Hansen Ranches, a partnership between Erik and several relatives, has farmed the 09 parcel for as long as Erik can remember. For 30 years, Erik participated in the farming of the 09 parcel, and now he manages the
Sometimes the Hansens would rotate alfalfa or wheat with the cotton. While alfalfa was planted on the property, it would be visible to onlookers. Farming alfalfa often involved the presence of equipment including swathers, bailers, tractors, road graders, and border makers.
The Hansens' farming practices were "[m]ore or less consistent" over the years.
In 2002, the Hansens planted pistachio trees on part of the 09 parcel, to the north of the Disputed Land. In 2010, there was an internal discussion about planting pistachio trees on the remainder of the 09 parcel. In 2011, the Hansen family ordered pistachios trees for that purpose.
In early to mid-2011, Erik told his father he had learned that the owner of the neighboring 05 parcel, Valov
Erik contacted Valov. Valov had a "vague recollection" of the lot line issue
At some point "prior to planting [the pistachio trees] and prior to putting a drip system in" Erik spoke with Larry Richie, an employee of Sandridge. The "outcome" of the conversation "was that we would take care of this [lot line issue] some way, if it didn't get handled prior to closing through Valovs."
Valov's sale to Sandridge closed in December 2012.
Erik finally spoke with Valov again after the sale closed. Erik said he wished they could have fixed the lot line issue before the close of the sale. Valov apologized, said his father was dying and "that he thought it might have created a problem for dealing with his dad's estate."
Sandridge, the Hansens, and their representatives negotiated to potentially resolve the Disputed Land issue. Those negotiations were unsuccessful, and the present litigation commenced.
After a court trial, the superior court denied the Hansens' request for a prescriptive easement but instead granted the Hansens an "equitable interest ... of limited scope and duration ... with the following conditions:"
"1) Hanson [sic ] pay the full fair market value of the unimproved land to Defendant based on a valuation as of the date of trial. The Hirshfield9 court ordered payment of full fair market value even though the interest granted was of limited scope and duration.
"2) Hanson [sic ] may not add to the encroachment, though they may repair the irrigation and filtration system and replace trees that die in the first five years after the initial planting in June 2012[.]
"3) The interest will end should the Hansons [sic ] stop farming the Disputed Property for a period of one year or more, or sell the Disputed Property.
"4) The interest will terminate after the Pistachio trees currently planted are no longer a commercially viable crop. No testimony was offered by the parties on this issue so the court cannot set an exact duration of the easement."
DISCUSSION
I. The Hansens Are Not Entitled to an Equitable Easement
Appellants challenge the court's recognition of an equitable easement in favor of the Hansens. We conclude that the Hansens' encroachment on Sandridge's land was negligent as a matter of law, and
A. Law of Equitable Easements
"For a trial court to exercise its discretion to ... grant an equitable easement, 'three factors must be present. First, the [encroacher] must be innocent. That is, his or her encroachment must not be willful or negligent.
" 'Overarching the analysis is the principle that since the [encroacher] is the trespasser, he or she is the wrongdoer; therefore, "doubtful cases should be decided in favor of the plaintiff." ' [Citations.] Moreover, 'courts approach the issuance of equitable easements with "[a]n abundance of caution." ' " ( Nellie Gail, , supra ,
B. Standard of Review
" 'We defer to the trial court's factual findings so long as they are supported by substantial evidence, and determine whether, under those facts, the court abused its discretion. If there is no evidence to support the court's findings, then an abuse of discretion has occurred.' " ( Nellie Gail, supra,
C. Application
1. The Hansens Negligently Encroached on the 05 Parcel When They Planted the Pistachio Trees and Installed the Irrigation System
The first requisite for an equitable easement is that the trespasser's encroachment " 'must not be willful or negligent.' " ( Nellie Gail, supra,
Here, the trial court found the Hansens' "conduct in planting trees or constructing improvements was not an intentional or negligent encroachment."
