Justia Real Estate & Property Law Opinion Summaries

Steven Corry Stephenson, as trustee of the Steven Corry Stephenson Trust, owns Lot 11, and Lone Peak Preserve, LLC owns Lot 13, both near Big Sky, Montana. The properties were created by the same certificate of survey (COS 1754) and have a road (Skywood Road) with a 60-foot easement depicted. A 1993 affidavit of dedication granted this easement for ingress, egress, and utilities for all owners within COS 1754. In 2004, Phillip Smith conveyed Lot 13 to Lone Peak with a 30-foot easement for access and utilities across Lot 11. In 2010, Smith conveyed Lot 11 to Stephenson, referencing prior conveyances and easements. In 2013, Stephenson executed an access and utility easement agreement, incorporating the 30-foot easement described in the Smith-Lone Peak Deed.In December 2021, Stephenson sued Lone Peak for trespass and declaratory judgment, alleging that Lone Peak's utilities and proposed driveway were outside the easement area. Lone Peak counterclaimed for interference with easements, trespass, and declaratory judgment. Both parties filed motions for summary judgment. Between 2022 and 2023, Stephenson placed landscape boulders, a log, and a speed bump near Lone Peak's access, leading Lone Peak to file for a temporary restraining order and preliminary injunction in July 2023.The District Court of the Eighteenth Judicial District, Gallatin County, granted Lone Peak's request for a preliminary injunction, finding that the 30-foot easement and cul-de-sac easement were valid and that Stephenson's actions unreasonably interfered with these easements. The court ordered Stephenson to remove the obstructions and refrain from further interference.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court's order, finding no manifest abuse of discretion. The court held that Lone Peak demonstrated a likelihood of success on the merits, irreparable harm, that the balance of equities tipped in its favor, and that the injunction was in the public interest. View "Stephenson v. Lone Peak" on Justia Law

Sidney and Julian Helvik, who have lived on their family ranch since 1947, sold a portion of their ranch to Wesley and Karen Tuscano in 2018. In 2020, the Helviks agreed to sell the remainder of the ranch to the Tuscanos under an agreement that included a promissory note and provisions for the Tuscanos to assist the elderly Helviks with end-of-life issues. The Helviks signed a quitclaim deed, but the Tuscanos later had them sign a gift deed, which transferred the ranch without consideration. The Tuscanos never made any payments under the agreement and used the gift deed to obtain a mortgage on the ranch.The Helviks filed a complaint in the District Court of the Sixth Judicial District, Sweet Grass County, seeking to void the agreement and the gift deed, alleging undue influence and fraud. The Tuscanos counterclaimed and filed a third-party complaint against Jacqueline Conner, alleging tortious interference and abuse of process. The District Court granted summary judgment in favor of Conner on the tortious interference claim and excluded evidence of an Adult Protective Services investigation and an oral agreement to transfer land.The Supreme Court of the State of Montana reviewed the case. It affirmed the District Court's decision to rescind the agreement based on its equitable powers, noting the unique fiduciary duty in grantor-support agreements. The court found no abuse of discretion in excluding evidence of the APS investigation and the oral agreement. The court also held that the Tuscanos waived their argument regarding jury instructions on undue influence by not objecting at trial. The summary judgment in favor of Conner was upheld due to the lack of evidence of damages. The court declined to award attorney fees to Conner under M. R. App. P. 19(5). The District Court's orders and judgments were affirmed. View "Helvik v. Tuscano" on Justia Law

In 1999, Rosemary Colver executed the Colver Land Trust agreement, naming her five children as beneficiaries and appointing Bruce and Karin as co-trustees. Rosemary and her husband, Richard, retained life estates in any real property held by the Land Trust. The Land Trust sold and purchased properties over the years, with the final property being the Sanders County Property, purchased by Rosemary and Richard in 2010. Richard quitclaimed his interest to Rosemary in 2012, and Rosemary's will devised the Sanders County Property in trust for Richard and their daughter, Gretchen, allowing them to reside there until their deaths.After Rosemary's death in 2017, Bruce and Gretchen were appointed co-personal representatives of her estate. The final accounting identified the Sanders County Property as an estate asset. In 2023, Gretchen filed a petition to correct the distribution of the Sanders County Property, claiming a life estate per the will. Bruce and the Land Trust filed a cross-motion, asserting the property belonged to the Land Trust, alleging it was purchased with Land Trust funds.The Twentieth Judicial District Court, sitting in probate, denied Bruce and the Land Trust's motion for summary judgment and granted Gretchen's motion, ruling that the Land Trust did not equitably own the Sanders County Property and that Gretchen had a valid life estate per the will.The Supreme Court of the State of Montana reviewed the case. It held that the probate court lacked subject matter jurisdiction to adjudicate the Land Trust's claim of equitable ownership, as such claims are equitable in nature and fall outside the probate court's limited jurisdiction. The Supreme Court reversed the probate court's decision regarding the Land Trust's claim and remanded with instructions to dismiss it. However, it affirmed the probate court's ruling that Gretchen had a valid life estate in the Sanders County Property as per the will. View "In re R.E. Colver" on Justia Law

