Justia Montana Supreme Court Opinion Summaries

Charlie’s Win, LLC, a property owner within the Gallatin West Ranch Subdivision, filed a declaratory judgment action asserting that the restrictive covenants governing the subdivision had expired. The original Declaration of Protective Covenants, recorded in 1992, stated that the covenants would be in effect for 25 years and could be extended by a two-thirds majority vote of the owners. In 2015, Gallatin West Ranch Homeowners’ Association attempted to adopt a Fourth Amended Declaration, which included changes such as allowing metal roofs and backyard chicken coops. Of the 24 owners, 15 voted in favor, one voted against, and eight abstained.The Eighteenth Judicial District Court, Gallatin County, granted summary judgment in favor of Charlie’s Win, concluding that the covenants had expired on October 22, 2017, as the Fourth Amended Declaration did not receive the required two-thirds majority vote of all owners. Gallatin West appealed, arguing that the 2015 vote either properly adopted the Fourth Amended Declaration, modified the covenants, or that the covenants were ambiguous and required an analysis of the parties' conduct.The Supreme Court of the State of Montana reviewed the case de novo and affirmed the District Court’s decision. The Court held that the plain language of the covenants required a two-thirds majority vote of all owners to extend the covenants, which was not achieved in the 2015 vote. The Court rejected Gallatin West’s arguments, stating that the renewal and modification clauses had different voting standards and that the covenants were not ambiguous. Consequently, the Third Amended Declaration expired by its own terms, and Gallatin West could not enforce the Fourth Amended Declaration against Charlie’s Win. View "Charlie's Win, LLC v. Gallatin West Ranch Homeowners' Association" on Justia Law

David L. Murphy Properties, LLC and John Schaffer own property adjacent to Painted Rocks Cliff, LLC on Flathead Lake. Painted Rocks constructed a dock after obtaining a permit from Lake County. Murphy Properties claimed the dock violated the Lakeshore Protection Act, interfered with their prescriptive easement, and constituted a nuisance.The Twentieth Judicial District Court dismissed Murphy Properties' Lakeshore Protection Act claim against Lake County and granted summary judgment in favor of Painted Rocks on all claims. The court found that the dock did not interfere with navigation or lawful recreation under the Act, as Murphy Properties could still access the cove with smaller watercraft. The court also ruled that Murphy Properties could not establish a prescriptive easement because their use of the cove was not exclusive, given the public's right to use the waters. Additionally, the court dismissed the nuisance claim, as it was contingent on the alleged violation of the Lakeshore Protection Act.The Supreme Court of the State of Montana affirmed the lower court's rulings. The court held that the Lakeshore Protection Act does not mandate denial of a permit if a project impacts navigation or recreation, but rather favors issuance if it does not. The court agreed that Murphy Properties' use of the cove was not exclusive and thus could not support a prescriptive easement. The court also upheld the dismissal of the nuisance claim, as it was based on the failed Lakeshore Protection Act claim. The judgment in favor of Lake County and Painted Rocks was affirmed. View "David L. Murphy Properties, LLC v. Painted Rocks Cliff, LLC" on Justia Law

Roger and Therese Hutchinson purchased rural property in Madison County, Montana, in 2016, which included an easement for access via a private road. They obtained a title insurance policy from Old Republic National Title Insurance Company. Disputes arose with Nugget Creek Ranch, the owner of the adjoining property, over the use and control of gates on the easement. In 2020, the Hutchinsons sued Nugget Creek, which counterclaimed for declaratory judgment, trespass, nuisance, negligence, slander, defamation, vexatious litigation, and reverse adverse possession. The reverse adverse possession claim was dismissed by the court.The Hutchinsons requested Old Republic to defend them against Nugget Creek's counterclaims, but Old Republic denied coverage, citing policy exclusions for disputes arising from the easement and for actions taken by the insured after the policy date. The Hutchinsons filed a lawsuit against Old Republic for breach of contract and unfair claim settlement practices. The District Court granted summary judgment in favor of Old Republic, finding no duty to defend because the policy excluded coverage for disputes related to the easement and for actions occurring after the policy date.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court's decision. The court held that Old Republic had no duty to defend the Hutchinsons because the policy explicitly excluded coverage for disputes arising from the easement and for actions taken by the insured after the policy date. The court also noted that the policy did not cover tort claims or actions that occurred after the policy's effective date. Thus, the court concluded that Old Republic unequivocally demonstrated a lack of coverage under the policy. View "Hutchinson v. Old Republic" on Justia Law

