defined to include situations where a public servant solicited money, gain, or an advantage for any other person or entity in whose welfare the servant was interested, and defendant sought to provide a benefit to town.




BONDS - RHODE ISLAND

Lifespan Corp. v. National Union Fire Ins. Co. of Pittsburgh, Pa.

United States District Court, D. Rhode Island - November 17, 2014 - F.Supp.3d - 2014 WL 6433361

In January of 1997, Lifespan and New England Medical Center (NEMC) executed an MOU proposing an affiliation in which Lifespan would become NEMC’s corporate parent, and NEMC would in turn become one of the hospital subsidiaries in Lifespan’s system.

At the conclusion of the litigation that ensued following the disaffiliation of the parties, NEMC and the Massachusetts Attorney General obtained a judgment against Lifespan in the amount of $29,605,282.93 stemming from breaches of fiduciary duties and gross negligence in connection with the negotiation of NEMC’s health insurer contracts and an interest rate swap transaction.

The interest rate swap was entered into in connection with the refinancing of $100 million in NEMC revenue bonds. Morgan Stanley served as underwriter of the refi. Lifespan’s CFO had a close, longstanding personal friendship with the Morgan Stanley broker who proposed the swap. Lifespan’s CFO approved the swap over the objection of NEMC’s CFO. Lifespan’s CFO neglected to disclose the relationship and was possibly motivated by his desire to join the broker’s wine club. Spoiler alert: the swap goes bad.

Lifespan sued its D&O insurers after they refused to cover its losses.

The District Court held that the insurance policy’s Unlawful Advantage Exclusion, Deliberate Fraudulent Acts Exclusion, Contractual Liability Exclusion, and Professional Services Exclusion were not applicable to Lifespan’s claim against the policy.

The court then took up the issue of whether the Securities Exclusion – pertaining to claims related to the purchase or sale of securities – applied. The Securities Exclusion reads as follows:

“[t]he Insurer shall not be liable to make any payment for Loss in connection with a Claim made against an insured …

(m) alleging, arising out of, or in any way relating to any purchase or sale of securities by the Named Organization, Subsidiary or Affiliate or Claims brought by securities holders of the Organization in their capacity as such; provided, however, this exclusion shall not apply to the issuance by the Organization of tax exempt bond debt or Claims brought by tax exempt bond debt holders.”

As the court noted, “Whether this exclusion applies depends on which law defines the term “security” and whether the interest rate swap falls within that definition.”

The court began its analysis by holding that New York law governed the swap transaction due to the choice of law provision of the Master Agreement between Morgan Stanley and NEMC.

To be a security under Commercial Code § 8–102, an interest rate swap must fulfill the requirements of subparagraphs (i) (the transferability test), (ii) (the divisibility test) and (iii) (the functional test). The court concluded that the swap fulfilled none of the tests, much less all three. Consequently, the swap was not a security, and thus the Securities Exclusion did not apply.

The court also noted that the swap would not be a security for purposes of either Rhode Island, or Federal, law.

Lastly, the court found that even if the interest rate swap was a “arising out of, or in any way relating to any purchase or sale of securities,” there would be coverage because of the tax-exempt bond debt exception to the exclusion. Exclusion 4(m) states that it “shall not apply to the issuance by the Organization of tax exempt bond debt or Claims brought by tax exempt bond debt holders.” The interest rate swap, as described by the court in the underlying suit, was “a bond refinancing proposal” presented to NEMC by Morgan Stanley. Based on these facts from the underlying suit, Lifespan had met its burden to show that the interest rate swap’s refinancing of the tax-exempt bond debt of non-profit NEMC was part of “the issuance … of tax-exempt bond debt.” Consequently, even if the interest rate swap was “arising out of, or in any way relating to any purchase or sale of securities,” there was insurance coverage because of the tax-exempt bond debt exception to Exclusion 4(m).




TAX - NEW YORK

Merry-Go-Round Playhouse, Inc. v. Assessor of City of Auburn

Court of Appeals of New York - November 18, 2014 - N.E.3d - 2014 N.Y. Slip Op. 07928

Non-profit corporation engaged in performing arts commenced proceeding for review of city’s determination that two properties used to house staff and actors employed in corporation’s seasonal theaters were not tax exempt. The Supreme Court, Cayuga County granted city’s motion, treated as one for summary judgment, and denied corporation’s cross-motion for summary judgment. Corporation appealed. The Supreme Court, Appellate Division, reversed. City appealed.

The Court of Appeals held that:

Court of Appeals holds that primary use of apartment buildings owned by non-profit corporation engaged in performing arts was in furtherance of corporation’s primary purpose of education and promoting moral or mental improvement of area residents, as required for those properties to be granted tax-exempt status. Housing was used to attract talent that would otherwise look elsewhere, living arrangements fostered sense of community, and building residents spent significant portion of their off-hours in furtherance of theater-related pursuits.




INVERSE CONDEMNATION - FLORIDA

Hussey v. Collier County

District Court of Appeal of Florida, Second District - November 14, 2014 - So.3d - 2014 WL 5900018

Francis and Mary Hussey sued Collier County claiming that the County’s amendment of its comprehensive future land use plan destroyed any reasonable economic use of their land, a large, undeveloped acreage in a rural area known as North Belle Meade. They sought compensation under the Bert J. Harris Private Property Rights Act, § 70.001, Fla. Stat. (2007) (the Harris Act), and on a theory of inverse condemnation.

The Circuit Court dismissed both causes of action with prejudice and the Husseys appealed.

The District Court of Appeal held that:




IMMUNITY - FLORIDA

Beach Community Bank v. City of Freeport

Supreme Court of Florida - November 13, 2014 - So.3d - 2014 WL 5856331

Bank that had issued loan to developer brought negligence action against city, alleging that city, in approving development of residential project, had failed to ensure that developer posted adequate security and failed to determine legitimacy of purported surety that had issued fraudulent or uncollectible letter of credit as bond for project. The Circuit Court denied city’s motion to dismiss based on sovereign immunity. City petitioned for writ of certiorari. The District Court of Appeal granted petition. Bank appealed.

The Supreme Court of Florida held that:

Action related to a discretionary function of government, rather than an operational function, and therefore city was entitled to sovereign immunity in negligence action brought by bank that had issued loan to real estate developer, alleging that city failed to ensure developer posted adequate security for completion of infrastructure and failed to conduct reasonable investigation to ascertain authenticity and adequacy of a letter of credit. City’s decision that receipt of written guarantee of security was sufficient compliance with municipal code fell within municipality’s inherent, fundamental policy-making authority.




LIABILITY - GEORGIA

City of Atlanta v. Kovalcik

Court of Appeals of Georgia - November 12, 2014 - S.E.2d - 2014 WL 5838538

Parents of passenger who died as a result of injuries sustained in rollover accident brought wrongful death action against city. The trial court denied city’s motion for summary judgment, and it appealed.

The Court of Appeals held that:




IMMUNITY - GEORGIA

Lightfoot v. Henry County School Dist.

United States Court of Appeals, Eleventh Circuit - November 10, 2014 - F.3d - 2014 WL 5803575

Public school teacher brought action against public school district and school board, alleging violations of the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA). The District Court granted summary judgment in favor of school district. Teacher appealed.

The Court of Appeals held that:

Public school district and school board were not “arms of the state” of Georgia, and thus, were not entitled to Eleventh Amendment immunity from liability, in terminated school employee’s Family and Medical Leave Act (FMLA) and Americans with Disabilities Act (ADA) claims. Although the state set minimum standards for schools and teachers, and the state provided funding to school districts and approved school district budgets, Georgia law viewed school districts and boards as political subdivisions, distinct from the state, Georgia granted school districts significant amount of autonomy, under Georgia law, school districts were subject to control and management of county boards of education, not the state, school district could levy property taxes to raise funds, and state had no obligation to pay any judgment against district or board.




TAX - ILLINOIS

In re Kane County Collector

Appellate Court of Illinois, Second District - November 6, 2014 - N.E.3d - 2014 IL App (2d) 140265

On October 25, 2010, after a public tax sale, the County of Kane and the Kane County treasurer and collector issued to Purchaser pursuant to section 21–250 of the Code, tax sale certificates for 11 tracts of land.

Purchaser later filed a motion requesting a declaration of a sale in error and a refund of its tax sale purchases because the County issued it tax sale certificates that listed a total purchase amount without specifically itemizing that amount into taxes, special assessments, interest, and costs.

The court dismissed, finding that the statute contained no requirement that the County itemize.




EMPLOYMENT - LOUISIANA

Alexander v. City of Alexandria

Court of Appeal of Louisiana, Third Circuit - November 5, 2014 - So.3d - 2014-452 (La.App. 3 Cir. 11/5/14)

Firefighter, who was terminated after his drug test results came back as diluted, appealed his termination. The Municipal Fire & Police Service Board affirmed, and firefighter appealed. The District Court affirmed, and firefighter appealed.

The Court of Appeal held that fire department satisfied statutory minimum standards for terminating firefighter who was under investigation after he delayed drug test and drug test results came back as diluted.

Firefighter signed the Firefighters’ Bill of Rights, which was a reproduction of the provisions of statute governing minimum standards during investigation, firefighter had a letter from fire chief that indicated the nature of the investigation, firefighter was provided with all required written information, he used that information to provide a rebuttal document, he had the written notice with him while he was interrogated, he knew exactly what was occurring in relation to the investigation, and through the written notice and his copies of the bill of rights, he knew the identity of all persons present at each meeting with fire chief.




TAX - MASSACHUSETTS

Community Involved in Sustaining Agriculture, Inc. v. Board of Assessors of Deerfield

Appeals Court of Massachusetts - November 10, 2014 - Slip Copy - 2014 WL 5801445

Community Involved in Sustaining Agriculture, Inc. (CISA) appealed the decision of a single member of the Appellate Tax Board (board) that CISA was not exempt from property taxes. The board concluded that CISA was not a charitable organization as defined in the statute because its dominant purpose is to benefit farmers, and “any benefit derived by the public [is] incidental.” On appeal, CISA argued that the board erred in construing the statute too narrowly.

The Appeals Court agreed, concluding that CISA more closely resembled a traditionally charitable organization than it did a commercial enterprise. “On the facts before it, the board erred in concluding that the primary beneficiaries of CISA’s services are its members, and any public benefit is incidental. Rather, the facts establish that CISA’s programs benefit an indefinite number of people, many of whom are not members, and any benefit to farmers ‘is but the means adopted for this purpose.'”




TAX - MASSACHUSETTS

Cape Cod Shellfish & Seafood Co., Inc. v. City of Boston

Appeals Court of Massachusetts, Suffolk - November 12, 2014 - N.E.3d - 2013 WL 9868281

Lessees brought declaratory judgment action against city seeking determination that lessees were not liable for real estate taxes on properties. The Superior Court granted summary judgment in favor of city. Lessees appealed.

The Appeals Court held that lessees who remained on Massachusetts Port Authority property after lease terms expired remained liable as lessees for real estate taxes.

Business lessees who remained on property owned by Massachusetts Port Authority after end of lease terms constituted lessees, and therefore continued to remain liable as lessees for real estate taxes assessed during holdover period, where holdover provision in the leases set out the conditions of a continued tenancy after expiration of the lease term, and expressly stated that any holding over was subject to the applicable provisions of the lease.




TAX - PENNSYLVANIA

Reading Housing Authority v. Board of Assessment Appeals of Berks County

Commonwealth Court of Pennsylvania - November 12, 2014 - A.3d - 2014 WL 5839919

The Court of Common Pleas of Berks County held that the subject property, an apartment building owned by the Reading Housing Authority (RHA), which houses a mix of 20% low-income and 80% market-rate tenants, was immune from real estate tax. The Board of Assessment Appeals of Berks County appealed.

The Commonwealth Court affirmed, holding that the RHA, which undertook the mixed-use project at issue pursuant to Section 10.1 of the Housing Authorities Law, was using the property for an essential public and governmental purpose such that it is not taxable.




LIABILITY - RHODE ISLAND

Berman v. Sitrin

Supreme Court of Rhode Island - November 10, 2014 - A.3d - 2014 WL 5818980

Tourist, who was severely injured in fall from public walkway along oceanside cliff, brought negligence action against state and other defendants.

The Supreme Court of Rhode Island held that:




EMINENT DOMAIN - TEXAS

City of Blue Mound v. Southwest Water Co.

Court of Appeals of Texas, Fort Worth - November 13, 2014 - S.W.3d - 2014 WL 5878039

City filed condemnation proceedings for the acquisition of the real property and fixtures of the Blue Mound Water and Wastewater System – a privately owned and operated water and wastewater system that was currently serving residents of the City. The City’s condemnation petition alleged that the City sought to exercise its powers of eminent domain under Texas Local Government Code section 251.001 and Texas Property Code chapter 21 to acquire the entire water and wastewater system.

The Court of Appeals held that no statutory procedures exist permitting a municipality’s condemnation in a Texas district court of a privately-owned public utility as a going concern, affirming the trial court’s grant of summary judgment against the City.




MUNICIPAL ORDINANCE - WASHINGTON

Morawek v. City of Bonney Lake

Court of Appeals of Washington, Division 2 - November 13, 2014 - P.3d - 2014 WL 6061489

Dog owner appealed hearing examiner’s dangerous dog designation. The Superior Court upheld the dangerous dog designation, and dog owner appealed.

The Court of Appeals held that hearing examiner’s finding that owner’s dog killed neighbor’s cat without provocation was not supported by substantial evidence, as required to uphold dangerous dog designation.

Hearing examiner’s finding that owner’s dog killed neighbor’s cat without provocation was not supported by substantial evidence, as required to uphold dangerous dog designation, even though the killing occurred on neighbor’s property, as required to satisfy the “location” element of the dangerous dog definition. Nobody saw how the fight between dog and cat began, the cat roamed freely and passed through dog owner’s front yard regularly, dog had been trained to stay on owner’s property, and it was possible cat had provoked the attack by scratching dog’s nose when dog stuck it under a bush on owner’s property.




EMPLOYMENT - ALABAMA

Wright v. City of Mobile

Court of Civil Appeals of Alabama - October 24, 2014 - So.3d - 2014 WL 5394526

Police dispatcher sought judicial review of city’s decision to terminate her for disciplinary reasons. The Circuit Court upheld city’s decision to discipline dispatcher, but determined that she should only have been suspended. Dispatcher appealed.

The Court of Civil Appeals held that:

County personnel board rule authorizing pre-disciplinary hearings did not require official with decision-making power to attend city police dispatcher’s pre-disciplinary hearing and thus, failure of mayor to attend hearing did not void dispatcher’s discipline. Rule, in referring to the official, or the designated representative of the official charged with responsibility of making disciplinary decision, specifically authorized pre-disciplinary hearings to be conducted by either the official charged with making the disciplinary decision or designated representative of that official, and fact that mayor was identified as designated appointing authority did not amount to declaration that he was designated representative.




BANKRUPTCY - ALABAMA

PNC Bank, N.A. v. Presbyterian Retirement Corp., Inc.

United States District Court, S.D. Alabama, Southern Division - November 4, 2014 - Slip Copy - 2014 WL 5596646

Presbyterian Retirement operates Westminster Village, a continuing care retirement community. Presbyterian defaulted on its obligations, which included loans from PNC Bank and revenue bonds guaranteed by Infirmary Health System. Infirmary Health made good on the guarantee, paying out $13.5 million to the bondholders. Presbyterian is contractually obligated to reimburse Infirmary Health. Both PNC Bank and Infirmary Health hold security interests in Westminster Village.

PNC Bank commenced this lawsuit against Presbyterian, seeking expedited appointment of a receiver to manage Westminster Village pending a contemplated foreclosure sale that PNC Bank has noticed for March 2015. PNC did not name Infirmary Health as a party.

Infirmary Health moved to intervene, expressing profound disagreement with PNC Bank’s proposed strategy of appointing a receiver to manage Westminster Village. Infirmary Health asserted that the pathway charted by PNC Bank would impair the value of the facility rather than preserve it, thereby damaging Infirmary Health’s interests in such collateral.

The District Court granted Infirmary Health’s motion to intervene, finding that Infirmary Health had met its burden of showing that existing parties and any duly appointed receiver might not adequately represent its interests.




IMMUNITY - ALABAMA

Walker v. Jefferson County Bd. of Educ.

United States Court of Appeals, Eleventh Circuit - November 4, 2014 - F.3d - 2014 WL 5575607

In two unrelated cases, school employees brought actions against county boards of education, challenging employment decisions. Boards moved to dismiss on Eleventh Amendment immunity grounds. In one case, the United States District Court denied motion, while, in the other, the District Court, granted motion. Parties appealed and appeals were consolidated.

The Court of Appeals held that school boards in Alabama counties were not arms or alter egos of state, and thus did not have Eleventh Amendment immunity.




IMMUNITY - CONNECTICUT

Haynes v. City of Middletown

Supreme Court of Connecticut - November 4, 2014 - A.3d - 314 Conn. 303

Student’s mother, on her own behalf and as student’s parent and next friend, brought action against city, seeking damages for injuries student had allegedly sustained when classmate at high school pushed him into broken locker. After jury returned verdict in favor of plaintiffs, the Superior Court granted city’s motion to set aside verdict and rendered judgment in favor of city on governmental immunity grounds. Plaintiffs appealed.

The Supreme Court of Connecticut held that:




CONTRACTS - GEORGIA

Effingham County v. Roach

Court of Appeals of Georgia - October 30, 2014 - S.E.2d - 2014 WL 5471744

Developer, through his bankruptcy trustee, filed breach of contract action arising out of county’s failure to bring water and sewer utilities to property. The trial court denied county’s motion for summary judgment. County appealed.

The Court of Appeals held that:

Even if impact fee provision in contract between developer and county was invalid, provision was severable, and thus the remainder of contract was enforceable, including county’s obligation to provide water and sewer utilities to property. Contract specifically provided that invalid or unenforceable parts of contract were severable, contract contained several promises by each party other than the promise to pay impact fees, and those other obligations were severable.

County waived sovereign immunity over developer’s breach of contract claim alleging county breached obligation to bring water and sewer utilities to property, where developer’s action was based on enforceable contract.

Genuine issue of material fact existed as to whether no-damages-for-delay clause in contract between county and developer precluded developer’s claim for damages resulting from delay due to county’s protracted discussions with city about which governmental entity was going to provide water and sewer utilities to property, thus precluding summary judgment on developer’s breach of contract claim against county.




ANNEXATION - ILLINOIS

Union Drainage Dist. No. 1 of Towns of Pana, Assumption, Christian County v. Wilhour

Appellate Court of Illinois, Fifth District - October 31, 2014 - Not Reported in N.E.3d - 2014 IL App (5th) 130440-U

Drainage District filed a petition to annex certain tracts of land and, thereafter, to assess the parcels pursuant to an annual drainage district assessment of $9 per acre. District also sought to assess certain lands currently located in the drainage district at $9 per acre. The circuit court of Christian County denied District’s request to annex the tracts of land and further ruled that those lands already located within the district could not be assessed at $9 per acre.

The Appeals Court affirmed, holding that the Drainage District failed to establish what benefit the Objectors’ lands would receive from being annexed and assessed.




SCHOOLS - LOUISIANA

Oliver v. Orleans Parish School Bd.

Supreme Court of Louisiana - October 31, 2014 - So.3d - 2014-0329 (La. 10/31/14)

Employees of parish school board who were terminated by reduction in force (RIF) after failing schools in parish were transferred to Recovery School District (RSD) filed putative class action against school board, state, Louisiana Department of Education (LDOE), and State Board of Elementary and Secondary Education for wrongful termination and also asserted claim against LDOE for tortious interference with employment contracts.

The Supreme Court of Louisiana held that:




ZONING - MAINE

Town of Madawaska v. Cayer

Supreme Judicial Court of Maine - November 4, 2014 - A.3d - 2014 ME 121

Property owners filed a special motion to dismiss town’s amended complaint alleging zoning violations pursuant to the anti-SLAPP (Strategic Lawsuit Against Public Participation) statute. The Superior Court denied motion. Owners appealed.

The Supreme Judicial Court of Maine held that town’s zoning enforcement action against property owners for a violation of shoreland zoning ordinance was not an appropriate occasion for application of the anti-SLAPP statute.

Nothing in the anti-SLAPP statute or its history expressed or implied that it would protect property owners from the town’s efforts to enforce an ordinance limiting the number of trailers that they were permitted to maintain on their land.




