Brown v. Johnston

2004 WY 17, 85 P.3d 422, 2004 Wyo. LEXIS 23, 2004 WL 384475
CourtWyoming Supreme Court
DecidedMarch 3, 2004
Docket03-71
StatusPublished
Cited by9 cases

This text of 2004 WY 17 (Brown v. Johnston) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Johnston, 2004 WY 17, 85 P.3d 422, 2004 Wyo. LEXIS 23, 2004 WL 384475 (Wyo. 2004).

Opinion

*424 KITE, Justice.

[¶ 1] Lessor filed suit seeking a declai-a-tory judgment that lessees violated the lease, termination of the lease, and ejection of lessees from the leased property. Lessees counterclaimed alleging breach of good faith and fair dealing, breach of covenant of quiet enjoyment, and breach of contract. After a trial, the district court declared lessees did not materially breach the lease agreement, denied lessor’s claim for ejectment, found for lessees on their claim for breach of the covenant of quiet enjoyment and awarded lessees nominal damages. Lessor appeals from the district court’s judgment. We affirm.

ISSUES

[¶ 2] Both parties raise the following issues:

I. Whether, as a matter of law, [Lessees are] exempted from the provisions of a right-of-way easement passing through the leasehold, entitling them to park the vehicles of their restaurant and bar customers on the right-of-way easement;
II. Whether the trial court’s finding that [Lessees] did not materially breach any provisions of the lease agreement was inconsistent with the evidence, clearly erroneous, or contrary to the great weight of the evidence, and contrary to the law of Wyoming; and
III. Whether the trial court’s findings on the counterclaim that [Lessees] suffered nominal damages for violation of their covenant of quiet enjoyment was inconsistent with the evidence, clearly erroneous, or contrary to the great weight of the evidence, and contrary to the law of Wyoming.

FACTS

[¶ 3] This case involves a tract of land located south of Jackson, Wyoming. In 1972, the owner of the land, William Lineberry, established two businesses housed in separate buildings on the land, Bill’s Open Pit Barbeque and Steak House and, next door, a tourist attraction named Teton Mystery. In 1989, following concerns over the use of Horse Creek Road, which runs along the southern boundary of the property, Mr. Li-neberry filed suit against his neighbors to the east seeking to establish an easement and cause his neighbors to pay for their use of the portion of the road. 1 To resolve the litigation, Mr. Lineberry and his neighbors entered into a stipulation, which created a 16-foot right-of-way easement along the southernmost boundary of the Lineberry property. In March of 1990, the district court entered an order establishing an easement pursuant to the parties’ stipulation. The stipulation provided that Mr. Lineber-ry’s neighbors could use the easement solely for ingress and egress to their land, established a 15-mile per hour speed limit, and stated that it was granted “on the express condition that it shall be utilized in conformity with past uses.” According to Mr. Line-berry, past uses included allowing customers of the restaurant to park along the southern edge of the easement.

[¶4] Shortly after creation of the easement, Mr. Lineberry sold his restaurant business and building to William B. Johnston, Michael A. Reisbeck and Horse Creek Properties, Inc. (collectively referred to as Mr. Johnston). Mr. Lineberry retained ownership of the Teton Mystery business, the building in which it operated, and the land upon which it was located. Mr. Line-berry also retained ownership of the land on which the restaurant was located, but entered into a fifteen year lease with Mr. Johnston for that portion of the land underneath and adjacent to the restaurant building, including land burdened by the right-of-way easement. Because Mr. Lineberry continued to own Teton Mystery, the sales contract provided that he and Mr. Johnston would share the parking area for their respective businesses, cooperate with each other in regard to it, refrain from interfering with the other’s business and jointly main *425 tain the common parking area. Mr. Johnston changed the name of the restaurant to Horse Creek Station and operated it according to the lease with Mr. Lineberry until 1997. Under Mr. Johnston’s ownership, restaurant customers continued to park on the southern edge of the easement along the fence, as they did when Mr. Lineberry operated the restaurant, without complaint from Mr. Lineberry.

[¶ 5] In 1997, Mr. Lineberry sold the land upon which the restaurant and Teton Mystery were located to Reno Brown. Under the contract establishing the terms of the sale, Mr. Lineberry assigned Mr. Brown his interest in the lease agreement between himself and Mr. Johnston. Following the purchase, Mr. Brown and Mr. Johnston entered into an agreement modifying the original lease agreement. Among other provisions, the modification included a paragraph prohibiting Mr. Johnston from engaging in activities constituting a nuisance or disturbing the quiet enjoyment of others. Together, the original lease agreement and the modification provided the terms and conditions for the lease between Mr. Brown and Mr. Johnston. Pursuant to those terms, the shared parking arrangement that existed previously was to continue in effect, meaning Mr. Johnston and his customers could park in the leased and unleased parking areas, including the area next to Teton Mystery belonging to Mr. Brown, and Mr. Brown could park on the leased portion in front of the restaurant.

[¶ 6] After purchasing the property, Mr. Brown became concerned about the easement owners’ and Mr. Johnston’s use of the shared parking area and easement. Specifically, he complained the easement owners were not obeying the 15 mph speed limit on Horse Creek Road and Mr. Johnston’s customers were parking along the road on the south side of the easement. In an attempt to slow down speeding vehicles, Mr. Brown dug a speed dip across the portion of the easement adjacent to Teton Mystery. This caused easement users to drive off the easement and through the shared parking area to avoid the speed dip. Mr. Brown then placed two railroad ties along the north boundary of the easement in an attempt to prevent cars from leaving the easement to avoid the speed dip. One of the easement owners was allegedly injured when he tried to move one of the ties and sent Mr. Brown a letter threatening legal action for the injury and interference with the easement and demanding that Mr. Brown remove the obstructions and repair the roadway. 2 Also in the letter, the easement owner complained about restaurant customers “continuously parking in the limited available right-of-way thereby requiring people to drive off the right-of-way through private property” in order to access their property. As a result, Mr. Brown sent a letter to Mr. Johnston demanding that he instruct his customers not to park their cars in a manner that obstructed the easement. Mr. Brown also sent a letter to the easement owner advising him that the speed bump would remain in place to encourage traffic to slow down.

[¶ 7] Shortly after this exchange of correspondence, Mr. Brown met with Mr. Johnston to discuss a number of problems related to the lease agreement. By letter dated June 15, 1999, addressed to Mr. Johnston, Mr. Brown memorialized what was discussed at the meeting. The letter does not mention the problems associated with the easement. However, by letter dated June 16, 1999, Mr. Brown again advised Mr. Johnston that parking could not continue on the easement. Apparently customers continued to park on the easement and Mr. Brown wrote Mr.

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Bluebook (online)
2004 WY 17, 85 P.3d 422, 2004 Wyo. LEXIS 23, 2004 WL 384475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-johnston-wyo-2004.