Cases





CONTRACTS - WASHINGTON

Public Hosp. Dist. No. 1 of King County v. University of Washington

Court of Appeals of Washington, Division 1 - June 23, 2014 - P.3d - 2014 WL 2853894

Successor officers of county hospital district sought to invalidate strategic alliance agreement between it and state university that established means for joint or cooperative action between parties for operation of district’s health care system as ultra vires.

The Superior Court granted university summary judgment. District appealed.

The Court of Appeals held that the agreement was not ultra vires, despite contention that agreement delegated district’s core legislative powers to others. The agreement was authorized by statutes governing public hospital districts and Interlocal Corporation Act, agreement was not unlawful delegation of district’s powers, and agreement was binding on successor officers of district, such that mere view of successor officers as to validity of agreement did not render it ultra vires.




BONDS - WISCONSIN

Stifel, Nicolaus & Co., Inc. v. Lac Courte Oreilles Band of Lake Superior Chippewa Indians of Wisconsin

United States District Court, W.D. Wisconsin - June 19, 2014 - Slip Copy - 2014 WL 2801236

In this long-running bond litigation, the District Court granted Stifel, Nicolaus & Company, Inc.’s motion for equitable reformation of its Bond Purchase Agreement with the Lac Courte Oreilles Band of Lake Superior Chippewa Indians of Wisconsin (the “Band”).

The parties had mistakenly executed version 6 of the BPA – which provided for jurisdiction by the Tribal Court – rather than the final version 8, which granted jurisdiction to the District Court.

However, the court denied Stifel’s motion for declaratory judgment that the Band may not proceed to sue Stifel in a currently-pending action in Tribal Court. The court gave Stifel “yet another” opportunity to proffer additional evidence, “if any,” that the forum selection clause in the Bond Purchase Agreement clearly precluded the Band from proceeding in Tribal Court, given that the jurisdiction of the District Court was not explicitly exclusive.




GOVERNMENT CLAIMS ACT - WYOMING

Stroth v. North Lincoln County Hosp. Dist.

Supreme Court of Wyoming - June 23, 2014 - P.3d - 2014 WY 81

Personal representative of deceased patient’s estate brought wrongful death action against county hospital district, town, and ambulance service after patient died from complications following his treatment at hospital. The District Court dismissed based on representative’s failure to comply with Wyoming Governmental Claims Act (WGCA). Representative appealed.

The Supreme Court of Wyoming held that:




IMMUNITY - ALABAMA

Ex Parte City of Midfield

Supreme Court of Alabama - June 13, 2014 - So.3d - 2014 WL 2619862

Motorist and his passenger’s estate filed various negligence claims against city and two of its police officers in connection with police chase that culminated in collision of suspect’s vehicle with motorist’s vehicle. The Circuit Court denied summary judgment motion filed by defendants that was predicated on state-agent immunity. Defendant petitioned for writ of mandamus.

The Supreme Court of Alabama held that:




MUNICIPAL ORDINANCE - CALIFORNIA

Luis M. v. Superior Court of Los Angeles County

Supreme Court of California - June 19, 2014 - P.3d - 2014 WL 2769024

The Superior Court found wardship petition alleging that minor committed vandalism to be true, placed minor on deferred entry of judgment (DEJ), and ordered minor to pay restitution. Minor petitioned for writ of mandate. The Court of Appeal granted petition. The Supreme Court granted review, superseding the opinion of the Court of Appeal.

The Supreme Court of California held that graffiti restitution model that did not reflect actual cleanup cost did not support restitution award.

City’s failure to adopt a Graffiti Removal and Damage Recovery Program ordinance authorizing the probation department to recoup its costs for graffiti abatement as restitution in a juvenile proceeding, and its failure to update its cost findings within the three years preceding minor’s victim restitution order, made the city’s cost model unavailable as a basis for determining restitution for minor’s offense of vandalism based on acts of graffiti, where the model represented an estimate of an average of all costs of graffiti cleanup rather than the actual economic losses incurred as the result of the minor’s conduct, and the model included law enforcement investigative costs.




IMMUNITY - GEORGIA

Georgia Dept. of Corrections v. Couch

Supreme Court of Georgia - June 16, 2014 - S.E.2d - 2014 WL 2700961

Inmate filed suit against Department of Corrections for injuries sustained while working on paint detail at warden’s house. Following jury trial, the State Court entered judgment on jury’s verdict for inmate, and then granted inmate’s motion for attorney fees and costs under statute authorizing plaintiff to recover same when offer of settlement is rejected and amount recovered is more than 125 times settlement offer. Department appealed. The Court of Appeals affirmed, and certiorari was granted.

The Supreme Court of Georgia held that:

Sovereign immunity was waived, under offer of settlement statute, as to award for attorney fees and litigation expenses in inmate’s premises liability action against the Department of Corrections. While payment of attorney fees and litigation expenses under the statute were not made as compensation for a tort “claim” within meaning of the Georgia Tort Claims Act (GTCA), they were made as an incident of Department’s inappropriate conduct in the underlying tort action.




IMMUNITY - IDAHO

Block v. City of Lewiston

Supreme Court of Idaho., Coeur d'Alene, April 2014 Term - June 17, 2014 - P.3d - 2014 WL 2735287

Owner of home in which foundation cracked brought action against city, city engineer, and previous owner of property, alleging negligence and gross negligence stemming from city’s issuance of two permits to previous owner allowing previous owner to place and grade fill. The District Court granted summary judgment in favor of city and city engineer. Property owner appealed.

The Supreme Court of Idaho held that:




PUBLIC UTILITIES - IDAHO

Idaho Power Co. v. New Energy Two, LLC

Supreme Court of Idaho., Boise, April 2014 Term - June 17, 2014 - P.3d - 2014 WL 2726924

Electricity providers, which had entered into agreements with power company for the sale of electricity generated by use of renewable energy, filed motion requesting permissive appeal from Public Utilities Commission’s determination that it had jurisdiction to decide whether force majeure clause in agreements excused electricity providers from their contractual obligations to have their power generation facilities constructed and in operation by specified dates in agreements. Permissive appeal was granted.

The Supreme Court of Idaho held that Commission had authority to adjudicate whether or not event of force majeure occurred.

Public Utilities Commission had authority to adjudicate whether event of force majeure occurred that excused electricity providers’ performance under energy sales agreements with power company, since parties had agreed to have Commission resolve disputes regarding interpretation of agreements. Provision providing that Commission would resolve parties’ disputes included determination of whether electricity providers’ claimed force majeure was within scope of energy sales agreements’ force majeure clause, and central issue of parties’ dispute was determination of whether power company still had obligation under agreements to purchase power from electricity providers.




Illinois Recovery of Fraudulently Obtained Public Funds Act - ILLINOIS

LaGrange Park Public Library Dist. ex rel. Cronin v. J.P. Morgan Securities, Inc.

Appellate Court of Illinois, First District, Second Division - June 17, 2014 - Not Reported in N.E.3d - 2014 IL App (1st) 122723-U

Resident-taxpayer filed a taxpayer derivative action as a putative class action pursuant to section 104 of the Illinois Recovery of Fraudulently Obtained Public Funds Act against J.P. Morgan Securities, Inc. on behalf of the LaGrange Park Public Library District.

Plaintiff sought to recover alleged overcharges fraudulently charged by defendants in their “yield-burning” scheme in advance-defeasance refinancing of municipal debt held by the District.  Plaintiff argued that defendants conducted this same yield-burning scheme against other municipalities and similarly excessively marked up the Treasuries sold.

The trial court denied plaintiff’s motion for class certification, reasoning that the Code did not permit such an action and that common questions of fact and law would not predominate over questions affecting individual members. The court subsequently granted J.P. Morgan’s motion for summary judgment. Plaintiff appealed.

The Appellate Court held that:

 




INVERSE CONDEMNATION - NEW JERSEY

Wreden v. Township of Lafayette

Superior Court of New Jersey, Appellate Division - June 17, 2014 - A.3d - 2014 WL 2718155

Property owners brought action against township, township’s engineer, and excavation contractor, asserting that retaining wall and drainage structures, which were built next to road and owners’ land in right of way, caused unauthorized diversion of stormwater runoff onto land. The Superior Court granted township’s motion to dismiss and later denied property owners’ motion to amend complaint to add inverse-condemnation claim. Property owners appealed.

The Superior Court, Appellate Division, held that:




LIABILITY - IOWA

Doe v. New London Community School Dist.

Supreme Court of Iowa - June 20, 2014 - N.W.2d - 2014 WL 2782295

Former high school student brought action against school district, asserting claims for respondeat superior, negligent hiring, negligent retention, negligent supervision, and negligent infliction of emotional distress arising from student’s alleged sexual abuse by teacher. District moved for summary judgment on statute of limitations grounds. The District Court denied district’s summary judgment motion. The Supreme Court granted district’s application for interlocutory appeal.

The Supreme Court of Iowa held that:




LIABILITY - IOWA

Madden v. City of Iowa City

Supreme Court of Iowa - June 13, 2014 - N.W.2d - 2014 WL 2619407

Bicyclist, who fell while riding on a sidewalk abutting grounds of state university, brought action against city alleging that defect in sidewalk caused accident. City brought the State in as a third-party defendant and cross-claimed for contribution from State. State moved to dismiss cross-claim. The District Court denied State’s motion. State moved for interlocutory review.

The Supreme Court of Iowa held that:




MUNICIPAL ORDINANCE - MAINE

State v. Brown

Supreme Judicial Court of Maine - June 17, 2014 - A.3d - 2014 ME 79

The state brought a complaint against farmer for violations of state licensing and labeling laws. The Superior Court entered summary judgment in favor of the state and enjoined farmer from selling milk without a license, selling unpasteurized milk without labeling it as such, and operating a food establishment without a license. It later imposed civil penalties totaling $1000 and costs of $132 and denied farmer’s motion to stay and motion to alter or amend the judgment. Farmer appealed.

The Supreme Judicial Court of Maine held that:




ENVIRONMENTAL - NEW YORK

Suffolk County Water Authority v. Dow Chemical Co.

Supreme Court, Suffolk County, New York - June 16, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 24155

Municipal water supplier brought action against manufacturer of and distributor of a chemical used by drycleaners and others, i.e., perchloroethylene (Perc or PCE), alleging toxic chemical contamination of supplier’s water wells. Defendants filed motion to dismiss for failure to state a cause of action.

The Supreme Court, Suffolk County held that water supplier’s allegations were sufficient to invoke market share liability.

Under market share liability of product manufacturers, the burden of identification shifts to defendants if plaintiff establishes a prima facie case on every element of the claim except for identification of the actual tortfeasor or tortfeasors, and plaintiff has joined manufacturers representing a substantial share of the relevant market.

Allegations of municipal water supplier in action against manufacturer of and distributor of a chemical used by drycleaners and others, i.e., perchloroethylene (Perc or PCE), that perc was defective from the moment of its manufacture, that it was a generically fungible product, and that it took many years from seepage into ground until it appeared in one of supplier’s wells, were sufficient to invoke market share liability, for purposes of stating a cause of action against manufacturer and distributor for toxic chemical contamination of supplier’s water wells.




IMMUNITY - NORTH CAROLINA

Bynum v. Wilson County

Supreme Court of North Carolina - June 12, 2014 - S.E.2d - 2014 WL 2612632

Pedestrian brought action against county, as lessee, and lessor of county building after he allegedly fell down the front exterior stairs, sustaining injuries. The Superior Court denied defendants’ motions for summary judgment. Defendants appealed. The Court of Appeals affirmed in part and dismissed in part. Defendants petitioned for discretionary review.

The Supreme Court of North Carolina held that county was entitled to the defense of governmental immunity from pedestrian’s premises liability action.

County’s responsibility with regard to locating, supervising, and maintaining county buildings that served the county’s discretionary, legislative, and public functions, was governmental in nature, and thus, county, as lessee of building in which county’s water department offices were located, was entitled to the defense of governmental immunity from pedestrian’s premises liability action, regardless of the pedestrian’s involvement with the county and the reason for his presence at a governmental facility.




TAX - OHIO

Health Care REIT, Inc. v. Cuyahoga Cty. Bd. of Revision

Supreme Court of Ohio - June 18, 2014 - N.E.3d - 2014 -Ohio- 2574

Taxpayer and school district appealed decision of county board of revision, determining taxation value of taxpayer’s real property, an assisted living facility. The Board of Tax Appeals (BTA) entered decision assigning a value based on taxpayer’s appraisal. School district appealed.

The Supreme Court of Ohio held that:

Sale of real property was not recent, and thus sale price was not required to be considered to be the property’s true value for taxation purposes, where sale had occurred 26 months prior to tax lien date, there had been two appraisals of property since sale neither of which had used sale price to determine value, and general market changes had caused a decline in property value since sale.

BTA could determine tax value of real property, an assisted living facility, based on appraisal that used comparisons to apartment buildings in order to distinguish the property’s real-property value from its business-property value, even though city zoning did not permit use of property as an apartment building.




TAX - OKLAHOMA

Board of County Com'rs of Kay County, Okla. v. Federal Housing Finance Agency

United States Court of Appeals, District of Columbia Circuit - June 13, 2014 - F.3d - 2014 WL 2619884

County board of commissioners brought action against the Federal Housing Finance Agency, as conservator for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) for failure to pay transfer taxes. The United States District Court for the District of Columbia, dismissed the action. The board appealed.

The Court of Appeals held that:




ZONING - PENNSYLVANIA

Geryville Materials, Inc. v. Board of Supervisors of Lower Milford Tp.

Commonwealth Court of Pennsylvania - June 18, 2014 - Not Reported in A.3d - 2014 WL 2754930

Geryville Materials, Inc. and the Board of Supervisors of Lower Milford Township each appealed an order of the Court of Common Pleas of that ruled upon Geryville’s substantive challenge to several provisions of the Township’s Zoning Ordinance.

The trial court held that almost all of Section 523, entitled “Extraction of Natural Resources,” was preempted by the Noncoal Surface Mining Conservation and Reclamation Act (Noncoal Act). The trial court also held that Section 470, entitled “Protection of Natural Resources,” was not unduly restrictive of non-coal surface mining in the Township and, thus, was constitutional and compliant with the Pennsylvania Municipalities Planning Code (MPC).

The appeals court affirmed.




INVERSE CONDEMNATION - WASHINGTON

Nelson v. Skamania County

Court of Appeals of Washington, Division 2 - June 17, 2014 - Not Reported in P.3d - 2014 WL 2796031

Landowner sued Skamania County, alleging that the County’s former landfill operation on adjacent property caused debris to flow onto his property. The County successfully moved for summary judgment arguing that all of landowner’s claims were barred by applicable statutes of limitations.

Landowner appealed, arguing (1) the trespass from migrating debris was both continuing and abatable and the County was liable for damages until the County removed the debris, (2) if the trespass was not abatable, the County was liable under a theory of inverse condemnation for any takings that had occurred in the 10 years prior to landowner filing suit, and (3) the trial court abused its discretion in failing to exclude evidence of a code violation landowner received four years before filing this lawsuit.

The Court of Appeals held that:




LIABILITY - ALABAMA

Ex Parte Labbe

Supreme Court of Alabama - June 6, 2014 - So.3d - 2014 WL 2535344

Surviving family members sued city, alleging negligent and/or wanton hiring, training, or supervision of individual firefighters who allegedly failed to recover all of decedent’s remains from fire scene. City moved for summary judgment. The Circuit Court denied motion. City filed petition for writ of mandamus.

The Supreme Court of Alabama held that:




LIABILITY - CONNECTICUT

Coley v. City of Hartford

Supreme Court of Connecticut - June 10, 2014 - A.3d - 312 Conn. 150

Administrator of estate of mother of family violence victim brought wrongful-death action against city, alleging that city’s police officers, who responded to victim’s complaint that father of her child appeared at her house, should have remained at scene. The Superior Court granted city’s motion for summary judgment. Administrator appealed. The Appellate Court affirmed. Administrator appealed.

The Supreme Court of Connecticut held that police officers’ duty under city’s police response procedures policy to remain at scene was discretionary, not ministerial, and thus city was entitled to discretionary-act immunity.

City police officers’ duty under city’s police response procedures policy to remain at scene regarding incident in which abuser allegedly violated domestic violence protective order by coming to victim’s residence was discretionary, not ministerial, and thus city was entitled to discretionary-act immunity regarding wrongful-death action arising from fatal shooting of victim’s mother when abuser returned to residence after officers left to obtain arrest warrant, although policy stated that officers shall remain at the scene for a reasonable time if an arrest were not made. Policy language vesting discretion with police officers to determine what constituted reasonable time was inextricably intertwined with policy language stating that police officers “shall remain” at the scene.




INVERSE CONDEMNATION - FLORIDA

Ocean Palm Golf Club Partnership v. City of Flagler Beach

District Court of Appeal of Florida, Fifth District - May 30, 2014 - So.3d - 2014 WL 2217255

Landowners brought inverse condemnation action against city, challenging the city’s refusal to change the comprehensive plan’s designation of former golf course property, which consisted of two parcels, to allow for residential development of property. The Circuit Court entered judgment in favor of city. Landowner appealed.

The District Court of Appeal held that:




MUNICIPAL ORDINANCE - FLORIDA

Masone v. City of Aventura

Supreme Court of Florida - June 12, 2014 - So.3d - 2014 WL 2609201

The Supreme Court of Florida took up the issue of whether municipal ordinances imposing penalties for red light violations detected by devices using cameras were invalid because they were preempted by state law.

The Court concluded that such municipal ordinances were preempted by state law.




IMMUNITY - IOWA

Godfrey v. State

Supreme Court of Iowa - June 6, 2014 - N.W.2d - 2014 WL 2553412

Workers’ compensation commissioner brought action against State, governor, lieutenant governor, chief of staff to governor, legal counsel to the governor, communications director to the governor, and director of Iowa Workforce Development stemming from alleged demand for commissioner’s resignation and subsequent salary reduction. After the attorney general certified that defendants were acting within the scope of their employment at time of allegations, the District Court granted motion to substitute State for individual defendants on some counts and dismissed other counts. Commissions applied for interlocutory review, which was granted.

The Supreme Court of Iowa held that attorney general’s certification that employees acted within scope of employment was inapplicable to common law claims against employees in individual capacities.

Attorney general’s certification that individual state-employee defendants were acting within the scope of their employment at time of allegations in action by workers’ compensation commissioner, such that certain immunities applied pursuant to Iowa Tort Claims Act (ITCA), was not applicable to commissioner’s common law claims alleging that the individual defendants acted outside the scope of their employment, where provision of ITCA governing such certification expressly applied only to claims under the ITCA, and, when a state employee acted outside the scope of his or her employment, the employee was responsible for the attorney fees and the damages, not the public.




CRIMINAL - LOUISIANA

State v. Price

Court of Appeal of Louisiana, Third Circuit - June 4, 2014 - So.3d - 2014-127 (La.App. 3 Cir. 6/4/14)

Defendant was convicted, in the District Court of resisting an officer. Defendant appealed.

The Court of Appeal held that:




SCHOOLS - LOUISIANA

Robinson v. St. Tammany Parish Public School System

United States Court of Appeals, Fifth Circuit - May 29, 2014 - Fed.Appx. - 2014 WL 2211976

Parent of high school student who was transferred to another school for three months after hearing on allegations he engaged in sexual misconduct on school bus during field trip filed § 1983 action against public school board and its supervisor of administration, who was disciplinary hearing officer, alleging deprivation of First and Fourteenth Amendment rights and violation of student’s due process rights protected by Louisiana constitution. Parent also raised state law claims of intentional infliction of emotional distress (IIED) against supervisor of administration, negligence for board’s alleged failure to train and supervise employees, and defamation. The District Court granted summary judgment in favor of defendants. Parent appealed.

The Court of Appeals held that:




BONDS - LOUISIANA

Bluebonnet Hotel Ventures, L.L.C. v. Wells Fargo Bank, N.A.

United States Court of Appeals, Fifth Circuit - June 6, 2014 - F.3d - 2014 WL 2565661

Prospective issuer of variable rate tax-exempt bonds brought action against bank under Louisiana law, seeking rescission of interest-rate swap agreement it had entered into with bank, as prospective issuer of letter of credit for the bonds, which were issued without the letter of credit. The District Court granted summary judgment to bank. Borrower appealed.

The Court of Appeals held that inability of borrower to obtain letter of credit was not failure of cause constituting error, as would provide basis for rescission of swap agreement.

The swap agreement specifically obliged borrower to pay bank any unfavorable difference between fixed interest rate amount and floating interest rate amount as such payments became due, irrespective of whether borrower was able to obtain a letter of credit from bank or any other financial institution.

Interest-rate swap agreement was not ambiguous regarding parties’ intent, as would be required under Louisiana law for admission of parol evidence, as swap agreement specifically obliged borrower to pay bank any unfavorable difference between fixed interest rate amount and floating interest rate amount as such payments became due, irrespective of whether borrower was able to obtain a letter of credit from bank or any other financial institution.




ZONING - MICHIGAN

Prose v. Clough

Court of Appeals of Michigan - June 10, 2014 - Not Reported in N.W.2d - 2014 WL 2600743

Glennbrook Beach Association is a homeowners association, founded and incorporated under the Summer Resort Owners Corporation Act. Landowner owns property in Glennbrook.

Landowner alleged that the Township did not have authority to exercise zoning powers over territory incorporated by Glennbrook.

Landowner commenced action against Township in circuit court seeking declaratory relief to determine which governmental entity had zoning powers over his land, a writ of prohibition to prevent Township from continuing to exceed the bounds of their offices, a writ of mandamus against Township officials to cease their efforts to prevent the exercise of his property rights, and an order for superintending control over the Township’s zoning board of appeals to prevent it from asserting jurisdiction over plaintiff’s property.

The Court of Appeals held that the Township had jurisdiction and authority to zone property located within Glennbrook’s territory pursuant to the Michigan Zoning Enabling Act (MZEA).




IMMUNITY - MISSISSIPPI

City of Jackson v. Lewis

Supreme Court of Mississippi - June 5, 2014 - So.3d - 2014 WL 2535237

Occupants of vehicle and wrongful death beneficiaries filed personal injury suit against city, stemming from incident in which fleeing suspect collided with plaintiffs’ vehicle following police chase. The Circuit Court found in favor of plaintiffs. City appealed. The Court of Appeals reversed and remanded. Plaintiffs petitioned for writ of certiorari, which was granted.

The Supreme Court of Mississippi held that:




EMPLOYMENT - NEW MEXICO

Weiss v. Board of Educ. of Santa Fe Public Schools

Court of Appeals of New Mexico - June 3, 2014 - P.3d - 2014 WL 2534073

After teacher’s request for hearing on board of education’s decision not to renew her teaching contract was denied, teacher filed suit against board and public school superintendent, seeking declaratory judgment that board and superintendent were required to provide teacher with hearing to contest her termination. The District Court ruled in favor of teacher. Board and superintendent appealed.

The Court of Appeals held that teacher, as certified school employee in her third consecutive year of employment, was entitled to heightened substantive and procedural protections for employees who had been employed for at least three consecutive years, even though teacher had not actually completed all three years of employment at time she received her notice of termination.

Act of termination under School Personnel Act referred to act of not reemploying employee for ensuing school year, such that teacher would have completed her full third year of employment after receiving notice, any difference in treatment between certified and non-certified employees with respect to termination under Act was by design, and sections of Act governing mentorship, evaluation, and professional development did not demonstrate intent that teachers who had not yet completed their third consecutive year of employment would be excluded from heightened protections.




LIABILITY - NEW YORK

Wittorf v. City of New York

Court of Appeals of New York - June 5, 2014 - N.E.3d - 2014 N.Y. Slip Op. 04037

Bicyclist brought action against city for personal injuries sustained when she hit pothole. Following jury verdict for bicyclist, the Supreme Court, New York County, granted city’s motion to set aside the verdict. Bicyclist appealed. The Supreme Court, Appellate Division affirmed. Bicyclist appealed.

The Court of Appeals of New York held that city employee was acting in proprietary capacity at time of bicyclist’s accident.

City employee was engaged in proprietary function at time he failed to warn bicyclist of conditions in transverse when bicyclist hit pothole, as required to hold city liable for breach of proprietary duty to keep its roads and highways in a reasonably safe condition. Employee was in park on the day of accident specifically to oversee road maintenance project in his capacity as a city department of transportation supervisor, at the time he failed to warn bicyclist, he was blocking transverse to vehicular traffic in preparation for road repair, and although maintenance work had not yet begun, employee and his crew could not have repaired roadway without having closed road to traffic.




LAND USE - NEW YORK

Capruso v. Village of Kings Point

Court of Appeals of New York - June 12, 2014 - N.E.3d - 2014 N.Y. Slip Op. 04228

Village residents and state brought two related actions against village, mayor, and board of trustees, seeking declaratory and injunctive relief predicated on village’s use of alleged dedicated parkland for non-park purposes without legislative approval, in violation of the public trust doctrine.

