KT Group, LLC v. Robert Lowe

578 S.W.3d 1
CourtCourt of Appeals of Tennessee
DecidedOctober 19, 2018
DocketE2017-02415-COA-R3-CV
StatusPublished
Cited by2 cases

This text of 578 S.W.3d 1 (KT Group, LLC v. Robert Lowe) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KT Group, LLC v. Robert Lowe, 578 S.W.3d 1 (Tenn. Ct. App. 2018).

Opinion

10/19/2018 IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE May 31, 2018 Session

KT GROUP, LLC v. ROBERT LOWE ET AL.

Appeal from the Chancery Court for Scott County No. 10-707 Elizabeth C. Asbury, Chancellor ___________________________________

No. E2017-02415-COA-R3-CV ___________________________________

This case involves a property dispute regarding a fifty-foot strip of land that was historically used for railroad purposes. KT Group, LLC (plaintiff) filed an action to quiet title, naming Robert Lowe and his wife, Velma Lowe, as defendants. Each side claims to own the strip of land in fee simple absolute. The trial court determined that plaintiff owned the land in fee simple. Defendants appealed. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed; Case Remanded

CHARLES D. SUSANO, JR., J., delivered the opinion of the court, in which D. MICHAEL SWINEY, C.J., and JOHN W. MCCLARTY, J., joined.

Terry M. Basista, Jacksboro, Tennessee, for the appellants, Robert Lowe and Velma Lowe.

C. Patrick Sexton, Oneida, Tennessee, for the appellees, KT Group, LLC.

OPINION

I.

The material facts of this case are not in dispute. In July 2015, plaintiff acquired by quitclaim deed a strip of land in Scott County that is approximately 12.63 miles long and fifty feet wide. Although the parties refer to this strip of land as “the Brimstone Railway Line,” the property has not been used for railroad purposes for many years.1

1 Mrs. Lowe testified that the last time she remembered a train running on the tracks was about forty-three years ago. Mr. King, one of the owners of KT Group, LLC, estimated that the subject property had not been used for fifteen to twenty years. Shortly after acquiring the property, plaintiff began removing rails and crossties from the rail line. Plaintiff also entered into contracts to sell the gravel from the existing roadbed.

In September 2015, defendants erected barriers that prevented plaintiff from accessing the portion of the rail line running across their property. Defendants also sent plaintiff a letter claiming fee simple ownership of the portion of the rail line running across their property. In response, plaintiff initiated this action to quiet title. In addition to seeking a declaration of ownership, plaintiff sought damages incurred as a result of defendants’ interference with plaintiff’s use of the property. Defendants filed an answer denying that plaintiff had any rights in the property.2

At trial, both parties presented expert testimony from title attorneys. Both experts traced the chain of title back to a 1921 deed. The parties stipulated that the court’s construction of that deed would determine their respective interests in the property. For the sake of clarity, we quote the relevant portions of the 1921 deed and emphasize the language important to this case:

For and in consideration of Ten ($10.00) Dollars cash in hand paid, and other considerations not necessary here to mention, we, [grantors] of Scott County, Tennessee, have bargained and sold, and by [sic] hereby transfer and convey, unto Round Mountain Lumber & Coal Company . . . a tract or strip of land fifty (50) feet wide through three tracts of land in what was formerly the 14th Civil District of Scott County, Tennessee . . . ; the said fifty (50) feet strip being more particularly described as follows: to wit:

Twenty-five feet on each side of a line beginning in the boundary line between our land and the land of Wesley Parsons, and in the center of the said Round Mountain Lumber & Coal Company’s right of way, and running thence substantially with the Holt Survey as now staked out across our property to the center of the said Round Mountain Lumber & Coal Company’s right of way on the Cleveland Potter line; the above being across one of our tracts[.]

And then beginning in the center of the said Round Mountain Lumber & Coal Company’s right of way where it leaves the Cleveland Pott[e]r line; and running with the Holt Survey

2 Defendants also asserted a counterclaim against plaintiff for “the profits realized as a result of the sale of the steel rails and also for the damages to Defendants’ property and for punitive damages with respect thereto.” Later, however, defendants voluntarily withdrew their counterclaim. -2- across another of the above tracts to the center of the said right of way where it enters one of the Mand[y] Newport tracts; Then beginning in the center of said right of way where it leaves the first Mandy Newport tract; and running substantially with the said Holt Survey across the third tract to the center of the said right of way where it enters the second Mandy Newport tract; the said strip of land to be used for Railroad purposes.

The final location of the v[e]ndee or its assigns shall definitely fix and determine the description of the 50 foot strip hereby conveyed; provided, however, that any such permanent location shall be substantially in accordance with the present survey.

To have and to hold the said strip, tract or parcel of land, together with the appurtenances, estate, right, title and interest thereunto belonging, unto the said Round Mountain Lumber & Coal Company, its successors and assigns, in fee simple forever.

We covenant that we are lawfully seized and possessed of the said property, have a good right to convey it, and that it is un[e]ncumbered; and we warrant to forever defend the title thereto unto the said vendee, its successors and assigns, against the lawful claims of all persons whomsoever.

(Bold print added.)

Plaintiff’s expert witness testified his professional opinion was that the 1921 deed conveyed fee simple ownership of the strip of land to Round Mountain Lumber & Coal Company (Round Mountain). Defendants’ expert witness, however, testified that the deed merely granted Round Mountain an easement to use the strip of land for railroad purposes. Furthermore, defendants’ expert testified that once the land was “abandoned for railroad purposes, then that interest was extinguished and completely vested back in the [defendants].” Ultimately, the trial court found that the 1921 deed conveyed the strip of land to Round Mountain in fee simple. Accordingly, the court held that plaintiff, as Round Mountain’s successor in interest, also held the property in fee simple. The court did not rule on plaintiff’s request for damages. Defendants appeal.

II.

The sole issue on appeal is whether the trial court erred in determining that -3- plaintiff holds the disputed property in fee simple. Because plaintiff did not challenge the trial court’s failure to rule on its request for damages, plaintiff waived that issue on appeal. See Lapinsky v. Cook, 536 S.W.3d 425, 439 n.2 (Tenn. Ct. App. 2016).

III.

Resolution of the ultimate issue in this case requires us to consider whether the trial court erred in its interpretation of the 1921 deed. The interpretation of a deed is a question of law, which we review de novo without a presumption being accorded to the correctness of the trial court’s legal conclusion. Griffis v. Davidson Cty. Metro. Gov’t, 164 S.W.3d 267, 274 (Tenn. 2005).

In Tennessee, there is a statutory presumption that a deed passes the entirety of the grantor’s interest in the property absent evidence of a contrary intent. Specifically, Tenn. Code Ann. § 66-5-101 (2015) provides that

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Cite This Page — Counsel Stack

Bluebook (online)
578 S.W.3d 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kt-group-llc-v-robert-lowe-tennctapp-2018.