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| Wyoming Supreme Court Cases |
JOHN G. JENKINS AND CAROL VOIGT JENKINS and JOHNSON COUNTY RANCH IMPROVEMENT #1, LLC, a Wyoming limited liability company V. GERRY MILLER AND MARIE L. MILLER, Trustees of the Gerry and Marie Miller Living Trust, dated September 27, 2004, and MILLER SAND CREEK RANCH, LLC, a Wyoming limited liability company
2008 WY 45
180 P.3d 925
Case Number: S-07-0216
Decided: 04/14/2008
APRIL
TERM, A.D. 2008
JOHN G.
JENKINS AND CAROL VOIGT JENKINS and JOHNSON COUNTY RANCH IMPROVEMENT #1, LLC, a
Wyoming limited liability
company,
Appellants
(Defendants),
v.
GERRY MILLER AND
MARIE L. MILLER, Trustees of the Gerry and Marie Miller Living Trust, dated
September 27, 2004, and MILLER SAND CREEK RANCH, LLC, a
Appellees
(Plaintiffs).
Appeal
from the
The
Honorable John G. Fenn, District Judge
Representing
Appellants:
Kim D.
Cannon and J. Mark Stewart of Davis & Cannon,
Representing
Appellees:
Dennis
M. Kirven and Benjamin S. Kirven of Kirven and Kirven, P.C.,
Before
VOIGT, C.J., and GOLDEN, BURKE, JJ, and DONNELL, KAUTZ,
DJJ.
DONNELL,
District Judge.
[¶1] Appellants, John
G. Jenkins and Carol Voigt Jenkins (“Jenkins”), challenge the district court’s
grant of summary judgment in favor of Appellees, Gerry and Marie Miller
(“Millers”), and sua sponte dismissal
of Jenkins’ counterclaim with respect to a private road easement. Millers had
requested declaratory relief regarding an Easement Deed unilaterally recorded by
Jenkins, the terms of which Millers disputed. Jenkins counterclaimed for a declaration
that the same Easement Deed was valid
and, further, that the parties were bound by an historical oral agreement for
easement. The district court
granted judgment in favor of Millers, concluding that Millers never accepted the
Easement Deed and that there was no
legally enforceable access to Millers’ lands. The court further dismissed Jenkins’
counterclaim on the grounds that Jenkins were precluded from seeking such
declaratory relief, as the decision to pursue an easement rested only with
Millers, as potential grantees/dominant estate owners. We reverse.
ISSUES
[¶2] Jenkins present
the following issues for review:
1. What are the limits on the court’s
discretion to dismiss a claim for declaratory judgment without reaching the
merits?
2. Does the license or easement holder
have the exclusive right to pursue declaratory relief or pursue a statutory
remedy?
3. Does Walton v. Dana, 609 P.2d 461 (
4. Does the mere existence of a
statutory procedure to condemn a private right-of-way under Wyo. Stat. Ann. §§
24-9-101 through 24-9-104 (LexisNexis 2007) bar the owner of the servient estate
from bringing a declaratory action?
5. Do material issues of fact preclude
summary judgment as to whether the Appellees have an easement, irrevocable
license, or a revocable license?
6. Are there factual issues as to
whether the Appellees accepted the benefits of the agreement and subsequently
the recorded Easement Deed?
[¶3] Millers present
similar issues for review:
1. Did the district court abuse its
discretion in dismissing Appellants’ Counterclaim for declaratory
judgment?
2. Did the district court properly
apply the holding in Walton v. Dana
in dismissing Appellants’ Counterclaim for declaratory
judgment?
3. Does Appellees’ Non-Acceptance of
the Easement Deed and Corrective Easement Deed support the district court’s
grant of Appellees’ Motion for Summary Judgment?
4. Does the district court’s dismissal
of Appellants’ Counterclaim constitute harmless error?
5. Does the foundational principle of
equity preclude Appellants from advocating for an irrevocable
license?
FACTS
[¶4] Jenkins own
certain lands located in
[¶5] In 2004, Jenkins
began considering a plan to subdivide their property for residential
development. Jenkins invited
Millers to be included in the development project; Millers declined. In any event, this project brought the
issue of Millers’ access to the forefront.
