Justia Idaho Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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A group of residents and a taxpayers’ association challenged decisions made by the board of a special taxing district in Boise, Idaho, which resulted in higher property taxes for homeowners. The district, created in 2010 at the request of a developer who owned all land within its boundaries, was formed to finance infrastructure projects such as roadways and stormwater facilities. Over the years, the district board authorized bonds to reimburse the developer for these projects, and in 2021 approved new resolutions for additional payments and a general obligation bond to cover those costs. Residents objected to these actions, arguing that the approved projects did not satisfy statutory requirements and raised various constitutional concerns.Reviewing the case, the District Court of the Fourth Judicial District, Ada County, ruled in favor of the district and the developer. The court found that some residents’ arguments, particularly those challenging the district’s formation and earlier bond authorizations, were barred by the statute of limitations in the Community Infrastructure District Act. It also applied Idaho’s preservation doctrine, declining to consider arguments not raised before the district board. The court rejected residents’ remaining arguments, finding that the challenged projects qualified as community infrastructure under the law, and denied attorney fees.On appeal, the Supreme Court of the State of Idaho independently reviewed the record. It held that the district court erred in applying the preservation doctrine due to the unique procedural circumstances, but found this error harmless because the barred arguments and evidence would not change the outcome. The Supreme Court affirmed that challenges to the district’s formation and earlier bond authorizations were time-barred, and that the challenged projects met statutory requirements. The court also rejected constitutional claims and requests for attorney fees, affirming the district court’s decision and awarding costs to the prevailing parties. View "Doyle v. The Harris Ranch Community Infrastructure District No. 1" on Justia Law

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The case involves a dispute over access rights across two parcels of land in Bannock County, Idaho. Crystal Homestead Estates, LLC (CHE), the owner of Crystal Farm, claimed easements over two neighboring parcels owned by Matthew and Laura Schiffman, and Michael and Leslie Schiffman (the Schiffmans). CHE asserted that Crystal Farm was landlocked and could only be accessed via unimproved roads crossing the Schiffman properties. CHE sought to quiet title to these easements, arguing for implied easements by prior use, easements by necessity, and prescriptive easements. The Schiffmans contested these claims, arguing that Crystal Farm was not landlocked and that any claimed easements were extinguished or barred.The Sixth Judicial District Court for Bannock County granted summary judgment for CHE, quieting title to the easements. The court struck affidavits from the Schiffmans that contested CHE’s claims and relied heavily on a declaration from Roger Johnson, a prior owner of the servient estate, finding it sufficient to establish implied easements by prior use. The court dismissed the Schiffmans’ counterclaims and denied their motion for reconsideration.The Supreme Court of Idaho reviewed the case and found several errors in the district court’s handling of the evidence and summary judgment. The Court held that the district court erred by relying on portions of Johnson’s declaration that lacked proper foundation and personal knowledge, and by striking admissible portions of the Schiffmans’ affidavits. Critically, CHE did not establish apparent continuous use long enough before severance to support implied easements by prior use as a matter of law. The Supreme Court of Idaho vacated the judgment, reversed the order granting summary judgment, and remanded the case for further proceedings. The Schiffmans were awarded costs on appeal, but not attorney fees. View "Crystal Homestead Estates v. That Piece of Property" on Justia Law

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The dispute centers on whether a party established a prescriptive easement over a dirt and gravel road, known as the M-1 Road, which crosses a large tract of privately owned timberland in northern Idaho. The appellant acquired three lots in a subdivision by Spirit Lake in 1999, and accessed these lots using the M-1 Road, which traversed land owned by the respondent. This land, the Brickle Creek Unit, spans approximately 20,000 acres and was primarily used for forestry, with only logging roads as improvements. The appellant and their predecessors used the road for various purposes, including construction and recreation, alongside other property owners and the general public. In 2016, the respondent installed a gate and began requiring permits for road access, which the appellant refused to obtain.The case was initially heard by the District Court of the First Judicial District of Idaho, which granted summary judgment to the appellant, finding a prescriptive easement existed. On appeal, the Idaho Supreme Court reversed and remanded for further proceedings. After remand, the district court conducted a bench trial and found that although the appellant’s use of the road was open, notorious, continuous, and uninterrupted, it was presumptively permissive due to the wild, unenclosed, and unimproved character of the land. The court ruled the use did not become adverse until 2016, when access was restricted and the appellant refused to sign a usage agreement.The Supreme Court of the State of Idaho reviewed the appeal and affirmed the district court’s judgment. The Court held that the land’s wild and unimproved nature created a presumption of permissive use, which the appellant failed to rebut with clear and convincing evidence of adverse, non-permissive use for the statutory period. The Court also found no actual or imputed knowledge of adverse use by the landowner prior to 2016. The denial of the prescriptive easement was upheld. View "Spirit Lake Cabins v. Inland Empire" on Justia Law

