National Properties Corp. v. Polk County

351 N.W.2d 509, 1984 Iowa Sup. LEXIS 1159
CourtSupreme Court of Iowa
DecidedJune 13, 1984
Docket83-546
StatusPublished
Cited by3 cases

This text of 351 N.W.2d 509 (National Properties Corp. v. Polk County) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Properties Corp. v. Polk County, 351 N.W.2d 509, 1984 Iowa Sup. LEXIS 1159 (iowa 1984).

Opinion

REYNOLDSON, Chief Justice.

Plaintiff National Properties Corporation brought this action against defendants Polk County, The Polk County Board of Supervisors, and Board of County Drainage Administrators, District # 51, for the purchase price of land defendants allegedly orally agreed to buy for a drainage ditch. Judgment for $13,856 was entered for plaintiff on the jury’s verdict. Defendants appeal and we now reverse and remand.

The evidence disclosed that in 1955 a large drainage district was formed in northern Polk County, Iowa, including lots 122 and 123 of Highland Park Acres, an official plat. These lots are bordered on the north by a street designated northwest 47th Place. Lot 122 was bounded on the west by northwest Second Avenue. Earlier, in 1942, the then lot owners, including contract vendees Earl Y. and Ethel L. Streeter, had conveyed to the state of Iowa “for road purposes and for use as a Public Highway” the west sixty feet and the north 40 feet of lot 122 and the north 40 feet of lot 123. Other documentary evidence offered at trial from the Polk County auditor’s office related to the establishment of drainage district # 51, and disclosed that damages to “E.V. & E.L. Streeter” were assessed and ‘paid for drainage ditch right of .way. Streeters received $467.70 for .0860 acres in lot 122 and $351.81 for .2165 acres in lot 123, Highland Park Acres. At trial a Polk County civil engineer computed a total of 13,177 square feet had been taken from these owners for the ditch.

Plaintiff corporation acquired these lots in 1973 from Gulf Oil Corporation by special warranty deed that excepted from the conveyance the west 60 feet and the north 40 feet of lot 122, and the north 40 feet of lot 123, subject to “any state of facts and conditions that an accurate survey and personal inspection of the premises would disclose.”

In 1980 the Polk County supervisors determined to clean out the open ditch in district # 51 and restore it to its original efficiency. There was little dispute that along plaintiff’s property it had been encroached upon, caved in, and overgrown with trees and brush. County employees sought to obtain a work permit to enter plaintiff’s property to do the necessary work. 1 Plaintiff’s president and chief operating officer, Raymond DiPaglia, refused permission. He contended the county had no right on the premises because his abstract showed no recorded easement for the 1955 acquisition for the ditch. He also asserted the total ditch easement lay entirely within the 40-foot tract conveyed to the state in 1942.

DiPaglia testified county employees agreed the district’s- alleged “easement” was invalid and agreed to pay plaintiff the fair market value of any land taken by the new work, whereupon he agreed to permit them to come on the premises and complete their project. The county employees testified they did not concede the district had no right of way on plaintiff’s property, but did agree the county would compensate plaintiff for an easement across any land not covered by the 1955 easement.

The work lasted from July through September 1980. It consisted of cleaning out the ditch, regrading the surface, narrowing the base of the ditch, lengthening the slope, and widening the top of the levee. Plaintiff calculated the total widening at about *511 6300 square feet while defendants computed it at 2662 square feet. A chain link fence plaintiff had built to the north of a masonry building on the land was moved 13 to 20 feet closer to the structure. Defendants’ evidence indicated it was constructed partially on the ditch slope.

At trial plaintiffs appraiser fixed plaintiffs damages at $16,310. His opinion was based on a taking of about 6300 square feet in fee, in addition to severance damages. Defendants’ expert fixed the damages at $2000, representing the diminution in value caused by the county’s acquisition of an additional 2662 square foot easement.

The trial evidence disclosed the base of the ditch was, for the most part, on the 40-foot strip on the north side of lots 122 and 123 conveyed to the state. There was evidence, however, from which the jury could have found the slope, levee and back slope extended into plaintiff’s property, except where encroached upon by prior owners and the plaintiff.

Throughout trial, defendants sought to show the existence of a prior drainage right of way on plaintiff’s property through records of the 1955 acquisition, kept in the auditor’s office pursuant to Iowa Code sections 455.185 and 455.186. Plaintiff’s counsel persuaded trial court that unless such evidence was recorded in the recorder’s office, it was ineffective in establishing any prior rights in plaintiff’s land. Trial court excluded much testimony and evidence of the 1955 acquisition on this premise.

When plaintiff rested, trial court granted plaintiff’s oral motion to amend its petition to allege that it was a “bona fide purchaser in good faith.”

Defendants appeal on a number of grounds. We discuss the controlling ground in division I.

I. Plaintiff’s success in convincing the court that defendants could have retained no ditch right of way in plaintiff’s property because there was nothing concerning it filed in the recorder’s office caused the court to commit reversible error. This resulted from a rigid interpretation and application of Iowa Code section 558.41:

No instrument affecting real estate is of any validity against subsequent purchasers for a valuable consideration, without notice, unless filed in the office of the recorder of the county in which the same lies, as hereinafter provided.

Plaintiff’s contentions throughout trial ignored the words “without notice” in the above statute.

Existing rights in property may exist apart from filings in the recorder’s office:

Absent express notice given, a land purchaser generally has three established sources of information to which he should turn for ascertainment of existing rights in any property he proposes to buy: (1) the records in the County Recorder’s office where basic rights involved are recorded; (2) other public records, to discover existence of rights not always disclosed in the County Recorder’s office, i.e., judgments, liens and taxes; and (3) an inspection of the land itself, to determine by observation any rights which may exist apart from our recording system by virtue of occupancy, use or otherwise.

Bartels v. Hennessey Brothers, Inc., 164 N.W.2d 87, 94 (Iowa 1969).

Notice, then, may be constructive or actual. Constructive notice is given by compliance with the recording statutes. Actual notice depends upon the purchaser having either actual knowledge of the easement or knowledge of sufficient facts to charge him or her with a duty to make inquiry that would reveal the existence of the easement. Gilmore v. New Beck Levee District, Harrison County, 212 N.W.2d 477, 479 (Iowa 1973); see also Stouder v. Dashner, 242 Iowa 1340, 1353, 49 N.W.2d 859, 866 (1951).

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351 N.W.2d 509, 1984 Iowa Sup. LEXIS 1159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-properties-corp-v-polk-county-iowa-1984.