Sundance Land Company, LLC v. Phillip Remmark and Bobbie Remmark

Supreme Court of Iowa·Decided June 14, 2024·No. 22-0848·Published

Opinion

IN THE SUPREME COURT OF IOWA No. 22–0848

Submitted March 21, 2024—Filed June 14, 2024

SUNDANCE LAND COMPANY, LLC, Appellant, vs. PHILLIP REMMARK and BOBBIE REMMARK, Appellees.

On review from the Iowa Court of Appeals.

Appeal from the Iowa District Court for Wapello County, Wyatt Peterson, Judge.

A landowner seeks further review of a court of appeals decision affirming the district court’s determination of a boundary by acquiescence. COURT OF

APPEALS DECISION VACATED; DISTRICT COURT JUDGMENT REVERSED AND REMANDED.

Mansfield, J., delivered the opinion of the court, in which Christensen, C.J., and Waterman and McDermott, JJ., joined. McDonald, J., filed a special

concurrence, in which May, J., joined. Oxley, J., filed a dissenting opinion.

Bradley M. Grothe (argued) of Craver & Grothe, LLP, Centerville, for appellant.

Bryan Goldsmith (argued) and Michael O. Carpenter (until withdrawal) of Gaumer, Emanuel, Carpenter & Goldsmith, P.C., Ottumwa, for appellees.

MANSFIELD, Justice.

I. Introduction.

The saying goes that “good fences make good neighbors.” Sometimes they make good boundaries as well. Under Iowa law, when neighbors have treated a fence or other marker as the dividing line between their respective properties for ten consecutive years, even if the legal line of demarcation is located elsewhere, either of them can go to court and seek a judicial decree that a boundary by acquiescence has been established.

But what if the properties are acquired by the same owner before anyone has gone to court? Does that mean the process of recognizing some boundary other than the legal one has to start over if the properties later go back into separate ownership? After all, when there is only one owner of the two properties, there is no need to recognize a boundary. No one is their own neighbor.

We join other jurisdictions in holding that a boundary by acquiescence determination contemplates that the properties have been in separate ownership during the required ten-year period leading up to the present controversy. This rule is consistent with the text of Iowa Code chapter 650 and leads generally to

reasonable and fair outcomes. We disagree with the reasoning of the lower courts that would allow a party to seize on any past ten-year period of de facto boundary

recognition by two neighbors, regardless of intervening events, and have that boundary declared the actual legal boundary.

II. Background Facts and Proceedings.

A. The Properties at Issue. This case concerns two parcels in Wapello County located north–south of each other. The north parcel (North Property) is approximately 80 acres. The south (South Property) is approximately 60 acres.

Access to both properties is from Lake Road, which lies to the east and runs north–south.

The county used to have an easement for a road that ran west from Lake Road. The road’s east–west path ran slightly north of the legal boundary between the two properties. At some point, a fence was put up along the north edge of the right of way for the road. Evidence remained of the old road with rows of trees on either side. The record does not reveal when the road ceased to exist, but the county abandoned the easement for it in 1980. As will be discussed, the fence continued until recently.

B. The Handlings’ Ownership of the North Property. The North Property was owned for many years by Larry and Linda Handling, and after their 2001 divorce, by Linda Handling alone.

Handling always considered the fence line to be the “proper boundary”

between the tracts. Handling never mowed the land to the south of the fence. She testified that she never had a survey of the land done and was not aware of a survey being performed while, or before, she owned the North Property. She never removed the purported boundary fence.

In the mid-1990s, Scott Hubbell began leasing the North Property. He was a continuous tenant of the North Property until Linda sold the land to him in

May 2014. At this point, Handling still considered the southern boundary of the parcel to be the fence line.

C. The Sims’ Ownership of the South Property. For many years, Hobart and Mary Sims owned the South Property. A neighbor recalled that Hobart Sims always regarded the fence line as the boundary. He recalled that Sims always maintained the area south of the fence and that the Handlings never did.

D. The Hubbells’ Possession and Then Ownership of the North and South Properties. Scott Hubbell, a farmer, began renting the North Property

from the Handlings to farm in the mid-1990s. About a year after that, Hubbell began renting the South Property from the Sims to farm. Other than the fact that

the Sims continued to live in the home on the South Property, Hubbell had essentially full control over both tracts of land. Hubbell raised row crops.

In 2004, Hubbell put in a large machine shed south of the fence line on what he assumed was the South Property. In 2005, he and his wife entered into a contract for deed to purchase the South Property from the Sims. The Hubbells moved into the house located on the South Property, and the Sims moved out.

Scott Hubbell recalled that the fence was “dilapidated” when he began renting the two properties. He removed it at some point, but Hubbell put in a new fence when he decided to pasture cattle on the North Property during the winter. In 2010, he removed the new fence. However, some fence posts remain, and thus the fence line is discernible even today.

In May 2014, Hubbell and his wife completed the contract for deed and became record title owners of the South Property. At the same time, the Hubbells purchased the North Property, thus making them record title owners of both properties.

In 2014 or 2015, Scott Hubbell installed a grain bin south of the old fence line. Again, this was on what he believed was the South Property. However,

Hubbell was not concerned with the boundary between the two parcels while he rented both of them and especially while he owned both of them.1 The Hubbells’

ownership of the two properties continued for almost three years.

1Hubbell testified as follows:

Q. When you owned both properties for roughly three years, did you have a boundary line inside your property dividing the property from yourself?

A. No.

Q. Be no reason to have a boundary line for property that you owned on both sides, right? Is that correct?

A. Correct.

E. The Remmarks’ Purchase of the South Property. In April 2017, the Hubbells sold the South Property to Phillip and Bobbie Remmark. Hubbell did not believe he was giving the Remmarks “anything less than the total use of the machine shed . . . [o]r the grain bin.” The realtor’s brochure indicated that the shed and the grain bin were included in the sale.

F. Sundance’s Purchase of the North Property. Sundance Land Company purchased the North Property from the Hubbells in September 2018. Keith Davis, the president and manager of Sundance Land Company, testified regarding the acquisition and events that followed. Before the purchase, Davis went to the property to view it and had a few questions about entrances and access. He also looked up the property on the county GIS website and noticed that the property line showed “encroachment of some of the southern property.” He decided to have a land survey done.

The August 2018 survey revealed that the legal boundary between the North Property and the South Property actually ran south of the fence line. As a result, the machine shed was encroaching onto the North Property by “18.73 feet to 20.07 feet” and the grain bin pad “at its maximum by 21.16 feet.” The surveyor

recorded his survey on August 24.

Despite this information, Sundance went through with the purchase.

Davis felt that the encroachment was “something that c[ould] be worked out” between the two property owners.2

2Specifically, Davis testified as follows:

Q. And then you still decided to go forward?

A. Yes.

Q. And why?

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