Kratzer Construction entered into a subcontract with Hardy Construction Co. to perform work on a building addition for Ekalaka Public Schools. Kratzer completed the work and submitted pay applications, including one for $92,856.45, which Hardy partially disputed due to unapproved change orders. Hardy offered to pay $81,153 upon Kratzer signing a release, but Kratzer refused, demanding the full amount plus interest. Hardy later offered the same amount without requiring a release, but Kratzer still declined, insisting on interest.The Sixteenth Judicial District Court granted summary judgment to Kratzer, ruling that Hardy owed $81,153 plus 18% interest from January 6, 2022, and attorney fees, as Kratzer was deemed the prevailing party. Hardy appealed, arguing that Kratzer failed to meet a condition precedent in the subcontract requiring submission of releases from his subcontractors before final payment.The Supreme Court of Montana reviewed the case and concluded that the subcontract's provisions were clear and unambiguous. The court determined that Kratzer's failure to submit the required releases constituted a breach of the subcontract, and Hardy was entitled to withhold payment. The court found that Hardy's offers to settle did not constitute a waiver of the condition precedent or a novation of the contract.The Supreme Court reversed the District Court's summary judgment in favor of Kratzer, including the awards for interest and attorney fees. The court remanded the case for entry of judgment in favor of Hardy, requiring Hardy to pay Kratzer $81,153 for services rendered under the subcontract, less reasonable attorney fees and costs incurred by Hardy. View "Kratzer Construction v. Hardy Construction" on Justia Law

Upper Missouri Waterkeeper and seven Broadwater County residents challenged the approval of a subdivision by 71 Ranch, LP, arguing it did not meet the "exempt well" exception for a water rights permit. They sought attorney fees under the Montana Water Use Act, the Uniform Declaratory Judgments Act (UDJA), and the Private Attorney General Doctrine. The District Court denied their request for fees under all three claims.The First Judicial District Court found that the subdivision's environmental assessment was inadequate and that the County abused its discretion in approving the subdivision. The court ruled in favor of Upper Missouri on most claims but denied their request for attorney fees. The plaintiffs appealed the denial of fees.The Montana Supreme Court reviewed the case and agreed with the District Court that the Water Use Act did not authorize fees. However, the Supreme Court reversed the denial of fees under the UDJA, finding that the District Court abused its discretion. The Supreme Court held that the equities supported an award of attorney fees and that the declaratory relief sought by Upper Missouri was necessary to change the status quo. The case was remanded to the District Court to determine a reasonable amount of fees and their apportionment. The Supreme Court did not address the private attorney general claim. View "Upper Missouri v. Department of Natural Resources and Conservation" on Justia Law

Kris Hawkins filed a Realty Transfer Certificate in March 2018, indicating that a property in Florence, Ravalli County, had been transferred to the Olson Trust. The Department of Revenue (DOR) requested documentation identifying the trustee of the Trust in April 2018 and January 2019, but it was never provided. In July 2023, Hawkins, claiming to be the trustee, requested an informal review of the DOR’s appraised value of the property, which was not adjusted. Hawkins appealed to the Ravalli County Tax Appeals Board, but there was doubt about her status as trustee. Despite several requests, Hawkins did not provide the necessary documentation.The Ravalli County Tax Appeals Board denied Hawkins’s request for a reduction in value, and she appealed to the Montana Tax Appeal Board (MTAB). MTAB requested confirmation of Hawkins’s role as trustee multiple times. Hawkins filed a declaration for disqualification of MTAB members, alleging bias, but it was unsupported. She also filed a petition for interlocutory adjudication with the District Court, which was struck because the Trust was not represented by an attorney. Hawkins then requested to substitute herself for the Trust and reinstate the petition. MTAB dismissed the appeal due to lack of documentation, and the District Court dismissed the petition for lack of subject matter jurisdiction.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court’s decision. The court held that the District Court lacked subject matter jurisdiction to hear an interlocutory adjudication because the underlying matter had already been dismissed by MTAB. The court found that Hawkins’s affidavit alleging bias was insufficient and that MTAB did not lose jurisdiction after the unfounded declaration. The District Court’s dismissal of the petition was proper. View "Hawkins v. State" on Justia Law

Brandon James Caldwell and Jenny Lynn Caldwell were married in 2008 and later moved to Montana. They separated in June 2020, and Jenny filed for dissolution of marriage, proposing a parenting plan for their three minor children. The District Court issued several interim parenting plans but did not finalize one. The couple reached a Property Settlement Agreement in April 2021, agreeing to divide their assets, including two homes. Disputes arose over the appraisal of their marital home in Highwood, Montana, leading to further court proceedings.The District Court of the Eighth Judicial District, Cascade County, held multiple hearings and allowed a second appraisal of the Highwood property, despite Brandon's objections. The court found the initial appraisal undervalued the property and ordered a new appraisal to ensure an equitable division of assets. The final decree, issued in March 2024, included the second appraisal's value but did not incorporate a final parenting plan, which was an oversight.The Montana Supreme Court reviewed the case. It affirmed the District Court's decision to allow a second appraisal and use its value for property division, finding no abuse of discretion. The court emphasized the need for accurate property valuation to achieve equitable distribution. However, the Supreme Court remanded the case for the District Court to issue a final parenting plan based on the existing record, as required by Montana law. The final decree was otherwise affirmed. View "Marriage of: Caldwell" on Justia Law

