Latvala v. Green Enterprises Inc.

CourtIdaho Supreme Court
DecidedMay 3, 2021
Docket47296
StatusPublished

This text of Latvala v. Green Enterprises Inc. (Latvala v. Green Enterprises Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Latvala v. Green Enterprises Inc., (Idaho 2021).

Opinion

IN THE SUPREME COURT OF THE STATE OF IDAHO Docket No. 47296

MATTHEW V. LATVALA and ) BONNIE A. LATVALA, husband and ) wife, ) ) Plaintiffs-Respondents- ) Cross Appellants, ) ) v. ) ) GREEN ENTERPRISES, INC., an Idaho ) Corporation; JAMES K. FRANK and ) JULIE B. FRANK, husband and wife; ) LARIMORE J. CUMMINS and ) Boise, December 2020 Term KATHRYN CUMMINS, husband and ) wife; and all unknown persons claiming ) Opinion Filed: May 3, 2021 an interest in the road by the name of ) South Camp Bay Road, located in ) Melanie Gagnepain, Clerk Bonner County, Idaho, ) ) Defendants-Appellants- ) SUBSTITUTE OPINION. Cross Respondents, ) THE COURT’S PRIOR OPINION ) DATED MARCH 19, 2021 IS HEREBY and ) WITHDRAWN. ) GILL LIVING TRUST, acting through ) TRUSTEE DALE GILL; RUSSELL ) W. EDWARDS and JANET M. ) EDWARDS, husband and wife; CORAL ) MARIE EDWARDS; FRED GRUBB; ) CAMP BAY, LLC an Idaho limited ) liability company; MARION L. COX, ) ) Defendants. ) ____________________________________)

Appeal from the District Court of the First Judicial District of the State of Idaho, Bonner County. Barbara Buchanan, District Judge.

The district court judgment is affirmed in part, reversed in part, vacated in part, and remanded for further proceedings.

1 John F. Magnuson, Coeur d’Alene, for Appellants. John F. Magnuson argued.

Berg, McLaughlin & Nelson, Chtd., Sandpoint, for Respondents. D. Toby McLaughlin, argued. ______________________________

BEVAN, Chief Justice.

This appeal concerns whether a prescriptive easement exists to provide road access and utilities to a land-locked parcel and mining claim on Lake Pend Oreille in northern Idaho. Matt and Bonnie Latvala purchased the land-locked parcel, known as “Sulphide South,” in 2015 and litigation soon followed. Following a four-day bench trial and site visit, the district court quieted a prescriptive easement to the Latvalas through and over what is known as South Camp Bay Road, as well as confirming and defining an express easement across another parcel known as “Sulphide North.” Some 1 neighboring landowners appeal the district court’s judgment, arguing the court’s findings were not supported by substantial and competent evidence. These neighbors also argue that the district court erroneously allowed the prescriptive easement to be unreasonably expanded.

I. FACTUAL AND PROCEDURAL BACKGROUND In 2015, Latvala 2 purchased a land-locked parcel of land known as Sulphide South, which was originally part of a patented mining claim on the shores of Lake Pend Oreille. With an interest in gem faceting and jewelry making, Latvala was keen to purchase a waterfront property with historical mineral rights. However, litigation arose in 2017 from conflicts over alleged easements and road access along privately owned South Camp Bay Road and Sulphide North.

