Justia Montana Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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The Water Use Act permits certain groundwater appropriations to be exempt from the permitting process. An exception to one exemption is when a “combined appropriation” from the same source by two or more wells or springs exceeds a certain amount per year. At issue in this case was the definition of the term “combined appropriation.” After an adverse ruling from the Department of Natural Resources and Conservation (DNRC) hearing examiner, a group of senior water users (the Coalition) challenged the validity of Admin. R. M. 36.12.101(13), which states that the term “combined appropriation” means “groundwater developments that are physically manifold into the same system.” The district court invalidated Admin. R. M. 36.12.101(13), reinstated Admin. R. M. 36.12.101(7), which provided that “[g]roundwater developments need not be physically connected nor have a common distribution system to be considered a ‘combined appropriation’” and directed the DNRC to formulate a new administrative rule consistent with the court’s order. The Supreme Court affirmed, with the exception of the requirement that the DNRC initiate rulemaking, holding (1) the district court did not err by invalidating the newer administrative rule and reinstating the older rule; and (2) it was the DNRC’s decision whether to initiate rulemaking to change the reinstated rule. View "Clark Fork Coalition v. Montana Well Drillers Ass’n" on Justia Law

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Chris Wagner sued MSE Technology Applications, Inc. and related MSE entities (collectively, the MSE entities) and Butte Local Development Corporation (BLDC), alleging that they had improperly interfered with his attempt to purchase certain property to establish a commercial nursery. Plaintiff later amended his complaint to add Shea Relators as a defendant. The district court dismissed Wagner’s claims at trial pursuant to Mont. R. Civ. P. 50. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) did not err in granting judgment as a matter of law to the MSE entities and BLDC; but (2) erred in granting Shea Realtors summary judgment and judgment as a matter of law. Remanded. View "Wagner v. MSE Technology Applications, Inc." on Justia Law

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The Macks and the Andersons owned adjacent properties. When the Macks discovered that a dam existed on the Mack Ditch, which crossed the Andersons’ property to the Mack property, that diverted water to a pond on the Anderson’s property, the Macks filed a complaint against the Andersons alleging violations of Mont. Code Ann. 70-17-112 and seeking a temporary restraining order (TRO) and preliminary injunction. The district judge issued a TRO restraining the Andersons from interfering with the Macks’ access to the ditch. The parties entered into a stipulation that the TRO should remain in effect until further court order. The district court later found that the Macks were entitled to the preliminary injunction. The Supreme Court affirmed, holding that the district court made proper findings and clearly reserved final adjudication on the merits in the order and did not abuse its discretion in the preliminary injunction determination. View "Mack v. Anderson" on Justia Law

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The City of Missoula filed a complaint to condemn, pursuant to Montana’s law of eminent domain, the water system that provided potable water to the residents of the City. The water system was owned and operated by Mountain Water Company. After a bench trial, the district court issued a preliminary order of condemnation. The Supreme Court affirmed, holding that the City met its burden of proving by a preponderance of the evidence that its contemplated use of the water system as a municipally owned water system was “more necessary that the current use as a privately owned for-profit enterprise,” as required by Montana’s eminent domain statutes. View "City of Missoula v. Mountain Water Co." on Justia Law

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In 2014, the Bozeman City Commission adopted the Nondiscrimination Ordinance 1890, which prohibits discrimination on the basis of sexual orientation or gender expression by landlords, providers of public accommodations, and parties engaged in residential real estate transactions. Petitioners, certain Bozeman residents, filed suit against the City of Bozeman, the Commission, and the City Commissioners (collectively, Respondents) seeking a declaration that the Ordinance is invalid as a matter of law. The district court dismissed the complaint on the ground that Petitioners did not present a justiciable case or controversy. The Supreme Court affirmed, holding that the district court (1) did not err in denying Petitioners’ motion for summary judgment and dismissing their complaint based on the conclusion that Petitioners were requesting an advisory opinion; and (2) did not abuse its discretion in denying Petitioners’ motion for reconsideration and to amend. View "Arnone v. City of Bozeman" on Justia Law