In early or mid-2011, Erik's father "explained that there was a discrepancy in the line in what we have been farming." As a result, Erik "knew that ... a lot line adjustment needed to happen," though he did not know "the specifics" of the issue. Nonetheless, the Hansens planted pistachio trees on 160 acres, including the Disputed Land.
Given that Erik knew there was a lot line issue at least by early/mid-2011, it strains credulity that he still did not know the "specifics" of the lot issue by the time the irrigation system was installed in the Spring of 2012. But, we must indulge every inference in favor of the judgment. Under that standard,
However, even accepting Erik's version of events and the favorable inferences arising therefrom, we conclude it was undoubtedly negligent to plant trees on the land without first learning the location of a known, unspecified lot line issue. Indeed, if that conduct does not constitute a negligent encroachment, it is hard to imagine what would. While growers do not have a general duty to survey or otherwise confirm boundaries before planting, it is negligent to plant permanent crops on a swath of land, knowing that some unspecified part of that land is in need of a "lot line
The Hansens insist that " 'innocent' does not mean literally at no fault whatsoever." We agree. And if the Hansens had no reason to doubt they owned all of what they thought was the 09 parcel, it likely would not have been negligent to rely on factors like the purported lack of objection from Valov-or visual cues like the irrigation ditch. But by early to mid-2011, the Hansens did have reason to doubt their prior assumptions were wrong. Nonetheless, they planted the pistachio trees in the area after becoming aware that there was a lot line issue concerning the border between their parcel and Valov's.
The Hansens insist that Erik did not know the lot line issue involved the Disputed Land. That factor suggests the encroachment was not intentional, but it does not settle the issue of negligence. To the contrary, the fact that Erik did not know where the lot line adjustment was needed, is precisely why it was negligent to plant a permanent crop in the area without determining where the correct lot line was located.
In sum, the Hansens' encroachment fails to satisfy the first element of an equitable easement.
Some cases have suggested that an equitable easement may be permitted even where the encroaching party was negligent if the landowner was also negligent. (See Linthicum, supra, 175 Cal.App.4th at pp. 266-267,
Nor does Erik's conversation with Sandridge's employee, Ritchie, raise an inference of negligence by Sandridge. A vague representation that the parties would, together, "take care of this some way" in no way suggests that Sandridge was preemptively acquiescing to the Hansens' subsequent planting of pistachio trees and installation of an irrigation system on Sandridge's property. Moreover, the parties stipulated that "[a]ny use of the Disputed Land by [the Hansens] was done without the permission of Sandridge." In sum, Sandridge's conduct is not analogous to the Christensen landowner, who watched as the encroachment was built "and acquiesced therein." ( Christensen , supra ,
The Hansens cross-appeal with respect to the trial court's refusal to recognize a prescriptive easement. The trial court concluded that "the interest sought here isn't a prescriptive use culminating in an easement, but an adverse possession that seeks to effectively create a change in title." We agree with the trial court in this regard and reject the Hansens' challenge.
Interests in land can take several forms, including "estates" and "easements." ( Civ. Code, §§ 701, 801.) An estate is an ownership interest in land that is, or may become, possessory. (4 Miller & Starr, Cal. Real Estate (4th ed. 2017) § 12:1.) In contrast, an easement is not a type of ownership, but rather an "incorporeal interest in land ... ' "which confers a right upon the owner thereof to some profit, benefit, dominion, or lawful use out of or over the estate of another." ' " ( Guerra v. Packard (1965)
Property interests like estates and easements can be acquired by (1) occupancy; (2) accession; (3) transfer; (4) will; or (5) succession. ( Civ. Code, § 1000.) When title is acquired by occupancy, it is called title by "prescription." ( Civ. Code, § 1007.) The process of acquiring an estate by prescription is called adverse possession. (See Marriage v. Keener (1994)
"There is a difference between a prescriptive use of land culminating in an easement (i.e., an incorporeal interest) and adverse possession which creates a change in title or ownership (i.e., a corporeal interest); the former deals with the use of land, the other with possession ; although the elements of each are similar, the requirements of proof are materially different." ( Raab v. Casper (1975)
"To establish the elements of a prescriptive easement, the claimant must prove use of the property, for the statutory period of five years, which use has been
"In no case shall adverse possession be considered established under the provision of any section of this code, unless it shall be shown that the land has been occupied and claimed for the period of five years continuously, and the party or persons, their predecessors and grantors, have timely paid all state, county, or municipal taxes that have been levied and assessed upon the land for the period of five years during which the land has been occupied and claimed ." ( Code. Civ. Proc., § 325, subd.(b), italics added.)
