Lester Riley And Susan Riley v. David Valaer And Susan Valaer ( 2015 )

uR iOF APPEALS
0,1y 11
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
2015 JUL - 7
Ali 8: 4 c
DIVISION II
LESTER RILEY and SUSAN K. RILEY, No. 46120 -0 -II
husband and wife,
Appellants,
V.
DAVID VALAER and SUSAN E. VALAER, UNPUBLISHED OPINION
husband and wife,
Resbondents.
MELNICK, J. — Lester and Susan Riley (Riley) appeal from the trial court' s order granting
partial summary judgment to David and Susan Valaer (Valaer) and quieting title to a disputed strip
of property. Riley argues that Valaer did not prove the elements of the common grantor doctrine
and that the trial court erred when it established the disputed strip of property' s boundary.
Alternatively, Riley argues that Valaer did not present evidence to establish the applicability of the
equitable liability rule. We agree with both of Riley' s arguments and reverse.
FACTS
This case involves a dispute over a strip of property that is approximately nine feet long
and lies between two adjacent tax parcels. The east parcel contains a house and the west parcel is
vacant. The disputed strip contains a portion of the attached garage of the house, a patio, and a
retaining wall. The retaining wall demarcates the approximate west edge of the disputed strip.
In 1951, Fred and Alice Neth ( Neth) purchased the east parcel. On it Neth constructed a
house, patio, and retaining wall, a portion of which extended several feet over the legally described
The the property line are visible.
property line the clearly
portions over
onto west parcel. extending
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Later in 1951, Neth purchased the west parcel. In 1971, Neth sold both parcels to Boespflug, who
in turn sold both parcels to Holman, subject to easements and restrictions of record.
In 2000, Riley entered into a contract with Holman to purchase both parcels. In 2003,
Riley obtained a loan from Argent Mortgage Company ( Argent). As security for the loan, Riley
executed a deed of trust with power of sale for the east parcel "[ together with] all the improvements
now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or
hereafter a part of the property." Clerk' s Papers ( CP) at 413. Riley retained title on the west
parcel. In 2010, Riley defaulted on the loan, and Argent commenced a nonjudicial foreclosure.
On November 29, 2010 Valaer purchased the east parcel at a trustee' s sale. Valaer did not inspect
the property or review surveys prior to purchasing the east parcel.
PROCEDURAL HISTORY
In 2012, Riley filed a complaint against Valaer to remove all physical encroachments on
the west parcel and to reimburse Riley for damages. Valaer moved for partial summary judgment,
arguing that the retaining wall established a new boundary line as of the date Neth sold the property
to Boespflug and that subsequent purchasers, including Riley, treated the retaining wall as the true
boundary between the parcels. Valaer further argued that Riley' s damages should be limited to
the value of the disputed strip of land under the equitable liability rule.
In support of the motion for partial summary judgment, Valaer presented copies of Riley' s
2007 application to the city to subdivide the vacant west parcel, a demolition permit, the deed of
trust from Riley to Argent, the deed conveying title to the property to Valaer, and all prior deeds
and parcel descriptions dating back to 1951. Riley' s application to subdivide the west parcel
identified the total size of the parcel as 8, 993 square feet and the subdivided lots as totaling 90 feet
in width, which accounted for the retaining wall as part of the east parcel. The demolition permit
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application identifies the east parcel as 110 feet wide and the west parcel as 90 feet wide,
acknowledging the retaining wall as part of the east parcel. Valaer also presented photographs of
the house, patio, and retaining wall. The photographs denoted the actual deed line between the
two parcels. Valaer declared that if the actual deed line was used, it would significantly cut into
the structure of the home. In response, Riley filed a deed history for both parcels.
The trial court orally granted Valaer' s motion for partial summary judgment because " the
theory of the common grantor does show that there was an [ agreed] boundary line established."
Report of Proceedings ( RP) ( Aug. 2, 2013) at 21; CP at 693 ( Stipulated order to modify the report
of proceedings so that the word " aggrieved" on page 21 is changed to the word " agreed."). The
trial court ruled that Neth purchased the vacant parcel " in order to be able to legally establish that
the home was not subject to a divided situation" and adopted the common grantor doctrine. RP
Aug. 2, 2013) at 21. The trial court entered a written order granting Valaer' s motion for partial
summary judgment, but it did not quiet title in Valaer.
Riley moved for reconsideration on the grounds that Valaer did not present evidence to
satisfy the common grantor doctrine' s requirements. l The trial court denied Riley' s motion for
reconsideration.
