Stecklein v. City of Cascade, 03-0904.

• Decision Date: 04 March 2005
• Docket Number: No. 03-0904.,03-0904.
• Citation: 693 N.W.2d 335
• Parties: Thomas Joseph STECKLEIN and Mary Beth Stecklein, Appellees, v. CITY OF CASCADE, Appellant.
• Court: Iowa Supreme Court

693 N.W.2d 335

Thomas Joseph STECKLEIN and Mary Beth Stecklein, Appellees, v. CITY OF CASCADE, Appellant.

No. 03-0904.

Supreme Court of Iowa.

March 4, 2005.

Michael J. Coyle and Norman J. Wangberg of Fuerste, Carew, Coyle, Juergens & Sudmeier, P.C., Dubuque, for appellant.

Joseph J. Bitter of Bitter Law Offices, Dubuque, for appellees.

TERNUS, Justice.

The City of Cascade appeals from a district court judgment quieting title to certain platted, but unopened, streets in the appellees, Thomas and Mary Beth Stecklein. The district court ruled the city had an easement to use and maintain roads through the Steckleins' property but lost that right by the Steckleins' adverse possession and through the operation of Iowa's forty-year marketable title statute, Iowa Code section 614.31 (2001). Upon our review of the record and the governing legal principles, we conclude the city holds fee title to the disputed land. Therefore, we reverse the district court's judgment quieting title in the Steckleins, and remand for entry of judgment in favor of the city.

I. Scope of Review.

Our review of the court's ruling in this quiet title action is de novo. Fencl v. City of Harpers Ferry, 620 N.W.2d 808, 811 (Iowa 2000). Accordingly, we will examine the facts and the law to decide anew the issues properly presented. Id. Although we give weight to the trial court's fact findings, neither the court's findings of fact nor its conclusions of law are binding. Id.

II. Factual Background.

In 1857, a county judge accepted for recording a plat of land containing the disputed streets, titled "Second Union Addition to the Village of East Cascade, Dubuque County, Iowa." At that time, unincorporated, platted real estate was known as a village. See Iowa Code §§ 632, 649 (1851). Although the Village of East Cascade was never incorporated, the City of Cascade was incorporated on December 31, 1880, and its boundaries included the Second Union Addition. At that time the Second Union Addition was located in the southeastern corner of the city limits and, although platted as blocks, lots, and streets, was used for farming.

There is no record of a formal ordinance or resolution of the city accepting the streets designated in the Second Union Addition. Nonetheless, in 1905 the City passed an ordinance establishing the grades of certain streets, including two of the streets found in the Second Union Addition. In the 1930s or early 1940s a house (now owned and occupied by the Steckleins) was built on block 34 of the Second Union Addition; it did not encroach on any of the platted streets. At some point in time an access road to the house developed on a platted, but unopened street designated as South Street.

In 1966 the city adopted an ordinance changing the names of certain streets within the Second Union Addition, including changing South Street to Sixth Avenue. In addition, for a number of years, the exact dates unknown, the city utility owned a gas main located in Sixth Avenue S.E. in the Second Union Addition. In 1988 the city vacated a portion of Washington Street within the Second Union Addition. The city council allowed the abutting property owners to purchase the property, but retained a utility easement over a portion of the vacated land.

In June 1990 the Steckleins purchased the following described real estate, located in Cascade, Iowa, from Catherine Schmidt:

Lots 5, 6, 7, 8, of Block 33; Block 34; Block 35; Block 40; Block 41; Block 42; Block 43; in the Second Union Addition to the Village of East Cascade, Dubuque County, Iowa. All in the City of East Cascade, Iowa, according to the recorded plat thereof subject to easements of record.

This description, contained in the Steckleins' warranty deed, did not include the platted streets. At the time the Steckleins purchased this property it was enclosed by a thirty to forty-year-old fence. In addition, there were some very old internal fences on the property, some of which crossed the platted streets. There was no visible use of any of the platted streets within the perimeter fence, other than the gravel road leading to the house.

In 1993, the city paved Adams Street, which abuts the Steckleins' property on the west. The city also installed radii curbs on the east side of Adams Street at Sixth Avenue S.E. and Seventh Avenue S.E. in anticipation of these proposed perpendicular streets intersecting Adams at some time in the future. In addition, the city required the developer of a subdivision to the south and east of Second Union Addition to install a sewer adequate to handle future development on Sixth, Seventh, Eighth, and Washington, which are streets running through the Second Union Addition.

