Markstein v. Countryside I, L.L.C.

2003 WY 122, 77 P.3d 389, 2003 Wyo. LEXIS 148, 2003 WL 22214637
CourtWyoming Supreme Court
DecidedSeptember 26, 2003
Docket02-214
StatusPublished
Cited by30 cases

This text of 2003 WY 122 (Markstein v. Countryside I, L.L.C.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Markstein v. Countryside I, L.L.C., 2003 WY 122, 77 P.3d 389, 2003 Wyo. LEXIS 148, 2003 WL 22214637 (Wyo. 2003).

Opinion

LEHMAN, Justice.

[11] This is an appeal from summary judgment granted against appellants Kenneth W. Markstein and Carole Markstein {collectively the Marksteins) in an action concerning fishing and club use rights granted along the Snake River near Wilson, Wyoming. We affirm in part, reverse in part, and remand.

ISSUES

[12] The Marksteins set forth very lengthy and broadly stated issues on appeal that may be summarized as follows:

1. Did the district court err in disregarding the effect of the bankruptey court's orders?
2. Did the district court err in not finding a breach of the Stipulation Re License Claims?
3. Did the district court err in concluding that the fishing license agreements did not create an interest in real property that ran with the land but, rather, were revocable licenses that were terminated upon purchase of land?
4. Did the district court err in finding a proper revocation of the Marksteins' club use rights?
5. Did the district court err in its finding of bona fide purchaser for value status under the Wyoming Recording Act?

Appellees John C. Thornton; Countryside, LLC; Countryside I, LLC,; Thunder Holdings, LLC; John R. Tozzi and Georgene M. Tozzi, as trustees of the Tozzi Family Trust; Targhee Pines, L.CO.; The Jackson Hole Land Trust; and LaSalle Bank National Association (collectively appellees) do not specifically set forth a statement of issues on appeal. However, appellees address those *392 issues raised by the Marksteins and raise the following additional issues:

1. Did the trustee in bankruptcy reject the Marksteins' fishing license and club use agreements as executory contracts in the bankruptey case?
2. Was the recording of the license agreement for Parcel 2 void as a violation of the bankruptey automatic stay provision? |
3. To the extent that the fishing license agreements are easements, are they null and void under Wyo. Stat. Ann. § 34-1-141 for failure to provide a sufficient legal description?

FACTS 1

[T3] In 1981, Rivermeadows Associates, Ltd. (RMA) developed Crescent H Ranch, a commercially operated guest ranch located along the Snake River. Thereafter, Fish Creek Meadows, Inc. (FCM) developed 186 acres adjacent to Crescent H Ranch (Fish Creek Meadows Property).

[14] In 1993, the Marksteins purchased Parcel 1 of the Fish Creek Meadows Property, in part, acquiring fishing and club rights on the Crescent H Ranch. No memoranda for the fishing and club rights regarding Parcel 1 were recorded. Nevertheless, terms of the Parcel 1 purchase provided that if Parcel 1 was split, duplicate fishing and club rights would immediately issue with that newly split parcel. In April of 1994, the Marksteins completed a lot split of Parcel 1.

[151 On January 16, 1995, RMA granted FCM fishing rights to the Crescent H Ranch, which was appurtenant to Parcel 2 of the Fish Creek Meadows Property. On January 17, 1995, RMA filed for Chapter 11 bankruptcy with RMA operating as a debtor in possession until a trustee in bankruptcy was appointed for the bankruptcy estate in July of 1995. Later that same day, RMA recorded a Memorandum of License Agreement regarding fishing rights involving Parcel 2. 2 Subsequently in 1995, FCM also filed for Chapter 11 bankruptcy.

[16] On November 12, 1996, the trustee in bankruptcy for the RMA bankruptcy estate and appellee John C. Thornton (Thornton) entered into a purchase agreement concerning the Crescent H Ranch. This agreement provided that the sale was subject to all existing fishing and club use rights relating to the Crescent H Ranch, except to the extent such rights were "avoided" in the bankruptey. On that same date, Thornton assigned all his rights and obligations under the purchase agreement to appellee Countryside, LL.C. On December 830, 1996, appellant Kenneth A. Mark-stein purchased Parcel 2 of the Fish Creek Meadows Property through the trustee of the FCM bankruptcy estate. No memorandum for club rights concerning Parcel 2 was recorded although such rights were again apparently extended pursuant to the purchase.

[1 7] In January 1997, the trustee for the RMA bankruptcy estate filed an avoidance action seeking to, in part, avoid the Mark-steing' fishing rights. On May 12, 1997, that same trustee along with Countryside, L.L.C. requested by motion that the bankruptcy court approve the proposed purchase of the Crescent H Ranch. The Marksteins objected to these motions. On June 10, 1997, the Marksteins and others entered into a Stipulation Re License Claims with the trustee of the RMA bankruptey estate and Countryside, L.L.C. wherein Countryside, LL.C. agreed that any challenge it might wish to assert to the fishing and club use rights would be limited to the "claims asserted by the trustee" in the avoidance action. On June 18, 1997, the bankruptcy court approved the sale of the Rivermeadows property to Countryside, L.L.C., but ruled that the sale "shall not be free and clear of the interests of those fishing license and use agree *393 ment holders." Countryside, LLC. assigned its rights and obligations under this sale to appellee Countryside I, L.L.C,. on June 25, 1997. The Stipulation Re License Claims was approved by the bankruptcy court on July 21, 1997.

[48] On February 25, 1998, the bank-ruptey court dismissed the avoidance action filed by the RMA bankruptey trustee seeking to avoid the Marksteing' fishing and club use rights. Nevertheless, on April 2, 1998, Countryside I, LLC. sent a letter to the Mark-steins disavowing their fishing and club use rights.

[19] On November 283, 1998, the trustee for the RMA bankruptey estate filed his Third Amended Liquidating Plan of Reorganization ("Plan of Reorganization"). On December 3, 1998, the bankruptey court entered its order confirming the Plan of Reorganization.

[T10] This action was filed in district court by the Marksteins seeking to enforce their fishing and club use rights. Ultimately, cross-motions for summary judgment were filed by the parties, with the district court entering summary judgment in favor of ap-pellees. This appeal followed.

STANDARD OF REVIEW

[T11]l Our standard of review in summary judgment cases is well established.

Summary judgment motions are determined under the following language from W.R.C.P. 56(c):
The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.
The purpose of summary judgment is to dispose of suits before trial that present no genuine issue of material fact. Moore v. Kiljander, 604 P.2d 204, 207 (Wyo.1979). Summary judgment is a drastic remedy designed to pierce the formal allegations and reach the merits of the controversy, but only where no genuine issue of material fact is present.

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Bluebook (online)
2003 WY 122, 77 P.3d 389, 2003 Wyo. LEXIS 148, 2003 WL 22214637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/markstein-v-countryside-i-llc-wyo-2003.