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This dispute involved multiple water right holders on the mainstream of the Teton River in Teton and Chouteau Counties. Teton Prairie owned property upstream from Appellees’ properties. Appellees held water rights for stock water purposes and for domestic use. Teton Prairie’s water rights were for irrigation and were junior to all of Appellees’ rights. Appellees filed suit against Teton Prairie, claiming wrongful interference of a water right and wrongful diversion of water by a junior water right holder, and requested injunctive relief. The district court granted summary judgment for Appellees, finding that Teton Prairie violated the prior appropriation doctrine by ignoring Appellees’ call for water. The Supreme Court affirmed, holding that the district court (1) correctly applied the prior appropriation doctrine; (2) correctly found that Teton Prairie failed to establish the necessary elements to raise the defense of futile call doctrine; and (3) correctly granted injunctive relief to Appellees. View "Kelly v. Teton Prairie LLC" on Justia Law

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Plaintiff and Defendants owned adjoining properties. Defendants’ property held an easement that ran through Plaintiff’s land. When Defendants began to build a road on their easement to access their property, Plaintiff filed a complaint. The Cascade Conservation District eventually issued the necessary permit so Defendants could continue road construction. The Defendants completed the road along their easement in 2010. In 2013, Plaintiff filed suit alleging that Defendants destroyed an access trail when constructing the easement road. Plaintiff also filed a notice of lis pendens, which prevented Defendants from closing on the sale of their property. The district court held that Plaintiff’s trespass and negligence claims were barred by the statutes of limitations and that his remaining claims were barred by laches. The Supreme Court affirmed, holding the district court properly applied the doctrine of laches and did not err by granting summary judgment in favor of Defendants on all of Plaintiff’s claims not already barred by statutes of limitation. View "Algee v. Hren" on Justia Law

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Plaintiffs and Defendants owned real property on a peninsula in Echo Lake. Defendants owned a parcel on the southern end of the peninsula, through which the sole vehicular road granting access to the northern lots owned by Plaintiffs ran. Defendants purchased their property subject to a long-term existing easement allowing Plaintiffs access to their properties. In 1992, the parties entered into a road maintenance agreement setting forth the responsibilities of the parties regarding maintenance of the access road. When a flood damaged the road, Plaintiffs filed a complaint seeking declaratory judgment that the maintenance agreement was valid and enforceable and alleging that Defendants breached the agreement. Defendants counterclaimed. The district court entered judgment in favor of Defendants. The Supreme Court affirmed in part and reversed in part, holding that the district court (1) erred by concluding that the maintenance agreement was unenforceable against Defendants for lack of consideration, but the error was harmless; (2) did not err by ruling that Defendants did not breach the maintenance agreement; and (3) did not err by ordering Plaintiffs to pay Defendants’ counterclaim-related attorney’s fees and costs. View "Low v. Reick" on Justia Law

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The Water Court is adjudicating the existing water right claims of all appropriators in the Teton River Basin and issued a temporary preliminary decree for Basin 41O. Eldorado, which distributes water to shareholders from the Teton River northwest of Choteau, owns water rights that historically have been administered under the 1908 Perry Decree by a water commissioner (MCA 85-5-101). In 2014, the Water Court addressed objections to Eldorado’s existing water right claims as established under the temporary preliminary decree. The Montana Supreme Court, in Eldorado I, upheld the Water Court’s determinations that Eldorado’s claims required a volume quantification and that Eldorado historically put to beneficial use 15,000 acre-feet of water under its existing rights. The Joint Objectors later informed the water commissioner that Eldorado was approaching the volumetric quantification established by that order and requested that he cap the distribution of Eldorado’s water. Eldorado petitioned the Water Court to stay the volume quantification order pending the Eldorado I appeal. The Water Court denied Eldorado’s request and the commissioner ceased delivering water to Eldorado. Eldorado filed a dissatisfied water user complaint (MCA 85-5-301). The Montana Supreme Court affirmed denial of that complaint. Eldorado participated in every step of the process that resulted in the establishment of its rights under the modified temporary preliminary decree. View "Eldorado Coop Canal Co. v. Hoge" on Justia Law

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Property owners (Petitioners) appealed the Department of Revenue’s valuation of their residential lot for the tax year 2012. The Flathead County Tax Appeal Board (County Board) reduced the value of the land and the value of the improvements. Petitioners appealed, arguing that the appraised value was still too high. The State Tax Appeal Board (STAB) upheld the County Board’s determination of the value of the property. The district court reversed, concluding that the County Board property value upheld by STAB was clearly erroneous. The Supreme Court reversed the district court and reinstated the STAB decision, holding that the district court erred in reversing STAB’s order concerning the valuation of the property. View "Peretti v. State, Dep’t of Revenue" on Justia Law