2024 Case Law and Legislation Update

Case Law

Appraisals

Morgan Cnty. Bd. of Equalization v. Indorama Ventures Xylenes & PTA, LLC, 2024 Ala. LEXIS 81 (Mar. 22, 2024)

Circuit court not obligated to abide by Alabama Personal Property Appraisal Manual, because it does not supersede court’s obligation to determine the fair and reasonable value based on all the evidence under Ala. Code § 40-3-25.

Easements

Riley v. Boles, 2024 Ala. LEXIS 51 (Ala., Jan. 12, 2024)

Finding of prescriptive easement reversed where there was evidence of hunters’ use.

Coats v. Ayers, 2024 Ala. LEXIS 132 (Ala., June 14, 2024)

Owners could not seek right-of-way where tract was adjacent to a public road; not required to seek right-of-way where evidence showed permissive use.

Heirship Issues

Washington v. Johnson, 2024 Ala. LEXIS 103 (Apr. 19, 2024)

Insufficient evidence to require partition by sale under the Heirs Act, but error where trial court failed to order partition in kind.

Jurisdiction

Leo v. Mullen, 2024 Ala. LEXIS 49 (Ala., Jan. 12, 2024)

Writ of mandamus directing Jefferson County Circuit Court to transfer action to Walker County Circuit Court was successful where petitioners showed the property they sold in Walker County was the subject matter of the action within the meaning of Ala. R. Civ. P. 82(b)(1)(B).

Skidmore v. Skidmore, 2024 Ala. LEXIS 147 (Aug. 23, 2024)

Supreme Court held that the Marshall County Probate Court lacked jurisdiction to order the sale of real property not owned by decedent at death, adjudicate questions of title to disputed real property, or grant equitable relief.

Landlord/Tenant

Johnson v. Windham, 2024 Ala. Civ. App. LEXIS 117 (Oct. 11, 2024)

Where tenant sought injunctive relief and damages for landlord’s alleged violations of Alabama Uniform Residential Landlord Tenant Act, trial court erred in dismissing action after TRO hearing, as it did not properly adjudicate the damages claim.

Mortgage Issues

Alavest, LLC v. Harris, 2024 Ala. LEXIS 99 (Apr. 12, 2024)

A trial court’s judgment declaring a foreclosure sale void, which was entered in mortgagee’s absence, impeded mortgagee’s ability to protect its interests by defending the validity of the sale. On appeal, the Supreme Court held the original mortgagee was a necessary party that had to be joined, if feasible.

Powers v. Chadwell Homes, LLC, 2024 Ala. LEXIS 161 (Sept. 20, 2024)

Mortgagors held to be “misusing and abusing the judicial system in an effort to delay and deny [mortgagee] possession of the property.”

Littlefield v. Smith, 393 So. 3d 460 (Ala. 2023)

When foreclosure notice requirements may not have been met, making foreclosure sale voidable, fact that defaulting mortgagors did not challenge the sale before it was sold to bona fide purchasers meant the notice claim was extinguished.

Quiet Title

Phx. East Ass’n v. Perdido Dunes Condo., Owners Ass’n, 2024 Ala. LEXIS 88 (Ala., Mar. 29, 2024)

In action to quiet title to 2.5 foot-wide strip between neighboring condo properties, where one party knew about other’s use but did not give permission, prescriptive easement established, and Ala. Code § 35-8A-207(a) does not prohibit prescriptive easements.

Restrictive Covenants

F Fam. South, LLC v. Prop. Owners Ass’n of Ono Island, Inc., 2024 Ala. LEXIS 115 (May 17, 2024)

Legality of 1995 tax sale subject to rule of repose; island impliedly subject to restrictive covenants; covenants governed use of canal system by implication, and canal system was subject to control of property owners association and canal owners association.

Riparian Rights

Key v. Vallely, 2024 U.S. Dist. LEXIS 137341 (S.D. Ala., Aug. 2, 2024)

In dispute between adjacent waterfront owners, where one owner sued for a declaration to establish riparian boundary by adverse possession, the other owner removed the case to federal court asserting diversity jurisdiction. In determining whether the amount in controversy would exceed $75K, district court determined it could not do so absent “speculation and conjecture,” and thus remanded the case.