Valaer moved the trial court to quiet title and for clarification of the trial court' s order
granting partial summary judgment. In a hearing on Valaer' s motion for clarification, the trial
court noted that " it was really an inconsistency to rule in favor of Valaer on the subject of the
location by a common grantor but to, at the same time, order the trial as to damages with respect
to that theory." RP ( Feb. 28, 2014) at 11. The trial court then ruled that because Valaer was
1 Although the trial court only granted summary judgment based on the common grantor doctrine,
Riley also moved for reconsideration on the grounds that issues of fact remained as to the
applicability of the liability rule.
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entitled to judgment based on the common grantor doctrine, it would grant the remedy associated
with that doctrine and quiet title in Valaer. The trial court additionally stated, "[ T] he [ c] ourt had
also granted summary judgment with respect to the liability rule. And if the decision is not upheld
on the common grantor [ doctrine] ... then the issue as to the liability rule has been decided as to
the legal right and the case would at that point be remanded to be reheard ... on the damages
issue." RP ( Feb. 28, 2014) at 11- 12. The trial court entered a final written order consistent with
its oral ruling. Riley appeals.
ANALYSIS
I. STANDARD OF REVIEW
We review an order for summary judgment de novo, engaging in the same inquiry as the
trial court. Jones v. Allstate Ins. Co., 146 Wash. 2d 291, 300, 45 P.3d 1068 ( 2002). Summary
judgment is proper if "the pleadings, depositions, answers to interrogatories, and admissions on
file, together with the affidavits, if any, show that there is no genuine issue as to any material fact
and that the moving party is entitled to a judgment as a matter of law." CR 56( c). We construe
all facts and their reasonable inferences in the light most favorable to the nomnoving party. Jones,
146 Wash. 2d at 300.
A party moving for summary judgment bears the burden of demonstrating that there is no
genuine issue of material fact. Atherton Condo. Apartment -Owners Assn Bd. of Dirs. v. Blume
Dev. Co., 115 Wash. 2d 506, 516, 799 P.2d 250 ( 1990). " A material fact is one upon which the
outcome of the litigation depends in whole or in part." Atherton, 115 Wash. 2d at 516. If the moving
party satisfies its burden, the nonmoving party must present evidence demonstrating that a material
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fact remains in dispute. Atherton, 115 Wash. 2d at 516. If the nonmoving party fails to do so, and
reasonable persons could reach but one conclusion from all the evidence, then summary judgment
is proper. Vallandigham v. Clover Park Sch. Dist. No. 400, 154 Wash. 2d 16, 26, 109 P.3d 805
2005).
II. COMMON GRANTOR DOCTRINE
The common grantor doctrine is briefly described as follows: " A grantor who owns land
on both sides of a line he has established as the common boundary is bound by that line. The line
will also be binding on grantees if the land was sold and purchased with reference to the line, and
there was a meeting of the minds as to the identical tract of land to be transferred by the sale."
Winans v. Ross, 35 Wn. App. 238, 240, 666 P.2d 908 ( 1983) ( citations omitted).
The common grantor doctrine is premised on a special relationship between the original
grantee and the common grantor, wherein the common grantor had unilateral authority to
determine the location of the property boundary. Levien v. Fiala, 79 Wash. App. 294, 302, 902 P.2d
170 ( 1995); see Strom v. Arcorace, 27 Wash. 2d 478, 481, 178 P.2d 959 ( 1947); Thompson v. Bain,
28 Wash. 2d 590, 592- 93, 183 P.2d 785 ( 1947). This special relationship is not found in other
boundary adjustment doctrines and justifies the presumption that the grantor's line is the boundary
line mentioned in the deed, immediately binding as to the grantee. See Clausing v. Kassner, 60
Wash. 2d 12, 15, 371 P.2d 633 ( 1962); Strom, 27 Wash. 2d at 481; Levien, 79 Wash. App. at 302.
Subsequent purchasers are bound to the grantor's line if they purchase the property with
actual or inquiry notice that it is the boundary. Atwell v. Olson, 30 Wash. 2d 179, 183- 84, 190 P.2d
783 ( 1948); see Strom, 27 Wash. 2d at 481; Windsor v. Bourcier, 21 Wash. 2d 313, 315- 16, 150 P.2d
717 ( 1944).
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A practical location made by the common grantor of the division line between the
tracts granted is binding on the grantees who take with reference to that boundary.
