Justia Arizona Supreme Court Opinion Summaries

At issue in this case was an abandoned easement on property that DOS Land Holdings, LLC purchased. The closing documents omitted the easement from the property’s legal description. DOS filed claims for breach of contract and breach of the covenant of good faith and fair dealing against Empire West Title Agency, alleging that DOS “reasonably believed” that the easement was represented in documents used at the closing. Empire filed a motion to compel DOS to disclose any attorney-client communications indicating whether DOS knew before closing that the easement had been abandoned. The superior court denied the motion, concluding that the documents were protected by the attorney-client privilege. Empire filed a petition for special action in the court of appeals, arguing that DOS had impliedly waived the attorney-client privilege by alleging that it “reasonably believed” that Empire had met its contractual obligations. The court of appeals ordered the disclosure of attorney-client communications found relevant to the “reasonableness of DOS’s expectation of coverage.” The Supreme Court vacated the court of appeals’ decision, holding that the court erred in ruling that DOS impliedly waived the privilege by pleading its “reasonable belief” in the litigation. View "Empire West Title Agency, LLC v. Hon. Talamante" on Justia Law

In 2006, the City of Phoenix started installing light rail tracks along Jefferson Street, which abutted Appellant’s property. As part of the installation, the City erected a permanent concrete barrier between the tracks and Appellant’s property, thus blocking two driveways providing vehicular access from Jefferson Street to Appellant’s property. The property, however, still had access via Madison Street. The City subsequently filed an eminent domain action to determine the compensation it owed to Appellant for a temporary construction easement Appellant granted the City. Appellant counterclaimed, seeking damages for his permanent loss of access to Jefferson Street. The superior court granted summary judgment to the City on that claim, concluding that a property owner is not entitled to compensation for loss of access if he retains “free and convenient access” to the property. The court of appeals vacated the superior court’s ruling, concluding that the government may not eliminate a property owner’s established access to an abutting roadway without providing just compensation to the property owner. The Supreme Court affirmed, holding that, under these circumstances, an owner may claim compensable damage to private property within the meaning of Ariz. Const. art. II, 17, even if other streets provide access to the property. View "City of Phoenix v. Garretson" on Justia Law

Relatives of Bradford Lund (collectively, Miller) sought the appointment of a guardian and conservator to manage Bradford's assets. Bradford, his father, and his stepfather (collectively, the Lunds) opposed the appointment. Miller's counsel subsequently served a law firm that previously represented Bradford (JS&S) with a subpoena requesting all non-privileged information relating to Bradford. JS&S mistakenly delivered the entire client file to counsel without reviewing it for privileged information. Eventually, the trial court decided to review the documents in camera before ruling on whether each document was privileged. The Supreme Court vacated the trial court's order, holding (1) before reviewing a particular document, a trial court must first determine that an in camera review is necessary to resolve the privilege claim; and (2) the trial court in this case erred by ruling that it would review all the documents to determine whether they were privileged without considering the parties' arguments regarding privilege and waiver to determine whether in camera review was warranted for particular documents before reviewing them. Remanded. View "Lund v. Myers" on Justia Law

Defendant constructed a home that it sold to its initial purchaser. The initial purchaser, in turn, sold the home to Plaintiffs. Plaintiffs later learned the home's hillside retaining wall and home site had been constructed in a dangerously defective manner. Plaintiffs requested that Defendant cover the cost of repair, but Defendant claimed it was no longer responsible for any construction defects. Plaintiffs then filed an action against Defendant to force Defendant to cover the cost of repair. The trial court dismissed all of the claims, concluding, among other things, that Plaintiffs' negligence claims were barred by Arizona's economic loss doctrine. The court of appeals remanded for resolution of Plaintiffs' various negligence claims, concluding that, because Plaintiffs had no contract with Defendant, the economic loss doctrine did not bar their tort claims. The Supreme Court affirmed, holding that the economic loss doctrine did not bar Plaintiffs' negligence claims to recover damages resulting from the construction defects. Remanded. View "Sullivan v. Pulte Home Corp." on Justia Law

Plaintiffs leased state trust land and owned all structures and improvements on the land. Under the terms of the lease, the improvements that existed on the land would become the state's property upon lease termination. After the leases were entered into, the legislature created a property tax classification ("Class Nine") in which property was taxed at a lower rate than that applicable to commercial property. For certain years, Maricopa County classified the improvements under the classification applicable to general commercial property and taxed Plaintiffs accordingly. The State Board of Equalization denied Plaintiffs' request for Class Nine classification. Plaintiffs then filed a declaratory judgment action in the tax court. The tax court granted summary judgment for the County based on Plaintiffs' failure to meet the requirements of Ariz. Rev. Stat. 42-12009(A)(1)(a), which provides that improvements on land leased from the state qualify for a reduced ad valorem tax rate if they become the property of the state on termination of the leasehold interest in the property. The Supreme Court remanded, holding that section 42-12009(A)(1)(a) applies when, at the time of taxation, improvements exist on the land that, under the terms of the lease, would become the state's property upon lease termination. View "CNL Hotels & Resorts, Inc. v. Maricopa County" on Justia Law

