Justia Idaho Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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Appellants Brett and Jenny Terrell appealed a district court’s decision to grant Respondent Paradis de Golf Holding, LLC attorney fees under Idaho Code section 12-120(3). In February 2020, the “Terrells”) sued Paradis for an alleged violation of a recreational easement. In early 2004, Prairie Golf, LLC conveyed to BRMC, LLC a “perpetual, nonexclusive ‘recreational easement’ upon, over, through and across [Prairie Golf’s] property[.]” The easement was appurtenant to and ran with BRMC’s property, which was to be subdivided into 52 single-family residential lots (“the Grayling Estates subdivision”). The easement instrument stated that “each purchaser/owner of a Lot shall be entitled to the benefit of this easement,” which included the ability to play golf for free at a nearby golf course owned at the time by Prairie Golf. In early 2006, the Terrells purchased a home in the Grayling Estates subdivision, which benefitted from the recreational easement. In April 2014, Paradis acquired the golf course subject to the recreational easement. In 2019, Paradis began developing property within the golf course boundary area, which included converting a par five hole to a par three hole and removing a driving range. Paradis then developed residential lots on the excess property where the driving range and part of the par five golf hole used to be. Believing that these developments infringed upon their easement rights, the Terrells sued Paradis. The parties proceeded to arbitration for resolution of their dispute. The arbitrator rendered a decision in Paradis’ favor, finding that none of Paradis’ alterations to the golf course infringed upon the Terrells’ easement rights. Following the arbitration proceedings, Paradis moved for attorney fees under Idaho Code section 12-120(3). The Idaho Supreme Court found the district court erred in concluding that an award of fees was appropriate under section 12-120(3): "Our caselaw is clear that transactions for personal or household purposes do not constitute a commercial transaction for purposes of section 12-120(3)." View "Terrell v. Paradis de Golf Holding, LLC" on Justia Law

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This appeal concerned the existence of an easement across a lot (“Lot 20”) in the Greenbriar Estates subdivision. In 2004, John Esposito acquired two adjacent parcels of land. The northern parcel contained a mini storage unit for use by the residents of the Greenbriar Estates (the “Mini Storage Lot”), while Esposito planned to develop the southern parcel into a recreational vehicle storage lot1 (the “RV Lot”) and to additionally build several more homes. The only access to the planned RV Lot at the time of severance was through the northern parcel. However, no access easement either existed or was created at the time that the northern and southern parcels were severed from the Greenbriar subdivision. Once he completed the development of the subdivision, Esposito quitclaimed the common areas within the subdivision to the Greenbriar Estates Homeowners’ Association (the “HOA”). The HOA subsequently contested Esposito’s use of Lot 20 to access the RV Lot. After Esposito and the HOA began litigating this dispute, the parties entered into two partial settlement agreements: one in 2012 and the second in 2014. In 2013, during the ongoing litigation, Esposito defaulted on his payments for the RV Lot and mortgage-holder D.L. Evans Bank foreclosed. In 2014, Esposito, who no longer owned the RV Lot, settled all existing claims with the HOA in the 2014 total settlement agreement; however, the 2014 agreement did not refer to the RV Lot. Several years later after executing the 2014 settlement agreement, Esposito reacquired the RV Lot from the Bank and resumed his efforts to transform the parcel into RV storage and additional homesites. Once Esposito began developing the RV Lot and using Lot 20 to access it, the HOA again filed suit in district court, alleging Esposito had no right to use Lot 20. The district court granted the HOA’s request to quiet title to Lot 20 but denied the HOA’s request for attorney fees. Esposito and the HOA both appealed the district court’s decisions. Finding no reversible error in the district court's decision, the Idaho Supreme Court affirmed. View "Greenbriar Estates Homeowners' Association, Inc. v. Esposito" on Justia Law

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Stephanie Owens appealed a district court’s order affirming the findings of fact and conclusions of law made by the Ada County Board of Commissioners (the “Board”) in which it determined that Owens was an “applicant” under the Medical Indigency Act (the “Act”) and, therefore, required to pay reimbursement for the medical expenses incurred by her two children at public expense. In 2017, Owens’s children were involved in a serious car accident and suffered substantial injuries, which later resulted in the death of one of the children. Because the children’s father, Corey Jacobs, was unable to pay for the children’s medical bills, he filed two applications for medical indigency with the Board. Owens and Jacobs were never married and did not have a formal custody agreement for their children. At the time of the accident, the children resided with their father. The Board determined that Owens and her children met the statutory requirements for medical indigency. Although Jacobs filed the applications for medical indigency, the Board concluded that Owens was also an “applicant” under the Act and liable to repay the Board. As a result, the Board “recorded notices of statutory liens” against Owens’s real and personal property and ordered Owens to sign a promissory note with Ada County to repay the medical bills. Owens refused to sign the note and instead challenged the sufficiency of her involvement with the applications via a petition for reconsideration with the Board and a subsequent petition for judicial review. Both the Board and the district court ultimately concluded that Owens was an “applicant” and liable for repayment of a portion of the children’s medical bills. Owens timely appealed. The Idaho Supreme Court reversed: because she never signed the medical indigency applications for her children and she did not affirmatively participate in the application process, Owens was not an "applicant" as defined by the Act. As a result, the Board acted outside its authority when it ordered Owens to reimburse Ada County for its expenses and when it placed automatic liens on her property. View "Owens v. Ada County Board of Commissioners" on Justia Law