The line established in that manner is presumably the line mentioned in the deed,
and no lapse of time is necessary to establish such location, which does not rest on
acquiescence in an erroneous boundary, but on the fact that the true location was
made, and the conveyance in reference to it. However, for a boundary line
established by a common grantor to become binding and conclusive on grantees it
must plainly appear that the land was sold and purchased with reference to such
line, and that there was a meeting of minds as to the identical tract of land to be
transferred by the sale."
Strom, 27 Wash. 2d at 481 ( quoting 11 C. J. S. Boundaries § 77, at 651 ( 1938)).
Washington courts have reduced the common grantor doctrine to two questions: ( 1) did a
common grantor and original grantee establish an agreed boundary, and ( 2) if so, would a visual
inspection of the property indicate to subsequent purchasers that the deed line was no longer
functioning as the " true" boundary? Winans, 35 Wash. App. at 241; Fralick v. Clark County, 22
Wn. App. 156, 160, 589 P.2d 273 ( 1978). A formal agreement is not required; rather, the parties'
after the sale show agreement or meeting of the minds. Winans,
manifestations of ownership may
35 Wn. App. at 241. The party asserting a boundary by common grantor has the burden of
establishing these elements by clear and convincing evidence.2
2 No Washington decision has explicitly declared the plaintiffs burden under the common grantor
doctrine. However, related doctrines require proof by clear and convincing evidence.See, e. g.,
Thomas v. Harlan, 27 Wash. 2d 512, 518, 178 P.2d 965.( 1947) (" Title to real property is a most
valuable right which will not be disturbed by estoppel unless the evidence is clear and
convincing."); Merriman v. Cokeley, 168 Wash. 2d 627, 630, 230 P.3d 162 ( 2010) ( Acquiescence
be evidence.); accord
and mutual recognition must proved by clear, cogent, and convincing
Keierleber v. Botting, 77 Wash. 2d 711, 715, 466 P.2d 141 ( 1970) ( Reformation of a deed conveying
a property interest for mutual mistake requires proof by clear, cogent, and convincing evidence.).
The common grantor doctrine is similar in kind to these doctrines; the rationale that boundary
adjustments require this higher quantum of evidence is equally applicable to it.
C,
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Riley argues that Valaer did not present evidence to satisfy the requirements of the common
grantor doctrine. Br. of Appellant at 7. Specifically, Riley argues that Valaer did not present
sufficient evidence of any agreed boundary .line between any common grantor and any original
grantee. We agree.
A. Neth as Common Grantor
Riley first argues that the record does not contain evidence to establish an agreement
between Neth as a common grantor and Boespflug as an original grantee.
We agree.
The undisputed evidence is that Neth purchased the east parcel and then constructed a
house, patio, and retaining wall. These structures intruded on the west parcel that Neth purchased
in 1951. Neth then sold both parcels to Boespflug in 1971. For approximately sixty years, until
2003 when Riley granted a deed of trust with power of sale on the east parcel to Argent, the two
parcels always were conveyed simultaneously to one party. Although Neth could have determined
the location of the boundary line between the parcels, a genuine issue of material fact remains as
to whether Neth sold the parcels and Boespflug purchased them with reference to an agreed new
boundary line. The record contains only the real estate contract between Neth and Boespflug that
identifies each parcel with the original boundaries as described in the records of Clark County.
Viewed in the light most favorable to Riley, the record contains no evidence that Neth or Boespflug
treated the retaining wall as the true boundary between the parcels or that they agreed it was the
new boundary.' Therefore, because there is a genuine issue of material fact as to this element of
the common grantor ,doctrine, Neth cannot be deemed a common grantor.
From a practical standpoint, there was no need to establish a new boundary because, until 2003,
the new owners always owned both parcels.
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B. Riley as Common Grantor
L
Riley next argues that the record does not contain evidence to establish an agreement
between Riley as a common grantor and Argent as an original grantee. We agree.
Although, the evidence shows that Riley considered the retaining wall to be the boundary
line between the east and west parcels, 4 a genuine issue of material fact exists as to whether Riley
and Argent established the retaining wall as an agreed boundary when Riley conveyed the east
parcel to Argent in 2003. For the first time since 1951, the single party that owned both parcels
conveyed an interest in only one of them. The record contains the deed of trust between Riley and
Argent, in which Riley gave the east parcel as security for Argent' s loan. It included the east parcel
together with] all the improvements now or hereafter erected on the property, and all easements,
appurtenances, and fixtures now or hereafter a part of the property." CP at 413. The deed of trust
identified the east parcel by legal description: " Parcel ID Number 001210230," which currently
has the address of 401 West 36th Street, Vancouver, Washington 98660. CP at 413.
