Nampa Hwy Dist 1 v. Knight

CourtIdaho Supreme Court
DecidedApril 17, 2020
Docket47029/47071/47086
StatusPublished

This text of Nampa Hwy Dist 1 v. Knight (Nampa Hwy Dist 1 v. Knight) 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
Nampa Hwy Dist 1 v. Knight, (Idaho 2020).

Opinion

IN THE SUPREME COURT OF THE STATE OF IDAHO

Docket No. 47029 / 47071 / 47086

NAMPA HIGHWAY DISTRICT NO. 1, a ) body politic corporate of the State of Idaho, ) ) Boise, February 2020 Term Plaintiff-Respondent, ) ) Opinion filed: April 17, 2020 v. ) ) Karel A. Lehrman, Clerk BRIAN K. KNIGHT and LISA M. KNIGHT, ) husband and wife; MANUEL DOMINGUEZ ) and MARIA DOMINGUEZ, husband and ) wife, ) Docket No. 47029 ) Defendants-Appellants, ) ) and ) ) CHICAGO TITLE INSURANCE ) COMPANY, et al, ) ) Defendants. ) ) ) NAMPA HIGHWAY DISTRICT NO. 1, a ) body politic corporate of the State of Idaho, ) ) Plaintiff-Respondent, ) ) v. ) ) Docket No. 47071 QUICKEN LOANS INC., a Michigan ) corporation; ) ) Defendant-Appellant, ) ) and ) ) BRIAN K. KNIGHT, et al, ) ) Defendants. ) )

1 NAMPA HIGHWAY DISTRICT NO. 1, a ) body politic corporate of the State of Idaho, ) ) Plaintiff-Respondent, ) ) v. ) ) Docket No. 47096 MORTGAGE ELECTRONIC ) REGISTRATION SYSTEMS, INC., a ) Delaware corporation, ) ) Defendant-Appellant, ) ) and ) ) BRIAN K. KNIGHT, et al. ) ) Defendants. )

Appeal from the District Court of the Third Judicial District of the State of Idaho, Canyon County. George A. Southworth, District Judge.

The judgment of the district court granting summary judgment is reversed, its declaration as to the status of the right-of-way is vacated, and the case is remanded.

Davison, Copple, Copple & Copple, LLP, Boise, for Appellants Manuel and Maria Dominguez. E. Don Copple argued.

Angstman Johnson, Boise, for Appellants Brian and Lisa Knight and Quicken Loans, Inc. Wyatt B. Johnson argued.

Hawley Troxell Ennis & Hawley, LLP, Boise, for Appellant Mortgage Electronic Registration Systems, Inc.

Jones Williams Fuhrman Gourley, PA, Boise, for Respondent. Kimbell D. Gourley argued.

_______________________________________________

MOELLER, Justice

Nampa Highway District No. 1 (NHD) brought this action against the named defendants seeking to quiet title to a thirty-three-foot-wide strip of land constituting the south half of West

2 Orchard Avenue in Canyon County, Idaho. NHD claims that a 1941 deed conveyed the land to NHD. Appellants1 argued that because the deed was not recorded until 1989, it does not affect their interests pursuant to the “Shelter Rule,” which protects a purchaser with notice if their predecessor in interest was an innocent purchaser. The district court granted summary judgment in NHD’s favor. Appellants timely appealed. For the reasons stated below, we reverse. I. FACTUAL AND PROCEDURAL BACKGROUND A. Factual Background This case involves the real property located at 2505 West Orchard Avenue, Nampa, Idaho, currently owned by Appellants Brian and Lisa Knight (the Knight Property), and the real property located at 2403 West Orchard Avenue, Nampa, Idaho, currently owned by Appellants Manuel and Maria Dominguez (the Dominguez Property). Years prior, the Knight Property and the Dominguez Property were part of a larger tract of land (the Property), with the known chain of title starting with W.A. and Lou Dedman in 1920. On April 5, 1920, the Dedmans transferred their interest in the Property to Ora Lupton by deed. The deed was recorded on May 12, 1920. In 1921, West Orchard Avenue (the Road) was constructed along the front of the Property as a twenty-two-foot-wide two-lane road. This portion of the Road has remained twenty-two feet in width since 1921. Approximately twenty years later, on June 2, 1941, NHD held a board meeting wherein a delegation appeared seeking to put the Road in condition for oiling. The minutes from the meeting explain that “Commissioners set Thursday afternoon, June 5th, as a time for visiting this road and asked that deeds for right of way for 66-foot road be secured.” A couple months later, NHD held another board meeting. The minutes from the meeting explain that [a] committee from Orchard Avenue again appeared to learn of steps taken to improve Orchard Avenue Road. It was learned that an engineer had done some work on this road to establish center lines, and the Committee was definitely told that they should submit Right of Way deeds for thirty-three feet on each side of center of road to establish this road before definite plans be made to improve the road. The deeds were to be filed in the office of the Nampa Highway District.

