Opinion ID: 1219162
Heading Depth: 2
Heading Rank: 1

Heading: summary judgment quieting title to well 2 in the browns.

Text: In an appeal from an order of summary judgment, this Court's standard of review is the same as the standard used by the district court in ruling on the motion for summary judgment. East Lizard Butte Water Corp. v. Howell, 122 Idaho 679, 781, 837 P.2d 805, 807 (1992). All disputed facts are to be construed liberally in favor of the nonmoving party, and all reasonable inferences that can be drawn from the record are to be drawn in favor of the non-moving party. Bonz v. Sudweeks, 119 Idaho 539, 541, 808 P.2d 876, 878 (1991). Summary judgment shall be granted if the court determines that the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. I.R.C.P. 56(c); Bonz, 119 Idaho at 541, 808 P.2d at 878. The fact that the parties have filed cross-motions for summary judgment does not change these standards. [T]he court must evaluate each party's motion on its own merits, taking care in each instance to draw all reasonable inferences against the party whose motion is under consideration. Taft Broadcasting Co. v. United States, 929 F.2d 240, 248 (6th Cir.1991) (quoting Mingus Constructors, Inc. v. United States, 812 F.2d 1387, 1391 (Fed.Cir.1987)). BIWA asserts that summary judgment quieting title to Well 2 in the Browns was improper because the facts presented by BIWA conclusively proved, or at least created a genuine issue, that BIWA had acquired property rights in Well 2. Specifically, BIWA contends the facts in the record show that: (1) BIWA acquired an ownership interest in Well 2; (2) BIWA acquired an easement by implication to use Well 2 to appropriate water for BIWA's culinary water system; and (3) the Browns were not bona fide purchasers of Well 2 because they had notice of BIWA's interest in the well. We address each of these issues in turn. 1. Ownership of Well 2. In ruling on BIWA's motion to amend the findings of fact and conclusions of law, the district court concluded that BIWA had failed to establish any ownership interest in Well 2 either by written conveyance or by operation of law. On appeal, BIWA challenges this conclusion of the district court. Idaho's Statute of Frauds, I.C. § 9-503, states that [n]o estate or interest in real property ... can be created, granted, assigned, surrendered, or declared, otherwise than by operation of law, or a conveyance or other instrument in writing. Although it is undisputed that BIWA never acquired an interest in the real property surrounding Well 2 by a written conveyance which would satisfy the requirements of the Statute of Frauds, BIWA asserts that it nevertheless acquired an ownership interest in Well 2. To support this argument, BIWA cites the fact that Ray Andrus and David Jones both submitted affidavits in which they stated that during their respective periods of ownership they considered BIWA to be the owner of the culinary water system. BIWA asserts that these affidavit statements of Andrus and Jones, coupled with the fact that BIWA made valuable improvements to the Well 2 property by installing and operating the well, establish that BIWA became the owner of Well 2. As an exception to the strict application of the Statute of Frauds, the doctrine of part performance is well-established in Idaho. I.C. § 9-504; Jolley v. Clay, 103 Idaho 171, 177, 646 P.2d 413, 419 (1982); Hoffman v. S V Co., 102 Idaho 187, 191, 628 P.2d 218, 222 (1981); Roundy v. Waner, 98 Idaho 625, 570 P.2d 862 (1977); Southern v. Southern, 92 Idaho 180, 438 P.2d 925 (1968); Boesiger v. Freer, 85 Idaho 551, 381 P.2d 802 (1963); Reynolds Irrigation Dist. v. Sproat, 70 Idaho 217, 222, 214 P.2d 880, 882 (1950). Under the doctrine of part performance, when an agreement to convey real property fails to meet the requirements of the statute of frauds  as in this case where the alleged agreement was not reduced to writing  the agreement may nevertheless be specifically enforced when the purchaser has partly performed the agreement. Id. Before an oral agreement to convey land will be specifically enforced, the underlying contract must be proven by clear and convincing evidence. Anderson v. Whipple, 71 Idaho 112, 123, 227 P.2d 351, 358 (1951). Further, the proof must show that the contract is complete, definite and certain in all its material terms, or that it contains provisions which were capable in themselves of being reduced to certainty. Id. The material terms which must be identified in a contract to convey land include the parties to the contract, the subject matter of the contract, the price or consideration, and a description of the property. Hoffman, 102 Idaho at 190, 628 P.2d at 221. What constitutes part