Kennedy v. Schneider

• Decision Date: 26 May 2011
• Docket Number: No. 36853.,36853.
• Citation: 259 P.3d 586,151 Idaho 440
• Court: Idaho Supreme Court
• Parties: Vernon L. KENNEDY and Dorothy Kennedy, husband and wife, Plaintiffs–Respondents, v. Samuel E. SCHNEIDER, Jr. and Laurie Schneider, if married, as it relates to that real property described as parcel 3, Defendants–Appellants, and Fred J. Stuart and Jane Doe Stuart, as it relates to the real property herein described as parcel 1; the heirs, devisees, assigns or statutory trustees of Steen Meat Co. Ltd., a forfeited corporation, as to parcel 2 hereinafter described; together with the spouses of the above-named persons if they be known or unknown; the unknown heirs, devisees, or legatees of any of the foregoing persons; the successors in interest be they known or unknown; the unknown heirs, claimants, creditors, or parties who might claim an interest in or to the following three (3) parcels of property described in Idaho County, State of Idaho, to wit: See File For Description, Defendants.

151 Idaho 440

259 P.3d 586

Vernon L. KENNEDY and Dorothy Kennedy, husband and wife, Plaintiffs–Respondents,

v.Samuel E. SCHNEIDER, Jr. and Laurie Schneider, if married, as it relates to that real property described as parcel 3, Defendants–Appellants,andFred J. Stuart and Jane Doe Stuart, as it relates to the real property herein described as parcel 1; the heirs, devisees, assigns or statutory trustees of Steen Meat Co. Ltd., a forfeited corporation, as to parcel 2 hereinafter described; together with the spouses of the above-named persons if they be known or unknown; the unknown heirs, devisees, or legatees of any of the foregoing persons; the successors in interest be they known or unknown; the unknown heirs, claimants, creditors, or parties who might claim an interest in or to the following three (3) parcels of property described in Idaho County, State of Idaho, to wit: See File For Description, Defendants.

No. 36853.

Supreme Court of Idaho. Moscow, November 2010 Term.

May 26, 2011.

Rehearing Denied June 6, 2011.

Clark and Feeney, Lewiston, for appellants. Jonathan D. Hally argued.

Dennis L. Albers, Grangeville, for respondents.

SUBSTITUTE OPINION, THE COURT'S PRIOR OPINION

DATED MARCH 17, 2011 IS HEREBY WITHDRAWN.

HORTON, Justice.

This is an appeal by Samuel Jr. and Laurie Schneider (Schneiders)¹ from the district court's decree quieting title to real property located near Stites, Idaho in favor of Vernon and Dorothy Kennedy (Kennedys) as adverse possessors. The Schneiders also appeal the district court's award of attorney fees to the Kennedys. The Kennedys seek an award of attorney fees incurred on appeal. As we find that there was not substantial, competent evidence to support the district court's findings, we vacate the district court's decree and its judgment awarding attorney fees to the Kennedys and deny the Kennedys' request for attorney fees on appeal.

I. FACTUAL AND PROCEDURAL BACKGROUND

This action relates to property located west of the South Fork of the Clearwater River, approximately a mile and one-half downriver from the village of Stites. In 1924, Vernon Kennedy's great-uncle, William Massey, purchased property from Allen and Bertha Manes. Over the years, the land that William Massey purchased was transferred to members of his family, and it ultimately came to belong to the Kennedys. A drawing of the parcel attached to the 1924 Manes–Massey deed led to an erroneous belief in the Kennedy family as to extent of the land that they owned. When the Kennedys decided to place their property up for sale, they became aware that three parcels of the property that they believed had been owned by their family for generations were the subject of deeds in favor of other parties.

On July 11, 2007, the Kennedys initiated this quiet title action, asserting ownership of the three parcels of land as adverse possessors under a written claim of title. Default judgment in favor of the Kennedys was entered against the titleholders of record as to two of the parcels. The Schneiders answered and defended the Kennedys' claim as to the third parcel.

Following a one-day court trial, on June 23, 2009, the district court issued a memorandum decision finding that the Kennedys had proved the elements of their claim of adverse possession under a written claim of title by clear and satisfactory evidence. The court found that Vernon Kennedy had possessed the property since 1988, that there was a written instrument "sufficient to create color of title" in favor of the Kennedys, that the property had been exclusively used by the Kennedys and their predecessors, that the possession had been continuous, and, most significantly to this appeal, that both the Kennedys and the Schneiders had paid taxes on the property. The district court then applied the rule announced by this Court in Trappett v. Davis, 102 Idaho 527, 534, 633 P.2d 592, 599 (1981), that "when both the record owner and the adverse occupant pay taxes on the disputed property during the adverse possession period, the adverse possessor prevails." Thereafter, on July 15, 2009, the district court entered a decree quieting title in the disputed property in favor of the Kennedys.

