Wellberg Investments, LLC v. Greener Hills Subdivision

2014 UT App 222, 336 P.3d 61, 769 Utah Adv. Rep. 53, 2014 Utah App. LEXIS 227, 2014 WL 4638703
CourtCourt of Appeals of Utah
DecidedSeptember 18, 2014
Docket20130043-CA
StatusPublished
Cited by1 cases

This text of 2014 UT App 222 (Wellberg Investments, LLC v. Greener Hills Subdivision) 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
Wellberg Investments, LLC v. Greener Hills Subdivision, 2014 UT App 222, 336 P.3d 61, 769 Utah Adv. Rep. 53, 2014 Utah App. LEXIS 227, 2014 WL 4638703 (Utah Ct. App. 2014).

Opinion

Memorandum Decision

DAVIS, Judge:

{1 Wellberg Investments, LLC appeals from the district court's denial of its motion for summary judgment and its grant of summary judgment in favor of defendants Greener Hills Subdivision, Christensen Mountain Properties, and Dorothy Christensen (collectively, the Defendants). In granting summary judgment in favor of the Defendants, the district court determined that Wellberg's land is not benefitted by an express easement that Greener Hills granted to the Christensen defendants (the Easement). We affirm.

T2 "Summary judgment is proper only when there is no genuine issue of material fact in dispute and the moving party is entitled to judgment as a matter of law." Canyon Meadows HOA v. Wasatch Cnty. 2001 UT App 414, ¶ 8, 40 P.3d 1148. "In deciding whether the trial court correctly granted judgment as a matter of law, we give no deference to the trial court's view of the law; we review it for correctness." SME Indus., Inc. v. Thompson, Ventulett, Stainback & Assocs., Inc., 2001 UT 54, ¶ 9, 28 P.3d 669 (citation and internal quotation marks omitted).

13 "An easement is a 'nonpossesso-ry right to enter and use land in the possession of another and obligates the possessor not to interfere with the uses authorized by the easement.'" Marvin M. Brandt Revocable Trust v. United States, — U.S. —, 134 S.Ct 1257, 1265, 188 LEd.2d 272 (2014) (quoting Restatement (Third) of Prop.: Ser-vitudes § 1.2(1) (1998)); accord Alliant Tech-systems, Inc. v. Salt Lake Cnty. Bd. of Equalization, 2012 UT 4, ¶ 22 n. 26, 270 P.3d 441. Because the grant of an easement is a transfer of an interest in real property, "[uln-der Utah law, easements must generally comply with the statute of frauds by being *63 reduced to writing." Green v. Stansfield, 886 P.2d 117, 122 (Utah Ct.App.1994). Here, the written Grant of Easement (the Easement Agreement) provides,

This Grant of Easement and Right of Way is made and entered into this 20 day of October, 2000. Greener Hills L.L.C,, ... grants a right of way over and across the right of way between Lots 86, 87, 38, 89, and 40 to the North boundary line of Greenerhills Subdivision for the benefit of Harold Christensen and Dorothy Christensen their assigns or heirs.
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A Non-Exelusive 50 foot wide easement for ingress, egress, storm drain, water system, sewer, landscaping, irrigation, grading, public and private utilities, and emer-geney vehicle use purposes to be used in common with others for access to property to the north of Greenerhills. ...

T4 The district court granted summary judgment in favor of the Defendants based on their assertion that Wellberg could not claim any benefit under the Easement. The court relied on Potter v. Chadaz, 1999 UT App 95, 977 P.2d 533, for the premise that parties to a deed are prohibited "from expressly creating an easement in a land transaction for the benefit of a third party who is not involved in the transaction-Le., a stranger to the deed.'" See id. 112. The court identified Wellberg as a "stranger to the transaction" because it "is not named in the Easement Agreement, and did not participate in it in any way." The district court concluded that as a "stranger to the transaction," Wellberg was "not entitled to any right or title to, or interest in, the" Easement or the Defendants' properties.

T5 We agree with the district court's ruling in favor of the Defendants, but we also agree with Wellberg's contention that the district court's reliance on Potter is misguided. Accordingly, we base our affirmance of the district court's ruling on other grounds apparent on the record before us. See Okelberry v. West Damiels Land Ass'n, 2005 UT App 327, ¶ 11, 120 P.3d 34 ("It is well established that we may affirm the judgment appealed from if it is sustainable on any legal ground or theory apparent on the record, even though such ground or theory differs from that stated by the trial court to be the basis of its ruling or action...." (citation and internal quotation marks omitted)).

T6 To interpret easements, we apply the same rules of construction used in interpreting contracts. Canyon Meadows, 2001 UT App 414, ¶ 7, 40 P.3d 1148. Accordingly, we first look to the plain language of the Easement Agreement to discern the parties' intent in creating the Easement, see Gillmor v. Macey, 2005 UT App 351, ¶ 19, 121 P.3d 57, because the parties' intentions "are controlling," Utah Transit Auth. v. Salt Lake City S.R.R. Co., 2006 UT App 46, ¶ 8, 131 P.3d 288 (citation and internal quotation marks omitted).

T7 The district court touched on aspects of a contract-based interpretation of the Easement Agreement, recognizing that Wellberg is not mentioned in the Easement Agreement, that there is no indication in the Easement Agreement that Wellberg participated in negotiating the Easement Agreement, and that Greener Hills and the Christensen defendants did not intend the Easement to benefit Wellberg. The court then relied on the "stranger to the transaction" principle from Potter to conclude that Wellberg's absence from the face of the agreement renders it a stranger to the transaction and that, as a result, Wellberg "is not entitled to any right or title to, or interest in, the [Easement]."

T8 This interpretation misapplies Potter, which explains, in dicta, that "Utah law prohibits parties from expressly creating an easement in a land transaction for the benefit of a third party who is not involved in the transaction-iLe., a 'stranger to the deed.'" Potter, 1999 UT App 95, ¶ 12, 977 P.2d 533. Here we are not presented with a situation in which the parties creating the easement-the Defendants-attempted to "expressly" create an easement that would benefit Wellberg. Indeed, the crux of the parties' dispute here is the seope the Defendants intended the Easement Agreement to have. In Potter, there was no question that the parties had intended to create an easement that benefitted a third party that was *64 not involved in the land transaction. Thus Potter is inapplicable. 1

T9 Under basic rules of contract interpretation, we determine that the Defendants' intent is unambignously communicated in the Easement Agreement; their intent was to create an easement "for ingress, egress, storm drain, water system, sewer, landscaping, irrigation, grading, public and private utilities, and emergency vehicle use purposes" for the benefit of "Harold Christensen and Dorothy Christensen their assigns or heirs" and as a burden on specific lots within the Greener Hills Subdivision. Wellberg argues that the Easement Agreement need only contain "enough specificity to enforce it and the signatures of the servient estate owners" and that the Agreement's language permitting "others access to property to the north of Greenerhills" is sufficiently specific for Wellberg, as an "other" property owner "north" of Greener Hills, to benefit from the Easement. (Emphases added.)

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Bluebook (online)
2014 UT App 222, 336 P.3d 61, 769 Utah Adv. Rep. 53, 2014 Utah App. LEXIS 227, 2014 WL 4638703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wellberg-investments-llc-v-greener-hills-subdivision-utahctapp-2014.