Piche v. Independent School Dist. No. 621, No. C7-01-267

• Decision Date: 28 August 2001
• Docket Number: No. C7-01-267, No. C3-01-394.
• Citation: 634 N.W.2d 193
• Parties: Elon PICHE, et al., Appellants, Respondents, v. INDEPENDENT SCHOOL DISTRICT NO. 621, Respondent, Appellant.
• Court: Minnesota Court of Appeals

634 N.W.2d 193

Elon PICHE, et al., Appellants, Respondents, v. INDEPENDENT SCHOOL DISTRICT NO. 621, Respondent, Appellant.

Nos. C7-01-267, C3-01-394.

Court of Appeals of Minnesota.

August 28, 2001.

Thomas W. Tuft, Valerie Downing Arnold, Thomas Tuft Law Offices, and Patrick J. Kelly, Kelly & Fawcett, P.A., St. Paul, for appellants-respondents Piche.

Eric J. Magnuson, Timothy J. Nolan, Kathy S. Kimmel, Rider, Bennett, Egan & Arundel, L.L.P., Minneapolis, for respondent-appellant Independent School District No. 621.

Joseph M. Finley, Keith S. Moheban, Leonard, Street and Deinard, P.A., St. Paul, for amicus curiae Minnesota Land Title Association and Minnesota Real Estate Services Association.

Susan L. Naughton, League of Minnesota Cities, St. Paul, for amicus curiae League of Minnesota Cities.

Joseph E. Flynn, Daniel J.S. Becker, Knutson, Flynn & Deans, P.A., Mendota Heights, for amicus curiae Minnesota School Boards Association. Considered and decided by STONEBURNER, Presiding Judge, KALITOWSKI and PARKER, Judges.

OPINION

EDWARD J. PARKER, Judge.¹

Appellants-respondents Elon and Jane Piche (the Piches) petitioned the district court for a writ of mandamus ordering respondent-appellant Independent School District No. 621 to discharge two parcels of land, the first of which was acquired by eminent domain and the second by warranty deed. The district court found that the school district held a fee simple defeasible interest in both parcels limited to the public purpose of acquiring a site for a school; that the school district had abandoned its intent to use the land for a school site, thereby triggering the Piches' reversion in the second parcel, but that the Marketable Title Act barred their reversionary interest in the first parcel. The district court issued a writ of mandamus as to the second parcel. Both parties appealed. Because we hold that the school district acquired a fee simple absolute interest in both parcels, and in the alternative, that the Marketable Title Act bars the Piches' claim to the first parcel, we affirm in part and reverse in part.

FACTS

In 1955, the Piches purchased 76 acres of land in Ramsey County. The school district subsequently obtained an interest in 19.3 acres of the Piches' land in two parcels.

In 1957, the school district exercised its power of eminent domain over the first parcel. The Piches opposed the condemnation, but the district court granted the school district's petition. The district court's order stated: "[T]he estate acquired by the [school district] in said lands shall be fee title absolute for a school site for school building, playground and other anticipated education purposes." A panel of three commissioners determined the fair market value of the property, and the Piches appealed the award. The district court affirmed the determination of fair market value, and its final decree stated:

[The school district] now owns a fee title in said lands for the purpose of acquiring a school site for a school building, playground and other anticipated educational purposes, and to have and keep exclusive control of the same.

This final decree was properly recorded.

In 1964, under the threat of condemnation, the Piches sold the second parcel to the school district. The Piches provided the school district with a warranty deed, which states that the Piches convey the second parcel

[t]o have and to hold the same, Together with all the hereditaments and appurtenances thereunto belonging, or in anywise appertaining, to the [school district], its successors and assigns, Forever. And [the Piches], for themselves, their heirs, executors, and administrators, do covenant with the [school district], its successors and assigns, that they are well seized in fee of the lands and premises aforesaid, and have good right to sell and convey the same in manner and form aforesaid, and that the same are free from all incumbrances.

The school district paid the Piches $1,000 per lot in consideration for the second parcel. The entire 19.3 acres has since remained undeveloped. The Piches have made numerous attempts to recover the land, but the school district declined. Recently, the school district began studying its facility needs. A facilities task force issued a master plan recommending that no new school buildings be built and that the 19.3 acres be sold to generate revenue.