On August 6, 2009, the district court received oral argument on the Kennedys' request for an award of attorney fees and indicated its intention to award attorney fees to them. On August 28, 2009, the district court issued a memorandum opinion in which it concluded that the Schneiders had frivolously defended the action, thus warranting an award of attorney fees to the Kennedys pursuant to I.C. § 12–121. The district court awarded the Kennedys $6,137.50 in attorney fees.² The Schneiders timely appealed from the decree quieting title and the order awarding attorney fees to the Kennedys.

II. STANDARD OF REVIEW

Our standard of review is well-established. Findings of fact will not be set aside on appeal unless they are clearly erroneous. Chen v. Conway, 121 Idaho 1000, 1004, 829 P.2d 1349, 1353 (1992) (citing I.R.C.P. 52(a) ). Where findings of fact are supported by substantial and competent, though conflicting, evidence, they are not clearly erroneous and thus will not be disturbed by this Court. Hodgins v. Sales, 139 Idaho 225, 229, 76 P.3d 969, 973 (2003). This Court exercises free review over the district court's conclusions of law to determine whether the court correctly stated the applicable law and whether the legal conclusions are sustained by the facts found. Conley v. Whittlesey, 133 Idaho 265, 269, 985 P.2d 1127, 1131 (1999).

III. ANALYSIS

The Schneiders present a narrow challenge to the district court's determination that the Kennedys established their claim of adverse possession. The Schneiders assert that the district court's finding that the Kennedys paid taxes on the disputed property is clearly erroneous. Consequently, they argue, the district court erred in its conclusion that the Kennedys proved the elements of adverse possession. Working from these premises, they assert that the district court abused its discretion by awarding attorney fees to the Kennedys.

A. The district court's finding that the Kennedys paid taxes on the disputed parcel is clearly erroneous, as it failed to acknowledge that tax parcels in Idaho County are based upon metes and bounds descriptions.

Idaho Code § 5–207 provides as follows:

When it appears that the occupant, or those under whom he claims, entered into the possession of the property under claim of title, exclusive of other right, founding such claim upon a written instrument, as being a conveyance of the property in question, or upon the decree or judgment of a competent court, and that there has been a continued occupation and possession of the property included in such instrument, decree or judgment, or of some part of the property under such claim, for twenty (20) years, the property so included is deemed to have been held adversely except that when it consists of a tract divided into lots, the possession of one (1) lot is not deemed a possession of any other lot of the same tract.

Idaho Codes § 5–210 further provides:

[I]n no case shall adverse possession be considered established under the provisions of any sections of this code unless it shall be shown that the land has been occupied and claimed for the period of twenty (20) years continuously, and the party or persons, their predecessors and grantors, have paid all the taxes, state, county or municipal, which have been levied and assessed upon such land according to law.

In DeChambeau v. Estate of Smith, 132 Idaho 568, 571, 976 P.2d 922, 925 (1999), this Court identified the well-established elements that a party must establish by clear and satisfactory evidence in order to establish adverse possession upon a written claim of title:

(1) that they entered into possession, as that term is defined by I.C. § 5–208, of the disputed property; (2) under a claim of title ... (3) exclusive of other right; (4) that there has been a continuous occupation and possession of the disputed property described [in the written instrument]; (5) that they have so held the property for [the statutory period]³ ; and (6) that they have paid all taxes, state, county or municipal which have been levied and assessed upon such land according to law.

(quoting Rice v. Hill City Stock Yards Co., 121 Idaho 576, 580, 826 P.2d 1288, 1292 (1992) ). The Schneiders' appeal has focused on the sixth element, specifically, whether there is substantial evidence to support the district court's finding that the Kennedys paid all taxes for the disputed property.

The district court's findings regarding payment of taxes in its memorandum decision are not extensive.

The Idaho County Recorder included the property in the Schneider's [sic] name and they paid taxes on it. The same property, however, was also included in the property for which the Kennedys paid taxes....

There is no material question that both the Schneider family and the Kennedys have paid property taxes on the disputed property for the past twenty years.

Leah Mager is a State Tax Commission certified appraiser who appraises real property in Idaho county [sic] for the Idaho County Assessor. The county inspects and appraises all the property in Idaho County on a rotating schedule every five years. She testified that she is familiar with and has appraised the disputed property and included its assessed value in the Kennedy tax bill.

Carolyn [sic] Park works in the mapping department for the Idaho County Assessor. She testified that tax payers [sic] pay by the tax number assigned to property by the assessor. She stated that the disputed property was included in both tax numbers. She testified that given the number of acres for which the Kennedys were taxed, that the disputed property had to have been included in their tax parcel. The evidence is clear and convincing that both the Kennedys and the Schneider family have paid taxes on the disputed property for more than twenty years.

In its memorandum...