On September 24, 2004, Jenkins unilaterally filed with the
[¶6] Millers, unhappy
with these restrictions, which they claim were never agreed upon, notified
Jenkins of their objection, first, by letter sent February 7, 2005, and, second,
by filing a Notice of Non-Acceptance of
Easement with the
[¶7] On March 27,
2007, Millers filed their Complaint for
Declaratory Judgment. They
sought a determination from the district court that they had not accepted the Easement Deed granted by Jenkins and
that the Miller property was without legally enforceable access to a public road
as contemplated by Wyo. Stat. Ann. §§ 24-9-101 through 24-9-104. Jenkins answered and filed a
counterclaim for declaratory judgment, seeking the inverse, namely that the
court
declare
the validity of the Easement Deed according to the terms of that deed as it was
executed and recorded on September 24, 2004. The Counterclaimants ask the Court to
declare that it is an appurtenant easement in full force and effect providing
access to the Plaintiffs in accordance with the terms of the
document.
[¶8] On October 27,
2006, Millers moved for summary judgment; Jenkins objected. On May 21, 2007, the district court
heard the matter and ruled from the bench.
That ruling was memorialized in an Order dated July 9, 2007, which states,
in part:
Plaintiffs
are not required to come before this Court prior to petitioning the Board of
County Commissioners for Johnson County for a private right of way pursuant to
Wyoming Statute § 24-9-101 et seq.
There
are no genuine issues of material fact concerning Plaintiffs’ Non-Acceptance on
the Easement Deed, filed September 24, 2004.
There
are no genuine issues of material fact concerning Plaintiffs’ Non-Acceptance of
the Corrective Easement Deed, filed May 16 [sic], 2007.
The
unilateral Easement Deed, filed September 24, 2004, and the Corrective Easement
Deed, filed May 16 [sic], 2007, are null and void for lack of acceptance by
Plaintiffs.
Plaintiffs’
Motion for Summary Judgment on non-acceptance of the unilateral Easement Deed,
filed September 24, 2004, and unilateral Corrective Easement Deed, filed May 16
[sic], 2007, should be granted, as Defendants have not demonstrated any genuine
issues of material fact concerning non-acceptance of the purported easement, and
Plaintiffs are entitled to a judgment as a matter of law.
Plaintiffs’
Motion for Summary Judgment on absence of legally enforceable access to
Plaintiffs’ lands should be granted, as Defendants have not demonstrated a
genuine issue of material fact concerning the lack of legally enforceable
access, and Plaintiffs are entitled to a judgment as a matter of
law.
Defendants’
Counterclaim for a declaratory judgment should be dismissed because the right to
pursue an easement rests exclusively with the petitioners, and Defendants are
precluded from bringing a declaratory judgment action.
Thus,
the district court voided the Easement
Deed and Corrective Easement
Deed; declared Millers without legally enforceable access to their lands;
and dismissed Jenkins’ counterclaim.
This timely appeal followed.
ANALYSIS
[¶9] While the parties
present several issues for review, this Court need consider only two: first, whether the district court erred
in granting Millers’ motion for summary judgment to declare the Easement Deed null and void and to
declare Millers without legally enforceable access to their lands; and, second,
whether the district court erred in dismissing, sua sponte, Jenkins’ counterclaim for
declaratory judgment on the grounds that Jenkins were precluded from bringing an
action to enforce an easement or to determine the validity of an alleged
easement.
I.
Grant of Millers’ Motion for Summary
Judgment
[¶10] The Court first considers the
district court’s decision to grant summary judgment in favor of Millers. The district court’s decision was
two-fold: first, that there were no
genuine issues of material fact with respect to Millers’ “nonacceptance” or
rejection of the Easement Deed such
that the Easement Deed was null and
void and, second, that Millers were without legally enforceable access to their
lands.
A.
Standard of Review
[¶11] “When reviewing an order granting a
summary judgment motion, we consider the record de novo.” Hincks
v. Walton Ranch Co., 2007
WY 12, ¶ 7, 150 P.3d 669, 670 (Wyo. 2007) (citing Knapp v. Landex Corp., 2006 WY 36, ¶ 7,
130 P.3d 924, 926 (Wyo. 2006)).
B.
