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The Unwavering Un-waivable Implied Warranty of Workmanship and Habitability in Arizona

By: Robert A. Henry and Emily R. Parker The Arizona Supreme Court recently issued an opinion on the scope of the implied warranty of workmanship and habitability (the “implied warranty”) in contracts between homebuyers and builder/vendors that provides clear guidance of the law in this area, specifically on the issue of whether the implied warranty […]

BH
Partner

The Arizona Supreme Court Confirms that Judgment Liens Attach to Homestead Property

By: Ben Reeves The Arizona Supreme Court recently clarified that a judgment lien does, in fact, attach to the proceeds of the sale of a homestead property. See In re McLauchlan. In sum, if the sale of a home produces more than the homestead exemption amount, then a judgment creditor can collect from those excess […]

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BR
Partner

Can I Record a Lis Pendens in Arizona if the Lawsuit is filed Another Jurisdiction?

By: Ben Reeves Recent research I did on a case led me to the conclusion that Arizona law recognizes foreign litigation (i.e., a lawsuit filed outside of Arizona) as a justification for the recording of a lis pendens against real property located within Arizona. See TWE Retirement Fund Trust v. Ream, 198 Ariz. 268 (Ct. […]

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BR
Partner

HOA Foreclosure Excess Sale Proceeds Go to Owner

By: Ben Reeves Over the last few years, the Arizona Court of Appeals wrestled with the question of who should receive the excess proceeds from a foreclosure sale.  We’ve blogged about some these past unreported decisions here and here.  Those decisions, somewhat inexplicably, required excess sale proceeds to be paid to senior creditors.  As we […]

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BR
Partner

The Colorado Supreme Court affirms Woodbridge II’s “Adverse Use” Distinction

By: Luke Mecklenburg Last year, I posted regarding the Colorado Court of Appeals’ decision in Woodbridge II, which concluded that the “adverse use” element for prescriptive easement claims only requires the claimant to “show a nonpermissive or otherwise unauthorized use of property that interfered with the owner’s property interests.” Viento Blanco, LLC, 2020 COA 34 […]

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LM
Former Associate

Equine Activity Liability Releases: The Arizona Court of Appeals Finds “Release” of Trail Ride Operator Doesn’t Block Negligence Claim for Participant Riding Injury

By: Amanda Z. Weaver For the first time in nearly twenty years, the Arizona Court of Appeals last week weighed in on Arizona’s equine activity liability statute, finding that a form signed by participants before a trail ride did not qualify as a “release” under the statute, and concluding that participants’ claims of negligence against […]

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The Show Must Go On: Shuttered Venues Operators Grant Provides Lifeline for Live Music and Theater Venues

By: David Rao Although it’s been a tough twelve months for many live music venues, movie theaters, and performing arts organizations, help may finally be around the corner. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act was signed into law, creating a $15 billion fund for grants to […]

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DR
Former Associate

Woodbridge II and the Nuanced Meaning of “Adverse Use” in Hostile Property Rights Cases in Colorado

Earlier this year, the Colorado Court of Appeals issued an opinion addressing at length “whether the requirement that the use be ‘adverse’ in the adverse possession context is coextensive with adverse use in the prescriptive easement context.”  See Woodbridge Condo. Ass’n, Inc. v. Lo Viento Blanco, LLC, 2020 COA 34 (Woodbridge II), ¶ 2, cert. […]

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LM
Former Associate

A Landlord’s Guide to the Center for Disease Control’s Eviction Moratorium

By Colton Addy The Center for Disease Control and Prevention (the “CDC”) and the Department of Health and Human Services (the “HHS”) has issued an order to temporarily halt a landlord’s right to evict certain residential tenants to prevent the further spread of COVID-19 (the “CDC Order”). The CDC Order is effective through December 31, […]

| 5 min read
CA
Former Associate

Arizona, Meet RON!