Rule 54(b) Final Judgments

Davis v. Am. Pride Props., LLC, 2024 Ala. LEXIS 151 (Aug. 30, 2024)

Judgment on ejectment claim was not a final judgment where demand for damages remained pending.

Brewer v. Fairchild, 2024 Ala. LEXIS 164 (Sept. 20, 2024)

Judgment on foreclosure buyer’s ejectment suit not final where there was reservation of jurisdiction for award of additional damages for any waste to the property by holdover tenants.

Slander of Title

JTS Trucking LLC v. Atl. Southern Const., Inc., 2024 Bankr. LEXIS 238 (N.D. Bankr., Feb. 1, 2024)

Debtor entitled to sue for slander of title where neighbor had filed a lis pendens in an underlying lawsuit for in personam trespass.

Zoning

City of Helena v. Pelham Bd. Of Educ., 2024 Ala. LEXIS 144 (Aug. 2, 2024)

City’s zoning ordinance could not be enforced against athletic field project because board of education’s construction and operation of the athletic field constituted a state governmental function (public education), that was exempt from application of the zoning ordinances.

Legislation

Sales of Land

Act 2024-83 (Effective Oct. 1, 2024)

Modifies sections of Sale of Land statutes (Ala. Code §§ 40-10-132 and 40-10-134) pertaining to properties sold to the state (where nobody makes a minimum bid). The act gives the Land Commissioner the authority to sell properties held by the state for at least 5 years via a public online auction. Beginning January 1, 2025, these sales will begin provided certain requirements are met.

Fraudulent Sale/Lease

Act 2024-237 (Effective June 1, 2024.)

Amends Ala. Code §§ 13A-7-7 and 13A-10-102 to establish: crime of fraudulent sale or lease of residential real property; penalties for violations; method for an owner to request removal of an unauthorized person; procedure for law enforcement to remove unauthorized persons from a dwelling in certain circumstances; and, exclusion of certain persons from landlord-tenant actions.

Excess Proceeds

Act 2024-261 (Effective Oct. 1, 2024)

Based on the Tyler v. Hennepin County case, which held that excess proceeds from tax sales are subject to the Takings Clause. Pursuant to Ala. Code § 40-10-28, after a tax sale, an owner has a right to surplus funds and a right to redeem. Amendments to this section required that an owner wishing to redeem surplus funds must first redeem. The Act eliminates the redemption requirement, but requires owners to first execute and record a release and waiver of any interest in the property and their right to redeem.

The Act also extends the time a tax lien holder must wait to foreclose from 3 to 4 years following lien sale. Also, between 30 and 180 days before filing a foreclosure suit, the lien holder must provide specific written notice to the property owner, mortgage holder, tax collector, and anyone reasonably believed to have an interest in the property.

Notaries Public

Act 2024-314 (Effective Oct. 1, 2024)

Adds Ala. Code § 35-20-70.1, providing that individuals who are licensed professionals and their employees who are commissioned notaries public may lawfully perform notarial acts required for their profession. Amends Ala. Code § 35-4-25 to further provide for officers holding
stock in certain corporations.

Tax Lien Auctions and Sales

Act No. 2024-324 (Effective June 1, 2024)

Addresses payment of property taxes following an initial tax lien sale, making the following changes:

  • Tax lien auction will include unpaid taxes, interest, fees, penalties, prior years’ costs, and $45 admin fee.
  • Title report fees for brining foreclosure and q.t. are recoverable.
  • Before obtaining title, tax lien holder has no right to enter property.
  • Time when counties can sell unsold properties at private sales no longer limited to the 45 days following an auction.

Geologic Storage/Pore Space

Act No. 2024-325 (Effective Oct. 1, 2024)

Defines “pore space” in Ala. Code § 9-17-60; provides possessory right to pore space below surface of real property as vested in the surface owners, and can be separately conveyed.

Ad Valorem Taxes

Act No. 2024-344 (Effective Oct. 1, 2024)

Limits the assessed value of certain real property for ad valorem tax purposes, with exceptions.

Alabama Uniform Commercial Real Estate Receivership Act

Act No. 2024-380 (Effective Jan. 1, 2025.)

Establishes unform requirements and the authority of a court-appointed receiver for management of commercial real estate during certain matters pending before the court.

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