1 As used herein, “Appellants” refers to all of the named defendants except for Chicago Title Insurance Company.

3 On August 4, 1941, J.G. and Ora Lupton conveyed a thirty-three-foot-wide strip of land on each side of the centerline of the Road to NHD via a Deed of Right-of-Way. However, NHD did not record the deed at that time. The Deed of Right-of-Way states: Whereas, it is desirable, proper, and necessary that a public highway be laid out and opened for public use 33 feet wide on each side of a line, commencing at a point in the intersection of the center line of the existing public highway with the section line between Sections 19 and 20 in Township 3 N. R. 2. W. R. M. thence Easterly along said North Boundary line of Section 20 a strip of land 33 feet wide and extending thence Easterly distance of 2640 feet more or less along the North boundary line of the Northwest Quarter of Section 20. Although the purpose of the conveyance was to “improve the road,” NHD never improved the road. In 1945, Ora Lupton died and the probate of her estate resulted in the transfer of her interest in the Property to her surviving spouse, J.G. Lupton. J.G. Lupton died in 1958, and the probate of his estate resulted in the transfer of his interest in the Property to his heirs, Howard Lupton and Marvin Lupton. The same day it was transferred by the estate, Marvin Lupton transferred his interest in the Property to Howard Lupton. Howard Lupton divided the Property into several parcels, including those that eventually became the Knight Property and the Dominguez Property. On June 21, 1963, Howard Lupton transferred his interest in one of the parcels, the Knight Property, to Billy and Vonda Downs by deed. On August 31, 1983, Howard Lupton transferred his interest in another parcel, the Dominguez Property, to Roy and Judith Beets by deed. Neither deed referenced the right-of-way. On February 21, 1989, over forty-seven years after the Deed of Right-of-Way was executed, NHD recorded the deed. The record does not reveal why NHD recorded the deed at that time or why it was not recorded earlier. Following the recording of the Deed of Right-of-Way, the Downses conveyed their interest in the Knight Property to the Knights by deed. The deed was recorded on July 17, 1998. The Knights are the current owners of the Knight Property. The Knights subsequently granted a Deed of Trust to Chicago Title Insurance Company as Trustee on behalf of Appellant Mortgage Electronic Registration Systems, Inc. (MERS), as the beneficiary and nominee for Appellant Quicken Loans Inc., and its successor and assigns.

4 On May 24, 1999, the Beets transferred their interest in the Dominguez Property to Kalvin and Julie Wilkinson. The Wilkinsons transferred their interest in the Dominguez Property to Manuel Dominguez who subsequently transferred his interest to Manuel and Maria Dominguez. The deed was recorded on July 24, 2018. Manuel and Maria Dominguez are the current owners of the Dominguez Property. B. Procedural Background On October 25, 2018, NHD filed a Complaint for Declaratory Judgment and Quiet Title seeking to quiet title to a thirty-three-foot-wide strip of land as described in the Deed of Right-of- Way in NHD. NHD also sought a declaratory judgment decreeing that it holds title to the thirty- three-foot-wide strip of land in fee simple or, alternatively, that it has an easement. All parties moved for summary judgment.

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