Justia Aviation Opinion Summaries

Articles Posted in Real Estate & Property Law
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Air 7, LLC, a Delaware limited liability company, and its owner, the Peter J. Koral Trust, owned a Gulfstream G-550 jet aircraft. Air 7’s headquarters were located at the Camarillo Airport in Ventura County. The owner was a resident of California. The County of Ventura (the “County”) imposed a tax on the aircraft that was permanently removed from California before the tax lien date of January 1 for the tax year 2017. Air 7 sued the County for a refund of the taxes, statutory interest, and penalties the County had imposed. The trial court found the aircraft was not permanently removed from Ventura County on the tax lien date because it had not established situs elsewhere. The trial court entered judgment for the County.   The Second Appellate District reversed. The court explained that the aircraft was removed from California with the intent that removal be permanent, and the aircraft never returned to California during the 2017 tax year. Accordingly, the court concluded the aircraft was not “situated” or “habitually situated” in California. The tax imposed on the aircraft violates California law irrespective of whether the aircraft was situated and taxed in another state. View "Air 7, LLC v. County of Ventura" on Justia Law

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In 1999, the Taylors purchased land near a New Mexico Air Force base to raise calves. The Air Force began flying training missions over the land, sometimes “no more than 20 feet . . . off the deck.” In 2008, the Taylors granted Wind Energy an exclusive five-year option for an easement on the Taylors’ property, for “wind resource evaluation, wind energy development, energy transmission and related wind energy development uses.” In 2012, Air Force employees suggested to Wind Energy that the FAA would not issue a “No Hazard” designation for the air space above the Taylors’ land, which would be “fatal to the construction of planned wind turbines.” Wind Energy exercised its contractual right to terminate the agreement.The Taylors sued, claiming that the Air Force’s informal advice to Wind Energy caused a regulatory taking of their property interest in their contract and that the flyovers effected a physical taking. The Federal Circuit affirmed the dismissal of the complaint. Wind Energy’s termination was not a breach of the agreement so the Taylors had no property right in the continuation of that agreement nor did they have any investment-backed expectations. Any advice given by Air Force employees did not amount to an FAA denial. The Taylors did not provide factual allegations of how the flights “directly, immediately, and substantially interfere” with their quiet enjoyment and use of the land View "Taylor v. United States" on Justia Law

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Plaintiffs leased part of Love Field airport from the City of Dallas and constructed a six-gate airline terminal. Plaintiffs claim that the Wright Amendment Reform Act of 2006 (WARA), 120 Stat. 2011, effected a regulatory taking of their leases and a physical taking of the terminal because the statute codified a private agreement in which Dallas agreed to bar the use of plaintiffs’ gates for commercial air transit and to acquire and demolish plaintiffs’ terminal. The Claims Court found that WARA's enactment constituted a per se regulatory taking of plaintiffs’ leaseholds under Supreme Court precedent, Lucas, and a regulatory taking of the leaseholds under Penn Central, and a physical taking of the terminal. The Federal Circuit reversed. Noting the history of regulation of Love Field and limitations in place before WARA, the court stated there can be no regulatory taking because plaintiffs cannot demonstrate that their ability to use their property for commercial air passenger service pre-WARA had any value. Plaintiffs’ reasonable, investment-backed expectations are limited by the regulatory regime in place when they acquired the leases. Rejecting a claim of physical taking the court reasoned that a requirement that federal funds not be used for removal of plaintiffs’ gates explicitly distances the federal government from Dallas’ intended action. View "Love Terminal Partners, L.P. v. United States" on Justia Law

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In 1996 Brown Field Aviation Ventures leased space at Brown Field Airport from the City of San Diego under a long-term, master lease agreement. Brown Field Aviation Ventures subleased the space to Bearden Aviation, Inc. (Bearden), and Bearden subleased it to Finch Aerospace Corporation (Finch). Finch occupied the space with three airplane hangars. Lancair Corporation (Lancair) later purchased Bearden's leasehold. In 2005 the City amended and restated the master lease. Finch attempted to enter a new lease directly with the City and remove its hangars from Lancair's leasehold; however, Lancair claimed to own and control the hangars. Finch subsequently filed a complaint against Lancair alleging causes of action for quiet title, declaratory relief, intentional interference with economic advantage, conversion, and retaliatory eviction. The issue this case presented for the Court of Appeal’s review was whether the immunities in Government Code sections 818.8 and 822.2 applied to a slander of title cause of action and, if not, whether Finch otherwise adequately alleged a slander of title cause of action against the City. The Court concluded the immunities in sections 818.8 and 822.2 did not apply to a slander of title cause of action. Furthermore, the Court concluded Finch did not otherwise adequately allege a slander of title cause of action nor did Finch demonstrate it could cure the pleading deficiencies by amendment. Therefore, the trial court did not err in sustaining the City's demurrer to Finch's complaint without leave to amend. View "Finch Aerospace Corp. v. City of San Diego" on Justia Law

