Justia Montana Supreme Court Opinion Summaries

Christopher and Jennifer Atkinson purchased a lot in the Ridgeview Trails Major Subdivision in Livingston, Montana, in 2012. The City of Livingston had approved the subdivision in 2005 and 2006, and a geotechnical report identifying problematic soils was created for the subdivision developers but was not provided to the Atkinsons when they purchased the lot. The Atkinsons received a building permit from the City to construct a residence, which was substantially completed in June 2013. In 2021, the Atkinsons began to observe cracking and structural problems in their home. After later discovering the existence of the geotechnical report, they sued the City in April 2024, alleging negligence and negligent misrepresentation for the City’s failure to disclose known soil issues during the permitting process.The case was heard in the Montana Sixth Judicial District Court, Park County. By agreement, the parties proceeded directly to cross-motions for summary judgment to address threshold legal issues before discovery. The District Court granted summary judgment for the City, holding that the claims were barred by Montana’s statute of repose for construction-related claims, found in § 27-2-208, MCA. The District Court also found that the City owed no duty to the Atkinsons, that the public duty doctrine barred the claims, that the Atkinsons had disclaimed claims relating to permits and inspections, and that the geotechnical report was for the developer’s exclusive use.On appeal, the Supreme Court of the State of Montana affirmed the District Court’s judgment. The Supreme Court held that the Atkinsons’ claims were barred by the ten-year statute of repose in § 27-2-208, MCA, because their claims arose from the City’s planning and inspection activities and were filed more than ten years after substantial completion of the home. The Court also held that the statute applies to municipalities and that no statutory exception applied. View "Atkinson v. Livingston" on Justia Law

A nonprofit coalition and two individuals challenged a county commission’s conditional approval for the development of a large seasonal RV park on a 21-acre lot in a rural area that had previously been designated for such use in a larger subdivision plan. The proposed site was adjacent to other commercial activity and near two lakes, but had no on-site surface water. The applicants submitted an environmental assessment (EA), which included groundwater well data and described wildlife in the area. The application process included public hearings, during which concerns were raised about groundwater impacts, wildlife, public safety, and increased recreational use.Following the submission of the application, the Lincoln County Planning Department recommended approval, and the Board of County Commissioners held public hearings, received additional agency comments, and ultimately granted conditional preliminary plat approval, requiring, among other conditions, state environmental review and approval of the water and sewer systems. The plaintiffs filed suit in the Montana Nineteenth Judicial District Court, claiming the County’s approval was unlawful for not complying with statutory requirements for environmental review, consideration of probable impacts, and consistency with local plans. The District Court granted summary judgment for the County and intervenors, finding compliance with applicable statutes and plans.On appeal, the Supreme Court of the State of Montana reviewed whether the EA met statutory requirements, whether the County considered specific, documentable, and clearly defined impacts as required by law, and whether the subdivision was consistent with the local neighborhood plan and growth policy. The Supreme Court held that the EA satisfied statutory requirements by providing all available information; the County properly considered impacts using the required legal standard; and the County’s decision was consistent with the relevant policies and not arbitrary or capricious. The Supreme Court affirmed the District Court’s grant of summary judgment. View "Thompson Chain of Lakes Stewardship Coalition v. Lincoln County" on Justia Law

A non-governmental organization challenged a county planning department’s decision to approve a land division in the Bitterroot Valley. The organization alleged that the planning department authorized a property owner to divide an 80-acre tract into eight parcels using a family transfer exemption, but failed to provide public notice before approving the application. The organization discovered the land division after it had occurred and argued that the lack of public notice violated the county’s subdivision regulations, the Montana Subdivision and Platting Act, the Montana Public Participation Act, and constitutional rights to know and participate.The case was first heard in the Montana Twenty-First Judicial District Court, which granted the county’s motion to dismiss all claims. The district court concluded that the applicable county regulations did not require the planning department to provide published notice before reviewing or approving subdivision exemption applications. The court held that the organization had not stated a plausible claim because the regulations required only that the department accept public comments, not that it give notice.The Supreme Court of the State of Montana reviewed the case and reversed the district court’s dismissal of the claims related to declaratory relief. The Supreme Court held that the county subdivision regulations, while silent on the specific mechanics of notice, require the planning department to provide public notice of pending exemption applications in order to give meaningful effect to the public’s right to comment, as mandated by the regulations. The court emphasized that public comment is meaningless without notice, and remanded the case for further proceedings, directing the district court to require the planning department to provide notice and an adequate opportunity for public comment before reevaluating the exemption application. View "Sapphire v. Ravalli County" on Justia Law