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Crystal Homestead Estates, LLC (CHE) owns a parcel of land known as Crystal Farm in Bannock County, Idaho. The owners of two adjacent parcels to the south are Matthew and Laura Schiffman, and Michael and Leslie Schiffman. CHE claimed that Crystal Farm was landlocked and could only be accessed by two unimproved roads crossing the Schiffmans’ parcels. CHE filed suit to quiet title to easements over these roads, asserting theories of implied easement by prior use, easement by necessity, and prescriptive easement. The Schiffmans disputed that Crystal Farm was landlocked, challenged the existence of any easement, and made counterclaims, including a third-party complaint against a prior owner for breach of title warranties.The District Court of the Sixth Judicial District granted summary judgment to CHE, quieting title to the easements based on implied easement by prior use. In doing so, the court struck the Schiffmans’ affidavits, relied on a declaration from a prior owner (Roger Johnson), and found the evidence of apparent continuous use sufficient. The court denied the Schiffmans’ motion for reconsideration, stating there was no new evidence or authority and no material factual dispute.On appeal, the Supreme Court of the State of Idaho found that the district court erred by striking admissible portions of the Schiffmans’ affidavits and by relying on portions of Johnson’s declaration that lacked proper foundation and personal knowledge. The Supreme Court further concluded that CHE did not establish, as a matter of law, the required element of apparent continuous use long enough before severance to support an implied easement by prior use. Accordingly, the Supreme Court vacated the judgment, reversed the grant of summary judgment, and remanded for further proceedings. The Schiffmans were awarded costs on appeal, but no attorney fees were granted. View "Crystal Homestead Estates v. That Piece of Property" on Justia Law

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A group of cities in Idaho, each holding junior ground water rights within the Eastern Snake Plain Aquifer, became subject to curtailment proceedings initiated by senior surface water users represented by the Surface Water Coalition. The Coalition argued that pumping by junior ground water rights holders diminished water available to senior rights holders drawing from the Snake River. In response, the Director of the Idaho Department of Water Resources has periodically updated the methodology used to determine whether material injury to the senior rights has occurred, issuing a series of orders—the most recent being a Sixth Methodology Order.Following the issuance of a Fifth Methodology Order and an associated Post-Hearing Order, the cities challenged those orders in the Snake River Basin Adjudication district court, raising several concerns about the Director’s factual determinations and legal standards. During the administrative process, the Director simultaneously issued a Sixth Methodology Order that expressly superseded all prior methodology orders. The cities, however, did not include a direct challenge to the Sixth Methodology Order in their petition for judicial review. The district court affirmed the Director’s Post-Hearing Order, supporting the agency’s methodology and factual findings.The Supreme Court of the State of Idaho held that it lacked jurisdiction to consider the appeal because the cities failed to petition for review of the operative Sixth Methodology Order in the district court, as required under Idaho administrative law. As a result, the Supreme Court dismissed the appeal for lack of jurisdiction and declined to address the substantive claims raised by the cities. The court also denied requests for attorney fees under Idaho Code section 12-117(1), finding the statute inapplicable, but awarded costs to the prevailing parties. View "City of Idaho Falls v. Idaho Department of Water Resources" on Justia Law

