Justia Wyoming Supreme Court Opinion Summaries
Articles Posted in Real Estate & Property Law
Gheen v. State ex rel. Dep’t of Health
After Peggy Gheen died, her sons discovered quitclaim deeds Mrs. Gheen had executed to them for her interests in a residential property and a farm. The Gheen sons subsequently recorded the deeds. The State ex rel. Dep’t of Health, Div. of Healthcare Financing/Equitycare (Department) filed a lien against both properties to recover the cost of Medicaid benefits paid on behalf of Mrs. Gheen before her death. The Gheen sons filed a petition to remove a false lien and quiet title, claiming they were the rightful owners of the property. The Department moved for summary judgment, asserting that it had a valid lien because Mrs. Gheen owned the properties at the time of her death and the quitclaim deeds were not valid. The district court granted summary judgment for the Department. The Supreme Court affirmed, holding that the Department’s Medicaid lien was valid as to the properties. View "Gheen v. State ex rel. Dep’t of Health" on Justia Law
Posted in:
Public Benefits, Real Estate & Property Law
Hopkins v. Bank of the West
Gary Hopkins and Randal Burnett formed a LLC and financed the project with a small business administration (SBA) loan. Bank 1 loaned the remainder of the total project costs. Hopkins secured the SBA portion of the loan with third mortgages on his rental properties. Bank 2 subsequently acquired Bank 1. After Burnett bought Hopkins' membership in the LLC, Bank 2 released Hopkins from his loan. However, an agreement entered into by the parties did not mention the third mortgages on the property held by SBA. Burnett subsequently defaulted on his loan obligations, and Bank foreclosed on the mortgage covering the business property. Because Hopkins' third mortgages on his rental properties were not released by SBA, Hopkins was forced to continue to make the payments on the SBA loan. Hopkins and his wife (Plaintiffs) sued Bank 2, Burnett, and the LLC, arguing that, pursuant to the agreement, Bank 2 was supposed to remove Hopkins' liability and the mortgages held on his property. The district court granted summary judgment for Bank 2. The Supreme Court affirmed, holding that the terms of the contract between the parties were unambiguous, extrinsic evidence was not required to discern the parties' intent, and Bank 2 had abided by the terms of the contract. View "Hopkins v. Bank of the West" on Justia Law
Esterholdt v. PacifiCorp
Plaintiffs owned property that was conveyed by warranty deed to J.A. Reed. In 1968, Reed conveyed the property to Julianne Biggane, and in 2006, the Biggane Trust transferred the property to Plaintiffs. Prior to Reed's transfer of the property to Biggane, a pole line easement across the property was granted to PacifiCorp's predecessor in interest. Reed, however, signed the easement grant as president of Continental Live Stock Company, rather than in his personal capacity, at a time that the company had no interest in the underlying land. Therefore, the easement was a "wild deed." At issue before the Supreme Court was whether a "wild deed" can be the "root of title" under the Wyoming Marketable Title Act. This case arose when Plaintiffs filed an action seeking to have the easement declared invalid because it emanated from a wild deed. The district court held that the Act validated PacifiCorp's easement across Plaintiffs' property. The Supreme Court affirmed, holding that a wild deed may constitute the root of title under the Act, and a wild deed serving as a root of title that does not bear a defect "on its face" is not an "inherent defect" in the chain of record title under the Act. View "Esterholdt v. PacifiCorp" on Justia Law
Barney v. BAC Home Loans Servicing, L.P.
Debtor borrowed money to finance a real estate purchase. Debtor signed a promissory note and secured the loan with a mortgage. Bank of America (BANA) became the owner of the note. After the mortgage was recorded, an assignment of the mortgage to Mortgage Electronic Registration Systems (MERS) was recorded. MERS subsequently assigned the mortgage to BAC Home Loans Servicing (BAC), which was servicing the loan on behalf of BANA. After Debtor defaulted on her home loan, she and her husband filed a Chapter 7 bankruptcy petition. The bankruptcy trustee subsequently initiated an adversary proceeding against BAC, seeking to avoid the mortgage for its failure to comply with the requirements of Wyo. Stat. Ann. 34-2-122 and -123 (the statutes), notice statutes intended to protect third parties from conflicting claims of a principal and agent. The U.S. bankruptcy court filed a certification order to the Wyoming Supreme Court requesting the Court to answer with the mortgage must comply with the requirements of the statutes. The Supreme Court held that the statutes did not apply in this case because there were no conflicting claims by a principal and an agent from which a third party needed protection. View "Barney v. BAC Home Loans Servicing, L.P." on Justia Law
Koch v. J&J Ranch, LLC
The parties to the dispute were two rural landowners who owned easements crossing a parcel of ranchland. When Appellant improved the common roadway and asked his neighbor, Appellee, to contribute to the cost of the improvements, Appellee brought suit against Appellant seeking a declaratory judgment as to the parties' respective rights and duties relating to the maintenance and repair of the road. Appellee also sought injunctive relief and damages for Appellant's alleged interference with Appellee's use of the easement. Appellant counterclaimed for equitable contribution from Appellee for the costs he incurred in improving the road. The district court ruled in Appellee's favor. The Supreme Court (1) affirmed the district court's denial of Appellant's request for equitable contribution; but (2) reversed its declaration of the parties' rights regarding any future maintenance work and as to the rights of the parties to recover for repair and maintenance they perform. Remanded. View "Koch v. J&J Ranch, LLC" on Justia Law
Posted in:
Real Estate & Property Law, Wyoming Supreme Court
Thornock v. Esterholdt
The Thornhocks filed an action against the Esterholdts and others seeking to quiet title to certain lands in Lincoln County. The district court granted summary judgment to the Thornocks as to some of the land but denied summary judgment as to a certain strip of property. After a bench trial, the district court quieted title in the disputed strip of land in the Esterholdts. The Supreme Court affirmed, holding (1) an appurtenant easement was not created by a deed that granted, in addition to tracts of fee title land, also that "right of way to be used in connection with said land"; and (2) an appurtenant easement was not created by a deed that granted a "right-of-way" described as the land now in question. View "Thornock v. Esterholdt" on Justia Law
Village Road Coal. v. Teton County Hous. Auth.