The Court of Appeals held that:




TRUST INDENTURE - NEW YORK

Quadrant Structured Products Co., Ltd. v. Vertin

Court of Appeals of New York - June 10, 2014 - N.E.3d - 2014 N.Y. Slip Op. 04114

Noteholder, individually and derivatively on behalf of corporate issuer of notes covered by trust indentures, sued issuer’s purported indirect parent company, purported parent’s affiliate, issuer’s board of directors, and issuer as nominal defendant, asserting, inter alia, claims for breach of fiduciary duty, fraudulent transfer, breach of implied covenant of good faith and fair dealing, tortious interference with contractual relations, and civil conspiracy. The Delaware Court of Chancery dismissed complaint based on noteholder’s failure to comply with indentures’ no-action clauses. Noteholder appealed. The Delaware Supreme Court remanded with directions. The Court of Chancery issued report on remand, holding that motion to dismiss should be granted in part and denied in part. The Delaware Supreme Court certified questions of New York law to the New York Court of Appeals.

The Court of Appeals held that:

No-action clauses of trust indentures for notes issued by corporation, which clauses applied only to contractual claims arising under the indentures, and which indentures triggered the trustee’s duties only upon an event of default, did not preclude a noteholder, individually and derivatively on behalf of corporate issuer, from bringing claims seeking damages and injunctive relief for breaches of fiduciary duty, fraudulent transfer, breach of covenant of good faith and fair dealing, intentional interference with contractual relations, and conspiracy, against issuer’s purported indirect parent company, purported parent’s affiliate, issuer’s board of directors, and issuer as nominal defendant, relating to alleged scheme to ensure that junior noteholders were paid, despite their inferior status vis-a-vis plaintiff noteholder’s senior notes. There had been no default, and instead, the action was seeking to avoid default on senior notes held by plaintiff noteholder.




MUNICIPAL ORDINANCE - NORTH CAROLINA

King v. Town of Chapel Hill

Supreme Court of North Carolina - June 12, 2014 - S.E.2d - 2014 WL 2612603

Operator of vehicle towing business brought action against city seeking to prevent enforcement of city ordinances relating to regulation of towing practices and mobile phone usage. The Superior Court granted injunction enjoining enforcement of ordinances. City appealed. The Court of Appeals reversed. Operator petitioned for discretionary review.

The Supreme Court of North Carolina held that:




IMMUNITY - OHIO

State ex rel. Cleveland v. Astrab

Supreme Court of Ohio - June 10, 2014 - N.E.3d - 2014 -Ohio- 2380

Plaintiffs brought action against city and city police officers, alleging tort claims arising when pedestrian was struck and killed by car engaged in high-speed chase with officers. The Court of Common Pleas denied immunity-based motion to dismiss, and city and officers appealed. The Court of Appeals reversed and remanded. On remand, the Court of Common Pleas dismissed plaintiffs’ complaint without prejudice. City and officers brought action for writ of mandamus, seeking to compel trial judge to dismiss the action with prejudice on immunity grounds, as allegedly required by mandate of Court of Appeals. The Court of Appeals denied the writ, and city and officers appealed.

The Supreme Court of Ohio held that:




LIABILITY - TEXAS

Alexander v. Walker

Supreme Court of Texas - June 6, 2014 - S.W.3d - 2014 WL 2535949

Arrestee sued county sheriff’s deputy and sergeant on various tort claims arising from two separate incidents. The District Court denied defendants’ motion for summary judgment. Defendants appealed. The Court of Appeals affirmed. Defendant filed petition for review, which was granted.

The Supreme Court of Texas held that allegations in arrestee’s petition were based on conduct within general scope of officers’ employment and could have been brought under Texas Tort Claims Act (TTCA), compelling dismissal under statute’s election-of-remedies provision.




IMMUNITY - TEXAS

City of Watauga v. Gordon

Supreme Court of Texas - June 6, 2014 - S.W.3d - 2014 WL 2535995

Arrestee brought action against city based on police officer’s use of handcuffs during arrest. City entered plea to the jurisdiction. The District Court denied city’s plea, and city appealed. The Court of Appeals affirmed. City petitioned for review.

The Supreme Court of Texas held that arrestee’s action was an action for battery rather than one for negligence, and thus city had not waived governmental immunity to action.




INVERSE CONDEMNATION - WASHINGTON

Pacific Highway Park, LLC v. Washington State Dept. of Transp.

Court of Appeals of Washington, Division 2 - June 3, 2014 - Not Reported in P.3d - 2014 WL 2547695

Pacific Highway Park, LLC (PHP) appealed the trial court’s dismissal on summary judgment of its claims against the Washington State Department of Transportation (WSDOT) for inverse condemnation, trespass, and damage to property under RCW 4.24.630.

PHP alleged that these claims arose from WSDOT’s alterations to surface water drainage facilities in a 2001 project to widen nearby State Route (SR) 99, which allegedly resulted in the deposit of excess stormwater on PHP’s property.

The Court of Appeals held that:




ZONING - WYOMING

Tarver v. City of Sheridan Bd. of Adjustments

Supreme Court of Wyoming - June 5, 2014 - P.3d - 2014 WY 71

Neighbors petitioned for review of city board of adjustments approval of a request for a special exemption to operate a bed and breakfast in an area zoned residential. The District Court affirmed the board’s decision, and neighbors appealed.

The Supreme Court of Wyoming held that:




BANKRUPTCY - CALIFORNIA

In re City of San Bernardino

United States District Court, C.D. California - June 4, 2014 - Not Reported in F.Supp.2d - 2014 WL 2511096

City filed for Chapter 9 municipal bankruptcy.

City sought, in Bankruptcy Court, to prevent state agencies from withholding disputed tax revenues accrued by the City’s Redevelopment Agency (RDA) from both the debtor City and the third-party non-debtor Successor Agency established when the state abolished all RDAs.

The Bankruptcy Court denied the state agencies’ claim that they were immune from suit under the Tenth and Eleventh Amendments.

State agencies appealed and the District Court reversed, finding that the state agencies were immune from suit.




PUBLIC UTILITIES - CALIFORNIA

Disenhouse v. Peevey

Court of Appeal, Fourth District, Division 1, California - June 3, 2014 - Cal.Rptr.3d - 2014 WL 2464960

The Court of Appeal took up a case requiring it to reconcile a Public Utilities Code provision depriving the superior courts of jurisdiction “to enjoin, restrain, or interfere with the Public Utilities Commission in the performance of its official duties” (Pub.Util.Code, § 1759, subd. (a)) with a Government Code provision authorizing any interested person to “commence an action by mandamus, injunction, or declaratory relief for the purpose of stopping or preventing violations or threatened violations” of the state’s opening meeting law. (Gov.Code, § 11130, subd. (a).)

The court concluded that a person desiring to commence such an action against the commission may only do so by filing a petition for writ of mandate in the Supreme Court or the Court of Appeal.




ZONING - CALIFORNIA

Sierra Club v. County of Fresno

Court of Appeal, Fifth District, California - May 27, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 5810 - 2014 Daily Journal D.A.R. 6590

Objectors petitioned for writ of mandate challenging county’s approval of environmental impact report (EIR) for residential development. The Superior Court entered judgment for county and developer. Objectors appealed.

The Court of Appeal held that:




EMPLOYMENT - DELAWARE

Council on Police Training v. State

Supreme Court of Delaware - June 2, 2014 - A.3d - 2014 WL 2466327

Retired state police officer appealed the decision of the Council on Police Training to revoke his certification as a police officer. The Superior Court reversed and remanded the Council’s decision. Council appealed.

The Supreme Court of Delaware held that officer’s retirement while under suspension was not a sufficient basis to decertify him as a police officer.




IMMUNITY - GEORGIA

Marshall v. McIntosh County

Court of Appeals of Georgia - May 30, 2014 - S.E.2d - 2014 WL 2219709

Wife of 911 caller brought wrongful death action against county and the director of its 911 emergency telephone system, alleging that director refused to send medical assistance after caller reported that he was having a heart attack. The trial court dismissed action on grounds of sovereign and official immunity. Wife appealed.

The Court of Appeals held that:




PUBLIC UTILITIES - IOWA

Hawkeye Land Co. v. Iowa Utilities Bd.

Supreme Court of Iowa - May 23, 2014 - N.W.2d - 2014 WL 2154006

Owner of railroad-crossing easement sought review of Utilities Board’s decision that allowed independent transmission company to use pay-and-go procedure under railroad-crossing statute to run electrical power lines across railroad at three locations. The District Court affirmed. Easement owner appealed.

As matters of first impression, the Supreme Court of Iowa held that:




ZONING - IOWA

Den Hartog v. City of Waterloo

Supreme Court of Iowa - May 30, 2014 - N.W.2d - 2014 WL 2434598

Taxpayers filed petition for writ of mandamus and temporary injunction challenging municipality’s agreement to transfer to residential developer property originally acquired for use as a road right-of-way, alleging that municipality failed to follow statutory procedures for sale of unused right-of-way. The District Court dismissed action. Taxpayers appealed.

The Supreme Court of Iowa held that land in question constituted unused right-of-way, and therefore municipality was not permitted to sell or transfer it to a developer without first following the statutory procedure mandating notice to the present owners of adjacent property and to the persons who owned the land at the time it was acquired for road purposes.

Statutory requirements were applicable to both land acquired for highway purposes but never used, and land acquired for highway purposes and previously or currently in use, rather than only to property acquired, but never used for, highway purposes.




BANKRUPTCY - KENTUCKY

In re Seven Counties Services, Inc.

United States Bankruptcy Court, W.D. Kentucky, Louisville Division - May 30, 2014 - B.R . - 2014 WL 2442176

Kentucky Employees Retirement System (KERS) filed complaint seeking a determination that debtor, a tax-exempt nonprofit employer which operated mental health facilities in Kentucky, was “governmental unit” that was statutorily barred from seeking Chapter 11 relief, as well as to enjoin debtor from seeking to withdraw from KERS and to require debtor to continue to contribute to KERS. Debtor moved to reject its alleged contract with KERS.

The Bankruptcy Court held that:




IMMUNITY - LOUISIANA

Haab v. East Bank Consol. Special Service Fire Protection Dist. of Jefferson Parish

Court of Appeal of Louisiana, Fifth Circuit - May 28, 2014 - So.3d - 13-954 (La.App. 5 Cir. 5/28/14)

Renters who suffered loss of personal property when parish fire personnel failed to promptly respond to a fire at the house they were renting during a hurricane brought action against parish and several of its departments and employees responsible for public safety, seeking to hold defendants liable for the loss of their property. Defendants moved for summary judgment, alleging that they were immune from suit. The District Court granted summary judgment in favor of defendants. Plaintiffs appealed.

The Court of Appeal held that:




PUBLIC UTILITIES - MARYLAND

PPL EnergyPlus, LLC v. Nazarian

United States Court of Appeals, Fourth Circuit - June 2, 2014 - F.3d - 2014 WL 2445800

Utility companies brought action against the Commissioner of the Maryland Public Service Commission (PSC), challenging the PSC’s order directing Maryland utilities to enter into a contract for differences with new power generation plant to incentivize the construction of the plant. The District Court entered judgment for the utilities. The PSC appealed.

The Court of Appeals held that:

Under the Federal Power Act, Congress intended that the Federal Energy Regulatory Commission (FERC) occupy the field of wholesale sales of energy in interstate commerce, thus field preempting PSC’s order, as the PSC order had the effect of functionally setting the rate that the new facility would receive in capacity auctions overseen by FERC.

Maryland PSC’s order directly conflicted with the FERC’s regulation of the wholesale sale of energy in interstate commerce under the Federal Power Act (FPA), and thus the PSC order was preempted on conflict grounds by the FERC. The PSC’s order had the potential of disrupting the FPA’s goal of using price signals in capacity auctions to incentivize new generation sources, and the PSC’s 20-year contract for difference incentive greatly exceeded the three years provided by the FPA for such incentives.




ZONING - MARYLAND

County Council of Prince George's County v. Zimmer Development Co.

Court of Appeals of Maryland - May 28, 2014 - A.3d - 2014 WL 2208279

Property developer applied for approval of a comprehensive design plan and a specific design plan for a proposed retail center. County planning board approved the plans. District council decided on its own motion to review the case, held a public hearing, and remanded to the planning board to reconsider certain issues. Planning board held a hearing and again approved the application. District council again decided on its own motion to review the case and, after it heard oral argument, denied the application. Developer petitioned for judicial review. The Circuit Court reversed district council’s decision and reinstated planning board’s approval of the plans. Appeal followed.

The Court of Appeals held that:




BENEFITS - MASSACHUSETTS

Twomey v. Town of Middleborough

Supreme Judicial Court of Massachusetts, Plymouth - June 2, 2014 - N.E.3d - 468 Mass. 260

Retired town employees brought action against town, town board of selectmen, and town manager, seeking declaratory relief and writ of mandamus to require town to implement vote of special town meeting, approving article purporting to establish percentage of the total monthly premium for insurance coverage by a health maintenance organization (HMO) to be paid by the employees. The Superior Court entered summary judgment in favor of defendants, and employees appealed.

The Supreme Judicial Court of Massachusetts held that town board of selectmen, not town meeting, had authority to establish the percentage of the total monthly premium for HMO coverage to be paid by employees, under statute governing payment of HMO premiums by municipalities. Statute expressly designated board of selectmen as the municipal entity to implement its provisions and did not make any reference to town meeting.




LIABILITY - NEW YORK

Samantha R. v. New York City Housing Authority

Supreme Court, Appellate Division, First Department, New York - May 22, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03754

Child brought action against city housing authority and general contractor, seeking damages for injuries sustained when she tripped over a decorative wicket fence that surrounded planting area and fell onto the pavement. Defendants moved for summary judgment. The Supreme Court, New York County, denied motion. Defendants appealed.

The Supreme Court, Appellate Division, held that alleged defective condition on housing authority’s premises was open and obvious, and not inherently dangerous.




EMINENT DOMAIN - OKLAHOMA

State ex rel. Dept. of Transp. v. Lamar Advertising of Oklahoma, Inc.

Supreme Court of Oklahoma - June 3, 2014 - P.3d - 2014 OK 47

Oklahoma Department of Transportation (ODOT) brought condemnation proceeding regarding outdoor advertising sign. Following a jury trial, the District Court awarded compensation to owners of sign. ODOT and owners appealed, and appeals were consolidated.

The Supreme Court of Oklahoma held that:




INVERSE CONDEMNATION - OREGON

Hall v. State ex rel Oregon Dept. of Transp.

Supreme Court of Oregon, En Banc - May 30, 2014 - P.3d - 355 Or. 503

Landowners brought inverse condemnation action against Oregon Department of Transportation (ODOT). Plaintiffs alleged that ODOT, by repeatedly making representations to others about its intention to landlock their property and initiate a condemnation action, created a nuisance that “blighted” their property, resulting in a compensable taking of the property under the Oregon Constitution. The Circuit Court entered judgment in favor of landowners. ODOT appealed. The Court of Appeals reversed. Landowners petitioned for review.

After grant of petition, the Supreme Court of Oregon held that representations made by ODOT regarding ODOT’s intention to landlock landowners’ property and to initiate a condemnation action did not constitute a de facto taking.

ODOT’s actions did not deprive landowners of all economically viable use of property, since landowners were able to sell billboard easements on property, and there was no physical occupation of property.




SCHOOLS - SOUTH CAROLINA

Palms v. School Dist. of Greenville County

Court of Appeals of South Carolina - May 30, 2014 - S.E.2d - 2014 WL 2453328

Parents, as guardians ad litem for student, sued school district seeking writ of mandamus directing district to restore student’s original grade point average (GPA) and class rank, and for an injunction prohibiting district from altering GPA in manner inconsistent with writ. The Circuit Court granted writ and injunction. District appealed.

The Court of Appeals held that parents failed to present justiciable controversy.

Student’s parents who sought writ of mandamus directing school district to restore high school student’s GPA and class rank to the higher levels originally calculated under district’s formula for transfer students, following reduction of student’s GPA after other parent expressed concern that transferor school inflated grades, failed to present justiciable controversy.

There was no evidence that district acted corruptly or in bad faith, or that it abused its power, when it recalculated student’s GPA and ranking, grade calculation was fundamental function of district, and disputes such as whose student would be valedictorian were academic disputes for district to resolve.




TAX - SOUTH CAROLINA

Town of Hilton Head Island v. Kigre, Inc.

Supreme Court of South Carolina - June 4, 2014 - S.E.2d - 2014 WL 2516515

Business owner filed constitutional challenge to town’s business license tax ordinance, which required businesses within the town to pay an annual license fee based upon business’s classification and gross income. The Circuit Court entered judgment finding the ordinance valid. Owner appealed.

The Supreme Court of South Carolina held that the business license tax ordinance was not unconstitutional.

Business license fee was a tax on the privilege of doing business within the town, and therefore, it was the manufacturing activity of taxpayer’s business which occurred wholly within the town limits, and not its receipt of income or sales of its products in interstate commerce, that was the business activity being taxed.




UTILITIES - SOUTH CAROLINA

Horry Telephone Co-op., Inc. v. City of Georgetown

Supreme Court of South Carolina - June 4, 2014 - S.E.2d - 2014 WL 2516069

Telecommunications company brought declaratory-judgment action against city, asserting that city’s denial of company’s application for franchise to provide cable television services in city was unlawful under Competitive Cable Services Act. The Circuit Court dismissed company’s complaint. Company appealed.

The Supreme Court of South Carolina held that:




RATINGS - CALIFORNIA

California Public Employees' Retirement System v. Moody's Investors Service, Inc.

Court of Appeal, First District, Division 3, California - May 23, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 5720

California Public Employees’ Retirement System (CalPERS) brought action against credit rating agencies for negligent misrepresentation after CalPERS lost $1 billion in structured investment vehicles, rated “AAA” by agencies, that subsequently collapsed. The Superior Court denied anti-strategic lawsuit against public participation (SLAPP) motion. Agencies appealed and CalPERS cross-appealed.

The Court of Appeal held that:




STANDING - CALIFORNIA

Wheatherford v. City of San Rafael

Court of Appeal, First District, Division 1, California - May 22, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 5626

Resident filed a complaint for declaratory and injunctive relief challenging city’s and county’s enforcement practices with respect to the impoundment of vehicles. The Superior Court dismissed. Resident appealed.

The Court of Appeal held that:




MUNICIPAL ORDINANCE - COLORADO

Town of Dillon v. Yacht Club Condominiums Home Owners Association

Supreme Court of Colorado - May 27, 2014 - P.3d - 2014 CO 37

In 2009, the Town of Dillon enacted two municipal ordinances, one authorizing a local road improvement project, and the other concerning parking enforcement on the public right-of-way. Owners of the Yacht Club Condominiums (“YCC”) challenged the ordinances. They alleged, among other things, that the ordinances were an unreasonable exercise of the Town’s police power because they eliminated the ability of YCC owners and guests to use the Town’s rights-of-way near the YCC for overflow parking.

The Supreme Court of Colorado held that, in enacting the two ordinances at issue here, the Town did not abuse its police power or deprive the YCC owners of due process.

An ordinance comports with due process where it bears a reasonable relationship to a legitimate government interest. The ordinances here were within the Town’s police power to regulate matters of public health, safety, and welfare. The measures were a reasonable exercise of that power because they were reasonably related to the Town’s objectives of improving traffic safety, improving water drainage, and remedying a missing portion of a recreational bike path.




ZONING - CONNECTICUT

Greenwood Manor, LLC v. Planning and Zoning Com'n of City of Bridgeport

Appellate Court of Connecticut - May 27, 2014 - A.3d - 150 Conn.App. 489

Landowner appealed from a decision of the city planning and zoning commission, which amended city’s zoning regulations and zoning districts in accordance with city’s amended plan of conservation and development, but which did not recommend any change to the zoning of landowner’s property. The Superior Court dismissed landowner’s appeal. Landowner’s petition for certification to appeal was granted.

The Appellate Court, as matters of first impression, held that:




IMMUNITY - GEORGIA

Greenway v. Northside Hosp., Inc.

Court of Appeals of Georgia - May 27, 2014 - S.E.2d - 2014 WL 2180172

Dog owner brought negligence action against hospital, sheriff, deputy sheriff, and operator of county animal control shelter arising from euthanization of dogs after owner was admitted to hospital. The Superior Court granted summary judgment in favor of all defendants. Owner appealed. The Court of Appeals reversed and remanded. Defendants filed for writ of certiorari, which was granted. The Supreme Court of Georgia reversed and remanded with direction.

On remand, the Court of Appeals held that fact issue as to whether deputy acted with actual malice and intent to injure owner precluded summary judgment.




EMPLOYMENT - GEORGIA

Smith v. City of Atlanta

Court of Appeals of Georgia - May 21, 2014 - S.E.2d - 2014 WL 2109138

After civil service board upheld termination of former city firefighter based on positive drug test result, firefighter filed petition for writ of certiorari. The Superior Court denied petition. Firefighter filed petition for discretionary appeal, which was granted.

The Court of Appeals held that failure to give drug test as outlined in employer’s written policy did not violate firefighter’s due process rights.

Employer’s administration of drug screen test to city firefighter that was different from test outlined in employer’s written policy in effect at time of screening, which resulted in firefighter’s termination, did not violate firefighter’s due process rights, since firefighter was given multiple notices and opportunities to be heard. After chief medical officer contacted firefighter with positive test result, firefighter accepted offer to have split specimen tested, firefighter was given written notice of his termination, and firefighter had hearing before civil service board and pursued certiorari in trial court.




EMPLOYMENT - LOUISIANA

Bell v. Department of Police

Court of Appeal of Louisiana, Fourth Circuit - May 21, 2014 - So.3d - 2013-1529 (La.App. 4 Cir. 5/21/14)

City police officer who was terminated from her employment following incident in which she drove while intoxicated, crashed into a parked vehicle, and fled the scene of the accident sought review of city police department’s termination decision. The City Civil Service Commission Orleans, No. 8047, overturned police department’s termination decision and ordered officer’s employment reinstated, based upon department’s alleged failure to complete its administrative investigation within the statutory time limit. Police Department appealed.

The Court of Appeal held that sixty-day limitations period for appointing authority to complete its administrative disciplinary investigation into city police officer’s misconduct was tolled during pendency of criminal investigation into officer’s conduct, and thus, 60-day limitations period for administrative investigation did not begin to run until officer criminal proceedings against officer were completed when officer received a nolle prosequi from traffic court.




TAX - NEBRASKA

Conroy v. Keith County Board of Equalization

Supreme Court of Nebraska - May 23, 2014 - N.W.2d - 288 Neb. 196

Tax Commissioner and Property Tax Administrator appealed from Tax Equalization and Review Commission determination that parcels of land owned by Power and Irrigation District but leased to private parties were not subject to property tax.

The Supreme Court of Nebraska held that:




LIABILITY - NEW YORK

Scott v. City of New Rochelle

Supreme Court, Westchester County, New York - May 21, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 24131

Suspect’s sister brought action against city and individual police officers to recover damages for personal injuries she allegedly sustained when the city’s police officers searched her home. Defendants moved to dismiss.

The Supreme Court held that:




EMPLOYMENT - NEW YORK

McEvoy v. Oyster Bay Fire Co. No. 1

Supreme Court, Appellate Division, Second Department, New York - May 21, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03688

Volunteer firefighter commenced article 78 proceeding to review determination of fire company’s chief officers which, without a hearing, suspended him from active duty for period of one year, and determination of company’s disciplinary review board which, after a hearing, reduced penalty to suspension from active duty for period of six months and suspension from social functions for period of another six months. The Supreme Court, Nassau County, granted petition to extent of remitting matter to company to conduct hearing. Company appealed.

The Supreme Court, Appellate Division, held that:




LIABILITY - NEW YORK

Stora v. City of New York

Supreme Court, Appellate Division, First Department, New York - May 20, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03613

Men’s shelter resident brought negligence action against city, non-profit organization that ran shelter, and security contractor that provided security services for shelter, seeking damages for injuries sustained when he was shot by another resident. Organization cross-claimed against contractor for contractual indemnification, and cross-motions for summary judgment were filed. The Supreme Court, New York County, granted contractor’s motion and denied city’s and organization’s motions. City and organization appealed.

The Supreme Court, Appellate Division, held that:




MUNICIPAL ORDINANCE - OHIO

Cleveland v. McCardle

Supreme Court of Ohio - May 28, 2014 - N.E.3d - 2014 -Ohio- 2140

In separate cases, defendants were charged with violation of city ordinance that prohibited them from remaining in public square between hours of 10:00 p.m. and 5:00 a.m. without permit. The Cleveland Municipal Court denied their motions to dismiss. Both defendants entered no contest pleas, and execution of judgments was stayed in both cases pending their appeals. The Court of Appeals reversed and remanded. State filed discretionary appeal.

The Supreme Court of Ohio held that:

An ordinance establishing a curfew in a public park is constitutional under the First Amendment right to free speech if it is content neutral, is narrowly tailored to advance a significant government interest, and allows alternative channels of speech.

City ordinance, prohibiting persons from remaining in a public square between the hours of 10:00 p.m. and 5:00 a.m. without a permit, was content-neutral, and thus would be subject to intermediate scrutiny in determining whether it violated the First Amendment guarantee of free speech. Ordinance applied to all persons regardless of their message or their activities.

