SRB Investment v. Spencer

2023 UT App 120, 538 P.3d 231
CourtCourt of Appeals of Utah
DecidedOctober 5, 2023
Docket20220195-CA
StatusPublished
Cited by2 cases

This text of 2023 UT App 120 (SRB Investment v. Spencer) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SRB Investment v. Spencer, 2023 UT App 120, 538 P.3d 231 (Utah Ct. App. 2023).

Opinion

2023 UT App 120

THE UTAH COURT OF APPEALS

SRB INVESTMENT CO., Appellee, v. DALE ORSON SPENCER, ET AL., 1 Appellants.

Opinion No. 20220195-CA Filed October 5, 2023

Sixth District Court, Kanab Department The Honorable Wallace A. Lee No. 120600113

Clifford V. Dunn, Adam C. Dunn, and Michael C. Dunn, Attorneys for Appellants V. Lowry Snow, Devin Snow, and Devon J. Herrmann, Attorneys for Appellee

JUDGE RYAN D. TENNEY authored this Opinion, in which JUDGES RYAN M. HARRIS and AMY J. OLIVER concurred.

TENNEY, Judge:

¶1 SRB Investment Co. (SRB) owns a 240-acre parcel of property in rural Kane County. To access its property, SRB must cross through property owned by the Spencers. In 2012, the Spencers began refusing to let SRB cross through their property. SRB accordingly sued. At the conclusion of a bench trial, the district court ruled that SRB had a “flexibly located roadway easement” that allowed it to cross through the Spencers’ property,

1. Additional Appellants include Mary C. Pedersen, George A. Pedersen, Mary Ellen Spencer, Mark D. Spencer, Charlene Spencer, Spencer Ranch, Inc., KOB Properties, LLC, and Good Day Ranch, LLC. SRB Investment v. Spencer

but that SRB’s use was limited to “farming and ranching purposes, and uses at random times for random reasons.”

¶2 SRB appealed, arguing that the limitations the court had imposed on its use were improper. See SRB Inv. Co. v. Spencer (SRB I), 2020 UT 23, 463 P.3d 654. The Utah Supreme Court agreed with SRB and vacated those limitations, and it then remanded with instructions for the district court to make a new determination about the scope of the easement. Id. ¶ 1. On remand, the district court ruled that SRB had a “flexible” easement to cross the Spencers’ property. The court also ruled that the Spencers may only make “reasonable, minor changes” to the location of the road in question. The Spencers now appeal that determination, arguing that the court should not have limited their ability to change the road’s location. For the reasons set forth below, we affirm.

BACKGROUND

History of the Easement

¶3 The Spencer family owns a large amount of property in a mostly undeveloped part of Kane County. 2 The Spencers’ property is located on something of a bluff, and the area is sometimes referred to as “the Spencer Bench.” SRB owns a 240- acre parcel of property on the Spencer Bench. Because of the topography, the only way to access SRB’s property in a vehicle is to drive about three miles on Highway 89 beyond the SRB property and then traverse back to the property using a dirt road that crosses through property owned by the Spencers.

2. To be a bit more precise: this land is owned by a number of people or entities that are either directly related to the Spencer family or associated with them. For ease of reference, we’ll refer to them collectively as the Spencers or the Spencer family.

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¶4 Norman Carroll was the previous owner of the SRB property, and his father and grandfather had owned it before him. Carroll later recalled that in 1940, when he was about 10 years old, he “was going up” to the property “all the time.” 3 He also recalled that from the 1940s on, his family accessed their property by using a dirt road that crossed through the Spencers’ property.

¶5 Carroll and his family used their property for sheep grazing and wheat planting, so they transported “all the farm equipment,” the “harvesting equipment,” and “the camps” on the road that ran across the Spencer property. Carroll and his family used the road “for years and years and years,” and when they did, they “never had to ask permission.” Although the Spencers placed a gate with a lock across the road at certain times, they would tell the Carrolls where any key was or simply give a copy of the key to them.

¶6 The Carrolls weren’t the only ones using the road. Other owners on the Spencer Bench also used the road. And this pattern of neighborliness ran both ways—the Carrolls allowed the Spencers’ cattle to feed on their property when they weren’t using it, and the Spencers were allowed to travel across the Carroll property to access certain portions of their own property.

¶7 Of particular note for this appeal, the Spencers would sometimes “cut variant roads randomly across their property,” and when they did, the Carrolls would “use[] the newly cut roads.” This process of the Spencers sometimes moving the road and the Carrolls then using the new one continued “as late as the 1990s or 2000s.” But Carroll also said that “[f]or a long time, there

3. Norman Carroll was deposed while this case was pending, but he passed away before trial. His deposition was admitted at trial, and any references in this opinion to his statements are drawn from that deposition.

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was only one” road and that when the Spencers did move it, its location was only “changed a little bit.”

¶8 Sometime around 1980, a member of the Spencer family told Carroll that if Carroll ever wanted to sell his property, the Spencers would like to purchase it. This member of the Spencer family believed that he had “a verbal agreement” at that point in which the Spencers would be able to purchase the property if Carroll ever sold it. In 2005, however, Carroll sold the property to SRB. 4 Some of the Spencers believed that Carroll “had broken” the verbal agreement.

¶9 SRB “had no plans to develop” its property but instead “planned on splitting” it and building two family cabins on it. After SRB purchased the property from Carroll, however, the Spencers objected to SRB’s continued use of the road that crossed through their property. The Spencers then built a house in the middle of the then-existing road, after which they “built a new variant” of the road nearby and began demanding payment from SRB for the right to use it. The SRB owners thought the Spencers were asking for an unreasonable amount of money, particularly given that Carroll had never been charged for his use of the road, so the SRB owners told the Spencers that they would not pay. In response, the Spencers put a locked gate across the road and didn’t give SRB a key, thus effectively blocking SRB’s access to its property.

The District Court’s Initial Ruling Regarding an Easement

¶10 In 2012, SRB sued, asking for a judicial declaration that it had an “ingress and egress” easement across the Spencer

4. Stephan R. Brown formed SRB in the early 1990s to purchase real property for investment purposes, and SRB owns other real property near the Spencer Bench as well. Brown is SRB’s general partner and his wife is “the only limited partner.” The name “SRB” comes from Brown’s initials.

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property. After much litigation that’s not relevant to this appeal, the district court held a bench trial in May 2018, after which it issued a written ruling.

¶11 The court noted that under Utah law, SRB was required to show that there had been “open, notorious, adverse, and continuous use [across the Spencer property] for at least 20 years.” In its ruling, the court found that the relevant 20-year period for establishing a prescriptive easement “started in the 1940s and ended sometime in the 1960s” and that “a prescriptive easement” across the Spencer property had accordingly been established. The court ruled that this was a “flexibly located [r]oadway[] easement”—i.e., that the Spencers could “vary” the easement’s location as they “reasonably wish to designate variant paths” and that SRB “should follow it, as has been done historically.”

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Cite This Page — Counsel Stack

Bluebook (online)
2023 UT App 120, 538 P.3d 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/srb-investment-v-spencer-utahctapp-2023.