Avista Corp. v. Sanders County

485 F. Supp. 2d 1176, 2007 U.S. Dist. LEXIS 33002, 2007 WL 1334486
CourtDistrict Court, D. Montana
DecidedMarch 19, 2007
DocketCV 05 201 M JCL
StatusPublished
Cited by1 cases

This text of 485 F. Supp. 2d 1176 (Avista Corp. v. Sanders County) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Avista Corp. v. Sanders County, 485 F. Supp. 2d 1176, 2007 U.S. Dist. LEXIS 33002, 2007 WL 1334486 (D. Mont. 2007).

Opinion

ORDER

LYNCH, United States Magistrate Judge.

At issue in this litigation is ownership of a former railroad right of way established under the Northern Pacific Land Grant Act of 1864. . The parties have filed cross-motions for summary judgment, which are fully briefed. Following a hearing, and the Court’s review of the briefs and other materials of record,

IT IS ORDERED that the individual Defendants’ motion for summary judgment is GRANTED, and the Plaintiffs motion for summary judgment is DENIED.

RATIONALE

I. Background

The parties do not dispute the following material facts. In 1864, Congress passed the Northern Pacific Railroad Company Land Grant Act, 13 Stat. 365 (“1864 Act”), which established the Northern Pacific Railroad for purposes of building and maintaining a railroad from Lake Superior to Puget Sound. Section 2 of the 1864 Act granted the railroad a 400-foot wide right of way, extending “200 feet in width on each side of said railroad where it may pass through the public domain.”

By the early 1880s, the Northern Pacific Railroad had constructed its rail line on the south bank of the Clark Fork River, over what would later be surveyed as Government Lot 5 of Section 24 in Township 26 North, Range 33 West. In 1921, Arthur Hampton acquired the patent to Government Lot 5 under the Homestead Act of 1862, 12 Stat. 392. 1 Defs.’ Br. in Support (Nov. 16, 2006), Ex. 1. The patent purported to convey all of Government Lot 5, and contained no mention of Northern Pacific’s pre-existing right of way.

In the early 1950s, Avista Corporation Inc.’s predecessor, Washington Water Power (WWP), began construction of the Cabinet Gorge Dam in Idaho, thereby creating the Cabinet Gorge Reservoir on the Clark Fork River. To fill the reservoir, WWP needed to secure either fee title to the shoreline or water flowage easements over shoreline property. Accordingly, in July 1952, Arthur Hampton’s widow, Fan *1179 ny Hampton, deeded “[a]ll that part of Government Lot 5... lying north of the Northern Pacific right of way” to Avista Corporation Inc.’s predecessor, Washington Water Power (WWP). Defs.’ Br. in Support, Ex. 3. The deeded area was less than one acre in size, and bordered on the north by the Clark Fork River. Defs.’ Br. in Support, Ex. 3. Approximately one year later, in July 1953, Northern Pacific purported to relinquish to the United States the northernmost 100 foot wide strip of the right of way. Defs.’ Br. in Support, Ex. 4 and 5. Then, in December 1956 Northern Pacific granted WWP a flowage easement “to the extent of its legal right to do so,” on what appears to be the northern edge of the right of way in Government Lot 5. Defs.’ Br. in Support, Ex. 8.

In the meantime, in July 1955, Northern Pacific agreed with WWP to abandon its right of way on the south side of the Clark Fork River and relocate its rail line to the north side of the river. Defs.’ Br. in Support, Ex. 6. This would facilitate WWP’s efforts to construct and maintain a hydroelectric power dam and reservoir, known as the Noxon Rapids Hydro-electric Development, on the Clark Fork River. Defs.’ Br. in Support, Ex. 6. By late 1957, Northern Pacific’s rail line had been relocated to the north side of the Clark Fork River and the railroad had released its track and other personal property on the south side of the river to WWP. Defs.’ Br. in Support, Exs. 10,11,12.

Several months later, counsel for WWP expressed concern that title to the right of way might revert to the United States or vest in another third party, presumably under 43 U.S.C. § 912, a federal statute designed to address the disposition of abandoned railroad rights of way. Defs.’ Br. in Support, Ex. 13, 14. To avoid such a result, WWP asked Northern Pacific to convey title to the right of way to Sanders County. Defs.’ Br. in Support, Ex. 14. Northern Pacific acquiesced and executed a quitclaim deed on October 1, 1958, conveying its interest in several portions of the right of way, including that portion traversing Government Lot 5, to Sanders County. Defs.’ Br. in Support, Ex. 15. Also on October 1, 1958, Northern Pacific executed a bill of sale for the tracks and structures on the right of way. 2 Defs.’ Br. in Support, Ex. 15 p. 4. Sanders County accepted the quitclaim deed on February 8, 1961, and public use of a road over the former railroad right of way began in the early 1970s. Defs.’ Br. in Support, Exs. 18, 20.

Sanders County has since questioned the efficacy of that transfer, and has for some time taken the position that it holds only road easements on the former railroad right of way rather than fee title. In 2004, in an attempt to clarify the state of title to the former right of way, Sanders County quitclaimed to Arthur and Fanny Hampton’s descendants any and all of its interest in Government Lot 5 and the southwest quarter of the northwest quarter of Section 24. Defs.’ Br. in Support, Ex. 21. In doing so, the County reserved two 60-foot public rights of way. Defs.’ Br. in Support, Ex. 21.

The descendants to whom Sanders County quitclaimed its interest are the individual Defendants in this litigation, 3 *1180 and are now embroiled in a dispute with Avista Corporation Inc. (“Avista”) over who has title to the former railroad right of way. Avista contends that Sanders County has title pursuant to the 1958 quitclaim deed, and maintains that the County’s subsequent attempt to quitclaim the property to the individual Defendants in 2004 was of no legal effect. Alternatively, Avista claims that title vests in it and the individual Defendants, as adjacent landowners, with each taking to the center line of the former right of way. The individual Defendants disagree, and maintain that title lies solely with them under federal law, as the descendants of the original paten-tee.

Avista commenced this action against the individual Defendants and Sanders County for the purpose of resolving this title dispute.' 4 Complaint (Dec. 27, 2005). Avista asserts declaratory judgment and quiet title claims, seeking a declaration by this Court “regarding the ownership of the right of way traversing Government Lot 5... ” and quieting title in Sanders County. Amended Complaint, ¶¶ 21-32 (Sept. 1, 2006). Avista also claims that Sanders County acted negligently by disclaiming its interest in the right of way to the individual Defendants without first giving notice and public hearing. 5 Amended Complaint, ¶¶ 33-38.

This ease is ripe for determination on the parties’ pending cross-motions for summary judgment. 6

II. Summary Judgment Standards

A party moving for summary judgment bears the burden of demonstrating “that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P.

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485 F. Supp. 2d 1176, 2007 U.S. Dist. LEXIS 33002, 2007 WL 1334486, Counsel Stack Legal Research, https://law.counselstack.com/opinion/avista-corp-v-sanders-county-mtd-2007.