Kranz v. Meyers Subdivision Property Owners Ass'n

969 N.E.2d 1068, 2012 Ind. App. LEXIS 306, 2012 WL 2411848
CourtIndiana Court of Appeals
DecidedJune 27, 2012
Docket75A03-1112-PL-577
StatusPublished
Cited by3 cases

This text of 969 N.E.2d 1068 (Kranz v. Meyers Subdivision Property Owners Ass'n) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kranz v. Meyers Subdivision Property Owners Ass'n, 969 N.E.2d 1068, 2012 Ind. App. LEXIS 306, 2012 WL 2411848 (Ind. Ct. App. 2012).

Opinion

OPINION

CRONE, Judge.

Case Summary

Gunther and Carol Kranz own property on Bass Lake that is subject to an easement by other landowners in the Meyers Subdivision (“the Subdivision”). In prior, separate proceedings, the Natural Resources Commission (“the NRC”) determined that the easement holders had the right to place a pier at the end of the easement, but they would have to apply for a permit for a group pier (“the Group Pier”) from the Department of Natural Resources (“the DNR”). 1 The DNR initially denied the permit because it believed that the Group Pier’s proximity to neighboring piers created a safety hazard. The easement holders requested a hearing before an administrative law judge (“the ALJ”), who determined that the easement holders should be allowed to have a group pier and that the Kranzes should move their pier to accommodate the Group Pier. The Kranzes appealed to the NRC, which adopted the ALJ’s decision.

The Kranzes then sought judicial review in the Starke Circuit Court. The Kranzes advanced four reasons for reversing the NRC’s decision: (1) that the NRC lacked jurisdiction to determine property rights; (2) that the decision was arbitrary and capricious because the NRC did not follow its own rule; (3) that the decision was not supported by substantial evidence; and (4) that the decision effected an unconstitutional taking. The trial court affirmed, and the Kranzes appealed to this court. We conclude that the NRC has jurisdiction to render a decision concerning property rights to the extent necessary to implement the permit process. We also conclude that the NRC properly interpreted and applied its own rule. Further, the evidence favorable to the decision is that the safety concerns were alleviated by moving the neighboring piers away from the Group Pier. Finally, we conclude that there was not an unconstitutional taking of the Kranzes’ property. Because Bass Lake is a public freshwater lake, the only effect of the NRC’s decision on the Kranzes’ property rights was to relocate their pier, and there was no indication that the pier was any less usable in the location chosen by the NRC. The decision does not deprive the Kranzes’ property of all or substantially all of its economic or productive usé and therefore is not an unconstitutional taking. Therefore, we affirm.

Facts and Procedural History

The Kranzes own Lot 49 of the Subdivision. The Kranzes’ property is bordered *1071 on the north side by Bass Lake, which is a public freshwater lake. The western fifteen feet of the Kranzes’ property is subject to an easement held by the property owners in the Subdivision who do not have lakefront property. Lot 48, which borders the Kranzes’ property on the west, is owned by Christopher Bartoszek. For a period of several decades, the easement holders placed a pier (“the Group Pier”) at the end of the easement in order to access the lake.

In the spring of 2007, a dispute arose between the easement holders and the Kranzes and Bartoszek regarding the Group Pier. Sometime during 2007, DNR Conservation Officer Brian Culbreth examined the deed creating the easement and determined that it created only a right to a path to the lake, not to placement of a pier in the lake.

On October 15, 2007, the easement holders initiated administrative proceedings before an ALJ to review Officer Culbreth’s determination. The Kranzes and Bartosz-ek were respondents in those proceedings. The DNR was also added as a third-party respondent because of its regulatory authority over the lake.

Each party was ordered to provide the ALJ with a written statement of contentions. The easement holders contended that their easement included the right to place a pier in the lake and, alternatively, that they had obtained such a right through adverse possession. The Kranzes and Bartoszek denied these contentions. The DNR’s statement identified four issues: (1) whether the easement contained a grant of riparian rights; (2) if so, whether the right to place a pier in the lake was among those rights; (3) what the dimensions of any riparian zone created by the deed were; and (4) whether the easement holders were required to obtain a permit from the DNR before placing a pier in the lake. 2

On July 16, 2008, after an evidentiary hearing, the ALJ issued his order. The ALJ found that the deed was ambiguous as to the intent of the easement, and therefore considered extrinsic evidence, including the testimony of easement holders Nancy Adochio, Richard Leadbetter, and Lori Bridegroom. The ALJ found that Richard Leadberter’s testimony was particularly persuasive because he had owned property in the Subdivision since 1956 and was able to testify with clarity and specificity as to the historical use of the easement and pier. Leadbetter testified that in 1962, Joseph Meyers, the creator of the Subdivision, gathered the property owners and informed them that the easement was going to be moved from Lot 48 to its present location on Lot 49. Meyers told the easement holders to move their pier to the new location. At various times, railroad ties, wooden beams, or rocks have been placed along the shoreline to control erosion. Currently, there is a stone seawall extending across Lot 49. Leadbetter and Bridegroom testified that a pier was a “practical necessity” for getting over the wall and into the water. Adochio v. Kranz, 11 CADDNAR 400, 413 (2008), available at www.in.gov/nrc/decision/07-204w.vll.htm. The ALJ found that the Kranzes’ and Bartoszek’s testimony was partially based on hearsay and was less credible than the easement holders’ testimony.

The ALJ found that the easement holders had established, by a preponderance of *1072 the evidence, that the easement included the right “to place a pier to facilitate reasonable access to Bass Lake. At a minimum, the pier must afford the ability to safely and conveniently traverse shoreline structures, such as seawalls.” Id. The ALJ determined that the Group Pier was a structure that required a permit from the DNR. Thus, the easement holders were entitled to place a pier in the lake upon successful completion of the permit process. Neither the Kranzes nor Bartoszek sought judicial review of the decision.

On November 6, 2009, Adochio, as secretary of the Meyers Subdivision Property Owners Association (“the Association”), submitted an application for a group pier on behalf of the Association. The application requested permission for a pier 171 feet in length extending from the easement. It would be three feet wide with a sitting bench and a ladder into the water. On January 18, 2010, Adochio supplemented the application with additional information requested by the DNR. Adochio confirmed that the easement holders did not intend to moor boats at the Group Pier.

The DNR denied the permit for four reasons:

1. the proposed project will both infringe on the access of an adjacent landowner to the public freshwater lake and will unduly restrict navigation
2.

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969 N.E.2d 1068, 2012 Ind. App. LEXIS 306, 2012 WL 2411848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kranz-v-meyers-subdivision-property-owners-assn-indctapp-2012.