In 2006, Teton County voters approved a Teton County Housing Authority (TCHA) sponsored ballot initiative enabling a specific purpose excise tax (SPET) to raise $5 million for TCHA's affordable housing program. In 2007, TCHA purchased a five-acre property on Cheney Lane. Later that year, Plaintiffs, residents of the Cheney Lane neighborhood, initiated a declaratory judgment action against TCHA, alleging violations of SPET limitations, breach of investment duties, and violations of Wyoming statutory limits on public financing. Two weeks after the district court heard arguments on the motion to dismiss, the Village Road Coalition (VRC), a nonprofit corporation consisting of residents of a neighborhood near the Cheney Lane property, filed a motion to intervene. The district court denied the motion. The court subsequently granted TCHA's motion to dismiss the complaint for lack of standing. The Supreme Court affirmed, holding (1) because VRC's interests and relief sought were duplicative of those presented by Plaintiffs, the district court did not err in denying the motion to intervene; and (2) the district court properly dismissed TCHA's action for lack of standing, as Plaintiffs failed to allege a tangible interest that had been harmed by the acquisition of the property. View "Village Road Coal. v. Teton County Hous. Auth." on Justia Law
Ferrell v. Knighten
In 2001, Plaintiff offered to purchase a commercial property. Defendant was the real estate agent who prepared the offer. The sellers accepted the offer to purchase and prepared a property disclosure statement in compliance with the contract requirement. Plaintiff became the sole owner of the property in 2004. Two years later, Plaintiff discovered three inches of water in the building basement that had leaked through the west wall of the foundation of the building. In 2012, Plaintiff filed a complaint against Defendant, alleging he was negligent in failing to provide the property disclosure statement. The district court dismissed the action on account of the two-year statute of limitations having expired. Plaintiff appealed, arguing that the district court erred in ruling that Defendant had no duty to disclose or provide the property disclosure statement. The Supreme Court dismissed the case due to Plaintiff's failure to challenge the statute of limitations ruling by the district court. The Court also noted that the district court acknowledged that Defendant owed Plaintiff a duty to deliver the disclosure statement. View "Ferrell v. Knighten" on Justia Law
Barlow Ranch, LP v. Greencore Pipeline Co., LLC
Greencore Pipeline Company filed an action seeking to condemn easements across property owned by Barlow Ranch for a pipeline to transport carbon dioxide. The parties reached an agreement on the terms of possession and scope of the easements but disputed the amount that would justly compensate Barlow for the partial taking of its property. During trial, Barlow presented evidence of prices paid for other comparable pipeline easements to show the air market value of Greencore's easement. The district court awarded compensation based upon the average of the amounts Greencore had paid other landowners for easements for its carbon dioxide pipeline. Both parties appealed. The Supreme Court affirmed in part and reversed and remanded in part, holding that the district court (1) properly ruled that it could consider evidence of comparable easements in determining just compensation; (2) erred in concluding Barlow's proffered easements were not the result of arms' length transactions or sufficiently comparable, while the other Greencore easements were; (3) erred by concluding annual payments were not allowed under Wyoming law; and (4) correctly ruled that the issue of whether Greencore may abandon the pipeline in place was not properly before the Court.
View "Barlow Ranch, LP v. Greencore Pipeline Co., LLC" on Justia Law
Baker v. Speaks
While a lawsuit by Appellees David and Elizabeth Speaks was pending against Rosemary and Byron Baker for damages related to poor construction workmanship, the Bakers transferred two parcels of real property to their son, Nathan Baker. The case resulted in a judgment against Byron but a dismissal of the claims against Rosemary. The appellate court affirmed the trial court's decision. Five days later, Nathan transferred the properties to a limited liability company (LLC) he and his family controlled. Appellees subsequently filed this case under the Uniform Fraudulent Conveyance Act and the Uniform Fraudulent Transfer Act. While the case was pending, the LLC transferred the two pieces of property to trusts controlled by Rosemary Baker. The district court granted summary judgment for Appellees permitting execution on the properties, finding that all of the conveyances were fraudulent. The Supreme Court reversed and remanded, holding (1) the district court correctly found the conveyances to be fraudulent; but (2) Appellees failed to make the required prima facie showing that the properties were subject to execution on a judgment against Byron Baker alone. View "Baker v. Speaks" on Justia Law