Axelrod v. Reid Ltd. P'ship

• Jurisdiction: Idaho,United States
• Parties: DAVID W. AXELROD, as Trustee of the DAVID W. AXELROD FAMILY TRUST dated June 13, 2017, as restated on September 28, 2018, Plaintiff-Counterdefendant-Respondent-Cross Appellant, v. REID LIMITED PARTNERSHIP, an Idaho limited partnership; and MICHAEL REID, an individual, Defendants-Counterclaimants-Appellants-Cross Respondents.
• Decision Date: 17 April 2024
• Court: Idaho Supreme Court
• Docket Number: 49628

1

DAVID W. AXELROD, as Trustee of the DAVID W. AXELROD FAMILY TRUST dated June 13, 2017, as restated on September 28, 2018, Plaintiff-Counterdefendant-Respondent-Cross Appellant, v. REID LIMITED PARTNERSHIP, an Idaho limited partnership; and MICHAEL REID, an individual, Defendants-Counterclaimants-Appellants-Cross Respondents.

No. 49628

Supreme Court of Idaho

April 17, 2024

Appeal from the District Court of the Seventh Judicial District State of Idaho, Teton County. Steven W. Boyce, District Judge.

The judgment of the district court is affirmed in part and vacated in part.

Jonathan S. Willett, Pro Hac Vice, Boulder Colorado, for Appellant/Cross-Respondent, Reid Limited Partnership. Parkins Law Office, Pamela T. Parkins, local counsel, Victor Idaho. Jonathan S. Willett argued.

Beard St. Clair Gaffney, PA, Idaho Falls, for Respondent/Cross-Appellant, David W. Axelrod, Trustee. Jeffrey D. Brunson argued. Michael Reid Appellant/Cross-Respondent pro se.

MEYER JUSTICE

This case is a consolidated appeal of issues arising out of a settlement agreement concerning the real property and easement rights of two neighboring landowners. For the reasons set forth below, we affirm in part, vacate in part and remand the case for further proceedings.

I. FACTUAL AND PROCEDURAL BACKGROUND

David W. Axelrod as Trustee of the David W. Axelrod Family Trust ("Axelrod") purchased property in Teton County in 2003. Michael Reid owned and operated an organic dairy farm nearby on land owned by the Reid Limited Partnership ("RLP"). Reid also leased land for his farming operations adjacent to the parcel purchased by Axelrod.

At the time of its purchase, the Axelrod parcel was not accessible by road. There were two options for building an access road: (1) build along the two easements provided for in the Axelrod deed (referred to collectively to as the "Miller Easement"), which together would connect to a main highway, or (2) build onto an existing dirt road that came through the RLP property. Reid told Axelrod that he would prefer Axelrod to build onto the existing dirt road because the Miller Easement cut across a pasture he was leasing for grazing. In 2004, Axelrod built onto the existing dirt road, referred to hereinafter as the "RLP Easement."

In 2006, Axelrod built a house on the Axelrod parcel. At first, Axelrod and Reid got along. But in 2011, the relationship between Axelrod and Reid began to sour. At that time, landscape contractors hired by Axelrod sprayed herbicide on and around the RLP Easement, including on some of the RLP land. Reid's dairy farm, certified as "organic and biodynamic," was subject to certain requirements and inspections to maintain its certification, and because of the herbicide being applied, Reid lost organic certification for three years on three or four acres of RLP land around the RLP Easement.

Later, Teton County placed a road sign on the RLP Easement road. Reid observed traffic on the RLP Easement road and was concerned that it would be mistaken for a public road. Reid contacted Axelrod to ask for his help in getting the road sign removed. During this conversation, Reid referred to Axelrod's usage of the RLP Easement as a "handshake agreement," which alarmed Axelrod. Axelrod declined to help Reid and stated that he had a "firm, written easement."

After this conversation, Reid received a letter from Axelrod's attorney demanding that he "either sign a document that confirmed that [Axelrod] had an express written easement or [he] would be sued." Reid refused to sign the document and in early 2017, began blocking off the RLP Easement road.

This led to Axelrod's filing suit seeking clarification about the nature of his easement rights. During the litigation, both Reid and Axelrod filed motions for summary judgment. On April 18, 2018, the district court issued a memorandum decision on the cross-motions for summary judgment. The court concluded that Axelrod did not have an express easement for use of the RLP Easement, but he did have an easement by estoppel. Shortly after this decision, on the day trial was to commence, the parties executed a settlement agreement and stipulated to dismiss the suit. Chief among the obligations undertaken by the parties as part of the settlement agreement was that, within two years, Axelrod would build a new road along the Miller Easement and thereafter renounce any easement rights in the RLP Easement, and that Reid would be "solely" responsible for the cost and installation of an "up to sixteen-foot (16') wide cattle guard" to be installed "on the Axelrod [p]roperty substantially in the vicinity of the Red Gate ...."