MUNICIPAL ORDINANCE - MAINE

Dubois Livestock, Inc. v. Town of Arundel

Supreme Judicial Court of Maine - November 4, 2014 - A.3d - 2014 ME 122

Following town’s code enforcement officer’s notice of violation of agricultural composting operator’s conditional use permit, operator appealed to town’s Zoning Board of Appeals. Board denied his appeal and upheld notice of violation. Operator challenged board’s decision and the Superior Court affirmed Board’s decision. Operator appealed.

The Supreme Judicial Court of Maine held that:

Even if agricultural composting operator was a “farm” for purposes of Agriculture Protection Act, producing agricultural products, as defined by the Act, on site, the Act did not preempt town’s solid waste facilities zoning ordinance as applied to operator. Although Act prohibited a municipality from determining that a farm’s method of operation violated a local ordinance if the farm had used best management practices, operator made no showing that it was following best practices when it violated the ordinance by failing to report its annual intake to town or to allow town representatives to inspect its premises.

Solid Waste Act did not preempt town’s solid waste facilities zoning ordinance as applied to agricultural composting operator, where the standards in the ordinance were not stricter than those in the Act, the ordinance’s definitions were not inconsistent with those in the Act, and the ordinance’s provisions did not frustrate the purpose of the Act.




TAX - OHIO

Olentangy Local Schools Bd. of Edn. v. Delaware Cty. Bd. of Revision

Supreme Court of Ohio - October 28, 2014 - N.E.3d - 2014 -Ohio- 4723

School board sought review of decision of the board of tax appeals that auction sale price of property was the best evidence of its true value for tax purposes.

The Supreme Court of Ohio held that:




ZONING - OHIO

SP9 Ent. Trust v. Brauen

Court of Appeals of Ohio, Third District, Allen County - November 3, 2014 - Slip Copy - 2014 -Ohio- 4870

Following receipt of notice of violation (NOV) of zoning resolution related to operation of rolloff business on property zoned for general business uses, operator of rolloff business and owner of property on which business was operated filed declaratory judgment action against township, claiming that business’s use of property was permitted use under resolution, and in the alternative, that business’s operation on property was nonconforming use for which no permit was necessary. The Court of Common Pleas denied township summary judgment, and following bench trial, dismissed complaint. Operator and owner appealed, and township cross-appealed.

The Court of Appeals held that:




ZONING - OHIO

Cleveland Clinic Found. v. Cleveland Bd. of Zoning Appeals

Supreme Court of Ohio - November 5, 2014 - N.E.3d - 2014 -Ohio- 4809

Hospital landowner petitioned for judicial review of a decision by city board of zoning appeals (BZA) denying hospital’s application to construct a helipad because proposed helipad was prohibited use for local retail business district. The Court of Common Pleas reversed. Board appealed. The Court of Appeals reversed. Hospital sought further review, which was granted.

The Supreme Court of Ohio held that:

Helipad was accessory use of hospital that was permitted in city’s multi-family district, and therefore was permitted use in area zoned local retail business district, where zoning ordinances contained no express prohibition on helipads, every other hospital in city had a helipad, and 88% of hospitals in the metropolitan area had helipads.




BENEFITS - OREGON

Miller v. City of Portland

Supreme Court of Oregon - October 30, 2014 - P.3d - 2014 WL 5474513

City firefighters who had suffered disabling injuries at work brought breach of contract action against city after city discontinued disability benefits. The Circuit Court granted summary judgment to city. Firefighters appealed.

The Supreme Court of Oregon held that:

A firefighter’s “required duties,” as used in city charter provision allowing for disability benefits to a firefighter who is unable to perform required duties due to an employment-related injury or illness, refers to the core duties, that is, those that are necessary or essential, of whatever job classification the firefighter held at time he became disabled, not to whatever subset of duties within firefighter’s former job classifications that city chooses to require after firefighter becomes disabled.




IMMUNITY - VIRGINIA

McBride v. Bennett

Supreme Court of Virginia - October 31, 2014 - S.E.2d - 2014 WL 5487632

Bicyclist’s estate brought negligence action against police officers after police vehicle struck and killed bicyclist. The Circuit Court granted summary judgment to officers. Estate appealed.

The Supreme Court of Virginia held that police officers exercised their judgment and discretion while driving police vehicle in an emergency manner in response to dispatch report of domestic disturbance, as would trigger application of sovereign immunity.




EMPLOYMENT - VIRGINIA

Payne v. Fairfax County School Bd.

Supreme Court of Virginia - October 31, 2014 - S.E.2d - 2014 WL 5487610

Food and nutrition services manager at middle school, who was suspended for allegedly violating public schools’ regulations, brought declaratory judgment action, seeking declaration that statute, governing grounds and procedure for suspensions, required school boards to conduct a hearing prior to suspending an employee without pay. The Circuit Court granted the school board’s motion for summary judgment, and manager appealed.

The Supreme Court of Virginia held that:




EMPLOYMENT - WASHINGTON

City of Medina v. Skinner

Court of Appeals of Washington, Division 1 - November 3, 2014 - P.3d - 2014 WL 5571310

City sought judicial review of city civil service commission order modifying police officer’s discipline and award of back pay as a remedy. The Superior Court granted city’s application for a statutory writ of review, and officer appealed.

The Court of Appeals held that:

Statutory writ of certiorari was not available to city as means of seeking superior court’s review of decision of city civil service commission, in which commission found that city did not have cause to terminate police officer, and instead of termination, ordered 60 days without pay, demotion to patrol officer, and back pay. The legislature created a procedure for appeal that gave only the disciplined police officer the right to appeal, and did not provide the city with a right to appeal the commission’s decision.

City civil service commission acted illegally to the extent it purported to retain jurisdiction over employment dispute to award back pay to police officer, after the commission suspended police officer in lieu of removal, set a 60-day period of suspension without pay, and demoted officer to patrol officer. The commission only had the authority granted by statute, which provided it with the authority to affirm, modify, or reverse discipline, but which did not authorize it to award damages or other remedies such as back pay, and if the city does not honor its compensation obligations to officer, his remedy is in court, not before the commission.




MUNICIPAL ORDINANCE - WASHINGTON

State, Dept. of Ecology v. Wahkiakum County

Court of Appeals of Washington, Division 2 - November 4, 2014 - P.3d - 2014 WL 5652318

Department of Ecology brought action against county, seeking injunction and declaratory judgment alleging that county’s ordinance banning use of most common class of biosolids within county conflicted with state law and, thus, violated state constitution. The Superior Court granted summary judgment in favor of county. Department appealed.

The Court of Appeals held that:




PENSIONS - FLORIDA

Brown v. Denton

District Court of Appeal of Florida, First District - October 21, 2014 - So.3d - 39 Fla. L. Weekly D2203

In February 2013, the Jacksonville Association of Fire Fighters filed suit against the City of Jacksonville and the Jacksonville Police and Fire Pension Fund Board of Trustees (“Board”) in District Court.

All parties voluntarily sought mediation in the federal case. For the next few months, several closed-door mediation sessions were held at a stipulated mediator’s office. No party informed the federal court that the negotiations would entail collective bargaining or that the provisions of the Florida Statutes and Constitution may require such collective bargaining to be conducted in public. There was no public notice of the mediation sessions nor was any transcript made of the proceedings.

The end result of the private mediation sessions was a Mediation Settlement Agreement (MSA), which, on its face, changed the specific, defined pension benefits of City employees in the Unions. The parties were to use their best efforts to obtain approval from their respected officials necessary for implementation of the MSA.

Newspaper editor brought action for declaratory and injunctive relief, alleging that closed-door federal mediation sessions violated the state Sunshine Law.

The circuit court found that the Board acted as the Unions’ representative and bargaining agent in the negotiations or the Unions themselves participated to some degree in negotiating the MSA. As such, the circuit court held that the federal mediation sessions violated the Sunshine Law, voided the MSA ab initio, and enjoined “the parties from conducting further proceedings entailing collective bargaining of the police officer and firefighter pension funds in private outside of the sunshine.”

The District Court of Appeal affirmed.




MUNICIPAL ORDINANCE - FLORIDA

Anderson v. City of St. Pete Beach

District Court of Appeal of Florida, Second District - October 15, 2014 - So.3d - 39 Fla. L. Weekly D2180

Challenger brought action against city, alleging amendment to city’s comprehensive plan was void due to failure to publish notice, and that city violated the Sunshine Law. The Circuit Court rejected the challenge to the amendment, and granted summary judgment in favor of city on challenger’s Sunshine Law claim. Challenger appealed.

The District Court of Appeal held that:




LIABILITY - GEORGIA

Strauss v. City of Lilburn

Court of Appeals of Georgia - October 24, 2014 - S.E.2d - 2014 WL 5394151

Pedestrian brought action against city seeking damages stemming from trip and fall on city sidewalk. The trial court granted summary judgment in favor of city. Pedestrian appealed.

The Court of Appeals held that genuine issue of material fact existed regarding whether city had superior knowledge of hazard caused by two-tiered sidewalk, precluding summary judgment.

“I knew I was coming up to the steps, so I paid attention. I just didn’t see the step there…. The next thing, I just sort of-I was going-I just shot out like that, and my head was going towards the car that was parked there, and I thought I was going to hit the car head-on. And then I just splatted on the sidewalk.”




SCHOOLS - LOUISIANA

Louisiana Federation of Teachers, et. al. v. State of Louisiana

Supreme Court of Louisiana - October 24, 2014 - So.3d - 2014-0691 (La. 10/24/14)

In 2012, the Louisiana Legislature passed House Bill 974, which was enacted as Act 1 of 2012 (“Act 1”). Act 1 is a comprehensive repeal and reenactment of the State’s education laws. Act 1 amended and reenacted nine statutes, enacted two statutes, and repealed twenty-nine statutes.

Teachers filed a petition for declaratory judgment against the State, alleging that Act 1 was passed in violation of the “single object” requirement of La. Const. Art. III, § 15(A) and (C).

The Supreme Court of Louisiana held that Act 1 does not violate the single object requirement of La. Const. art. III, § 15(A).

The court found that analysis of the statutory provisions encompassed by Act 1 led to the conclusion that the main general purpose of Act 1 was improving elementary and secondary education through tenure reform and performance standards based on effectiveness and that all of the provisions of Act 1 were naturally connected with, and incidental or germane to the unifying object of improving education through tenure reform and performance standards based on effectiveness.




SPECIAL ASSESSMENTS - MICHIGAN

Landon v. City of Flint

Court of Appeals of Michigan - October 21, 2014 - Not Reported in N.W.2d - 2014 WL 5364172

In 2012, Flint’s emergency manager established a special assessment district to help pay for improvements to the street-lighting system in the city. The assessment was spread equally among all parcels in the city, for a total cost of $66.05 per parcel.

Petitioner contested the special assessment on his properties, and initiated this suit before the Tax Tribunal. He argued that the special assessment was unlawful because: (1) it did not raise the market value of his property and was not proportional to the value of the services provided; (2) it did not constitute an “improvement” as required by statute; and (3) it included a special assessment for garbage collection, despite the fact that it professed to only raise funds for streetlight maintenance. Respondent stated that: (1) petitioner failed to provide sufficient evidence to overcome the statutory presumption that special assessment districts are valid; (2) the special assessment was consistent with the law; and (3) Flint’s garbage disposal services were paid for by a fee imposed on landowners within the city, not the special assessment district, and petitioner offered no evidence to show otherwise.

The Tribunal agreed with respondent and dismissed petitioner’s case. In a written opinion, it held that: (1) petitioner’s case involved only one parcel, as he failed to pay the filing fee for the other parcels he owned, and thus did not invoke the Tribunal’s jurisdiction over those parcels; (2) petitioner did not establish that the cost of the assessment was disproportionate to its benefit; (3) MCL 117.4d(1)(a) allowed the city to levy a special assessment to cover the operational and maintenance costs of street lighting; and (4) the garbage collection service was provided by a fee, not by the instant special assessment district.

The Court of Appeals affirmed.




PROPERTY - NEW HAMPSHIRE

Lynch v. Town of Pelham

Supreme Court of New Hampshire - October 24, 2014 - A.3d - 2014 WL 5395008

Former owner of property purchased by town brought action against town for declaratory and injunctive relief, asserting that town violated covenants in deed conveying real property to town. The Superior Court granted town’s motion to dismiss. Former owner appealed.

The Supreme Court of New Hampshire held that:




PUBLIC UTILITIES - NEW JERSEY

New Jersey Natural Gas Co. v. Borough of Red Bank

Superior Court of New Jersey, Appellate Division - October 28, 2014 - A.3d - 2014 WL 5431175

Natural gas utility brought action against borough and special improvement district, seeking injunctive and declaratory relief from borough’s refusal to issue construction permits so that utility could remove underground gas regulators and replace them with above-ground regulators. The Superior Court entered summary judgment in favor of utility. Borough and district appealed.

The Superior Court, Appellate Division, held that:




SCHOOLS - NEW MEXICO

Moses v. Skandera

Court of Appeals of New Mexico - October 27, 2014 - P.3d - 2014 WL 5454834

Action was brought against State of New Mexico Public Education Department, challenging constitutionality of provisions of Instructional Material law (IML), providing for the purchase and distribution of instructional material to private schools. The District Court entered summary judgment in favor of State. Plaintiffs appealed.

The Court of Appeals held that:




AUCTION RATE SECURITIES - NEW YORK

Rotz v. Van Kampen Asset Management

Supreme Court, New York County, New York - October 22, 2014 - Slip Copy - 45 Misc.3d 1211(A) - 2014 N.Y. Slip Op. 51537(U)

Shareholders in investment funds organized as business trusts under Massachusetts law (the “Trusts”) brought shareholder derivative suits alleging that the Trusts and the Trusts’ former investment advisers (“Adviser”) breached their fiduciary duties and wasted corporate assets by causing the trusts to redeem auction rate preferred securities (“ARPS”) at their liquidation value, at a time when the market valued the shares at a lower rate. Plaintiffs further alleged that Morgan Stanley, the parent company of the former investment advisers, aided and abetted the breaches.

These liquidations occurred in 2008 when the ARS market dried up. The Trusts, with the approval of their boards, used tender option bonds (TOBs) or debt financing to redeem the ARPS. Plaintiffs allege that TOBs and debt financing increased the costs and the risks to the Trusts without concomitant benefit. Specifically, TOBs forced the Trusts to sell lower grade bonds into a distressed market and to hold municipal bonds, which paid a lower interest rate and prevented the Trusts from making other investments which would have been more profitable. TOBs also required the Trusts to post more assets to satisfy the debt coverage ratio than the ARPS did and cost additional fees. Plaintiffs alleged that the Trusts could have marked the ARPS down below their liquidation value and redeemed them at market value at much lower cost to investors.

Plaintiffs contended that the Adviser gave priority to their own interests in determining to redeem the ARPS at liquidation value and, thus, breached their fiduciary duties to the common shareholders. Plaintiffs alleged that the redemption of the ARPS at liquidation value benefited ARPS holders—largely institutional investors and high net worth individuals, and broker-dealers—and that the Adviser sought to preserve their business relationships with those investors to the detriment of the shareholders of the Trusts.

In April 2010, plaintiffs sent letters to the Trusts demanding that the boards “take action” against the Adviser and the officers of the Trusts for alleged breaches of fiduciary duty, aiding and abetting of those breaches, and corporate waste.

The Trusts responded by forming special litigation committees (“SLCs”) comprised of independent trustees. The SLCs engaged independent counsel, conducted lengthy investigations, and produced voluminous reports concluding that it was not in the best interests of the Trusts to pursue litigation and recommending that the Trusts move to dismiss the pending lawsuits.

All defendants contended that, because the trustees were independent and conducted an investigation through the SLCs, the decision not to prosecute this action was protected by the business judgment rule, and the mandatory language of MBCA Section 7.44 compelled dismissal of this action.

Plaintiffs contended that the SLCs’ investigations and reports, upon which the determination not to proceed with litigation was indisputably based, were not undertaken in good faith after a reasonable inquiry “because the evidence overwhelmingly disproves the SLC’s conclusions.”

The court noted that where a majority of independent trustees reject a plaintiff’s demand to pursue derivative litigation based on the report of an independent SLC, the business judgment rule applies to the decisions of both the trustees and the SLCs.

The court held that plaintiffs’ claims must be dismissed. Applying the burden shifting standards of MBCA section 7.44 and the business judgment rule in reviewing the SLCs’ investigations and the independent trustees’ determinations to reject plaintiffs’ demands based the recommendations, the court holds that plaintiffs had failed to rebut the Trusts’ showing and to demonstrate that the independent trustees’ determinations were not made in good faith after reasonable inquiry. The investigation process was reasonably comprehensive, and the SLCs’ findings, which the trustees’ adopted, were not illogical and could be attributed to a rational business judgment.

The court noted that the plaintiffs misconstrued the standard under the Massachusetts statute for judicial review of the trustees’ determinations. Plaintiffs contended repeatedly that the findings and recommendations of the SLCs were against the weight of the evidence. However, it is not the courts’ role to weigh the evidence or assess the correctness of the SLCs’ or trustees’ reasoning, where, as here, the decision of disinterested trustees, based on a comprehensive report of a disinterested special litigation committee, is protected by the business judgment rule.




LIABILITY - NEW YORK

Brunero v. City of New York Dept. of Parks and Recreation

Supreme Court, Appellate Division, First Department, New York - October 30, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 07444

The City of New York and the Central Park Conservancy entered into the 2006 Central Park Agreement, a contract between the City and the Conservancy, a nonprofit organization, in which they acknowledged that they had formed an effective “public/private partnership.” Under the Agreement, the Conservancy is required to provide specified maintenance services in Central Park to the “reasonable satisfaction” of the City, and the City is broadly required to indemnify the Conservancy from liability.

In a negligence action against the City, plaintiff moved for leave to amend the complaint to add the Conservancy as a defendant, arguing that it was united in interest with the City. Since the statute of limitations had run as to the Conservancy, plaintiff argued that the relation back doctrine applied.

The Appeals Court held that:




BONDS - OHIO

Kozel v. Andrews

Court of Appeals of Ohio, Fifth District, Tuscarawas County - October 28, 2014 - Slip Copy - 2014 -Ohio- 4793

In October, 2010, Twin City Hospital – a small, rural acute-care facility – filed Chapter 11 Bankruptcy. The Bankruptcy Trustee subsequently sued Twin City’s former board members, alleging that they had acted improperly by issuing approximately $17.3 million in tax exempt revenue bonds to fund new construction and renovations to Twin City and to refinance the hospital’s outstanding long-term obligations while its finances were in poor condition.

The trial court entered summary judgment in favor of the defendants. Trustee appealed, claiming that issues of fact existed that should be resolved by a jury. Trustee argued that the trial court’s finding that defendants proved their case by a preponderance of the evidence precluded summary judgment and that it was error for the trial court to factor the trial standard of clear and convincing evidence into its decision to grant defendants’ motion for summary judgment.

The Court of Appeals held that:




ZONING - SOUTH DAKOTA

In re Conditional Use Permit No. 13-08

Supreme Court of South Dakota - October 29, 2014 - N.W.2d - 2014 S.D. 75

Landowners of property across the road from proposed agronomy facility appealed approval by county commission of applicant’s conditional use permit for the facility. The Circuit Court affirmed. Landowners appealed.

The Supreme Court  of South Dakota held that:




BALLOT INITIATIVES - UTAH

Cook v. Bell

Supreme Court of Utah - October 24, 2014 - P.3d - 2014 UT 46

Initiative proponents brought declaratory judgment action against Lieutenant Governor and County Clerk, alleging amended provisions for placing a local initiative on the ballot were unconstitutional. The District Court found the amendments did not violate any constitutional provisions, and the proponents appealed.

The Supreme Court of Utah held that:




PENSIONS - FLORIDA

Parker v. Board of Trustees of City Pension Fund for Firefighters & Police Officers in City of Tampa

Supreme Court of Florida - October 23, 2014 - So.3d - 2014 WL 5365843

Retired firefighter, as class representative, brought action challenging city pension fund’s board of trustees’ decision not to issue supplemental benefit checks. Following settlement, firefighter sought attorney fees on behalf of himself and the class. The Circuit Court awarded fees with a contingency fee multiplier of 2.0. The board appealed. The District Court of Appeal affirmed in part and reversed in part and certified question of great public importance.

The Supreme Court of Florida held that:

Prevailing party attorney fees provisions of statutes governing municipal firefighter and police pensions permitted firefighters to recover attorney fees in action brought to obtain benefits under firefighter pension plan established by local law, where, although the pension plan at issue was a local law plan created by special act of the legislature, that plan existed within and was subject to framework for local plans established by statutes governing municipal firefighter and police pension plans.