City ordinance, prohibiting persons from remaining in a public square between the hours of 10:00 p.m. and 5:00 a.m. without a permit, did not violate First Amendment guarantee of free speech. Ordinance advanced significant government interest of protecting the safety of those wishing to use the square after hours and protecting city’s investment in that property, ordinance was narrowly tailored since it allowed unfettered and unrestricted access when curfew was not in effect, and left open alternative avenues of communication because it excluded adjacent streets, sidewalks, and bus shelters.




WATER LAW - OKLAHOMA

Sinor's Long Bay Marina, LLC v. Wagoner County Rural Water Dist. No. 2

Supreme Court of Oklahoma - May 27, 2014 - P.3d - 2014 OK 43

Two customers of county rural water district brought action contesting the rate charged for providing water to their respective recreational vehicle parks, alleging violations of the Oklahoma Antitrust Reform Act. The District Court entered judgment on jury verdict in favor of customers. Both customers and the district appealed.

The Supreme Court of Oklahoma held that:

Oklahoma Antitrust Reform Act did not apply to rates charged by a rural water district, where the Antitrust Act did not apply to all pricing activity, but only the pricing activity of a party that met the definition of “person” as set forth in the Act, this section expressly excluded “the State of Oklahoma, its departments and its administrative agencies” from the definition of person, and the Rural Water Act expressly stated that water districts were agencies of the State.

Pursuant to the Rural Water Act, a customer’s sole relief to challenge a rate charged by a rural water district was to seek review by the water district and appeal to district court from any adverse decision by the district of such grievance. A complaint by a customer that a rate was discriminatory would make review of the rate by the district “necessary, convenient and appropriate” within the authority granted to the district by the Act, and the district’s further powers to “regulate” and “adjust” rates evinced legislative intent that the district decide such complaints in the first instance.




IMMUNITY - OKLAHOMA

Smith v. City of Stillwater

Supreme Court of Oklahoma - May 20, 2014 - P.3d - 2014 OK 42

Father of motorcyclist who was killed during police pursuit brought wrongful death action against city and county. The trial court dismissed county on grounds of sovereign immunity and granted summary judgment in favor of the City. Father appealed. The Court of Civil Appeals affirmed in part and reversed in part. Father and county petitioned for certiorari review.

The Supreme Court of Oklahoma held that:




ZONING - OREGON

Friends of the Hood River Waterfront v. City of Hood River

Court of Appeals of Oregon - May 21, 2014 - P.3d - 2014 WL 2118598

Developer and city sought review of decision of the Land Use Board of Appeals (LUBA) remanding the city’s decision granting conditional use and preliminary site plan approval for a waterfront office and hotel development.

The Court of Appeals held that:




UTILITIES - OREGON

City of Eugene v. Comcast of Oregon II, Inc.

Court of Appeals of Oregon - May 21, 2014 - P.3d - 2014 WL 2119215

City sued internet service provider (ISP), arguing that city was entitled to collect registration and license fees from ISP for cable modem services under city telecommunications ordinance. The Circuit Court found in favor of ISP. City appealed.

The Court of Appeals held that:

Internet service provider’s (ISP) cable modem service qualified as “transmission for hire” of electronic data within ordinary meaning of those words as used to define telecommunications services under city’s telecommunications ordinance, such that ordinance applied to ISP, despite Federal Communications Commission’s (FCC) conclusion that such services were not telecommunication services and testimony from ISP’s telecommunications expert regarding distinction between transmission services and internet access services. ISP provided its cable modem services in exchange for subscriber fees, FCC based its conclusion on language in federal Telecommunications Act, which was materially different from ordinance, and expert did not offer industry meaning of “transmission for hire.”

Federal Internet Tax Freedom Act (ITFA) did not bar city’s license fee imposed on internet service provider for its cable modem services under telecommunications ordinance, since license fee was not a tax for purposes of IFTA. Fee was imposed in exchange for using city’s right-of-way to provide telecommunications service, and under IFTA, tax was “not a fee imposed for a specific privilege, service, or benefit conferred.

Even if registration fee imposed against internet service provider (ISP) for its cable modem service under city’s telecommunication’s ordinance was not discriminatory, fee was tax on internet access barred by federal Internet Tax Freedom Act (ITFA). Despite contention that ISP’s predecessor had actual notice that fee would apply to cable modem services; city did not make public proclamation that provided notice that it interpreted and applied such a tax to internet access servers, and predecessor’s comment that mentioned potential for dual-use technologies did not demonstrate actual notice.

City’s efforts to enforce license fee against internet service provider (ISP) for it cable modem service under city’s telecommunication ordinance did not violate Equal Protection Clause or state constitutional article governing uniformity of taxation, absent evidence that city’s decision to impose license fee amounted to intentional and systematic pattern of discrimination or something akin to fraud.




JURISDICTION - RHODE ISLAND

State v. Morris

Supreme Court of Rhode Island - May 28, 2014 - A.3d - 2014 WL 2208889

Defendant filed motions to suppress evidence obtained by city police detectives after they arrested him while they were outside their jurisdiction. The Superior Court granted most of the motions. The state appealed.

The Supreme Court of Rhode Island held that:




EMPLOYMENT - ALABAMA

Joyner v. Town of Elberta

United States District Court, S.D. Alabama, Southern Division - May 16, 2014 - Slip Copy - 2014 WL 2006780

Former Interim Police Chief of the Town of Elberta, Alabama brought an Equal Pay Act (“EPA”) lawsuit against the town.

The District Court found that the Interim Chief had established a prima facie case under the EPA because her position as Interim Chief was sufficiently comparable to the position of permanent Police Chief.

However, the court found that the evidence clearly supported that the pay differential between the Interim Chief and the permanent Chief of Police was justified by the prior pay and superior experience of the permanent Chief and that this was a “factor other than sex.”

 

 




IMMUNITY - CALIFORNIA

Gong v. City of Rosemead

Court of Appeal, Second District, Division 5, California - May 20, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 5496

Developers brought action against city for fraud, extortion, assault and battery, intentional infliction of emotional distress, and promissory estoppel for the alleged tortious conduct of John Tran, a former member of its City Council and former mayor of the City. The Superior Court sustained demurrer without leave to amend. Developers appealed.

The Court of Appeal held that:

Developers’ claims were subject to the claim presentation requirements and the immunity provisions of the Government Tort Claims Act. Because they failed to satisfy the claim presentment requirements of the Act with respect to their causes of action for fraud and extortion, assault and battery, and intentional infliction of emotional distress, and because the City is immune from their promissory estoppel claim, the trial court properly sustained the City’s demurrer.

 




ZONING - CALIFORNIA

218 Properties, LLC v. City of Carson

Court of Appeal, Second District, Division 8, California - May 14, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 5320

Two mobilehome park operators petitioned for writs of mandate challenging city’s denial of applications to convert the parks to resident ownership. The Superior Court directed city to approve the conversions. City appealed.

The Court of Appeal held that:

 

 

 




ANNEXATION - COLORADO

Board of County Commissioners of County of Teller v. City of Woodland Park

Supreme Court of Colorado - May 19, 2014 - P.3d - 2014 CO 35

The Board of Commissioners of the County of Teller filed a “Petition for Review of Annexations Pursuant to C.R.S. 31–12–116,” seeking the district court’s review of the City of Woodland Park’s annexation of certain real property.

The District Court denied the City’s motion to dismiss for lack of subject matter jurisdiction.  The City appealed.

The Supreme Court of Colorado held that:

Accordingly, the court reversed the district court’s order, making the rule absolute, and remanded for further proceedings consistent with the opinion.

 

 




LIABILITY - COLORADO

Young v. Brighton School District 27J

Supreme Court of Colorado - May 19, 2014 - P.3d - 2014 CO 32

Student, who slipped and fell in puddle of water that had accumulated on concrete walkway at his elementary school, and his mother brought premises-liability action against school district. The District Court denied school district’s motion to dismiss. School district filed interlocutory appeal. The Court of Appeals reversed and remanded with directions. Student and mother petitioned for certiorari review.

The Supreme Court of Colorado held that:

The CGIA’s waiver provisions listed in section 24–10–106(1)(a)–(h) are not mutually exclusive. Rather, because the waivers represent alternative avenues for exposing a public entity to tort liability, more than one waiver may be triggered and analyzed by the trial court depending on the factual circumstances in a given case.

For purposes of recreation area waiver of governmental immunity in Colorado Governmental Immunity Act (CGIA), walkway that ran between elementary school’s playground and school building was not, in and of itself, “public facility,” as would support conclusion that waiver did not apply regarding claim arising from injuries that student allegedly sustained when he slipped and fell in puddle of water on walkway, although students used walkway as means of accessing playground.  Walkway was designed for multiple purposes, and walkway was not designed to promote specific play activity.

For purposes of recreation area waiver of governmental immunity in Colorado Governmental Immunity Act (CGIA), walkway that ran between elementary school’s playground and school building was not component of larger public facility that was the playground, and thus waiver did not apply regarding claim arising from injuries that student allegedly sustained when he slipped and fell in puddle of water on walkway.  Walkway did not promote broader, overall purpose of children’s play in same way that individual components of playground, such as swing set or sand box, did.

 

 




COUNTIES - ILLINOIS

Illinois County Treasurers' Ass'n v. Hamer

Appellate Court of Illinois, Fourth District - April 22, 2014 - N.E.3d - 2014 IL App (4th) 130286

County treasurers’ association brought declaratory judgment and mandamus action against director of Department of Revenue and state comptroller, alleging department and comptroller failed to pay county treasurers the full amount of mandated annual stipends. The Circuit Court granted summary judgment to department and comptroller. Association appealed.

The Appellate Court held that:

Judicial branch could compel payment of county treasurers’ stipends, in amount required by statute, for particular years without violating separation of powers, even though General Assembly had failed to make sufficient appropriation for payment of stipends. Failure to pay stipends in amount required by statute violated constitutional provision prohibiting a decrease in salary of an elected officer of any unit of local government from taking effect during the term for which that officer was elected.

Officer suit exception to sovereign immunity applied to allow declaratory judgment and mandamus action against director of Department of Revenue and state comptroller by county treasurers’ association, seeking to require payment to county treasurers of full amount of mandated annual stipends.  Action was not against the state, and association prayed for a judgment declaring that director and comptroller acted in violation of constitution.

 




MUNICIPAL ORDINANCE - ILLINOIS

Wisam 1, Inc. v. Illinois Liquor Control Com'n

Supreme Court of Illinois - May 22, 2014 - N.E.3d - 2014 IL 116173

City issued a notice of hearing to liquor licensee, charging a violation of a liquor ordinance prohibiting an agent or employee of a licensee from engaging in conduct in or about the licensed premises that was prohibited by federal law. After a hearing, a local commissioner revoked licensee’s liquor license. Licensee appealed. The Illinois Liquor Control Commission affirmed. Licensee filed a complaint for administrative review. After a hearing, the Circuit Court affirmed the commission’s decision. Licensee appealed. The Appellate Court affirmed. Licensee filed a petition for leave to appeal, which the Supreme Court allowed.

The Supreme Court of Illinois held that:

Due process did not entitle liquor licensee, in a license-revocation proceeding on a charge that licensee violated a liquor ordinance prohibiting a licensee’s agent from engaging in conduct in or about the licensed premises that was prohibited by federal law, to relitigate a federal conviction of licensee’s agent for conspiring to structure financial transactions from licensee’s bank account to evade federal reporting requirements.  Under the strict-accountability provisions of the Liquor Control Act of 1934, licensee stood in agent’s shoes.

 

 




CODE ENFORCEMENT - ILLINOIS

Village of Lake in Hills v. Niklaus

Appellate Court of Illinois, Second District - May 15, 2014 - N.E.3d - 2014 IL App (3d) 130654

Village filed petitions to enforce administrative adjudication orders finding resident liable for various municipal ordinance violations, and assessing fines against resident. The Circuit Court denied petitions. Village appealed.

The Appellate Court held that:

 




RURAL IMPROVEMENT ZONE - IOWA

Kilgore v. Iowa State Appeal Bd.

Court of Appeals of Iowa - May 14, 2014 - Slip Copy - 2014 WL 1976868

Kevin Kilgore was one of twelve signatories to a petition to protest the Sun Valley Rural Improvement Zone (“RIZ”) budget for fiscal year 2013.  The Iowa State Appeal Board (“Board”) concluded the petition to protest lacked the requisite number of signatures because only two of the signatories owned property in the RIZ and therefore did not schedule a protest hearing.

Kilgore argued that all eligible voters in the county were authorized to sign a budget protest petition protesting the budget.  He asserted the requirement in Iowa Code section 384.195 that only “persons affected by the budget” may protest the budget includes any resident of the county and not just those residents who own property or reside within the RIZ.

Kilgore filed a petition for judicial review in the district court, and the Board’s decision to deny the budget-protest hearing was affirmed by the district court.

On appellate review, the Court of Appeals agreed the protest petition lacked the requisite number of signatures, and therefore affirmed the ruling of the district court.

Only those persons “in the municipality” are qualified to sign the petition, and the word “municipality” in the statute necessarily refers to the municipality which proposes the budget, expenditure.  The statute specifically excludes “county” from the definition of “municipality.”

 




ZONING - LOUISIANA

Cronley v. Board of Zoning Adjustments

Court of Appeal of Louisiana, Fifth Circuit - May 14, 2014 - So.3d - 13-789 (La.App. 5 Cir. 5/14/14)

Applicants filed suit, seeking reversal of the zoning board’s denial of their request for a variance to allow them to park their recreational vehicle (RV) on the side of their home to assist their disabled child’s needs. The District Court reversed and granted a variance. Zoning board appealed.

The Court of Appeal held that:

Applicants failed to establish that the zoning board’s decision to deny them a variance to allow them to park their recreational vehicle on the side of their home to assist their disabled child’s needs was arbitrary, capricious, or an abuse of discretion.  Record of proceedings did not support a finding that the variance would positively affect neighborhood prosperity and welfare, and while the applicants certainly had shown a hardship due to their child’s medical condition, they had not shown that circumstances special to the property created the hardship.

 




SIGNAGE - MARYLAND

Clear Channel Outdoor, Inc. v. Mayor and City Council of Baltimore

United States District Court, D. Maryland - May 19, 2014 - Not Reported in F.Supp.2d - 2014 WL 2094028

The City of Baltimore enacted an ordinance imposing a charge on outdoor advertising displays.  Clear Channel Outdoor, Inc., an outdoor media company, alleged that the ordinance imposing the charge impermissibly regulated commercial speech in violation of the First and Fourteenth Amendments to the United States Constitution.

Principally at issue was (1) whether the charge constituted a tax under the Tax Injunction Act (the “TIA”), 28 U.S.C. § 1341 (2012), and (2) whether charging outdoor advertising displays directly advanced the government’s interests in traffic safety and aesthetics as required by the First Amendment.

 

The District Court found that the ordinance is a fee, not a tax, for the purposes of the TIA.  Regarding the First Amendment issue, the court found a legitimate question as to whether charging displays directly advances the government’s interests in traffic safety and aesthetics, denying the City’s motion to dismiss.

 




EMINENT DOMAIN - NEBRASKA

Hike v. State Department of Roads

Supreme Court of Nebraska - May 9, 2014 - N.W.2d - 288 Neb. 60

In eminent domain proceeding, after parties were unable to negotiate pre-taking fair market value of property, jury trial was held to determine compensation. The District Court entered judgment on jury’s verdict for owners for $53,209. Owners appealed.

The Supreme Court of Nebraska held that:

 

 




EMINENT DOMAIN - NEW YORK

Sherman v. Town of Chester

United States Court of Appeals, Second Circuit - May 16, 2014 - F.3d - 2014 WL 1978726

Developer brought state court action against town, asserting town prevented him from developing his land by employing a decade of unfair and repetitive procedures. Town removed the action. Subsequently, the District Court granted town’s motion to dismiss. Developer appealed.

The Court of Appeals held that:

Developer’s takings claim against town, including that repeated zoning changes prevented him from developing his land, was ripe under Williamson County Regional Planning Commission v. Hamilton Bank, even though town had not yet reached an official decision concerning his application for subdivision approval, where seeking a final decision from the town would be futile because the town had used unfair and repetitive procedures for over ten years to avoid a final decision, and the town had removed the case from state court.

Developer’s allegations that town discriminated against him because he was Jewish and “municipal Defendants” knew he was Jewish, that he heard town citizens express fear at a town board meeting that his proposed subdivision might become a “Hassidic Village,” and that a model home was vandalized with a spray-painted swastika were insufficient to state claim against town based on § 1981, absent allegations linking town officials to the conduct and allegations that any similarly situated non-Jews were treated differently.

 




EMINENT DOMAIN - NEW YORK

Rose Park Place, Inc. v. State

Supreme Court, Appellate Division, Fourth Department, New York - May 2, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03070

Claimants commenced proceeding, seeking damages for diminished value of approximately 16 acres of what they characterized as “remaining land” following state’s taking of approximately 1.22 acres of land from what was their 17.3–acre parcel. Following trial, the Court of Claims entered judgment awarding claimants consequential damages with respect to what the court concluded was 12.835 acres of that parcel, which included 4.63 acres of land sold by claimants to a third party months before the taking of the 1.22 acres. State appealed.

The Supreme Court, Appellate Division held that consequential damages are unavailable relative to property that is sold prior to a planned taking and from which no land is ultimately appropriated.

 

 




SIGNAGE - PENNSYLVANIA

Nittany Outdoor Advertising, LLC v. College Tp.

United States District Court, M.D. Pennsylvania - May 20, 2014 - Slip Copy 2014 - WL 2094335

Nittany Outdoor Advertising, LLC, and Stephanas Ministries filed a complaint seeking redress of College Township’s denial of Nittany’s applications to post three billboards bearing the Ministries’s messages along East College Avenue.

Plaintiffs claimed that the Township’s Sign Ordinance, under which the Township Zoning Officer denied Nittany’s applications, violated the First Amendment of the United States Constitution and the Constitution of the Commonwealth of Pennsylvania.  Plaintiffs sought damages as well as declaratory, injunctive and other equitable relief.

In support of its motion for summary judgment and permanent injunctive relief, Nittany argued that the Township’s pre-amendment Sign Ordinance and amended Sign Ordinance violated the First Amendment and the Pennsylvania Constitution for multiple reasons, including the Ordinance’s failure to meet the strict scrutiny standard applicable to content-based regulations, the Ordinance’s preference for commercial over noncommercial speech (together, Nittany’s “substantive” challenges), and the Ordinance’s vesting of unbridled discretion in Township officials.

The District Court held that:

 




LIABILITY - SOUTH DAKOTA

Gabriel v. Bauman

Supreme Court of South Dakota - May 21, 2014 - N.W.2d - 2014 S.D. 30

Driver sued volunteer firefighter and rural fire protection district after driver was injured when his vehicle was struck by firefighter’s personal truck as firefighter was speeding to a fire station to respond to a fire, asserting that firefighter’s conduct was willful, wanton, or reckless and that fire district was negligent and was vicariously liable for firefighter’s negligence. The Circuit Court granted summary judgment to firefighter and fire district. Driver appealed.

The Supreme Court of South Dakota of  held that:

Volunteer firefighter whose personal truck collided with a vehicle that turned in front of the truck as he drove in excess of the speed limit to a fire station to respond to a fire did not act willfully, wantonly, or recklessly, and thus firefighter did not lose immunity from liability for emergency care under the Good Samaritan statute, absent evidence that firefighter consciously realized, before it was too late to avoid the collision, that vehicle’s driver would in all probability turn in front of him.

 




INVERSE CONDEMNATION - TEXAS

City of Austin v. Liberty Mut. Ins.

Court of Appeals of Texas, Austin - May 16, 2014 - S.W.3d - 2014 WL 2041867

A wildfire that started on September 4, 2011, in a vacant lot in western Travis County and spread into the surrounding neighborhood, causing personal injury and extensive property damage.  A group of homeowners and insurers brought actions against the city as subrogation claims on behalf of a number of their insured property owners.  Plaintiffs asserted that the City was responsible for the fire, which they allege started when the electric utility’s overhead distribution lines came in contact with each other during high winds, causing electrical arcing, which in turn caused “molten metal globules” to fall to the ground and ignite dry vegetation.

For plaintiffs’  inverse condemnation claims to be valid, the damage from the fire had to be the almost-certain result of the City’s fiscally driven decision to curtail inspection of its overhead power lines. The City had to know at the time it made the decision that the chain of events was “substantially certain” to result from that decision.

The Court of Appeals concluded that the facts pleaded by appellees did not reasonably permit a conclusion that the fire and resulting damage were substantially certain to occur. The relevant power lines, even if not inspected, were not “almost certain” to become so slack that they would contact each other in high winds. Even if they became slack enough to allow for contact, it was not “almost certain” that those wires would actually come in contact with each other in high winds. And even if they did come in contact with each other, it was not “almost certain” that such contact would cause electrical arcing sufficient to create molten metal globules that would then fall to the ground. Nor was it almost certain that any molten globules that fell would fall onto vegetation as opposed to a less flammable surface such as a roadway or parking lot or, for that matter, on green vegetation after the current drought has ended.

“We conclude that the series of events that connects the City’s maintenance decision to the property damage, while arguably foreseeable, was not an almost-certain result of or necessarily incident to that decision. At best, appellees’ factual allegations would show that the City’s conduct furnished a condition that made property damage a substantial risk. That is far different, however, from being the substantial certainty required for a valid takings claim. Toleration of a dangerous condition may or may not set the stage for a subsequent disaster, yet, as discussed above, only if the event causing damage is the substantially certain result of the conduct can the City be charged with the requisite level of intent to constitute a taking. The fact that a disaster happens does not, by virtue of its occurrence, mean that it was a substantial certainty from the outset.”

 




ZONING - WASHINGTON

Miotke v. Spokane County

Court of Appeals of Washington, Division 2 - May 20, 2014 - P.3d - 2014 WL 2095072

County resident and neighborhood alliance sought review of a final decision and order of the regional growth management hearings board, which invalidated county resolution amending county’s comprehensive plan to expand county’s urban growth area, on grounds that ordinance failed to comply with relevant provisions of the Growth Management Act (GMA), and a subsequent determination by the board that county’s repeal of invalidated ordinance was sufficient to establish GMA compliance. The Superior Court affirmed the board’s determinations. Resident and neighborhood alliance appealed.

The Court of Appeals held that:

Although property owners who obtained permits to pursue urban development pursuant to county resolution that amended county’s comprehensive plan to expand urban growth area retained the right to develop the land, under the vested rights doctrine, after the regional growth management hearings board invalidated the resolution under which the permits were issued based on the ordinance’s noncompliance with the Growth Management Act (GMA), the vested rights doctrine did not excuse the county from its obligation to take action to comply with the GMA’s planning goals after the disputed resolution was declared invalid.  Vested rights doctrine protected landowners and developers from unforeseeable changes in rules and regulations, but doctrine did not shield county from liability for its own errors in the process of planning for urban growth and enactment of its resolution.

Following determination of the regional growth management hearings board that county resolution amending county’s comprehensive plan to expand urban growth area was invalid, on grounds that resolution interfered with goals set forth in Growth Management Act (GMA) regarding urban growth, sprawl reduction, transportation, and public services, county’s action in repealing the invalid resolution, without more, was not sufficient to demonstrate county’s compliance with GMA goals.  Urban development rights had vested when property owners filed permit applications for urban development in period of time between ordinance’s enactment date and date on which it was declared invalid, such that, even though county repealed challenged ordinance and reverted land to rural designation, certain urban development remained in place, and county was required to specifically demonstrate how GMA goals could be met despite presence of urban development in rural area of county.




TAX - WASHINGTON

City of Wenatchee v. Chelan County Public Utility Dist. No. 1

Court of Appeals of Washington, Division 3 - May 20, 2014 - P.3d - 2014 WL 2090613

City brought declaratory judgment action against county public utility district, seeking determination that city was authorized to impose utility tax on domestic water sales. The Superior Court entered judgment in favor of district. City appealed.

The Court of Appeals held that:

Utility tax for domestic water sales that city levied on county public utility district, a municipal corporation, was on activities that were proprietary (in whole or in large part), rather than governmental, and therefore city had authority, pursuant to statute that granted code cities broad general authority to impose excise taxes for regulation or revenue, to levy and collect the tax from district. Statute granted to code cities authority to impose excises for revenue in regard to all kinds of business and any other lawful activity, and in the erection and operation of waterworks and the like, a municipal corporation acted as a business concern.

 

 




BANKRUPTCY - WEST VIRGINIA

In re Fairmont General Hosp., Inc.

United States Bankruptcy Court, N.D. West Virginia - May 19, 2014 - Slip Copy - 2014 WL 2082298

Fairmont General Hospital, Inc. (the “Debtor”), and District 1199 West Virginia/Kentucky/Ohio, Service Employees International Union (“District 1199”), requested a declaration from the court that their November 1, 2013 Collective Bargaining Agreement (the “CBA”) was executed in the ordinary course of the Debtor’s business under 11 U.S.C. § 363(c)(1) and was consequently an effective agreement under the Bankruptcy Code.