Consideration of the Easement
Deed, the Corrective Easement
Deed, and Underlying Legally Enforceable Access
[¶12] In specifically addressing the Easement Deed and the “unilateral
easement” recorded by Jenkins, the district court stated:
[The]
Court does not believe there is a material question of fact as to the acceptance
of this unilateral agreement. Based
on that narrow area of law and question, there is no question of fact. Therefore, the Court rules that the
unilateral easement that was filed by Jenkins and the corrective easement is
null and void, having been unaccepted by the Millers, and that based upon the
reasons cited above, the Millers are not required to come to this court to
enforce a potential oral agreement or easement or irrevocable license before
they go to the county commissioners.
[¶13] “An easement is
an interest in real property that is covered by the statute
of frauds,” Turner v.
Floyd C. Reno & Sons, Inc., 696 P.2d 76, 77 (
There
are two essential elements to a legally binding delivery: 1)
transferring possession of the deed by the grantor, and 2) acceptance of the deed by the grantee.
. . .
.
“ * * *
The requisites of acceptance are the grantee’s knowledge of delivery or tender
of the deed, an intention to take the
legal title to the property which the deed purports to convey, and the
manifestation of such intention by some act, conduct, or declaration. * * *
“Acceptance
is primarily a matter of the grantee’s intention; hence the significant inquiry
is as to his intention as manifested by his words and acts. Express words and positive acts are not
necessary; intention to accept may be inferred from such conduct as retaining
possession of the deed, conveying or mortgaging the property, recording the
deed, or otherwise exercising the rights of an owner * * *.” 23 Am. Jur. 2d, Deeds § 175, p. 196
(1983).
The
“acceptance” of a deed, like that of its delivery, is a matter of intention, to
be determined by acts and words of both the grantor and grantee. Fitzpatrick v. Layne, 291
B-T,
Ltd. v. Blakeman, 705
P.2d 307, 312-13 (
[¶14] Here, Millers argued that their
February 7, 2005 letter and April 21, 2005 Notice of Non-Acceptance of Easement
Deed were sufficient to demonstrate rejection of the September 24, 2004 Easement Deed and, thus, to invalidate
it. Jenkins argued that genuine
issues of material fact precluded a determination as to Millers’ acceptance or
rejection of the Easement Deed and/or
any underlying easement. The
district court agreed with Millers and concluded that they had not accepted the
Easement Deed.
[¶15] In favor of Millers, the facts
demonstrate that their February 7, 2005 letter and April 21, 2005 Notice of Non-Acceptance of Easement
Deed express an intent to reject the Easement Deed. On the other hand, the record reveals
that Millers, apparently in an attempt to have it both ways, continued their use
of the gravel road, which use had continued consistently for over twenty
years. Clearly, this continued use
was inconsistent with their denial of any prior agreement and their assertion
that they did not have and never had any legally enforceable right to use the
road Further, Millers delayed
more than four months before their first notification of their rejection of the
Easement Deed. Again, this calls into question their
stated intent. Clearly, the record
could support a conclusion in favor of either party at this point. Where there are genuine issues of
material fact concerning Millers’ intent and acceptance of the Easement Deed, the district court erred
in granting summary judgment. See, e.g., Hasvold v. Park County Sch. Dist.
No. 6, 2002 WY 65, ¶ 24, 45 P.3d 635, 640 (Wyo. 2002).
[¶16] More importantly, the parties, the
district court, and this Court recognize that this litigation involved more than
just the Easement Deed or Corrective Easement Deed; rather, “both
parties asked the [district] court to declare the rights and status of Millers’
access in light of the Easement Deed or
other legally enforceable access.”
(Emphasis added.) In this
respect, Millers’ declaratory judgment claim overlapped Jenkins’ declaratory
judgment counterclaim, which sought a declaration as to the validity of the
underlying appurtenant easement agreement allegedly reflected in the Easement Deed. Thus, the district court also was asked
to determine whether Millers had any legally enforceable access,
which request would encompass possibilities such as an irrevocable license or an
oral easement falling outside the statute of frauds.
[¶17] Even had this Court concluded that
the district court appropriately granted summary judgment as to the effect of
the Easement Deed, it is one thing to
say that Millers timely and appropriately rejected the Easement Deed, but quite another to say
that they had no legally enforceable access to their lands when there was,
arguably, an oral easement or irrevocable license that they historically had
accepted. Indeed, the parties
concede a process of negotiation whereby Millers and Betty Jenkins agreed to
locate the gravel road in its current location in exchange for a grant of a
“permanent easement.” This status quo existed for almost three
decades before Millers decided that the gravel road no longer served their best
interests.
