Bourne v. Stewart Title

2011 DNH 204
CourtDistrict Court, D. New Hampshire
DecidedDecember 7, 2011
DocketCV-09-270-PB
StatusPublished

This text of 2011 DNH 204 (Bourne v. Stewart Title) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bourne v. Stewart Title, 2011 DNH 204 (D.N.H. 2011).

Opinion

Bourne v . Stewart Title CV-09-270-PB 12/7/11 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

Samuel J. Bourne

v. Case N o . 09-cv-270-PB Opinion N o . 2011 DNH 204 Stewart Title Guarantee Company

MEMORANDUM AND ORDER

Samuel J. Bourne brings suit against Stewart Title

Guarantee Company (“Stewart Title”), alleging that Stewart Title

breached its duty to defend his title to a Madison, New

Hampshire vacation property. Bourne and Stewart Title have

filed cross-motions for summary judgment. For the reasons set

forth below, I grant Stewart Title’s motion.

I. BACKGROUND

In September 2002, Bourne paid $92,500 to acquire a fifty-

acre parcel of land with a small cabin in Madison, New

Hampshire. He financed the purchase with retirement funds and a

mortgage loan from Laconia Savings Bank (“Bank”). Pursuant to

the mortgage agreement, Bourne purchased two title insurance

policies from Stewart Title, one for himself (the “owner policy”) and one for the Bank (the “lender policy”). On the

owner policy, Bourne is listed as an insured party in his

capacity as a trustee of Bedrock Realty Trust. The policy

promises to defend the insured parties from any “covered risk”

that is not excepted or excluded from coverage.

Shortly after Bourne acquired the property, he became

involved in a series of disputes with the Town of Madison

(“Town”) regarding his property. One of the disputes concerned

the scope of an easement across the property that prior owners

had deeded to the Town in 1979 (the “Kelsey Easement”). In

November 2003, Bourne sued the Town to prevent the use of the

Kelsey Easement as a snowmobile trail, contending that the

Easement was limited to foot traffic (the “2003 Easement

litigation”). That same year, Bourne filed two lawsuits against

the Town regarding Solomon Harmon Road (“Road”), an unpaved

roadway that traversed Bourne’s property (collectively, the

“2003 Road litigation”). In the first action, he sought to

relocate the Road from the center to the edge of his property.

In the second action, he challenged the Town’s claim that the

2 Road was a Class VI public highway by prescription.1 When the

Town subsequently attempted to lay out the Road as a Class VI

highway,2 Bourne filed another lawsuit in February 2005 to

challenge the Town’s decision (the “2005 Road litigation”).

All four suits were consolidated and tried in the Carroll

County Superior Court. In August 2008, the court held that (1)

the Kelsey Easement did not cover use by snowmobiles or other

motorized vehicles; (2) the court was without authority to

change the location of the Kelsey Easement from the center to

the edge of the property; (3) Solomon Harmon Road was not a

1 Class VI highways are defined as “all other existing public ways” that do not come within definitions of Class I-V highways. See N.H. Rev. Stat. Ann. § 229:5, VII. The class includes “all highways discontinued as open highways and made subject to gates and bars . . . and all highways which have not been maintained and repaired by the town in suitable condition for travel thereon for 5 successive years or more . . . .” Id. Class VI highways are “full public highways that the public has the right to pass over . . . even though such highways are not ‘approved public street[s]’ for zoning purposes.” Glick v . Ossipee, 130 N.H. 643, 646 (1988) (internal citations omitted). A road may be established by prescription if “the general public used the roadway continually without interruption for a period of twenty years prior to 1968, under a claim of right without the owner’s permission” and the public use of the road was “adverse.” Gill v . Gerrato, 156 N.H. 595, 596 (2007) (quoting Mahoney v . Town of Canterbury, 150 N.H. 1 4 8 , 150 (2003)). 2 The New Hampshire legislature has given the selectmen of a town the power to “lay out” roads in certain circumstances. See, e.g., N.H. Rev. Stat. Ann. § 231:8. 3 Class VI highway by prescription; and (4) the Town’s attempt to

lay out the Road as a Class VI public highway failed to satisfy

the legal requirements necessary to support such a process.

D.’s Ex. C C , Doc. N o . 146-31. The court also denied Bourne’s

request for attorneys’ fees. Id. at 17-18. In 2009, the New

Hampshire Supreme Court affirmed the lower court’s decision in

all material respects. Bedrock Realty Trust v . Town of Madison,

N o . 2008-0550 (N.H. May 1 4 , 2009).

In October 2005, while the state litigation was pending,

Bourne sued the Town, its selectmen, and one of its residents in

federal court (the “2005 federal litigation”). Bourne claimed

that the defendants had interfered with maintenance of access to

his property, prevented installation of electric service, and

improperly denied lot subdivision and building permit requests.

Through two separate orders issued in June 2007 and May 2010,

the court granted summary judgment in favor of the defendants on

all claims.

Lastly, in February 2008, Bourne filed a quiet title suit

in the Carroll County Superior Court, alleging that the

quitclaim deed that created the Kelsey Easement was invalid

because it did not contain a properly notarized signature of the

4 grantee and was not properly accepted by the Town (the “2008

Easement litigation”). It is unclear from the pleadings whether

this disagreement has been resolved.

Bourne first made a demand on Stewart Title to defend his

title in July 2003. In a series of letters between August 2003

and March 2004, Stewart Title refused to honor the demand,

citing various exceptions and exclusions in the owner policy

that prevented the disputes from qualifying as covered risks.

On March 2 3 , 2004, Stewart Title sent its fourth and final

denial letter to Bourne and his two attorneys. D.’s Ex. V , Doc.

N o . 146-24. The letter denied coverage for various alleged

title defects, including those that were at issue in the 2003

Easement litigation and the 2003 Road litigation. Id. It

specifically stated, “your claim is hereby denied.” Id. Bourne

maintains that he continued to make demands under the policy for

each property dispute that arose after March 2004. He states

that Stewart Title continually refused to litigate the alleged

defects, but neither party has presented additional evidence

that Stewart Title in fact refused to represent Bourne’s

interests in any of the other cases.

5 Bourne claims that he incurred substantial legal fees and

costs in presenting his various claims and that he defaulted on

his mortgage because he used funds to pay legal fees and costs

that he otherwise would have used to pay his mortgage. Acting

pro s e , Bourne filed this action in August 2009, alleging

various statutory and common law violations against Stewart

Title and the Bank. In February 2011, I granted the Bank’s

motion for judgment on the pleadings in its entirety and granted

Stewart Title’s motion to dismiss in part. I held that Bourne

had inadequately pleaded each of the claims in his complaint,

with the exception of his breach of contract claim against

Stewart Title. Bourne and Stewart Title have now filed cross-

motions for summary judgment on the remaining claim.

II. STANDARD OF REVIEW

Summary judgment is appropriate when the record reveals “no

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