UMB Bank, N.A., as successor indenture trustee with respect to certain hospital revenue bonds (the “Indenture Trustee”), objected on the basis that that the CBA required court approval because the Debtor was in Chapter 11 and sought to sell substantially all its assets. The Indenture Trustee asserted that court approval of the CBA should be denied on the grounds that the existence of the CBA might result in a lower sales price for the Debtor’s business as potential purchasers might not desire to purchase a business with a unionized workforce. In addition, the Indenture Trustee stated that the CBA constituted a settlement agreement under Fed. R. Bankr.P. 9019 which must be approved by the court.

The court found that the CBA was executed in the ordinary course of the Debtor’s business and was effective under § 363(c)(1) without obtaining court approval. The court also found that the CBA did not constitute a settlement as contemplated under Rule 9019.




TAX - ALASKA

BP Pipelines (Alaska) Inc. v. State, Dept. of Revenue

Supreme Court of Alaska - May 9, 2014 - P.3d - 2014 WL 1873734

Oil pipeline owners and municipalities sought review of decision of the State Assessment Review Board valuing pipeline for property tax purposes. After ruling on the merits of the case, the Superior Court determined that municipalities were prevailing parties and awarded them attorney’s fees and costs. Pipeline owners appealed.

The Supreme Court of Alaska held that:

  • Civil rules governing attorney’s fees and costs applied, rather than appellate rule;
  • Municipalities’ appeals were against owners, rather than State and Board;
  • Trial court was not required to allocate fees and costs among appeals;
  • Municipalities received non-money judgment, rather than money judgment; and
  • 15% enhancement of award of attorney’s fees to municipalities was warranted.

Civil rules governing awards of costs and attorney’s fees to prevailing parties, rather than appellate rule governing such awards, applied in trial de novo on judicial review of decision of the State Assessment Review Board valuing an oil pipeline for property tax purposes, where the rules governing procedure in the superior court applied in a trial de novo.

Municipalities appeals from State Assessment Review Board’s valuation of oil pipeline for property tax purposes were against pipeline owners, rather than the State and the Board, and therefore municipalities prevailed against pipeline owners so as to entitle municipalities to award of attorney’s fees and costs from owners in trial de novo concerning review of valuation; owners, because they filed an appeal, were appellants, and each of the municipalities was automatically deemed an appellee, regardless of how parties are formally arranged, fees and costs could be awarded based on actual adversity of interests, and municipalities and owners were clearly aligned against one another on every substantive issue.

 

 




ZONING - INDIANA

Carroll Creek Development Co., Inc. v. Town of Huntertown

Appellate Court of Indiana - May 9, 2014 - N.E.3d - 2014 WL 1873702

Real estate developer that constructed water main which connected to town’s water service facility, for the purpose of serving its own real estate and other surrounding real estate, brought breach of contract action against town, alleging that town breached its contractual obligations by failing to collect and pay to developer connection fees from certain real estate owners that had connected to the water main, and seeking an accounting of all real estate owners who had connected to water main and amount of fees that town had charged them.

The Appellate Court held that, under plain language of contract, town was required to collect and remit to developer connection fees from real estate owners within contractually-defined excess area who connected to the water main in order to serve land adjacent to the excess area.

Under provision of water main construction contract requiring that town, which agreed to have real estate developer construct a water main and connect it to the town’s water service facility, to collect and remit to developer “connection charges” from present or future owners of real estate within the contractually-defined excess area who connected to the water main, “whether by direct tap or through the extension or connection of lateral lines to service the real estate situated in the excess area or adjacent to the excess area,” town was required to collect and remit to developer connection charges from those real estate owners who owned real estate in the excess area and who connected to the water main in order to serve land adjacent to the excess area; plain language of contract provided that owners in excess area who connected to water main to serve either real estate in the excess area or real estate adjacent to the excess area were subject to connection charge.




TAX - LOUISIANA

Thomas v. Bridges

Supreme Court of Louisiana - May 7, 2014 - So.3d - 2013-1855 (La. 5/7/14)

Individual taxpayer who was the sole member of Montana limited liability company (LLC) that purchased recreational vehicle sought review of decision of Board of Tax Appeals finding that he was personally liable for sales tax from purchase of recreational vehicle. The District Court reversed, and Department of Revenue appealed. The Court of Appeals affirmed and Department petitioned for certiorari review.

The Supreme Court of Louisiana held that the Department of Taxation had no legal basis for assessing sales tax for the purchase of recreational vehicle against member of Montana LLC.

Department of Taxation had no legal basis for assessing sales tax for purchase of recreational vehicle against member of Montana LLC individually and in derogation of the protections afforded to members of LLCs, Louisiana’s obligation to provide full faith and credit to the laws of Montana, and member’s constitutional right to due process, regardless of whether member and his wife, Louisiana residents, signed the purchase agreement.  Only members can act on behalf of the LLC, which cannot provide a signature on its own, the LLC was clearly listed as the buyer at the top of the executed purchase agreement, and at no time did the Department apply Montana law in determining whether the veil of the LLC could be pierced.

Use of particular business entities to avoid taxes and other liabilities, far from being fraudulent, is a common and legal practice.  The legal right of a taxpayer to decrease the amount of what would otherwise be his taxes, or altogether avoid them by means which the law permits, cannot be doubted.




ZONING - LOUISIANA

City of Baton Rouge/Parish of East Baton Rouge v. Myers

Supreme Court of Louisiana - May 7, 2014 - So.3d - 2013-2011 (La. 5/7/14)

City brought action seeking to compel property owner to cease his alleged violation of city’s unified development code, and property owner made a reconventional demand for declaratory judgment, alleging development code’s restrictive definition of “family” was unconstitutional. Following a bench trial, the District Court declared that the zoning law’s definition of “family” was unconstitutional and therefore unenforceable.

The Supreme Court of Louisiana held that:

  • Property owner lacked standing to challenge the constitutionality of city ordinance’s definition of “family” on the basis it violated the rights of others;
  • Two clauses in city code that defined “family” were not in conflict or unconstitutionally vague;
  • Application of city code did not require homeowner to inquire into the familial status of prospective tenants in violation of the Fair Housing Act (FHA);
  • Evidence was insufficient to support property owner’s claim that he had been unconstitutionally deprived of some part of his economic interest in his property because his potential profit as a lessor had been impaired by city’s unified development code’s zoning restrictions;
  • The challenged city code provision was only required to be rationally related to a legitimate state interest, rather than narrowly tailored to further a compelling state interest; and
  • Statutory provision that governed delays for taking suspensive appeals should have been applied to city’s appeal of the declaratory judgment on the constitutionality of city zoning ordinance.

 




TAX - MASSACHUSETTS

Beacon South Station Associates v. Board of Assessors of Boston

Appeals Court of Massachusetts, Suffolk - May 14, 2014 - N.E.3d - 85 Mass.App.Ct. 301

Lessee that leased real property from Massachusetts Bay Transportation Authority (MBTA) appealed decision of city board of assessors, refusing to abate real estate taxes. The Appellate Tax Board granted the abatement, and board of assessors appealed.

The Appeals Court held that:

  • Property was exempt under statute exempting all property owned by MBTA from taxation, and
  • Improvements on property were not lessee’s separately taxable property.

 




LIABILITY - MASSACHUSETTS

Estate of Gavin v. Tewksbury State Hosp.

Supreme Judicial Court of Massachusetts, Middlesex - May 15, 2014 - N.E.3d - Mass.

Patient’s estate brought wrongful death action against state hospital and against commonwealth, seeking damages arising from patient’s death allegedly caused by negligence of hospital staff. The Superior Court dismissed the complaint, and estate appealed. The Appeals Court affirmed. Estate applied for further appellate review.

The Supreme Judicial Court of Massachusetts held that estate was a “claimant” entitled under Tort Claims Act to make presentment of claim.

Patient’s estate was a “claimant” entitled under Massachusetts Tort Claims Act to make presentment to Attorney General and state hospital of wrongful death claim arising from patient’s death allegedly caused by negligence of staff at state hospital, even though estate lacked statutory authority to bring wrongful death action.  Presentment by estate, rather than executor or administrator of the estate, did not prevent commonwealth from investigating claim or initiating settlement negotiations, since there was no question about the identity of the individuals behind the claim presented by the estate.

 




BONDS - MISSOURI

Cromeans v. Morgan Keegan & Co., Inc.

United States District Court, W.D. Missouri, Central Division - May 13, 2014 - Slip Copy - 2014 WL 1901197

After failed issuance, bondholders brought class action against the underwriter, Morgan Keegan, alleging material misrepresentations and omissions in the Official Offering Statement.

Morgan Keegan filed a Third–Party Complaint against counsel to underwriter and Industrial Development Authority, Cunningham, Vogel & Rost, P.C. (CVR), seeking indemnity and contribution from CVR in the event that Morgan Keegan was found liable to the bondholders for any misrepresentations in the Official Statement.

The primary, and ultimately dispositive, question presented on CVR’s motion to dismiss the Third-Party Complaint was whether Morgan Keegan had plausibly alleged that CVR was liable directly to the Bondholders for the conduct that was the basis of Morgan Keegan’s claims for indemnity and contribution.

Morgan Keegan claimed that CVR was liable to the bondholders for misrepresentations, express or by omission, that CVR allegedly made to Morgan Keegan.  Morgan Keegan also argued that CVR owed a general duty to the bondholders to see that the Official Statement contained accurate information.

The District Court held that:

 




BONDS - NEW JERSEY

Committee of Petitioners for Repeal of Ordinance Number 522 (2013) of Borough of West Wildwood v. Frederick

Superior Court of New Jersey, Appellate Division - May 15, 2014 - A.3d - 2014 WL 1923275

In May 2013, the Borough of West Wildwood passed an ordinance authorizing the issuance of bonds to finance various capital improvements. Following publication of the ordinance, the Committee of Petitioners for the Repeal of Ordinance No. 522 (2013) of the Borough of West Wildwood, sought repeal of the ordinance via referendum.  The Committee procured sixty-two signatures and submitted the petition to the Acting Municipal Clerk of the Borough.  The Clerk rejected the petition, identifying specific notarial defects and explaining plaintiff failed to comply with the applicable statute, which mandated names and addresses of five committee members be affixed to the petition when circulated. Plaintiff resubmitted the petition after correcting the noted deficiencies; however, Frederick again returned the petition stating the corrections were insufficient to cure the defects.

Committee filed a complaint in lieu of prerogative writs, demanding presentation of the referendum to voters in the November 2013 election. Following a hearing, the trial court entered judgment directing the Borough to place the question challenging the ordinance on the 2013 general election ballot. The Borough’s request to stay the order was granted.

On appeal, the Borough challenge the Law Division’s consideration of the plaintiff’s complaint, arguing the protest was untimely. Alternatively, Borough challenged the judge’s findings on two issues: first, that the Committee not required to affix the names and addresses of five members on the petition prior to its circulation; and second, that the Clerk’s rejection of the petition on the basis of notarial errors was arbitrary and capricious.

The appeals court affirmed, concluding a voter protest of a bond ordinance is governed by the procedures set forth in the Home Rule Act, which does not require listing the Committee of Petitioners found in the referendum provisions governing ordinance challenges, other than those for capital improvement indebtedness, in a municipality formed under the Walsh Act.




TAX - NEW JERSEY

Red Bull Arena, Inc. v. Town of Harrison

Superior Court of New Jersey, Appellate Division - May 12, 2014 - Not Reported in A.3d - 2014 WL 1875318

Red Bull Arena, Inc. appealed from the grant of summary judgment to Town of Harrison, and from the dismissal of its complaints, which sought to vacate local property tax assessments on land owned by The Harrison Redevelopment Agency and on a stadium Red Bull constructed on the land. Red Bull contended that the land and stadium were exempt from local property taxes pursuant to the County Improvement Authorities Law and the Local Redevelopment and Housing Law.

The appeals court found that operation of the stadium  did not serve the specific public purposes described in the Authorities Law or Redevelopment Law, the statutes pursuant to which the stadium was constructed.

Unlike the Sports Authority Law, neither the Authorities Law nor Redevelopment Law authorize the Authority or Agency to construct, acquire, own, manage, construct, or operate a sports stadium for professional athletic teams. Rather, the Authority and Agency are only authorized to redevelop the redevelopment area, not the actual operation of a stadium or any other commercial establishment.

Red Bull’s actual operation of the stadium exceeded the Authority’s and Agency’s statutory mandates. Accordingly, because the property was not used for a statutorily authorized public purpose, it was not tax exempt.

 




LIABILITY - NEW YORK

Williams v. Weatherstone

Court of Appeals of New York - May 13, 2014 - N.E.3d - 2014 N.Y. Slip Op. 03425

Mother brought action on behalf of her minor daughter against motorist and school district, seeking recovery for injuries daughter sustained when she was struck by vehicle while waiting for school bus. The Supreme Court, Onondaga County, denied school district’s motion for summary judgment. School district appealed. The Supreme Court, Appellate Division, affirmed as modified. School district appealed.

The Court of Appeals held that:

  • Student’s injuries did not occur during the act of busing itself;
  • School district owed student no duty at time of accident;
  • Bus driver’s act of turning bus around was not the functional equivalent of bus driver waving or signaling to student to cross street; and
  • School district did not owe special duty to student based on her individualized education program (IEP).

 




ANNEXATION - NEW YORK

City of Fulton v. Town of Granby

Supreme Court, Appellate Division, Fourth Department, New York - May 9, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03371

City filed petition seeking a determination that proposed annexation of industrial and vacant land from town was in the public interest.

After court-designated referees issued report concluding that annexation was in the public interest, the Supreme Court

Annexation would benefit the city, as land housed city’s wastewater treatment facility, which was a vital component of the city’s municipal utility infrastructure, reduce the city’s tax liability, benefit territory itself, as city, not town, provided municipal services, and enable city to stabilize rates it charged to residents and businesses in the area, including the town, which could spawn industrial growth and development in the surrounding area.




LIABILITY - NEW YORK

Bakioglu v. Tornabene

Supreme Court, Appellate Division, Second Department, New York - May 7, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03219

Police officer and his wife, suing derivatively, brought action against city, police department, and others to recover for injuries sustained in motor vehicle accident. The Supreme Court, Kings County, granted plaintiffs’ motion for leave to serve and file a late notice of claim, and city and department appealed.

The Supreme Court, Appellate Division, held that officer could serve late notice of claim upon city and police department.

Police officer could serve late notice of claim upon city and police department for personal injuries sustained in motor vehicle accident while on duty and riding in department vehicle, even though officer had no reasonable excuse for not timely filing claim, where city and department had actual notice of essential facts constituting claim well within 90–day period for serving notice of claim, department conducted prompt investigation into matter and possessed pertinent records from investigation, and there was no substantial prejudice to city defendants in maintaining defense.




BONDS - NEW YORK

Oppenheimer AMT-Free Municipals v. ACA Financial Guar. Corp.

Supreme Court, Appellate Division, First Department, New York - September 3, 2013 - 110 A.D.3d 280 - 971 N.Y.S.2d 95 - 2013 N.Y. Slip Op. 05768

Municipal bond holders brought action against financial guaranty insurer, seeking declaration that insurer was still obligated to pay in the event that issuer, which had filed for Chapter 9 bankruptcy, defaulted. Bond holders and insurer filed cross-motions for summary judgment. The Supreme Court, New York County, granted bond holders’ motion and denied insurer’s motion. Insurer appealed.

The Supreme Court, Appellate Division, held that financial guaranty insurer was not relieved of its obligation to make payments to municipal bond holders in the event of issuer’s default by cancellation of original bonds and replacement with new bonds as result of restructuring plan in issuer’s Chapter 9 bankruptcy proceedings.

Certificates of bond insurance (CBI) required insurer to unconditionally guarantee payment and were noncancellable, with no exclusion for bankruptcy.  Bankruptcy filing was an event of default under trust agreement and served to accelerate holders’ claims against issuer, and restructuring of bonds and reissuance in lower principal amount with longer payment period represented that holders sustained a loss.




ASSESSMENTS - OHIO

Rhea v. Federer

Court of Appeals of Ohio, Second District, Clark County - May 9, 2014 - Slip Copy - 2014 -Ohio- 1979

Trustee appealed from a summary judgment rendered in favor of County Auditor, contending that the trial court erred in finding, as a matter of law, that the Trust lacked standing to bring a declaratory judgment action challenging the validity of assessments made on real property on which the Trust has the first and best lien.

The facts in this case involved a mortgagee with a first and best lien on property subject to a mortgage in default, seeking a declaration regarding a municipal ordinance imposing a substantial assessment against that property.

The Court of Appeals concluded that the Trust had alleged an injury by the Auditor’s conduct and that this injury was likely to be redressed by the relief requested in the complaint. The facts involved a mortgage that had been declared the first and best lien on a property that allegedly was inadvertently taxed to the point of making the property virtually worthless. Based on the record, the court concluded that the Trust had met the constitutional minimum of standing.

 

 




TAX - OHIO

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

Supreme Court of Ohio - May 15, 2014 - N.E.3d - 2014 -Ohio- 1940

Taxing authority appealed decision of county board of revision determining tax value of taxpayer’s 21 condominium units. The Board of Tax Appeals (BTA) reversed, and taxpayer appealed. The Supreme Court of Ohio reversed. Taxing authority filed motion for reconsideration.

The Supreme Court of Ohio held that valuation of units was required to be based on value of individual units rather than bulk appraisal.

Under statute deeming each unit of a condominium property to be a separate parcel for taxation purposes, bulk appraisal of taxpayer’s 21 condominium units, based on what a single investor would pay for all units in bulk sale, was not valid for purposes of determining tax value of units.

Tax valuation of taxpayer’s 21 condominium units was required to be determined according to price units would sell for individually on open market, not according to what a single investor would pay in a bulk sale of all units.  Appraiser’s report stated that highest and best use of the properties as owner-occupied residential condominiums, taxpayer continuously marketed and sold the condominiums individually, at no point did taxpayer list the 21 units as a bulk-sale investment property, and bulk appraisal did not assess true value of the units but instead improperly predicted actual sale prices and then discounted those sale prices to arrive at a cash-in-hand valuation.




EMPLOYMENT - OKLAHOMA

Brewer v. City of Seminole

Supreme Court of Oklahoma - May 13, 2014 - P.3d - 2014 OK 41

Terminated probationary police trainee brought action against city. The District Court certified three questions to the Oklahoma Supreme Court.

The Supreme Court of Oklahoma held that:

  • Trainee did not have statutory right to be terminated only for cause, and
  • Trainee did not have statutory right to post-termination hearing.

Statute governing the appellate procedure for a terminated member of municipal police pension and retirement system did not provide a right to a probationary police trainee to be terminated only for cause.  Although trainee was a member of the pension and retirement system and was employed by a municipality that had entered into a collective bargaining agreement (CBA) with a recognized bargaining agent under the Fire and Police Arbitration Act, due to trainee’s probationary status, trainee was excluded by the terms of the CBA from having access to the arbitration and grievance process contained in the CBA in connection with the termination of her employment.

Statute governing the appellate procedure for a terminated member of municipal police pension and retirement system did not provide a right to a probationary police trainee to a post-termination hearing.  Although trainee was a member of the pension and retirement system and was employed by a municipality that had entered into a collective bargaining agreement (CBA) with a recognized bargaining agent under the Fire and Police Arbitration Act, due to trainee’s probationary status, trainee was excluded by the terms of the CBA from having access to the arbitration and grievance process contained in the CBA in connection with the termination of her employment.




INVERSE CONDEMNATION - OREGON

Dunn v. City of Milwaukie

Supreme Court of Oregon, En Banc - May 8, 2014 - P.3d - 2014 WL 1873691

Homeowner brought action against city for inverse condemnation, seeking compensation for damage to her home caused by sewage that backed up through bathroom fixtures due to city’s use of highly pressurized water to clean adjacent sewer lines. Following jury trial, the Circuit Court entered judgment in favor of homeowner. City appealed. The Court of Appeals affirmed. City petitioned for review, and review was granted.

The Supreme Court held that, as a matter of first impression, city did not have requisite intent to cause backup. Natural and ordinary consequences test, permitting inference of requisite intent to take in inverse condemnation claim when consequences of governmental action are necessary, inevitable, or substantially certain to result, examines whether government intentionally undertook to act in a manner that necessarily caused injurious invasion of plaintiff’s property. In order for factfinder to infer requisite intent to take in inverse condemnation claim under natural and ordinary consequences test, plaintiff need not prove that governmental actor subjectively intended consequential invasion of property interests or undertook action knowing, even if not desiring, that consequences would follow.

In order for factfinder to infer requisite intent to take in inverse condemnation claim under natural and ordinary consequences test, plaintiff must show that government intentionally undertook its actions and that inevitable result of those actions, in ordinary course of events, was invasion of plaintiff’s property that is basis for plaintiff’s inverse condemnation claim.

City did not have requisite intent to cause sewage backup in property owner’s home under natural and ordinary consequences test when it intentionally used highly pressurized water to clean sewer lines near owner’s home, as required for city’s actions to constitute a taking in owner’s inverse condemnation claim, absent evidence that sewage backup was necessary, certain, predictable, or inevitable result of city’s intentional manner of cleaning adjacent sewer.  City regularly cleaned sewers using highly pressurized water, and backups of sewage into adjacent houses due to city’s cleaning of sewers was rare.




MUNICIPAL ORDINANCE - ARIZONA

State v. Coles

Court of Appeals of Arizona, Division 1 - May 6, 2014 - P.3d - 2014 WL 1797592

 Defendant was charged with violating city ordinance prohibiting public intoxication. The Municipal Court dismissed the charge, and city appealed. The Superior Court reversed, and defendant appealed.

The Court of Appeals held that the ordinance was preempted by statute.

City ordinance prohibiting being “under the influence of alcohol” in public was preempted by statute prohibiting local laws criminalizing or having as an element of an offense being a common drunkard or being found in an intoxicated condition.  Ordinance conflicted with statute, since a person who was “intoxicated” was in fact “under the influence” to a particular, greater degree, and statute addressed a matter of statewide concern, signaling legislature’s determination that alcoholism should be treated as a disease and not criminalized unless a person under the influence of alcohol engages in specified activities such as driving or operating other types of vehicles or equipment.

 




TAX - FLORIDA

Seminole Tribe of Florida v. Florida Dept. of Revenue

United States Court of Appeals, Eleventh Circuit - May 5, 2014 - F.3d - 2014 WL 1760855
Indian tribe brought action seeking declaratory judgment that tribe was exempt from paying state tax on fuel and injunction requiring refund of taxes paid. The District Court dismissed complaint, and tribe appealed.

The Court of Appeals held that:

  • State’s sovereign immunity barred action, and
  • Action did not fall within scope of Ex parte Young exception to state’s Eleventh Amendment immunity.

Indian tribe’s action against director of Florida Department of Revenue seeking declaratory judgment that tribe was exempt from paying state tax on fuel purchased outside of Indian land did not fall within scope of Ex parte Young exception to state’s Eleventh Amendment immunity from suit in federal court, where tribe joined director as representative of state, not as individual against whom personal judgment was sought, tax was imposed on all fuel sold in state, and declaratory judgment that tribe sought would demand that director award it money from state coffers equaling amount of fuel taxes that Department would have already collected from supplier.

 




ZONING - FLORIDA

Kentner v. City of Sanibel

United States Court of Appeals, Eleventh Circuit - May 8, 2014 - F.3d - 2014 WL 1813316

Owners of property along water in city brought state court action against the city, challenging a municipal ordinance that prohibited them from building a boat dock or accessory pier on their properties. City removed the action. Subsequently, the District Court granted city’s motion to dismiss. Property owners appealed.

The Court of Appeals held that:

  • Riparian rights asserted by property owners were state-created rights, not fundamental rights, for purposes of their substantive due process claims;
  • Owners were challenging a legislative act, for purposes of their substantive due process claims; and
  • Ordinance did not violate property owners’ substantive due process rights.

 




TAX INCREMENT FINANCING - ILLINOIS

Village of East Dundee v. Village of Carpentersville

Appellate Court of Illinois, Second District - April 30, 2014 - Not Reported in N.E.3d - 2014 IL App (2d) 131006-U

The Village of East Dundee, filed an action against the Village of Carpentersville and Wal–Mart Stores, Inc., alleging that section 11–74.4–3(q)(13) of the Tax Increment Allocation Redevelopment Act (Act) applied to Wal–Mart’s decision to close its East Dundee retail store and open a Wal–Mart Supercenter less than 10 miles away within Carpentersville’s Route 25 redevelopment project area.

East Dundee sought a declaratory judgment that Carpentersville was required to make certain findings pursuant to section 11–74.4–3(q)(13) of the Act, based on documentation submitted by Wal–Mart, before it could fund any redevelopment project costs directly related to Wal–Mart’s planned relocation. East Dundee also sought a writ of prohibition, a writ of mandamus, and an injunction.

The trial court granted Carpentersville’s motion to dismiss East Dundee’s amended complaint pursuant to section 2–615 of the Illinois Code of Civil Procedure and Wal–Mart’s motion to dismiss the amended complaint pursuant to section 2–619(a)(9) of the Code, concluding that the amended complaint failed to present an actual controversy that was ripe for adjudication. East Dundee appealed.

