Hunnell v. Roseburg Resources Co.

51 P.3d 680, 183 Or. App. 228, 2002 Ore. App. LEXIS 1207
CourtCourt of Appeals of Oregon
DecidedAugust 7, 2002
Docket00 CV 0693 CC; A114411
StatusPublished
Cited by4 cases

This text of 51 P.3d 680 (Hunnell v. Roseburg Resources Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunnell v. Roseburg Resources Co., 51 P.3d 680, 183 Or. App. 228, 2002 Ore. App. LEXIS 1207 (Or. Ct. App. 2002).

Opinion

*230 SCHUMAN, J.

Plaintiffs sought various forms of equitable relief — a declaratory judgment, an injunction, a judgment quieting title — to prevent defendant from using a road that connected defendant’s property to Interstate 5 by passing across plaintiffs’ property. Defendant responded that it lawfully used the road under an easement granted to defendant’s predecessor-in-interest by plaintiffs’ predecessor-in-interest. The sole issue on appeal is whether the trial court erred in interpreting the easement to permit defendant to continue using the road. We reverse and remand.

The following facts are undisputed. On September 11,1946, plaintiffs’ predecessors in interest sold an easement over their land to Fir Manufacturing Company (Fir). The relevant language from the easement provides:

“KNOW ALL MEN BY THESE PRESENTS That EARL W DAVIS and MADGE G DAVIS, husband and wife, * * * for and in consideration of the sum of Three Thousand Dollars ($3,000) in hand paid by FIR MANUFACTURING CO., an Oregon corporation, to them, have granted, bargained, sold and conveyed and by these presents hereby do grant, bargain, sell and convey unto said Fir Manufacturing Co., its successors and assigns, an exclusive easement for logging and lumber road purposes over and across the following described real property, subject to the terms and conditions hereinafter mentioned, to-wit:
“[Description of easement]
“TO HAVE AND TO HOLD the same unto the said Fir Manufacturing Co., its successors and assigns, for and during such period of time as said Fir Manufacturing Co., shall have ownership of any interest in or control over any timber [or] timberlands from which it is necessary or convenient to haul logs, lumber or other timber products over, along and across said property and easement.”

Significantly, the words “its successors and assigns” do not appear in line three of the last paragraph above between the words “Fir Manufacturing Co.” and “shall.” What does appear is a small, superscript handwritten numeral “1” in a circle, as though to signal a footnote, but no corresponding *231 circled “1” appears with footnote text anywhere in the document.

In January 1951, another easement was granted to Fir, identical to the 1946 easement except for a minor change correcting an error in the description of the property. The purpose of the 1951 easement was only to correct that mistake; the new easement stated explicitly, “Grantor and Fir do hereby confirm that certain grant of easement as recorded” in 1946.

In 1952, Fir dissolved and no other corporate entity succeeded to its corporate rights and burdens. Thus, no corporate successor to Fir exists. Ultimately, however, defendant acquired at least a portion of the land previously owned by Fir and used the access road for logging purposes. 1 Then, in January 2000, shortly before this action began, plaintiffs discovered that defendant was charging third parties for the use of the logging road easement. Plaintiffs notified defendant that “the easement legally ended when Fir Manufacturing went out of business” and revoked defendant’s permission to use the road. Defendant responded that, under its reading, the easement did not end when Fir dissolved; it was, in fact, appurtenant to the land and still validly in existence for the benefit of the land once owned by Fir and now owned by defendant.

This action followed. After a brief trial, the court issued a letter opinion concluding that the circled “1” in the recorded easement marked the spot where the parties intended to include the words “its successors and assigns,” so that the phrase describing the term of the easement should be read, “for and during such period of time as said Fir Manufacturing Co., its successors and assigns, shall have ownership [.]” (Emphasis added.) The court also held that the inserted word “successors” meant not only “corporate successors” but all successors, including defendant. Consequently, the court entered judgment declaring that the easement was *232 appurtenant to defendant’s land and that defendant could not use the road for purposes not spelled out in the grant. A dispute over which party prevailed, resolved in favor of defendant, clarified that the judgment tacitly concluded that defendant could avail itself of the easement for purposes that were specified in the document, i.e., that the easement did not end with the dissolution of Fir, as plaintiff contended. Plaintiff appeals, assigning error to that conclusion.

We review the interpretation of an express easement for errors of law. State Highway Com’n v. Deal et al., 191 Or 661, 681, 233 P2d 242 (1951); Kell v. Oppenlander, 154 Or App 422, 426, 961 P2d 861 (1998). To interpret an easement, we follow the guidelines that the Supreme Court established in Tipperman v. Tsiatsos, 327 Or 539, 544-45, 964 P2d 1015 (1998). See also Olson v. Van Horn, 182 Or App 264, 270 n 4, 48 P3d 860 (2002) (adhering to Tipperman method). We begin with the text of the instrument itself and look beyond it if it is ambiguous, in which case we look to the intent of the original parties as revealed by the relevant surrounding circumstances such as the nature of the easement and how it was used. If ambiguity still remains, we look to rules of construction such as the one announcing that an easement is to be construed against the grantor who reserves it. Tipperman, 327 Or at 545. Applying those guidelines here, we conclude that the trial court erred.

The language specifying the duration of the easement provides that Fir and its successors and assigns own the easement

“for and during such period of time as said Fir Manufacturing Co., shall have ownership of any interest in or control over any timber [or] timberlands from which it is necessary or convenient to haul logs, lumber or other timber products over, along and across said property and easement.”

Those words can have only one meaning: the term of the easement ends when Fir no longer owns or controls any timber or property from which it is “necessary or convenient” to haul logs across grantor’s property. Fir’s successor could own the easement if Fir itself sold part of the land or timber but retained part as well, but once Fir owns none of the timber or *233 timberland, the easement ends. Fir no longer owns such timber or property because, since 1952, Fir no longer exists.

To reach a contrary conclusion, the trial court reasoned:

“A careful reading of the entire document strongly supports the view that the scrivener of the document inadvertently failed to include the phrase ‘successors and assigns’ after ‘Co.,’ in the above paragraph.

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Cite This Page — Counsel Stack

Bluebook (online)
51 P.3d 680, 183 Or. App. 228, 2002 Ore. App. LEXIS 1207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunnell-v-roseburg-resources-co-orctapp-2002.