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BrunoBuilt, Inc., was constructing a custom home on a vacant lot in 2016 when a landslide occurred beneath the Terra Nativa subdivision in the Boise foothills. Following damage to the lot, BrunoBuilt filed a professional negligence suit against numerous engineers and engineering firms involved in the construction of the subdivision, arguing that they failed to identify preexisting landslide conditions and other geological circumstances that made residential development unsafe at this site. In the fall of 2018, BrunoBuilt discovered additional damage to the finished custom home itself. It then brought suit against additional defendants, including Briggs Engineering, Inc., and Erstad Architects. Briggs Engineering moved for summary judgment, which the district court granted. The court concluded that BrunoBuilt’s action was time barred by the two-year statute of limitations under Idaho Code section 5-219(4). BrunoBuilt appealed this decision, arguing that the malpractice claim did not begin to accrue until there was damage to the custom home, rather than just the land. To this the Idaho Supreme Court disagreed with BrunoBuilt’s analysis and affirmed the district court that BrunoBuilt’s claim was time barred. View "Brunobuilt, Inc. v. Briggs Engineering, Inc." on Justia Law

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This appeal involved a dispute over ownership of one-third of an acre of land between two parcels near Slate Creek, Idaho. The disputed one-third acre was located south of a fence erected in the 1970s by the family of the current owners of the southern parcel, the Basses, and the predecessors-in-interest to the northern parcel’s current owners, the Esslingers. The district court granted summary judgment for the Basses, declined to take judicial notice of a case file from a 2006 quiet title action concerning the northern parcel, found that a boundary by agreement existed at the historic fence line, denied a motion to continue the summary judgment hearing pending criminal trespass charges against the Esslingers, and granted the Basses $107,134.32 in treble damages. After review, the Idaho Supreme Court affirmed the district court’s decisions. View "Bass v. Esslinger" on Justia Law

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Kent and Linda Whitham, trustees of the Kent G. Whitham and Linda M. Whitham Revocable Trust, owned a property that benefitted from the use of a forty-foot private road easement that they and several neighbors used to access their homes in rural Bonner County, Idaho. Jeff Creamer owned a portion of the land that was encumbered by the easement. The easement consisted of a dirt road that was prone to erosion in the spring following snow melt and heavy rainfall. Because their property benefits from the easement, the Whithams took much of the responsibility for the maintenance of the road. In an effort to combat erosion, Creamer installed a French drain across a portion of the roadway that ran on his property. Kent Whitham then filled in the drain with dirt, rendering it inoperable. Creamer then re-installed the French drain. This back-and-forth conduct repeated itself several times and ultimately led the parties to district court in Bonner County when the Whithams sued Creamer. After a bench trial, the district court permitted Creamer to install a French drain on a portion of the roadway easement that encumbered his property and prohibited the Whithams from interfering with the drain. Both parties appealed. The Idaho Supreme Court affirmed the district court’s findings that the Whithams created an additional burden on the Creamer property and acted negligently when Kent filled in the French drain. However, the Court vacated the district court’s failure to award damages to Creamer to repair the French drain. The district court’s declaration allowing Creamer to install French drains across the portions of the Private Road Easement that ran through his property and prohibiting the Whithams from interfering with those installations, was affirmed. The Court also affirmed the district court’s failure to address Creamer’s common law trespass claim because the claim was subsumed by the negligence claim, and the trial court properly dismissed Creamer’s statutory trespass claim because Kent was within the easement when he filled in the French drain. View "Whitham v. Creamer" on Justia Law

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Treasure Valley Home Solutions, LLC, (“TVHS”) filed a complaint against Richard Chason alleging breach of contract and requesting specific performance of a real estate purchase contract after Chason refused to move forward with the transaction. Chason moved for summary judgment, arguing the Agreement lacked definite terms and was therefore unenforceable. The district court granted Chason’s motion for summary judgment after concluding the Agreement was a mere “agreement to agree.” The district court also awarded Chason attorney fees. TVHS appealed both orders. The Idaho Supreme Court concluded after review that the district court did not err when it granted Chason’s motion for summary judgment because a valid contract was never formed between the parties. However, the district court erred when it awarded Chason attorney fees pursuant to Idaho Code section 12-120(3) because the evidence did not establish that a commercial transaction was the gravamen of the claim between TVHS and Chason. Neither party was awarded attorney fees or costs on appeal. View "Treasure Valley Home Solutions, LLC v. Chason" on Justia Law