The appeals court affirmed, finding that the trial court properly dismissed East Dundee’s amended complaint because it did not present an actual controversy that was ripe for review.  The well-pleaded factual allegations of the amended complaint presented only speculation that defendants might in the future fail to comply with section 11–74.4–3(q)(13) of the Tax Increment Allocation Redevelopment Act.  Under the facts alleged, it was equally plausible that defendants would comply with the Act.




REDISTRICTING - INDIANA

Ballard v. Lewis

Supreme Court of Indiana - May 7, 2014 - N.E.3d - 2014 WL 1819023

Council member brought action against members of county election board for declaratory judgment that county redistricting ordinance failed to comply with redistricting statute for Marion County since council passed ordinance in last month of 2011 before opposing political party gained control of council. The Superior Court granted mayor’s request to intervene, but declared that ordinance failed to satisfy the requirement for mandatory redistricting during 2012 and divided the county into twenty-five new districts. Mayor appealed and requested transfer. Transfer was granted.

The Supreme Court of Indiana held that since dispute did not present a redistricting impasse, Supreme Court would adopt interpretation of redistricting statute that upheld ordinance.

Dispute over whether council and mayor acted too early by passing redistricting ordinance for Marion County in December of 2011 and signing it on January 1, 2012, just before opposing political party took control of council, did not present a redistricting impasse that required judicial intervention, and, thus, the Supreme Court, as a matter of judicial restraint, would adopt interpretation of redistricting statute that upheld ordinance and avoided judicial line-drawing in what was presumptively a matter for the legislative and executive branches of local government to address.




PENSIONS - LOUISIANA

East Baton Rouge Parish School Bd. v. Louisiana School Employees' Retirement System

Court of Appeal of Louisiana, First Circuit - May 1, 2014 - Not Reported in So.3d - 2013-1300 (La.App. 1 Cir. 5/1/14)

School boards brought suit against the Louisiana State Employees’ Retirement System (LSERS), alleging that it was the state’s responsibility, not theirs, to pay to LSERS the employers’ portion of the retirement contributions made on behalf of plaintiffs’ employees that are needed to fund the “normal” cost and the unfunded accrued liability of the plaintiffs’ employee pensions.

The Court of Appeal held that:

 

 




BALLOT INITIATIVE - MAINE

Friends of Congress Square Park v. City of Portland

Supreme Judicial Court of Maine - May 6, 2014 - A.3d - 2014 ME 63

Nonprofit organized to oppose planned sale of city park brought action seeking judicial review of city’s refusal to issue citizens’ initiative petition forms, a declaration that the petition was a proper subject of a citizens’ initiative, and claiming city’s refusal to issue the forms violated petitioners’ free speech rights. The Superior Court entered judgment ordering city to issue petition forms for a citizen’s initiative, and to amend the city’s land bank ordinance. City appealed.

The Supreme Judicial Court of Maine held that:

  • The scope of initiative power, pursuant to city code, was limited to those initiatives that affected legislative matters, as opposed to administrative matters, and
  • In an apparent matter of first impression, proposed amendments to city’s land bank ordinance were not exempt from the scope of the citizens’ initiative power pursuant to the city code.

 




LIABILITY - MASSACHUSETTS

Wilkins v. City of Haverhill

Supreme Judicial Court of Massachusetts, Essex - May 9, 2014 - N.E.3d - Mass.

Pedestrian, who was attending a parent-teacher conference, brought personal injury action against city for injuries she sustained when she slipped and fell on ice that had accumulated on the walkway of the public school. The Superior Court granted city summary judgment. Pedestrian appealed.

The Supreme Judicial Court of Massachusetts held that city was not immune under the public use statute from pedestrian’s personal injury action.

Limitation on liability provided by public use statute extended solely to land open to the general public, and during the relevant time the school was open only to a discrete group and not to the general public since only parents, students, and teachers could participate in parent-teacher conferences.




INDEMNIFICATION - MISSOURI

Kershaw v. City of Kansas City

Missouri Court of Appeals, Western District - May 6, 2014 - S.W.3d - 2014 WL 1782818

City employee brought a declaratory judgment suit against city to recover money from the city legal expense fund on an underlying negligence judgment against a co-employee. Both parties filed motions for summary judgment. The Circuit Court granted city summary judgment, and denied employee summary judgment. Employee appealed.

The Court of Appeals held that:

  • City legal expense fund ordinance required city to pay and indemnify co-employee on employee’s negligence judgment, and
  • Release that employee signed when he closed out his workers’ compensation claim did not constitute a general release of city’s liability to indemnity co-employee on employee’s negligence judgment.

City legal expense fund ordinance established duty on city’s part, wholly independent of its duty to injured employee under Workers’ Compensation Act, to pay and indemnify co-employee tortfeasor on employee’s negligence judgment, and ordinance did not improperly broaden city’s liability; rather, fund was merely a voluntary assumption of defense and payment of judgments or claims against state employees sued for their conduct arising out of and performed in connection with official duties on behalf of the state.

Settlement release signed by injured employee to close out his workers’ compensation claim did not constitute a general release of city’s liability to indemnity co-employee tortfeasor on employee’s negligence judgment, as required to bar employee, under doctrine of accord and satisfaction, from enforcing co-employee’s right to indemnity.  To extent release contained “general release” language, that language was used in subordination to language preceding it, i.e., that employee was forever closing out claim under Workers’ Compensation Law, release was boiler-plate language, which indicated parties’ intent not to enter into general release, and not broad enough to release any claim employee may have had against a third party such as co-employee.

 

 




LIABILITY - NEW YORK

Ewadi v. City of New York

Supreme Court, Appellate Division, First Department, New York - May 6, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03199

 Plaintiff brought action against city and city fire department to recover for personal injuries sustained in fire. The Supreme Court, Bronx County, entered summary judgment in defendants’ favor, and plaintiff appealed.

The Supreme Court, Appellate Division, held that firefighters did not assume voluntary duty to plaintiff beyond that owed to general public.

Statement by firefighters for resident trapped in burning building to “Hold on” was too vague to manifest assumption by firefighters of voluntary duty to resident beyond that owed to general public, and thus did not create duty of care required to establish negligence claim against city.




DISABILITY - NEW YORK

Heinichen v. Kelly

Supreme Court, Appellate Division, First Department, New York - May 6, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03203

Police officer commenced Article 78 proceeding challenging denial of his application for accident disability retirement benefits. The Supreme Court, New York County, denied petition, and officer appealed.

The Supreme Court, Appellate Division, held that officer’s injury to his thumb while forcibly attempting to close stuck drawer was foreseeable and intended result of his own conduct, rather than accident, and thus did not entitle officer to accident disability retirement benefits.




LIABILITY - NEW YORK

Lupa v. City of Oswego

Supreme Court, Appellate Division, Fourth Department, New York - May 2, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03055

Pedestrian brought action against city, seeking to recover damages for injuries allegedly sustained when she tripped and fell on elevated edge of parking space maintained by city. The Supreme Court, Oswego County, denied summary judgment for city. City appealed.

The Supreme Court, Appellate Division, held that city failed to meet its initial burden of establishing space’s defect was trivial and nonactionable.

Pedestrian’s deposition testimony and photographs, particularly photographs depicting area closest to pedestrian’s vehicle, suggested a measurable edge in pavement that could pose a tripping hazard.




LIABILITY - NEW YORK

Dodds v. Town of Hamburg

Supreme Court, Appellate Division, Fourth Department, New York - May 2, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03060

Executor of estates of motorist and his passenger who were killed in collision with unmarked police vehicle filed negligence action against city. The Supreme Court, Erie County, denied both parties summary judgment. Defendant appealed.

The Supreme Court, Appellate Division held that:

  • Reckless disregard standard of liability, rather than ordinary negligence standard, applied to officer’s conduct, and
  • Officer’s conduct did not rise to the level of reckless disregard for the safety of others.

City police officer was subject to reckless disregard standard of liability contained in statute governing authorized emergency vehicles, rather than ordinary negligence standard of liability, in action to recover damages for wrongful death of motorist and passenger who had been killed in collision when officer executed a U-turn to stop another vehicle, since officer was the driver of an authorized emergency vehicle involved in an emergency operation, and as such, was permitted to disregard regulations governing directions of movement or turning in specified directions.

City police officer who, while executing a U-turn to stop one driver, struck second vehicle, killing its driver and his passenger, acted under the mistaken belief that the vehicle he struck was sufficiently behind him and that it was, at that moment, safe to execute the U-turn, thus, his actions constituted a momentary lapse in judgment not rising to the level of reckless disregard for the safety of others. Although officer did not activate his vehicle’s emergency lights or siren, he looked in his rear-view mirror, observed a couple of vehicles that he believed were sufficiently behind him, looked to his left, and braked before starting to make the U-turn.




IMMUNITY - NEW YORK

Mosey v. County of Erie

Supreme Court, Appellate Division, Fourth Department, New York - May 2, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 03041

 Following the death of plaintiff’s decedent, who was tortured and killed at the hands of her mother and half-brother, plaintiff filed two notices of claim with county, for wrongful death and tort, respectively, and thereafter commenced actions against county and sheriff. In action against county, plaintiff moved to strike county’s answer for its discovery-related conduct. County and sheriff moved to dismiss the respective complaints against them. The Supreme Court, Erie County, entered orders denying plaintiff’s motion to strike and granting county’s motion to dismiss, and granting sheriff’s motion to dismiss. Plaintiff appealed.

The Supreme Court, Appellate Division, held that:

  • The court did not abuse its discretion in denying plaintiff’s motion to strike county’s answer;
  • The court erred in granting defendants’ dismissal motions based on governmental immunity;
  • The court properly granted defendants’ respective motions insofar as defendants asserted that they were not vicariously liable for conduct of deputy sheriff;
  • Plaintiff’s notices of claim were sufficient to notify county that the qualifications, knowledge, training, experience, abilities, and supervision of its employees involved with decedent were at issue; and
  • Plaintiff was not required to file a notice of claim naming sheriff in his official capacity.

 




PUBLIC PRAYER - NEW YORK

Town of Greece, N.Y. v. Galloway

Supreme Court of the United States - May 5, 2014 - S.Ct. - 2014 WL 1757828

Residents brought civil rights action against town, alleging town’s practice of opening town board meetings with prayer violated First Amendment’s Establishment Clause. The District Court granted summary judgment for town. Residents appealed. The Court of Appeals for the Second Circuit reversed. Certiorari was granted.

The Supreme Court, held that:

  • Prayer opening town board meetings did not have to be nonsectarian to comply with the Establishment Clause, abrogating County of Allegheny v. American Civil Liberties Union, Greater Pittsburgh Chapter, 492 U.S. 573, 109 S.Ct. 3086, 106 L.Ed.2d 472;
  • Town did not violate First Amendment by opening town board meetings with prayer that comported with tradition of the United States; and
  • Prayer at opening of town board meetings did not compel its citizens to engage in a religious observance, in violation of the Establishment Clause.

 




INVERSE CONDEMNATION - NORTH CAROLINA

Bell v. City of New Bern

Court of Appeals of North Carolina - May 6, 2014 - Slip Copy - 2014 WL 1795136

Landowners sued the Town of Trent Woods for inverse condemnation, negligence, nuisance, trespass, and a permanent injunction, arising out of flooding damage allegedly caused by the construction of a sewer pump station on an intense watershed overflow lot and inadequate storm drain pipes.

Trent Woods’ claimed that it was entitled to governmental immunity

The Court of Appeals held that a review of plaintiffs’ complaint established that the actions giving rise to plaintiffs’ claims involved the negligent maintenance of Trent Woods’ storm drainage system.  Because it is well established that municipalities are not performing governmental acts when maintaining storm drains, governmental immunity does not apply, and the trial court properly denied the motion to dismiss based on governmental immunity.

 




ANNEXATION - NORTH CAROLINA

Roanoke Country Club, Inc. v. Town of Williamston

Court of Appeals of North Carolina - May 6, 2014 - Slip Copy - 2014 WL 1794896

Petitioners challenged the annexation of their property, alleging that the annexation, a) violated N.C. Gen.Stat. § 160A–49, which requires that the annexation report be made available to the public at the office of the municipal clerk; and b) violated  N.C. Gen.Stat. § 160A–48, which requires that a municipal governing board use recorded property lines and streets as boundaries when fixing new municipal boundaries.

The court rejected the first argument, finding that N.C. Gen.Stat. § 160A–49(c) does not require that a complete copy of the annexation report be made available for distribution to the public. Instead, the statute only requires that the complete report be made available to the public at the office of the municipal clerk.

The court then rejected Petitioners’ argument that annexation boundaries which cross over streets are not permitted by N.C. Gen.Stat. § 160A–48(e), finding that the statute simply requires the use of streets as boundaries. It does not specify that the boundary must continuously follow a particular side of a street.

The court also rejected Petitioners’ argument that the use of a private street as a boundary was not permitted by N.C. Gen.Stat. § 160A–48(e), finding that the statute merely requires the use of a”“street” as a boundary; there is no requirement that the street be designated as public.

 

 



BALLOT INITIATIVE - OKLAHOMA

In re Initiative Petition No. 397, State Question No. 767

Supreme Court of Oklahoma - April 1, 2014 - P.3d - 2014 OK 23

Proponents of initiative to amend state constitution appealed ballot title prepared by the Attorney General regarding proposal to fund storm shelters and campus security for local school districts and career technology districts.

The Supreme Court held that:

  • Proponents were required to file or submit a copy of the petition and a copy of the ballot title to the Attorney General when filing them with the Secretary of State;
  • Attorney General had five business days to file response to ballot title after filing with Secretary of State;
  • Attorney General’s late response was statutorily effective;
  • Proponents bore burden to show that the title was clearly contrary to either statutory law or the Oklahoma Constitution;
  • Attorney General’s ballot title complied with statutory requirements of impartiality and correctness;
  • Ninety-day period of time to collect signatures commences when the ballot title appeal is final.

Initiative proponents challenging ballot title prepared by Attorney General bore burden to show that the title was clearly contrary to either statutory law or the Oklahoma Constitution, was incorrect, was not impartial, or failed to accurately reflect the effects of the initiative for proposed amendment to the state constitution.

Attorney General’s ballot title for initiative to amend state constitution to fund storm shelters and campus security for local school districts and career technology districts complied with statutory requirements of impartiality and correctness.  The title informed the electorate that the proposal would fund the construction of storm shelters by using franchise tax revenues, bonds, and other resources within the discretion of the legislature, and Attorney General’s one additional reference to the franchise tax and definition of the general revenue fund were not argumentative and did not display partiality.




STANDING - TEXAS

Galveston Open Government Project v. U.S. Dept. of Housing and Urban Development

United States District Court, S.D. Texas, Galveston Division - April 30, 2014 - F.Supp.2d - 2014 WL 1760930

The Galveston Open Government Project (GOGP), an organization that “was organized to examine and critique local government and suggest ways to ‘improve its accountability to the voters,” filed suit to enjoin the rebuilding of public housing projects that had been destroyed by Hurricane Ike.  GOGP’s primary argument was that rebuilding housing projects would perpetuate racial segregation.

“A group like GOGP that serves as a watchdog over local public officials strengthens our system of self-government. But that system of self-government would suffer if anyone had standing file a lawsuit challenging a policy merely on the basis that they disagreed with the policy choices enacted after vigorous public debate. Because it has not suffered a concrete injury from the plan to rebuild Galveston public housing that differentiates it from the numerous people in the Galveston area who have strong views on this issue, GOGP is dismissed from this case for lack of standing.”

However, the court concluded that an individual plaintiff had made a sufficient showing at the pleading stage to allow her claim to go forward on the basis of “neighborhood standing.”  “But—as in those Supreme Court cases—whether she will suffer a concrete injury in terms of living in a more segregated neighborhood as a result of the rebuilt public housing is an issue that will remain in the case pending further factual development.”

 




IMMUNITY - TEXAS

City of New Braunfels v. Carowest Land, Ltd.

Court of Appeals of Texas, Austin - April 30, 2014 - S.W.3d - 2014 WL 1774535

City undertook the “South Tributary Regional Flood Control Project,” which entailed the construction of a large drainage channel to divert run-off waters into the Guadalupe River. To provide a portion of the drainage channel’s route, Carowest voluntarily conveyed to the City a strip of land that traversed a tract of approximately 240 acres Carowest owned in the area. But there followed a succession of disputes between Carowest and the City, leading to the underlying litigation.

Carowest filed an application for temporary restraining order (TRO) seeking to halt all work on the related North Tributary Project. Around the same time, the City filed a plea to the jurisdiction. Both sides presented evidence to the district court.  The District Court denied both the plea to the jurisdiction and the TRO request by written order.  The City appealed the District Court’s order denying its plea to the jurisdiction.

The Court of Appeals:

  • Reversed the District Court’s order denying the City’s plea to the jurisdiction as to Carowest’s takings claim and rendered judgment dismissing that claim for want of subject-matter jurisdiction;
  • Reversed the District Court’s order as to Carowest’s claims under Section 1983, and remanded the claims so that Carowest could have a reasonable opportunity to amend its pleadings, if possible, to assert a Section 1983 claim that is not subsumed within its takings claim;
  • Affirmed the district court’s order denying the City’s plea as to Carowest’s common-law tort claims, contract claims, and related attorney’s-fees claims to the extent the court has jurisdiction (1) to adjudicate Carowest’s breach-of-contract and related attorney’s fees claims by virtue of the waiver of immunity in chapter 252 of the Local Government Code; and (2) alternatively and independently, to adjudicate Carowest’s entitlement to an offset against any recovery obtained by the City on its monetary counterclaim.
  • Affirmed the district court’s order denying the City’s plea to the jurisdiction as to Carowest’s declaratory claims.

 




GOVERNANCE - ALASKA

Alsworth v. Seybert

Supreme Court of Alaska - April 25, 2014 - P.3d - 2014 WL 1663391

Group of citizens brought action against two borough assembly members, alleging various violations of borough and state conflict of interest laws and common law conflict of interest doctrine. After the borough took official action facilitating the assembly members’ defense, the citizens moved to enjoin the assembly members from using their official positions to defend the lawsuit or pursue personal financial gain.

The superior court granted a preliminary injunction under the balance of hardships standard, concluding that the citizens faced the possibility of irreparable harm if the injunction were not granted and that the assembly members were adequately protected by the injunction. The injunction barred the assembly members from taking various actions in their official capacities, including speaking about a local mining project.

The Supreme Court of Alaska held that:

  • Trial court should have applied probable success on the merits standard, rather than balance of hardships standard, and
  • Injunction barring borough assembly members from speaking about mining project was unconstitutional prior restraint on speech.

Preliminary injunction did not adequately protect assembly members, and therefore trial court should have applied probable success on the merits standard, rather than balance of hardships standard, in determining whether to grant injunction in action by citizens against assembly members alleging conflicts of interest.  Enjoining assembly members from speaking about mining project, conducting official borough business, and accepting borough money for legal defense imposed serious harm on assembly members, and assembly members’ injuries were not “relatively slight in comparison” to citizens’ alleged injury in the absence of the injunction, nor could they be indemnified by a bond.

Preliminary injunction barring borough assembly members from taking various actions in their official capacities, including speaking about a local mining project, imposed an unconstitutional prior restraint on speech, where assembly members’ enjoyed no less speech protections as elected officials than did private citizens under the federal and state constitutions.




TAX - ALASKA

State v. Schmidt

Supreme Court of Alaska - April 25, 2014 - P.3d - 2014 WL 1663367

Three same-sex couples filed an action against the state and a municipality alleging that municipal property tax exemption program for senior citizens or disabled veterans that discriminated between married and same-sex senior citizens or disabled veterans violated their rights to equal protection under the Alaska Constitution. The Superior Court entered summary judgment for couples. State and municipality appealed.

The Supreme Court of Alaska held that:

  • Marriage Amendment did not preclude equal protection challenges by couples;
  • Exemption program facially discriminated between same-sex couples and opposite-sex couples, in violation of equal protection clause;
  • Program violated equal protection for same-sex couples in which eligible applicant had ownership interest in the residence;
  • Program did not violate equal protection for same-sex couple in which eligible applicant had no ownership interest in the residence; and
  • Trial court’s findings were insufficient to permit meaningful appellate review of award of attorney fees.

 




EMINENT DOMAIN - ARKANSAS

Giles v. Ozark Mountain Regional Public Water Authority of State

Supreme Court of Arkansas - April 17, 2014 - Not Reported in S.W.3d - 2014 Ark. 171

After property owners were awarded increased compensation for property at issue in Regional Public Water Authority’s action for condemnation and declaration of taking of owners’ property for construction of water-treatment in-take facility, owners filed motion for attorney fees. The Circuit Court denied motion. Owners appealed. The Court of Appeals affirmed. Owners petitioned for review, and petition was granted.

The Supreme Court of Arkansas held that statute allowing for attorney fees was inapplicable.

Supreme Court of Arkansas holds that statute allowing for attorney fees in certain eminent-domain cases did not apply to condemnation action in which property owners were awarded increased compensation for property at issue in Regional Public Water Authority’s action for condemnation and declaration of taking, since Water Authority brought action pursuant to statutory provisions governing municipal corporations’ power to condemn, under which attorney fees were not available.




INVERSE CONDEMNATION - CALIFORNIA

Biron v. City of Redding

Court of Appeal, Third District, California - April 30, 2014 - Cal.Rptr.3d - 2014 WL 1691350

Owners of an apartment building in downtown Redding, California sued the City, alleging inverse condemnation and dangerous condition of public property after their property was damaged by flooding during two separate storm events.

The trial court ruled in favor of City on both causes of action. As to the inverse condemnation claim, it applied the rule of reasonableness to conclude that City’s decision to defer upgrades to City’s storm drainage system did not pose an unreasonable risk of harm to plaintiffs. As to the cause of action for dangerous condition of public property, the court concluded City’s decision to defer upgrades to the storm drainage system did not create a substantial risk of injury to members of the general public, and that even if the storm drain system had been a dangerous condition, City’s conduct was reasonable.

The Court of Appeal affirmed, holding that the trial court correctly applied a rule of reasonableness to the inverse condemnation cause of action, rather than strict liability.

 




MUNICIPAL ORDINANCE - CALIFORNIA

California Tow Truck Association v. City and County of San Francisco

Court of Appeal, First District, Division 4, California - April 23, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 43262014 Daily Journal D.A.R. 5012

Towing company association brought action for declaratory and injunctive relief to challenge city’s tow truck regulatory scheme. After removal to federal district court and remand of state claims, the Superior Court granted city’s motion for judgment on the pleadings, and association appealed.

The Court of Appeal held that:

  • City could regulate only those companies and drivers who maintained their principal place of business or employment in city, and
  • City could collect fees to cover cost of tow truck regulation.

Statute permitting local authorities to license and regulate “the operation of tow truck service or tow truck drivers whose principal place of business or employment is within the jurisdiction of the local authority” did not allow city to regulate companies and drivers with substantial or consequential business within city, but rather allowed city to regulate only those companies and drivers who maintained their principal place of business or employment in that city.

Statute prohibiting a city from assessing “an excise or license tax of any kind, character, or description whatever upon the transportation business of any for-hire motor carrier of property” did not prohibit city from collecting fees to cover cost of tow truck regulation.  Legislature had granted local authorities special permission to license and regulate towing businesses, and statute did not specifically address fees.

 




EMINENT DOMAIN - FLORIDA

In Re Order Directing Payment of $11,800.25

District Court of Appeal of Florida, Second District - April 23, 2014 - So.3d - 2014 WL 1613403

After eminent domain proceeding in which settlement was reached with regard to amount owed to landowner by city, purported assignee of promissory note and mortgage, on which landowner had owed money at time of settlement, moved to direct state chief financial officer to return funds to court. The Circuit Court denied motion. Purported assignee appealed.

The District Court of Appeal held that trial court did not have personal jurisdiction over chief financial officer and thus could not direct officer to return funds to court’s registry.




FERAL CATS - ILLINOIS

County of Cook v. Village of Bridgeview

Appellate Court of Illinois, First District, Sixth Division - April 25, 2014 - N.E.3d - 2014 IL App (1st) 122164

This appeal involves two apparently conflicting ordinances that regulate feral cat colonies within Cook County. One of the ordinances was adopted by the county. The other ordinance was adopted by the Village of Bridgeview, a municipality located within Cook County.

The Cook County feral cat ordinance permits individuals living within Cook County, including those living in the Village of Bridgeview, to maintain feral cat colonies provided they participate in trap, neuter, and release (TNR) programs sponsored by approved humane societies.

 The Village of Bridgeview is a home rule municipality located within Cook County. On April 1, 2009, Bridgeview adopted Ordinance No. 09–04. This ordinance prohibits Bridgeview residents from operating feral cat colonies within Bridgeview’s corporate limits and imposes fines on those who fail to comply.

The County filed suit, alleging that the Bridgeview ordinance infringed upon its statutory authority to control and prevent the spread of rabies and control feral cats within Cook County. The County sought a declaration that Bridgeview lacked the statutory and home rule authority to enact its ordinance. The County also sought an injunction prohibiting Bridgeview from enforcing its ordinance.