History of Access to the Sulphide Lode On June 30, 1906, the U.S. Surveyor General for Idaho executed and approved a mining claim plat for a sulphide lode on the shores of Camp Bay on Lake Pend Oreille. The 1906 plat of the site depicts a tunnel but no roads running to, or within the sulphide claim. The lode produced

1 Latvala originally brought suit against all landowners along South Camp Bay Road and Dale Gill, who holds title to Sulphide North. Defendants Green Enterprises, Inc., James K. Frank and Julie B. Frank, and Larimore J. Cummins and Kathryn Cummins appealed the district court’s judgment. The remaining landowners, including Gill, did not appeal. 2 Although the parties’ names are often used in the plural in the briefing and record to showcase the families involved in the purchase and use of the properties—particularly as heirs inherit property over the years—singular family names have been used in this opinion to simplify matters unless it was necessary to distinguish a specific individual’s actions. 2 silver and lead, and contained veins of quartz, pyrite, pyrothite, and galena. Work on the mine, however, has been limited and sporadic over the years. Documentation detailed the early mining history in 1905 to 1906 as follows: “an incline tunnel was driven in one [sic] the ore at the point of discovery for a distance of about 40 feet and 20 ton or more of ore taken out, which now lies on the dump.” A few years later, in 1909, four men received a patent from the United States for the sulphide mining claim. Little is known of any work done over the next thirty years, except for some tunnels driven in the late 1930s. Relevant to this case are two tunnels (the upper tunnel and the lower tunnel) that both begin on Sulphide North. However, the sulphide lode ultimately reverted to Bonner County in 1939 for delinquent taxes. In 1939, Howard B. Thomason (“H.B. Thomason”) purchased the sulphide claim from Bonner County at a public auction. The same year, adjacent and unpatented mill sites were located, and Hilfred L. Thomason (“H.L. Thomason”) filed the requisite notices and proof of labor pursuant to the General Mining Act of 1872. 30 U.S.C. § 28 (to retain his claim a locator must expend $100 of labor or improvements each year). This group of claims became known as the “Silver Fox Mine Group” and was comprised of the patented sulphide lode claim, and the surrounding unpatented Honest John, Lizzie S, Susan T, and mill site claims. For access to the Silver Fox mine claims, H.L. Thomason stated in a letter: “County road from Sagle, Idaho within one-half mile of property, private road balance of distance. Sagle, Idaho is R.R. station about 12 miles distant.” In a separate affidavit, H.B. Thomason stated that the road leading to the sulphide claim “was in existence prior to 1938,” and that he helped “extend said road within said claim.” Ultimately, the mine’s production was “small” and intermittent, but documentation led the district court to conclude that work had been performed at the active sulphide mine and adjoining sites briefly in 1939, and regularly from 1946 to 1954. The proof of labor filed for 1939 reveals mining work performed for three years (between 1939 and 1942) at the mines and mill sites adjacent to—but not on—the sulphide lode. A letter from H.L. Thomason explained that the sulphide lode had been idle from 1939 to 1946 because equipment was lost due to a default in payments. The only work completed there in 1939 was to drive a “very short tunnel” at the lower level in an unsuccessful attempt to intersect the vein. Work recommenced in 1946 and additional proofs of labor were filed in 1948 and 1954, with ore shipments occurring regularly between 1947 and 1951. By 1954, workers had extended the upper tunnel and laid track the full length of both

3 mining tunnels on the property. At that point, the various ore shipments over the years had amounted to about 15 tons of ore removed from the mine. In 1954, H.B. Thomason leased the sulphide lode and adjacent mining sites to A & J Mining Company for a five-year period. At the beginning of its lease, the A & J Mining Company applied to the U.S. Department of the Interior for federal assistance under the Defense Minerals Exploration Administration (“DMEA”), which encouraged exploration for critical and strategic minerals. The company’s lease agreement established the 1954 condition and access of the mine as follows: 4(a) The upper tunnel has been driven to a depth of 155 ft. Track has been laid the full length. The mine is in operation in this tunnel. The lower tunnel has been driven to a depth of 133 ft. Track has been laid the full length. No ore has been encountered in this tunnel. We believe that a large body of ore lies approximately 60 ft. straight ahead. The reason for this application is to complete this cross-cut. We have the necessary equipment, including compressor, drifter, winch, ore car, and necessary hand tools.

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Latvala v. Green Enterprises Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/latvala-v-green-enterprises-inc-idaho-2021.