By: Lauren Podgorski Arizona passed Senate Bill 1030, which authorizes Arizona notaries to perform remote online notarizations, known as “RON.” RON becomes effective as of June 30, 2020.  What is Remote Online Notarization (RON)? Currently, a person must “personally appear before or be in the presence of” a notary public in order to have her […]

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Vacation Rentals: Liability of the Owner for Injury Suffered by the Renter

By:  Kevin J. Parker With the explosion of the “private” rental business wherein residential property owners rent their house or condo on a short-term basis to third-parties, certain legal issues have arisen with regard to the duties owed by the property owner to the renter.  A recent Virginia Supreme Court case, Haynes-Garrett v. Dunn, 818 […]

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KP
Former Counsel

“Bee” Careful: Unique Considerations When Negotiating a Bee Storage Lease Agreement

By: Colton Addy As demand for commercial bees used to pollinate crops (such as almond trees) has grown, so has the demand for facilities to store bees.  Entering a lease agreement for the storage of live bees presents some unique issues the parties need to consider when negotiating the lease agreement. Don’t Bee Short-Sighted:  Bees […]

CA
Former Associate

Court Addresses HOA Attempt to Restrict Short Term Rentals

By:  Kevin J. Parker In a recent case, the Texas Supreme Court addressed an attempt by a homeowners’ association (“HOA”) to restrict short-term rentals based upon recorded Covenants, Conditions, and Restrictions (“CC&Rs”) applicable to a residential subdivision. The property was a single-family home. The homeowner rented the home through websites such as VRBO. The HOA […]

KP
Former Counsel

Condemnation Actions: How Valuable Is Your Evidence of Property Value?

By: Erica Stutman When a government condemns (takes) private property for a public use, the property owner is entitled to receive “just compensation” equal to the property’s market value. Value is typically determined by appraisals, but if the parties cannot agree, a judge or jury will determine the amount in a condemnation lawsuit. The parties […]

ES

Arizona Court Determines Statute of Limitations Applicable to a Claim for Reformation of a Deed of Trust (and a Related Claim for Declaratory Judgment)

By:  Kevin J. Parker In a recent Arizona Court of Appeals case, Deutsche Bank National Trust Co. v. Pheasant Grove LLC, 798 Ariz. Adv. Rep. 15 (August 23, 2018), the Court of Appeals addressed the question of what statute of limitations was applicable to a declaratory judgment claim.  In that case, a bank’s deed of […]

KP
Former Counsel

Cybersecurity on Your Project: Why Not Follow National Security Strategy?

By Rick Erickson In its recent Cybersecurity Strategy, the U.S. Department of Homeland Security (DHS) defined “cyberspace” as “the independent network of information technology infrastructure, including the Internet, telecommunications networks, computers, information and communications systems, and embedded processors and controllers.”  To DHS, protecting cyberspace includes threats against “federal and nonfederal information systems.”  In other words, […]

RE

Not so Fast! How Does Revoking Acceleration of a Note Impact the Statute of Limitations?

By: Ben Reeves Introduction Lenders routinely accelerate notes after a default occurs, calling the entire loan due immediately. Less regularly, a lender may change its mind and unilaterally revoke the acceleration.  Rarely, however, does a lender fail to foreclose on its real property collateral before the statute of limitations expires.  In Andra R. Miller Designs, […]

BR
Partner

Developers Celebrate Arizona’s Opportunity Zones

By: Patrick J. Paul President Trump’s Tax Cuts and Jobs Act passed by Congress in December included a new community development program designed to promote investment in low income urban and rural communities.  These “Opportunity Zones” provide that every Governor may nominate up to 25% of qualifying low-income Census tracts for consideration in the program […]

Specific Performance of an Option Contract to Purchase Real Property is Barred Absent Agreement on All Material Terms

By:  Richard H. Herold On November 14, 2017, the Court of Appeals (Division 1), in Offerman v. Granada, LLC, 2017 WL 5352664, reversed a trial court order directing specific performance of an alleged option to purchase real property, holding that the alleged option was too indefinite to be specifically performed because the parties did not […]

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RH
Former Partner

The Contributors to This Blog Are Pleased to Announce That….

Snell & Wilmer’s Real Estate Litigation Group, which provides the content for The Real Estate Litigation Blog, is pleased to announce that it has been recognized in both the national and metropolitan rankings by U.S. News Media Group and Best Lawyers for the 2018 edition of “Best Law Firms.”  We achieved the following rankings:  •            National […]

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BR
Partner

Who says you can’t choose between liquidated damages or actual damages?

