Schubert v. Toepp

2025 MT 239
Montana Supreme Court·Decided October 21, 2025·No. DA 24-0675·Published

Opinion

10/21/2025

DA 24-0675

Case Number: DA 24-0675

IN THE SUPREME COURT OF THE STATE OF MONTANA 2025 MT 239

PATTI SCHUBERT and STEVE SCHUBERT,

Plaintiffs, Counter-Defendants, Appellants and Cross Appellees,

v.

JEREMY TOEPP and TYNAGH TOEPP,

Defendants, Counterclaimants, Appellees and Cross-Appellants.

APPEAL FROM: District Court of the Thirteenth Judicial District, In and For the County of Yellowstone, Cause No. DV-21-1326 Honorable Colette B. Davies, Presiding Judge

COUNSEL OF RECORD:

For Appellants:

Michael F. McGuinness, Patten, Peterman, Bekkedahl & Green, P.L.L.C., Billings, Montana

For Appellees:

Kellie G. Sironi, Attorney at Law, Billings, Montana

Submitted on Briefs: August 13, 2025 Decided: October 21, 2025

Filed:

Clerk

Justice Laurie McKinnon delivered the Opinion of the Court.

¶1 Patti and Steve Schubert (“Schuberts”) appeal from the May 22, 2024 Order Enforcing Settlement Agreement and Awarding Fees and Costs, issued by the Thirteenth Judicial District Court, Yellowstone County, granting in part Jeremy and Tynagh Toepps’ (“Toepps”) Motion to Enforce Settlement Agreement. The District Court held that the parties’ Memorandum of Understanding (“MOU”) was a legally binding agreement that implied that the Schuberts’ gate which encroaches onto the Toepps’ property (“Encroaching Gate”) could remain in place. The District Court also ordered that the Schuberts may use their easement over the Toepps’ property for ingress and egress only and awarded Toepps’ their attorney fees for costs incurred by enforcing the MOU. The Schuberts appeal the scope of the easement for the Encroaching Gate, the scope of the Access Easement, and the award of the Toepps’ attorney fees. The Toepps cross-appeal the District Court’s ruling that the terms of the MOU implied that the Encroaching Gate could remain in its current location. We affirm in part and reverse in part.

¶2 We restate the following issues on appeal:

1. Whether the Distrct Court erred when it found that the terms of the MOU implied that the parties had contemplated that the Encroaching Gate could remain in its current location.

2. Whether the District Court erred when it limited the Schuberts’ use of the Access Easement to strictly ingress and egress purposes only.

3. Whether the District Court abused its discretion by awarding the Toepps their attorney fees associated with enforcing the MOU.

FACTUAL AND PROCEDURAL BACKGROUND

¶3 This case concerns the use of two easements that were created upon the subdivision of real property located in Yellowstone County and known as “Tract 7B.” In 2016, Thomas and Cheryl Morgan subdivided Tract 7B into Tracts 7B-1 and 7B-2. Thomas Morgan conveyed title to Tract 7B-1 by quitclaim deed to Cheryl Morgan, and both Thomas and Cheryl Morgan continued to own Tract 7B-2 together as joint tenants with right of survivorship. Tract 7B-1 contained a log home with gardens and landscaping and tract 7B-2 contained a barn, a pasture area, and other fixtures, including a well (“Well”). Tract 7B-2 reserved a 30 foot-wide easement across Tract 7-B1 for ingress and egress to and from Tract 7B-2 (“Access Easement”). In 2017, Cheryl conveyed Tract 7B-1 to the Swansons by warranty deed which included an easement for the use, repair, and maintenance of the Well located on Tract 7B-2. Thomas and Cheryl Morgan then conveyed by warranty deed, subject to all existing easements, Tract 7B-2 to the Schuberts. In 2021, the Swansons conveyed by warranty deed Tract 7B-1 to the Toepps, including all appurtenances. The Department of Natural Resources and Conservation listed both the Schuberts and the Toepps as co-owners of the water right associated with the Well as of 2021.