Argent accepted the deed of trust, but the record does not contain any evidence that Argent
the retaining the west boundary. It also does not
agreed with Riley that wall constituted
demonstrate.that Argent knew of or relied on Riley' s attempted short plat, application to subdivide
the west parcel submitted to the city, or demolition permit application, in which Riley treated the
retaining wall as the boundary of the east parcel. The record also does not contain any evidence
that Valaer relied on or knew of Riley' s applications to the city at the time Valaer purchased it at
foreclosure.
4 In Riley' s application to subdivide the west parcel identified the total size of the west parcel and
the size of the proposed subdivided lots accounting for the retaining wall as part of the east parcel.
Riley further submitted these same dimensions with the demolition permit application,
acknowledging that the now disputed strip of land, including the retaining wall, would remain part
of the east parcel.
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We note that the record does not contain an appraisal of the property Argent took as security
in exchange for the loan. Although Riley mentions that " Argent had an appraisal done and
obtained title insurance before escrow closed on the refinance," neither the appraisal nor the title
insurance are attached as exhibits or are otherwise contained in the record. CP at 320. We further
note that the record also does not contain a title report. Although the record contains the first page
of a title commitment for Argent' s servicing company, it merely refers to the property by its legal
description, " Lot 1, Block 3, SUNSET VIEW ADDITION TO THE CITY OF VANCOUVER,
according to the plat thereof, recorded in Book `D' of plats, page 101, records of Clark County,
Washington." CP. at 361. When viewed in the light most favorable to Riley, genuine issues of
material fact exist regarding the information Argent had when it took the east parcel as security
for its loan and whether Argent and Riley agreed to the retaining wall as a new boundary. Thus, a
genuine issue of material fact exists as to this element of the common grantor doctrine and the trial
court erred by granting Valaer summary judgment.
III. LIABILITY RULE
Riley argues that genuine issues of material fact exist as to the applicability of the liability
rule. We agree. Although the trial court' s final written order quieted title in Valaer under the
common grantor doctrine only, the trial court noted in the reconsideration hearing that it had
alternatively granted partial summary judgment to Valaer under the liability rule. Generally,
Washington courts will order an encroacher to remove encroaching structures. Arnold v. Melani,
75 Wash. 2d 143, 152, 437 P.2d 908 ( 1968). However, where such an order would be oppressive,
Washington courts recognize an exception. Arnold, 75 Wash. 2d at 152. To trigger the exception
under the Arnold test, the encroacher must prove by clear and convincing evidence that
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1) he did not simply take a calculated risk or act in bad faith, or act negligently,
structure; ( 2) the damage to
willfully, or indifferently in locating the encroaching
the landowner is slight and the benefit of removal equally small; ( 3) there is ample
remaining room for a structure suitable for the area and there is no real limitation
on the property' s future use; ( 4) it is impractical to move the encroaching structure
as built; and ( 5) there is an enormous disparity in the resulting hardships.
Proctor v. Huntington, 146 Wn. App. 836, 847, 192 P.3d 958 ( 2008) ( citing Arnold, 75 Wash. 2d at
152), affd, 169 Wash. 2d 491, 238 P.3d 1117 ( 2010). If all the elements are satisfied, the trial court
may adjust the boundary of the disputed property. Proctor, 146 Wash. App. at 851.
The first element of the Arnold test requires clear and convincing proof that "[ t] he
encroacher did not simply take a calculated risk, act in bad faith, or negligently, willfully or
locate the encroaching 75 Wash. 2d at 152. Viewed in the light most
indifferently structure."
favorable to issues fact exist as to this first element. The record does
Riley, genuine of material
not demonstrate that Valaer acted with due diligence when purchasing the property. Valaer did
not inspect the property or review surveys prior to purchasing the east parcel at the trustee' s sale.
The record is void of facts to establish that Valaer did not simply take a calculated risk or act
negligently in locating the encroaching structure. Thus, the trial court erred by granting Valaer
summary judgment.
Because the first element of the Arnold test is not satisfied, we do not reach the remaining
elements.
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We reverse.
A majority of the panel. having determined that this opinion will not be printed in the
Washington Appellate Reports, but will be filed for public record in accordance with RCW 2. 06. 040,
it is so ordered.
V. — 7Oov
a
t —
J
Melnicic, J.
We concur:
W orswick, J.
eanson, C. J.
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