Justia Real Estate & Property Law Opinion Summaries

This case arose from an allegedly improper reconveyance of a junior deed of trust (the “EEF Deed of Trust”) held by Appellant, Eagle Equity Fund, LLC (“EEF”). The reconveyance, which was executed by Respondent, TitleOne Corporation, had the effect of divesting EEF of its security interest in the collateral property. Because EEF was divested of its security interest, it did not receive notice when the Property was later sold to DAS Investments, LLC. Being unaware of the sale, EEF had no opportunity to participate in the sale process. Shortly thereafter, DAS resold the Property to Corey Barton Homes, Inc. (“CBH”), for a profit. On discovering the sale and resale of the Property, EEF sued TitleOne, DAS, and CBH, among others, on a litany of counts including tortious interference and negligent reconveyance of the EEF Deed of Trust. On appeal, EEF argued that: (1) the reconveyance damaged EEF by depriving it of the opportunity to insert itself into the sale of the Property; (2) the statute of limitations had not run on EEF’s negligent reconveyance claim under Idaho Code section 45-1205 because it should have been calculated from the date of the sale rather than from the date of the reconveyance; and (3) DAS and CBH were not bona fide purchasers because they had inquiry notice of EEF’s interest. After review, the Supreme Court concluded: (1) EEF had no claim against TitleOne for tortious interference with a prospective economic advantage, so the district court did not err in dismissing EEF's claims against TitleOne on summary judgment; (2) because the district court did not err in so granting summary judgment, the Supreme Court did not reach EEF's contention that the district court miscalculated the statute of limitations; and (3) the district court did not abuse its discretion in refusing t allow EEF to amend its complaint to add a quiet title claim against CBH. Accordingly, the Court affirmed the district court's judgment. View "Eagle Equity Fund v. TitleOne Corp" on Justia Law

Dennis Sallaz owned a 1954 Cadillac Eldorado that he had purchased in 1964. In 1991, Sallaz granted Eugene “Roy” Rice a lien on the Cadillac, and a new certificate of title was issued in 1991, showing that Roy Rice had a lien on the car. Sallaz had a duplicate of that certificate of title issued to himself. Sallaz was counsel for Rice, and they were close friends and business associates for many years. Their relationship soured, in early 2011, Rice had his son Michael Rice repossess the Cadillac. Michael Rice, on behalf of his father, presented an Affidavit of Repossession to the Idaho Transportation Department, and the Department issued a new certificate of title showing that the owner of the Cadillac was Eugene LeRoy Rice or Rose Jeanette Rice, who was his wife. Rice later sold the Cadillac for $25,000. Sallaz filed this action against Rice, his wife, and his son seeking to recover possession of the Cadillac or, if he could not do so, damages for conversion in the sum of $75,000. Sallaz sought a writ of possession to gain possession of the Cadillac, but the district court denied the writ because “Mr. Rice has shown with sufficient probability that he is the official owner of record of the 1954 Cadillac Eldorado and that he is entitled to possession of the vehicle.” There were other claims filed between the parties, and all of the various claims were tried to a jury from June 30 through July 21, 2014 (the other claims are not relevant to this appeal). After Defendants rested, Sallaz moved for a directed verdict. The district court denied the motion, and the jury returned a special verdict finding that Sallaz had failed to prove his claim against Defendants for conversion of the Cadillac. Plaintiffs appealed. Finding no reversible error, the Supreme Court affirmed the denial of a directed verdict. View "Sallaz v. Rice" on Justia Law

Appellant Dorothy McCarty appealed the grant of summary judgment holding that a quitclaim deed granting certain real property to McCarty was unenforceable as a matter of law because it did not contain an adequate description of the subject property. The issues raised on appeal were: (1) whether Idaho Code section 55-606 barred the grantors’ successors in interest from challenging the enforceability of the Quitclaim Deed that the grantors themselves executed; (2) whether the district court erred in striking evidence of the grantors’ intent at the time they executed the deed; (3) whether the district court erred in finding that the Quitclaim Deed did not contain an adequate description of the subject property; (4) whether the district court erred by holding that the grantors were thereafter prevented from transferring the property by an amendment to the trust documents; and (6) whether the district court erred in concluding that the doctrines of ‘reformation,’ ‘interlineation,’ and ‘correction deed’ were not applicable. Finding no reversible error, the Supreme Court affirmed. View "David & Marvel Benton Trust v. McCarty" on Justia Law