In Colorado, courts enforce liquidated damages provisions if three elements are satisfied: (1) the parties intended to liquidate damages; (2) the amount of liquidated damages was a reasonable estimate of the presumed actual damages caused by a breach; and (3) at the time of contracting, it was difficult to ascertain the amount of actual damages […]

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KW

Arizona Court of Appeals Awards Attorneys’ Fees in Quiet-Title Action

In Arizona, a party successfully quieting title to property may recover its attorneys’ fees if it satisfies three requirements: (1) the party requests a quitclaim deed from the party adversely claiming title twenty days before bringing the quiet-title action; (2) the party tenders five dollars for the execution and delivery of the deed; and (3) […]

| 3 min read
KW

Pacing in Construction Scheduling Disputes

On a high level, construction delay litigation involves sorting out the impacts to the critical project path and determining which party is responsible for those impacts. One of the more difficult elements of this process is determining whether a delay would have occurred regardless of one party’s critical path impact due to a separate, independent […]

| 4 min read
LM
Former Associate

Nevada Supreme Court Clarifies the Litigation Waiver of the One-Action Rule

By Bob L. Olson  Nevada has a one-action rule which, with limited exceptions, requires a creditor seeking to recover a debt secured by real property to proceed against the security first prior to seeking recovery from the debtor personally. In the event that a law suit is filed in violation of the one-action rule, final […]

BO

RICO Madness: The Nuisance of Owning and Operating a Marijuana Facility

By:  Bob Henry On June 7, 2017, the Tenth Circuit Court of Appeals issued its opinion in Safe Streets Alliance, et al. v. Hickenlooper, et al., (No. 16-1048), an opinion that could open the doors to property use litigation involving marijuana facilities.   One of the issues in Safe Streets was whether a property owner can […]

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BR
Partner

Orchestrating Bias: Arbitrator’s Undisclosed Membership in Philharmonic Group with Pauly Shore’s Attorney Not Grounds to Reverse Award in Real Estate Dispute

By:  Lyndsey Torp The California court of appeal recently issued an unpublished decision in Knispel v. Shore, 2017 WL 2492535, affirming a judgment confirming an arbitration award in a real estate dispute involving Pauly Shore.  The court of appeal held that the arbitrator’s failure to disclose her membership in the Los Angeles Lawyers Philharmonic Group […]

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LT
Former Senior Attorney

Colorado House Bill 1279 stalls over 120-day unit owner election period

With the session more than halfway through, the Colorado Legislature’s 2017 attempts at meaningful construction defect reform may fail again.  This year, the Legislature did not attempt a single-bill construction defect overhaul like those that have failed over the last half-decade.  Rather, it has sought to enact reforms on a piecemeal basis, with several smaller […]

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LM
Former Associate

Utah Becomes First State to Enact the Uniform Commercial Real Estate Receivership Act

By:  David Leta On March 25, Utah became the first state to enact the Uniform Commercial Real Estate Receivership Act (“UCRERA”) which was drafted by the National Conference of Commissioners on Uniform State Laws (the “Conference”) and adopted by the Conference at its annual meeting in July 2015. The Utah Uniform Commercial Real Estate Receivership […]

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BR
Partner

California Supreme Court Upholds Precondemnation Procedures

By Patrick J. Paul On July 21, 2016, the California Supreme Court in Property Reserve v. Superior Court upheld the state’s precondemnation entry and testing statutes provided they were reformed to allow impacted property owners the ability to have a jury trial to determine damages associated with such entry and testing. The California Department of […]

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Hold that paintbrush! A glimpse into design-control in planned communities

By: Erica Stutman You are choosing a new paint color for the outside of your house, and you think, “Since all the other houses are beige, I’ll do mine purple.” Not so fast – you better check your community’s governing documents before brushing on that first coat of paint. If you live in a planned […]

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ES

Special Rules for Eviction Actions

By:  Kevin Parker In a recent case, the Arizona Court of Appeals addressed the special rules of procedure for eviction actions. The eviction rules became effective January 1, 2009.  In Sotomayor v. Sotomayor-Munoz, 735 Ariz. Adv. Rep. 28 (March 28, 2016), the court addressed the question of whether the evicted tenant had timely appealed.  The […]

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KP
Former Counsel

Nevada Supreme Court Holds that Foreclosure Of HOA Lien Extinguishes Equal Priority HOA Lien.