Firefighters were not required to specify under which statutory provision or provisions attorney fees were sought, and therefore firefighters pleaded claim for attorney fees with sufficient specificity in class action to obtain benefits under local law firefighter pension plan. Merely pleading a claim for attorney’s fees was sufficient to notify opposing party and allow it to consider claim in decision on whether to proceed.




ZONING - GEORGIA

Newton County v. East Georgia Land and Development Co., LLC

Supreme Court of Georgia - October 20, 2014 - S.E.2d - 2014 WL 5313949

Developer sued county and county officials, seeking writ of mandamus based on claim that zoning ordinance was invalid.

The Superior Court entered summary judgment for county, and developer appealed. The Supreme Court reversed and remanded. On remand, the Superior Court entered summary judgment for developer and ruled that ordinance was invalid. County defendants appealed.

The Supreme Court of Georgia held that ordinance that purported to incorporate non-existent maps was void from its enactment.




MUNICIPAL GOVERNANCE - GEORGIA

City of Stockbridge v. Stuart

Court of Appeals of Georgia - October 21, 2014 - S.E.2d - 2014 WL 5334067

Mayor brought declaratory judgment action against city, alleging city council’s actions in extending city administrator’s contract were illegal and ultra vires, and sought injunctive relief and attorney fees. The trial court granted mayor a permanent injunction, declared the actions of the council void, and awarded mayor attorney fees. City appealed.

The Court of Appeals held that:

Council lacked the authority to unilaterally extend city administrator’s employment contract with city beyond the end of the contract term, and thus, any extension beyond the contract term was ultra vires, or void. While city had the power to enter into contracts with private persons under city charter, the position of city administrator existed by virtue of the mayor’s delegation of his authority and his power to appoint officers and employees of city, and thus, any employment of city administrator beyond that provided for in charter and ordinance, was governed by the same procedure set forth in the charter for the mayor’s delegation of authority and power to appoint.




ANNEXATION - GEORGIA

City of Brookhaven v. City of Chamblee

Court of Appeals of Georgia - October 23, 2014 - S.E.2d - 2014 WL 5369089

City, to which land had been designated for annexation pursuant to General Assembly’s local act, filed petition seeking declaratory judgment and injunctive relief against city that sought to annex same land pursuant to “100% method” of annexation. The trial court granted summary judgment in favor of city to which land had been designated under local act. City that sought annexation through “100% method” appealed.

The Court of Appeals held that:

General Assembly’s local act, which identified annexation area for inclusion within city’s corporate limits and directed county elections superintendent to hold referendum to allow a vote on whether designated area should be annexed, went into effect when it was signed by the Governor to initiate the referendum process on the defined annexation area, and the referendum was a condition precedent for annexation, even though annexation, if approved, was not supposed to become effective until end of year. Although language providing that the act would not become effective until end of year was inartfully worded, the act provided that if voters disapproved the annexation, the act not only would “not become effective,” it would also be “automatically repealed,” and there would be no need to repeal an act that was not effective.

City was prohibited from attempting to annex land through “100% method” of annexation, requiring application by all owners of the land, during referendum process of local act by General Assembly, pursuant to which legislature had designated same land for annexation to another city upon voter approval of referendum. “100% method” was not intended to restrict General Assembly’s constitutionally granted annexation powers, allowing city to annex land through “100% method” before referendum took place would, in essence, allow it to unilaterally effectuate an amendment to the local act, and “100% method” did not allow city to race the General Assembly to annex land that had already been designated for annexation under local law.

Enforcement of local act that provided for annexation of land to city upon voter approval of referendum did not violate constitutional one-subject-matter rule that all legislation have a single subject matter by simultaneously deannexing land from city that had purported to annex same land through alternative “100% method” of annexation and annexing land to city upon approval of referendum. City that purported to annex land through “100% method” lacked authority to annex that land during pendency of referendum process, and thus no annexation through the “100% method” had occurred and no violation of one-subject-matter rule arose.




CONTRACTS - ILLINOIS

Lake County Grading Co., LLC v. Village of Antioch

Supreme Court of Illinois - October 17, 2014 - N.E.3d - 2014 IL 115805

Grading subcontractor, who had not been paid for work on subdivisions by general contractor, brought common law third-party beneficiary breach of contract action against village.

The Circuit Court granted subcontractor summary judgment, and village appealed. The Appellate Court affirmed. Village petitioned for leave to appeal.

The Supreme Court of Illinois held that bonds procured under Public Construction Bond Act were deemed to contain both completion and payment provisions.

Paragraph of the Public Construction Bond Act mandating that a political subdivision of the State, whenever making a contract for public works in excess of the specified dollar threshold, must have the contractor deliver “a bond” with good and sufficient sureties does not require the furnishing of a “completion bond” and a “payment bond” but, rather, the procurement of “a bond” for the public work.




LABOR - MASSACHUSETTS

Town of Athol v. Professional Firefighters of Athol

Supreme Judicial Court of Massachusetts - October 23, 2014 - N.E.3d - 2014 WL 5369123

Town filed complain seeking to vacate labor arbitration award, determining that town had violated collective bargaining agreement with firefighters’ union by unilaterally increasing copayment amounts that union members paid for medical services under their health insurance plans.

The Superior Court Department confirmed the portion of the arbitration award compelling the parties to bargain collectively over changes to copayment rates, but vacated two remedial aspects of the award. Union appealed, The Appeals Court affirmed. Union applied for further appellate review.

The Supreme Judicial Court of Massachusetts held that arbitrator did not exceed her authority by ordering town to restore prior rates of contribution and requiring restitution.




ZONING - MASSACHUSETTS

Pelullo v. Croft

Appeals Court of Massachusetts - October 22, 2014 - N.E.3d - 2014 WL 5343599

Abutting landowner appealed zoning board of appeals’ approval of permit to construct a single family home. The Land Court entered summary judgment in favor of abutting landowner. Applicant for permit appealed.

The Appeals Court held that:

Diagonal measurement of lot depth was not consistent with ordinary meaning of “lot depth,” in zoning bylaw that required a minimum lot depth of 125 feet for the construction of a single family home in an “RSA” residential zoning district, where lot was more or less rectangular, use of a diagonal line to measure the depth of a rectangular lot was contrary to the ordinary and accepted meaning of the term, and there was no evidence that there was an established practice of using a diagonal line.




SPECIAL ASSESSMENTS - MINNESOTA

City of Paynesville v. Rutten

Court of Appeals of Minnesota - October 20, 2014 - Not Reported in N.W.2d - 2014 WL 5314622

In June 2013, City commenced action against individual members of LLC formed to hold/develop subdivision lots for unpaid interest on deferred special assessments.

Members answered, admitting the nonpayment but denying any individual obligation to pay deferred special assessments or interest on the special assessments. The city subsequently moved for summary judgment arguing that under the plain, unambiguous language of the contracts, appellants are liable for the unpaid assessments and interest. The District Court granted summary judgment to City and the Members appealed.

The Court of Appeals reversed, holding that the in rem nature of special assessments precluded personal liability for special assessments against the property and that the district court misconstrued the relevant agreements to unambiguously state that appellants agreed to be personally liable for special assessments and annual assessment interest against the property.

“Because there is no language in the agreements stating that appellants agreed to be personally liable for the assessments and interest, the agreements do not unambiguously confer liability to appellants, and the district court’s conclusion to the contrary is erroneous. The city, which drafted the transfer agreement, is essentially a party to the project as it provided the infrastructure knowing the risks of an ever-changing economy and that this is a long-term project with many lots to sell. The city-drafted transfer agreement does not create individual liability against appellants as there is no separate writing or specific language in the agreement which evidences any intent to impose personal liability. Had the city desired to hold Rutten and Rodenwald individually liable for assessments and interest, the city could have incorporated specific language to that effect, or had the individuals execute a personal guaranty separate from the transfer agreement. And the attorney for the city, who drafted the transfer agreement, acknowledged at oral argument that the agreements could have been drafted better. Therefore, we conclude that the district court erred by granting summary judgment in favor of the city on the basis that the agreements unambiguously confer personal liability to appellants for the assessments and interest.”




EMINENT DOMAIN - MISSOURI

City of Kansas City v. Powell

Missouri Court of Appeals, Western District - October 7, 2014 - S.W.3d - 2014 WL 4976980

City filed a petition in condemnation, seeking to condemn various properties to build a police station and crime lab for public use. The Circuit Court granted the city’s condemnation petition, and following a trial on exceptions to the damages assessed by three appointed commissioners, a jury determined the fair market value of landowner’s property to be $55,000. Landowner appealed.

The Court of Appeals held that:




IMMUNITY - NEW JERSEY

BEZR Homes, L.L.C. v. Township of East Greenwich

Superior Court of New Jersey, Appellate Division - October 21, 2014 - Not Reported in A.3d - 2014 WL 5326152

BEZR Homes appealed from the grant of summary judgment in favor of township’s municipal engineers – Remington & Vernick Engineers and Kenneth Ressler, an engineer with Remington. BEZR argued that the trial court erroneously ruled that Ressler and Remington were public employees under the Tort Claims Act (TCA).

The appeals court affirmed, holding that the Remington defendants were in fact public employees, and thus the TCA’s two-year statute of limitations applied.




ZONING - NEW YORK

Colin Realty Co., LLC v. Town of North Hempstead

Court of Appeals of New York - October 16, 2014 - N.E.3d - 2014 N.Y. Slip Op. 07008

Owner of retail building brought hybrid Article 78 proceeding and declaratory judgment action against town, town’s zoning board of appeals (ZBA), ZBA members, owner of neighboring building, and prospective operator of proposed restaurant in neighboring building, challenging ZBA’s granting, for proposed restaurant, of variances from town code’s parking and loading/unloading restrictions, and alleging that proposed restaurant required a use variance rather than an area variance.

The Supreme Court, Nassau County, denied the petition and dismissed the proceeding/action on the merits. Owner of retail building appealed. The Supreme Court, Appellate Division, affirmed. Leave to appeal was granted.

The Court of Appeals held that:

 




IMMUNITY - NORTH CAROLINA

Davis v. City of Greensboro, N.C.

United States Court of Appeals, Fourth Circuit - October 22, 2014 - F.3d - 2014 WL 5355566

Current and retired city police officers and firefighters brought actions alleging that city’s failure to pay them certain wages and benefits violated federal and state constitutions, Fair Labor Standards Act (FLSA), and state law. The District Court granted in part and denied in part city’s motions to dismiss, and it appealed. Appeals were consolidated.

The Court of Appeals held that:




BRIDGES - OHIO

Independence v. Office of the Cuyahoga Ct. Executive

Supreme Court of Ohio - October 23, 2014 - N.E.3d - 2014 -Ohio- 4650

City appealed county’s decision that bridge was not one of general and public utility, such that county was not responsible for bridge maintenance and repairs. The Court of Common Pleas reversed. County appealed. The Court of Appeals affirmed. County sought discretionary review.

The Supreme Court of Ohio held that:

Reliable, probative, and substantial evidence supported conclusion of Court of Common Pleas in city’s administrative appeal that road that connected village and city was one of general and public utility, and thus county was responsible for maintaining and repairing bridge that was located on road. Evidence indicated that road and bridge provided access to national park and only motor-vehicle access to railroad station, and bridge provided only means for accessing portion of road in city, two streets to which road connected in city, and businesses and facilities located off those streets.




TAX - OHIO

Cincinnati City School Dist. Bd. of Edn. v. Testa

Supreme Court of Ohio - October 23, 2014 - N.E.3d - 2014 -Ohio- 4647

Board of education appealed tax commissioner’s decision both denying board’s motion to intervene and granting exemption to city regarding real-property taxes concerning property that constituted part of city’s convention center. The Board of Tax Appeals (BTA) dismissed appeal. Board appealed.

The Supreme Court of Ohio held that:

Board of education failed to comply with statute governing complaints against applications for real property tax exemptions and thus failed to invoke jurisdiction of Board of Tax Appeals (BTA) regarding tax commissioner’s decision both denying board’s motion to intervene and granting exemption to city regarding real-property taxes concerning property that constituted part of city’s convention center, where board failed to file request to be informed of exemption applications and failed to file timely statement of its intent to submit evidence and participate in any hearing.




MUNICIPAL GOVERNANCE - OKLAHOMA

Edwards v. City of Sallisaw

Supreme Court of Oklahoma - October 21, 2014 - P.3d - 2014 OK 86

City police chief brought an action for declaratory and injunctive relief against city, city manager, and the mayor after city board of commissioners passed an ordinance removing police chief’s supervisory and management authority over the police department. The District Court issued a permanent injunction against enforcement of the ordinance. Defendants appealed.

The Supreme Court of Oklahoma held that:

Elected home-rule city police chief did not have inherent authority to manage and supervise police department without interference from other local municipal powers, where duty to supervise and manage the police department was not expressly granted in city charter, rather, charter expressly vested only one duty, enforcement of state law and municipal ordinances, with the police chief.

Process afforded to police chief by city board of commissioners, in passing ordinance that removed police chief’s supervisory and management authority over police department, complied with due-process protections even though a property right was not implicated. Police chief was not removed from office and retained emoluments of office, and he was given adequate notice of the proposed ordinance and the opportunity to be heard at a public meeting held to discuss the ordinance.

Home-rule city charter which directed city board of commissioners to set the powers and duties of an elected police chief allowed the board to limit those powers and duties by removing the police chief’s supervisory and management authority over the police department by ordinance, where the ordinance came from a grant of authority in the city charter, and was not contrary to statute, precedent, or Constitution.




ANNEXATION - OREGON

City of Damascus v. Brown

Court of Appeals of Oregon - October 22, 2014 - P.3d - 2014 WL 5370026

City, city manager and city resident filed petitions for judicial review of applications filed by property owners pursuant to legislation permitting landowners with property located on the boundary of the City of Damascus to withdraw that property from the jurisdiction of the city.

The Court of Appeals held that:

Legislation permitting landowners with property located on the boundary of the City of Damascus to withdraw that property from the jurisdiction of the city constituted an unconstitutional delegation of legislative authority to private individuals. Legislation contained no criteria or expression of legislative policy as to how that delegated authority was to be exercised by the landowners, and legislation delegated to self-interested private landowners the fact-finding function of determining their own eligibility under the law without any meaningful procedural safeguards.




SCHOOLS - PENNSYLVANIA

Edison Learning, Inc. v. School Dist. of Philadelphia

United States District Court, E.D. Pennsylvania - October 21, 2014 - Slip Copy - 2014 WL 5347364

Edison Learning, Inc. – a private education services contractor – brought suit against the School District of Philadelphia for breach of contract, claiming that the School District must reimburse Edison Learning for its legal fees and settlement costs from a prior suit in which a School District student was assaulted the “Viruet litigation”).  The School District moved for summary judgment, claiming sovereign immunity.

Edison sought its legal fees and costs of settlement pursuant to two related theories. First, it alleged that the School District breached its contractual obligation to provide “appropriate safety and police protection” to Viruet, which resulted in the Viruet litigation and Edison’s settlement of the claims against it.   Second, Edison claimed that during the Viruet litigation the School District orally agreed to indemnify Edison for the lawsuit.

The District Court held that School District was entitled to sovereign immunity, as Edison’s claims were properly construed as recovery for Viruet’s tort damages, not as a breach of contract.

 

 




LAND USE - WASHINGTON

Friends of North Spokane County Parks v. Spokane County

Court of Appeals of Washington, Division 3 - October 21, 2014 - P.3d - 2014 WL 5361986

After board of county commissioners amended its acceptance of dedicated parkland to permit construction of a road serving an adjoining residential development, county taxpayers challenged the legality of the board’s action. The Superior Court dismissed action on standing and for failure to state a claim. Taxpayers appealed.

The Court of Appeals held that:

County taxpayers had standing to challenge legality of county’s amendment to its acceptance of a dedicated parkland to permit construction of a road serving adjoining residential development based solely upon their status as taxpayers and their prior demand on state attorney general to take action.

County received legally sufficient consideration to support its grant of an easement through dedicated parkland, to private real estate developer in order to construct a road, and thus easement was not a gift of public property in violation of state constitution, where county had concluded that the road would be beneficial to area traffic circulation and would relieve pressure on a state highway intersection.




IMMUNITY - ALABAMA

Ray v. Judicial Corrections Services, Inc.

United States District Court, N.D. Alabama, Southern Division - October 9, 2014 - Slip Copy -2014 WL 5090723

Plaintiffs filed suit against Defendants Judicial Collection Services (“JCS”) and the City of Childersburg (“Childersburg”). Plaintiffs alleged various constitutional claims under 42 U.S.C. § 1983 arising out of the contractual relationship between JCS and Childersburg for probation and fee collection services. Plaintiffs sought declaratory and injunctive relief as well as money damages.

Plaintiffs served a subpoena for testimony and production of documents on nonparty Larry Ward, a former part-time municipal court judge for Childersburg and various other municipalities. Otherwise, Ward’s full-time employment over the relevant time-period was as a municipal bond salesman with Morgan Keegan & Company, now known as Raymond James Financial.

Plaintiffs sought various documents from Ward, including (1) any documents relating to JCS whatsoever; (2) procedural manuals or other documents concerning any of the municipal courts at which Ward served; (3) copies of K1 and W–2 forms showing income earned by Ward as a municipal court judge for any municipality in Alabama for the last five years; (4) awards received by Ward for service as a municipal judge; (5) contracts between Ward and any of the municipalities he served; (6) documents showing remuneration from bond activity in any of the municipalities Ward served; (7) documents showing rating adjustments on bonds for any of the municipalities Ward served; and (8) awards received by Ward for participation in bond issues in Alabama for the past five years.

Ward filed a Motion to Quash Subpoena and Motion for Protective Order, claiming judicial immunity.

The District Court held that judicial immunity shielded Ward, with the one exception that he was subject to discovery related to his nonjudicial involvement in negotiating, recommending, and executing the contract for services between JCS and Childersburg.




BANKRUPTCY - CALIFORNIA

City of San Bernardino, Cal.

United States Bankruptcy Court, C.D. California, Riverside Division - October 16, 2013 - 499 B.R. 77670 Collier Bankr.Cas.2d 629 - 58 Bankr.Ct.Dec. 163

California Public Employee Retirement System (CalPERS) objected to city’s eligibility for Chapter 9 relief and to its good faith in filing petition.

The Bankruptcy Court held that:

City’s actions, when faced with inevitable default upon its obligations during time of decreased municipal revenues, in preparing and presenting budget report at public meeting of mayor and common council, preparing and presenting staff report to common council, conducting open public meeting discussions regarding its financial future, voting to declare a fiscal emergency and approving resolutions permitting it to file for Chapter 9 relief, preparing a cash flow analysis report, preparing fiscal emergency plan, which was presented to common council and approved prepetition, and preparing and discussing pre-pendency plan at common council meetings, objectively demonstrated its desire to effect a plan, as mandated by Chapter 9 eligibility requirements.

City acted in “good faith” when, in response to financial crisis precipitated by dramatic increase in mortgage foreclosures and diminished municipal revenues, it filed for Chapter 9 relief just before it ran out of funds to pay its employees without impairing its contracts, though city did not engage in meaningful prepetition negotiations with its creditors and did not seriously consider alternatives to filing for Chapter 9 relief.

Even assuming that municipality exhibited lack of good faith in filing for Chapter 9 relief without engaging in any meaningful prepetition negotiation with its creditors or seriously considering other alternatives to alleviate its financial distress, court would exercise its discretion to refrain from dismissing case, where only one creditor was objecting to municipality’s Chapter 9 filing, municipality’s cash deficit was real and unchallenged, and dismissal would leave city in financial quagmire without orderly court oversight.




PUBLIC UTILITIES - CALIFORNIA

Guerrero v. Pacific Gas & Electric Company

Court of Appeal, First District, Division 3, California - October 10, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 11, 809

Ratepayers sued Pacific Gas & Electric Co. for deceptively representing to the California Public Utilities Commission and the public how much revenue it required to provide safe and reliable natural gas service. The class action complaint sought restitution and disgorgement of profits for PG&E’s wrongful diversion of more than $100 million in rates it collected over a thirteen year period that should have been expended on natural gas pipeline safety projects.

The Superior Court sustained demurrer without leave to amend. Ratepayers appealed.

The Court of Appeal held that ratepayers’ action would interfere with the Public Utilities Commission’s duties and thus was barred.

PUC exercised its authority to adopt a regulatory policy in connection with natural gas utility’s alleged diversion of funds that should have been expended on natural gas pipeline safety projects, as required for a lawsuit against utility based on the alleged diversions to be barred by PUC’s exercise of exclusive jurisdiction, where the PUC established rates for utility’s natural gas transmission operations in five different rate proceedings during the period when funds allegedly were diverted, and PUC initiated four regulatory investigative proceedings after a pipeline explosion.