CNW, LLC owned an office building in the Taylor’s Crossing business subdivision in Idaho Falls. In mid-June of 2012, a sinkhole developed under the parking lot of CNW’s building. It was later determined that the sinkhole was caused by water from Porter Canal infiltrating an abandoned sewer line and eroding the soil under the parking lot. Porter Canal was owned and operated by New Sweden Irrigation District (NSID); the abandoned sewer line was owned by the City of Idaho Falls (City). NSID denied responsibility for the sinkhole. CNW then served the City with a notice of tort claim. Shortly thereafter, NSID admitted that it had worked on the Porter Canal in the spring of 2012. Prior to that, NSID had repeatedly denied performing any work on the canal. CNW filed this lawsuit against NSID and the City on December 19, 2012. On January 25, 2013, CNW served NSID with an amended notice of tort claim. NSID moved for summary judgment on September 29, 2014. On December 31, 2014, the district court granted NSID’s motion for summary judgment. The district court found that CNW’s letter of October 18, 2012, was not sufficient to satisfy the requirements of the Idaho Tort Claims Act (ITCA). The district court also found that the 180 day time limit expired before CNW served the amended notice of tort claim in January. CNW filed a motion asking the district court to reconsider the grant of summary judgment. After a hearing, the district court denied the motion. CNW timely appealed. The Idaho Supreme Court reversed the trial court and remanded for further proceedings, finding that the district court erred in concluding one of the first notices of tort claim, delivered to NSID's secretary, satisfied the presentment requirement provided by the ITCA. View "CNW, LLC v. New Sweden Irrigation Dist." on Justia Law

This lawsuit involved a subdivision named Pend Oreille View Estates, which was developed in two phases. Pend Oreille View Estates Owner’s Association, Inc. ("Association") desired to pave the roads that went from the public road, across Phase I, to Phase II because of the dust created by vehicles on the roads and the cost of maintaining unpaved roads. The matter was put to a vote to the members of the Association, and the decision was made to pave the roads. After an amendment to the Association bylaws, it sent notices of assessments to all of its members who owned property in Phases I and II. T.T., LLC, Nadia Beiser, David M. Richards, Mary Beth Giacomo, and Matthew A. Farner (collectively “the Defendants”) all owned real property in Phase II. The Association sent them bills for their respective assessments. When they did not pay the assessments, the Association recorded liens against their properties, and later filed suit to foreclose on those liens. Defendants appealed, arguing the Association was without authority to pave the roads and bill them through the assessments (leading to liens on their properites). Finding no error in the district court's judgment in favor of the Association, the Supreme Court affirmed. View "Pend Oreille View Estates Homeowners' Association v. T.T. LLC" on Justia Law

Appellant John Thornton, represented by his wife Val Thornton, sued sisters Mary Pandrea and Kari Clark to quiet title to an easement reserved in their names on real property he owned that was adjacent to real property that was jointly owned by the sisters. Clark counterclaimed against John Thornton, seeking declaratory relief establishing her rights in the easement and damages for interference with her easement rights. While this case was pending, the real property jointly owned by Pandrea and Clark was judicially partitioned in a separate proceeding; Pandrea remained as the sole owner of the property adjacent to the easement in question and Clark owned nearby non-adjacent property. The district court granted Clark’s motion for summary judgment on all of John Thornton’s claims against her and on all her counterclaims except her claim for damages. The court denied John Thornton’s motion for summary judgment and subsequent motion for reconsideration. By stipulation, the court dismissed John Thornton’s claims against Pandrea and Clark’s damages claim against him. After all claims were adjudicated, the district court awarded attorney fees to Clark against John Thornton under Idaho Code section 12-121 and against both Mr. Thornton and Ms. Thornton jointly and severally as Rule 11 sanctions. John Thornton appealed several decisions of the district court. Val Thornton, as intervenor, appealed the district court’s imposition of sanctions. After entry of judgment, Kenneth Barrett and Deanna Barrett (“the Barretts”) purchased Clark’s property and substituted in the stead of Clark in the underlying action and in this appeal. John Thornton moved for a stay of execution and waiver of supersedeas bond, which the district court denied. The court granted the Barretts’ motion for sanctions against Mr. Thornton and Ms. Thornton based on the motion for stay. Finding no reversible error in the district court's judgment, the Supreme Court affirmed. View "Thornton v. Pandrea" on Justia Law