[¶18] Where reasonable inferences drawn
from the parties’ statements and actions create genuine issues of material fact
as to the terms of an agreement, summary judgment is inappropriate. See Ewing v. Hladky Constr., Inc., 2002
WY 95, ¶ 11, 48 P.3d 1086, 1088 (Wyo. 2002); Roussalis v.
II.
Dismissal of Jenkins’ Counterclaim for Declaratory
Judgment
[¶19] Next, we address the district
court’s sua sponte dismissal of
Jenkins’ counterclaim for declaratory judgment. The court dismissed the counterclaim,
stating that “the right to pursue an easement rests exclusively with the
petitioners, and Defendants are precluded from bringing a declaratory judgment
action.”
[¶20] Review of the dismissal of a
counterclaim is de novo. “This Court evaluates the propriety of a
dismissal by employing the same standards and by examining the same material as
the district court, without a presumption of correctness to the conclusions
reached below.” Askvig v. Wells Fargo Bank Wyo., N.A.,
2005 WY 138, ¶ 11, 121 P.3d 783, 787 (Wyo. 2005) (internal citation
omitted). We have addressed the
standard of review regarding sua
sponte dismissals:
Sua
sponte motions
to dismiss a complaint are recognized in
1256,
1259 (
B.
Propriety of Dismissal of Counterclaim: A Grantor’s Right to
Declaratory Judgment Regarding the Validity of an
Easement
i.
Procedure for Sua Sponte
Dismissal
[¶21] Here, the district court dismissed,
sua sponte, Jenkins’ counterclaim for
declaratory relief. Sua sponte dismissals require adherence
to a specific procedure:
The
leading federal decision on sua sponte dismissals under F.R.C.P. 12(b)(6)
is Tingler v. Marshall, 716 F.2d 1109 (6th Cir. 1983). The Tingler court reviewed the
sua sponte dismissal of a complaint on its merits, so federal
jurisdiction was not in question. The court found four reasons why a sua
sponte dismissal under F.R.C.P. 12(b)(6) is not favored. First, the action places the court in the
role of a proponent rather than an independent observer. Second, plaintiffs are prejudiced
because, unlike when a motion to dismiss is filed by a defendant, the plaintiff
is given no opportunity to amend the complaint or make legal arguments against
dismissal. Pro se plaintiffs,
unskilled in legal pleadings, are more likely to suffer acute prejudice. Third, dismissal without service of
process and notice is unfair to defendants because the sua sponte action
of the court deprives the defendants of the opportunity to participate in the
litigation process and places them in the position of having to chose: whether to not participate in an appeal
and risk an adverse decision; or, whether to participate in the appeal and make
arguments based upon matters not in the factual record. Fourth, the sua sponte dismissal
ultimately wastes judicial resources. The dismissal creates an opportunity for
appeal based upon an incomplete record of pleadings and orders resulting in an
inability to make a factual decision on the merits and limiting the appellate
court to decisions on broad legal grounds. Tingler, 716 F.2d at
1111.
Using
its supervisory power, the Tingler court outlined a five-step procedure
for dismissal of complaints, sua
sponte:
(1)
allow service of the complaint upon the defendant; (2) notify all parties of
[the court’s] intent to dismiss the complaint; (3) give the plaintiff a chance
to either amend his complaint or respond to the reasons
stated by the district court in its notice of intended sua sponte
dismissal; (4) give the defendant a chance to respond or file an answer or
motions; and (5) if the claim is dismissed, state [the court's] reasons for the
dismissal.
In an
exercise of this court’s supervisory powers, Wyo. Const. art. 5, § 2, we adopt the federal approach to sua
sponte dismissals under Rule 12(b)(6) including the five-step process
outlined in Tingler. This process assures proper notice and
opportunity to be heard, see Torrey v. Twiford, 713 P.2d 1160 (
Osborn
v. Emporium Videos, 848
P.2d 237, 241-42 (
[¶22] The district court failed to follow
this procedure. As a matter of
course, then, this matter must be remanded to the district court with directions
to follow the procedural steps outlined in Osborn.
ii.