Mark Mullee, an expert-level skier, was injured at Whitefish Mountain Resort (WMR) after losing control on a beginner-level ski trail and falling down an embankment into a streambed. Mullee had skied this trail over 100 times before the accident. On January 16, 2019, he lost control after exiting a skier’s tunnel and fell, seriously injuring his hip. Mullee claimed that Winter Sports, Inc. (WSI), the operator of WMR, was negligent for not maintaining a fence that would have prevented his fall.The Eleventh Judicial District Court, Flathead County, granted summary judgment in favor of WSI, determining that WSI had no duty to maintain a fence capable of catching Mullee and preventing his fall. The court found that Mullee’s accident was an inherent risk of skiing, for which WSI was not liable under the Montana Skier Responsibility Act (MSRA). The court also granted summary judgment on Mullee’s premises liability claim.The Supreme Court of the State of Montana reviewed the case and affirmed the lower court’s decision. The court held that WSI did not owe a duty of reasonable care to install and maintain fencing to catch Mullee after he lost control. The court emphasized that skiing involves inherent risks, including collisions with natural objects and variations in terrain, which skiers must accept. The court also noted that imposing such a duty on ski area operators would be contrary to public policy and the economic viability of the ski industry. Therefore, the court concluded that WSI was not negligent and upheld the summary judgment in favor of WSI. View "Mullee v. Winter Sports" on Justia Law

Neely, acting as his own general contractor, hired Grosvold to perform excavation work on his property under an oral contract. Grosvold worked from April to October 2021, but their relationship deteriorated, and Neely refused to pay for an invoice amounting to $55,858. Neely sent Grosvold a notice of alleged defects in the work, which Grosvold disputed. Grosvold then filed a complaint for breach of contract and prejudgment interest, while Neely counterclaimed for breach of contract, negligence, and construction defect.The District Court of the Third Judicial District in Anaconda-Deer Lodge County tried the case before a jury. The court refused to instruct the jury on Neely’s construction defect and negligence claims, reasoning that the evidence did not substantiate the work was done to a residence and that the case was strictly a breach of contract matter. The jury found Neely had breached the contract and awarded Grosvold $60,512.60 in damages. The court denied Grosvold’s request for prejudgment interest, finding the damages were not certain until the jury’s determination.The Supreme Court of the State of Montana reviewed the case. It affirmed the District Court’s decision not to instruct the jury on the construction defect claim, holding that the residential construction defect statute did not create an independent cause of action beyond breach of contract or tort. The court also affirmed the refusal to instruct the jury on negligence, finding that Neely’s substantial rights were not affected as the breach of contract instructions adequately covered the disputed subject matter. Finally, the court upheld the denial of prejudgment interest, concluding the amount of recovery was not capable of being made certain until the jury’s verdict. View "Grosvold v. Neely" on Justia Law

Musselshell Ditch Company (MDC) owns and operates the Musselshell Ditch canal system. JD Bar D, LLC, along with its shareholders James D. Harris and Jody Wacker, own a ranch in Musselshell County, Montana, which is crossed by the Ditch. An easement granted in 2005 allows MDC exclusive use of the Ditch for operation and maintenance. Between 2014 and 2017, JD Bar D received permission from MDC for several projects impacting the Ditch. However, from 2017 to 2019, JD Bar D installed additional structures, including a wooden bridge, cement pump box, water pump, electrical conduit, and buried pipeline, without MDC’s permission. MDC opposed these installations, but JD Bar D refused to remove them.The Fourteenth Judicial District Court of Montana found that JD Bar D’s installations unreasonably interfered with MDC’s easement rights, violating § 70-17-112, MCA. The court ordered JD Bar D to remove the structures and awarded MDC approximately $40,000 in attorneys’ fees. JD Bar D appealed, arguing that the District Court failed to balance their water and property rights with MDC’s easement rights and improperly relied on the absence of permission in determining the reasonableness of the structures.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court’s decision. The court held that JD Bar D’s installations created permanent, hazardous, and inconvenient encroachments within the Ditch, unreasonably interfering with MDC’s easement rights. The court also noted that forcing MDC to defend its easement rights in court constituted unreasonable interference. The Supreme Court concluded that the District Court’s findings were supported by substantial credible evidence and that the award of attorneys’ fees to MDC was appropriate under § 70-17-112(5), MCA. View "Musselshell Ditch Co. v. JD BAR D, LLC" on Justia Law