Masolo v. Thomas

539 P.3d 660 (Table)

Charles Robert MASOLO and Gay Ann Masolo, Plaintiffs and Appellees,

v.Christopher "Gregg" THOMAS and Margaret Thomas, Defendants and Appellants.

DA 22-0620

Supreme Court of Montana.

Submitted on Briefs: August 30, 2023

Decided: December 19, 2023

Justice Laurie McKinnon delivered the Opinion of the Court.

¶1 Pursuant to Section I, Paragraph 3(c), Montana Supreme Court Internal Operating Rules, this case is decided by memorandum opinion and shall not be cited and does not serve as precedent. Its case title, cause number, and disposition shall be included in this Court's quarterly list of noncitable cases published in the Pacific Reporter and Montana Reports.

¶2 Christopher "Gregg" Thomas and Margaret Thomas (Thomases) appeal the Order on Preliminary Injunction entered on September 29, 2022, in the Montana First Judicial District Court, Broadwater County. Thomases argue the District Court manifestly abused its discretion in granting Charles and Gay Ann Masolo (Masolos) a preliminary injunction preventing Thomases from entering Masolos’ property to access their landlocked parcel. Thomases argue the District Court did not adequately consider various arguments and facts raised by Thomases at the hearing, including a mineral survey and land patent, abandonment of a county road on Masolo land, contractual language in Masolos’ conservation easement, and Masolos’ use of the land. Masolos argue the District Court did not abuse its discretion when it found that the Masolos satisfied three statutory bases for granting relief in the form of a preliminary injunction. We affirm.

¶3 Charles and Gay Ann Masolo are long-time ranchers and residents of Broadwater County. In 1976, the couple purchased land known as the "Sweeney Place," roughly 1,450 acres. They have ranched this land ever since. The Sweeney Place deed granting the property to Masolos contains a note about grazing privileges and lists water rights, but it does not list or describe any easements encumbering the property. Masolos entered Sweeney Place into a conservation easement agreement with the Montana Land Reliance in 2019 and enrolled the property in the Block Management Program with Montana Fish, Wildlife, and Parks. Under Block Management, Masolos allow hunters to park outside their gate and access their property on foot. Signs posted at their gate indicate to visiting hunters that "driving beyond this point is prohibited" and that access to the land is allowed "on foot only." The conservation easement with Montana Land Reliance provides for "[r]etention of significant open-space lands for a variety of other purposes, including for the benefit of plants, biotic communities, fish and wildlife. ..." The agreement prevents "any use of, or activity on, the Property that will significantly impair the Conservation Values." For the use of roads on the property, the agreement provides:

Consistent with sound agricultural and management practices, Grantor may use and create unimproved tracks, trails, and roads that are necessary for farming, ranching, and other agricultural purposes protected by this Easement. Such unimproved tracks, trails, and roads may include, but shall not be limited to, two-track byways used by farm equipment and off-road vehicles for crop cultivation, field access, for livestock management and monitoring purposes, and for access to irrigation ditches, pumps, and infrastructure.

The agreement states that Masolos "may grant right-of-way easements to neighbors over existing roads or over new roads that are constructed pursuant to the terms of [the agreement and Conservation Values]."

¶4 Masolos’ property and Bureau of Land Management (BLM) land completely surround another area of land, a 31.8-acre tract known as the "Stabler Parcel." This landlocked parcel, owned for many years by the Stabler family, is described as:

The Iron King and Great Western Quartz Lode Mining Claims, No. 10332, situated in Township Nine (9) North, Range One (1) West, of M.P.M., in said county and state.

These mining claims were located in 1905, surveyed in 1923, and patented in 1924. The 1923 Mineral Survey field notes describe a frame cabin and note that a road exists on the Iron King parcel. This road is pictured and labeled as a road on the Mineral Survey map of the Stabler Parcel, but it does not bear any other description, and the map does not show the surrounding land. Additionally, this road is not in the same place as the track the Thomases used to cross Masolos’ land.

¶5 The 1924 Patent granted the Stabler Parcel to George, Addison, and Henry Reed. The Patent states that "[n]othing herein contained shall authorize the grantees herein to enter upon the surface of a claim owned or possessed by another." It granted the "mining premises, together with all the rights, privileges, immunities, and appurtenances of whatsoever nature thereunto belonging, unto the said grantees above named and to their heirs and assigns forever; subject, nevertheless, to the above mentioned and to the following conditions and stipulations" including water rights and future laws passed by the Montana legislature.