Consideration of Whether Jenkins,
as Grantors, are Precluded from Bringing a Declaratory Judgment
Action
[¶23] The decision to remand this case
based on the district court’s improper grant of summary judgment as to Millers’
declaratory judgment action does not address the propriety of the district court
also dismissing Jenkins’ counterclaim.
The district court dismissed Jenkins’ counterclaim in reliance on Walton v. Dana, 609 P.2d 461 (
[¶24] Historically,
[¶25] The district court used this rule
of law, combined with its conclusion that Millers lacked legally enforceable
access to their lands, in holding that Jenkins were without authority to seek a
declaratory judgment regarding the easement. We agree with the district court’s
conclusion that Millers should be allowed to proceed with a private road
proceeding where there is “no presently existing outlet to or
connection with a public road[.]”
Miller, 4 P.3d at 887
(emphasis in original).3 But this is not the case with which the
court was presented nor can this rule of law logically extend to the conclusion
reached by the district court.
[¶26] The Uniform Declaratory Judgments
Act (“the Act”) authorizes
Any person interested under a deed, will, written
contract or other writings constituting a contract, or whose rights, status or
other legal relations are affected by the Wyoming constitution or by a statute,
municipal ordinance, contract or franchise, may have any question of
construction or validity arising under the instrument determined and obtain a
declaration of rights, status or other legal relations.
See also
Wyo.
Stat. Ann. § 1-37-107 (
[¶27] “A declaratory judgment action may
be brought to determine the right to an easement, or determine the relative rights of
parties affected by an easement,
or whether an easement has been created.” 22A
Am. Jur. 2d Declaratory Judgments §
156 (2003).4 Nothing in the Act,
CONCLUSION
[¶28] The district court erred in
granting summary judgment to Millers, both in its determination that there were
no issues of fact regarding Millers’ acceptance of the Easement Deed and in its conclusion that
there were no issues of fact regarding Millers’ lack of legally enforceable
access to their lands. The district
court further erred in dismissing Jenkins’ counterclaim on the grounds that
Jenkins, as alleged grantors of an easement, were without authority to seek a
declaratory judgment as to the validity of that easement or their rights
thereunder. This matter is reversed
and remanded to the district court for further proceeding consistent
herewith.
FOOTNOTES
1On May 21, 2007, Millers filed a Notice of Non-Acceptance of Corrective
Easement Deed, in response to Jenkins’ filing of Corrective Easement Deed on May 15,
2007.
2
(a) In the following cases every
agreement shall be void unless such agreement, or some note or memorandum
thereof be in writing, and subscribed by the party to be charged
therewith:
(i) Every agreement that by
its terms is not to be performed within one (1) year from the making
thereof;
(ii) Every special promise
to answer for the debt, default or miscarriage of another
person;
(iii) Every agreement, promise or
undertaking made upon consideration of marriage, except mutual promise to
marry;
(iv) Every special promise by an
executor or administrator, to answer any demand out of his own
estate;
(v) Every agreement or contract
for the sale of real estate, or the lease thereof, for more than one (1)
year;
(vi) To charge any person upon, or
by reason of a representation or assurance concerning the character, conduct,
credit, ability, trade or dealings of another, to the intent or purpose that
such other may obtain thereby, credit, money or goods.
3Presently
existing legally enforceable access is different from potential legally enforceable
access. The former apparently
requires previous adjudication as to the legal enforceability of the
access.
4“The
owner of the servient estate may seek a declaration of the scope of use of an
easement, or may seek protection against misuse of the servitude, in tort, and
seek extinguishment of an easement for excessive use. The servient owner also can bring an
action for negligence and wrongful entry, alleging misuse of easement.” 25
Am. Jur. 2d Easements and Licenses §
109 (2004).
5To
preclude a servient estate landowner from seeking declaratory relief would have
the effect of denying him any reliance upon an easement he believed to be
binding. In other words, a
landowner with a potentially enforceable easement could decide he simply no
longer preferred that route and, instead, seek a private road. This Court has emphasized that “a
landlocked landowner is not entitled to seek whatever road he desires or is most
convenient to him.” Ferguson Ranch, Inc. v.
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