Two homeowners who purchased a residence in a Montana subdivision governed by covenants brought suit against their neighbors and the homeowners’ association after plans were approved for a new home to be built on an adjacent lot. The plaintiffs objected that the proposed construction would obstruct their mountain views. The subdivision’s covenants required that building placement “should take into consideration” neighboring dwellings, with “allowance for views and solar gains.” The association’s design review committee initially approved the plans, then rescinded approval after objections, requesting revised plans showing the plaintiffs’ residence. The defendants did not submit revised plans and ultimately received reinstated approval from the association’s board, which decided to let the parties resolve their dispute independently. The plaintiffs then filed suit seeking injunctive and declaratory relief.The Eighteenth Judicial District Court, Gallatin County, denied the plaintiffs’ request for a temporary restraining order and a preliminary injunction. Subsequently, the court granted summary judgment in favor of the defendants, interpreting the covenants as not creating an enforceable obligation to protect views, and awarded attorney fees and costs to the defendants as prevailing parties.On appeal, the Supreme Court of the State of Montana reviewed whether the denial of preliminary relief should be separately addressed, whether summary judgment was properly granted, and whether attorney fees were correctly awarded. The Supreme Court held that the orders denying preliminary relief had merged into the final judgment and did not require separate review. The Court reversed summary judgment, concluding the covenants created a mandatory obligation to genuinely consider neighboring impacts, including views. The Court found material questions of fact remained as to whether the defendants and the association sufficiently considered the plaintiffs’ views, precluding summary judgment. The attorney fee award was also reversed, as no party was yet prevailing. The case was remanded for further proceedings. View "Waddell v. Studer" on Justia Law

This dispute arose from the use of easements on subdivided property in Yellowstone County, Montana. After a series of conveyances, Patti and Steve Schubert owned Tract 7B-2, which benefited from a 30-foot-wide access easement across neighboring Tract 7B-1, owned by Jeremy and Tynagh Toepp. The Schuberts installed a large electric gate, keypad, and package box within the easement, and engaged in activities such as removing vegetation and using heavy equipment, which the Toepps claimed damaged their property and overburdened the easement. The Schuberts also challenged the Toepps’ rights to use a shared well. The parties attempted to resolve their disputes through mediation, resulting in a signed Memorandum of Understanding (MOU), but disagreements persisted over the interpretation and scope of the settlement, particularly regarding the gate and the use of the easement.The Thirteenth Judicial District Court, Yellowstone County, heard cross-motions to enforce the MOU. Sitting without a jury, the District Court found the MOU to be a binding agreement that implied the Schuberts’ encroaching gate could remain in place. The court limited the Schuberts’ use of the access easement to ingress and egress only, prohibited unnecessary removal of vegetation, and awarded attorney fees to the Toepps, finding the Schuberts had unreasonably multiplied the proceedings by insisting on additional terms not included in the MOU.On appeal, the Supreme Court of the State of Montana reversed the District Court’s conclusion that the MOU allowed the encroaching gate to remain, holding that the MOU did not contemplate a gate easement and that the gate constituted an unlawful encroachment requiring removal. The Supreme Court affirmed the District Court’s limitation of the easement to ingress and egress and its award of attorney fees to the Toepps, finding no abuse of discretion. The case was remanded for entry of judgment consistent with these holdings. View "Schubert v. Toepp" on Justia Law

Frank and Shirlynne Apecella purchased property in Hamilton, Montana, in 2020, which historically received irrigation water from the Decker Ditch, originating at Roaring Lion Creek and running through their neighbor Lillian Overman’s property. After moving in, the Apecellas discovered they were not receiving water through the ditch and, upon investigation, learned that Overman’s husband had filled in the ditch and posted a “no trespassing” sign. The Apecellas own a water right in Roaring Lion Creek, and the disputed ditch segment runs from a bifurcation point on Overman’s property to the boundary with the Apecella property. The Apecellas sought a declaratory judgment affirming their ditch easement and alleged Overman interfered with their easement rights.The Montana Twenty-First Judicial District Court held a bench trial and found that the Apecellas had established both an implied and a prescriptive easement for the ditch in question, and that Overman had interfered with their easement by filling in the ditch. The court rejected Overman’s defenses of abandonment and reverse adverse possession, finding insufficient evidence that the Apecellas or their predecessors had abandoned the easement or that Overman had extinguished it through adverse use. The court permanently enjoined Overman from further interference and awarded the Apecellas attorney fees as the prevailing party under Montana law.The Supreme Court of the State of Montana affirmed the District Court’s judgment. It held that Overman failed to prove by clear and convincing evidence either abandonment or reverse adverse possession of the Apecellas’ irrigation ditch easement. The Court also held that the Apecellas were the prevailing party under § 70-17-112(5), MCA, and were entitled to reasonable costs and attorney fees. The District Court’s orders were affirmed in all respects. View "Apecella v. Overman" on Justia Law