In April 2000, the Piches petitioned the district court for a writ of mandamus ordering the school district to discharge the 19.3 acres pursuant to a reversion because the school district had abandoned its intent to use the land for a school site. The district court issued a writ of mandamus and order to show cause. The school district answered, and a hearing was set. Three days prior to the hearing, the school district passed a resolution naming the potential uses for the 19.3 acres as (1) a site for a performing arts/administrative center; (2) a site for replacement of several leased instruction sites and a district service center; or (3) a trade for a larger tract of land.

The district court denied the Piches' petition with respect to the first parcel and granted their petition with respect to the second parcel. The district court concluded that the language of the final decree recorded in Ramsey County was ambiguous and that the nature of the school district's interest in the first parcel was determined by the 1957 statute authorizing the taking. The court held that the school district had a defeasible interest in the first parcel limited to the public purpose for which it was condemned. The district court concluded that the school district had no intention of using this land for a school site and the Piches had a reversionary interest, but that the Marketable Title Act (MTA) barred their claim, which was made more than 40 years after the taking of their interest in the first parcel. The district court concluded that by acquiring a warranty deed on the second parcel by threat of condemnation, the school district had constructively exercised its powers of eminent domain, and, like the first parcel, the school district held a defeasible fee interest in the second parcel. The court found that the MTA did not bar the Piches' claim to the second parcel, however, because the warranty deed had been executed in 1964, and the 40-year period in which to make a claim had not yet expired. The court found that mandamus, although an extraordinary remedy, was necessary on the second parcel.

The district court denied both parties' motions for amended findings. The Piches appeal the district court's finding that the MTA barred their claim to the first parcel. The school district challenges the district court's underlying finding that the school district had a defeasible interest in the first parcel and appeals the court's finding that absolute title was not conveyed on the second parcel. The two cases have been consolidated.

ISSUES

I. Did the district court err in denying the Piches' petition for a writ of mandamus compelling the school district to discharge the first parcel, acquired through eminent domain proceedings in 1957?

II. Did the district court err in granting the Piches' petition for a writ of mandamus compelling the school district to discharge the second parcel, acquired by a warranty deed in 1964?

ANALYSIS

I.

The school district argues that the district court erred in finding that the school district had only a fee simple defeasible interest in the first parcel. The Piches argue the district court erred in finding that the Marketable Title Act (MTA) barred their claim because (1) the MTA does not apply; and (2) the district court interpreted the MTA in a manner that violates their Fifth Amendment constitutional rights. Statutory construction is a question of law, which this court reviews de novo. Brookfield Trade Ctr., Inc. v. County of Ramsey, 584 N.W.2d 390, 393 (Minn.1998).

A. The school district acquired a fee simple absolute interest in the first parcel.

The Piches argue that the school district waived its right to appeal this issue by failing to request amended findings by posttrial motion. This court will generally not consider matters not argued and considered in the court below. Thiele v. Stich, 425 N.W.2d 580, 582 (Minn.1988). In its posttrial motion and memoranda, the school district did not argue specifically that it had acquired a fee simple absolute interest in the first parcel because it had prevailed on other grounds. Nevertheless, the issue had been previously briefed and argued before the district court, who considered the issue fully in making findings. The record is complete for a thorough review on appeal. Cf. In re Estate of Magnus, 444 N.W.2d 295, 297-98 (Minn. App.1989) (reviewing appealable legal issue raised in record of probate proceeding even though appellant decided to forego any postorder motions). Therefore, when the school district ultimately prevailed on the issue, we hold it need not have filed a notice of review or have raised the issue specifically in a posttrial motion to preserve the issue for appeal. Cf. Andren v. White-Rodgers Co., 462 N.W.2d 860, 861 (Minn.App.1990) (finding that respondent who prevailed in district court need not file a "contingent" appeal to preserve right to seek a remand if district court's decision is reversed).

The school district argues that it obtained a fee simple absolute in the condemnation proceedings as to the first parcel. If the eminent domain proceedings vested the school district with a fee simple absolute interest in the first parcel, the Piches would not have a reversionary interest even if the school district had failed to use the land for the public purpose for which it was originally condemned. See Minn.Stat. § 117.18 (1953) (stating that if the interest described in the condemnation proceedings is a fee simple absolute, "the fee simple absolute shall be an estate without any right of reversion under any...