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Two individuals, who were in a long-term romantic relationship but never married, jointly purchased a piece of real property in Idaho. Both names were listed on the purchase and sale agreement and the warranty deed, but there was no specification of their respective ownership interests. After their relationship ended, one party attempted to transfer her interest in the property to a nonprofit and then reacquired it. The other party, who had paid all taxes, utilities, and expenses for the property, sought to quiet title in his name or, alternatively, to partition the property in kind, awarding him the entirety. The parties disputed whether ownership was equal or if one party had sole ownership.The District Court of the Seventh Judicial District, Bonneville County, initially denied both parties’ cross-motions for summary judgment, finding genuine disputes of material fact regarding ownership interests. After the Idaho Supreme Court issued Demoney-Hendrickson v. Larsen, which established a rebuttable presumption of equal ownership when a deed lists two names without specifying interests, the district court granted summary judgment to the defendant, concluding she had a 50% interest and ordering partition by sale. The court also determined the plaintiff had waived any claim for contribution because he had not pleaded it and awarded attorney fees to the defendant under Idaho Code section 12-121.The Supreme Court of the State of Idaho reviewed the case. It held that the district court erred in granting summary judgment to the defendant on the partition claim. The Supreme Court clarified that the plaintiff had provided sufficient evidence to establish a genuine dispute of material fact regarding the parties’ intent about their ownership shares, which should have precluded summary judgment. The court also clarified that a co-tenant listed on a deed can possess a 0% ownership interest, contrary to the district court’s conclusion. However, the Supreme Court affirmed the district court’s determination that the plaintiff had waived any claim for contribution. The Supreme Court reversed the grant of summary judgment on ownership, the denial of reconsideration, and the award of attorney fees, remanding for further proceedings. View "Bedell v. Parsons" on Justia Law

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A group of residents and an association challenged actions taken by the Harris Ranch Community Infrastructure District No. 1 (CID) in Boise, Idaho. The dispute arose after the CID’s board adopted resolutions in 2021 authorizing payments to a developer for infrastructure projects—such as roadways, sidewalks, and stormwater facilities—and issued a general obligation bond to finance those payments. The residents objected to the projects, arguing they primarily benefited the developer, imposed higher property taxes on homeowners, and allegedly violated the Idaho Community Infrastructure District Act (CID Act) as well as state and federal constitutional provisions. Previously, the District Court of the Fourth Judicial District reviewed the matter after the residents filed a petition challenging the board’s decisions. The district court ruled in favor of the CID and the developer, concluding most of the residents’ claims were either time-barred under the CID Act’s statute of limitations or had been waived because they were not preserved before the CID board. The court also found that the remaining claims failed on their merits, holding that the challenged projects qualified as “community infrastructure,” the stormwater facilities satisfied ownership requirements, and the CID was not the alter ego of the City of Boise. On appeal, the Supreme Court of the State of Idaho affirmed the district court’s decision. The Supreme Court clarified that, given the lack of formal administrative proceedings under the CID Act, the preservation doctrine did not apply to bar the residents’ arguments. Nonetheless, the Supreme Court held that any challenge to the CID’s original formation and the 2010 bond election was time-barred. The court further held that the roadways and stormwater facilities qualified as community infrastructure, the CID’s actions did not violate constitutional requirements regarding taxation or lending of credit, and the CID was not the alter ego of the city. The Supreme Court awarded costs on appeal to the CID and the developer but denied attorney fees to all parties. View "Doyle v. The Harris Ranch Community Infrastructure District No. 1" on Justia Law

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Morgan Lohman purchased a 25.8-acre property, knowing that a homeowners’ association, Cave Bay Community Services, Inc., held a permanent easement on 7.31 acres and had an option agreement with the sellers, the Drehers, to purchase the easement land for one dollar once the Drehers’ loans were paid off. Despite concerns about the effect of this option on the value and use of his property, Lohman proceeded with the purchase. After the sale, the Drehers paid off their loans, and Cave Bay exercised its option to buy the easement property for one dollar, which Lohman refused to honor.Cave Bay filed suit against Lohman in the District Court of the First Judicial District of Idaho, alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and seeking specific performance of the option agreement. Cave Bay moved for summary judgment only as to the specific performance “claim.” The district court granted summary judgment to Cave Bay on that basis, struck much of Lohman’s opposing declaration, and awarded Cave Bay attorney fees and costs. The court did not address the merits of the underlying breach of contract claim. After the parties dismissed the remaining claims, Lohman appealed.The Supreme Court of the State of Idaho reviewed the case and held that specific performance is a remedy, not a stand-alone cause of action. The court concluded that the district court erred by granting summary judgment on specific performance without first determining liability on the underlying breach of contract claim. The Supreme Court vacated the district court’s amended judgment, reversed the summary judgment ruling, and remanded the case for further proceedings. The court also vacated the award of attorney fees and costs, but awarded appellate costs to Lohman. No attorney fees were awarded on appeal as there was no prevailing party at this stage. View "Cave Bay Community Services v. Lohman" on Justia Law