¶6 In 1968, the Reeds deeded the property to Nancy Stabler and Ben G. Stabler. The deed does not describe any easements, and no addendums, attachments, or exhibits accompany the deed. Thomases allege that the Stablers accessed the parcel once in July of 1999. To Masolos’ knowledge, the Stablers have never accessed their parcel through the Sweeney Place property at any time in Masolos’ 46 years of ownership because Masolos have kept the gate in question locked for many decades. Nancy Stabler passed away in 1975, and her estate was resolved in probate.

¶7 Masolos wrote to Ben Stabler¹ in 2005 to inquire about purchasing the Stabler Parcel. In 2007, Jim Stabler, one of Nancy and Ben's sons, responded that his father had died several years ago, and the property passed to Jim and his two brothers. Jim expressed interest in selling the property but stated, "there are several things we need to do first, such as getting the title in order so that the property can be conveyed." Jim elaborated:

You stated in your November 13, 2005 letter that the mines are landlocked by your property and therefore have "no access." I'm not sure whether that means you could legally bar access to the property, which would obviously impact the market value, so I suppose I also need to obtain a legal opinion on that point as well.

¶8 On June 13, 2022, Gregg Thomas wrote a letter to Masolos informing them that he was "about to become the new owner" of the Stabler Parcel, that he had accessed the property by helicopter on June 1, and that he had observed a road that could be used to access the land across Masolos’ property. The letter asserted that Thomases had "a right to use the road to access [their] parcel" and that they intended to build a residence on the land and engage in hobby farming. Thomases expressed their intention to "get temporary living quarters and contractors to improve/create access suitable for us" and install their own lock on one of Masolos’ gates.

¶9 In response to this letter, Masolos’ counsel emailed Thomases’ then-attorney and explained, at length, that under Montana law and the facts as understood by the Masolos, no basis existed for an express easement, prescriptive easement, or unity of ownership for an easement by necessity. The email further explained that the terms of the Masolos’ conservation easement would not allow for the creation of new roads or use of existing roads to the extent necessary to build a new residence on the Stabler Parcel. On July 5, Thomases’ counsel sent a letter acknowledging that they had not yet located evidence of an express easement but warning that they may pursue claims for a prescriptive easement or easement by necessity. The letter offered Masolos $7,500 in exchange for an express easement. If Masolos would not agree to the express easement, Thomases asserted that they intended to engage in mining and small-scale commercial agriculture on the Stabler Parcel and would bring an eminent domain and condemnation proceeding for the public uses of mining and farming under § 70-30-102(33), MCA and § 70-30-102(36), MCA. The letter noted, "[u]ntil the parties’ respective rights are more clearly established, the Thomases do plan to use the road occasionally without alterations to access their parcel." Later, Thomases offered Masolos $100,000 for an express easement.

¶10 Masolos’ attorney replied that Thomases could not assert an eminent domain claim benefiting only an individual landowner with no benefit to the public good in order to build a private home and fulfill their "debatable future intent" for small-scale mining and agriculture. Counsel further explained that Masolos did not wish to grant an express easement and would not give permission for the Thomases to cross their land "for purposes of conducting any due diligence for their prospective purchase, or once they own the land, for purposes of accessing the Stabler parcel."

¶11 Around July 20, 2022, Thomases entered a gate on land owned by another neighbor, Todd Moldenhauer, without his permission and crossed Masolos’ land to move a fifth-wheel trailer onto the Stabler Parcel. Masolos assert that the fifth-wheel created a new track where none previously existed, causing erosion and plant damage. On July 21, Masolos’ attorney reminded Thomases’ counsel that they did not have permission to cross their land and asked that they vacate immediately. Moldenhauer began locking his gate after this incident.

¶12 Despite knowing that access to the Stabler Parcel was contested and that Masolos were unwilling to grant an express easement, Thomases moved forward with the purchase. A warranty deed dated July 25, 2022, purportedly granted the Stabler Parcel to Gregg Thomas from Ben G. Stabler, Jr. for the sum of $100.² The deed does not list or describe any easements, either benefiting or burdening the Stabler Parcel.

...