These consolidated cases involved two properties purchased by John Hogan. Each parcel became subject to a deed of trust when Hogan took out loans from Long Beach Mortgage Company. Hogan was delinquent on both loans, which triggered foreclosure proceedings. A notice of trustee's sale recorded for the first parcel identified Washington Mutual Bank as the beneficiary and Deutsche Bank as the beneficiary for the second parcel. Hogan filed lawsuits seeking to enjoin the trustees' sales unless the beneficiaries proved they were entitled to collect on the respective notes. The superior court dismissed the cases. The court of appeals affirmed, holding that Arizona's non-judicial foreclosure statute (Statute) does not require presentation of the original note before commencing foreclosure proceedings. The Supreme Court affirmed the superior court's orders dismissing Hogan's complaints and vacated the court of appeals, holding that the Statute does not require the beneficiary to prove its authority or show the note before the trustee may commence a non-judicial foreclosure. View "Hogan v. Washington Mut. Bank, N.A." on Justia Law

These consolidated cases involved two properties purchased by John Hogan. Each parcel became subject to a deed of trust when Hogan took out loans from Long Beach Mortgage Company. Hogan was delinquent on both loans, which triggered foreclosure proceedings. The trustee recorded a notice of sale for the first parcel, naming Washington Mutual Bank (WaMu) as the beneficiary. A notice of trustee's sale recorded for the second parcel identified Deutsche Bank as the beneficiary. Hogan filed lawsuits seeking to enjoin the trustees' sales unless the beneficiaries proved they were entitled to collect on the respective notes. The superior court granted the defendants' motions to dismiss. The court of appeals affirmed, holding that Arizona's non-judicial foreclosure statute did not require presentation of the original note before commencing foreclosure proceedings. The Supreme Court vacated the court of appeals and affirmed the superior court's orders, holding that Hogan was not entitled to relief because the deed of trust statutes impose no obligation on the beneficiary to "show the note" before the trustee conducts a non-judicial foreclosure. View "Hogan v. Washington Mut. Bank. N.A." on Justia Law

This case concerned commercial property that was subject to a deed of trust and auctioned at trustee's sales twice in 2009. Alleging it was the successful bidder at the second sale, BT Capital, LLC sued the trustee and the trust beneficiary seeking title to the property and damages. The trial court granted summary judgment against BT and dismissed BT's tort claims. While BT's appeal was pending, another trustees sale was conducted in 2010, and a trustee's deed conveyed the property to a beneficiary. The court of appeals subsequently reversed the entry of summary judgment and remanded. The Supreme Court vacated the court of appeals' opinion and affirmed the superior court's entry of summary judgment against BT, holding that the case was rendered moot when the property was purchased by the beneficiary at the third trustee's sale in 2010. View "BT Capital, LLC v. TD Serv. Co. of Ariz." on Justia Law

Dean and Stacey Norcutt bought a home for cash and satisfied the existing first mortgage held by Zions National Bank. They later discovered the home was also subject to a judgment lien obtained by Sourcecorp, Inc. that far exceeded the property's value. Sourcecorp subsequently initiated a sheriff's sale to foreclose on its judgment lien, and the Norcutts sued to enjoin the sale. The trial court granted relief to the Norcutts, and the court of appeals reversed. On remand, the trial court entered summary judgment for Sourcecorp. The Court of appeals reversed, holding that the Norcutts were equitably subrogated to the position of Zions Bank in priority over Sourcecorp. The Supreme Court affirmed, holding that the Norcutts were equitably subrogated to the mortgage lien's priority for the amount they paid to satisfy the mortgage. Remanded. View "Sourcecorp, Inc. v. Norcutt" on Justia Law

Plaintiff refinanced her home by executing a promissory note in favor of Saxon Mortgage and a deed of trust (DOT) naming Saxon as beneficiary and a title company as trustee. Saxon assigned the note to Deutsche Bank National Trust Company as trustee for Saxon Asset Securities Trust 2005-3 by endorsing the note in blank. The assignment was not recorded. Plaintiff defaulted under the note. Deutsche Bank then executed a substitution of trustee, removing the title company as trustee and appointing Tiffany and Bosco as the substituting trustee. Tiffany and Bosco recorded a notice of trustee's sale, naming "Deutsche Bank/2005-3" as the current beneficiary in care of Saxon Mortgage Services. An agent of Saxon then executed an assignment of the DOT, assigning all its beneficial interest to Deutsche Bank. The Supreme Court accepted jurisdiction of questions certified by the United State Bankruptcy Court, answering that the recording of an assignment of deed of trust is not required prior to the filing of a notice of trustee's sale under Ariz. Rev. Stat. 33-808 when the assignee holds a promissory note payable to bearer. View "Vasquez v. Saxon Mortgage, Inc." on Justia Law