Scott and Karen Larsen purchased two adjoining lots in the McGuiness Tracts subdivision in the late 1980s, intending to build a house and retire there. Keith and Danielle Sayers, who bought a lot in the same subdivision in 2012 and another adjoining lot in 2016 or 2017, built a freestyle motocross course on their properties. The Larsens, disturbed by the noise and dust from the motocross activities, sent a cease-and-desist letter to the Sayerses, which was ignored. Consequently, the Larsens filed a lawsuit seeking injunctive relief for breach of restrictive covenant, nuisance, and trespass. The Sayerses counterclaimed for intentional infliction of emotional distress.The Second Judicial District Court held a bench trial and ruled that the Sayerses' motocross activities did not violate the restrictive covenants of the subdivision, denying the Larsens' claims for injunctive relief and nuisance. However, the court granted the Larsens' request to enjoin Keith from hitting golf balls onto their property. The court also denied the Sayerses' counterclaim for intentional infliction of emotional distress. The Larsens' motion for attorney’s fees was not ruled upon by the District Court.The Supreme Court of the State of Montana reviewed the case and concluded that the Sayerses' freestyle motocross course constitutes a breach of the restrictive covenants limiting the use of the property to residential or agricultural purposes. The court reversed the District Court's ruling on this basis and remanded the case for the District Court to award the Larsens reasonable attorney’s fees as the prevailing party. The Supreme Court affirmed the District Court's determination that Keith's ramp-building activities did not violate the covenants' restriction against commercial activity. View "Larsen v. Sayers" on Justia Law

GBSB Holding, LLC (GBSB) is the developer of Baker 80, a proposed subdivision adjacent to Whitefish Hills Village (WHV) in Flathead County. GBSB sought to use WHV roads as the primary access to Baker 80, which was opposed by Flathead County, Whitefish Village, LLC, and the WHV Homeowners Association. GBSB also challenged the abandonment of a portion of Brady Way, a county road within WHV, by Flathead County.The Montana Eleventh Judicial District Court prohibited GBSB from using WHV roads as the primary access to Baker 80. The court concluded that the public access easements on WHV roads did not include primary access for Baker 80 residents. Additionally, the court found that Flathead County did not exceed its jurisdiction in abandoning a portion of Brady Way.The Supreme Court of the State of Montana reviewed the case. The court affirmed the District Court's decision, holding that the public access easements on WHV roads were easements in gross, benefiting the public at large and not specifically Baker 80 residents. The court determined that the scope of the public access easements did not extend to primary access for Baker 80. The court also upheld the District Court's conclusion that Flathead County did not exceed its jurisdiction in abandoning a portion of Brady Way, as the abandonment process complied with statutory requirements and substantial evidence supported the Board's decision. View "GBSB Holding v. Flathead County" on Justia Law

Flathead Properties, L.L.C. (Appellant) owned a tract of land along Flathead Lake that became an island during certain months due to rising water levels. In 2011, Appellant received a permit from the Flathead County Planning and Zoning Office to build a bridge connecting the island to the peninsula. The Community Association for North Shore Conservation (C.A.N.S.C.) challenged the permit, arguing it violated the Montana Lakeshore Protection Act. The District Court voided the permit and ordered the bridge's removal, a decision upheld by the Montana Supreme Court.Following the Supreme Court's decision, Appellant filed a claim for inverse condemnation against Flathead County, arguing that the court-ordered removal of the bridge constituted a taking of its vested property interest, requiring compensation. The County filed a motion to dismiss under M. R. Civ. P. 12(b)(6), arguing that since the permit was void ab initio, Appellant never had a vested property interest. The District Court granted the motion, agreeing with the County's reasoning.The Supreme Court of the State of Montana reviewed the case and reversed the District Court's decision. The Court held that Appellant's complaint contained sufficient facts to support a claim for inverse condemnation or, alternatively, a regulatory takings claim. The Court noted that Appellant had a constitutionally protected property interest in the bridge once it was built and that the County's actions in issuing and then voiding the permit could be seen as a taking requiring just compensation. The case was remanded for further proceedings consistent with this opinion. View "Flathead Properties L.L.C. v. Flathead Cty" on Justia Law

Appellees Gordon Tait and Michelle Janz plan to build a residence at the base of their property adjacent to Whitefish Lake. The proposed access to their home is a narrow dirt road that crosses both Appellees’ and Appellants’ lots, part of an express easement allowing all lot owners to use the road. Appellants challenged this use, arguing the easement was intended only for summer access to the lake, not for regular travel to a residence, and that their properties would be unduly burdened by the construction.The Eleventh Judicial District Court, Flathead County, ruled in favor of Appellees, determining the easement’s language was specific and did not prohibit year-round use of the road. The court granted summary judgment to Appellees, leading to this appeal.The Supreme Court of the State of Montana reviewed the case. The court examined the easement’s language and found it unambiguous regarding year-round use. The easement explicitly permitted motor vehicle traffic across a ten-foot right of way without seasonal limitations. The court noted that while the easement limited shared maintenance costs to summer use, it did not restrict the road’s use to summer months only. The court also found no basis to prohibit the use of the road for constructing a residence, as the easement did not limit the type of access provided.The court affirmed the District Court’s decision, holding that the easement allowed year-round use and did not restrict the road’s use to accessing only non-residential structures. Concerns about potential overburdening of the easement due to construction were deemed speculative and not ripe for adjudication. View "Archer v. Tait" on Justia Law