Kenneth and Sally Eyer and Idaho Forest Group, LLC (IFG) entered into a Log Purchase Agreement in which IFG agreed to purchase timber harvested from the Eyers’ land. Before logging, IFG sent an agent to the Eyers’ property to assist them in locating property lines. When the logging occurred, the loggers mistakenly cut timber located on neighboring land. The neighbors sued the Eyers for timber trespass and the Eyers brought a third-party action against IFG for breach of an assumed duty to properly mark the property lines. A jury found in favor of IFG, finding that IFG had not assumed a duty to the Eyers. The district court then awarded IFG $95,608 in attorney fees. On appeal, the Eyers argued the district court erred in awarding fees under Idaho Code section 12-120(3), contending: (1) the gravamen of the Eyers’ complaint was not a commercial transaction; and (2) the Eyers did not sell timber for a “commercial purpose” since they used the proceeds of the sale to pay medical bills. Finding no reversible error, the Supreme Court affirmed. View "Eyer v. Idaho Forest Group" on Justia Law

Northern Title Company of Idaho, Inc. (Northern Title) appealed the award of pre-appeal damages and attorney fees in favor of Steven Cummings (as the prevailing party). The Supreme Court reversed the underlying judgment. Northern Title then brought an I.R.C.P. 60(b) motion to vacate the judgments for damages and attorney fees that the district court had entered against it before the appeal. Cummings objected, arguing that Northern Title’s Rule 60(b) motion was untimely and without good cause. The district court disagreed and granted Northern Title’s motion. Cummings timely appealed. But finding no reversible error in granting Northern Title's motion, the Supreme Court affirmed. View "Cummings v. No Title Co of Idaho" on Justia Law

The issue presented for the Supreme Court's review stems from a quiet title action filed by Appellants Andrew and Kimberly Kirk against Ann Wescott. The Kirks bought a plot of land in Blaine County, referred to as Lot 7 of Block 1 of the Glassford Heights Subdivision (“Lot 7”). After purchasing Lot 7, the Kirks found out that Lot 8 of the subdivision had been granted an easement of access across the southeast corner of Lot 7. Wescott owned Lot 8. In 2012, the Kirks brought this action to quiet title, asking the court to terminate the easement encumbering their property. Both parties moved for summary judgment, asking the court to interpret the deed granting the easement. The district court granted partial summary judgment to Wescott, concluding that the easement was created and none of the events that would trigger its termination had occurred. The Kirks then filed two motions to amend the complaint, both of which the district court denied. After a bench trial, the district court dismissed the Kirks’ action for quiet title. Wescott sought an award of attorney fees, which the district court also denied. On appeal, the Kirks challenged the district court’s grant of partial summary judgment to Wescott and the court’s denial of their motions to amend the complaint. Wescott cross-appealed, challenging the district court’s denial of her motion for attorney fees. Wescott also sought an award of attorney fees on appeal. After review, the Supreme Court concluded the district court erred in its interpretation of the easement on summary judgment. The district court judgment in favor of Wescott was reversed and the case remanded to the district court to enter judgment in favor of the Kirks. Costs were awarded to the Kirks on appeal. View "Kirk v. Wescott" on Justia Law

Donna Simono attended a meeting hosted by Treasure Valley Area of Narcotics Anonymous (“TVNA”) at the Turner House in Mountain Home. When leaving the meeting, she fell down the stairs and injured her ankles. Simono brought a negligence action against Turner House, Larry Rodgers, and Cheryl Baker (collectively “Turner House”). Turner House filed a third-party complaint against TVNA, alleging that TVNA was responsible for maintaining the area where Simono fell. Turner House also sought indemnification for Simono’s claims. The jury returned a verdict finding neither Turner House nor TVNA negligent, and the district court entered judgment dismissing Simono’s complaint and Turner House’s third-party complaint. TVNA filed a motion seeking attorney fees against Turner House under Idaho Code section 12-120(3). The district court denied the motion for fees, concluding that the lawsuit was not based on a commercial transaction. TVNA appealed the district court’s denial of its motion for fees. Both TVNA and Turner House sought attorney fees on appeal. Finding that the district court erred in concluding that TVNA was not entitled to attorney fees, the Supreme Court reversed. Fees and costs on appeal were awarded to TVNA. View "Turner House v. Treasure Valley Area of Narcotics Anonymous" on Justia Law