The court determined that Bridgeview lacked the statutory and home rule authority to enact its ordinance. The court also enjoined Bridgeview from enforcing its ordinance.




ZONING - IOWA

Garr v. City of Ottumwa

Supreme Court of Iowa - May 2, 2014 - N.W.2d - 2014 WL 1765115

Landowners brought negligence action against city, alleging city’s approval of a residential development and golf course caused flooding to downstream property. Following jury trial, the District Court, Wapello County entered judgment in favor of landowners. City appealed.

The Supreme Court of Iowa held that city’s negligence was not a cause in fact of any damages suffered by landowners from flooding, as no reasonable efforts by city to control upstream drainage, or other flood control measures, could have prevented the flooding at issue in light of fact extremely heavy, rare rainfall event which occurred.




LIABILITY - LOUISIANA

Hunter v. Christus Health Central Louisiana

Court of Appeal of Louisiana, Third Circuit - April 23, 2014 - So.3d - 2013-1057 (La.App. 3 Cir. 4/23/14)

 Patient brought medical malpractice action against hospital arising out of patient’s development of bed sore during stay in hospital. After hospital stipulated to liability, the District Court held bench trial and awarded damages. Hospital appealed.

The Court of Appeal held that:

  • Damages award of a total of $85,000 for past pain and suffering and mental anguish was not excessive;
  • Damages award of $5,000 for future pain and suffering was not excessive; and
  • Trial court acted within its discretion in ordering hospital to pay costs of certain depositions relating to liability.

 




MUNICIPAL ORDINANCE - LOUISIANA

Morales v. Parish of Jefferson

Court of Appeal of Louisiana, Fifth Circuit - April 30, 2014 - So.3d - 13-486 (La.App. 5 Cir. 4/30/14)

In consolidated cases, motorists brought class action for damages and declaratory judgment against parish and traffic enforcement company, alleging parish ordinance for automated enforcement of traffic signals was unconstitutional. After initial grant of defendants’ exception of res judicata was reversed on appeal, the District Court granted summary judgment to parish and company. Motorists appealed.

The Court of Appeal held that:

  • Ordinance had a non-punitive purpose, as would support finding that ordinance was civil in nature and thus not subject to statute regulating collection of criminal fines and forfeitures;
  • Ordinance was not preempted by Louisiana Highway Regulatory Act (LHRA);
  • Ordinance did not conflict with LHRA; but
  • Genuine issue of material fact as to whether ordinance gave alleged violators sufficient notice of proceedings against them, so as to satisfy due process, precluded summary judgment; and
  • Motorists were not afforded sufficient time for discovery prior to grant of summary judgment.

 

 

 




IMMUNITY - MAINE

Clifford v. MaineGeneral Medical Center

Supreme Judicial Court of Maine - April 22, 2014 - A.3d - 2014 ME 60

This case arose from emails that Linda J. Clifford sent to the Governor’s office in late September 2007. Those emails triggered a series of events that ultimately led to Clifford being detained overnight against her will in the psychiatric unit at MaineGeneral Medical Center (MaineGeneral) in Augusta.

Clifford filed action against emergency room physician under Maine Civil Rights Act (MCRA) for allegedly depriving her of liberty without due process and in violation of statutory rights and for allegedly subjecting her to an unreasonable search. Physician moved for summary judgment, asserting discretionary-function immunity under Maine Tort Claims Act (MTCA) and also asserting common-law qualified immunity. The Superior Court denied summary judgment as to those claims. Physician appealed.

The Supreme Judicial Court of Maine held that:

  • Absolute immunity provision of Maine Tort Claims Act (MTCA) did not bar present claims;
  • Fact issues precluded summary judgment declaring that common-law qualified immunity protected emergency room physician on MCRA claims involving alleged due process and statutory violations; and
  • Physician did not have common-law qualified immunity on MCRA claim involving alleged unreasonable search.

Absolute immunity provision of MTCA, while barring a claim against emergency room physician for negligence or carelessness in emergency admission process, did not bar claim by hospital admittee under MCRA for alleged violation of and disregard for statutory mandates governing emergency admission and involuntary commitment procedures, as well as due process and Fourth Amendment protections, that allegedly occurred when, after future admittee had been properly evaluated and discharged to return home, she was again ordered into custody, without any new information and without a new commitment process having been formally initiated, was searched, and was held overnight at hospital before being examined and again discharged the next morning.

Genuine issue of material fact existed as to whether emergency room physician transgressed due process and statutory rights of future admittee to hospital’s psychiatric unit in informing her that she was not leaving hospital under any circumstances and in facilitating her “voluntary” 24-hour admission over the prospect of 72-hour involuntary commitment pending a “blue-paper” process than had not yet begun, such that summary judgment for physician on common-law qualified-immunity grounds with regard to admittee’s claim under MCRA would be precluded if a reasonable defendant in physician’s position would have known that his actions transgressed those rights.

Reasonable defendant in emergency room physician’s position in 2007 would have understood that directing future overnight hospital admittee to remove her clothes and submit to a body search for contraband, then calling two male security guards to enforce that directive, violated future admittee’s constitutional right against unreasonable seizures, such that physician did not have common-law qualified immunity against admittee’s claim under MCRA.  There was no evidence to support a belief that future admittee carried contraband, there were no exigent circumstances that demanded that she be searched at all, and although she had, under duress, consented to medical treatment, she was not legally committed under either the voluntary or involuntary commitment procedures.

 

 




TAX - MINNESOTA

Inter-Faith Care Center v. Carlton County

Minnesota Tax Court, Sixth Judicial District, Carlton County, Regular Division - April 24, 2014 - 2014 WL 1711798

County challenged the tax-exempt status of property owned by InterFaith, a Minnesota non-profit corporation created by six churches for charitable, medical, and educational purposes. The property was subject to a long-term lease to the State of Minnesota and used by the State to provide medical services to chemically dependent women. These services were administered on the subject property by the State of Minnesota, Department of Human Services, which is a tax exempt entity. The parties stipulated that the State’s use of the subject property is a public, governmental use of the property

The Minnesota Tax Court held that:

  • Inter Faith Care Center is a benevolent society within the meaning of Minn.Stat. § 273.19, subd. 1(2012);
  • For purposes of taxation, the subject property is considered property of the State of Minnesota; and
  • The State administered activities at the subject property qualify the subject property as public property exclusively used for a public purpose under Minn.Stat. § 272.02, subd. 8 (2012).

 




PUBLIC NUISANCE - MINNESOTA

Jerome v. City of St. Paul

Court of Appeals of Minnesota - April 28, 2014 - Not Reported in N.W.2d - 2014 WL 1660629

Alex Jerome and Ameena Samatar purchased a vacant building that the City of St. Paul previously had declared to be a nuisance. After their purchase, the city suspended its nuisance-abatement process to give them an opportunity to rehabilitate the building. But after several months and multiple hearings, Jerome and Samatar failed to satisfy the city’s requirements for a further suspension of the nuisance-abatement process. After several extensions of time, the city council eventually adopted a resolution that ordered the building to be either repaired or removed within 30 days.

The court concluded that the city council’s decision was not arbitrary, capricious, oppressive, or unreasonable, and was supported by substantial evidence; that the city’s procedures were not unlawful, irregular, or contrary to city ordinance; and that the city did not violate Jerome’s and Samatar’s rights to due process.

 




PUBLIC WORKS - NEVADA

Laborers' Intern. Union of North America, Local Union No. 169 v. Truckee Carson Irr. Dist.

Supreme Court of Nevada - April 23, 2014 - Slip Copy - 2014 WL 1677653

In October 2011, Truckee Carson Irrigation District (TCID) solicited bids from qualified contractors for a public works project on the Truckee Canal. Out of six bidders, A & K Earthmover submitted the prevailing bid and was awarded the contract. Although one bidder, K.G. Walters, informally questioned whether A & K Earthmovers had properly complied with the subcontractor listing requirements of NRS 338.141, neither it nor any other bidder submitted a formal notice of protest under NRS 338.142. Nevertheless, Laborers’ International Union of North America, Local Union No. 169, party to a collective bargaining agreement with K.G. Walters, and Joseph R. Maciel, a Union member, petitioned the district court for a writ of mandamus or prohibition, asserting that all bids besides that of K.G. Walters violated NRS 338.141 and seeking to compel rejection of those bids. TCID filed a motion to dismiss the writ petition, which the district court granted upon determining that the Union and Maciel lacked standing and that the bid was properly awarded to A & K Earthmover.

The Union and Maciel appealed, contending that they have standing because Union employees, including Maciel, would likely have been employed on the project if noncompliant bids were rejected and the only responsive bidder, with whom the Union has a collective bargaining agreement, were chosen instead. The Union and Maciel also pointed out that the public works statutes are intended to promote the public’s interest in securing competition, preserving public funds, and protecting against corruption. They argued that, as citizens and taxpayers who would likely have benefitted from K.G. Walters’ selection as the responsive bidder, they should be allowed to pursue the public’s interest in ensuring that the public works statutes are strictly complied with here.

TCID disagreed, noting that the project had been completed and arguing that neither the Union nor Maciel would be directly benefitted by the issuance of the writ, and that they are not proper parties to pursue any remedy on the public’s behalf.

The Supreme Court of Nevada agreed with TCID, concluding that the district court did not err.  The court noted that  standing to obtain relief on behalf of the public is available only in limited circumstances.




TAX - NEW YORK

Board of Managers of French Oaks Condominium v. Town of Amherst

Court of Appeals of New York - May 1, 2014 - N.E.3d - 2014 N.Y. Slip Op. 02971

Condominium’s board of managers petitioned for certiorari review of town’s real property tax assessments. The Supreme Court, Erie County determined the value of the condominium after a hearing before a referee. Town appealed. The Supreme Court, Appellate Division affirmed. Town appealed as of right, based on existence of two-Justice dissent in Appellate Division’s decision.

The Court of Appeals held that appraisal offered by condominium’s board did not rebut the presumption of validity for town’s assessment.

In a tax certiorari proceeding relating to real property taxes, a rebuttable presumption of validity attaches to the valuation of property made by the taxing authority, and consequently, a taxpayer challenging the accuracy of an assessment bears the initial burden of coming forward with substantial evidence that the property was overvalued by the assessor.

Appraisal offered by condominium’s board of managers did not rebut the presumption of validity for town’s assessment, where the appraiser, who used an income capitalization method, did not support the appraisal’s proposed capitalization rate with objective data necessary to substantiate the component calculations.




ZONING - NEW YORK

Gabrielli v. Town of New Paltz

Supreme Court, Appellate Division, Third Department, New York - April 24, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 02826

Owners of property within town petitioned for Article 78 review and brought action for declaratory judgment, seeking annulment of local law enacted to prevent despoliation and destruction of wetlands, waterbodies, and watercourses. The Supreme Court, Ulster County,  entered judgment in favor of owners. Town appealed.

The Supreme Court, Appellate Division held that:

  • Town’s planning board took requisite hard look before deciding that no environmental impact statement (EIS) was required;
  • Board’s identification of regulated area was sufficiently specific;
  • Law was not unconstitutionally vague;
  • Law did not improperly regulate activities exempt from permit requirements of state’s Department of Environmental Conservation (DEC);
  • Conservation fee established by law did not constitute ultra vires tax;
  • Law did not improperly empower board to make quasi-judicial determinations as to when taking occurred; and
  • Law was not preempted by Mined Land Reclamation Law or other state law.

 




LIABILITY - NEW YORK

Perez v. City of New York

Pedestrian allegedly injured when he fell upon stepping onto a sunken portion of a roadway brought personal injury action against city. The Supreme Court, Kings County, Ash, J., granted city’s motion for summary judgment, and pedestrian appealed.

The Supreme Court, Appellate Division, held that:

  • City established its prima facie entitlement to summary judgment, and
  • Affidavit of pedestrian’s expert engineer did not raise triable issue of fact as to whether city created the alleged defective condition.

City established its prima facie entitlement to summary judgment, in personal injury action alleging that pedestrian was injured when he stepped into a sunken portion of a roadway, by demonstrating that it did not have the required prior written notice of the alleged defective condition and that it did not affirmatively create the alleged defective condition.

Summary judgment evidence in personal injury action alleging that pedestrian was injured when he stepped into a sunken portion of a roadway, consisting principally of the affidavit of pedestrian’s expert engineer, did not raise triable issue of fact as to whether city created the alleged defective condition.  Conclusions set forth by expert were not supported by empirical data or any relevant construction practices or industry standards, and his affidavit failed to explain how he reached the conclusion that the alleged defective condition was created by work performed by city.

 




INVERSE CONDEMNATION - TEXAS

City of Keller v. Hall

Court of Appeals of Texas, Fort Worth - May 1, 2014 - S.W.3d - 2014 WL 1712163

Landowners sued City for inverse condemnation, alleging that various actions by the City caused repeated flooding of their property.

The City alleged that the trial court did not have jurisdiction because (1) the evidence established as a matter of law that the City did not know and was not substantially certain that damage to the Property was going to occur when it took the actions complained of, (2) the evidence established as a matter of law that none of the actions of the City proximately caused the flood damages, and (3) the landowners failed to comply with the notice provision of the City’s charter.

The appeals court upheld the trial court’s denial of the City’s plea to the jurisdiction, finding that the City was aware that its actions proximately caused the flooding.

 




EMPLOYMENT - VERMONT

Stone v. Town of Irasburg

Supreme Court of Vermont - April 25, 2014 - A.3d - 2014 VT 43

Linda Stone sued the Town of Irasburg alleging that the selectboard had acted unlawfully in ordering her, as town treasurer, to raise her bond to $1,000,000. Following plaintiff’s inability to obtain the bond and her removal from office by the selectboard, she claimed the Town improperly raised her bond and prevented her from obtaining the bond. She sought monetary damages based on common law defamation, tortious interference with office, violation of the Vermont Constitution, and deprivation of due process.

The trial court granted summary judgment in favor of the Town and treasurer appealed.

The Supreme Court of Vermont held that:

 




PUBLIC MEETINGS - WASHINGTON

Citizens Alliance for Property Rights Legal Fund v. San Juan County

Court of Appeals of Washington, Division 1 - April 28, 2014 - Not Reported in P.3d - 2014 WL 1711768

Citizens Alliance for Property Rights (CAPR) alleged that members of the San Juan County Council  violated the Open Public Meetings Act (OPMA) by attending a series of closed meetings as part of a working group known as the San Juan County Critical Area Ordinance/Shoreline Master Program Implementation Committee (CAO Team).

Under Washington case law, a gathering that includes less than a majority of the governing body does not violate OPMA.  At all times relevant to this case, the Council had six members. Therefore, a gathering that includes three councilmembers does not constitute a “meeting” of the Council for OPMA purposes, regardless of whether “action” is taken.

CAPR contended that on November 14, 2011, four of six councilmembers held a “meeting” in violation of OPMA by participating in an email and telephone exchange in which they discussed CAO Team matters. The trial court properly rejected this argument.  “The OPMA does not require the contemporaneous physical presence of members of the governing body in order to constitute a meeting.” An exchange of emails can constitute a “meeting” for OPMA purposes.  However, “the mere use or passive receipt of e-mail does not automatically constitute a ‘meeting.'”  Viewed in the light most favorable to CAPR, the record shows that at most three councilmembers participated in the active discussion of issues by phone or email. The fourth councilmember received a copy of the email, but there was no evidence that she responded or actively participated in the discussion.

The court denied CAPR’s request that it should create a new rule and hold that a “meeting” occurs for the purposes of OPMA when the number of members present is sufficient to block action when the matter discussed comes up for a vote before the governing body, thereby constituting a “negative quorum.”
Finally, CAPR argued that it does not matter if a majority of the Council was not present at CAO Team meetings, because the CAO Team itself was a “governing body” subject to OPMA requirements.  The court disagreed, holding that a committee “acts on behalf of” a governing body when it exercises actual or de facto decision making authority. Because CAPR submitted no evidence that a majority of the Council attended CAO Team gatherings or that the CAO Team exercised actual or de facto decision making authority, no “meeting” occurred for OPMA purposes.



LIABILITY - ALASKA

Mattox v. State, Dept. of Corrections

Supreme Court of Alaska - April 18, 2014 - P.3d - 2014 WL 1512475

Former inmate brought negligence action against Department of Corrections, alleging that Department negligently failed to protect him after he reported being threatened and that he was subsequently assaulted and seriously injured while in prison. The Superior Court granted Department summary judgment. Inmate appealed.

The Supreme Court of Alaska held that:

  • As a matter of first impression, Department had duty to protect inmate from all reasonably foreseeable harm, including assaults from other inmates, despite contention that prison officials were only required to act when report of threat communicated immediate, identifiable, and specific danger.;
  • Fact issue as to foreseeability precluded summary judgment; and
  • Fact issue as to whether Department was on notice of risk of attack precluded summary judgment.

 




PUBLIC UTILITIES - CALIFORNIA

Perkin v. San Diego Gas & Electric Company

Court of Appeal, Fourth District, Division 1, California - April 11, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 3928 - 2014 Daily Journal D.A.R. 4539
Owners of home damaged by wildfire brought action against electrical utility, which, through its power lines, allegedly had a role in the fire, alleging inverse condemnation, trespass, nuisance, and statutory violations. Utility, which had been the defendant in a master class action regarding the fires, demurred based on the statute of limitations. The Superior Court sustained the demurrer without leave to amend, and homeowners appealed.

The Court of Appeal held that:

  • Court could not use fire boundary map from class action complaint against utility to determine whether statute of limitations was tolled;
  • Prior class action lawsuits did not place utility on notice of homeowners’ potential claim; and
  • Tolling would not protect the “class action device.”

Court could not use fire boundary map from class action complaint against electrical utility, which allegedly had a role in the fires, to determine whether statute of limitations on homeowners’ separate action against utility was tolled while the class action was pending.  Map, which was used in the class action to help define the term “geographic area” in the complaint, was not proposed in the class action to narrow the class definition or otherwise intended to define the class beyond the actual words of the complaint, and utility did not rely on the map in challenging the class allegations or otherwise use the map beyond its demurrer to homeowners’ complaint.

Two prior class action lawsuits against electrical utility following wildfires did not place utility, whose power lines allegedly contributed to the fires, on notice of homeowners’ potential claim as required to toll statute of limitations on homeowners’ claims for inverse condemnation, trespass, and nuisance.  First class action lawsuit concerned a different fire than the one which damaged homeowners’ residence, and plaintiffs in second class action were not limited to a set number from a specific, clearly defined area who claimed a certain type of damage, but rather could be found anywhere in California claiming that their properties were damaged in some way by the fire.

Equities did not favor tolling statute of limitations on homeowners’ claim against electrical utility arising out of wildfire damage to their home on basis that separate class action lawsuit against utility provided notice of potential claims.  Homeowners had 16 months after the court denied class certification in which to file suit, but failed to do so, and homeowners clearly knew that they suffered damage shortly after the fire, which required them to clean up soot and ash as well as restore and re-stain stained glass windows damaged by the fire.

Tolling of homeowners’ claims against electrical utility, which allegedly had role in wildfire which damaged home, on basis of prior class action lawsuit against utility by other residents which purportedly gave utility notice of the claim would not protect the “class action device,” such that court would decline to apply the doctrine of class action tolling.  Prior court denied class certification because it found insufficient commonality and the class action was not superior to individual litigation, and more than 1,400 plaintiffs filed individual suits against utility prior to the denial of class certification.

 




EMINENT DOMAIN - DELAWARE

Lawson v. State

Supreme Court of Delaware - April 23, 2014 - A.3d - 2014 WL 1622687

Property owners filed motion for litigation expenses and costs for successfully defending against State’s condemnation proceeding. The Superior Court the denied motion. Owners appealed.

The Supreme Court of Delaware held that:

  • Order dismissing without prejudice State’s condemnation proceeding was a “final judgment” that entitled property owners to litigation expenses;
  • State did not initiate proceedings in bad faith as was necessary to warrant award of litigation expenses and costs under bad faith exception to the American Rule; and
  • Remand was necessary for trial court to make explicit determination as to owners’ entitlement to statutory costs.

 




IMMUNITY - KENTUCKY

Marson v. Thomason

Supreme Court of Kentucky - April 17, 2014 - S.W.3d - 2014 WL 1499498

Parents, individually and on behalf of legally blind middle school student injured in a fall from bleachers brought negligence action against two school principals and a teacher. The Circuit Court, Floyd County, denied defendants’ motion for summary judgment, and they appealed. The Court of Appeals affirmed in part and vacated in part. Defendants sought further review.

The Supreme Court of Kentucky held that:

  • Middle school principal was entitled to qualified immunity for student’s injuries;
  • High school principal was entitled to qualified immunity for student’s injuries; but
  • Teacher did not have qualified immunity for student’s injuries.

High school principal’s general duty was to look out for the safety of students, and thus, principal was entitled to qualified immunity for injuries sustained by legally blind middle school student who fell from improperly extended bleacher in school gymnasium.  Principal had only a general supervisor duty of the high school’s use of the gym, which it shared with middle school, and did not participate in the morning routine of the middle-school students.

Teacher’s duty to supervise students as they entered gymnasium was ministerial, even though it might have permitted some decision-making during the process, and thus, teacher did not have qualified immunity for the injuries sustained by legally blind middle school student who fell from improperly extended bleacher after being directed to enter gym and to proceed to the section of bleachers assigned to his class.  Teacher was given a specific task to do bus duty, which included looking out for safety issues and taking the routine steps that were the established practice for bus duty at school, including directing students to gym, acts that were not discretionary in nature.

 




EMPLOYMENT - MARYLAND

Ellsworth v. Baltimore Police Dept.

Court of Appeals of Maryland - April 24, 2014 - A.3d - 2014 WL 1632763

Police officer sought judicial review of decision of city police department trial board, determining that officer had violated department rules. The Circuit Court reversed and remanded. Department appealed. The Court of Special Appeals reversed and remanded. Officer sought certiorari review.

The Court of Appeals held that:

  • Brady protections, requiring State disclosure of exculpatory evidence to the defense in criminal cases, do not extend to the administrative processes of the Law Enforcement Officers’ Bill of Rights (LEOBR), and
  • LEOBR does not require disclosure of information regarding pending investigations unrelated to the officer and his or her specific charges.

LEOBR does not require state and federal agencies to provide information regarding pending investigations unrelated to the officer and his or her specific charges in officer disciplinary proceedings.  The Legislature only intended to disclose information related to the officer and the charges specified, rather than the disclosure of information regarding an alleged extraneous investigation of a witness, which did not relate to the officer and his or her specific charges involved in the hearing.

 

 




MUNICIPAL ORDINANCE - MICHIGAN

Bonner v. City of Brighton

Supreme Court of Michigan - April 24, 2014 - N.W.2d - 2014 WL 1640602

Landowners challenged the constitutionality of § 18–59 of the Brighton Code of Ordinances (BCO), which created a rebuttable presumption that an unsafe structure may be demolished as a public nuisance if it is determined that the cost to repair the structure would exceed 100 percent of the structure’s true cash value as reflected in assessment tax rolls before the structure became unsafe.

Specifically, the issue was whether the unreasonable-to-repair presumption violated substantive and procedural due process protections by permitting demolition without affording the owner of the structure an option to repair as a matter of right.

The Supreme Court of Michigan held that BCO § 18–59 did not constitute an unconstitutional deprivation of substantive due process because the ordinance’s unreasonable-to-repair presumption was reasonably related to the city of Brighton’s legitimate interest in promoting the health, safety, and welfare of its citizens. Furthermore, the ordinance was not an arbitrary and unreasonable restriction on a property owner’s use of his or her property because there were circumstances under which the presumption could be overcome and repairs permitted.

The court also held that the city of Brighton’s existing demolition procedures provided property owners with procedural due process. Contrary to plaintiffs’ argument, the prescribed procedures were not faulty for failing to include an automatic repair option.  It is sufficient that aggrieved parties are provided the right to appeal an adverse decision to the city council as well as the right to subsequent judicial review. For the facial challenge to succeed, plaintiffs must show that no aggrieved property owners can meaningfully exercise their right to review or that such review is not conducted impartially. Because they have not done so, plaintiffs have failed to establish that BCO § 18–59, on its face, violates their procedural due process rights.

 




SPECIAL ASSESSMENTS - NEBRASKA

Johnson v. City of Fremont

Supreme Court of Nebraska - April 18, 2014 - N.W.2d - 2014 WL 1509782

A city relied upon Nebraska’s “gap and extend” law to pave one block of a street and assess the paving costs against abutting property owners. At one end, the new paving adjoined a paved intersection of two paved streets. At the other end, there was no connecting paved street.

Property owner alleged that the levy of special assessments was invalid, claimed that the street improvement did not fill an unpaved gap between paved streets, but, rather, merely extended the paving on Donna Street.

The Supreme Court of Nebraska held that the paving was authorized under the second sentence of § 18–2001, which permitted the city to “pave any unpaved street … which intersects a paved street for a distance of not to exceed one block on either side of such paved street.”




