Steven Schueller v. Allison Gillies and Stone Hill Community Association

CourtCourt of Appeals of Iowa
DecidedJanuary 21, 2021
Docket19-2114
StatusPublished

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Steven Schueller v. Allison Gillies and Stone Hill Community Association, (iowactapp 2021).

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 19-2114 Filed January 21, 2021

STEVEN SCHUELLER, Plaintiff-Appellant,

vs.

ALLISON GILLIES and STONE HILL COMMUNITY ASSOCIATION, Defendants-Appellees. ________________________________________________________________

Appeal from the Iowa District Court for Dubuque County, Michael J.

Shubatt, Judge.

Steven Schueller appeals the district court’s order denying his action to

quiet title and entering a money judgment in favor of Stone Hill Community

Association. AFFIRMED.

Christopher C. Fry and Alyssa M. Carlson of O’Connor & Thomas, P.C.,

Dubuque, for appellant.

Chadwyn D. Cox of Reynolds & Kenline, L.L.P., Dubuque, for appellee

Stone Hill Community Association.

Jason D. Lehman of Lehman Legal, PLC, Dubuque, for appellee Allison

Gillies.

Considered by Bower, C.J., and May and Ahlers, JJ. 2

MAY, Judge.

Steven Schueller appeals the district court’s order denying his action to

quiet title and entering a money judgment in favor of Stone Hill Community

Association (Stone Hill) for unpaid assessments. We affirm.

I. Background Facts and Prior Proceedings

In 1978, Schueller married Allison Gilles. A few months later, they

purchased a townhouse together. It is located within the Stone Hill Community in

Dubuque, Iowa.

In 1983, they moved to Arkansas with their children. And Schueller rented

out the townhouse. Around 1990, Schueller’s parents moved into the townhouse

and paid Schueller rent. Schueller’s parents also paid annual and special

assessments to Stone Hill as needed.

Around 1995, Gillies moved back to the Dubuque area. She testified that,

while she was aware she had an ownership interest in the townhouse, “[m]y in-

laws were living there, and I did not feel it was decent to remove two elderly people

from their home.” Occasionally, she would visit the townhouse so the children

could visit their grandparents. But she never resided at the townhouse after the

family moved to Arkansas in 1983.

After approximately four years of separation, Gillies and Schueller divorced

in 1999. The divorce decree declared Gillies and Schueller tenants in common to

the townhouse. In 2000, Schueller’s father died. And in 2011, Schueller’s mother

died. After 2011, no one resided in the townhouse, although Schueller stayed

there when he made visits to Dubuque. Schueller testified at trial that his visits to 3

the Dubuque area became less frequent because his “health dwindled” and he

“was no longer able to make the trip.”

During their marriage, Schueller paid all bills related to the townhouse.

Gillies did not have any involvement in the family’s financial matters or

management of the townhouse. Likewise, after their divorce, Gillies was not

involved in the financial matters or management of the townhouse. Gillies did not

receive any rent payments from Schueller. Nor did she pay any bills related to the

townhouse. Rather, Schueller continued to pay all bills related to the townhouse

after the divorce, including paying off the remainder of the mortgage amounting to

approximately $50,000.

But after his mother’s death in 2011, Schueller did not pay assessments to

Stone Hill. Schueller took the position that he was not required to pay the

assessments because Stone Hill’s covenants had expired. In 2012, Stone Hill

brought the matter to small claims court to collect unpaid assessments for 2011

and 2012.1 The magistrate agreed with Schueller and dismissed the case.2 Stone

Hill did not appeal.

1 The 2012 small claims court case lists only Schueller as the defendant. Until 2018, Stone Hill believed Schueller was the sole owner of the townhouse. A representative for Stone Hill testified it was not aware whether Gillies was deceased or divorced from Schueller. 2 The small claims court found:

[T]he 1976 restrictive covenants expired in 1997 pursuant to Iowa Code section 614.24 [(2012)]. The restrictive covenants executed in 1998 did not extend the 1976 covenants as they were not filed within twenty-one (21) years. In addition, the 1998 restrictive covenants were not signed by [Schueller] and therefore are not applicable to his property. 4

In 2018, Stone Hill learned that Gillies lived in the area and was still co-

owner of the townhouse. In 2019, Stone Hill sent Gillies a substantial bill for unpaid

assessments. The bill prompted Gillies to file a petition for partition of the

townhouse. Schueller answered and pled an affirmative defense of adverse

possession. He also filed a petition to quiet title on the townhouse in his favor.

Stone Hill intervened to collect unpaid assessments accrued from 2013 to 2019.

The district court (1) concluded Gillies and Schueller own the townhouse as

tenants in common, (2) granted Gillies’s partition claim, (3) ordered Schueller and

Gillies to take reasonable steps to sell the townhouse and then share the net sale

proceeds, (4) rejected Schueller’s claim of adverse possession and, therefore,

denied his action to quiet title to the townhouse, and (5) granted judgment in favor

of Stone Hill and against Schueller and Gillies equally for $24,652.44 in unpaid

assessments. Schueller now appeals.

II. Standard of Review

The district court tried the case in equity. So we review all claims de novo.

Iowa R. App. P. 6.907 (“Review in equity cases shall be de novo.”); In re Coe Coll.,

935 N.W.2d 581, 586 (Iowa 2019) (“[A]n action tried wholly in equity will be subject

to a de novo standard of review . . . .”); Johnson v. Kaster, 637 N.W.2d 174, 177

(Iowa 2001) (“Generally, we will hear a case on appeal in the same manner in

which it was tried in the district court.”); Davis-Eisenhart Mktg. Co. v. Baysden, 539

N.W.2d 140, 142 (Iowa 1995) (“[W]e ordinarily hear cases on appeal in the manner

in which they were treated in district court.”); Citizens Sav. Bank v. Sac City State

Bank, 315 N.W.2d 20, 24 (Iowa 1982) (“[W]e will consider and review a case on

appeal in the manner it was treated below.”). But, to the extent this case turns on 5

interpretation of a statute, our review is for errors at law. Estate of Cox v. Dunakey

& Klatt, P.C., 893 N.W.2d 295, 302 (Iowa 2017).

III. Analysis

Schueller claims the district court erred in (1) finding he failed to meet the

elements of adverse possession and (2) awarding Stone Hill unpaid assessments

accrued from 2013 to 2019. We address each claim in turn.

A. Adverse Possession

“A party claiming title by adverse possession must establish hostile, actual,

open, exclusive and continuous possession, under claim of right or color of title for

at least ten years.” C.H. Moore Tr. Est. v. City of Storm Lake, 423 N.W.2d 13, 15

(Iowa 1988). “The burden is on the plaintiff to show all the elements of adverse

possession by clear and positive proof.” Louisa Cnty. Conservation Bd. v. Malone,

778 N.W.2d 204, 207 (Iowa Ct. App. 2009). But our analysis shifts slightly where,

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