Drd v. Aventure Estates

2010 S.D. 88
CourtSouth Dakota Supreme Court
DecidedNovember 17, 2010
Docket25595
StatusPublished
Cited by6 cases

This text of 2010 S.D. 88 (Drd v. Aventure Estates) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Drd v. Aventure Estates, 2010 S.D. 88 (S.D. 2010).

Opinion

#25595-a-SLZ

2010 S.D. 88

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

* * * *

DRD ENTERPRISES, LLC, Plaintiff and Appellant,

v.

TODD THOMAS FLICKEMA, DAWN AMY FLICKEMA, and PSC PROPERTIES, LLC, Defendants and Appellees,

AVENTURE ESTATES, LLC, FIVE J INVESTMENT CO., LLC, and PINNACLE HOLDINGS, LLC, Defendants.

APPEAL FROM THE CIRCUIT COURT OF THE FOURTH JUDICIAL CIRCUIT LAWRENCE COUNTY, SOUTH DAKOTA

HONORABLE WARREN G. JOHNSON Judge

* * * * DYLAN A. WILDE of Brady & Pluimer, PC Spearfish, South Dakota Attorneys for plaintiff and appellant.

DWIGHT A. GUBBRUD of Bennett, Main & Gubbrud, PC Belle Fourche, South Dakota Attorneys for defendants and appellees.

* * * * CONSIDERED ON BRIEFS ON OCTOBER 4, 2010

OPINION FILED 11/17/10 #25595

ZINTER, Justice

[¶1.] Appellant DRD Enterprises, LLC commenced a declaratory action

against Todd and Dawn Flickema (Flickemas) and PSC Properties, LLC to obtain

an access easement across their properties. DRD based its claim upon a “Blanket

Easement” granted by Dakota Resorts Management Group (Dakota Resorts), a prior

owner of Flickemas’ and PSC’s properties. The circuit court concluded that the

Blanket Easement sufficiently described the servient tenement. Nevertheless, the

court entered judgment for Flickemas and PSC because the court concluded that

they were good faith purchasers without notice of the easement. We only address

the predicate question regarding the sufficiency of the easement description.

Because we conclude that the Blanket Easement failed to sufficiently describe the

servient tenement, we affirm the judgment.

Facts and Procedural History

[¶2.] In 1999, the Gali Family Trust sold legally described real property to

Dakota Resorts on a contract for deed. For ease of reference we refer to the

property as the “Non-Emery Properties.” On February 16, 2000, while in possession

of the Non-Emery Properties, Dakota Resorts executed a document referred to as

the Blanket Easement. By the terms of the document, Dakota Resorts granted “the

rights of a to be determined, as requested, legal right of ingress and egress” for the

benefit of legally described properties. For ease of reference we refer to the

dominant tenement as “Emery No. 4” and “Emery No. 5.” The Blanket Easement

did not, however, provide a legal description of the servient tenement. It only

indicated that the easement “shall provide a reasonable route through the grantor’s

-1- #25595

land that will not cause undo [sic] and unreasonable work and engineering.”

(Emphasis added.) 1 The Blanket Easement was filed with the Lawrence County

Register of Deeds on February 22, 2000, and was recorded as Doc. No. 2000-704.

The Lawrence County Register of Deeds indexed the Blanket Easement against

Emery Nos. 4 and 5. But without a legal description, the Blanket Easement was

not indexed against any servient tenement. 2

[¶3.] On March 30, 2000, a Gali-Dakota Resorts Short Form Contract for

Deed was recorded as Doc. No. 2000-1202. The short form evidenced the 1999 sale

of Non-Emery Properties to Dakota Resorts. It indicated that 378.3 acres, legally

described as “Mineral Survey 1356 . . . of Sections 11, 12, 13, and 14 . . . ,” had been

conveyed. Thus, the Lawrence County Register of Deeds’ records indicated that

Dakota Resorts had been the equitable owner of Non-Emery Properties at the time

it granted the Blanket Easement.

[¶4.] Dakota Resorts sold the dominant tenement (Emery Nos. 4 and 5) to

Kenneth and Amy O’Neill around the time it executed the Blanket Easement. The

O’Neills sold Emery No. 5 to Aventure Estates, LLC in October 2004, and they sold

Emery No. 4 to DRD in November 2005. The warranty deeds given to Aventure and

DRD referenced the Blanket Easement recorded in Document No. 2000-704.

1. The Blanket Easement indicates that it was not prepared by counsel in this case. It was prepared by Kenneth O’Neill, the purchaser of the dominant tenement.

2. Instruments are indexed in numerical and grantor-grantee indexes. See SDCL §§ 7-9-8, 7-9-9.

-2- #25595

[¶5.] Dakota Resorts also sold a portion of the Non-Emery Properties, the

purported servient tenement, to Aventure in October 2004. The warranty deed

conveying title to Aventure made no reference to the Blanket Easement. Aventure

subsequently subdivided and replatted its portion of the Non-Emery Properties into

lots. Aventure then sold Lot 5 to Flickemas on September 30, 2006. Aventure sold

Lot 6 to PSC Properties on October 17, 2006.

[¶6.] Before closing on Lot 5, Lawrence Title Company issued Flickemas an

initial commitment for title insurance. The Blanket Easement was attached to the

commitment and was noted as a special exception. After reviewing the title

commitment, Flickemas asked their real estate agent, Kathy Whitelock, about the

Blanket Easement. Whitelock made an inquiry of the seller’s real estate agent, who

contacted the title company. Lawrence Title Company subsequently amended the

commitment for title insurance, removing the Blanket Easement as a special

exception. Neither Flickemas’ final title insurance policy nor their warranty deed

contained any reference to the Blanket Easement. Additionally, Todd Flickema

personally inspected Lot 5. He observed no access road, trail or path across Lot 5

suggesting the existence of an ingress/egress easement.

[¶7.] Prior to closing on Lot 6, PSC obtained a title insurance commitment.

PSC’s commitment made no reference to the Blanket Easement. PSC’s principal

member, Dr. Paul Cink, inspected the land and did not observe any evidence

suggesting the presence of an ingress/egress easement on Lot 6. Neither PSC’s final

title insurance policy nor its warranty deed mentioned the Blanket Easement.

-3- #25595

[¶8.] In 2006, DRD brought this declaratory action against several

landowners, including Flickemas and PSC, to utilize the Blanket Easement to

obtain an access easement from Terry Peak Summit Road to DRD’s nearby land

(Emery No. 4). Flickemas and PSC claimed the Blanket Easement was of “no

effect” because the easement’s mere reference to “grantor’s land” did not sufficiently

describe the servient tenement. The circuit court granted DRD summary judgment

on this issue. The court ruled that the servient tenement, described only as

“grantor’s land,” could be determined by resort to public records. According to the

court, “grantor’s land” included those Non-Emery properties Dakota Resorts had

owned lying between Emery Nos. 4 and 5 and the Terry Peak Summit Road (which

included Flickemas’ Lot 5 and PSC’s Lot 6). Therefore, the court held that the

Blanket Easement sufficiently described the servient tenement to be effective. The

court ruled, however, that there were factual issues precluding summary judgment

on whether the Blanket Easement burdened Flickemas’ and PSC’s properties

because they may have been good faith purchasers without notice of the Blanket

Easement. 3

[¶9.] Following further discovery, the parties filed additional motions for

summary judgment. The circuit court then concluded that the easement was not in

Flickemas’ or PSC’s chain of title and that Flickemas and PSC were not burdened

by the Blanket Easement because they were good faith purchasers without notice of

3.

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Bluebook (online)
2010 S.D. 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drd-v-aventure-estates-sd-2010.