Ratepayers’ putative class action against natural gas utility for restitution and disgorgement of profits for allegedly diverting funds that should have been expended on natural gas pipeline safety projects would interfere with PUC’s exercise of its regulatory authority in establishing rates for utility’s natural gas transmission operations and initiating regulatory investigative proceedings after a pipeline explosion, and thus ratepayers’ action was barred, where the scope of one of PUC’s investigations included ascertaining “whether safety violations have occurred, and if so to impose fines and remedies,” and the PUC made findings that ratepayers had not been subject to unreasonable costs, and that ratepayers ended up paying rates lower than might have been reasonable due to the absence of the needed safety improvement projects.




EMINENT DOMAIN - GEORGIA

Pennington v. Gwinnett County

Court of Appeals of Georgia - October 9, 2014 - S.E.2d - 2014 WL 5032375

Landowners filed action against county, alleging that county confiscated value of lease with cellular telephone company, which constituted an improper taking by inverse condemnation, and other claims. The trial court granted summary judgment in favor of county. Landowners appealed grant of summary judgment on inverse condemnation claim.

The Court of Appeals held that landowners had no property right that was taken by county.

Landowners, who had option contract with cellular telephone company to install tower on their property, had no property right that was taken by county when it entered into agreement with company to install tower on county’s nearby property, and thus landowners failed to support inverse condemnation claim against county for alleged lost business opportunity. Landowners did not have a lease with company, but rather merely had expectation of lease, which was extinguished when company chose not to exercise its option, as was its right.




LIABILITY - GEORGIA

Georgia Regional Transp. Authority v. Foster

Court of Appeals of Georgia - October 10, 2014 - S.E.2d - 2014 WL 5068706

Injured bus passenger brought personal injury action against Regional Transit Authority. The State Court denied Regional Transit Authority’s motion for judgment on the pleadings, which was based on the statute of limitations. Regional Transit Authority applied for interlocutory appeal, which was granted.

The Court of Appeals held that tolling provision applicable to claims against municipal corporations did not apply.

Statute tolling limitations period applicable to claim against municipal corporation during time demand for payment is pending did not apply to injured bus passenger’s personal injury claim against Regional Transit Authority, even though Tort Claims Act stated that other tolling provisions were applicable to claims brought under Act. Only tolling provisions that could be harmonized with Act were applicable, and tolling provision could not be harmonized since its purpose was to encourage municipal compliance with statutory 30-day deadline to reply to demands for payment, while state agencies like Regional Transit Authority had no corresponding obligation to respond to ante litem notices.




TAX - OHIO

Kohl's Illinois, Inc. v. Marion Cty. Bd. of Revision

Supreme Court of Ohio - October 8, 2014 - N.E.3d - 2014 -Ohio- 4353

Property owner appealed decision of county board of revision that dismissed property owner’s valuation complaint concerning real property tax assessment. The Board of Tax Appeals (BTA) affirmed. Property owner appealed.

The Supreme Court of Ohio held that:

TIF agreement’s no-contest covenant, which precluded developer and property owners from contesting assessed valuations of improvements for real property tax purposes, did not impose jurisdictional limitation on county BOR regarding property owner’s valuation complaint. Source of covenant’s legal force was not statutory.

County commissioners and BOE, as beneficiaries of TIF agreement’s no-contest covenant, which precluded developer and property owners from contesting assessed valuations of improvements for real property tax purposes, had burden of advancing covenant as defense to property owner’s valuation complaint in property owner’s appeal before BTA concerning dismissal of complaint by county BOR, and thus property owner was not required to establish that covenant did not bar complaint.

TIF agreement’s section allowing property owners to contest certain taxes, assessments, and government charges did not contradict agreement’s no-contest covenant, which precluded developer and property owners from contesting assessed valuations of improvements for real property tax purposes. Covenant addressed only valuation for property-tax purposes to extent that it determined amount of service payments by setting value of improvement, and section addressed other taxes and charges that might have become lien on property.




EMINENT DOMAIN - INDIANA

Snyder v. Town of Yorktown

Court of Appeals of Indiana - October 10, 2014 - N.E.3d - 2014 WL 5088691

Landowner’s inverse condemnation claim against town was dismissed by the trial court based upon her failure to join her mortgagee, a known lienholder of the property, as a party to the action.

The Court of Appeals reversed, holding that the purpose of joining interested parties in a condemnation proceeding is to protect the rights of those parties, not to shield defendants from potential liability and that the joinder of lienholders was not mandatory.




ZONING - MAINE

Remmel v. City of Portland

Supreme Judicial Court of Maine - October 16, 2014 - A.3d - 2014 ME 114

Residents brought action against City to challenge its approval of a conditional zoning agreement (CZA), claiming the CZA was inconsistent with City’s comprehensive plan and violated state statute limiting conditional rezoning. The Superior Court entered summary judgment in favor of residents. City appealed.

The Supreme Judicial Court, Alexander, J., held that:

Conditional zoning agreement that permitted renovation of residential space on three floors of historical building for use by nonresident employees of software development company was consistent with City’s comprehensive plan. Comprehensive plan required preservation of unique character of area in which building was located but also recognized as goal the promotion of economic climate that increased job opportunities and overall economic well being, and, in the approved CZA, City approved the rezoning only after attaching conditions to ensure that the CZA was consistent with the comprehensive plan.

Conditional zoning agreement that permitted renovation of residential space on three floors of historical building for use by nonresident employees of software development company was in basic harmony with existing and permitted uses and thus did not violate provision of zoning ordinance statute requiring rezoned areas to be consistent with the existing and permitted uses within the original zones. Existing uses of the area included operation of nursery schools, private clubs, daycare facilities, and group homes, which had the potential to be more disruptive than an office with a maximum of 14 employees and limited visits by the public.




MUNICIPAL ORDINANCE - MONTANA

City of Missoula v. Armitage

Supreme Court of Montana - October 9, 2014 - P.3d - 2014 MT 274

Defendant entered conditional guilty plea in municipal court to operating a vehicle with a blood alcohol concentration of .08 or more and moved to suppress evidence obtained as result of traffic stop. The municipal court denied motion. Defendant appealed. The District Court affirmed. Defendant appealed.

The Supreme Court of Montana held that:




EMINENT DOMAIN - NEVADA

Buzz Stew, LLC v. City of North Las Vegas

Supreme Court of Nevada - October 10, 2014 - Slip Copy - 2014 WL 5144768

Buzz Stew, LLC, purchased a 20–acre parcel of land located in North Las Vegas in 2002. Around this same time, the City of North Las Vegas was preparing to construct a flood waters drainage system that would traverse Buzz Stew’s property. The City offered to purchase an easement across Buzz Stew’s land, but Buzz Stew refused the offer. In 2003, the City publicly announced its intent to condemn the portion of the land needed for the project. A condemnation action was not filed, however, because the City was unable to secure construction funding.

Notwithstanding its inability to proceed with the project, the City failed to publicly retract its prior public announcement of its intent to condemn the parcel. Buzz Stew subsequently sold the land in 2004 to a third party. In the seller’s disclosures clause in the sale contract, Buzz Stew informed the purchaser of the City’s demand for a drainage easement, and Buzz Stew retained the right to any proceeds resulting from a condemnation of the area proposed in the easement. That purchaser eventually resold the property to a party who thereafter granted the City an easement to accommodate the water drainage project.

Buzz Stew subsequently filed a complaint against the City for inverse condemnation and precondemnation damages. Buzz Stew argued that it had a property interest in the parcel because it reserved an easement over the project site in its land sale contract.

The Supreme Court of Nevada held that Buzz Stew did not retain a property interest following the sale of the parcel, and was therefore not entitled to bring an inverse condemnation action.

The plain language of the sales contract merely notified the purchaser that its title may be subject to a future drainage easement and reserved to Buzz Stew only the right to proceeds arising from a future condemnation action. It did not reserve a property interest to Buzz Stew.




SCHOOLS - NEW YORK

Gervais v. Board of Educ. of East Aurora Union Free School Dist.

Supreme Court, Appellate Division, Fourth Department, New York - September 26, 2014 - 120 A.D.3d 1556 - 992 N.Y.S.2d 593 - 2014 N.Y. Slip Op. 06414

Former teachers initiated Article 78 proceeding, seeking, inter alia, a judgment requiring school district to place them on the preferred eligibility list for their respective areas of tenure. The Supreme Court, Erie County, determined that denial of teachers’ rights of placement on preferred eligibility list was arbitrary and capricious, and reinstated teachers to preferred eligibility list. School district appealed.

The Supreme Court, Appellate Division, held that:

School district was required to place teachers on preferred eligibility list for possible reemployment in a full-time position after reducing their full-time teaching positions to part-time positions. By reducing their full-time teaching positions to part-time positions, school district effectively abolished full-time positions and created new part-time positions, and teachers’ rejection of part-time positions, which resulted in termination of their employment with school district, did not render teachers ineligible for placement on preferred eligibility list.




PUBLIC UTILITIES - OHIO

In re Application of Ohio Power Co.

Supreme Court of Ohio - October 7, 2014 - N.E.3d - 2014 -Ohio- 4271

Organization of industrial customers of electric utility appealed order of Public Utilities Commission order, permitting utility to recoup underrecovered transmission costs from all customers over three years on nonbypassable basis.

The Supreme Court of Ohio held that:

Public Utilities Commission’s phase-in authority, under statute allowing Commission to authorize any just and reasonable phase-in of any electric distribution utility rate or price, included authority, in proceedings to review and adjust electric utility’s transmission cost recovery rider, to allow utility to recover underrecovered transmission costs from all customers over three years on a nonbypassable basis. Statute did not limit exercise of Commission’s authority to the proceedings that had set the rate or price, but instead allowed Commission to invoke its phase-in authority outside of standard service offer proceedings.

Public Utilities Commission did not engage in unlawful retroactive ratemaking, in proceedings to review and adjust electric utility’s transmission cost recovery rider, by allowing utility to recover underrecovered transmission costs from all customers over three years on a nonbypassable basis. Even if the Commission’s order did amount to retroactive ratemaking, it was not unlawful because Commission had statutory authority to phase in the collection of rates through a nonbypassable surcharge.

Revenue lost due to regulatory delay was not at issue in proceedings to review and adjust electric utility’s transmission cost recovery rider, and thus Commission did not violate rule against retroactive ratemaking by allowing utility to recover underrecovered transmission costs from all customers over three years on a nonbypassable basis. Only issue was whether utility could recover costs from all customers or only from “non-shopping” customers who took generation service from the incumbent distribution utility instead of buying it on the market, and was not a case where Commission altered present rates to make up for dollars lost during the pendency of Commission proceedings.




EMPLOYMENT - OHIO

State ex rel. Mun. Constr. Equip. Operators' Labor Council v. Cleveland

Supreme Court of Ohio - October 9, 2014 - N.E.3d - 2014 -Ohio- 4364

Union, on behalf of permanent city employee who was subject to discharge only for cause, sought a writ of mandamus to compel the city civil service commission to appoint a neutral referee to conduct a disciplinary hearing at which employee could challenge his discharge. The Court of Appeals and union appealed.

The Supreme Court of Ohio held that union was entitled to writ of mandamus.

Union, on behalf of permanent city employee who was subject to discharge only for cause, was entitled to writ of mandamus to compel the city civil service commission to appoint a neutral referee to conduct disciplinary hearing at which employee could challenge his discharge pursuant to civil service commission rules.

Employee had a clear legal right, as a nonprobationary employee, to disciplinary hearing, city was under a clear legal duty to appoint a referee to conduct disciplinary hearing, and employee had no adequate remedy at law because commission’s decision to deny employee’s request for a disciplinary hearing was not appealable, as commission’s proceeding was not a quasi-judicial proceeding subject to administrative appeal.




MUNICIPAL ORDINANCE - WASHINGTON

Johnson v. City of Seattle

Court of Appeals of Washington, Division 1 - October 13, 2014 - P.3d - 2014 WL 5144611

After resident’s citations issued by city for parking more than three vehicles on his single-family lot were affirmed by hearing examiner, resident filed petition against city under Land Use Petition Act (LUPA), contesting each of his citations, and filed claims for damages under § 1983, alleging violations of procedural due process. The Superior Court affirmed two of resident’s citations, remanded one citation for mitigation hearing, and granted city summary judgment on § 1983 claims. Resident appealed.

The Court of Appeals held that:

Resident, who had vested right to legal nonconforming use to park five additional cars on his single-family lot, was not in violation of municipal code for failing to limit number of vehicles parked on his lot to three, and thus was not subject to citation by city for such violation, even though resident had not established nonconforming use with Department of Planning and Development and did not have permit for nonconforming use. Establishment procedure did not create legal use, but rather procedure merely verified that legal use existed and had not been abandoned or discontinued at any intervening time.

City violated resident’s right to procedural due process by preventing him from asserting his legal nonconforming use to park five additional cars on his single family lot as defense to city’s citations for violating municipal code by having more than three cars on his lot, such that resident had valid claim for damages under § 1983, since resident was denied meaningful opportunity to be heard. Resident had right to avoid erroneous monetary penalties and vested right to nonconforming use, which was property interest, risk of depravation of resident’s interest was apparent, and no administrative burden would result from providing additional safeguards to ensure that resident would avoid penalties for legal use of his property.




LIABILITY - WASHINGTON

Lee v. Metro Parks Tacoma

Court of Appeals of Washington, Division 2 - October 7, 2014 - P.3d - 2014 WL 5011120

Park visitor brought personal injury action against municipal park agency after suffering injury at park. The Superior Court granted summary judgment to agency. Visitor appealed.

The Court of Appeals held that:

Court of Appeals holds that statutory waiting period of 60 days between presentment of claim and commencement of tort action against a local government entity is a procedural requirement for which substantial, rather than strict, compliance is required.




BANKRUPTCY - ALABAMA

Bennett v. Jefferson County, Ala.

United States District Court, N.D. Alabama, Southern Division - September 30, 2014 - B.R. - 2014 WL 4926261

County sewer ratepayers appealed Bankruptcy Court’s confirmation of county’s Chapter 9 plan, asserting the plan unconstitutionally gave the Bankruptcy Court the power to approve rate hikes and violated their constitutional right to avoid “overly burdensome debt” without due process. County moved for partial dismissal. Ratepayers moved to consolidate.

The District Court held that:




EMINENT DOMAIN - ARKANSAS

City of Jacksonville v. Nixon

Court of Appeals of Arkansas - September 24, 2014 - S.W.3d - 2014 Ark. App. 485

Property owners challenged compensation awarded for portions of land condemned as part of highway construction project. The Circuit Court awarded $73,868.84 in damages. City appealed.

The Court of Appeals held that:




MUNICIPAL GOVERNANCE - CALIFORNIA

Golightly v. Molina

Court of Appeal, Second District, Division 3, California - September 25, 2014 - Cal.Rptr.3d - 2014 WL 4756948

Taxpayer brought action against county and board of supervisors for waste of public funds, violation of the Brown Act, declaratory relief for ultra vires acts, and conflicts of interest, alleging that procedure by which county enters into Social Program Agreements (SPAs) with social service organizations that provide social services to county residents is subject to the Brown Act‘s open meeting requirements. The Superior Court entered summary judgment for county and in separate judgment denied taxpayer’s request for attorney’s fees. Taxpayer appealed.

The Court of Appeal held that:




LIABILITY - DISTRICT OF COLUMBIA

Allen v. District of Columbia

District of Columbia Court of Appeals - September 25, 2014 - A.3d - 2014 WL 4746406

After prospective firefighter participated in required physical ability test (PAT), fell ill, and died, firefighter’s parents filed wrongful death and survival action against District, alleging gross negligence of emergency medical technician (EMT) in charge of evaluating firefighter candidates at PAT. The Superior Court granted District summary judgment. Parents appealed.

The Court of Appeals held that:

Public duty doctrine was applicable in wrongful death and survival action against District of Columbia, stemming from death of prospective firefighter after he participated in physical ability test (PAT), with respect to conduct by emergency medical technicians (EMT) who were assigned to provide on-site vital-signs monitoring of firefighter candidates during administration of PAT. Any alleged acts or omissions of EMT in responding to prospective firefighter’s health crisis after he completed PAT were not part of PAT program, but rather were part of District’s provision of emergency services, such that any negligence of EMT in treating firefighter occurred once her role evolved from basic monitor to emergency responder.




LIABILITY - GEORGIA

Board of Regents of University System of Georgia v. Myers

Supreme Court of Georgia - October 6, 2014 - S.E.2d - 2014 WL 4959033

Visitor who injured her ankle when she stepped in an unrepaired pothole in college campus parking lot brought negligence action against the Board of Regents of the University System of Georgia, based on allegedly unsafe condition of parking lot. The Superior Court granted Board’s motion to dismiss for lack of subject matter jurisdiction, based on plaintiff’s failure to provide sufficient ante litem notice to the Board. Plaintiff appealed. The Court of Appeals reversed. Board appealed.

The Supreme Court of Georgia held that notice did not comply with ante litem provisions.

Ante litem notice did not sufficiently identify the “amount of loss claimed” so as to comply with ante litem notice statute, as required for recovery, where visitor did not include any dollar amount of claimed loss, even though extent of her knowledge and belief at time of notice included, at a minimum, medical expenses she had incurred thus far.




DEDICATION - GEORGIA

Unified Government of Athens-Clarke Co. v. Stiles Apartments, Inc.

Supreme Court of Georgia - October 6, 2014 - S.E.2d - 2014 WL 4958235

Apartment owner brought suit against city to assert ownership over parking lot that was built by agreement partly on apartment owner’s property and partly on city’s property, and city counterclaimed for declaratory judgment, ejectment, and breach of contract. The Superior Court granted apartment owner’s request for interlocutory injunction prohibiting city from asserting ownership or control over parking lot. City appealed. The Supreme Court affirmed. The Superior Court then determined the agreement under which parking lot was built was not intended to create or reserve public property rights in land owned by apartment owner. City appealed.

The Supreme Court of Georgia held that:




MUNICIPAL ORDINANCE - GEORGIA

Trop, Inc. v. City of Brookhaven

Supreme Court of Georgia - October 6, 2014 - S.E.2d - 2014 WL 4958232

Sexually-oriented entertainment club brought action against city, claiming city’s newly enacted sexually-oriented business code was unconstitutional, and that club was exempt from it based on a settlement with county. The trial court granted city’s motion for judgment on the pleadings, and club appealed.

The Supreme Court of Georgia held that:

City’s sexually-oriented business ordinance did not unconstitutionally infringe on sexually-oriented entertainment club’s free speech rights. The ordinance was content-neutral in light of the city council’s goal of combatting pernicious secondary effects coupled with a lack of evidence to establish improper motive on the part of city council. The ordinance furthered an important governmental interest of attempting to preserve the quality of urban life and reducing criminal activity which was unrelated to any desire to suppress speech, any incidental restriction on speech caused by the ordinance was no greater than essential to further the governmental interests. The ordinance’s application was narrowly tailored to modes of expression implicated in the production of negative secondary effects, those establishments that provided alcohol and entertainment that required an adult entertainment license.




ANNEXATION - INDIANA

Certain Martinsville Annexation Territory Landowners v. City of Martinsville

Court of Appeals of Indiana - October 2, 2014 - N.E.3d - 2014 WL 4925679

On August 12, 2012, the City of Martinsville adopted Ordinance 2012–1667, amending the initial proposal and reducing the amount of land to be annexed to 3,030 acres surrounding the City. Remonstrators – landowners in the annexed territory – filed a petition remonstrating against the proposed annexation. A trial was conducted, and after hearing evidence and arguments, the trial court entered its judgment on January 15, 2014 against the Remonstrators and upholding the annexation. The Remonstrators appealed.

On appeal, the Remonstrators argued that the trial court erred in denying their challenge to the proposed annexation by the City. The City, however, contended that the Remonstrators’ appeal should be dismissed as moot because the annexation had become final, and therefore, there was no effective relief that the court could render to the Remonstrators.

The Court of Appeals held that challenges to the annexation of land will become moot when the annexation becomes effective unless the remonstrators request an injunction or a stay ordering the municipality to not proceed with the proposed annexation pending appeal.

Therefore, absent an injunction or a stay of the annexation procedure, if an annexation becomes final before a review of the matter can be completed, any challenge to a proposed annexation will become moot.




MUNICIPAL ORDINANCE - INDIANA

Citizens Action Coalition of Indiana, Inc. v. Town of Yorktown, Ind.