By: Bob L. Olson In Nevada’s master-planned communities it is common for one home to be in multiple homeowners’ associations.  In such cases there is generally a master association for the master-planned community and then sub-associations for specific developments within the master-planned community.  The liens of the master association and the sub-association have equal priority […]

BO

School district’s condemnation of a private road passes the test

By: Erica Stutman   The power of eminent domain allows a government or quasi-governmental entity to condemn (take) private property for a public use upon a showing of necessity.  In exchange, the property owner must receive “just compensation” equal to the property’s fair market value, and may be entitled to additional damages, such as […]

ES

Are Short-Term Vacation Rentals Legal?

By: Ben Reeves The recent explosion in popularity of short-term vacation rentals through services such as Airbnb.com and VRBO.com not only provides terrifying horror stories about problem renters (google it if you’re interested), but also raises serious questions about the legality of the practice. Many cities are currently struggling with this very issue. Opponents to […]

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BR
Partner

The FDIC Reigns “Supreme” in Nevada

By: Nathan Kanute For several years, Nevada Courts have considered a myriad of issues related to how Nevada law applies to loans made by banks that are later take over by the FDIC. In the past eight months, the Nevada Supreme Court has addressed two of those issues. See Munoz v. Branch Banking and Trust […]

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NK

Successful Laches Defense Becoming Commonplace in Colorado

By: Neal McConomy Boiler plate language in responsive pleadings often includes “Plaintiff’s claims are barred by the doctrine of laches” (or “The doctrine of laches bars Plaintiff’s claims” if you prefer the active voice).  However, litigation of a laches defense is fairly rare, and a defendant successfully arguing a laches defense is something of a […]

NM
Former Associate

Injunctive Relief for Building Encroachment. Do I Have to Move the House?

By Kevin Parker When a land owner mistakenly builds a house or other building or structure that encroaches on a neighbor’s property, what is the remedy?  Does the offending land owner have to physically remove the structure from the neighbor’s property?   Is the harmed neighbor entitled to a mandatory injunction against continuing trespass?  Can the offending […]

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KP
Former Counsel

Inverse Condemnation: When is Your Claim Precluded by the Arizona Statute of Limitations?

By:  Richard Herold An inverse condemnation of a landowner’s property can occur when a governmental entity: (1) physically takes the property without compensation; or (2) passes a new law that has a serious impact on the value and/or utility of the property.  At times, the taking may be obvious, for example, if the governmental entity […]

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RH
Former Partner

Beneath the Surface: Entek GRB, LLC v. Stull Ranches, LLC and the Continuing Battle Between Surface Owners and Subsurface Owners

By: Neal McConomy On August 14, 2014, the Tenth Circuit vacated and remanded the lower court’s decision regarding a dispute between a surface owner’s and a subsurface owner’s respective rights to access and enjoy land and property rights.  Entek GRB, LLC v. Stull Ranches, LLC, 763 F.3d 1252 (10th Cir. 2014).  The decision reached in […]

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NM
Former Associate

Landlords Need Not Deny Puppy Love

By: Erica Stutman Dog-lovers will be happy to know they may rent property to a tenant and the tenant’s dog without necessarily being subject to strict liability if man’s best friend turns out to be not-so-friendly after all.  In Spirlong v. Browne, the Arizona Court of Appeals decided that the strict liability for injuries or […]

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ES

Arizona Chamber of Commerce Forms Policy Group for Real Estate and Community Development Issues

By:  Bob Henry The Arizona Chamber of Commerce & Industry has formed a new policy committee for “Real Estate and Community Development Issues.”  The Arizona Chamber’s policy committees—now 16 different committees that cover policy areas ranging from “Budget & Government Reform” to “Workplace, Workers Compensation and Insurance”—are actively involved in supporting and opposing legislation on issues […]

BH
Partner

Social Media Concerns Potentially Affecting Arizona’s Real Estate Industry

By:  Jefferson R. Hayden  http://www.swlaw.com/attorneys/jefferson_hayden A growing number of governmental authorities are cracking down on the use of social media with regard to commercial transactions.  In Arizona, for example, legislation was proposed restricting an employer’s right to access social media account information of its employees.  Though SB 1411 was not passed in 2013, the Arizona […]

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Arizona Supreme Court to Contractor: Sorry But Equitable Subrogation of a Bank’s Later Deed of Trust Trumps Earlier Mechanics’ Lien Rights