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The dispute centers on two neighboring property owners at Priest Lake, Idaho, whose properties are subject to several easements, and who have a history of disagreements concerning the use of a shared beach, lake access, and parking. The parties previously reached a court-mediated settlement agreement addressing these issues, which included a provision for future mediation and arbitration of disputes. Disagreements soon arose, particularly over the construction of a patio by one owner, leading the parties to arbitration as provided by their agreement. The arbitrator, after considering substantial evidence and briefing, ruled in favor of one party on all contested issues, including the patio’s location and construction, the use of easements, and parking arrangements.Prior to this appeal, the District Court of the First Judicial District, Bonner County, reviewed a motion to vacate the arbitration award. The moving party argued that the arbitrator exceeded his authority and was biased, primarily because the award was unfavorable and allegedly altered the terms of the court-approved settlement agreement. After considering the arguments, the district court denied the motion, finding that the arbitrator had acted within the scope of his authority and that no evidence of bias was presented.Upon review, the Supreme Court of the State of Idaho affirmed the district court’s decision. The court held that under Idaho’s Uniform Arbitration Act, judicial review of arbitration awards is extremely limited and does not allow for overturning an award simply due to alleged errors in law or fact, or because the outcome was unfavorable. The court found no evidence that the arbitrator exceeded his authority or acted with bias. Additionally, the court awarded attorney fees on appeal to the prevailing party under Idaho Code section 12-121, concluding the appeal was frivolous and without foundation. The district court’s denial of the motion to vacate was affirmed. View "Khalsa v. Ridnour" on Justia Law

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A nonprofit organization, operating a camp for children with cancer, owned several buildings situated on land owned by a married couple. The couple, both involved in the nonprofit’s leadership, decided to sell the ranch property that included the camp’s buildings. During negotiations, the couple represented to the nonprofit’s board that appraisals did not specify values for the nonprofit's buildings and that the nonprofit’s share of sale proceeds should be calculated by square footage. Relying on these representations, the nonprofit accepted a portion of the sale proceeds. Subsequently, the nonprofit discovered that the appraisals had, in fact, assigned higher specific values to its buildings, resulting in a claim for damages against the couple for misrepresentation, breach of fiduciary duty, and unjust enrichment.The District Court of the Seventh Judicial District granted partial summary judgment to the couple on certain claims, but, after a bench trial, found in favor of the nonprofit on claims for constructive fraud, breach of fiduciary duty, and unjust enrichment. The court calculated the nonprofit’s damages but reduced the award by 50%, applying comparative negligence and the doctrine of avoidable consequences. The court denied attorney fees and prejudgment interest to both parties. Both sides appealed.The Supreme Court of the State of Idaho held that the doctrine of election of remedies did not bar the nonprofit’s appeal, as seeking satisfaction of a judgment is not inconsistent with seeking a greater award on appeal. The Court ruled that it was reversible error for the district court to reduce damages based on comparative negligence or a duty to mitigate, as those doctrines did not apply to the equitable and fiduciary claims at issue. The Court affirmed the district court’s rejection of the couple’s affirmative defenses of superseding intervening cause and unclean hands, as well as the finding that the wife breached her fiduciary duty. The denial of prejudgment interest and attorney fees was affirmed, but the nonprofit was awarded costs on appeal. The case was remanded for entry of judgment in the nonprofit’s favor for the full damages amount and reconsideration of prevailing party status. View "Camp Magical Moments, Cancer Camp for Kids, Inc. v. Walsh" on Justia Law