Amethyst Land Co., Inc. v. Terhune

2013 NMCA 059, 4 N.M. 69
CourtNew Mexico Supreme Court
DecidedMay 10, 2013
DocketNo. 34,083; Docket No. 31,165
StatusPublished
Cited by1 cases

This text of 2013 NMCA 059 (Amethyst Land Co., Inc. v. Terhune) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amethyst Land Co., Inc. v. Terhune, 2013 NMCA 059, 4 N.M. 69 (N.M. 2013).

Opinion

OPINION

VANZI, Judge.

Appellant Amethyst Land Co., Inc. (Amethyst) and Appellees James F. Terhune and Elizabeth R. Terhune (the Terhunes) are adjoining property owners in Santa Fe County, New Mexico. For several years, access to the property now owned by Amethyst was provided by a 40-foot, non-exclusive roadway and utility easement located on the land now owned by the Terhunes. In 2001, when the Terhunes purchased their property, a predecessor in interest to Amethyst and the Terhunes signed an Extinguishment Agreement to terminate this easement. However, before the Extinguishment Agreement was recorded in the county clerk’s office, the predecessor sold its property to Desert Sunrise, LLC (Desert Sunrise), who was unaware of the Extinguishment Agreement and who later sold the property to Amethyst.

In 2006, Amethyst filed suit against the Terhunes in district court, claiming that the easement had not been terminated by the Extinguishment Agreement and that a second easement on the Terhunes’ land also benefitted its property. The district court entered judgment in favor of the Terhunes, and Amethyst appeals. We reverse the district court’s ruling that the easement providing ingress/egress to Amethyst’s property has been extinguished, and we affirm the district court’s ruling as to the second easement.

BACKGROUND

Amethyst holds title to a 22-acre parcel of land located in Santa Fe County, New Mexico, which is referred to as “the 22-acre parcel” throughout this Opinion. The Terhunes own a 5-acre parcel adjacent to Amethyst’s property, which is referred to as “Tract 3.” The subject of the parties’ dispute are two easements that run across Tract 3, which Amethyst claims benefit the 22-acre parcel. The first easement is a 40-foot, non-exclusive roadway and utility easement (the 40-foot easement) providing access to Tract 3 as well as across Tract 3 to the 22-acre parcel. Since at least 1979, access to both properties has been provided by a road known as Coyote Mountain Road located on the 40-foot easement from Old Santa Fe Trail. The second easement at issue in this case is an express easement created in 1981 (the 1981 easement). We set forth the relevant history of each of these easements followed by the procedural history of this case.

The 1981 easement was created by an express written conveyance that described the 1981 easement as “an access-egress-underground utility easement along and across certain real estate described as Tracts 2 and . . . 3.”

The 40-foot easement was created by John W. Turner and Marion T. Turner in 1979 in the Turners’ warranty deed for sixty acres to Peter Pineda and Lewis Greer. The warranty deed reserved the easement for the benefit of the 22-acre parcel, which was also owned by the Turners at the time. In 1983, the Turners conveyed the 22-acre parcel to MacDuffee, including the 40-foot easement, by warranty deed. Also in 1983-, Ocia Peters, Alice Peters, and Caroline Schindler conveyed Tract 3 to Keith MacDuffee via warranty deed. That warranty deed likewise included the existing 40-foot easement providing access to Tract 3, as well as across Tract 3 to the 22-acreparcel. Accordingly,in 1983,MacDuffee owned both Tract 3 and the 22-acre parcel.

On or about February 16, 2001, MacDuffee and his wife signed a warranty deed conveying Tract 3 to the Terhunes. The warranty deed was signed on February 16, 2001, notarized on February 29, 2001, and recorded on March 7, 2001. The Terhunes’ warranty deed specifically stated that Tract 3 remained burdened by the 40-foot easement. Thus, at the time it was acquired by the Terhunes, Tract 3 continued to be expressly burdened by the 40-foot easement that provided access to the 22-acre parcel.

The parties agree that the Terhunes required that the MacDuffees sign an “Extinguishment Agreement” to extinguish access across Tract 3 to the 22-acre parcel as a precondition to their purchase of Tract 3. The Terhunes’ attorney prepared the Extinguishment Agreement, which was signed by the MacDuffees on March 5, 2001,1 and by the Terhunes on April 12, 2001. The MacDuffees delivered the Extinguishment Agreement to the T erhunes prior to the March 7, 2001 closing. However, the Terhunes did not record the Extinguishment Agreement when they recorded the warranty deed and boundary survey for Tract 3 on March 7, 2001.

On March 20,2001, the MacDuffees gave a special warranty deed for the 22-acre parcel to Desert Sunrise, LLC (Desert Sunrise), which was recorded by Desert Sunrise on April 25, 2001. Five days later, on April 30, 2001, the Terhunes recorded the Extinguishment Agreement. On the date that the Extinguishment Agreement was recorded, the MacDuffees no longer owned the 22-acre parcel, having already sold that parcel to Desert Sunrise.

Approximately two years after it acquired the 22-acre parcel, Desert Sunrise sold the parcel to Amethyst by a quitclaim deed that was recorded on April 30, 2003. Following the purchase of the property, Amethyst’s attorney performed and completed a records search and subsequently prepared corrected deeds that contained the information he located in the records concerning the easements. Amethyst’s attorney then prepared corrected deeds for the transfer of the 22-acre parcel from the MacDuffees to Desert Sunrise, as well as for the subsequent transfer from Desert Sunrise to Amethyst. Thus, the MacDuffees signed a special warranty deed corrected as to Desert Sunrise, which was recorded on September 8, 2003. Desert Sunrise next signed a newly conforming and correcting quitclaim deed to Amethyst, which was recorded on September 22, 2003. One of the documents Amethyst’s attorney found in his record review, and subsequently referenced in both of the corrected deeds, was the Extinguishment Agreement.

Procedural History

In 2006, Amethyst filed a declaratory action against the Terhunes in district court, claiming that the 40-foot easement and the 1981 easement both provided access to and benefitted the 22-acre parcel. Amethyst specifically claimed that the Extinguishment Agreement was of no force and effect. The district court ruled on summary judgment that the 1981 easement does not benefit the 22-acre parcel. A bench trial took place on all remaining issues shortly thereafter, and the district court entered judgment in favor of the Terhunes on the 40-foot easement, determining that the 40-foot easement had been extinguished across Tract 3. Specifically, the district court found that the Extinguishment Agreement was valid and effective; that the Extinguishment Agreement was in the public record at the time Amethyst acquired the 22-acre parcel; that Desert Sunrise and Amethyst, by their corrected deeds, acquiesced to the vacation of the easement across Tract 3; and that Amethyst was equitably estopped by its prior actions from denying the extinguishment of the 40-foot easement on Tract 3. This appeal timely followed.

DISCUSSION

Amethyst appeals the district court’s determination that (1) the 40-foot easement had been extinguished across Tract 3 and (2) that the 1981 easement does not benefit the 22-acre parcel. We address Amethyst’s specific arguments with respect to each easement in turn.

A. The 40-Foot Easement

Amethyst contends that the district court improperly enteredjudgmentthatthe 40-foot easement had been extinguished across Tract 3.

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Related

Amethyst Land Co., Inc. v. Terhune
2013 NMCA 59 (New Mexico Court of Appeals, 2013)

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Bluebook (online)
2013 NMCA 059, 4 N.M. 69, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amethyst-land-co-inc-v-terhune-nm-2013.