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The Kanawha County Commission is a member of the Central West Virginia Regional Airport Authority, which owns and operates Yeager Airport. At the behest of the FAA, they began a project to remove a hill in Charleston's Coal Branch Heights neighborhood. The Commission wanted to acquire the 10-acre “Nutter Farm” to deposit material removed from the hill and purchased a two-thirds interest, paying $58,333.33 for each one-third interest, then filed a condemnation petition against the third owner, Gomez. The court determined that the Commission’s stated purposes were a proper public use and appointed condemnation commissioners, who valued Gomez’s share at $33,335. The court permitted the Commission to deposit $33,335 and granted immediate possession. Following discovery, the court struck the testimony of Gomez’s expert, struck Gomez’s claims, and granted the Commission summary judgment. The Supreme Court of Appeals reversed in part. The court upheld the determination of public use; the holding that any enhancement or depreciation in value caused by the project for which the land was taken must be disregarded in determining market value; and striking Gomez’s expert. The court erred in striking Gomez’s “claims” as a sanction for her failure to appear at her deposition; in taking judicial notice of the commissioners’ report on the value of the land; and in entering summary judgment. Gomez has a right to testify to the value of her interest in the property on the date of the taking by the Commission. View "Gomez v. Kanawha County Comm'n" on Justia Law

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Plaintiffs filed suit against a group of airlines and security contractors seeking to recover losses after the September 11, 2001 terrorist attacks. Plaintiffs alleged that, because defendants were negligent in overseeing airport security systems, the terrorists were able to hijack American Airlines Flight 11 and United Airlines Flight 175 and to fly those planes into the Twin Towers. The district court entered judgment for defendants. The court agreed with the district court's conclusion that plaintiffs are entitled to compensation only for the amount of value that their leasehold interests lost due to the terrorist attacks, that they cannot recover their claimed consequential damages, and that, pursuant to CPLR 4545, their insurance recoveries correspond to, and offset, their potential tort award. The court also agreed that United had no duty to supervise the security checkpoints or detect the hijackers who boarded American Airlines Flight 11. However, the court concluded that the district court erred by using an incorrect methodology when calculating the value by which plaintiffs’ leasehold interests declined, and the district court wrongly decided that prejudgment interest accrues at the federal funds rate on the diminution in value of plaintiffs’ leasehold estates. The district court should have calculated prejudgment interest using New York’s statutory prejudgment interest rate, and assessed that interest based on the final damages award. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "World Trade Center Properties LLC v. American Airlines" on Justia Law

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Neighbor and owner of property near the Palmer Municipal Airport brought an inverse condemnation claim against the City of Palmer, arguing that the airport operation diminished his property value. The superior court entered summary judgment for the City of Palmer because the property owner failed to submit any expert testimony regarding damages. The Supreme Court reversed the superior court's decision because Alaska law permits property owners to testify about their opinion of the property's value before and after an alleged taking. View "Briggs v. City of Palmer" on Justia Law

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This case arose when the Port of Los Angeles prohibited motor carriers from operating drayage trucks on port property unless the motor carriers entered into concession agreements with the port. The concession agreements set forth fourteen specific requirements covering, among other things, truck driver employment, truck maintenance, parking, and port security. The agreements were adopted as part of the port's "Clean Truck Program," adopted in response to community opposition that had successfully stymied port growth. Plaintiff challenged the concession agreements, arguing that they were preempted by the Federal Aviation Administration Authorization Act (FAAA Act), 49 U.S.C. 14501 et seq. The court held that the district court meticulously identified and applied the governing law. The court affirmed the district court's holding that the financial capability, maintenance, off-street parking, and placard provisions were not preempted. The court reversed the district court's conclusion that the employee-driver provision was saved from preemption by the market participant doctrine, and remanded for further proceedings. View "American Trucking Ass'n v. The City of Los Angeles, et al." on Justia Law

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The owners bought property in 1995 and live there with their daughter. It is under the flight paths of runways of the Cleveland Hopkins International Airport. In 2002, the owners filed a class-action mandamus action, seeking to compel the city to initiate appropriation proceedings, claiming that the level and frequency of flights so interfered with their use and enjoyment that the property had been taken for public use without just compensation. The state court dismissed. They tried again in 2008, citing expansion projects. The city removed the case to federal district court, which dismissed with prejudice. The Sixth Circuit reversed and remanded. The district court erred in applying res judicata; the claims based upon the 2004 and 2007 expansions could not have been raised in the 2002 Action and are premised on a new transaction or occurrence distinct from the subject matter of the 2002 Action. View "Boggs v. City of Cleveland" on Justia Law

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The FAA issued permits for modernization of the mixed-use Hanscom airport near the historic towns of Lexington and Concord. Opponents raised challenges under the Department of Transportation Act, 49 U.S.C. 303(c), the National Historic Preservation Act, 16 U.S.C. 470f, and the National Environmental Policy Act (NEPA), 42 U.S.C. 4321-4347. The First Circuit rejected the challenges. The FAA adequately examined alternatives; the determination that none would be prudent was reasonable. The agency went beyond considering reasonably foreseeable impacts and considered worst case scenarios. View "Safeguarding the Historic Hanscom Area's Irreplacable Resources, Inc. v. Fed. Aviation Admin." on Justia Law