PUBLIC UTILITIES - NEW JERSEY

Borough of Upper Saddle River, N.J. v. Rockland County Sewer Dist. No. 1

United States District Court, S.D. New York - April 22, 2014 - Slip Copy - 2014 WL 1621292

Borough of Upper Saddle River and citizens brought suit under the Federal Water Pollution Control Act, 33 U.S.C. §§ 1251–1376 (2006) and state common law, alleging that, in the course of operating a sewage treatment facility, Rockland County Sewer District # 1 had polluted-and will likely continue to pollute-the Saddle River.  Plaintiffs brought four causes of action: continuing violations under section 301 of the Clean Water Act; and private nuisance, public nuisance and trespass claims under state common law.  Plaintiffs sought civil penalties, injunctive and declaratory relief.

Both sides moved for summary judgment.  “The issue now before the Court is to what extent Defendant can be held liable for its sewage spills through a citizen suit brought under the Clean Water Act and state common law.”

The District Court held that:

 

 

 




(MIS)GOVERNANCE - NEW JERSEY

U.S. v. Bencivengo

United States Court of Appeals, Third Circuit - April 23, 2014 - F.3d - 2014 WL 1613315
Former mayor was convicted in the United States District Court of violating Hobbs Act and Travel Act for accepting money from insurance broker in exchange for agreeing to influence members of township school board to refrain from putting school district’s insurance contract up for competitive bidding, and he appealed.

The Court of Appeals held that:

  • Mayor acted under “color of official right” when he accepted money from broker;
  • District court did not commit plain error in accepting government’s unopposed jury instructions;
  • Mayor was “performing a governmental function,” within meaning of New Jersey’s bribery statute, when he accepted bribes;
  • Defendant’s convictions did not violate Double Jeopardy Clause; and
  • District judge’s conduct did not constitute reversible error.

Mayor acted under “color of official right,” as required to support his conviction under Hobbs Act, when he accepted money from insurance broker in exchange for agreeing to influence members of township school board to refrain from putting school district’s insurance contract up for competitive bidding, even though mayor had no official power over award of school board insurance contracts, where broker reasonably believed that mayor’s position gave him influence, and not effective power, over school board’s decision.

In sustaining mayor’s bribery conviction, Court of Appeals holds that where public official has, and agrees to wield, influence over governmental decision in exchange for financial gain, or where official’s position could permit such influence, and victim of extortion scheme reasonably believes that public official wields such influence, that is sufficient to sustain conviction under Hobbs Act, regardless of whether official holds any de jure or de facto power over decision.




INVERSE CONDEMNATION - NEW MEXICO

Moongate Water Co., Inc. v. City of Las Cruces

Court of Appeals of New Mexico - April 17, 2014 - P.3d - 2014 WL 1600574

Moongate Water Company, Inc. appealed the district court’s order awarding costs to the City of Las Cruces as the prevailing party in an inverse condemnation action brought by Moongate.

The sole question on appeal was whether the Eminent Domain Code NMSA 1978, § 42A–1–1 to –33 permitted costs to be taxed against a property owner who exercises the constitutional or statutory right to seek just compensation for a taking of private property.

The court concluded that, “We see nothing unique or particularly novel in awarding costs to a prevailing party in an inverse condemnation proceeding, and we read Section 42A–1–29 of the Code as expressly providing for such an award. Accordingly, the district court correctly ruled that Rule 1–054(D) authorizes an award of costs to the City as a prevailing party in this case.”

 

 




LIABILITY - NEW YORK

Selmani v. City of New York

Supreme Court, Appellate Division, Second Department, New York - April 23, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 02764

Restaurant patrons brought action against city, city fire department, and two individual firefighters, seeking to recover damages for personal injuries sustained when firefighters allegedly assaulted them. The Supreme Court, Kings County, granted summary judgment in favor of city and city fire department. Patrons appealed.

The Supreme Court, Appellate Division, held that:

  • City and fire department established their prima facie entitlement to judgment as matter of law on issue of vicarious liability for alleged assault, but
  • City and fire department failed to establish prima facie entitlement to judgment as matter of law on claims for negligent hiring, supervision, training, and retention.

City and city fire department established their prima facie entitlement to judgment as matter of law on issue of vicarious liability for two firefighters’ alleged assault of restaurant patrons by demonstrating that alleged tortious conduct of two firefighters was not within scope of their employment.

City and city fire department, moving for summary judgment on restaurant patrons’ claims for negligent hiring, supervision, training, and retention based on two firefighters’ alleged assault of patrons, failed to establish prima facie entitlement to judgment as matter of law, since city and fire department failed to submit evidence that they did not know or have reason to know of firefighters’ alleged propensity for assaultive conduct, or that any such negligence on part of city or fire department was proximate cause of patrons’ injuries.




EMPLOYMENT - VIRGINIA

Lewis v. City of Alexandria

Supreme Court of Virginia - April 17, 2014 - S.E.2d - 2014 WL 1499621

Former city employee filed suit for wrongful termination under Virginia Fraud Against Taxpayers Act (VFATA), seeking back pay as liquidated damages, reinstatement, and special damages, including reinstatement, front pay, and lost pension benefits. Following jury trial, the Circuit Court entered judgment on jury’s award $104,096 in back pay, which was doubled for total of $208,192, and attorney fees, but then denied employee’s subsequent motion for reinstatement, front pay, and lost pension benefits, and then denied reconsideration. Employee appealed.

As matter of first impression, the Supreme Court of Virginia held that:

  • Denial of former city employee’s request for front pay in amount of $57,178 was not abuse of discretion, and
  • Denial of employee’s request for lost pension compensation was not abuse of discretion.

 




PUBLIC UTILITIES - OHIO

Kamal v. City of Toledo, Dept. of Public Utilities

United States District Court, N.D. Ohio, Western Division - April 14, 2014 - Slip Copy - 2014 WL 1493136

Landowner alleged he was deprived of Constitutional due process rights when the City terminated water service to several properties.  The key issue was whether Plaintiff had a property interest under the Fourteenth Amendment in water services provided by the City.

The court found that Plaintiff had not identified a state or local statute which creates a property interest in the receipt of water services by making water available for all users and prohibiting services from being terminated at will and requiring just cause.  Therefore, Plaintiffs had no legitimate claim of entitlement to water service under Ohio or municipal law.  In addition, the court found no implied contract between Plaintiff and the City for water services.

 




ZONING - OHIO

Tree of Life Christian Schools v. City of Upper Arlington

United States District Court, S.D. Ohio, Eastern Division - April 18, 2014 - Slip Copy - 2014 WL 1576873

When Upper Arlington officials became aware that church was considering purchasing a commercial office building for use as a school, they met with the listing agent and advised him that schools were not a permitted use for that building.  The church subsequently contracted to purchase the building, contingent upon zoning to allow a school. Upon learning of the buyer, officials advised the church’s school superintendent directly that schools were not a permitted use.

The church was denied a conditional use permit and was informed that it would need to submit a rezoning application if it planned to pursue a private school at that location.

The church filed a complaint alleging violations of its rights to free speech, free exercise of religion, peaceable assembly, equal protection, due process, and the establishment clause under the First and Fourteenth Amendments to the United States Constitution and Article I, Section 7 of the Ohio Constitution, as well as a violation of the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA).

The District Court held that the city’s Uniform Development Ordinance (UDO) did not violate RLUIPA’s “equal terms” provision, which states that, “No government shall impose or implement a land use regulation in a manner that treats a religious assembly or institution on less than equal terms with a nonreligious assembly or institution.”  As the UDO prohibited public schools as well, the prohibition of private schools did not constitute differential treatments.

“As set forth above, RLUIPA requires ‘equal treatment, not special treatment.’  To interpret RLUIPA to require Upper Arlington to allow Plaintiff to operate a religious school in the ORC Office and Research District, would effectively require Upper Arlington to treat Plaintiff more favorably than secular schools, which are prohibited from operating in that district. Stated differently, while RLUIPA operates as a shield to protect religious assemblies or institutions from unequal treatment, Plaintiff attempts to use the equal terms provision as a sword to receive preferential treatment.”

 




ANNEXATION - TENNESSEE

Rich v. City of Chattanooga

Court of Appeals of Tennessee - April 17, 2014 - Slip Copy - 2014 WL 1513349

The City of Chattanooga proposed to deannex thirty-six residential lots, pursuant to Tennessee Code Annotated § 6–51–201(b).

At issue in this case was whether citizens who reside on real property that is proposed for deannexation by a municipal ordinance may, pursuant to Tennessee Code Annotated § 6–51–201 (2011), properly bring a quo warranto or declaratory judgment action against the municipality to challenge adoption of the deannexation ordinance.

The Court of Appeals held that quo warranto relief is not available in cases where referendum elections serve as the check on the governmental exercise of deannexation power via ordinance.

 




BENEFITS - TENNESSEE

Gertsch v. City of Martin, Tenn.

United States District Court, W.D. Tennessee, Eastern Division - April 17, 2014 - Slip Copy - 2014 WL 1572786

Former city firefighters initiated an action against the City of Martin, Tennessee, alleging deprivation of their property rights without due process of law in violation of 42 U.S.C. § 1983 as well as common-law breach of contract.  Plaintiffs were eligible for retirement benefits through, and had properly enrolled in, the Tennessee Consolidated Retirement System (TCRS).

The City recognizes an employee’s unused, accumulated sick leave as creditable service and reports the unused sick leave to TCRS when an employee applies for retirement benefits.  City firefighters worked twenty-four hour shifts.

The TCRS requires participating municipal employers, such as the City, to report the unused sick leave of certain types of employees, including firefighters, in days rather than in hours, but, as far as the TCRS is concerned, there is no standard formula for municipalities to convert unused sick hours to days.  In reporting Plaintiffs’ respective days of unused, accumulated sick leave to TCRS, the City converted every twenty-four hours of unused sick leave into one day.  Plaintiffs argued that the City should have converted every twelve hours of unused sick leave into one day.

The court dismissed Plaintiffs’ breach of contract claim, finding that the personnel policy upon which they relied was not a contract.

The court also found that the entitlement Plaintiffs claimed—to a specific formula for counting their unused, accumulated sick leave toward creditable service—was to a process, rather than substance, and was therefore not a property interest protected by the Fourteenth Amendment.

 

 




WATER LAW - VIRGINIA

Ferguson v. Stokes

Supreme Court of Virginia - April 17, 2014 - S.E.2d - 2014 WL 1499599

Owner of property adjacent to island and causeway and who acquired riparian rights appurtenant to shoreline filed ejectment action against occupier of island, alleging that his oyster house on island was located within riparian zone. Occupier filed plea in bar of statute of limitations. The Circuit Court dismissed plea as barred by prior settlement agreement between owner and occupier, and entered order stating that occupier did not own any shoreline property, that he had no riparian rights, and that bottomlands under island and causeway belonged to Commonwealth. Occupier appealed.

The Supreme Court of Virginia held that:

  • Occupier’s plea in bar of statute of limitations as defense to property owner’s ejectment action was equivalent of claim for adverse possession that fell within scope of prior settlement agreement with owner;
  • Owner’s riparian rights appurtenant to shoreline that were vested in owner by court order could not be divested by subsequent enactment of statute governing title to lands that were once state-owned bottomlands acquired by good-faith purchasers; and
  • Occupier’s oyster house was fixture attached to realty, not personalty.

 




IMMUNITY - OHIO

Lewis v. Toledo

Court of Appeals of Ohio, Sixth District, Lucas County - April 18, 2014 - Slip Copy - 2014 -Ohio- 1672

Suspect filed suit against police officer for assault, battery, recklessness, and gross negligence, stemming from incident in which officer hit suspect with her police cruiser while assisting with his apprehension. The Court of Common Pleas denied officer summary judgment. She appealed.

The Court of Appeals held that:

  • Summary judgment evidence did not raise fact question as to whether officer lost political subdivision immunity, and
  • Bystanders’ statements that officer’s conduct was intentional were inadmissible as opinion testimony.

Suspect’s testimony and affidavits of lay witnesses offered on summary judgment did not raise fact question as to whether police officer lost political subdivision immunity against suspect’s claims.  Whether officer maliciously, in bad faith, wantonly, or recklessly breached any duty owed to suspect was beyond the knowledge or experience possessed by lay persons.

Statements made by bystanders in summary judgment affidavits that police officer intentionally struck fleeing suspect with her police cruiser were not admissible as opinion testimony by lay witnesses to determine non-intentional allegations in suspect’s negligence action against officer, since allegations were made without personal knowledge.

 

 




LIABILITY - WASHINGTON

Jewels v. City of Bellingham

Court of Appeals of Washington, Division 1 - April 21, 2014 - P.3d - 2014 WL 1593129

Bicyclist, who was injured when he tried to bypass speed bump in public park by going through what he believed was a gap between the speed bump and the curb and, as he did this, he encountered an asphalt berm, also known as a water diverter, that caused him to lose control of bike, filed a complaint for personal injuries and damages against city. The Superior Court granted the city’s motion for summary judgment, and bicyclist appealed.

The Court of Appeals held that bicyclist could not establish that city had actual knowledge that the water diverter was dangerous, and absent showing of actual knowledge, bicyclist did not establish city’s liability under recreational use statute for his injuries.




PUBLIC UTILITIES - WASHINGTON

IGI Resources, Inc. v. City of Pasco

Court of Appeals of Washington, Division 3 - April 22, 2014 - P.3d - 2014 WL 1600377

Natural gas supplier brought action against city for money had and received seeking reimbursement for taxes paid on gas delivered outside the city’s boundaries. The Superior Court granted supplier summary judgment. City appealed.

The Court of Appeals held that supplier was required to exhaust its administrative remedies in seeking refund of taxes paid pursuant to city ordinance that taxed natural gas sales within the city limits before filing action against city for money had and received.  Superior court’s jurisdiction over supplier’s equity claim did not vitiate the city’s administrative exhaustion requirements.




EMINENT DOMAIN - WASHINGTON

City of Bellevue v. Best Buy Stores, LP

Court of Appeals of Washington, Division 1 - April 21, 2014 - Not Reported in P.3d - 2014 WL 1600924

The City of Bellevue brought a condemnation action over two parcels of land in order to extend NE 4th Street.  The proposed design called for a five-lane road. Best Buy Stores, LP (Best Buy), the lessor of one of the parcels, opposed the condemnation action, contending that the to-be-condemned property was not necessary to fulfill a public use. Specifically, Best Buy contended that a five-lane road was not necessary and that a four-lane road would suffice.

The Court of Appeals held that Best Buy failed to demonstrate that Bellevue’s determination of public necessity was arbitrary and capricious such that it amounted to constructive fraud. “Because it is not our role to second-guess Bellevue’s choice of road design, we affirm.”

“Although the courts may well determine from the evidence whether a project is for the public benefit, convenience or necessity, they are not trained or equipped to pick the better route, much less design and engineer the project. Thus, the rule that leaves these decisions to the administrative agencies is a sensible one consistent with the idea that the public’s business be carried out with reasonable efficiency and dispatch by those possessing the superior talents to accomplish the public purposes.”




ANNEXATION - WISCONSIN

Ries v. Village of Bristol

Court of Appeals of Wisconsin - April 17, 2014 - Slip Copy - 2014 WL 1499471

The Village of Bristol petitioned the circuit court for an annexation referendum on whether to annex the Town of Bristol to the Village.  The circuit court granted the Village’s petition for an annexation referendum, and the referendum passed. The Village enacted an ordinance annexing the Town to the Village.

Individual and his L.P. (“Ries”) subsequently filed a complaint seeking a declaration that the annexation by referendum was invalid because it violated the rule of reason, a judicially created doctrine used to determine whether an annexation is valid.

Ries raised two main issues: (1) whether the annexation fails to satisfy the rule of reason because the Village abused its discretion by initiating the annexation process and because there is no reasonable present or future demonstrable need for annexation; and (2) whether the circuit court erred in excluding testimony regarding discussions by village board members about whether to initiate the annexation process.

The court found not abuse of discretion, affirming the annexation.




CIVIL SERVICE - ALABAMA

Bates v. Crane

Court of Civil Appeals of Alabama - April 11, 2014 - So.3d - 2014 WL 1407239

Complainant, the niece of a murder victim, sought judicial review of disciplinary sanction imposed upon police chief by the Civil Service Board, claiming the sanction was too lenient in light of finding that the chief had maintained inappropriate communication with the defendant during pendency of the murder prosecution in violation of Board rules. The Circuit Court dismissed appeal upon finding that complainant lacked standing to appeal the decision. Complainant appealed.

The Court of Civil Appeals held that Civil Service Board’s rules afforded complainant standing to appeal Board’s decision.

Civil Service Board’s rules clearly contemplated that a party who files a complaint against a member of the police department is entitled to appeal from a decision of the Board if that party “feels aggrieved” and thus afforded complainant, the niece of a murder victim and a participant in the hearing before the Board, standing to appeal Board’s decision to impose, what claimant considered to be, a lenient disciplinary sanction upon police chief for maintaining personal communication with the defendant, who chief knew through his son, and allegedly involving himself in the prosecutorial decision making process.




LIABILITY - ALASKA

Regner v. North Star Volunteer Fire Dept., Inc.

Supreme Court of Alaska - April 11, 2014 - P.3d - 2014 WL 1408551

 Homeowner brought negligence action against fire departments and several of their employees following fire that destroyed mobile home. The Superior Court granted summary judgment in favor departments and employees. Homeowner appealed.

The Supreme Court of Alaska held that genuine issue of material fact existed regarding whether fire departments breached duty to homeowner or caused injury to homeowner.

 




IMMUNITY - ALASKA

Steward v. State

Supreme Court of Alaska - April 11, 2014 - P.3d - 2014 WL 1408549

After fatal car accident, estate and surviving spouse of motorist brought negligence action against state. The Superior Court  granted partial summary judgment to state and, following jury trial, entered judgment in favor of state. Estate appealed.

The Supreme Court held that:

  • Discretionary function immunity applied to state’s decision not to reinstall a removed guardrail;
  • Trial court’s exclusion of motorist’s estate’s expert witness on accident reconstruction from courtroom, during testimony of police officer witness for state regarding his conclusions about what occurred during accident, was error; but
  • Such error was harmless error.

 




EMINENT DOMAIN - ARIZONA

City of Phoenix v. Garretson

Supreme Court of Arizona - April 17, 2014 - P.3d - 2014 WL 1499642

City brought eminent domain proceeding to determine the amount of just compensation due to property owner who lost access rights of ingress and egress to abutting street when city constructed light rail tracks adjacent to owner’s property, but who retained access rights to his property from another street. City moved for partial summary judgment, arguing that property owner was not entitled to compensation because he had alternate access to the property. The Superior Court granted motion. Property owner appealed. The Court of Appeals vacated and remanded, and city appealed.

The Supreme Court of Arizona held that:

  • Property owner may be entitled to compensation if the government, in the exercise of its police power, eliminates the owner’s established access to an abutting roadway, even if other streets provide access to the property, and
  • Landowner had a claim for compensation under eminent domain provision of State Constitution when city completely eliminated landowner’s preexisting access to street, leaving him with no means of ingress or egress to that street or any replacement roadway in that location.

 




IMMUNITY - CALIFORNIA

Martinez v. County of Ventura

Court of Appeal, Second District, Division 6, California - April 8, 2014 - Cal.Rptr.3d - 14 Cal. Daily Op. Serv. 3825

 Motorcyclist brought personal injury action against county, alleging that asphalt berm constituted a dangerous condition of public property. The Superior Court entered judgment on special jury verdict for county. Motorcyclist appealed.

The Court of Appeal held that county failed to satisfy the “approval” element of county’s affirmative defense of design immunity, in motorcyclist’s personal injury action alleging that asphalt berm and raised “top-hat” drain constituted a dangerous condition of public property, even if county repeatedly used the drain design for 25 years, absent evidence that the drains were designed before they were built in the field, and absent evidence that county exercised its discretion to approve the drain system before the drains were installed.




TAX - CONNECTICUT

Longview Estates, LLC v. Woodin

Appellate Court of Connecticut - April 22, 2014 - A.3d - 2014 WL 1464321

Mobile park owner commenced summary process action against homeowners for alleged failure to pay rent for lot on which their mobile home was situated. Following entry of judgment of possession and order of execution in favor of park owner, park owner petitioned for finding of abandonment and for order of public sale. Town filed objection to petition based on park owner’s disclosure of defenses in town’s prior action to foreclose tax lien against homeowners and park owner. The Superior Court granted petition and, following sale, entered judgment of conveyance in favor of park owner, which extinguished town’s tax liens. Town appealed.

The Appellate Court held that park owner did not waive its statutory right to recover costs of selling abandoned mobile home by its disclaimer of any interest in home made in town’s prior action.

The Appellate Court held that mobile park owner did not waive statutory right to recover costs of selling abandoned mobile home by filing disclosure of defenses, stating that park owner had “no legal or equitable interest” in the home, in town’s later-withdrawn tax lien foreclosure action against homeowners and park owner.  Park owner did not have interest in mobile home at the time of disclosure, costs of sale were not a known right at the time of the disclosure, and expression of lack of interest was not binding on park owner’s summary process action.




EMPLOYMENT - DISTRICT OF COLUMBIA

District of Columbia Metropolitan Police Dept. v. District of Columbia Office of Employee Appeals

District of Columbia Court of Appeals - April 10, 2014 - A.3d - 2014 WL 1386458

Police officer, who was convicted of driving while intoxicated (DWI), appealed his termination. The Office of Employee Appeals (OEA) upheld the termination, and appeal was taken. The OEA Board reversed and remanded. On remand, the OEA reduced officer’s termination to a thirty-day suspension, with ten days held in abeyance, and police department appealed. The Superior Court affirmed and police department appealed.

The Court of Appeals held that:

  • Unpaid suspension of police officer was an authorized interim administrative suspension authorized pursuant to the District of Columbia Comprehensive Merit Personnel Act (CMPA), and therefore, officer’s subsequent termination did not constitute double punishment, and
  • OEA erred by overturning termination of police officer, which was consistent with the range of penalties permitted for such conduct, without assessing police department’s analysis.

 




PUBLIC RECORDS - FLORIDA

Barfield v. School Bd. of Manatee County

District Court of Appeal of Florida, Second District - April 11, 2014 - So.3d - 2014 WL 1396592

Michael Barfield appealed the trial court’s order denying declaratory relief and access to public records, raising two issues.  First, he argued that the trial court erred in concluding that several requested items contained in a School Board litigation report were exempt under section 119.071(1)(d), Florida Statutes (2012) concerning attorney work-product.  Second, Barfield argued that the School Board policy of suspending an administrative investigation while a corresponding criminal investigation is pending does not preempt the statutory presumption that an administrative investigation is presumed inactive after sixty days.

As to the first issue, the District Court reversed because the School Board failed to prove its burden of entitlement to the exemption under 119.071(1)(d) due to the fact that the cases in question had been closed prior to the request.   The court affirmed the second issue without further comment because the School Board offered uncontroverted evidence that it had a reasonable, good faith anticipation that an administrative finding would be made in the foreseeable future.




EMPLOYMENT - ILLINOIS

Houzenga v. City of Moline, Illinois

United States District Court, C.D. Illinois., Peoria Division - April 14, 2014 - Not Reported in F.Supp.2d - 2014 WL 1464408

Scott Houzenga began his employment with the Moline Fire Department on September 8, 1997. On May 17, 2004, Heather Oepping was hired as the first female firefighter on the Department. During his September 2008 annual evaluation, Houzenga commented that he felt he was subject to a hostile work environment from Oepping because he had given her poor evaluations of her work.

On June 12, 2012, Houzenga filed a Complaint in the Circuit Court for Rock Island County, Illinois alleging claims of: (1) discrimination on the basis of gender; (2) retaliation; and (3) intentional infliction of emotional distress.

Under the indirect or burden-shifting method, the plaintiff must first make a prima facie showing that: (1) he was a member of a protected class; (2) he was meeting legitimate employment expectations; (3) he suffered an adverse employment action; and (4) similarly situated employees outside the protected class were treated more favorably than he was.  Additionally, in a reverse discrimination case such as this, the plaintiff must show background circumstances suggesting that the employer has a reason or inclination to discriminate against men.

The court noted that Houzenga was going to have just a little trouble showing that similarly situated employees outside the protected class were treated more favorably than he was due to the fact that the “outside the protected class” group consisted of just one single woman.

As to Houzenga’s Intentional Infliction of Emotional Distress claim, the court stated that, “it is well-settled that indignities, threats, annoyances, petty oppressions, and other trivialities fail to qualify as outrageous conduct actionable in an IIED claim.”  Good to know, as the BCB workplace subsists solely on a diet of “indignities, threats, annoyances, petty oppressions, and other trivialities.”



CONTRACTS - LOUISIANA

Akers v. Bernhard Mechanical Contractors, Inc.

Court of Appeal of Louisiana, Second Circuit - April 16, 2014 - So.3d - 48, 871 (La.App. 2 Cir. 4/16/14)

This breach of contract claim arose from a public works project to renovate the Shreveport Fire Maintenance Facility. The dispute stemmed from a subcontract to provide the vehicle exhaust system for removing CO gas from the building while fire trucks are being serviced.

