DA 25-0739
Mont.Jul 7, 2026Background
- The dispute concerns a non-subdividable 38.2-acre Parent Tract in Flathead County that was subject to a 1992 long-term lease with an option-to-purchase clause in Section 5. 1
- Section 5 of the 1992 Lease contained two paragraphs: a fee-simple purchase option and a separate contingency option to purchase a tenancy-in-common interest if subdivision remained unavailable. 2
- In 2018, the Britts acquired the leasehold, and the Second Lease Amendment stated, 'Paragraph 5. Option to purchase' was removed. 3
- The Second Lease Amendment also stated the assignees had 'paid in full' for the 6.325-acre tract and did not need to purchase it, and a 2020 Third Amendment expanded the leasehold to 10.325 acres. 4
- After the Tumas bought the Parent Tract, they sued, and the Britts counterclaimed for a declaration that their tenancy-in-common right had vested and been paid in full. 5
- The district court granted partial summary judgment to the Britts, found the amendment ambiguous, considered extrinsic evidence, and ordered the Tumas to convey a 27.5% tenancy-in-common interest. 6
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the Second Lease Amendment ambiguous? 7 | Tumas: it unambiguously removed all of Section 5. | Britts: it removed only the first paragraph's fee purchase option. | Ambiguous; reasonably supports both readings. 8 |
| Could extrinsic evidence show the parties preserved the tenancy-in-common option? 9 | Tumas: parol evidence barred and Amendment eliminated the option. | Britts: ambiguity allowed evidence showing the option remained. | Yes; extrinsic evidence properly showed the option survived. 10 |
| Did Don Hostak's deposition create a factual dispute? 11 | Tumas: his deposition contradicted the Joint Declaration. | Britts: it showed only memory lapses, not contradiction. | No; deposition did not create a genuine factual dispute. 12 |
Key Cases Cited
- BMK Enters. v. Bailey Enters. of Mont., LLC, 589 P.3d 620 (Mont. 2026) (summary judgment and contract ambiguity principles 13)
- Mary J. Baker Revocable Tr. v. Cenex Harvest States, Coops., Inc., 164 P.3d 851 (Mont. 2007) (unambiguous contracts are enforced as written; ambiguity permits intent evidence 14)
- AWIN Real Estate, LLC v. Whitehead Homes, Inc., 472 P.3d 165 (Mont. 2020) (ambiguous contract intent may be resolved on summary judgment when extrinsic evidence is undisputed 15)
- Richards v. JTL Grp., Inc., 212 P.3d 264 (Mont. 2009) (clear contract language must be applied as written 16)
- K&R P'ship v. City of Whitefish, 189 P.3d 593 (Mont. 2008) (courts consider extrinsic evidence to ascertain intent from ambiguous text 17)
- Olson v. Jude, 73 P.3d 809 (Mont. 2003) (extrinsic evidence may be used when a written instrument is ambiguous 18)
- Becker v. Rosebud Operating Servs., 191 P.3d 435 (Mont. 2008) (memory lapses or speculative assertions do not defeat summary judgment 19)
- Stott v. Fox, 805 P.2d 1305 (Mont. 1990) (nonmovant must present material and substantial evidence, not conjecture 20)
