Estate of Mandich v. French

2022 MT 88, 509 P.3d 6, 408 Mont. 296
Montana Supreme Court·Decided May 10, 2022·No. DA 21-0436·Published·Cited by 2 cases

Opinion

05/10/2022

DA 21-0436 Case Number: DA 21-0436

IN THE SUPREME COURT OF THE STATE OF MONTANA 2022 MT 88

THE ESTATE OF CHARLOTTE MANDICH, via Susan G. Mathews, its Personal Representative

Plaintiff and Appellee,

v.

MARK AND KATHLEEN FRENCH,

Defendants and Appellants.

APPEAL FROM: District Court of the Twentieth Judicial District, In and For the County of Sanders, Cause No. DV-19-87 Honorable Robert G. Olson, Presiding Judge

COUNSEL OF RECORD:

For Appellants:

Graham J. Coppes, Emily F. Wilmott, Ferguson Law Office PLLC, Missoula, Montana

For Appellee:

Jesse Kodadek, Elizabeth W. Erickson, Worden Thane P.C., Missoula, Montana

Submitted on Briefs: April 13, 2022

Decided: May 10, 2022

Filed: q3,,---, 6mal•-.— 4( __________________________________________ Clerk Justice Laurie McKinnon delivered the Opinion of the Court.

¶1 Mark and Kathleen French (“the Frenches”) appeal an order entered August 3, 2021,

in the Twentieth Judicial District Court, Sanders County, dismissing the final count of

Charlotte Mandich’s (“Mandich”) Complaint. The District Court previously granted

summary judgment in favor of Mandich’s declaratory judgment claim and issued a

permanent injunction against the Frenches. We affirm and restate the issues on appeal as

follows:

1. Whether the District Court erred in granting summary judgment to Mandich on the 1997 Agreement’s limitation of usage language.

2. Whether the District Court manifestly abused its discretion in granting Mandich permanent injunctive relief.

3. Whether the District Court abused its discretion in denying the Frenches’ motion for leave to amend their Answer.

FACTUAL AND PROCEDURAL BACKGROUND

¶2 The Frenches and Mandich own adjoining properties in Sanders County. In 1997,

Mandich and her husband signed a Water Line Easement and Shared Well Agreement

(“1997 Agreement”) with Paradise Valley, Inc., the Frenches’ predecessor in interest. The

1997 Agreement granted the Mandiches “a perpetual, non-exclusive water line easement”

and provided, pertinently, that the Mandiches “hold water rights to the well” and would

“share the water from said well with [Paradise Valley and its successors] in that the water

volume available for use on [Paradise Valley’s] property shall be for domestic purposes

only for one, single family dwelling.” The 1997 Agreement further provided its terms

would be binding on the parties and their successors. 2 ¶3 The Frenches purchased their property from Paradise Valley in January of 2003.

The Frenches’ deed provides their purchase was subject to several easements, including

the 1997 Agreement.

¶4 In 2004, the Mandiches and Frenches signed a Water System Use Agreement (“2004

Agreement”). The 2004 Agreement provided “for the continued maintenance, operation

and replacement of a Water System for use” by both parties. By its terms, the 2004

Agreement neither mentions nor modifies the 1997 Agreement.

¶5 In early August 2019, the Frenches informed Mandich they needed to work on the

shared well. The Frenches additionally told Mandich their plan to put in an RV park on

their land. Shortly thereafter, the Frenches notified Mandich that they were going to shut

off her water and begin working on the well. Mandich told them not to act until she could

assess the legal ramifications.

¶6 On August 10, 2019, Mandich’s water supply was briefly shut off. Her hired pump

servicer informed her she should not drink or use the water due to an increased risk of

contamination. Mandich’s water supply was shut off again on August 12, 2019, and

remained disconnected for the final three weeks of August. Upon reconnection, Mandich

discovered the Frenches had installed a new horsepower pump to the well.

¶7 Mandich filed a Complaint in November 2019 seeking declaratory and injunctive

relief. Mandich sought a declaration that the Frenches had materially breached the 1997

Agreement or, alternatively, that the language of the 1997 Agreement strictly limited the

Frenches’ right to use the well to domestic purposes for one single-family dwelling.

3 Mandich additionally requested injunctive relief barring the Frenches from “modifying,

tampering with, or in any way interfering with [Mandich’s] use of the shared well, or

[Mandich’s] water line or electrical system connected to the well.”

¶8 Mandich filed a motion for summary judgment in February 2020, before the

Frenches filed any responsive pleading. Acting pro se, the Frenches filed their “Answer to

[Mandich’s] Complaint/Motion for Summary Judgment” on March 4, 2020. The Frenches

argued the 1997 Agreement limited Mandich’s, not the Frenches’, use of the well. The

Frenches further argued that Mandich had materially breached the 1997 Agreement. The

Frenches obtained counsel on March 25, 2020.

¶9 On October 23, 2020, the District Court held a hearing on Mandich’s motion for

summary judgment. 1 The District Court issued its Order on March 2, 2021. The Order

denied summary judgment on Mandich’s breach of contract claim, concluding that whether

the Frenches’ conduct constituted a material breach was a question of fact. The District

Court granted summary judgment on Mandich’s alternative argument concerning the 1997

Agreement’s limitation of use language. The District Court noted that both parties agreed

“this is a matter of contract interpretation” and concluded the 1997 and 2004 Agreements

1 In its order setting the hearing, the District Court invited the Frenches to file affidavits in support of their position that material facts were in dispute. The Frenches filed a 15-page affidavit of Kathleen French, along with numerous exhibits. Mandich takes issue with the Frenches’ factual reliance on this affidavit on appeal, arguing it was procedurally improper. Notwithstanding Mandich’s objection, the affidavit does not create genuine issues of material fact or change our analysis, which centers on the plain and unambiguous language of the 1997 Agreement.

4 must be read together.2 The District Court found “no language in the 2004 Agreement that

would have it replace the 1997 Agreement.” The District Court additionally granted

Mandich’s request for a permanent injunction.

¶10 Following the District Court’s Order, the Frenches filed two motions. First, on

March 29, 2021, they filed a motion pursuant to M. R. Civ. P. 59 to alter or amend the

judgment (“Motion to Alter”). For the first time, the Frenches contended Montana’s Water

Use Act, §§ 85-1-101 et seq., MCA, controlled the case. The Frenches additionally argued

that the District Court relied on disputed facts in issuing its permanent injunction and that

the Order was internally inconsistent and required alteration.

¶11 Before the District Court ruled on their Motion to Alter, the Frenches filed a motion

on April 27, 2021, pursuant to M. R. Civ. P. 15, requesting leave to amend their answer

(“Motion for Leave to Amend”). Citing recent actions by Mandich and her agents, the

Frenches sought to assert seven counterclaims against Mandich, seeking a declaratory

judgment, injunctive relief, and compensatory damages. The Frenches argued they had not

pursued these claims previously due to their pro se status and belief the case would settle.

¶12 The District Court issued an Order of Clarification on May 27, 2021. The District

Court affirmed its ruling in favor of Mandich but clarified that the issue was one of contract

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Estate of Mandich v. French, 2022 MT 88, 509 P.3d 6, 408 Mont. 296 (Mo. 2022).

2022 MT 88 (Estate of Mandich v. French) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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