United States District Court, S.D. Indiana, Indianapolis Division - September 30, 2014 - Slip Copy - 2014 WL 4908098

At issue was whether municipal ordinance prohibiting of door-to-door canvassing and solicitation after the hour of 9:00 p.m. or sunset, whichever is earlier, comported with the First Amendment.

The District Court held that the ordinance was neither narrowly tailored to the Town’s legitimate government interests, nor did it provide ample alternative methods for communication. Accordingly, the Ordinance cannot survive constitutional scrutiny on its face or as applied.




LIABILITY - MARYLAND

Francis v. Johnson

Court of Special Appeals of Maryland - October 6, 2014 - A.3d - 2014 WL 4976170

Minor, through his parents, filed action against three police officers, alleging violation of Maryland Declaration of Rights, false imprisonment, battery, and assault. Following jury award of $465,000 in compensatory damages and $35,000 in punitive damages, the Circuit Court granted, in part, officers’ motion for judgment notwithstanding the verdict (JNOV), striking jury’s $1,000 punitive damages award against one officer and finding the award of compensatory damages to be excessive. Minor agreed to remittitur, and officers appealed.

The Court of Special Appeals held that:




EMINENT DOMAIN - MASSACHUSETTS

Rodman v. Com.

Appeals Court of Massachusetts, Norfolk - October 7, 2014 - N.E.3d - 2014 WL 4975948

Condemnees brought action against state, seeking to recover greater damages than pro tanto award. The Superior Court entered judgment requiring condemnees to repay difference between pro tanto award and lesser amount that was awarded by jury and issued order denying condemnees’ motion for new trial. Condemnees appealed.

The Appeals Court held that:

While a judge in an eminent domain proceeding may infer that a property owner’s failure to develop the property in accordance with what the property owner now claims to be its best and highest use suggests that the potential use was not reasonably likely, a judge is not bound to that inference where other evidence suggests that a reasonable buyer would recognize the reasonable likelihood of the potential use.

That a potential use of property is prohibited or restricted by law at the time of the taking of the property does not preclude its consideration in awarding damages in an eminent domain proceeding if there was a reasonable prospect of rezoning or acquiring a special permit.

Judge has a range of discretion in an eminent domain proceeding in deciding whether to admit evidence that a potential use of the property is reasonably likely in the foreseeable future, particularly when that determination turns on whether the grant of a special permit is reasonably likely.

Task for the judge in an eminent domain proceeding is to avoid unreasonably restricting the efforts of the property owner fairly to show the effect of the taking upon the market value of the affected property at the time of the taking without permitting damages to be inflated by unduly detailed and confusing proof of speculative future uses of property having no very direct relationship to market values at the time of the taking.

Trial court’s error of excluding evidence as to property’s potential uses, which included hotel, manufacturing, and warehouse uses, was not harmless in condemnees’ action to recover greater damages than pro tanto award. Condemnees were unfairly precluded from giving testimony bearing upon relevant aspects of value, and excluded testimony impacted credibility of testimony of condemnees’ engineering and appraisal experts.

Pro tanto award regarding taking of property by state Department of Highways was inadmissible in condemnees’ action to recover greater damages than pro tanto award, as the award was in essence a settlement offer.




ZONING - MINNESOTA

500, LLC v. City of Minneapolis

Supreme Court of Minnesota - September 25, 2013 - 837 N.W.2d 287

Applicant brought declaratory judgment action seeking determination that application to heritage-preservation commission for a certificate of appropriateness was a written request related to zoning, such that city had only 60 days to approve or deny application. The District Court granted summary judgment in favor of city. Applicant appealed.

The Supreme Court of Minnesota held that:




PUBLIC UTILITIES - MINNESOTA

Minnesota Energy Resources Corp. v. Commissioner of Revenue

Minnesota Tax Court, Regular Division, Ramsey County - September 29, 2014 - 2014 WL 4953754

Minnesota Energy Resources Corporation (“MERC”) is a gas pipeline distribution system located in Minnesota.

MERC’s real property is assessed by the county, city or district in which the property is located; however, its personal property is centrally assessed by the state Commissioner of Revenue.

Here, the parties disagreed about what type of pipeline property is taxable “personal property.” MERC argued that personal property is limited to tangible personal property, whereas the Commissioner argued that personal property includes both tangible and intangible personal property.

The Tax Court held that the phrase “personal property” in Minn.Stat. §§ 272.02, subd. 9(a), and 272.03, subd. 2(5), means tangible personal property.




SECURITIES REGULATION - DISTRICT OF COLUMBIA

New York Republican State Committee v. Securities and Exchange Commission

United States District Court, District of Columbia - September 30, 2014 - F.Supp.3d - 2014 WL 4852030

The New York Republican State Committee and the Tennessee Republican Party sought declaratory and injunctive relief invalidating and enjoining the Securities and Exchange Commission, from enforcing the SEC’s pay-to-play rules for investment advisors, which was adopted over four years ago and codified at 17 C.F.R. § 275.206(4)–5.

The SEC countered that this case “was filed in the wrong court at the wrong time by the wrong plaintiff,” and should be dismissed for lack of subject matter jurisdiction.

The District Court agreed with the Commission, holding that the plaintiffs had failed to meet their burden in establishing subject matter jurisdiction because this Court was not the proper forum for their challenge.




AUCTION RATE SECURITIES - NEW YORK

In re JP Morgan Auction Rate Securities (ARS) Marketing Litigation

United States District Court, S.D. New York - September 30, 2014 - Slip Copy - 2014 WL 4953554

Cellular South, Inc., an investor in auction rate securities (“ARS”), brought the standard-issue ARS-related securities action against J.P. Morgan Securities, Inc. (“JP Morgan”), a securities broker-dealer that underwrote, marketed, and sold ARS and conducted the auctions at which the securities’ interest rates were set.

Plaintiff claims that Defendant profited by knowingly misrepresenting and omitting material information concerning the liquidity of its ARS products, and by manipulating the ARS market through the regular placement of support bids in its own auctions.

JP Morgan moved to dismiss the Complaint for failure to state a claim.

The District Court granted Defendant’s motion to dismiss, finding that Plaintiff had not pled facts sufficient to show that JP Morgan had the scienter necessary to engage in fraud, either through market manipulation or through misrepresentations and omissions.




LIABILITY - NEW YORK

Lyles v. New York City Health and Hospitals Corp.

Supreme Court, Appellate Division, Second Department, New York - October 1, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06561

Infant brought personal injury action against city health and hospitals corporation. The Supreme Court, Queens County, denied infant’s motion for leave to serve late notice of claim or to deem late notice timely served nunc pro tunc. Infant appealed.

The Supreme Court, Appellate Division, held that:




MUNICIPAL GOVERNANCE - OHIO

State ex rel. Ebersole v. Powell

Supreme Court of Ohio - September 29, 2014 - N.E.3d - 2014 -Ohio- 4283

Residents sought writ of mandamus to compel city council and city clerk to place proposed amendment to city charter on election ballot. The Supreme Court held that proposed amendment was an unlawful delegation of legislative power, and that city properly refused to place the matter on the ballot.

On reconsideration, the Supreme Court of Ohio held that city council was without authority to review the substance of a proposed ballot measure to amend city charter, and thus, acted unlawfully when it failed to pass ordinance to place amendment before the voters.




PUBLIC UTILITIES - OREGON

Gearhart v. Public Utility Com'n of Oregon

Supreme Court of Oregon, En Banc - October 2, 2014 - P.3d - 2014 WL 4924311

On remand following judicial review of rates approved for electric utility to recover its capital investment in nuclear generating facility after that facility was retired from service, the Public Utilities Commission (PUC) found the rates just and reasonable, awarded utility interest on unamortized balance, and ordered utility to issue refunds. Ratepayers and ratepayers’ advocacy organization appealed. The Court of Appeals affirmed. Ratepayers and organization petitioned for review.

The Supreme Court of Oregon held that:

In proceedings to determine whether electric utility could recover capital investment in nuclear generating facility after the facility had been retired from service, Public Utilities Commission (PUC) did not exceed scope of remand, after reversal by Court of Appeals, by reexamining rates from previous five-year period to determine whether to order refund of rates paid in subsequent period. Although Court had held that PUC had made a legal error in allowing utility to recover a return on its investment in rates, Court did not direct PUC to take any particular action in remand.

Public Utilities Commission (PUC) did not engage in impermissible retroactive ratemaking, on remand after reversal by Court of Appeals in proceedings to determine whether electric utility could recover capital investment in nuclear generating facility after the facility had been retired from service, by reexamining rates from previous five-year period to determine whether to order refund of rates paid in subsequent period. After Court determined that PUC had erroneously allowed utility to recover a return on its investment, PUC properly used ratemaking principles to calculate rates that it would have authorized if the return on investment had not been included, and PUC’s authority on remand included the authority to reconsider all aspects of the decision affected by the error.

Public Utilities Commission (PUC) had authority to order that electric utility provide refunds to ratepayers, on remand after reversal by Court of Appeals in proceedings to determine whether electric utility could recover capital investment in nuclear generating facility after the facility had been retired from service, after Court determined that PUC had erroneously allowed utility to recover a return on its investment. PUC had broad statutory authority to remedy errors in ratemaking orders, and authority to order a refund reasonably could be implied from remand order from the Court of Appeals.

Public Utilities Commission (PUC) did not exceed scope of remand, after reversal by Court of Appeals in proceedings to determine whether electric utility could recover capital investment in nuclear generating facility after the facility had been retired from service, by allowing utility to recover interest, although Court had determined that PUC had erroneously allowed utility to recover a return on its investment. PUC was careful not to recalculate rates using a factor that would allow utility to recover a profit on its investment, instead relying on lower Treasury bond rates to account only for the time value of money.




TAX - PENNSYLVANIA

Fish v. Township of Lower Merion

Commonwealth Court of Pennsylvania - September 19, 2014 - A.3d - 2014 WL 4656577

Taxpayers sought declaratory judgment, challenging township’s imposition of its business privilege tax (BPT) on taxpayers’ lease revenue and application of registration requirements for any “business, trade, occupation or profession.” The Court of Common Pleas found in favor of the Township and against taxpayers. Taxpayers appealed.

The Commonwealth Court held that:




SCHOOLS - PENNSYLVANIA

In re Wilkinsburg School Dist.

Commonwealth Court of Pennsylvania - October 8, 2014 - A.3d - 2014 WL 5017871

Association, residents and taxpayers (collectively “Objectors”) who reside within the Borough of Wilkinsburg School District and the Borough of Wilkinsburg appealed from the order of the Court of Common Pleas which approved the School District’s sale of vacant land, known as “Green Street Park” pursuant to Section 707(3) of the Public School Code.

Objectors asserted that the trial court erred when it approved the sale of the Property because: (1) the School District failed to demonstrate that it determined, either by motion or resolution, that the Property was both “unused and unnecessary;” and (2) the Public School Code does not require that the property be “unused and unnecessary” for school purposes.

The Commonwealth Court held that:




TAX - PENNSYLVANIA

Friends of Pennsylvania Leadership Charter School v. Chester County Bd. of Assessment Appeals

Supreme Court of Pennsylvania - September 24, 2014 - A.3d - 2014 WL 4745702

Friends of Pennsylvania Leadership Charter School appealed from the order of the Commonwealth Court which held that the retroactive real estate tax exemption provided in Section 1722–A(e)(3) of the Public School Code, 24 P.S. 17–1722–A(e)(3), was unconstitutional.

The Supreme Court of Pennsylvania affirmed the Commonwealth Court, albeit employing different reasoning, concluding that retroactive application of the real estate tax exemption of Section 1722–A(e)(3) is unconstitutional under the Pennsylvania Constitution because it violates the separation of powers doctrine.




LIABILITY - ALABAMA

Alabama Mun. Ins. Corp. v. Allen

Supreme Court of Alabama - September 26, 2014 - So.3d - 2014 WL 4798918

Passenger and driver brought action against police officer in his individual capacity for injuries they sustained in automobile accident with officer, who was on his way to work. Following judgment in favor of plaintiffs, city and city’s insurer moved to intervene and sought to limit judgment pursuant to $100,000 municipal damages cap. The Circuit Court entered judgment in favor of plaintiffs. City and insurer appealed.

The Supreme Court of Alabama held that:




IMMUNITY - ALABAMA

In re D.C. Pruett Contracting Co., Inc. v. Jackson County Bd. of Educ.

Supreme Court of Alabama - September 26, 2014 - So.3d - 2014 WL 4798755

Contractor brought action against county board of education, alleging that board had breached a contract for renovation of high school gymnasium. The Circuit Court denied board’s motion to dismiss on ground of sovereign immunity. Board petitioned for writ of mandamus.

The Supreme Court of Alabama held that:




TAX - DISTRICT OF COLUMBIA

Coleman through Bunn v. District of Columbia

United States District Court, District of Columbia - September 30, 2014 - F.Supp.3d - 2014 WL 4819092

In D.C., the tax-sale process begins with the sale at auction of a tax lien on the property to a third party. The homeowner may satisfy that lien by paying his delinquent tax bill, but the purchaser of the lien is able to add on top of that bill various costs, including attorney’s fees. In Mr. Coleman’s case, that caused what began as a $133.88 tax bill to become a total of over $5,000, all of which needed to be paid before the lien would be satisfied.

Once the lien is sold to the third party, a six-month waiting period begins, during which the homeowner may redeem his home by paying the taxes, along with any penalties, costs, and interest that are owed. If the entire bill is not paid upon expiration of the waiting period, the tax-lien purchaser may initiate proceedings in the Superior Court of the District of Columbia to foreclose. The Superior Court is empowered to enter a judgment vesting a fee simple title in the property in the tax-lien purchaser. In this way, a small sum paid to purchase the lien becomes full title to a property worth hundreds of thousands of dollars (in this case, approximately $200,000). The key detail in this case is that D.C. law provides that any surplus equity the homeowner has in his home is irrevocably lost, no matter how small the tax bill nor how valuable the equity.

Mr. Coleman brought a limited challenge to this law. He does not seek to regain his home, does not dispute that the District may use tax sales to satisfy delinquent property taxes, and agrees with the District that he owed $133.88 in property taxes, plus penalties, costs, and interest. Mr. Coleman’s claim is against the District’s taking of the entire equity in his home. The District, he asserts, has provided him no compensation for the loss of that equity, even though its value far exceeds the taxes, penalties, costs, and interest he owed.

Mr. Coleman claimed that such a practice is forbidden by the Takings Clause of the Fifth Amendment to the United States Constitution. Accordingly, he filed suit seeking an award of “just compensation,” as well as a declaration from the Court that the District’s statute is unconstitutional.

The District moved to dismiss Mr. Coleman’s Complaint, arguing that Supreme Court precedent holds that the District’s actions do not violate the Takings Clause.

The Court rejected the District’s argument that prior Supreme Court precedent had foreclosed Mr. Coleman’s claim under the Takings Clause, denying the District’s motion and stating that Mr. Coleman had stated a valid claim for violation of the Takings Clause.




ANNEXATION - ILLINOIS

Merchant v. Regional Bd. of School Trustees of Lake County

Appellate Court of Illinois, Second District - September 30, 2014 - N.E.3d - 2014 IL App (2d) 131277

Petitioners, a “Committee of 10” pursuant to section 7–6(c) of the Illinois School Code, sought to detach their territory from the boundaries of Woodland Community Consolidated School District 50 (Woodland) and Warren Township High School District 121 (Warren) and annex it into the boundaries of Oak Grove School District 68 (Oak Grove) and Libertyville Community High School District 128 (Libertyville). Petitioners filed a petition with the Regional Board of School Trustees of Lake County (Regional Board). The Regional Board conducted a hearing and denied the petition.

On administrative review, the trial court reversed the Regional Board’s decision. The school districts appealed, arguing that the Regional Board correctly denied the petition.

The appeals court affirmed the trial court’s order reversing the Regional Board’s decision.

“Based on our holdings as to the travel times and distances to the schools at issue, the “community of interest” and “whole child” factors, and property values, plus the fact that the evidence on petitioners’ preferences was uncontroverted, and despite the fact that we uphold the finding against petitioners on the educational advantage factor, we conclude that the evidence showed that granting the petition will provide some educational benefit to the Lancaster students. The Regional Board erred in finding otherwise and denying the petition.”




EMINENT DOMAIN - ILLINOIS

City of Joliet v. Mid-City National Bank of Chicago

United States District Court, N.D. Illinois, Eastern Division - September 17, 2014 - Not Reported in F.Supp.3d - 2014 WL 4667254

The City of Joliet moved to acquire two large, blighted apartment buildings via eminent domain.

Seven years of litigation, a 100-day trial, and a 19,000 page transcript later…

The District Court found that Joliet had a valid public purpose to use its power of eminent domain. In addition, the court found no discriminatory purpose or effect in the taking.

“an overwhelming smell of urine in the stairwells and hallways.”




EMPLOYMENT - INDIANA

Hauck v. City of Indianapolis

Court of Appeals of Indiana - September 24, 2014 - N.E.3d - 2014 WL 4743406

Two former sheriff’s deputies brought action against city, alleging that police department breached their employment contract by passing them over for promotion in violation of city ordinance regarding department’s merger with county sheriff’s office. The Superior Court granted summary judgment in favor of city. Plaintiffs appealed.

The Court of Appeals held that:

Ordinance stating that city “shall endeavor” to promote police department members in a manner to ensure proportional representation of former police officers and sheriff’s deputies, following department’s merger with sheriff’s office, did not require city to promote the two former deputies with the highest scores on promotional assessment to captain. The former deputies only had the tenth and 13th highest assessment scores overall, and the scores were based on several objective criteria that provided equal opportunity for advancement for both the former officers and deputies.




ELECTIONS - LOUISIANA

Russo v. Burns

Supreme Court of Louisiana - September 24, 2014 - So.3d - 2014-1963 (La. 9/24/14)

Objector brought action against candidate for office of parish district attorney, asserting that candidate had falsely certified having filed his state income tax returns.

The Supreme Court of Louisiana held that candidate falsely certified having filed his state individual income tax returns for four most recent tax years, and thus candidate was disqualified.

Although candidate’s tax preparer stated that tax preparer drove her employee to post office to mail returns, and although tax preparer had a certificate of mailing, Louisiana Department of Revenue (LDR) had no tax returns on file for candidate for relevant tax years, and LDR regulation provided that returns which had not been delivered to LDR by the United States Postal Service had not been filed.




LIABILITY - NEW JERSEY

Henebema v. South Jersey Transp. Authority

Supreme Court of New Jersey - September 29, 2014 - A.3d - 2014 WL 4798879

Motorist who was injured in a multi-vehicle accident on a highway during a heavy snowstorm brought negligence claims against drivers and owners of vehicles involved in the accident and, under the New Jersey Tort Claims Act (TCA), against New Jersey State Police and South Jersey Transportation Authority. A jury found that the individual defendants were not negligent, apportioned 20 percent negligence to state police and 80 percent negligence to authority, and awarded motorist $8,748,311. State police and authority filed a motion for judgment notwithstanding the verdict (JNOV) or, in the alternative, for a remittitur or new trial.

Motorist moved for prejudgment interest. The Superior Court denied both motions. State police and authority appealed, and motorist cross appealed. The Superior Court affirmed in part, reversed in part, and remanded for a new trial on liability of state police and authority. State police and authority petitioned for certification, which the Supreme Court granted.

The Supreme Court of New Jersey held that retrial on liability of state police and authority did not also require retrial on liability of drivers and owners or comparative negligence of motorist.

Issues involved in determining liability of state police and transportation authority under the New Jersey Tort Claims Act (TCA) for injuries suffered by motorist during a multi-vehicle accident on a highway were not intertwined with issues involved in determining liability of drivers and owners of vehicles involved in the accident or comparative negligence of motorist, and thus retrial on liability of state police and authority following reversal for instructional error did not also require retrial on liability of drivers and owners or comparative negligence of motorist.

Instructional error related only to liability of state police and authority, and motorist’s case against drivers and owners and comparative-negligence claim against motorist were based on a different theory of negligence than the theory posited against state police and authority.




LIABILITY - NEW YORK

Michaels v. Drake

Supreme Court, Appellate Division, Fourth Department, New York - September 26, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06450

Motorist brought action against city and police officer to recover for personal injuries he sustained when his vehicle collided with police car. The Supreme Court, Monroe County, entered judgment in defendants’ favor, and plaintiff appealed.

The Supreme Court, Appellate Division, held that police officer did not drive with reckless disregard for safety of others when he exceeded speed limit while responding to dispatch call concerning domestic dispute, and thus officer and city were not liable for personal injuries sustained by plaintiff when officer’s car struck his vehicle.