Conversely, a "prescriptive easement does not require payment of taxes."
Because of the taxes element, it is more difficult to establish adverse possession than a prescriptive easement. The reason for the difference in relative difficulty is that a successful adverse possession claimant obtains ownership of the land (i.e., an estate), while a successful prescriptive easement claimant merely obtains the right to use the land in a particular way (i.e., an easement). ( Mehdizadeh, supra,
Unsurprisingly, claimants have often tried to obtain the fruits of adverse possession under the guise of a prescriptive easement to avoid having to satisfy the tax element. ( Kapner v. Meadowlark Ranch Assn (2004)
To state the above rule is virtually to decide the Hansens' cross-appeal. In their complaint, the Hansens sought a "prescriptive easement" establishing their right to farm the property "to the exclusion of Defendants and all other
The Hansens counter that all easements involve "use of another's property that cannot be interfered with by the owner." But that does not mean that all easements are the practical equivalent of an estate. For example, consider an easement for a road across the property of another. The Hansens observe that such easements necessarily prevent the servient landowner from farming the property under the road, storing material in the roadway, or building a structure on the roadway. But the servient landowner would still be able to drive on the road.
A. Otay Water Dist. v. Beckwith Does Not Alter Our Conclusion
The Hansens contend otherwise, arguing the present case is controlled by Otay Water Dist. v. Beckwith (1991)
In Otay , Kuebler Ranch conveyed certain real property to a water district. Kuebler Ranch inadvertently included in its grant to the water district three parcels it did not own. The water district subsequently built a reservoir, part
In 1972, Beckwith purchased 10 acres adjacent to the reservoir, which included 1.68 acres the water district thought it had acquired from Kuebler Ranch. The water district discovered the problem and sued to quiet title to a prescriptive easement against Beckwith and others in 1989.
The Court of Appeal upheld the water district's prescriptive easement. Beckwith had argued that "since an exclusive easement is tantamount to a fee estate, the only mechanism by which [the water district] could continue exclusive use would be to obtain a fee title" through adverse possession. ( Otay, supra,
We decline to follow Otay .
1. Other Cases Cited by the Hansens Are Inapposite
The Hansens also cite to cases involving express easements. (E.g., Pasadena v. California-Michigan Etc. Co. (1941)
The Hansens also cite to Hirshfield, supra,
Finally, the Hansens cite to cases involving prescriptive non exclusive easements.
2. Conclusion
In sum, an interest in land that is functionally equivalent to ownership may be acquired by adverse possession, but not as a prescriptive easement. The elements of adverse possession were not satisfied here, and the trial court properly rejected the Hansens' claim.
The judgment is reversed. The trial court is directed to enter judgment on the Hansens' complaint in favor of defendants Sandridge Partners, L.P. and Citibank, N.A. Said defendants shall recover costs on appeal.
WE CONCUR:
SMITH, J.
MEEHAN, J.
Notes
Citibank, N.A. (Citibank) is also an appellant and cross-respondent. Citibank's only apparent involvement is that it loaned $5,082,000 for Sandridge's purchase of the 05 parcel, secured with a deed of trust.