In September 2018, Axelrod built the Miller Easement road. Because winter was approaching, Axelrod and Reid discussed when the cattle guard was to be installed and, specifically, whether it should wait until spring. There was initial difficulty in finding a cattle guard that would serve the need and meet the specifications in the Settlement Agreement. Ultimately, the road contractor working for Axelrod found a sixteen-foot cattle guard and was directed by Axelrod to install it "exactly where the red gate" was. Before the end of October 2018, the cattle guard was purchased, installed, and the red gate was removed. Although Reid was involved in discussions with Axelrod about when to put the cattle guard in and in discussions with the contractor about placement, he was not involved in the final selection or ultimate placement of the cattle guard. Reid disagreed with the ultimate placement of the cattle guard because he believed the cattle guard selected was unnecessarily expensive; he was required to pay for it; it was installed almost entirely on Axelrod's property; and he felt it did not serve as an effective barrier for the cows between his organic farm and Axelrod's herbicide-treated property. Reid then put up a blue gate across the Miller Easement road, in a place where the Axelrod, Miller, and RLP property met, so his cows could not access any of Axelrod's property.

As a result of the new barrier across his new road and a breakdown in communication between the parties, Axelrod filed suit on January 6, 2020, alleging that Reid and RLP had failed to abide by a term of the Settlement Agreement that required Reid and RLP to pay "all costs associated with the acquisition and installation of" a cattle guard and had "failed to deal fairly with and act in good faith toward Axelrod ...."

On January 31, 2020, Reid, acting pro se, responded in a pleading titled "Response and Cross Complaint" in which he denied all allegations against him and RLP, and asserted myriad claims against Axelrod, including trespass and illegal removal and destruction of his fence.

On February 21, 2020, Axelrod moved to dismiss Reid's cross-complaint for failure to state a claim upon which relief can be granted; for entry of default regarding RLP, who was not represented by counsel; and for the court to take judicial notice of certain facts relating to RLP.

On March 6, 2020, Axelrod filed a motion for summary judgment. On March 9, 2020, Reid filed the "Affidavit of Michael Reid in Support of Response and Counter Complaint" with voluminous attachments.

On March 13, 2020, Axelrod filed a motion to strike Reid's affidavit and a motion to shorten time so his motions could be heard together. Due to court scheduling issues and circumstances incident to the COVID-19 pandemic, the hearing on these motions was continued for two months to May 19, 2020.

In the intervening time, Reid filed several responsive papers: on March 27, 2020, he filed a response to Axelrod's motion for summary judgment; on May 13, 2020, he filed an "Affidavit of Michael Reid in Response to Plaintiff's Motion for Summary Judgment"; and on May 15, 2020, he filed a response to Axelrod's motion to strike.

On May 19, 2020, the district court heard Axelrod's motions during a remote hearing. On the motion for entry of default, the court concluded that RLP was required by law to have counsel. Finding that no prejudice would result from allowing RLP time to obtain counsel, the court ordered that RLP had 30 days for a licensed attorney to enter an appearance and file a responsive pleading on its behalf. On the motion to strike, the court went through Reid's filing paragraph by paragraph, denying the motion as to some paragraphs and granting it as to others. The district court determined that Reid's response to Axelrod's motion to strike was not filed seven days prior to hearing as required by Idaho Rule of Civil Procedure 7 and would not be considered by the court.

Next, the court took up Axelrod's motion for summary judgment. There were several issues with Reid's response to Axelrod's filing: (1) it was only an affidavit-it was not connected to a memorandum; (2) it was not filed 14 days in advance of the hearing as required by Idaho Rule of Civil Procedure 56; and (3) it was never served on Axelrod's counsel. Ultimately, the court concluded, pursuant to Rule 56(e), that Reid, as the nonmoving party, had failed to properly support any assertion of fact or address the assertions of fact in Axelrod's motion for summary judgment. Accordingly, the court granted Axelrod's motion for summary judgment.

On May 29, 2020, Reid filed a motion for reconsideration, citing Idaho Rule of Civil Procedure 60, seeking relief from the court's summary judgment ruling in favor of Axelrod. Shortly thereafter, Axelrod filed a memorandum of costs and attorney fees, requesting that his fees be paid by Reid pursuant to Idaho Rule of Civil Procedure 54, Idaho Code sections 12-120 and 12121, and Section 3.05 of the Settlement Agreement. While a hearing on the reconsideration motion was pending, counsel for RLP filed an appearance, an answer, and...