LIABILITY - NEW YORK

Fleisher v. City of New York

Supreme Court, Appellate Division, Second Department, New York - September 24, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06297

Pedestrian, and her husband suing derivatively, commenced action against city to recover damages for injuries allegedly sustained when she fell on sidewalk. The Supreme Court, Kings County, entered judgment as matter of law in city’s favor, and plaintiffs appealed.

The Supreme Court, Appellate Division, held that:

Map prepared by Big Apple Pothole and Sidewalk Protection Committee, Inc. and filed with New York City Department of Transportation (DOT) was relevant to issue of whether city had prior written notice of claimed defect in sidewalk that allegedly caused injured plaintiff to fall, and thus was admissible in personal injury action against city, where plaintiffs sought to admit map for nonhearsay purpose of establishing that city had notice of alleged defect at least 15 days prior to injured plaintiff’s accident.

Trial court improvidently exercised its discretion in personal injury action in precluding plaintiffs from presenting evidence that, as result of accident, injured plaintiff acquired “C-difficile” infection, her pre-existing Crohn’s disease was exacerbated, and she suffered psychological injury on ground that plaintiffs’ expert disclosure failed to include substance of facts and opinions upon which he was expected to testify, where expert did state basis of his opinions, albeit tersely.




ELECTIONS - OHIO

State ex rel. Dawson v. Cuyahoga Cty. Bd. of Elections

Supreme Court of Ohio - September 22, 2014 - N.E.3d - 2014 WL 4746683

Citizen filed petition for writ of prohibition to prevent special election to recall city mayor.

The Supreme Court of Ohio held that:




BONDS - OKLAHOMA

Tulsa Indus. Authority v. City of Tulsa, Oklahoma

Supreme Court of Oklahoma - September 30, 2014 - P.3d - 2014 OK 81

City industrial authority brought declaratory judgment proceeding to validate authority’s expenditure of public funds. Taxpayer moved to intervene. The District Court denied the motion. Taxpayer filed writ of certiorari to the Court of Appeals. The Supreme Court affirmed in part, reversed in part, and remanded. On remand, the District Court dismissed taxpayer’s petition with prejudice on the basis that taxpayer did not provide notice to bondholders as necessary parties to the lawsuit. Taxpayer filed application to assume original jurisdiction and petition for writ of prohibition and mandamus.

The Supreme Court of Oklahoma held that:




EMINENT DOMAIN - OREGON

State, ex rel. Dept. of Transp. v. Alderwoods (Oregon), Inc.

Court of Appeals of Oregon, En Banc. - September 17, 2014 - P.3d - 2014 WL 4823607

In connection with highway project the Oregon Department of Transportation brought a condemnation action against landowner to acquire land that abutted the highway. The project involved the reconstruction of the sidewalk and the elimination of curb cuts and driveways that had allowed vehicular access from property to the highway.

Before trial, the trial court granted the state’s motion in limine to exclude evidence of the diminution in the value of the land as a result of its loss of access to the highway. The court thereafter entered a general judgment awarding defendant just compensation of $11,792. Defendant appealed the judgment and assigned error to the order granting the state’s motion in limine.

The appeals court affirmed, holding that the denial of access resulting from the elimination of the curb cuts and driveways constituted a denial of access to promote the efficient and safe use of the highway, that is, a regulatory restriction on access to the highway to promote its use as a highway and, consequently, that the denial of access as a result of those restrictions did not constitute a taking of the access for which compensation would be due.

“In summary, the state condemned defendant’s access rights in the context of a project that would—and did—result in a regulatory denial of access to Highway 99W to promote the safe and efficient use of the highway as a highway. Whatever the measure of damages could be in those circumstances, it is not the diminished value of the land resulting from the loss of access to Highway 99W because, as a result of the regulatory elimination of the curb cuts and driveways, the property has no lawful access to Highway 99W irrespective of the condemnation of the access to the highway. As the trial court correctly concluded, evidence addressed to a measure of damages based on the loss of access was irrelevant. I conclude, therefore, that the trial court’s judgment should be affirmed.”




ZONING - PENNSYLVANIA

Newtown Square East, L.P. v. Township of Newtown

Supreme Court of Pennsylvania - September 24, 2014 - A.3d - 2014 WL 4745695

Adjoining landowner challenged the validity of a planned residential development (PRD) ordinance. Township zoning hearing board upheld the validity of the ordinance, and landowner appealed. Landowner also appealed an approval of developer’s tentative PRD plan by township board of supervisors. The Court of Common Pleas affirmed. Landowner appealed. The Commonwealth Court upheld the validity of the PRD ordinance and the approval of the PRD plan. Landowner filed petitions for allowance of appeal, which the Supreme Court granted as to three issues.

The Supreme Court of Pennsylvania held that:




MUNICIPAL ORDINANCE - GEORGIA

Advanced Disposal Services Middle Georgia, LLC v. Deep South Sanitation, LLC

Supreme Court of Georgia - September 22, 2014 - S.E.2d - 2014 WL 4667471

County and its exclusive provider of solid waste collection services sought injunctions prohibiting non-exclusive solid waste collector from providing collection and disposal services in violation of a newly enacted county ordinance.

The Supreme Court of Georgia held that:

Enforcement of county’s solid waste ordinance, pursuant to which county commissioners authorized an exclusive franchise for the collection and disposal of solid waste from residents of unincorporated county, would not violate non-exclusive waste collector’s due process rights to continue its existing business, where ordinance’s authorization of an exclusive franchise was reasonably related to county’s goal of providing complete, uniform, and affordable solid waste collection services to county residents.




MUNICIPAL ORDINANCE - HAWAII

State v. Abel

Supreme Court of Hawai‘i - September 24, 2014 - P.3d - 2014 WL 4745807

Defendant was convicted in the District Court, First Circuit, of solicitation with animals in violation of city ordinance. The Court of Appeals affirmed. Defendant’s application for certiorari review was granted.

The Supreme Court of Hawaii held that:




LIABILITY - MINNESOTA

State Farm Mut. Auto. Ins. Co.

Court of Appeals of Minnesota - September 22, 2014 - N.W.2d - 2014 WL 4672348

Three actions were brought in which passengers injured on Metropolitan Council buses and having no automobile insurance of their own sought basic-economic-loss benefits from Met Council under the Minnesota No–Fault Automobile Insurance Act. The District Court entered summary judgment in favor of passengers. Met Council appealed.

The Court of Appeals held that buses operated by the Met Council are “motor vehicles” for purposes of the No–Fault Automobile Insurance Act.




BONDS - MISSOURI

Cromeans v. Morgan Keegan & Co., Inc.

United States District Court, W.D. Missouri, Central Division - September 23, 2014 - F.R.D. - 2014 WL 4722217

After City Industrial Development Authority project failed, Bondholders brought putative class action against bond underwriter – Morgan Keegan – and underwriter’s counsel – Armstrong Teasdale.

The Bondholders’ claims are based in substantial part on alleged material misrepresentations and omissions contained in the Official Offering Statement, and the underwriter’s alleged failure to conduct a due-diligence investigation concerning the accuracy of the representations in the statement.

Bondholders brought a Motion for Class Certification as to all claims contained in the first amended complaint, including negligent underwriting, negligent misrepresentation, fraudulent misrepresentation, Missouri Blue Sky law violations, and unjust enrichment.

The District Court granted the Motion for Class Certification as to Plaintiffs’ claims for violation of the Missouri Blue Sky law and negligent underwriting.

The Court concluded that individualized proof of reliance made class certification inappropriate for Plaintiffs’ negligent and fraudulent misrepresentation claims, rejecting Plaintiffs’ “fraud created the market” theory.




ZONING - NEW JERSEY

R. Neumann & Co. v. City of Hoboken

Superior Court of New Jersey, Appellate Division - September 23, 2014 - A.3d - 2014 WL 4686556

Property owner brought action against city and city officials, alleging claims in lieu of prerogative writs, challenging city council’s resolution designating area including owner’s property as an area in need of rehabilitation pursuant to the Local Redevelopment and Housing Law (LRHL). The Superior Court dismissed the claims, and owner appealed.

The Superior Court, Appellate Division, held that resolution was insufficient to allow determination of whether city had complied with statutory standards for designation of area as in need of rehabilitation.

Resolution of city council designating certain area to be in need of rehabilitation pursuant to the Local Redevelopment and Housing Law (LRHL), stating that council had relied on reports indicating that water and sewer lines in area were at least 50 years old “or” were in need of substantial maintenance, was insufficient to allow determination of whether city had complied with statutory standard requiring majority of water and sewer infrastructure in delineated area be at least 50 years old “and” in need of repair or substantial maintenance, and thus vacation of resolution was warranted for city to reconsider designation.




NEGLIGENCE - NEW YORK

Warshefskie v. New York City Housing Authority

Supreme Court, Appellate Division, Second Department, New York - September 17, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06200

Police officer brought statutory and common-law negligence claims against a housing authority, claiming that the housing authority failed to properly maintain a fire door, which caused injury to the officer during his pursuit of a suspect. The Supreme Court, Richmond County, granted partial summary judgment to the housing authority. Both parties appealed.

The Supreme Court, Appellate Division, held that:




IMMUNITY - NEW YORK

Tara N.P. (Anonymous) v. Western Suffolk Bd. of Co-op. Educational Services

Supreme Court, Appellate Division, Second Department, New York - September 17, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06189

Student in GED course at county facility leased by non-profit organization brought action against county, county’s social services department, and county’s department of labor, seeking to recover damages for personal injuries sustained when she was sexually assaulted by maintenance worker whom defendants had referred to organization for hire at facility, despite worker’s designation as level three sex offender. The Supreme Court, Suffolk County, denied defendants’ summary judgment motion. Defendants appealed.

The Supreme Court, Appellate Division, held that:




TAX - NEW YORK

Westchester Joint Water Works v. Assessor of City of Rye

Supreme Court, Appellate Division, Second Department, New York - September 17, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06208

Taxpayer commenced tax certiorari proceeding challenging real property tax assessments on parcels. School district intervened. The Supreme Court, Westchester County, denied assessor’s motion to dismiss proceedings on ground that notices of petition and petitions were not served upon school district’s superintendent, but granted school district’s motion to dismiss on same ground. Taxpayer appealed, and assessor cross-appealed.

The Supreme Court, Appellate Division, held that:




ZONING - OHIO

State ex rel. Ebersole v. Powell

Supreme Court of Ohio - September 19, 2014 - N.E.3d - 2014 -Ohio- 4078

Residents sought writ of mandamus to compel city council and city clerk to place proposed amendment to city charter on election ballot.

The Supreme Court of Ohio held that proposed amendment to city charter, which would have rendered a commission composed of five private citizens responsible for recommending a new comprehensive zoning and development plan to city council, was an unlawful delegation of legislative power, where city council would have been required to consider commission’s recommendation and to adopt a final plan, final plan could make adjustments to commission recommendation only to extent that adjustments were consistent with commission’s findings, and amendment did not set forth any standards to govern those findings.




RECORDS - OHIO

Mayfield Hts. v. M.T.S.

Court of Appeals of Ohio, Eighth District, Cuyahoga County - September 18, 2014 - N.E.3d - 2014 -Ohio- 4088

Homeowner filed a motion to seal the city’s nuisance complaint and city’s motion to compel inspection because they referred to homeowner’s expunged convictions, and he also sought sanctions against the city for the release of his sealed criminal records. The Court of Common Pleas denied motion, and homeowner appealed.

The Court of Appeals held that trial court abused its discretion when it denied homeowner’s motion to seal city’s nuisance complaint and city’s motion to compel inspection without holding a hearing or conducting an in camera inspection.




PUBLIC UTILITIES - PENNSYLVANIA

Metropolitan Edison Co. v. Pennsylvania Public Utility Com'n

United States Court of Appeals, Third Circuit - September 16, 2014 - F.3d - 2014 WL 4548859

Electric utility companies commenced action against Pennsylvania Public Utility Commission (PUC) and its commissioners in their official capacities, alleging violation of filed rate doctrine under Federal Power Act (FPA), confiscatory taking under Fourteenth Amendment, and federal pre-emption of Pennsylvania Electric Competition Act (ECA), and seeking declaratory judgment and injunctive relief to recoup from their customers more than $250 million in costs associated with “line losses,” i.e., energy that was lost when electricity travels over power lines, and interest related to those costs.

The District Court held that companies’ unsuccessful pursuit of relief in state proceeding precluded their effort to claim relief in federal court. Companies appealed.

The Court of Appeals held that:




EMINENT DOMAIN - PENNSYLVANIA

Reading Area Water Authority v. Schuylkill River Greenway Assn.

Supreme Court of Pennsylvania - September 24, 2014 - A.3d - 2014 WL 4745698

Water authority filed a declaration of taking to condemn drainage easement across landowners’ property. The Court of Common Pleas sustained landowners’ preliminary objections and dismissed the declaration of taking, and water authority appealed. The Commonwealth Court reversed and remanded. Landowners appealed.

The Supreme Court of Pennsylvania held that drainage easement was not for public use and thus could not be subject of taking by water authority.

Drainage easement across landowners’ property was not for public use and thus, pursuant to Property Rights Protection Act (PRPA), could not be subject of taking by water authority, even though easement was to be located side-by-side with water easement and was intended for use by prospective purchasers of developer’s adult-community residential development. Easement was to be acquired at developer’s behest for sole use of developer, and at developer’s sole cost, and there was no suggestion that easement was meant to be used for any purpose broader than servicing development.




MUNICIPAL CORPORATIONS - PENNSYLVANIA

Southeastern Pennsylvania Transp. Authority v. City of Philadelphia

Supreme Court of Pennsylvania - September 24, 2014 - A.3d - 2014 WL 4745777

Southeastern Pennsylvania Transportation Authority (SEPTA) brought action against city and city commission on human relations, seeking injunctive and declaratory relief, alleging that commission was prohibited from exercising jurisdiction over SEPTA under city fair practices ordinance.

The Supreme Court of Pennsylvania held that:

Whether Southeastern Pennsylvania Transportation Authority (SEPTA) was an agency of the Commonwealth was not determinative of whether SEPTA was subject to municipality’s authority, and thus subject to city’s fair practices ordinances and jurisdiction of city human relations commission, rather, because the legislature authorized the creation of both entities, and set the limits of each entity’s authority, the court’s task was to determine, through an examination of the relevant statutes, which entity the legislature intended to have preeminent powers.




IMMUNITY - TEXAS

San Antonio Water System v. Smith

Court of Appeals of Texas, San Antonio - September 24, 2014 - S.W.3d - 2014 WL 4723123

Beatriz Smith sued the San Antonio Water System (SAWS) for injuries she sustained when she fell into a hole on a sidewalk. SAWS filed a plea to the jurisdiction, asserting it did not receive notice of the claim against it as required by the Texas Tort Claims Act. The trial court denied the plea.

The Court of Appeals affirmed, holding that:




PENSION FUNDING - ALABAMA

Taylor v. City of Gadsden

United States Court of Appeals, Eleventh Circuit - September 16, 2014 - F.3d - 2014 WL 4548614

Recognizing that its pension system was underfunded, City raised its employees’ pension contributions by 2.5% of their total compensation. It did so pursuant to an Act passed by the Alabama legislature mandating such an increase for state employees and permitting, but not requiring, localities to do the same.

In response, a class of City firefighters — whose contribution rate was raised from 6% to 8.5% — brought this lawsuit. They alleged that the City’s actions impaired the terms of their employment contracts, in violation of both the United States Constitution and the Alabama Constitution.

The Court of Appeals held that plaintiffs had no contractual right to a static, inviolable 6% contribution rate and thus the City was free to amend the employee contribution rate without constitutional consequence.




INVERSE CONDEMNATION - ALASKA

Briggs v. City of Palmer

Supreme Court of Alaska - September 12, 2014 - P.3d - 2014 WL 4494272

Property owner brought action against city for inverse condemnation, claiming airport operation diminished his property value. The Superior Court entered summary judgment for city, and property owner appealed.

The Supreme Court of Alaska held that property owner should have been permitted to testify as to the market value of his property both before and after an alleged taking, based on the premise, that, as an owner, he was informed about the property’s value, both before and after the event that purportedly diminished its value.




CEQA - CALIFORNIA

Coalition for Adequate Review v. City and County of San Francisco

Court of Appeal, First District, Division 1, California - September 15, 2014 - Cal.Rptr.3d - 2014 WL 4537020

Objectors petitioned for writ of mandate challenging city’s land use plans. The Superior Court denied petition. Objectors appealed, and the Court of Appeal affirmed. The Superior Court granted objectors’ motion to tax costs and denied all costs to city. City appealed.

The Court of Appeal held that:

When a petitioner elects to prepare the record for a California Environmental Quality Act (CEQA) action against a public agency but the record is incomplete, and an agency is put to the task of supplementation to ensure completeness, the language of CEQA’s record preparation provision allows, and the purpose of the provision to protect public monies counsels, that the agency recoup the costs of preparing the supplemental record.

Trial court was required to award costs to city for its preparation of a supplemental record under California Environmental Quality Act’s (CEQA) record preparation statute, after city prevailed in objectors’ mandamus action, even though objectors elected to prepare the record, where the city obtained leave from the trial court to prepare the supplemental record, objectors rejected city’s offer to defer supplementation of the record until it filed its opposition to the writ petition, and city’s preparation of a supplemental record did not violate the city’s obligation to minimize record preparation costs.

When a petitioner elects to prepare the record for a California Environmental Quality Act (CEQA) action against a public agency, the agency’s labor costs to review the petitioner-prepared record of proceedings “for completeness” in connection with certification are not recoverable record preparation costs under CEQA’s record preparation provision.




BENEFITS - DISTRICT OF COLUMBIA

Rivera v. Lew

District of Columbia Court of Appeals - September 11, 2014 - A.3d - 2014 WL 4450507

Former spouse of police officer sought judicial review of District of Columbia Retirement Board’s (DCRB) denial of spouse’s request for a survivor annuity following officer’s death. The District Court granted summary judgment in favor of DCRB. Spouse appealed.

The Court of Appeals held that mayor was not required to comply with posthumous nunc pro tunc order amending divorce settlement.

Mayor was not required to comply with a posthumously-issued nunc pro tunc court order that on its face related back to a date before police officer’s death and retroactively amended a divorce settlement agreement to provide the officer’s former spouse with entitlement survivor annuity in a way that was inconsistent with the last benefits election executed by the officer prior to his death, where order had not been issued prior to officer’s retirement, as officer’s death prior to retirement precluded retirement.




LIABILITY - ILLINOIS

Bruns v. City of Centralia

Supreme Court of Illinois - September 18, 2014 - N.E.3d - 2014 IL 116998

Pedestrian brought negligence action against city, alleging that she tripped and fell on an uneven sidewalk. The Circuit Court entered summary judgment in favor of city. Pedestrian appealed. The Appellate Court reversed and remanded. City sought review.

The Supreme Court of Illinois held that:

Mere fact that pedestrian was looking at the door and steps of eye clinic which was her destination did not constitute a “distraction” that would serve as an exception to the open and obvious rule in negligence action against city on the basis of sidewalk defect, where pedestrian failed to identify any circumstance, much less a circumstance that was reasonably foreseeable by the city, which required her to divert her attention from the open and obvious sidewalk defect, or otherwise prevented her from avoiding the sidewalk defect.




EASEMENTS - ILLINOIS

Nationwide Financial, LP v. Pobuda

Supreme Court of Illinois - September 18, 2014 - N.E.3d - 2014 IL 116717

Eastern landowner brought action against western landowners for declaratory judgment of trespass. Western landowners brought counterclaims for declaratory judgment of prescriptive easement, interference with an express easement, and a declaratory judgment regarding certain developmental modifications in order to prevent flooding on their property. The Circuit Court entered summary judgment in favor of eastern landowner. Western landowners appealed.

The Supreme Court of Illiniois held that:




EMPLOYMENT - MASSACHUSETTS

Hull Retirement Bd. v. Contributory Retirement Appeal Bd.

Appeals Court of Massachusetts - September 16, 2014 - N.E.3d - 2014 WL 4546047

Police officer brought action against town after he was removed from paid injury leave status and placed on an unpaid leave of absence. Officer and town reached a settlement agreement under which town placed in escrow approximately $44,400 in accidental injury leave pay. Officer appealed retirement board’s refusal to recalculate his retirement benefits on the basis of the additional funds. The division of administrative law appeals ordered a correction of the retirement date. Town appealed. The Contributory Retirement Appeal Board affirmed. Town appealed.