performance must depend upon the particular facts of each case and the sufficiency of particular acts is a matter of law. Boesiger, 85 Idaho at 556, 381 P.2d at 804. The most important acts which constitute a sufficient part performance are actual possession, permanent and valuable improvements and these two combined. Roundy, 98 Idaho at 629, 570 P.2d at 866 (quoting Barton v. Dunlap, 8 Idaho 82, 92, 66 P. 832, 836 (1901)). The acts constituting part performance must be proven by clear and convincing evidence, Boesiger, 85 Idaho at 558, 381 P.2d at 805, and they must also be definitely referable to the alleged oral contract, Boesiger, 85 Idaho at 557, 381 P.2d at 805; Roundy, 98 Idaho at 629, 570 P.2d at 866. In proving that possession is referable to the alleged oral contract, the time of taking possession is significant: [T]he continuance of a possession assumed or commenced before the making of a contract, under some right or in some capacity other than that created by, or resulting from, such contract, is not such a taking and holding of possession as may, either alone or in connection with other acts, be regarded as part performance of the contract. Id. Improvements, in order to constitute part performance, must be substantial in relation to the value of the property. Boesiger, 85 Idaho at 556, 381 P.2d at 804. The doctrine of part performance is predicated on the existence of an agreement to convey land, in this case an alleged oral agreement, which is then partially performed. I.C. § 9-504. The oral agreement, to be specifically enforced by operation of the doctrine of part performance, must be complete, definite and certain in all its material terms, or contain provisions which are capable in themselves of being reduced to certainty. BIWA has failed to present evidence showing the existence of an oral contract to convey Well 2 to BIWA. Andrus and Jones stated only that they considered BIWA the owner of the water system. These statements are not supported by any testimony or evidence of how or when title was purportedly transferred to BIWA. Nor do the statements adequately describe the real property which was purportedly transferred. Andrus and Jones did not state, and BIWA has not directed our attention to any evidence from which we can infer, that they ever entered an oral agreement to convey Well 2 to BIWA. (In fact, Andrus could not have agreed to convey Well 2 to BIWA because when he owned the property, Well 2 did not yet exist, and its future location had not yet been determined.) Uncontroverted evidence in the record, moreover, shows that Jones never orally agreed to convey the property surrounding Well 2 to BIWA. Documentary evidence in the record shows that while Jones owned Division 2, BIWA understood and believed that Jones had title to the property where the wells were located, and that BIWA needed to enter into negotiations with Jones in order to acquire title to that property. There is no evidence that BIWA ever negotiated terms of conveyance with Jones. It is also undisputed that later, after FLB had acquired title to the property from Jones, BIWA deemed it necessary to purchase the Well Lot from FLB in order to acquire title to the property where the water system was located. The only reasonable inference that can be drawn from the record is that neither Andrus nor Jones ever reached an agreement with BIWA, oral or otherwise, to convey the real property on which the wells were located, and further, that BIWA did not believe it was the owner of the well properties while either Andrus or Jones owned Division 2. There can be no part performance of an agreement which was never made. BIWA has also failed to present evidence demonstrating that its possession of and improvements to the water system are definitely referable to such an alleged oral contract. Uncontroverted evidence shows that BIWA controlled and operated the water system during the time when its representatives admittedly knew that BIWA did not have title to the Well Lot. Further, BIWA has asserted that it believed it acquired the property where Well 2 is located when it acquired the Well Lot, and it is clear that BIWA made no improvements to Well 2 until after it obtained title to the Well Lot (Jones did the initial drilling and casing). Thus, BIWA's improvements to the property surrounding Well 2 are not referable to an oral contract with Andrus or Jones, but to its mistaken belief that it acquired Well 2 when it purchased the Well Lot. BIWA has failed to present evidence from which a jury could reasonably find the existence of an oral contract between either Andrus or Jones and BIWA to convey the real property on which Well 2 is located, or that BIWA's improvements to the