The Hansens' brief notes the ditch crosses the Disputed Land. In support, the brief cites a portion of Erik's deposition testimony. But Erik's testimony was that "all" of the ditch is on the "Hansen side" of the property and "runs along" the boundary between the 09 and 05 parcels. This testimony may have been imprecise, as it appears both parties acknowledge the ditch crosses the Disputed Land.
This sentence likely contains a reporter's transcription error.
According to deeds in the record, title was actually held in the name of several trusts, but for convenience we will refer to the prior owners of the 05 parcel as "Valov" or "the Valovs."
Prior to 2010, Erik did not know there was a dispute as to the ownership of the Disputed Land. Erik believed the Disputed Land belonged to the Hansen family.
The parties' briefs and Erik's testimony refer to the situation as a "lot line issue." Given that approximately 10 acres were involved, "lot line issue" is a bit of a euphemism, but we will use it to be consistent with the parties and testimony.
The Hansens also installed a filtration station "probably a month" before the June 2012 planting. Part of the filtration station was on the Disputed Land.
In appellate briefing, the Hansens indicate that the irrigation system was installed after the trees were planted. But Erik testified that he believed the irrigation system was installed in spring of 2012, and the trees were planted thereafter in June 2012.
Hirshfield v. Schwartz (2001)
Earlier cases stated this requirement differently: " '1. Defendant must be innocent-the encroachment must not be the result of defendant's willful act, and perhaps not the result of defendant's negligence.' " (Linthicum v. Butterfield (2009)
At one point, the Hansens appear to argue that the relevant encroachment is the 30 years of farming row or annual crops, rather than the 2012 planting/installation of the pistachio trees/irrigation system. But with respect to the balancing of hardships, the Hansens rely on the "disproportionate hardships" of having to remove the pistachio trees and reconfigure the irrigation system. Thus, it appears the Hansens want to use the 30 years of row or annual crops as the relevant encroachment for certain purposes but the pistachio trees/irrigation system as the relevant encroachment for other purposes. This mix-and-match approach does not work. Only the encroachment of the pistachio trees/irrigation system can conceivably satisfy the equitable easement requirement that "the hardship to the [encroacher] from [ordering removal of the encroachment] 'must be greatly disproportionate to the hardship caused plaintiff by the continuance of the encroachment.' " (Nellie Gail , supra ,
The Hansens also identify relocation of the irrigation ditch as a potential hardship. But if this were the relevant encroachment, the Hansens would only be entitled to, at most, an easement for the irrigation ditch, not the land on which the pistachio trees were planted. That is not the property interest they sought in their complaint.
Granted, 30 years of farming could conceivably be the basis for a prescriptive easement. But the prescriptive easement sought here is improper for the reasons as explained in section II of the Discussion, post .
Because the absence of a single prerequisite precludes an equitable easement, we do not address the parties' contentions as to the other prerequisites. (See Nellie Gail , supra ,
Except "in the rare instance the easement has been separately assessed." (Mehdizadeh , supra ,
Unless the easement excluded the landowner from driving on the road, in which case it would present the same type of concerns raised here.
Several appellate opinions have stopped just short of expressly disagreeing with Otay . Instead, they "limit[ ]" Otay to situations involving public health or safety. (Mehdizadeh , supra ,
The Hansens object to limiting Otay to its facts, but at the same time insist that Silacci and its progeny should be limited to " 'garden variety residential boundary' disputes." While the land use at issue here (i.e., agriculture) does not precisely match Otay , Silacci or Mehdizadeh , we do not find that fact dispositive in determining which cases are instructive.
Hirshfield does suggest in dictum that Silacci and Mehdizadeh "may be overbroad" because (1) prescriptive easements are determined by historical use and (2) exclusive easements exist. (Hirshfield , supra ,
Justice Gomes was part of the panel that heard oral argument in this matter. Unfortunately, he passed away on March 6, 2018. Justice Smith was assigned to this case in his stead. Justice Smith has reviewed the record in this case and has listened to the recording of the oral argument.