The Appeals Court held that funds were regular compensation received by officer for purposes of calculating his retirement benefits.




TAX - NEW HAMPSHIRE

Duncan v. State

Supreme Court of New Hampshire - August 28, 2014 - A.3d - 2014 WL 4241774

Taxpayers and LLC filed petition seeking declaratory judgment that Education Tax Credit Program, which provided tax credit to business organizations and enterprises that contributed to scholarship organizations to provide scholarships to students, violated provision of New Hampshire Constitution prohibiting grant of tax dollars for use by schools or institutions of any religious sect or denomination. Citizens who wished their children to receive scholarship funds under program, and non-profit organization intervened. The Superior Court ruled in plaintiffs’ favor. State and intervenors appealed.

The Supreme Court of New Hampshire held that:




LIABILITY - NEW YORK

Granata v. City of White Plains

Supreme Court, Appellate Division, Second Department, New York - September 10, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06053

Action was brought against city to recover damages for negligence and wrongful death of customer who was attacked and killed in city’s parking garage. The Supreme Court, Westchester County, denied city’s motion for summary judgment on cause of action alleging that city failed to maintain premises in reasonably safe condition. City appealed.

The Supreme Court, Appellate Division, held that:

City acted in proprietary, rather than governmental, capacity in owning and operating parking garage, for which it was alleged to have failed to provide adequate security, and, in that capacity, city, like any landlord, had duty to take minimal precautions to protect customer from foreseeable harm.

 

 




LIABILITY - NEW YORK

Gugel v. County of Suffolk

Supreme Court, Appellate Division, Second Department, New York - September 10, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06054

Plaintiffs brought action against county to recover for damages they sustained as result of sewage backup. The Supreme Court, Suffolk County, entered summary judgment in county’s favor, and plaintiffs appealed.

The Supreme Court, Appellate Division, held that county’s proof regarding its regular inspection and maintenance of its sewer system failed to demonstrate its prima facie entitlement to judgment as matter of law.

County’s proof regarding its regular inspection and maintenance of its sewer system failed to demonstrate its prima facie entitlement to judgment as matter of law in action to recover damages sustained as result of sewage backup, even though county did not have prior notice of dangerous condition in subject sewer system, where records that county submitted in support of its motion for summary judgment were confusing, internally inconsistent, and did not support conclusion made in accompanying affidavit of county department of public works employee, who stated that subject sewer line was annually “jetted” to clear blockages.




EMPLOYMENT - NEW YORK

Iasillo v. Pilla

Supreme Court, Appellate Division, Second Department, New York - September 10, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06056

Former mayors and members of Board of Trustees of village brought action against village, mayor, and trustees of Board, seeking declaration that resolution of Board, which terminated former mayors’ and Board members’ post-retirement healthcare benefits, was null and void and without legal effect. The Supreme Court, Westchester County granted defendants’ converted motion for summary judgment. Former mayors and Board members appealed.

The Supreme Court, Appellate Division, held that prior Board resolutions that granted post-retirement healthcare benefits did not establish vested interest in those benefits.




LIABILITY - NEW YORK

Lepore v. Town of Greenburgh

Supreme Court, Appellate Division, Second Department, New York - September 10, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06063

Plaintiffs brought action against town and police officers to recover damages for civil rights violations pursuant to § 1983. The Supreme Court, Westchester County, denied defendants’ motions for summary judgment and to dismiss the complaint. Defendants appealed.

The Supreme Court, Appellate Division, held that:




ZONING - NEW YORK

Quintana v. Board of Zoning Appeals of Inc. Village of Muttontown

Supreme Court, Appellate Division, Second Department, New York - September 10, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06092

Applicants initiated article 78 proceeding to review determination of board of zoning appeals denying application for lot-depth variance. The Supreme Court, Nassau County, annulled determination. Board appealed.

The Supreme Court, Appellate Division, held that there was no evidence that granting variance would produce undesirable change in character of neighborhood, adversely impact on physical and environmental conditions, or otherwise result in detriment to health, safety, and welfare of neighborhood or community.

Lot-depth variance should have been granted, absent evidence that granting variance would produce undesirable change in character of neighborhood, adversely impact on physical and environmental conditions, or otherwise result in detriment to health, safety, and welfare of neighborhood or community; subjective considerations of general community opposition was not rational basis for denial of variance.




TAX - PENNSYLVANIA

Four Quarters Interfaith Sanctuary of Earth Religion v. Bedford County Bd. of Assessment and Revision of Taxes

Commonwealth Court of Pennsylvania - September 16, 2014 - A.3d - 2014 WL 4547841

Taxpayer, a religious organization that owned 90 acres of real property where members performed religious rituals, appealed decision of county board of assessment and revision, denying taxpayer’s request for tax exemption for places of religious worship.

The Commonwealth Court held that:




LIABILITY - SOUTH CAROLINA

Major v. City of Hartsville

Supreme Court of South Carolina - September 17, 2014 - S.E.2d - 2014 WL 4629587

Pedestrian, who allegedly fell while walking across unpaved area of intersection, brought personal-injury action against city, asserting claims for negligence, gross negligence, and willful and wanton conduct. The Circuit Court granted city’s motion for summary judgment. Pedestrian appealed.

The Supreme Court of South Carolina held that genuine issues of material fact as to whether city should be charged with constructive notice of rut on basis that rut existed for such a period of time that city should have discovered it and as to whether recurring nature of defect created continual condition giving rise to constructive notice precluded summary judgment.




PUBLIC RECORDS - WISCONSIN

Wisconsin Professional Police Assn., Inc. v. Wisconsin Counties Assn.

Court of Appeals of Wisconsin - September 18, 2014 - Slip Copy - 2014 WL 4637474

Wisconsin Professional Police Association sought a declaration that the Wisconsin Counties Association was subject to Wisconsin’s public records law, that the Wisconsin Counties Association violated that law, and a mandamus order directing the Counties Association to produce records requested by the Police Association pursuant to that law.

The Circuit Court dismissed the complaint on the ground that the public records law imposed record inspection and production duties only on an “authority,” as defined in WIS. STAT. § 19.32(1), and the Counties Association, as an unincorporated association, “quite clearly does not fall within” that definition. The Court of Appeals affirmed.




LIABILITY - CALIFORNIA

Suarez v. City of Corona

Court of Appeal, Fourth District, Division 1, California - August 29, 2014 - Cal.Rptr.3d - 2014 WL 4254312

Van passenger brought action against city for dangerous condition of public property. The Superior Court granted summary judgment for city and awarded attorney fees and costs against passenger and his attorneys. Passenger and his attorneys appealed.

The Court of Appeal held that:

Van passenger’s action against city for dangerous condition of public property, based on incident in which the compressed natural gas tank in the van exploded while being filled at a fueling station owned by the city, was maintained without reasonable cause, thus supporting sanctions under the statute providing public entities and other specified defendants with a way to recover the costs of defending against unmeritorious and frivolous litigation, where passenger had information from other sources that showed the accident was not caused by a dangerous condition on the city’s property, the city made numerous demands to dismiss the case against the city or provide a viable theory of liability, and passenger ignored those demands and let the case languish for approximately one year.




BONDS - FLORIDA

S.E.C. v. City of Miami

United States Court of Appeals, Eleventh Circuit - September 5, 2014 - Fed.Appx. - 2014 WL 4377831

The SEC instituted a civil enforcement action alleging that the City of Miami and its Budget Director, Michael Boudreaux committed securities fraud, and that the City violated a 2003 SEC cease-and-desist order, imposed after the City violated the anti-fraud provisions of the federal securities laws in connection with the issuance of municipal bonds in 1995.

The crux of the SEC’s allegations concerned alleged material misrepresentations and omissions reflected in 2007 and 2008 fiscal year-end City financial documents that were incorporated by reference into the City’s bond offerings in 2009.

As relief, the SEC requested that the district court: (1) grant injunctive relief that would permanently enjoin the defendants from further violations of federal securities law; (2) order the City to comply with the 2003 cease-and-desist order; and (3) impose civil monetary penalties on the defendants.

Boudreaux moved to dismiss the claims against him based on the doctrine of qualified immunity because he was acting within the scope of his official responsibilities as City Budget Director when the alleged misconduct occurred. The District Court denied the motion and Boudreaux appealed.

The Court of Appeals noted that the issue of whether municipal officials are entitled to qualified immunity in a SEC enforcement action under the federal securities laws appeared to be a matter of first impression.

The Court of Appeals affirmed, holding that qualified immunity was unavailable to Boudreaux as a defense against the SEC’s civil enforcement action.




LIABILITY - ILLINOIS

Pattullo-Banks v. City of Park

Appellate Court of IllinoisFirst District, Fourth Division - September 4, 2014 - N.E.3d - 2014 IL App (1st) 132856

Pedestrian who had been hit by car while crossing street brought action against city, alleging that she had been forced to cross street at a point where there was no crosswalk because the city had breached its duty to maintain its property in a reasonably safe condition by unreasonably piling snow on the sidewalk so as to make it impassable. The Circuit Court entered summary judgment in favor of city, and pedestrian appealed.

The Appellate Court held that whether pedestrian was an intended user of street in location where she was hit by a car was irrelevant to determination of whether city breached its duty maintain its property in a reasonably safe condition by unreasonably piling snow on the sidewalk so as to make it impassable, for purposes of determining whether city was immune from liability for pedestrian’s injuries under Local Governmental and Governmental Employees Tort Immunity Act. Issue of whether pedestrian was an intended and permitted user was to be determined based upon the property for which the city was alleged to have breached its duty rather than the place where the injury occurred.




IMMUNITY - ILLINOIS

Bowman v. Chicago Park Dist.

Appellate Court of Illinois, First District, Fifth Division - September 5, 2014 - N.E.3d - 2014 IL App (1st) 132122

Mother brought action against city park district on behalf of her 13-year-old child following child’s ankle injury while using a damaged slide, alleging that city’s failure to repair slide after having been informed of its condition nearly one year earlier was willful and wanton. The Circuit Court entered summary judgment in favor of city. Mother appealed.

The Appellate Court held that thirteen-year-old child was a permitted and intended user of playground on city park on which she was injured while using slide that city park district had notice was damaged for nearly one year but failed to replace, and thus city owed child duty of care under the Local Governmental and Governmental Employees Tort Immunity Act, even though ordinance prohibited use of playground equipment designed for children under 12 years old.

Ordinance did not identify which parks were designated for certain age groups and did not state that playground or slide at issue were designed for such children, park website mentioned no age range, there were no signs at playground or any other indication that it was designed or designated for such children, and city did not take any measures to prevent children who were 12 years and older from using park.




ELECTIONS - LOUISIANA

Thebeau v. Smith

Court of Appeal of Louisiana, Second Circuit - September 8, 2014 - So.3d - 49, 665 (La.App. 2 Cir. 9/8/14)

City resident brought action against candidate contesting his qualifications to run for mayor. The District Court entered judgment in favor of resident. Candidate appealed.

The Court of Appeal held that:

Candidate was not a valid elector in city at the time of his qualification for mayor, as required by statutory qualifications for mayor, even though he changed his address to city on the date he qualified for mayor, where candidate had previously listed his address in another city for all important documents, and candidate’s original voter registration application listed address in another city.

Candidate was not domiciled in nor did he reside in city for the year immediately preceding his candidacy for mayor, as required by statutory qualifications for mayor, even though candidate and his relatives testified that he was domiciled in city, where candidate’s driver’s license, voter registration, bank accounts, and corporate addresses had been in another city for many years preceding his candidacy.




ZONING - MASSACHUSETTS

Welch-Philippino v. Zoning Bd. of Appeals of Newburyport

Appeals Court of Massachusetts, Suffolk - September 9, 2014 - N.E.3d - 2014 WL 4410875

Neighbors appealed decision of city zoning board of appeals to issue special permit authorizing property owners to replace nursing-home facility, which was nonconforming use but dimensionally conforming structure, with modernized facility in residential zone. The Land Court Department determined that project was permissible as of right. Neighbors appealed.

The Appeals Court held, as an apparent matter of first impression, that replacement of a conforming structure devoted to a nonconforming use that does not result in a change or substantial extension of the use is permissible as of right under the zoning statute governing existing structures and uses.




MUNICIPAL ORDINANCE - NEW JERSEY

In re Jackson Tp. Administrative Code

Superior Court of New Jersey, Appellate Division - September 8, 2014 - A.3d - 2014 WL 4388283

Mayor and township council brought action against petitioners seeking declaratory judgment that ordinance proposed in initiative petition was unlawful. The Superior CourT granted mayor and council summary judgment. Petitioners appealed.

The Superior Court, Appellate Division, held that:

Trial court did not have authority to revise township ordinance dealing with insourcing of legal department and shared-services agreement with board of education, which ordinance was proposed in citizens’ initiative petition, and order that altered ordinance be placed on ballot, even though proposed ordinance contained a severability clause. The Optional Municipal Charter Law (Faulkner Act), mandated minimal judicial interference in initiative process, and the policies underlying the Faulkner Act were not served by the court severing part of the ordinance based on its subjective evaluation of the significance of the school board and severability clauses, then rewriting the ordinance, ballot question, and interpretative statement.




EMINENT DOMAIN - NEW JERSEY

Borough of Merchantville v. Malik & Son, LLC

Supreme Court of New Jersey - August 7, 2014 - 218 N.J. 556 - 95 A.3d 709

Borough filed petition to condemn property. The Superior Court denied motion by mortgagee’s assignee to dismiss, and entered judgment for borough. Mortgagee’s assignee appealed.

The Supreme Court of New Jersey held that:




PUBLIC UTILITIES - NEW JERSEY

PPL Energyplus, LLC v. Solomon

United States Court of Appeals, Third Circuit - September 11, 2014 - F.3d - 2014 WL 4454999

Dissatisfied with the stock and reliability of power-generating facilities in New Jersey, the state adopted the Long Term Capacity Pilot Program Act. The Act-known as LCAPP-instructed New Jersey’s Board of Public Utilities to promote the construction of new power-generating facilities in the state. Rather than pay for the construction of these plants directly, the Board of Public Utilities crafted a set of contracts, called Standard Offer Capacity Agreements, that assured new electric energy generators fifteen years of revenue from local utilities and, ultimately, New Jersey ratepayers. LCAPP guaranteed revenue to new generators by fixing the rates those generators would receive for supplying electrical capacity, that is, the ability to make energy when called upon.

Energy producers and sellers brought action seeking to have LCAPP declared unconstitutional. The District Court granted judgment for plaintiffs. New Jersey’s Board of Public Utilities and contractor under LCAPP appealed.

The Court of Appeals held that LCAPP was preempted by the Federal Power Act.

FPA occupied field of interstate rates for electricity, and therefore LCAPP – which provided incentives for construction of new power plants by regulating rates that new electric generators would receive for their capacity through Standard Offer Capacity Agreements – intruded into area reserved exclusively for federal government and was preempted, since LCAPP compelled participants in federally-regulated marketplace to transact capacity at prices other than price fixed by marketplace. Even if reasonableness of Agreements’ rates would be within exclusive jurisdiction of FERC to review, Agreements could not set capacity prices in the first place.




PENSIONS - NEW JERSEY

Saccone v. Board of Trustees of Police and Firemen's Retirement System

Supreme Court of New Jersey - September 11, 2014 - A.3d - 2014 WL 4450553

Retired member of Police and Firemen’s Retirement System (PFRS) sought review of PFRS Board of Trustees’ decision to uphold Division of Pension and Benefits’ denial of member’s request to reassign survivors’ benefits from his disabled son as an individual to special needs trust (SNT) in his son’s name. The Superior Court, Appellate Division, affirmed. Member petitioned for certification, which was granted.

The Supreme Court of New Jersey held that SNT was permitted to stand in son’s place as beneficiary to whom survivors’ benefits were due.




TAX - NEW YORK

Baldwin Union Free School Dist. v. County of Nassau

Supreme Court, Appellate Division, Second Department, New York - September 10, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 06043

School district brought action against county, alleging ordinance establishing and imposing “service charges” upon exempt users of sewer system violated equal protection and due process, violated General Municipal Law and county charter, and that adoption of ordinance was precluded by doctrine of preemption. School district moved for preliminary injunction and county cross-moved for summary judgment. The Supreme Court, Nassau County, granted school district’s motion and denied county’s motion. County appealed.

The Supreme Court, Appellate Division, held that trial court’s denial of summary judgment should have been without prejudice to renewal upon the completion of discovery.

While Trial court providently exercised its discretion in denying county’s motion, in effect, for summary judgment declaring that ordinance establishing and imposing “service charges” upon exempt users of sewer system was an authorized exercise of county’s lawmaking authority and was constitutional under the New York and United States Constitutions, such denial should have been without prejudice to renewal upon the completion of discovery.




IMMUNITY - OHIO

Porter v. Probst

Court of Appeals of Ohio, Seventh District, Belmont County - August 29, 2014 - N.E.3d - 2014 -Ohio- 3789

Laid-off jail administrator filed complaint against county commissioners and sheriff alleging promissory estoppel, denial of sick leave benefit, due process violation, and tortious interference with employment, and subsequently moved to amend complaint to include county’s insurer. The Court of Common Pleas denied motion and granted summary judgment for defendants. Administrator appealed.

The Court of Appeals held that:




CONTRACTS - SOUTH CAROLINA

Stevens & Wilkinson of South Carolina, Inc. v. City of Columbia

Supreme Court of South Carolina - August 20, 2014 - S.E.2d - 2014 WL 4087917

In April 2003, the City entered into an MOU with Stevens & Wilkinson of South Carolina, Inc. (S&W) to develop a publicly-funded hotel. As architect, S&W was to complete sufficient preliminary design work to determine a guaranteed maximum price for the project, which would be used by the City to obtain municipal bond funding to cover the cost of the hotel. Pursuant to the MOU, the construction company was to pay S&W directly. On June 26, 2003, the City received a letter stating that S&W would complete its preliminary design on July 10, 2003, and would thereupon cease further work until the bond financing for the hotel was finalized. Realizing this could delay the start of construction, S&W offered to continue working the remaining ninety days until the anticipated bond closing date of October 13, 2003, but required assurance it would be compensated for the work it performed during this time frame. It provided an estimate requiring $650,000 through October 13 and $75,000 per week after that. On July 30, the City approved “$650,000 for interim architectural design services for a period of 90 days prior to bond closing.”

The bond closing did not occur as scheduled, but S&W nevertheless continued to work. On December 16, 2003, S&W submitted an invoice to the City for $697,084.79 for work that took place from July 10 to December 15, 2003. By letter dated December 17, 2003, S&W informed the construction company that the City had voted that day “to advance [$705,000.000] to the design team for design services and expenses at cost covering the time period between July 10, 2003 to December 15, 2003.” Because under the MOU the construction company was to pay S&W, not the City, the construction company agreed to reimburse the City for the funds paid to S&W after the bond closing. The City remitted $697,084.79 directly to S&W later that month. S&W continued to work on the project, but in March 2004, the City abandoned its plans under the MOU and ended its relationship with S&W. S&W received no further compensation and sued the City for breach of contract under the MOU and the July 2003 agreement. S&W then moved for partial summary judgment arguing it had a contract with the City as a matter of law based on the performance of and payment for architectural design services agreed to in July 2003. S&W’s motion clarified that it only sought resolution of whether there was a contract, and did not seek summary judgment on the issue of breach or damages.

The City argued there was no separate agreement and the payment of interim fees was merely an advance on fees under the MOU and furthermore, the MOU provided that S&W was to be paid by the construction company, not the City. The circuit court agreed with S&W and granted partial summary judgment on the sole issue of the existence of a contract under the July 2003 agreement. Specifically, the court found S&W made an offer by delivering its estimate to the City, and the City accepted the offer, “albeit on seemingly modified terms,” by voting to authorize the $650,000.

The City filed a Rule 59(e) motion, abandoning the argument that there was no contract. For the first time, the City argued the authorization of the $650,000 could not constitute an acceptance on “seemingly modified terms” because any modification of the terms resulted in a counteroffer, which S&W accepted by performance. It further argued that because S&W accepted by performance, the terms were limited to the counteroffer of $650,000. Because S&W had already been paid that sum, the City argued the court should find the City had fully performed and the contract was satisfied.

The Supreme Court of South Carolina held that city failed to preserve for appellate review assertion that contract was satisfied.