Well 2 property were definitely referable to such a contract. Accordingly, the district court did not err in concluding that BIWA had failed to establish any ownership interest in Well 2. BIWA also asserts that it acquired ownership of Well 2 as a third party beneficiary of that portion of the Andrus/Jones contract of sale which provided that a second well would be drilled and connected to the existing water distribution system. BIWA claims that after Jones partly performed this contract by drilling Well 2, he turned over the well to BIWA, who completed performance by developing the well and connecting it to the existing water system. BIWA contends that based on these facts, it acquired ownership of Well 2. The cases which BIWA cites do not support BIWA's argument that a third party beneficiary of a service contract obtains a real property interest in the property where the service is to be performed. The provision of the Andrus/Jones contract on which BIWA relies did not purport to convey any interest in real property. It did not even specify the property where the second well was to be drilled, only that the Joneses were to drill a second well and connect it to the existing water system. Even if BIWA is presumed to be a third party beneficiary of the Andrus/Jones second well agreement, the only rights BIWA would have acquired as a third party beneficiary would have been to recover damages for the Joneses' failure to perform the contract. Because the provision of the Andrus/Jones contract on which BIWA relies did not purport to convey any interest in land, BIWA's claim of ownership as a third party beneficiary of the Andrus/Jones contract is misplaced. In summary, we reject BIWA's claim of ownership of Well 2 under both its part performance and third-party beneficiary theories. The district court did not err in granting partial summary judgment to the Browns on this issue. BIWA also asserts that the district court erred in its order granting partial summary judgment because it not only quieted title to Well 2 in the Browns, it also purported to grant the Browns the exclusive right to appropriate water from the well. BIWA correctly asserts that it was beyond the jurisdiction of the district court to adjudicate any water rights of the parties. The right to appropriate water is a real property right separate and apart from the property rights in the land from which the water has been diverted. Idaho Code § 42-1404 provides the following with respect to private actions for adjudication of water rights: (1) Any claimant may file suit in the district court for the county in which the point of diversion or place of use of the claimed right is located for the purpose of adjudicating rights to the use of water from any water system for which a general adjudication has not been commenced or completed. The claimant shall name as defendants the director [of the Idaho Department of Water Resources] and all claimants of rights to the use of water from the water system whose joinder is necessary to resolve the dispute over rights to the use of water from the water system. The claimant shall also publish notice of the action in the manner specified in subsection (2)(b) of section 42-1408A, Idaho Code. It is clear that while the parties to this action filed claims to adjudicate their respective rights to the real property comprising Well 2, neither party has filed an action for adjudication of any water rights in compliance with the requirements of section 42-1404. In any event, had the parties filed a private action for adjudication of their water rights, this district court would not have had jurisdiction to perform such an adjudication. I.C. § 42-1404(1) prevents claimants from filing private actions to adjudicate water rights which are within the scope of a general adjudication that has already been commenced. Walker v. Big Lost River Irr. Dist., 124 Idaho 78, 81, 856 P.2d 868, 871 (1993). It is clear that the water rights which the Browns and BIWA dispute are within the scope of the general Snake River Basin Adjudication (SRBA). [J]urisdiction to resolve all of the water rights claims within the scope of the general adjudication is in the SRBA district court only. Id. Thus, the district court in this case would have lacked subject matter jurisdiction to adjudicate the parties' water rights even if they would have properly filed a private action for such an adjudication. Because adjudication of water rights was not within the scope of this action, it was improper for the district court's order to contain language purporting to grant the Browns the exclusive right to appropriate water from Well 2. Accordingly, we vacate that portion of the district court's order granting the Browns the exclusive right to appropriate water from Well 2. 