Donald Fleming filed a lawsuit against Caribou Creek Log Homes, Inc. and North Idaho Insulation, LLC, alleging that spray foam insulation installed by North Idaho Insulation caused significant structural damage to his residence in Montana. Fleming's claims included negligence, violations of residential construction defect statutes, the Montana Consumer Protection Act, and breach of warranties. North Idaho Insulation then filed a third-party complaint against Southwest Distributing Co. (Southwest), alleging that Southwest manufactured and sold the defective spray foam insulation and seeking indemnification and contribution.The Montana Nineteenth Judicial District Court denied Southwest's motion to dismiss for lack of personal jurisdiction, concluding that it had specific personal jurisdiction over Southwest under Montana Rule of Civil Procedure 4(b)(1). Southwest then petitioned the Montana Supreme Court for a writ of supervisory control, arguing that the District Court erred in its jurisdictional ruling.The Montana Supreme Court reviewed the case and determined that the District Court erred in concluding it had specific personal jurisdiction over Southwest. The Supreme Court found that Southwest did not transact business in Montana related to the claims and that the claims did not arise from Southwest's activities in Montana. Additionally, the Court held that the stream-of-commerce theory did not apply, as Southwest did not purposefully direct its activities toward Montana. Consequently, the Supreme Court granted the petition for a writ of supervisory control, reversed the District Court's order, and remanded the case for further proceedings consistent with its opinion. View "Southwest v. 19th Judicial Dist." on Justia Law

Craig Baugh acquired a 20-acre tract of land in 1983 and another adjoining 20-acre tract in 1993, both located in a remote, forested area in Flathead County, Montana. In 2006, Baugh consolidated and subdivided the 40-acre aggregate into two new 20-acre tracts (Tract 1 and Tract 2) by certificate of survey (COS), which included a 20-foot wide access and utility easement on an existing road. Baugh sold Tract 2 to Florian Skyland in 2019, who later sold it to H2S2, LLC. H2S2 planned to develop a 32-unit short-term "glamping" business on Tract 2, which Baugh opposed, leading to a lawsuit.The District Court of the Eleventh Judicial District, Flathead County, initially denied Baugh's request for a preliminary injunction but later granted summary judgment in his favor. The court concluded that H2S2's planned commercial use of the easement would exceed the intended scope of the easement, which was meant for single-family residential use. The court permanently enjoined H2S2's planned use and awarded Baugh prevailing party attorney fees, deeming H2S2's counterclaims for damages as frivolous.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court's summary judgment that H2S2's proposed commercial use exceeded the authorized scope of the express easement. The court held that the easement's intended use was limited to single-family residential purposes, and H2S2's planned commercial use would significantly exceed this scope. However, the Supreme Court reversed the District Court's award of attorney fees to Baugh, concluding that the central issue was a bona fide dispute on the merits of the permissible use and scope of the easement, and thus, H2S2's counterclaims were not frivolous. The case was remanded for entry of a corresponding final judgment. View "Baugh v. H2S2, LLC" on Justia Law

The case involves the Parrot Ditch Company (PDC) and its four water rights in the Jefferson River. PDC delivers water to its shareholders through the Parrot Ditch, which runs parallel to the Jefferson River in Basin 41G. The ditch was constructed in 1895, and PDC was organized in 1916 to manage and distribute water through the ditch. PDC issued shares that correspond to water entitlements, and the company stopped issuing shares in 1981. Two of the water rights were litigated in 1926 in the Carney case, which established shareholders' interests in PDC and referenced priority dates and volumes for two water rights.The Montana Water Court issued a Temporary Preliminary Decree in 1989, which included abstracts for PDC's four water rights. PDC objected to the place of use for one of the rights in 1990 and later requested amendments to the flow rate and irrigated acreage. The Water Court adopted various recommendations over the years, ultimately increasing the place of use to 6,710.78 acres. In 2018, the Water Court issued a Preliminary Decree, and PDC objected, seeking a larger service area and other corrections. Objectors (AMD) also raised objections to various elements of PDC's water rights.The Montana Supreme Court reviewed the case and affirmed the Water Court's decisions. The Court held that PDC failed to provide sufficient evidence to support a larger service area beyond 6,710.78 acres. The Court also found that the Carney decision did not adjudicate water rights and that AMD provided sufficient evidence to overcome the prima facie status of PDC's claims regarding the Townsend and Methodist rights. Finally, the Court upheld the Water Court's modification of the Nolte flow rate to 100 cfs, based on the lack of notice to affected water users when PDC requested the amendment in 1997. View "Parrot Ditch v. Ashcraft" on Justia Law