Faber v. Raty

2023 MT 227
Montana Supreme Court·Decided November 28, 2023·No. DA 21-0360·Published·Cited by 2 cases

Opinion

11/28/2023

DA 21-0360 Case Number: DA 21-0360

IN THE SUPREME COURT OF THE STATE OF MONTANA

2023 MT 227

ELGIN FABER and COLLEEN FABER,

Plaintiffs, Appellants, and Cross-Appellees,

v.

KEITH RATY, COLLEEN RATY, et al,

Defendants, Appellees, and Cross-Appellants.

APPEAL FROM: District Court of the Twelfth Judicial District, In and For the County of Hill, Cause No. 16-003 Honorable John A. Kutzman, Presiding Judge

COUNSEL OF RECORD:

For Appellants:

Michael F. McGuinness, Patten, Peterman, Bekkedahl & Green, PLLC, Billings, Montana

For Appellees:

Gregory J. Hatley, Davis, Hatley, Haffeman & Tighe, P.C., Great Falls, Montana

Submitted on Briefs: August 24, 2022

Decided: November 28, 2023

Filed: ir,-6L-.--if __________________________________________ Clerk Justice James Jeremiah Shea delivered the Opinion of the Court.

¶1 Plaintiffs Elgin and Colleen Faber (“the Fabers”) appeal the Hill County District

Court’s Amended Findings of Fact, Conclusions of Law, and Judgment granting

prescriptive easements over two roadways to Defendants Keith and Colleen Raty (“the

Ratys”). The Ratys cross-appeal the District Court’s Judgment regarding the scope of the

easements. We reframe the parties’ issues on appeal and address:

Issue One: Whether the District Court erred by concluding the Ratys acquired a prescriptive easement over each road that survived the grazing lease agreements.

Issue Two: Whether the District Court erred in concluding the prescriptive easement over Olson Road was appurtenant.

Issue Three: Whether the District Court properly set forth the scope of the Ratys’ prescriptive easement over Olson Road.

¶2 We affirm in part, reverse in part, and remand for modification of the Amended

Findings of Fact, Conclusions of Law, and Judgment consistent with this opinion.1

PROCEDURAL AND FACTUAL BACKGROUND

¶3 This case involves the creation of two prescriptive easements in favor of the Ratys

over two roads crossing property owned by the Fabers. The Ratys own two parcels of land

known as the Upper Setty Ranch and Lower Setty Ranch (collectively, “the Ranches”).

1 The Fabers filed a Motion to Strike Portions of the Ratys’ Reply Brief in Support of Cross Appeal, asserting that the Ratys’ Reply Brief in Support of Cross Appeal includes argument of issues not confined to the Ratys’ Answer and Cross Appeal Brief. After reviewing the Ratys’ Answer and Cross Appeal Brief, the Fabers’ Reply and Cross-Appeal Response Brief, and the Ratys’ Reply Brief in Support of Cross Appeal, we determine that the Ratys’ Reply Brief in Support of Cross Appeal complied with M. R. App. P. 12(3).

24 The Lower Setty Ranch is located northeast of the Upper Setty Ranch. Both parcels were

originally homesteaded by Ova and Lacrettia Setty in the early 1900s. In 1948, the

properties were purchased together by Colleen Raty’s grandfather, Steve Boyce. Colleen

Raty’s father, Bud Boyce, purchased both properties from his father in 1963. The Ratys

bought the Lower Setty Ranch and part of the Upper Setty Ranch in 1997, before

purchasing the rest of the Upper Setty Ranch in 2004. The Settys, Boyces, and Ratys have

ranched and resided on both properties periodically for nearly a century. The Lower Setty

Ranch now serves as the headquarters of the Ratys’ cattle operation.

¶4 The Faber Property was purchased by Nicholas Faber in 1892. Paul and Alvina

Faber acquired the Property in 1948. James Faber acquired the Property in 1993 and

conveyed it to the James Faber Living Trust (“the Trust”). Elgin and Colleen Faber

succeeded in interest to the Faber Property in 2012.

¶5 Beginning in 1997, the Ratys acquired permits to graze cattle each fall in an area

known as Beaver Creek Park. Beaver Creek Park is located southwest of the Lower Setty

Ranch. The Upper Setty Ranch, the Lower Setty Ranch, and Beaver Creek Park are each

separated by multiple properties which are owned and operated by other parties. The Faber

Property sits between all three parcels of land used by the Ratys for cattle grazing.

Defendant’s Trial Exhibit No. 501, a stipulated map of the subject properties, is included

for reference on the following page.

25 DEFENDANTS' TRIAL -Raty Ranch EXHIBIT NO. 501 - 1 OF 1 rters (Lower Set .1111.1- Ranch)

Beaver Creek Park • .1. Quarter Gulch Road 0 1_son ROad

< --Faber Property -',,-. r Grobofsky Property ----Establisheil Prescriptive E ' dant State r Land Ranch lleadquarters

Acccal Roac'; Eascmcra Brown ,, & Brown Property <----Established Prescriptive Easement',

U per Setty Ranch

ati

eservatton Lcasc

26 Grazing Leases

¶6 From 1997 to 2012, the Ratys leased two tracts of the Faber Property from the Trust

for the purpose of cattle grazing in three successive agreements (“the Leases”). The Leases

divided the defined portions of the Faber Property that the Ratys were leasing into the

“primary summer grazing lease” (“Tract 1”) and a “supplemental fall grazing lease”

(“Tract 2”). All three of the Leases required the Ratys to “use good stewardship practices

to avoid damaging the land” and the latter two noted the “[g]razing history puts the stocking

rate at 85 to 100 pair.” The Ratys moved their cattle to Tract 2 each fall after the Fabers

had put up their hay. The Ratys removed the cattle from the Faber Property in

approximately December of each year.

¶7 The portions of the Faber Property leased to the Ratys encompass three roads:

(1) Sucker Creek Road; (2) Olson Road; and (3) Quarter Gulch Road. Sucker Creek Road

enters the Faber Property from the east. Olson Road diverges from Sucker Creek Road on

the Faber Property, runs north to south from the divergent point, and exits the Faber

Property to the south. Olson Road then runs through State land and other private properties

before entering the Upper Setty Ranch. Quarter Gulch Road diverges from Olson Road on

the Faber Property and runs generally east to west, before exiting the Faber Property to the

west.

¶8 While the portions of the Faber Property leased to the Ratys encompass the disputed

roads at issue, the Leases themselves contain only two references to any road. The 1997

lease states:

27 The lessee is given the right to regulate hunting use due to the presence of cattle and weather conditions on said grazing lands. All hunter motorized traffic shall be restricted to the main road.

All of the Leases state:

This lease is subject to all easements, restrictions, reservations of record and all the easement rights of way apparent from a visual examination of the premises.

¶9 The 1997 lease called for a rate based on the number of grazing cow-calf pairs and

single animals. The lease specified the parties were to agree annually on an amount of

money per cow-calf pair or single animal. The lease further stated, “[t]he lessee agrees to

use the area only for surface grazing.” The 2002 lease abandoned the cash-per-cow

payment method in favor of a flat rate. Keith Raty explained at trial that the parties

transitioned to the flat rate because “it was a headache to keep track of every animal on the

property and how long they were there. Jim [Faber] and I out of convenience just came up

with a flat rate.”

¶10 The Fabers acquired the Faber Property from the Trust in September 2012,

approximately three months prior to the expiration of the third and final lease. The dispute

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