¶4 The Access Easement runs east to west across the Toepps’ property and is bordered by the Toepps’ fence to the north and a fence to the south. Although the Access Easement is 30 foot wide, the route of ingress and egress is an approximately 10 foot-wide gravel road. Soon after acquiring Tract 7B-2, the Schuberts installed a large, electric gate (the Encroaching Gate) along the western boundary line of the Access Easement and a stand-

alone keypad and package delivery box within the easement area. The placement of the Encroaching Gate prevents the Toepps from straightening out their fence along the boundary line with the Access Easement. On multiple occasions, the Schuberts raked the Access Easement with their tractor, employed a push-behind weed whacker, and sprayed for weeds to remove vegetation surrounding the gravel road without giving notice to the Toepps. Gravel kicked up from these activities caused damage to the Toepps’ trailer. The Schuberts have also run into the Toepps’ fence with their tractor. The Toepps were also concerned about potential hazards to their children, dogs, and livestock given that they did not know what the Schuberts were using to spray for weeds. In addition, the Toepps were trying to get vegetation to grow along their fence. On at least one occasion, Patti Schubert refused to stop removing vegetation when asked to do so by Jeremy Toepp.

¶5 The Schuberts disputed whether the Toepps had any rights to use the Well (“Well Easement”) and brought an action in the District Court to quiet title to the Well Easement. The Schuberts argued that Cheryl Morgan did not have the legal authority to convey an easement over Tract 7B-2 for the Well when she sold Tract 7B-1 to the Swansons because she was a joint tenant with Thomas Morgan, who the Schuberts alleged did not agree to such an easement. The Toepps denied that the Morgans did not convey an interest in the Well Easement to the Swansons and counterclaimed that the Encroaching Gate, keypad, and delivery package box, as well as the Schuberts’ removal of vegetation, among other conduct, overburdened the Access Easement. In their Answer, the Toepps alleged that the Encroaching Gate was located on the property line between the Access Easement and the Schuberts’ property. However, by June 2022, the Toepps had discovered through a

surveyor that the Encroaching Gate encroached 7 feet and 6 inches to the north and 2 inches to the east upon the Toepps’ property.

¶6 The Honorable Michael Moses conducted a 12-hour mediation between the parties on December 9, 2022. Near the end of mediation and after the parties had agreed to the terms of the MOU, counsel for the Schuberts presented the Toepps with a proposed judgment, easement grant, and quitclaim agreement. Needing more time to digest the Schuberts’ proposal, the Toepps declined to sign any additional paperwork and instead the parties agreed to amend the MOU to provide that they would stipulate to a “judgement as proposed by Schuberts and approved by all counsel” (emphasis added). The MOU is a printout of an email the Schuberts’ counsel sent to Judge Moses with handwritten amendments and signed by Steve and Patti Schubert and Jeremy and Tynagh Toepp, as well as the parties’ respective counsel.

¶7 The MOU provides the following terms lightly edited for clarity:

Montana Defense Trial Lawyers (“MDTL”) settlement agreement with mutual release.

Schuberts move keypad 3 feet west taking into account existing electrical lines (by July 1, 2023, but will use reasonable efforts to have it done prior, once they return to Montana) if electrical line will adjust 6 inches one way or another.

Schuberts’ package box will remain.

West facing camera on Easement OK with angle down the property line.

Payment of $25,000 to Toepps by Schuberts or their insurer within reasonable time following execution of settlement agreement documents.

Schuberts may at their own expense install a 7-foot tall, corrugated steel fence along property line. If existing fence is determined to be on Schuberts’

property per Amended 7B COS 2085, Toepps shall, at their own expense, remove all such portions within 7 days of being provided with written notice of the same. Notice will be provided by email, hand delivered, or USPS first class effective on mailing.

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