In 1994, the Steckleins obtained an appraisal of their property. The appraisal stated it was for the purpose of establishing a fair market value "for the property as a whole," but included a market analysis for eight lots in blocks 34 and 41 platted for residential purposes. This appraisal referenced "future proposed streets" in its discussion of the value and suitability of these lots for development purposes. The appraisal noted the lots were too small by today's standard, and their value was also negatively affected by the fact "the proposed streets will have to be paid for by the developer with no help from city funds." In 1998, upon the advice of their attorney, the Steckleins obtained a quit claim deed from Catherine Schmidt of all her rights in "the unused and abutting streets" relating to the lots designated in the Second Union Addition.

On August 13, 2001, the issue of opening and improving Sixth Avenue S.E. came before the city council. On August 15, 2001, the Steckleins filed an affidavit of possession, claiming record title to all of the blocks and lots contained in their warranty deed from Schmidt and "that part of the unused and fenced in abutting streets, all according to the recorded plats thereof."

It is undisputed the Steckleins have never paid taxes on the streets. Although the Steckleins planted trees on the property when they removed the old perimeter fence, they did not plant trees along the line where proposed Sixth and Seventh Avenues would intersect Adams Street. The Steckleins graded the gravel access road at some point in time, but the city has otherwise maintained the road, putting down gravel and removing snow. Originally garbage and recycling materials were picked up in front of the Steckleins' house on the Sixth Avenue access road, but after the city's notice of intent to improve Sixth Avenue, the Steckleins began placing their garbage and recycling items at the intersection of Adams and Sixth Avenue. No buildings or structures have been erected in any of the proposed streets.

III. Prior Proceedings.

On March 25, 2002, the Steckleins filed an action in equity to quiet title to the platted, but unopened, streets in the Second Union Addition and to prevent the city from entering thereon. In its answer, the city denied the Steckleins owned the disputed land. The matter was tried to the court, which issued a ruling in favor of the plaintiffs. The district court determined the city had only an easement in the streets, which it lost through its failure to exercise its rights for over 120 years. The court reasoned that the city's failure to open the streets, coupled with the continuous farming of the land and the enclosure of the disputed property with fences, supported a finding of abandonment and adverse possession sufficient to extinguish the city's right to the platted streets. The court also found merit in the plaintiffs' argument that the city was divested of its easement by Iowa Code section 614.31 because the city had failed to take any action or file any documentation of its interest in the land for over forty years. The district court rejected the plaintiffs' assertion the city was equitably estopped from asserting its rights in the disputed property. Based on its finding of adverse possession and the effect of section 614.31, the court quieted title to the disputed property in the Steckleins.

After the trial court denied the city's post-trial motions, the city filed this appeal. It claims the court erred in three particulars: (1) in holding the city had only an easement in the streets and not fee title; (2) in holding the plaintiffs acquired title by adverse possession; and (3) in holding the marketable title statute divested the city of its interest in the property.

IV. Nature of City's Interest in Land.

We begin our consideration of this appeal with an analysis of the city's claimed interest in the disputed streets. The city contends it holds title in fee to the platted streets, whereas the plaintiffs assert the city held a mere easement. To determine the nature of the city's interest, it is necessary to examine the statutes in effect at the time the plat at issue was recorded in 1857. Chapter 41 of the 1851 Iowa Code set out the requirements for a proprietor of land to lay out a village plat and make a dedication of land for public use. See Iowa Code §§ 632-635 (1851). Because there is no dispute that the Second Union Addition plat conformed to the statutory requirements, we turn our attention to the provisions governing recording and dedication of the plat:

Sec. 636. Recorded. The plat and acknowledgement shall then be presented to the county judge, who if satisfied that the above requirements have been fully complied with shall enter thereon an order that the whole be recorded.

Sec. 637. Dedication to public. The acknowledgement and recording of such plat is equivalent to a deed in fee simple of such portion of the land as is therein set apart for public use....

Iowa Code §§ 636-637 (1851). The record clearly establishes a county judge ordered that the plat be recorded. Although section 637 provided that the court's action was equivalent to a deed in fee simple, the City of Cascade did not exist in 1857. The plaintiffs argue the public...