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In this appeal, the issue presented was whether a contract for the sale of business assets also contained language conveying an enforceable leasehold interest in real property in favor of the buyer. At summary judgment, the district court determined that the Ellis Family Trust owned the real property underlying this leasehold dispute, and that the contract selling the assets of Pullover Prints Corporation (“PPC”) to 616, Inc. (“616”) did not convey a leasehold interest to 616 because material terms necessary to form a valid and enforceable lease were missing. Instead, the district court concluded that the contract involving the sale of assets only contained an “agreement to agree” on the terms of a written lease at a later date. Accordingly, the district court entered judgment in favor of the Ellis Family Trust. 616 appealed, arguing that all material terms necessary to form a valid and enforceable lease could be found within the asset contract. Respondents PPC, Mae Properties, LLC (“Mae”), and Ellis in his individual capacity and in his capacity as trustee for the Ellis Family Trust, cross-appealed the district court’s decision regarding their collective motion for attorney fees. Finding no reversible error in either the appeal or cross-appeal, the Idaho Supreme Court affirmed. View "616 Inc. v. Mae Properties, LLC" on Justia Law

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In 2019, an Idaho district court granted Respondents Matthew and Bonnie Latvalas’ claim for a prescriptive easement over a road known as “South Camp Bay Road” to reach their property located on the shores of Lake Pend Oreille. Because the prescriptive easement was created by the operations of an active mine, the district court determined that the scope of the easement included the ability to transport labor and materials to build a home on the Latvalas’ property. In Latvala v. Green Enterprises, Inc., 485 P.3d 1129 (2021) (Latvala I), the Idaho Supreme Court affirmed the district court’s determination that the Latvalas had a prescriptive easement over South Camp Bay Road. However, the Court vacated the district court’s judgment after concluding it had impermissibly expanded the scope of that easement. On remand, the parties disputed whether the Supreme Court’s decision prohibited the Latvalas’ proposed residential use of South Camp Bay Road, or only the construction of a residence on the Latvalas’ property. The district court entered a second amended judgment that prohibited the Latvalas from using South Camp Bay Road to construct a residence on their property, but did not restrict the Latvalas from using the road for residential purposes. Appellants Green Enterprises, Inc., James and and Julie Frank, and Larimore and Kathryn Cummins (neighboring landowners) timely appealed. Finding no reversible error in the latter district court judgment, the Supreme Court affirmed: “Because possibly driving across South Camp Bay Road will do nothing to increase the burden on the servient landowners, we affirm the district court’s second and third amended judgments because they are consistent with our holding in Latvala I. The Latvalas may not use South Camp Bay Road to build a residence; they may drive along Camp Bay Road to access a residence. Whether and to what extent that burden may or could change in the future is a question for another day. On the record before us we will not hypothesize on what the outcome would be under those theoretical scenarios.” View "Latvala v. Green Enterprises, Inc." on Justia Law

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The issue this case presented for the Idaho Supreme Court's review centered on the scope of a statutory ditch right-of-way, whether a prescriptive easement could be obtained for overspray from an irrigation pivot, and whether a license agreement could bind succeeding property owners. Historically, the Lavertys flood irrigated their property. In 1999, a pivot irrigation system was constructed on the land now owned by the Chesters. The pivot was designed to intentionally spray water onto parcels 2 and 3 to maximize the irrigation coverage on the Chesters’ property. Irrigation water for that pivot (and for flood irrigation before it) was delivered to the Chesters’ property from the Gini canal through a series of ditches. Parcels 2 and 3 were subject to a ditch easement provided for in a deed executed between the Lavertys and Bevilaqua in 1986 (the “Confirmation Deed”); the Chesters were the Lavertys’ successors in interest with respect to the ditch easement discussed in the Confirmation Deed. In 2009, Dolly Smith, another former owner of parcels 2 and 3, installed a ten-inch diameter culvert in a portion of the North ditch. The Chesters disagreed with the size of the pipe and executed and recorded a license agreement with Smith to govern the installation of a new culvert. In October 2016, Wild Idaho purchased parcels 2 and 3. The relationship between Wild Idaho’s owner, Kyle Arneson, and the Chesters quickly soured. Various disputes between the parties led to Arneson restricting the Chesters’ access to Wild Idaho’s property in the spring of 2017. The Supreme Court concluded the district court's order defining the scope of the Chesters' ditch right-of-way was affirmed in part and reversed in part. The Court found the district court erred in denying the Chesters’ prescriptive easement defense to Wild Idaho’s nuisance and trespass claims. But the district court did not err in striking the license agreement as an unreasonable cloud on Wild Idaho’s title. View "Chester v. Wild Idaho Adventures RV Park, LLC" on Justia Law