Precious Offerings Mineral Exchange, Inc. v. McLain

194 P.3d 455, 2008 Colo. App. LEXIS 1273, 2008 WL 3101010
Colorado Court of Appeals·Decided August 7, 2008·No. No. 07CA1264·Published·Cited by 47 cases

Opinion

Opinion by

Judge CRISWELL.*

In this dispute over the existence of an easement across real property owned by defendants, David J. McLain and LaDonna J. MeLain, plaintiff, Precious Offerings Mineral Exchange, Inc., appeals the judgments entered against it. We affirm.

Plaintiff owns several unpatented mining claims located on Bureau of Land Management (BLM) land in Gunnison County. In the 1940s, the federal government, pursuant to the Defense Highway Act of 1941, built an access road from a public highway to the land where these mining claims are located. The federal government concluded that the raw materials found at that location were "of importance to the war effort." The access [456] road crosses defendants' land, and defendants' predecessor executed a "Right of Entry," allowing the government access to the property for the purpose of constructing the road.

Shortly after plaintiff purchased the mining claims in 1999, defendants locked a gate across the access road and refused to allowed plaintiff to use that portion of the access road which erossed their property. In 2005, plaintiff brought this action asserting a right to use the access road and arguing that there was an easement by express grant, an easement by estoppel, a prescriptive easement, and a public road by virtue of construction with government funds. Alternatively, plaintiff sought to condemn a way of necessity.

Defendants moved to dismiss. Because the motion to dismiss included supporting documents that went beyond the complaint's allegations, the trial court treated it as a motion for summary judgment. The court granted summary judgment for defendant on all of plaintiff's claims, except the claim based on an express easement.

The trial court then heard evidence on the express casement claim. After the close of evidence, plaintiff filed a motion to amend the complaint to conform to the evidence, seeking to add a claim for easement by implication. The trial court granted the motion to amend. The trial court then concluded that plaintiff had established neither an express easement nor an easement by implication.

Plaintiff appeals from the grant of summary judgment in defendants' favor and the judgment entered after a bench trial dismissing plaintiff's easement by implication claim. It does not appeal from the judgment dismissing its express easement claim.

I

Plaintiff first argues that the trial court erred in concluding that it did not have standing to assert a private condemnation claim. We disagree.

We review a trial court's grant of summary judgment de novo. Aspen Wilderness Workshop, Inc. v. Colo. Water Conservation Bd., 901 P.2d 1251, 1256 (Colo.1995). A party is entitled to summary judgment if the pleadings, discovery materials on file, and the affidavits of the parties, if any, establish that there is no genuine issue as to any material fact, and the moving party is entitled to a judgment as a matter of law. C.R.C.P. 56(c).

Despite generally prohibiting private takings, Colorado law allows for private condemnation of easements of necessity: "Private property shall not be taken for private use unless by consent of the owner, except private ways of necessity, and except for reservoirs, drains, flumes or ditches on or across the lands of others, for agricultural, mining, milling, domestic or sanitary purposes." Colo. Const. art. II, § 14; see § 38-1-102(8), C.R.S.2007 ("Under the provisions of this section, private property may be taken for private use, for private ways of necessity, and for reservoirs, drains, flumes, or ditches on or across the lands of others for agricultural, mining, milling, domestic, or sanitary purposes.").

In Coquina Oil Corp. v. Harry Kourlis Ranch, 643 P.2d 519, 520 (Colo.1982), the holder of federal oil and gas leases sought to condemn a private way of necessity. There, the trial court dismissed the petition for condemnation, concluding that the right to condemn is "only available to owners of fee interests and not available to federal oil and gas lessees." Id. The supreme court affirmed. Id.

First, the court recognized that article II, section 14 of the Colorado Constitution and section 38-1-102(8) are ambiguous as to whether a lessee may assert the power of condemnation. Id. at 522. However, reasoning that it must narrowly construe "the condemnation power delegated pursuant to legislative enactment," the court resolved this ambiguity against the lessee and concluded that it did not have standing to bring a condemnation action. Id.; see Akin v. Four Corners Encampment, 179 P.3d 139, 144 (Colo.App.2007) ("Because the power to condemn private property is in derogation of the right to own and keep property, the exceptions in art. II, $ 14 must be interpreted narrowly, with any uncertainty in the ambit of the power to condemn resolved against the person asserting that power."); [457] see also Clyde 0. Martz, Rebecca Love & Charles L. Kaiser, Access to Mineral Interests by Right, Permit, Condemnation or Purchase, 28 Rocky Min. Min. L. Inst. 1075, 1115 (1982) (opining that Coguina restricts condemnation authority to fee owners).

The supreme court also rejected the Co-quina plaintiff's argument that such a result was contrary to public policy. Because oil and gas leases are temporary, the supreme court was concerned that the owner of the servient estate would be subject to multiple condemnation actions; the court concluded that subjecting a property owner to multiple condemnation lawsuits would be undesirable. Coquina, 643 P.2d at 522. At the same time, the court noted that the fee owner, the federal government, could condemn an easement to serve the leases and that it was the appropriate body to make that determination. Id. at 522-23.

Whether Coquina established the rule that only fee simple absolute owners may exercise the right of private condemnation under the constitution and statute is unclear. Whether this grant of authority contemplates its exercise by the owner of a lesser interest, such as the owner of a fee simple determinable or even a life estate, is an issue not addressed by Coquina. We conclude, however, that a temporary possessory interest, similar to the interest held by a federal oil and gas lessee, is insufficient under those provisions to allow the owner of such an interest to condemn property for a private purpose.

We also conclude that the interest in un-patented mining claims held by plaintiff is more similar to the interest held by an oil and gas lessee than it is to a fee simple interest.

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Precious Offerings Mineral Exchange, Inc. v. McLain, 194 P.3d 455, 2008 Colo. App. LEXIS 1273, 2008 WL 3101010 (Colo. Ct. App. 2008).

194 P.3d 455 (Precious Offerings Mineral Exchange, Inc. v. McLain) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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