In May 2022, Garry Douglas Seaman shot and killed James Preston Freeman and seriously wounded Heidi Gabert, following the end of his romantic relationship with Gabert, with whom he shares a minor child. Seaman was criminally charged, and Gabert and Dawn Freeman, James’s spouse, filed a civil suit for damages. To prevent Seaman from transferring or selling assets during the litigation, Gabert and Freeman successfully sought a receivership over all of Seaman’s property. After negotiations, the parties reached a settlement memorialized in a memorandum of understanding (MOU), which included $10 million judgments for Gabert and Freeman, liquidation of Seaman’s assets, and a homestead exemption for Seaman.The Nineteenth Judicial District Court, Lincoln County, approved the creation of a designated settlement fund (DSF) to facilitate asset liquidation. Initially, the court’s DSF Order required the Liquidation Receiver to reserve funds from asset sales to pay Seaman’s capital gains taxes, interpreting the MOU’s tax payment provision as unambiguous. Gabert and Freeman moved to amend this order under Montana Rule of Civil Procedure 59(e), arguing the court erred in its interpretation and that the parties did not intend to reserve funds for Seaman’s capital gains taxes. After an evidentiary hearing, the District Court agreed, finding the MOU ambiguous and, based on extrinsic evidence, concluded the parties did not intend to reserve such funds. The court amended its order, striking the provision requiring reservation for capital gains taxes.The Supreme Court of the State of Montana reviewed whether the District Court abused its discretion in amending the DSF Order. The Supreme Court held that the District Court did not abuse its discretion, correctly found the MOU ambiguous, and its factual finding regarding the parties’ intent was not clearly erroneous. The Supreme Court affirmed the District Court’s amended order. View "Gabert v. Seaman" on Justia Law

A primary contractor entered into a subcontract with a heating and cooling company to install HVAC systems in an apartment complex. The subcontract included an arbitration clause allowing the contractor, at its sole option, to require arbitration of disputes. Over several years, the relationship between the parties deteriorated, leading the heating and cooling company to file suit for breach of contract and related claims. The contractor failed to respond timely to an amended complaint due to a breakdown in communication with its registered agent, resulting in a default being entered against it. After being properly served, the contractor and the heating and cooling company stipulated to set aside the default, and the contractor then filed an answer and counterclaims. Only after several months did the contractor move to stay proceedings and compel arbitration under the subcontract.The Eighteenth Judicial District Court, Gallatin County, denied the contractor’s motion to compel arbitration. The court found that the contractor had acted inconsistently with its right to arbitrate by failing to assert the arbitration right when reentering the litigation and by not including the arbitration defense in its initial answer. The court also determined that the delay prejudiced the heating and cooling company, which had incurred additional costs and surrendered its default judgment without knowing the contractor would later seek arbitration.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court’s decision. The Supreme Court held that the contractor had waived its right to compel arbitration by acting inconsistently with that right and by causing prejudice to the opposing party. The court found no error in the District Court’s application of the waiver standard and declined to address arguments regarding federal arbitration law, as the waiver was established under Montana law. View "Monarch v. Petra" on Justia Law

Jeannette F. Tasey failed to pay property taxes starting in 2017. In 2018, she applied for an elderly/disabled tax credit program, believing she did not need to pay taxes until her application was decided. On August 1, 2018, the Yellowstone County Treasurer issued a tax lien on her property, which was later assigned to Guardian Tax MT, LLC. Tasey mailed a check for the full amount on July 30, 2021, with an expected delivery date of July 31. However, the Treasurer received and processed the check on August 3, one day after the redemption period expired. The Treasurer rejected the payment and issued a tax deed to Guardian Tax, which then sued to quiet title and declare Tasey a trespasser.The Thirteenth Judicial District Court, Yellowstone County, granted summary judgment in favor of Guardian Tax, finding no genuine issue of material fact. The court found Tasey's assertion that the check was received on July 31 to be speculative and unsupported by evidence. Tasey appealed the decision.The Supreme Court of the State of Montana reviewed the case de novo. The court held that Tasey substantially complied with the redemption statute by mailing the payment in good faith, believing it would arrive before the deadline. The court emphasized that redemption statutes should be liberally construed to allow property owners to pay their debts and save their property. The court found that Tasey's actions met the substantial compliance standard and that there was no prejudice to Guardian Tax or the Treasurer’s Office. The court reversed the District Court's summary judgment and remanded the case for further proceedings. View "Guardian Tax v. Tasey" on Justia Law

David Wolfe owned property in Columbia Falls, Montana. In 2000, he executed a will leaving the property to his daughter, Wendy Rae Wolfe. In 2018, David signed a beneficiary deed transferring the property to his brother, Philip M. Wolfe. David passed away in 2023, and Wendy began residing on the property, believing it was hers per the will. Philip, however, claimed ownership based on the 2018 deed and issued a notice for Wendy to vacate.Wendy filed a pro se quiet title action in December 2023, alleging that the will conveyed the property to her and that Philip obtained the deed fraudulently, either by forging David’s signature or through undue influence. Philip counterclaimed for declaratory judgment and filed a motion for summary judgment. The District Court of the Eleventh Judicial District, Flathead County, granted summary judgment in favor of Philip, concluding that Wendy failed to produce a legally meaningful challenge to the deed.The Supreme Court of the State of Montana reviewed the case. The court found that Wendy presented sufficient evidence to raise genuine issues of material fact regarding undue influence and the validity of David’s signature on the deed. The court noted that Wendy’s evidence, including affidavits and personal knowledge of David’s intentions, was enough to warrant a jury’s consideration. The court concluded that the District Court erred in granting summary judgment to Philip and reversed the decision, remanding the case for further proceedings. View "In re Estate of David Wolfe" on Justia Law