2. Easement Interests in Well 2. BIWA asserts as an alternate theory that it acquired an implied easement to use Well 2 to appropriate water for the benefit of Bear Island Estates. BIWA contends that the doctrine of implied easement from prior use and the doctrine of implied easement by necessity are both applicable under the facts of this case. To establish an easement by implication from prior use, the party seeking to establish the easement must demonstrate three essential elements: (1) unity of title or ownership and subsequent separation by grant of the dominant estate; (2) apparent continuous use long enough before conveyance of the dominant estate to show that the use was intended to be permanent; and (3) the easement must be reasonably necessary to the proper enjoyment of the dominant estate. Close v. Rensink, 95 Idaho 72, 76, 501 P.2d 1383, 1387 (1972); Davis v. Gowen, 83 Idaho 204, 210, 360 P.2d 403, 406-07 (1961). In this case, it is clear from the record that the first element is satisfied. Unity of title existed in Andrus, Jones and finally FLB, all of whom successively owned both the Well Lot and Lot 9 at the same time. In April of 1987, FLB severed ownership of title by conveying the Well Lot to BIWA and retaining ownership of Lot 9. However, BIWA has failed to create a genuine issue with respect to the two remaining essential elements. There is no evidence of apparent continuous use of Well 2, either by FLB or by BIWA with FLB's permission, prior to the severance of title. Although the hole for Well 2 was partially drilled in February of 1979, it is undisputed that construction was never completed and the well did not become operational until November of 1988. BIWA did not apply for a permit to use Well 2 to appropriate water until eighteen months after the severance. Thus, there was no apparent continuous use of Well 2 before ownership of the two estates was severed in April of 1987. Nor has BIWA introduced any evidence to show that use of Well 2 is reasonably necessary to the proper enjoyment of the dominant estate. BIWA has not presented any facts to show why it cannot simply drill another well on the Well Lot, as was originally intended, and transfer the diversion works it installed on Well 2 to that well. Of course construction of a new well would involve some expense, but the desire to avoid that expense does not make continued use of Well 2 on Lot 9 reasonably necessary. BIWA has also failed to present facts which would support creation of an easement implied by necessity. To establish such an easement, BIWA must show: (1) unity of title and subsequent separation of the dominant and servient estates; (2) necessity of the easement at the time of severance; and (3) great present necessity for the easement. Davis, 83 Idaho at 210, 360 P.2d at 406-07; Cordwell v. Smith, 105 Idaho 71, 77-78, 665 P.2d 1081, 1087-88 (Ct.App.1983). For the same reasons as noted above, the only reasonable inference that can be drawn from the record is that use of Well 2 was not needed at the time of severance. Further, in light of our holding above  that BIWA failed to present evidence to show that an easement to use Well 2 is reasonably necessary  it is clear that BIWA has failed to make the even weightier showing of a great present necessity for the easement. Because BIWA has failed to create a genuine issue as to whether it is entitled to an easement by implication or necessity, the district court did not err in granting summary judgment to the Browns on those issues. 3. Bona Fide Purchaser Status of the Browns. BIWA asserts that the Browns had notice of BIWA's unrecorded ownership or easement interests in Well 2 before they purchased Lot 9, and therefore the Browns are not bona fide purchasers in good faith. It is true that the Browns cannot use Idaho's recording statute, I.C. § 55-812, to defeat a prior unrecorded interest which BIWA had in Well 2, if the Browns had prior actual or constructive notice of that interest. Langroise v. Becker, 96 Idaho 218, 220, 526 P.2d 178, 180 (1974) (one who has notice that an unrecorded interest exists cannot be a bona fide purchaser in good faith, as provided by I.C. § 55-812). However, even assuming facts in the light most favorable to BIWAthat the Browns had notice of BIWA's use of Well 2 before the Browns purchased Lot 9  the Brown's prior notice does not create any real property right in BIWA. As the above analysis concludes, BIWA has failed to show that the record contains any genuine issue of material fact with respect to its asserted fee ownership or easement interests. The district court's ruling regarding this theory is likewise correct.