Bear Crest Limited LLC v. State of idaho

CourtIdaho Supreme Court
DecidedSeptember 3, 2025
Docket50840
StatusPublished

This text of Bear Crest Limited LLC v. State of idaho (Bear Crest Limited LLC v. State of idaho) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Bear Crest Limited LLC v. State of idaho, (Idaho 2025).

Opinion

IN THE SUPREME COURT OF THE STATE OF IDAHO Docket No. 50840

BEAR CREST LIMITED LLC, an ) Idaho limited liability company; ) YELLOWSTONE BEAR WORLD ) INC., an Idaho corporation; and ) MICHAEL D. FERGUSON, an Idaho ) resident, ) ) Plaintiffs-Appellants, ) Boise, February 2025 Term ) v. ) Opinion Filed: September 3, 2025 ) STATE OF IDAHO acting by and ) Melanie Gagnepain, Clerk through the IDAHO ) TRANSPORTATION DEPARTMENT, ) ) Defendant-Respondent. ) ____________________________________)

Appeal from the District Court of the Seventh Judicial District of the State of Idaho, Madison County. Joel E. Tingey, Senior District Judge.

The district court’s order granting summary judgment is reversed in part, judgment is vacated, and the case is remanded for further proceedings consistent with this opinion.

Holden Kidwell Hahn & Crapo, PLLC, Idaho Falls; Fabian VanCott, Salt Lake City, for Appellants. Scott M. Lilja argued.

Raúl R. Labrador, Idaho Attorney General, Boise, for Respondent. Gary D. Luke argued.

_________________________________

BEVAN, Chief Justice. This appeal concerns the Idaho Transportation Department’s (ITD) decision to close an intersection on Highway 20. Yellowstone Bear World Inc., Bear Crest Limited LLC, and Michael Ferguson (collectively “Appellants”) are associated with a drive-through wildlife park known as Yellowstone Bear World (“Bear World”), a tourist attraction in Madison County near the intersection of County Road 4300 and Highway 20. In 2016, as part of ITD’s expansion plan to turn Highway 20 into a controlled-access highway, ITD closed the intersection closest to Bear

1 World. As a result, Bear World must now be accessed from the Thornton Interchange, which is located about one and a half miles north of the closed intersection. The closure of the intersection means visitors must drive approximately five additional miles on county roads to visit Bear World. Appellants brought claims against ITD for breach of contract and inverse condemnation. Both the Appellants and ITD moved for summary judgment. The district court granted ITD’s motion for summary judgment and dismissed Appellants’ complaint. This appeal followed. For the reasons below, we reverse the district court’s decision, vacate its judgment, direct entry of partial summary judgment in Bear Crest Limited’s favor as to breach of contract and inverse condemnation, and remand.

I. FACTUAL AND PROCEDURAL BACKGROUND The Appellants in this case are associated with Bear World, a tourist destination animal attraction located near the intersection of County Road 4300 and Highway 20 in Madison County, Idaho. Michael Ferguson is the owner and manager of Bear Crest Limited LLC (“Bear Crest”), and the owner, director, and registered agent of Yellowstone Bear World Inc. Bear Crest owns nine parcels of real property and leases them to Yellowstone Bear World Inc. Yellowstone Bear World Inc. is an Idaho corporation that owns no real property. Ferguson owns one parcel of land in the vicinity which he bought in 2001. In the early 1970s, Ross and Lisa Gideon owned about 146 acres in Madison County, some of which abutted Highway 20. In 1973, ITD acquired around seven acres of the Gideons’ property as part of a project to expand and improve Highway 20.1 The Gideons conveyed this acreage in fee simple to ITD, agreeing to limit the uses of their remaining property in certain ways, and transferring to ITD certain rights of access to Highway 20 from their remaining property, while reserving certain rights, as follows: TOGETHER with all rights of access between the right of way of the said project and the remaining contiguous property belonging to Grantors, except for: Access to the County Road Connection. Critical to this appeal is the meaning of the language expressly reserving “Access to the County Road Connection.”

1 The project was initiated by ITD’s predecessor, the State Department of Highways.

2 ITD also acquired property from other landowners in proximity to the Gideon property, including the Nelsons and the Allreds. In 1998, Bear Crest purchased the remaining portion of the original Nelson property that was not sold to ITD in 1974 and leased that land to Yellowstone Bear World Inc. for operating Bear World. In 2004, Bear Crest acquired 1.5 acres of the Gideons’ remaining property. In 2010, Bear Crest acquired another 26 acres of the Gideons’ property. All these parcels are contiguous. From 1998 to 2016, Bear World was immediately accessible from Highway 20. A visitor simply turned from Highway 20 directly onto County Road 4300 and arrived at the park. A map of Appellants’ property with a chart showing the various ownership interests over time is included below.

3 Beginning in 2005, ITD began reconstructing Highway 20 as part of a plan to make it a controlled-access facility. A “[c]ontrolled-access facility” is a “highway especially designed for through traffic to which owners or occupants of abutting land have no right or easement or only a controlled right or easement of access by reason of the fact that their property abuts upon the controlled-access facility.” I.C. § 40-104(9). Prior to 2005, Highway 20 contained many “at-grade intersections.” An at-grade intersection is one in which traffic meets and crosses without an overpass structure to separate traffic into different levels. County Road 4300 crossed Highway 20 with an at-grade intersection. In contrast, controlled-access highways contain very few (if any) at-grade intersections. On a controlled-access highway, vehicles may not turn across lanes of oncoming traffic and must enter or exit the highway through an interchange. Controlled-access highways improve safety, reduce vehicle collisions, and allow for increased speed limits. Ultimately, in 2016, ITD closed the intersection of County Road 4300 and Highway 20, where Bear World is located. Consequently, Bear World visitors must now exit Highway 20 via an overpass at the Thornton Interchange located about 1.5 miles north of the eliminated intersection of County Road 4300 and Highway 20. From there, visitors may access Bear World in two ways: either by (1) County Road 4300 or (2) Bear World Road—both of which are county roads under the control of and maintained by Madison County. Of note, Bear World Road was not completed until 2019. When the intersection was closed, the only access to Bear World was from County Road 4300. A visitor driving south who misses the Thornton Interchange must continue south for about three miles, pass Bear World, exit Highway 20, re-enter and drive about three miles north, and exit at the Thornton Interchange. After closure of the intersection at County Road 4300 and Highway 20, the Appellants sued the State of Idaho (acting through ITD) and brought two distinct claims. First, Appellants alleged that ITD’s actions constituted an inverse condemnation. Appellants argued that they owned an easement or contractual right to the intersection of County Road 4300 and Highway 20 that had been taken without just compensation. Appellants relied on three alternative theories to support their claims: (1) ITD’s actions were a direct taking of Bear Crest’s property interests in the access reserved in the Gideon deed. See Day v. Transportation Dep’t, 166 Idaho 293, 301-302, 458 P.3d 162, 170-71 (2020); (2) ITD’s closure of the intersection near the Bear Crest property amounted to a taking of property that was dedicated to the public trust as an access easement. See Killinger

4 v. Twin Falls Highway Dist., 135 Idaho 322, 327, 17 P.3d 266, 271 (2000); and (3) ITD’s actions “destroyed or substantially impaired” the right of access to Highway 20 that Appellants held as abutting landowners. See State, Idaho Transp. Bd. v. HI Boise, LLC, 153 Idaho 334, 338, 282 P.3d 595

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