By Rick Erickson http://www.swlaw.com/attorneys/rick_erickson The smoke has finally cleared in a hard and long-fought battle between a bank and contractor both claiming priority to foreclose millions of dollars on a Phoenix condominium project. The project, well-known as Summit at Copper Square in central Phoenix (“Summit”), went broke in 2007. The foreclosure case began in 2008, […]

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RE

Legal Pot Leads to Possible Nuisance Suits, but Viability is Unlikely

By: Neal McConomy Almost four months into Colorado’s legalization of recreational marijuana for adults aged twenty-one and over, the weather is warming, windows are opening, and outdoor spaces are getting more use.  All the while, a segment of the Colorado population, especially in the City and County of Denver (“Denver”), is exercising its new-found legal […]

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NM
Former Associate

Brandt Revocable Trust v. U.S. – the United States’ theory of land ownership derailed

By: Erica Stutman In Brandt Revocable Trust v. U.S., the United States Supreme Court held that abandoned railway rights-of-way that had been granted to railroad companies under the General Railroad Right-of-Way Act of 1875 left underlying landowners with property free of the rights-of-way, and the United States government has no interest in the abandoned land. […]

ES

Lender’s Title Insurance: When Should Courts Measure the Fair Market Value of Property Affected by a Title Defect?*

By:  Andy Stone Title insurance is designed to pay for damages caused by any defects to title that the title company should have discovered but did not.  Lender’s title insurance protects lenders who lose money due to a title defect, which is distinguished from an owner’s policy that protects the property owners.  How to calculate […]

AS
Former Associate

Bona Fide Tenancies for a Term Remain Protected

By:  Julie E. Maurer A recent California Court of Appeals decision determined that the federal Protecting Tenants Against Foreclosure Act (“PTFA”) impliedly overrides state laws that provide less protection to tenants, but expressly allows states to retain the authority to enact greater protection.  The PTFA was enacted by Congress in May 2009 (Pub.L. 111-22, Div. […]

JM
Former Counsel

Frustration of Purpose: A Frustrating Doctrine

By: Erica Stutman Next Gen Capital, LLC v. Consumer Lending Associates, LLC illustrates the difficulty a tenant faces when trying to avoid liability for breaching a lease based on the “frustration of purpose” defense. No. 1 CA-CV 12-0624 (Ariz. Ct. App. Dec. 19, 2013).  In 2007, Consumer Lending Associates (“CLA”) signed a five-year lease, which […]

ES

A Non-Purchase Money Second Deed of Trust is Not Protected by Arizona’s Anti-deficiency Statute

By:  Ben Reeves & Julie Maurer Arizona anti-deficiency laws do not prohibit a non-purchase money lender from suing on its note after foreclosure by a senior lender.  In Wells Fargo Bank, N.A. v. Brewer, No. 1CA-CV 12-0383 (Ariz. Ct. App. May 21, 2013 unpublished), the Arizona Court of Appeals held that Arizona’s anti-deficiency statute, A.R.S. […]

BR
Partner

Understanding zoning nonconforming uses is no walk in the park, but a mobile-home park may be treated as a unified use.

By:  Erica Stutman When Arizona municipalities adopt new zoning ordinances and regulations, existing property owners have the right to continue using their property for the use in place when the new ordinance or regulation becomes effective, including the right to make reasonable repairs and alterations.  See A.R.S. § 9-462.02(A).   This right to continue the “legal […]

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ES

Owners of Multifamily Housing Beware

By:  Julie Maurer Owners and developers of multifamily housing beware—you may be held responsible for your architect’s oversight. A growing number of state and federal courts are in universal agreement that owners and developers cannot sue their architects for designs that fail to meet accessibility requirements of the Fair Housing Act (FHA) and Americans with […]

| 2 min read
JM
Former Counsel

Moving From Quiet Title to Wrongful Recordation

By: Adam Lang Pretend you own real property in Arizona that you want to sell.  You have a buyer.  You enter into a purchase contract.  But when the buyer runs a title report, she learns that someone else has wrongfully recorded a claim on your property.  The buyer cancels.  You want to hold the individual […]

AL

Introducing the Snell & Wilmer Real Estate Litigation Blog

The Snell & Wilmer Real Estate Litigation Group is proud to announce the launch of its new blog.  After decades of handling commercial disputes and trials involving real estate, the Group was officially formed in 2008.  The firm’s real estate litigation and trial attorneys formed the Group to maximize expertise, efficiency and results for the […]

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BR
Partner