PUBLIC UTILITIES - TEXAS

Exelon Wind 1, L.L.C. v. Nelson

United States Court of Appeals, Fifth Circuit - September 8, 2014 - F.3d - 2014 WL 4421392

Qualifying wind generation facilities under the Public Utilities Regulatory Policies Act (PURPA) brought action against the Texas Public Utilities Commission (PUC), challenging the PUC’s requirement that only qualifying facilities that generate “firm power” were eligible to sell power through a legally enforceable obligation. The District Court granted summary judgment for the generation facilities. The PUC appealed.

The Court of Appeals held that:




EMPLOYMENT - ALASKA

Adamson v. Municipality of Anchorage

Supreme Court of Alaska - August 29, 2014 - P.3d - 2014 WL 4258361

Firefighter, who developed prostate cancer, filed a workers’ compensation claim under a new statute creating a presumption that certain diseases in firefighters, including prostate cancer, were work related when specific conditions were met. The Workers’ Compensation Board decided that the firefighter was eligible for benefits, and appeal was taken. The Workers’ Compensation Appeals Commission agreed that the firefighter had attached the presumption, but reversed the Board’s decision disallowing the expert testimony. Both parties petitioned for review.

The Supreme Court of Alaska held that:




LAND USE - CALIFORNIA

Citizens for Restoration of L Street v. City of Fresno

Court of Appeal, Fifth District, California - August 29, 2014 - Cal.Rptr.3d - 2014 WL 4254492

The City of Fresno approved a residential infill development project in downtown Fresno to build 28 two-story townhouses. The project site contained vacant parcels and two lots with houses built in the early 20th century. A citizens group interested in historical resources in downtown Fresno challenged the City’s approval of the townhouse project, particularly its decision to issue demolition permits for the two houses. The trial court decided the City violated certain procedural requirements of the California Environmental Quality Act (CEQA) in approving the project, but applied the correct legal standards in determining the two houses were not “historical resources” protected by CEQA. Both sides appealed.

The Court of Appeals concluded that CEQA allows a local lead agency, such as the City, to delegate the authority to approve a mitigated negative declaration and a project to a nonelected decisionmaking body such as the Preservation Commission. In this case, however, the Fresno Municipal Code did not actually authorize the Preservation Commission to (1) complete the environmental review required by CEQA and (2) approve the mitigated negative declaration. As a result, the Preservation Commission’s approval of the mitigated negative declaration did not comply with CEQA.

As to historical resources, the Court concluded that the substantial evidence test, rather than the fair argument standard, applies to a lead agency’s discretionary determination of whether a building or district is an historical resource for purposes of CEQA. Therefore, the trial court did not err when it applied the substantial evidence test to the City’s determination that no historical resources were impacted by the project.




TAX - DISTRICT OF COLUMBIA

District of Columbia v. 17M Associates, LLC

District of Columbia Court of Appeals - September 4, 2014 - A.3d - 2014 WL 4361554

Tenant filed petition claiming that the District of Columbia violated lease by imposing possessory interest tax. The Superior Court entered summary judgment in favor of tenant. District appealed.

The Court of Appeals held that:

“Real property classification” in statute permitting lessee or user disputing possessory interest tax assessment to appeal from a notice of proposed assessed value and real property classification in the same manner and under the same conditions as an owner referred to classes of taxable real property, not taxpayer’s exemption status under lease, and, thus, BRPAA lacked jurisdiction to decide if lease exempted District of Columbia tenant from the tax.

Tenant’s leasehold interest in District of Columbia land was a species of personal property, not part of “demised premises,” within meaning of lease requiring tenant to pay any new tax imposed upon the demised premises, if the tax was based on or arose out of the ownership, use, or operation of tenant’s improvements, and, thus, lease did not exempt tenant from possessory interest tax, even though it was measured by value of the property. Leased defined “demised premises” as including the District-owned land and the improvements, ways, easements, air and surface rights for that land, District could not have demised tenant’s possessory interest to it, and lease did not indicate that tenant was liable only for expressly authorized taxes.




ZONING - ILLINOIS

Gurba v. Community High School Dist. No. 155

Appellate Court of Illinois, Second District - September 3, 2014 - N.E.3d - 2014 IL App (2d) 140098

Owners of land adjacent to school football stadium brought action against school district and board of education, alleging bleachers constructed pursuant to district decision violated municipal zoning and stormwater ordinances. Board brought third-party action against city and superintendent, seeking declaratory judgment that bleacher project was not subject to such ordinances. The Circuit Court entered judgment finding that project was subject to ordinances. Board appealed.

The Appellate Court held that:




IMMUNITY - ILLINOIS

O'Toole v. Chicago Zoological Soc.

Appellate Court of Illinois, First District, Fourth Division - August 28, 2014 - N.E.3d - 2014 IL App (1st) 132652

Visitor who had tripped and fallen at zoo located in county forest preserve district brought action against zoological society, seeking damages for personal injuries. The Circuit Court dismissed the action on limitations grounds, and visitor appealed.

The Appellate Court held that zoological society was not “local public entity” and thus one-year limitations period under Local Governmental and Governmental Employees Tort Immunity Act did not apply to action.

Zoological society, a not-for-profit corporation located in county forest preserve district, was not a “local public entity,” and thus one-year limitations period under Local Governmental and Governmental Employees Tort Immunity Act did not apply to negligence action arising when visitor tripped and fell at zoo, since zoological society did not conduct “public business.” Contract between zoo and district gave zoological society entire control and management of the zoo, including control over daily operations, maintenance of zoo building and collections, over 90% of zoological society’s board of trustees and governing members were neither employees nor elected officials of the district, and zoo employees were not entitled to a state pension or state workers’ compensation.




PUBLIC FINANCE - INDIANA

Gary Community School Corp. v. Indiana Dept. of Local Government Finance

Tax Court of Indiana - August 29, 2014 - N.E.3d - 2014 WL 4258826

Gary Community School Corporation entered into an agreement with the Gary Community School Building Corporation to build/lease-back two elementary schools.

To pay its obligations under the lease, the School Corp. issued a bond and secured two common school loans. In the ensuing years, the School Corp. used surplus monies from its general fund to pay its rental obligations, but the surplus dwindled more rapidly than anticipated. Accordingly, the School Corp. incorporated an exempt debt service fund levy into its 2011 Budget. The School Corp. subsequently submitted the budget to the Indiana Department of Local Government Finance (DLGF) for review.

The DLGF reduced the School Corp.’s exempt debt service fund levy by removing all the amounts related to the payment of the rental obligations. The DLGF explained that it had done so: 1) because there was no indication that the School Corp. had used an exempt debt service fund levy to pay its rental obligations in the past; 2) School Corp. had not availed itself of the taxpayer remonstrance process; and 3) School Corp. had not established that there were insufficient funds in the general fund to satisfy its obligations. School Corp. appealed.

The Tax Court held that:




ZONING - LOUISIANA

Maw Enterprises, L.L.C. v. City of Marksville

Supreme Court of Louisiana - September 3, 2014 - So.3d - 2014-0090 (La. 9/3/14)

Property owner/commercial lessor brought action against city, seeking to recover damages for city’s denial of retail alcoholic beverage permit to lessee, which was convenience store operator. The District Court entered judgment in favor of landlord. City appealed.

The Supreme Court of Louisiana held that:

City did not owe duty to lessor to issue retail alcoholic beverage permit to lessee of lessor’s property, and therefore city was not liable to lessor for negligence stemming from denial of permit. Applicable statute’s reference to “premises” spoke to where a business engaged in the sale of alcohol could be located, it did not confer an independent right to a permit on the premises where the business was to be located, and statute made clear that the permits were directed to persons engaged in the business of manufacturing, supplying, or dealing in alcoholic beverages, not the property owner of the property on which the business was conducted.

Harm cause to lessor by city’s denial of retail alcoholic beverage permit to lessee that operated convenience store was not within the scope of protection afforded by the duty allegedly breached, and therefore city was not liable to lessor for negligence. It was highly unlikely that the moral, social, and economic considerations underlying the imposition of a duty to issue a retail alcoholic beverage permit to a qualified applicant encompassed the risk that a third party who had contracted with the applicant would thereby suffer an economic loss, especially when that loss was not even directly tied to the sales of alcohol the timely issuance of a permit would have allowed, but instead was based on decrease of gasoline sales at the store.




SCHOOLS - NEW MEXICO

Herrera v. Santa Fe Public Schools

United States District Court, D. New Mexico - August 29, 2014 - F.Supp.2d -

Students brought § 1983 action against city public schools alleging that their Fourth Amendment rights were violated during pat-down searches at school dances. Temporary restraining order enjoining schools from conducting such searches was granted. Schools moved for summary judgment.

The District Court held that:




IMMUNITY - NEW YORK

Dixon v. City of New York

Supreme Court, Appellate Division, Second Department, New York - August 27, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 05946

Mother and infant son brought action against city and city fire department alleging infant’s brain injuries were caused by negligence of ambulance dispatcher in sending wrong type of ambulance when mother experienced heavy vaginal bleeding and negligence of ambulance personnel in delaying transport of mother to hospital. The Supreme Court, Kings County, denied defendants’ motion for summary judgment. Defendants appealed.

The Supreme Court, Appellate Division, held that:

Actions of city ambulance dispatcher in sending basic life support (BLS) ambulance, instead of advanced life support (ALS) ambulance, to 911-report that pregnant woman was experiencing heavy vaginal bleeding were discretionary, and thus actions were protected by governmental immunity doctrine in personal injury lawsuit brought by woman and her infant child.

Actions of city’s emergency medical technicians (EMTs) and paramedics in responding to 911-report that pregnant woman was experiencing heavy vaginal bleeding in calling for advanced life support (ALS) ambulance based on amount of blood loss, in declining assistance of police officers on scene, in requiring woman to wait for ALS paramedics in her apartment, and in administering IV prior to transport to hospital were discretionary, and thus actions were protected by governmental immunity doctrine in personal injury lawsuit brought by woman and her infant child.




LIABILITY - NEW YORK

Telsaint v. City of New York

Supreme Court, Appellate Division, Second Department, New York - August 27, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 05974

Pedestrian brought slip and fall action against city. Following jury verdict in favor of pedestrian, the Supreme Court, Kings County, granted city’s motion to set aside verdict. Pedestrian appealed.

The Supreme Court, Appellate Division, held that:

Damages awarded to pedestrian in slip and fall action against city in amount of $750,000 for past pain and suffering and $1,500,000 for future pain and suffering deviated materially from what would be reasonable compensation.




PUBLIC UTILITIES - OHIO

In re Fuel Adjustment Clauses for Columbus S. Power Co. & Ohio Power Co.

Supreme Court of Ohio - September 3, 2014 - N.E.3d - 2014 -Ohio- 3764

After conducting annual review of electric utility’s recovery of fuel costs pursuant to fuel adjustment clause (FAC), the Public Utilities Commission entered order determining that a portion of proceeds utility had received in settlement agreement with fuel supplier should be credited against utility’s underrecovery of its fuel costs. Utility appealed, and association of industrial energy users cross-appealed.

The Supreme Court of Ohio held that PUC’s order was not unlawful retroactive ratemaking.

Order of PUC after review of electric utility’s recovery of fuel costs pursuant to FAC, determining that a portion of proceeds utility had received in settlement agreement with fuel supplier should be credited against utility’s underrecovery of its fuel costs, did not increase utility’s generation costs for year prior to the reviewed year, such as would constitute unlawful retroactive ratemaking. Under settlement agreement, utility paid below-market price for coal until end of year prior to reviewed year, after which 20-year contract between utility and supplier was terminated, and PUC’s audit report showed that, absent the settlement agreement, utility would have continued to pay below-market fuel costs during reviewed year.

Order of PUC after review of electric utility’s recovery of fuel costs pursuant to FAC, determining that a portion of proceeds utility had received in settlement agreement with fuel supplier should be credited against utility’s underrecovery of its fuel costs, did not seize proceeds that utility had booked under proper regulatory accounting principles for year prior to reviewed year, such as would constitute unlawful retroactive ratemaking. PUC, not utility, determined whether utility’s proceeds had been booked properly.




BENEFITS - OHIO

State ex rel. O'Grady v. Griffing

Supreme Court of Ohio - August 28, 2014 - N.E.3d - 2014 -Ohio- 3687

City employee, who applied with Public Employee Retirement System (PERS) to commence receiving her vested statutory retirement benefits, sought writ of mandamus to compel city’s fiscal officer to certify her final payroll. The Court of Appeals granted writ. City’s fiscal officer appealed as of right.

The Supreme Court of Ohio held that, without direct evidence that city employee had actually resigned or been terminated, fiscal officer had no clear legal duty to file the form with employee’s final-earnable-salary date for purposes of retirement benefits.

Without direct evidence that city employee had actually resigned or been terminated, city auditor could not know for sure that employee had carried out the intent expressed in the judge’s letter, stating that employee was going to take her Ohio Public Employees Retirement System (OPERS) retirement, but would remain as a court employee in her present position, and thus, auditor had no clear legal duty to file the form with employee’s final-earnable-salary date for purposes of retirement benefits. Employee never terminated her service for purposes of OPERS, because she failed to write a letter of resignation or get the judge to officially terminate her.




TAX - OHIO

Worthington City Schools Bd. of Edn. v. Franklin Cty. Bd. of Revision

Supreme Court of Ohio - August 27, 2014 - N.E.3d - 2014 -Ohio- 3620

Board of education (BOE) appealed real-property-valuation of the County Board of Revision (BOR) of a commercial building consisting of warehouse and office space. The Board of Tax Appeals (BTA) ordered that the auditor’s valuation be reinstated. Taxpayer appealed.

The Supreme Court of Ohio held that:

Board of Tax Appeals (BTA) was precluded from reverting to auditor’s valuation of commercial real property consisting of warehouse and office space in spite of the its findings that taxpayer’s opinion of value, under income approach, lacked market data, where county board of revision (BOR) adopted new value based on owner’s opinion of value, which shifted burden of going forward with evidence to city board of education (BOE), and no new evidence was presented at the BTA.




BALLOT INITIATIVE - OHIO

State ex rel. Columbus Coalition for Responsive Govt. v. Blevins

Supreme Court of Ohio - August 29, 2014 - N.E.3d - 2014 -Ohio- 3745

Citizens group brought action seeking mandamus to compel city clerk to verify signatures on an initiative petition and submit the proposed initiative to city council.

The Supreme Court of Ohio held that city clerk had no duty to submit citizen coalition’s precirculation copy of proposed initiative petition to city council, where city’s charter was silent on the subject of precirculation requirements, which invoked statute requiring such petitions to be filed with city’s auditor.




TAX - RHODE ISLAND

Town of Johnston v. Federal Housing Finance Agency

United States Court of Appeals, First Circuit - August 27, 2014 - F.3d - 2014 WL 4237996

The Town of Johnston, Rhode Island and the Commissioners of Bristol County, Massachusetts (“the municipalities”) brought separate actions against the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), and the Federal Housing Finance Agency (“FHFA”) (collectively, “the entities”), alleging that the entities failed to pay taxes on the transfer of property.

Federal district courts in Massachusetts and Rhode Island granted the entities’ motions to dismiss based on statutory exemptions from taxation.

The municipalities appealed, claiming that the transfer tax is a tax on “real property” and therefore falls outside the entities’ tax exemptions, and that the entities’ tax exemptions themselves are unconstitutional.

Court of Appeals wasn’t buying it.




ANNEXATION - TENNESSEE

State ex rel. Garrett v. City of Norris

Court of Appeals of Tennessee - August 28, 2014 - Slip Copy - 2014 WL 4260848

The City of Norris passed two annexation ordinances on the same day. The second territory to be annexed was contiguous to the city only through bordering the territory annexed earlier that same day.

A property owner in the second annexed territory sued Norris in a bid to stop the annexation of this second territory (the “Territory”).

The Trial Court eventually voided the annexation of the Territory on the basis that the Territory was not contiguous to the city. Norris appealed.

The Court of Appeals held that the annexation ordinance purporting to annex the Territory was void because at the time of the passage of the annexation ordinance, the first annexation was not yet operative and the Territory, therefore, was not contiguous to the city as required by law.




CONTRACTS - TEXAS

Zachry Const. Corp. v. Port of Houston Authority of Harris County

Supreme Court of Texas - August 29, 2014 - S.W.3d - 2013 WL 9600952

Construction contractor brought action against county port authority for breach of contract. The District Court entered judgment on jury verdict for contractor. Port authority and contractor appealed.

The Supreme Court of Texas held that:




SPECIAL ASSESSMENTS - WISCONSIN

Yankee Hill Housing Partners v. City of Milwaukee

Court of Appeals of Wisconsin - September 3, 2014 - Slip Copy - 2014 WL 4328201

Yankee Hill is a large residential apartment complex in Milwaukee that paid over $196,000 in BID special assessments for tax years 2005 through 2011. The City of Milwaukee added BID special assessments to Yankee Hill’s property tax bill during those years because the South Tower of the Yankee Hill complex lies within a business improvement district.

Yankee Hill eventually discovered that the BID special assessments it paid were contrary to WIS. STAT. § 66.1109(5)(a), which prohibits a municipality from imposing such assessments on real property used exclusively for residential purposes. Yankee Hill contacted various City authorities and requested a refund. The City refused, not because it believed that it was correct to impose the assessments, but because it believed that, pursuant to WIS. STAT. § 74.35(5)(a), any challenges to a special assessment must be brought by January 31 for the year in which the tax is payable and Yankee Hill’s challenges were not timely made.

The Court of Appeals disagreed, concluding that neither § 893.80(1d) nor any statute of limitations barred Yankee Hill’s claim.

Yankee Hill was not required to comply with the notice of claim statute, WIS. STAT. § 893.80(1d), because it gave the City actual notice of the claim and the City had not been prejudiced.




ZONING - DISTRICT OF COLUMBIA

Howell v. District of Columbia Zoning Com'n

District of Columbia Court of Appeals - August 14, 2014 - A.3d - 2014 WL 4085785

Neighbors sought review of Zoning Commission’s approval of zoning map amendment and application for a planned unit development (PUD).

The Court of Appeals held that:




TAX - INDIANA

Indianapolis Racquet Club, Inc. v. Marion County Assessor

Tax Court of Indiana - August 21, 2014 - N.E.3d - 2014 WL 4116487

Owner contended that Indiana Board of Tax Review erred when it found that the Indianapolis Racquet Club, Inc. failed to establish a prima facie case that its land assessments were excessive or that they were not uniform and equal.

The Tax Court held that:




LIABILITY - LOUISIANA

Odom v. Fair

Court of Appeal of Louisiana, Second Circuit - August 20, 2014 - So.3d - 49, 274 (La.App. 2 Cir. 8/20/14)

Tenant brought action against her landlord, a city housing authority, after a dog owned by another tenant bit her, alleging that housing authority failed to monitor its premises for risks and hazards, failed to require tenant to keep dog in a secured area, and allowed tenant to maintain a dog known to attack without provocation. The District Court entered judgment in favor of tenant after a bench trial. Housing authority appealed.

The Court of Appeal held that housing authority did not have actual knowledge of vicious propensities of dog as required to impose liability on it for tenant’s injuries.

Dog had never bit or attacked anyone prior to incident, tenant did not report that dog was a vicious animal, and housing authority’s maintenance crew that visited dog owner’s property was not tasked with enforcing pet policy or inspecting for technical violations of lease.




LIABILITY - MINNESOTA

Shariss v. City of Bloomington

Court of Appeals of Minnesota - August 18, 2014 - N.W.2d - 2014 WL 4056083

Motorist brought negligence action against city and snowplow driver after snowplow backed into motorist while making room for school bus. The District Court denied city’s and snowplow driver’s motion for summary judgment on immunity grounds, and city and snowplow driver appealed.

The Court of Appeals held that snowplow driver’s decision to back up was ministerial rather than discretionary.

City snowplow driver’s decision to place snowplow in reverse to allow school bus to proceed was ministerial rather than discretionary such that driver did not have discretionary function immunity from motorist’s negligence action arising out of collision between snowplow and motorist’s vehicle. Snowplow driver was stopped and was waiting in a queue behind another snowplow, and based on standard operating procedure, which imposed a duty to maintain traffic flow, driver decided to reverse his snowplow and began to back up.




HOUSING - MINNESOTA

Housing and Redevelopment Authority of Duluth v. Lee

Supreme Court of Minnesota - August 27, 2014 - N.W.2d - 2014 WL 4212688

Public housing authority (PHA) brought eviction action against tenant in Section 8 federally-subsidized housing after tenant failed to timely pay rent and late fees imposed by PHA for three consecutive months. The District Court granted summary judgment in favor of PHA, holding that monthly late fee assessed by PHA was reasonable, and that federal regulations preempted state law governing fees for late payment of rent. Tenant appealed.

The Supreme Court of Minnesota held that:






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