The City of Shreveport awarded the general contract to A & R General Contractors. Bernhard Mechanical Contractors won the mechanical subcontract on the job.  Bernhard awarded the exhaust system subcontract to David Akers.

The city rejected Akers’s submittal for “no prior approval.”  Ultimately, the city installed a different exhaust system.  It used a small portion of Akers’ equipment, authorizing Bernhard to pay Akers $3,861 for it.

Akers filed this suit against Bernhard, A & R and the City of Shreveport. He demanded the full bid amount, 18% interest, and attorney fees under the Public Works Act, La. R.S. 38:2246.

In response, Bernhard filed a third party demand against the city, citing a Department of Revenue certificate issued by the city to Bernhard, granting sales tax exemption for the project. The third party demand asserted, “To the extent that Bernhard is found to be the agent for the City of Shreveport with regard to the materials and/or equipment furnished by [Akers] then the City of Shreveport would be obligated to pay any and all amounts awarded to [Akers].”

The court ruled in favor of Akers against Bernhard, awarding him $40,773.00, subject to a credit of $3,861.00, with 18% contractual APR.

The court also granted judgment on the third party demand in favor of Bernhard and against the City of Shreveport, for $40,773.00, subject to a credit of $3,861.00, with 18% contractual APR.  This award was based upon the court’s finding that the city had in fact approved Akers’ submittal, followed by an abortive attempt to retract that approval.

The court rejected the argument that the tax exemption certificate made the city and Bernhard equally or jointly responsible for a breach of contract.  The exemption applies to sales and use taxes for the purchase of component construction materials, taxable services and leases and rentals of tangible personal property for the project. It does not make Bernhard the city’s agent for all purposes.




CORRECTIONS - NEW JERSEY

Thomas v. Cumberland County

United States Court of Appeals, Third Circuit - April 11, 2014 - F.3d - 2014 WL 1395666

 Following attack by other inmates at county correctional facility, inmate brought action against county and corrections officers at facility pursuant to § 1983 and the New Jersey Civil Rights Act, alleging failure to train, failure to protect, failure to intervene, and incitement. The District Court granted summary judgment in favor of county and officer. Inmate’s claims against other officer proceeded to trial, and jury found in favor of officer. Inmate appealed only District Court’s grant of summary judgment in county’s favor on § 1983 failure to train claim.

The Court of Appeals held that triable issue remained as to whether county exhibited deliberate indifference to the need for pre-service training for officers in conflict de-escalation and intervention and whether the lack of such training caused inmate’s injuries, precluding summary judgment on inmate’s § 1983 failure to train claim against county.




ZONING - NEW YORK

Albany Basketball & Sports Corp. v. City of Albany

Supreme Court, Appellate Division, Third Department, New York - April 3, 2014 - N.Y.S.2d - 2014 N.Y. Slip Op. 02370

 Proprietor of auditorium petitioned for Article 78 review of a decision of a city’s board of zoning appeals (BZA), which found that current use of premises was not permitted use under city code. The Supreme Court, Albany County, dismissed proprietor’s application. Proprietor appealed.

The Supreme Court, Appellate Division, held that term “auditorium” did not require fixed seating.

Although a reviewing court will generally grant deference to the interpretation of an ambiguous zoning ordinance by a municipal BZA, where the issue presented is one of pure legal interpretation of the underlying zoning law or ordinance, deference is not required.

Local zoning regulations, being in derogation of the common law, must be strictly construed against the municipality which has enacted and seeks to enforce them, and any ambiguity in the language used must be resolved in favor of the property owner.

Resolving ambiguities in city’s zoning ordinances in favor of auditorium proprietor, term “auditorium” was not limited to area of concert hall, theater, school, or other structure in which audience sat, but instead included building for public gatherings or meetings or large room or building where people gather to watch performances, hear speeches, or other similar activities.  Thus, city’s BZA unreasonably interpreted that term as requiring fixed seating, and on those grounds finding that using premises for “rave” party, nightclub, dance club, or other similar events did not constitute permitted use under ordinance applicable to commercial office zoning district in which auditorium was located.




EMPLOYMENT - NORTH CAROLINA

Blakeley v. Town of Taylortown

Court of Appeals of North Carolina - April 15, 2014 - S.E.2d - 2014 WL 1457794

Terminated Police Chief, Timothy Blakeley, brought wrongful termination action against the Town of Taylortown.

The jury was asked to answer four issues: (1) Was the plaintiff’s refusal to participate in conduct which violated public policy a substantial factor in the defendant’s decision to terminate him?; (2) Would defendant have terminated plaintiff if he had not refused to participate in that conduct?; (3) What amount of damages is plaintiff entitled to recover?; and (4) By what amount should the plaintiff’s actual damages be reduced?  The jury returned a verdict and answered the issues as: yes, no, $291,000, and $191,000, respectively.

The appeals court granted the town’s motion to amend the verdict based on the jury’s failure to properly offset the amount of damages by the amount of money plaintiff earned in other jobs and in unemployment benefits, remanding for the trial court to reduce the judgment by $5,886.97.

 




INVERSE CONDEMNATION - NORTH CAROLINA

Beroth Oil Co. v. North Carolina Dept. of Transp.

Supreme Court of North Carolina - April 11, 2014 - S.E.2d - 2014 WL 1477931

Landowners brought action against North Carolina Department of Transportation (NCDOT), alleging inverse condemnation and seeking declaratory relief after NCDOT identified transportation corridors for the construction of a highway project known as the Northern Beltway.  The Superior Court denied landowners’ motion for class certification. Landowners appealed. The Court of Appeals affirmed. Landowners petitioned for discretionary review.

The Supreme Court of North Carolina  held that:

  • As a matter of first impression, findings of fact in a class-certification order are binding on appeal if supported by competent evidence;
  • As a matter of first impression, conclusions of law in a class-certification order are reviewed de novo;
  • Unique nature of parcels of land combined with diversity of proposed class precluded trial court from analyzing merits of claims when determining issue of class certification; and
  • Individual issues predominated over common issues, and thus certification of class was unwarranted.

Unique nature of parcels of land combined with diversity of proposed class precluded trial court from analyzing merits of landowners’ inverse-condemnation claims against NCDOT when determining issue of class certification.

Individual issues predominated over common issues regarding landowners’ inverse-condemnation claims against NCDOT, and thus certification of class was unwarranted.  Proposed class included over 800 landowners, not all of the landowners had same property interests and expectations, and each individual parcel was uniquely affected by NCDOT’s actions.

 




LAND USE - PENNSYLVANIA

ION Geophysical Corp. v. Hempfield Tp.

United States District Court, W.D. Pennsylvania - April 10, 2014 - Slip Copy - 2014 WL 1405397

ION Geophysical Corporation brought a Declaratory Judgment action against Hempfield Township, seeking permission to conduct seismic testing in Hempfield Township and prohibiting the Township from interfering with ION’s operations in conducting seismic testing in connection with natural gas exploration and extraction.

The basic issue was whether a township can prohibit seismic testing on a township road.

The District Court granted ION’s motion for a preliminary injunction, concluding that ION had shown a reasonable probability that it would succeed on the merits on its claim that the Township’s conduct violates ION’s substantive and procedural due process rights and ION’s equal protection rights under the United States Constitution.

“Had the Township entered into a Seismic Agreement with ION, such an action would be an implicit approval of seismic testing on Township roads. Any agreement entered into would then be the result of a reasoned and informed negotiation in which both sides’ interests were taken into account and addressed. Similarly, if the Township had passed an ordinance with regard to seismic testing, then the ordinance could not be vague, arbitrary, or unreasonable. Moreover, any ordinance purporting to regulate seismic testing would have to be in compliance with the preemption provision of Pennsylvania’s oil and gas law as set forth in Title 58 of the Pennsylvania Consolidated Statutes.”

“We agree with ION that the Township’s ban on seismic testing on its roads is an attempt to regulate seismic testing by omission, in the absence of any ordinance regulating seismic testing. By refusing to pass a relevant ordinance or otherwise engage with ION, the Township’s conduct is unreasonable and arbitrary and deprives ION of any avenue to seek accommodation or review of the Township’s ‘regulation by inaction.'”

 




BONDS - TEXAS

National Public Finance Guarantee Corp. v. Harris County-Houston Sports Authority

Court of Appeals of Texas, Houston (1st Dist.) - April 15, 2014 - S.W.3d - 2014 WL 1464654

In 1997, Harris County and the City of Houston created the Sports Authority pursuant to Chapter 335 of the Local Government Code. Since its creation, the Sports Authority has issued several series of bonds pursuant to a written Indenture of Trust to finance the construction of sports venues in Harris County.

This dispute primarily concerned the Series 2001 bonds that were used to fund the construction of Reliant Stadium. The Convention Corporation is a local government entity created to serve as the landlord of Reliant Stadium.

On several occasions since the issuance of the bonds, the revenues raised by the Sports Authority were insufficient to make the minimum principal and interest payments due on the bonds. To cover these shortfalls, the Sports Authority made claims on the financial guaranty insurance policies issued by National Public Finance Guarantee Corporation and MBIA Insurance Corporation (collectively, “National”) as provided for in the Reimbursement Agreements.

National contended that these claims impermissibly reduced the reserve fund provided for in the Indenture that is intended to secure the bond obligations. It also argued that, because the Sports Authority was authorized by statute to impose an admission tax up to 10% of ticket price and parking tax up to $3 per vehicle, the Sports Authority was required by the Indenture to raise admission and parking taxes at Reliant Stadium to legislative maximums in order to cover the shortfalls.  The Sports Authority refused to raise these taxes on the grounds that the Funding Agreement capped these taxes at $2 per ticket and $1 per car, that any additional revenue raised by these measures was required to be rebated to the Texans and the Rodeo under the terms of the Leases and the Funding Agreement and would therefore never be available to service bond obligations, and that it was not authorized to raise these taxes without voter approval.

On January 2013, National sued the Sports Authority, claiming that it had breached the Indenture by refusing to impose admissions and parking taxes at the legislative maximum. National also asserted other breaches by the Sports Authority and a claim for reimbursement. In addition, National requested a declaratory judgment against the Sports Authority, the Convention Corporation, the Texans, and the Rodeo, that the Indenture requires the Sports Authority to impose admissions taxes and parking taxes up to their legislative maximum, and that the provisions of the Leases and the Funding Agreement should be modified and interpreted to permit the incremental revenue generated by these increases to be paid to National.

The Authority and the Convention Corporation filed pleas to the jurisdiction, asserting that they were governmental entities and, accordingly, immune from suit. In response, National asserted that both the Sports Authority and the Convention Corporation had waived their immunity to suit by entering into the agreements related to the bond issuance.  The trial court granted the plea.

National contended that the trial court erred in granting the Sports Authority’s plea to the jurisdiction because (1) the 2007 Act amending Government Code chapter 1371 waived the Sports Authority’s immunity by ratifying the waiver of immunity in the Funding Agreement that was incorporated into the other deal documents, (2) Texas Local Government Code section 271.152 waived the Sports Authority’s immunity because all of the agreements that the Sports Authority entered into related to the bonds were contracts for services, and (3) the Sports Authority was not entitled to immunity because it issued the bonds in its proprietary, rather than governmental, capacity. In its fourth issue, National contended that the trial court erred in granting the Convention Corporation’s plea because Texas Local Government Code section 271.152 operates to waive the Convention Corporation’s immunity in this case.

The Court of Appeals reversed the trial court’s grant of the Sports Authority’s plea, holding that the 2007 Act amending Chapter 1371 of the Government Code waived the Sport Authority’s immunity.

The Court of Appeals affirmed the trial court’s grant of the Convention Corporation’s plea, holding that Texas Local Government Code section 271.152  did not waive the Convention Corporation’s immunity because a section 271.152 waiver covers only breach of contract claims and National had asserted no breach of contract claims against the Convention Corporation.

 

 

 




ZONING - VIRGINIA

Lamar Co., LLC v. City of Richmond

Supreme Court of Virginia - April 17, 2014 - S.E.2d - 2014 WL 1499592

City brought enforcement action against property owner and property lessee seeking lowering of lessees’s billboard located on property to a conforming height. Property owner and lessee sought declaratory judgment and city filed demurrers. The Circuit Court sustained the demurrers. Property owner and lessee appealed.

The Supreme Court of Virginia held that zoning statute prohibiting local governments from removing nonconforming uses on property for which taxes had been paid for at least 15 years, based solely on a property’s nonconforming status, was a restrictive statute limiting municipal power rather than a permissive enabling statute.




ZONING - VIRGINIA

Lamar Co., LLC v. City of Richmond

Supreme Court of Virginia - April 17, 2014 - S.E.2d - 2014 WL 1499584

Property owner and property lessee sought variance to allow lessee’s billboard on property to remain at its existing height.  The Circuit Court upheld the zoning board’s denial of the variance. The lessee appealed.

The Supreme Court of Virginia held that the proper standard of review for denial of a variance is whether the board’s decision was contrary to law or an abuse of discretion, rather than whether the decision was fairly debatable.

The “fairly debatable” standard is the standard of review that a court applies when a governing body acts in a legislative capacity, such as when it adopts a zoning ordinance or grants a special use permit; it is not the proper standard of review to apply when considering a board of zoning appeals’ decision to deny a request for a variance.




BONDS - VIRGINIA

U.S. ex. rel. Prince v. Virginia Resources Authority

United States District Court, W.D. Virginia, Harrisonburg Division - April 15, 2014 - Slip Copy - 2014 WL 1463786

Although short on details, this case appears to be the final phase of a long-running crusade by Mr. Prince to challenge the funding of public projects by or behalf of Shenandoah County.

After filing, and losing, four state court suits against the Virginia Resources Authority (VRA) challenging the legality of certain bonds issued under the Build America Bonds (BAB) program, Prince brought this action in federal court alleging that VRA and others violated the False Claims Act (FCA) by knowingly presenting, or causing to be presented, a false or fraudulent claim for payment or approval related to federal subsidies and tax exempt status for certain bonds through the BAB program.  Prince asserted that the bonds were issued in violation of Article VII of the Virginia Constitution and that the defendants falsely claimed that the bonds were legally issued in the course of participating in the BAB program.

The District Court held that the Rooker-Feldman doctrine was inapplicable to this case, but that the matter was governed by Virginia preclusion law. Because the critical legal issue—the legality of the bonds issued by VRA and others—had already been decided in previous litigation between Prince and VRA, Prince’s claims were barred by issue preclusion, also known as collateral estoppel.

Prince had named four other defendants: the Shenandoah County Board of Supervisors, U.S. Bank National Association, Suntrust Bank, and SunTrust Equipment Finance & Leasing Corporation. None of these defendants, however, had been served.

The court took the unusual step of stopping any further actions in its tracks.  “Finally, nothing but dismissal with prejudice will prevent the harm posed by re-litigating of legal issues that have already been decided. In light of the foregoing, the court finds that it is appropriate to invoke its inherent authority to dismiss with prejudice for lack of prosecution.”

“In sum, Prince has had ample opportunity to litigate the legal issues underlying this case. His attempt to litigate against VRA yet again in this federal forum is barred by issue preclusion. Likewise, the court will not allow Prince yet another bit at the apple by finally serving the remaining defendants, or by filing a new a suit against them making the same claims. Prince cannot use a tactic of delayed service as a means for further re-litigation. The court will accordingly dismiss VRA as a defendant and dismiss the remainder of the case with prejudice for failure to prosecute.”




ZONING - ALABAMA

Brown v. Jefferson

Court of Civil Appeals of Alabama - April 4, 2014 - So.3d - 2014 WL 1328337

 Adjoining neighbor appealed from decision of municipal board of adjustment granting dance studio operator a variance that allowed a reduction in number of required parking spaces for studio’s business. The Circuit Court granted the variance, subject to conditions. Studio owner appealed.

The Court of Civil Appeals held that:

  • Neighbor had standing as “party aggrieved” to challenge board of adjustment’s decision;
  • Trial court was not without authority to attach conditions to granting variance;
  • Stated condition that studio use a shuttle bus for transporting students did not constitute an impermissible injunction; and
  • The condition was not unreasonable, arbitrary, or oppressive means to address traffic congestion.

 




EMINENT DOMAIN - ARKANSAS

GSS, LLC v. CenterPoint Energy Gas Transmission Co.

Supreme Court of Arkansas - April 3, 2014 - S.W.3d - 2014 Ark. 144

Gas pipeline company petitioned to acquire property by eminent domain to allow construction of pipeline, and property owner counterclaimed for unlawful taking, violation of the Arkansas Civil Rights Act, trespass, and outrage.  The Circuit Court entered judgment for property owner in the amount of $64,000 as just compensation. Property owner appealed.

The Supreme Court of Arkansas held that:

  • Circuit Court did not abuse its discretion in excluding evidence of an appraisal of a nearby tract of land for purposes of showing comparable sales;
  • The ‘quick take’ state statutory procedures used by gas pipeline company to enter upon property owner’s land and proceed with pipeline construction were not preempted by the Natural Gas Act;
  • Summary judgment evidence was sufficient to demonstrate that pipeline company negotiated with property owner in good faith as required by the Natural Gas Act; and
  • Pipeline company did not violate property owner’s due process rights and its rights under the Arkansas Civil Rights Act.

The “quick take” state statutory procedures used by gas pipeline company to enter upon property owner’s land and proceed with pipeline construction were not preempted by the Natural Gas Act.  The Natural Gas Act contained no language to indicate Congress’s intention to preempt the state statute, but instead specifically contemplated the use of state condemnation procedure in proceedings under the federal statute, and pipeline company’s petition for condemnation and a declaration of taking had already been granted after the estimated amount of just compensation had been deposited into the registry of the court.

 




MUNICIPAL ORDINANCE - CALIFORNIA

1300 N. Curson Investors, LLC v. Drumea

Court of Appeal, Second District, Division 8, California - April 4, 2014 - Cal.Rptr.3d - 2014 WL 1338659

Landlord brought action against tenants for declaratory relief, ejectment, and damages. The Superior Court denied summary judgment for landlord and entered stipulated judgment for tenants. Landlord appealed.

The Court of Appeal held that landlord properly imposed cumulative rent increases on tenant for years when tenant was resident manager.

Under rent stabilization ordinance providing that if a “resident manager was already a tenant in the unit before being appointed resident manager, the rent charged to the resident manager upon termination of managerial services shall not exceed the rent the tenant had already been paying plus annual adjustments,” a landlord was authorized to charge a former manager tenant with all of the annual adjustments authorized under the ordinance for the years when tenant lived in her apartment rent-free in exchange for acting as resident manager, even though the building’s former landlords did not serve tenant with annual registration statements and notices of rent increases during the time that tenant did not pay rent, and notwithstanding ordinance providing that a landlord may not “demand or accept rent” without first giving each tenant a copy of the annual registration statements and notices of rent increases.

Under rent stabilization ordinance providing that when a resident manager pays partial rent “only the partial rent payments shall be subject to the annual adjustments authorized,” it logically follows from the requirement that the landlord must give notice of increases in partial rent payments that the landlord has no obligation to give notice of what the increase would have been if the manager were paying the full rental value of the unit.

 




TAX - CALIFORNIA

Sipple v. City of Hayward

Court of Appeal, Second District, Division 2, California - April 8, 2014 - Cal.Rptr.3d - 2014 WL 1371796

For a number of years, individuals throughout California were improperly charged taxes for internet access by their internet service provider, New Cingular Wireless PCS LLC (New Cingular), prompting various customers to file putative class action lawsuits.  The lawsuits eventually settled, with New Cingular agreeing to seek refunds of the taxes from the cities and counties to which the taxes were remitted. After refund claims were denied, New Cingular brought this action against the cities and counties. The Superior Court sustained demurrer without leave to amend. Provider appealed.

The Court of Appeal held that:

  • Local “refund first” ordinances were preempted by Government Claims Act;
  • Provider had standing to present claims to cities and counties for tax refunds on behalf of provider’s customers; and
  • Provider had standing to file suit for tax refunds on behalf of provider’s customers.

To the extent that local “refund first” ordinances prohibiting service suppliers from filing tax refund claims on behalf of their customers without first refunding disputed taxes from their own funds to the customers established a precondition to filing a claim, the ordinances were preempted by the Government Claims Act.

 




ZONING - CONNECTICUT

Reardon v. Zoning Bd. of Appeals of Town of Darien

Supreme Court of Connecticut - April 8, 2014 - A.3d - 311 Conn. 356

Landowner sent letter to town zoning enforcement officer, challenging the legality of zoning and building permits previously issued to neighboring landowner, and, when officer failed to respond, landowner filed an application for appeal to the town zoning board of appeals. The board dismissed landowner’s application to appeal on grounds of untimeliness and for lack of a “decision” from which an appeal could lie. Landowner sought judicial review. The Superior Court dismissed appeal. Landowner appealed.

The Supreme Court of Connecticut held that:

  • Landowner’s letter to town zoning enforcement officer challenging the legality of zoning and building permits previously issued to neighboring landowner, and zoning enforcement officer’s lack of response to such letter, did not give rise to a “decision” from which landowner had a right of appeal to the town zoning board of appeals, and
  • Town zoning regulation prohibiting zoning agencies or officials from approving permits for construction or land use that would violate any law, and deeming any permits so issued to be null and void, did not impose a duty upon town zoning enforcement official to respond to landowner’s letter.

 




SCHOOLS - IDAHO

Sanders v. Board of Trustees of Mountain Home School Dist. No. 193

Supreme Court of Idaho, Boise, February 2014 Term - April 7, 2014 - P.3d - 2014 WL 1349418

Employee brought action against board of trustees of school district alleging that board breached its contract with employee by hiring a candidate less qualified than her for a teaching position. The District Court entered judgment on jury verdict in favor of board, but denied board’s request for award of attorney fees. Board appealed.

The Supreme Court of Idaho held that:

  • Statute governing attorney fee award in action concerning state agency or political subdivision was not exclusive, and
  • On issue of first impression, board was not entitled to award of statutory discretionary arbitration costs.

Statute governing award of attorney fees in certain instances in actions involving state agency or political subdivision was not the exclusive source of attorney fees when a prevailing party also requested fees pursuant to statute governing award of attorney fees in action to recover on contract.  Phrase in statute governing fees in action involving agency or political subdivision “unless otherwise provided by statute” meant that if another statute expressly provided for the awarding of attorney fees against a state agency or a political subdivision, attorney fees could be awarded under that statute also, and statute governing award in contract actions expressly applied to state agencies and political subdivisions.

Arbitration was non-binding, prior to civil suit, and costs of arbitration were limited to pre-litigation under the contract at issue, and therefore board of trustees of school district was not entitled to statutory discretionary award of arbitration costs in breach of contract action by employee related to employment contract.  Statute governing award of costs gave courts authority to award costs “in a civil trial or procedure.”

 




ANNEXATION - IDAHO

In re Old Cutters, Inc.

United States District Court, D. Idaho - March 31, 2014 - Not Reported in F.Supp.2d - 2014 WL 1319854

The City of Hailey appealed the Memorandum Decision, Order and Judgment entered by the United States Bankruptcy Court for the District of Idaho.  Hailey argued that the Bankruptcy Court erred when it invalidated the annexation fees and community housing provisions imposed by Hailey in connection with the annexation of property owned by the chapter 11 debtor, Old Cutters.

Mountain West Bank, Old Cutters’ principal creditor, agreed with the Bankruptcy Court’s ruling with respect to the annexation fees and community housing provisions, but appealed the Court’s finding that the description of the real property in the relevant annexation agreement satisfied the requirements of the Idaho statute of frauds.

The Court concluded that the description of “Market Rate Lots” was sufficient in the Annexation Agreement and exhibits referenced in the agreement to satisfy the statute of frauds. The Court accordingly affirms the Bankruptcy Court’s finding that Hailey’s lien on the Property was valid under the Idaho statutes.  However, because the Court also affirmed the Bankruptcy Court’s holding that Hailey does not hold an enforceable claim to collect any further amounts from Old Cutters under the Annexation Agreement, Hailey’s lien is ultimately unenforceable.

 




LIABILITY - KENTUCKY

Jessie v. Dixon

United States District Court, W.D. Kentucky, at Bowling Green - March 31, 2014 - 2014 WL 1320002

Plaintiff was a convicted prisoner incarcerated at the Hart County Detention Center (HCDC). He sued HCDC Officers Shelby Dixon and James Gossett in their individual and official capacities. Plaintiff alleged that on several occasions Defendants Dixon and Gossett had threatened him with mace and taser guns if he did not stop asking to go to church. He also alleged that he had been denied the right to go to church or have a Bible, although other prisoners are allowed. He stated that Defendant Dixon had called him a “honky and cracker and spit into my food.”

The court held that, as nothing in the complaint demonstrated any purported wrongdoing occurring as a result of a policy or custom implemented or endorsed by Hart County, the complaint failed to establish a basis of liability against the municipality, thus it failed to state a cognizable § 1983 official-capacity claim.

However, the First Amendment retaliation and free-exercise claims and the Eighth Amendment safety/protection claims were allowed to proceed against Defendants Dixon and Gossett in their individual capacities for damages and injunctive relief.

 






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