Haik v. Sandy City

254 P.3d 171 (2011)

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Nature of the Case

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Facts

P and D hold deeds to the same water right. D's chain of title is relatively straightforward. In 1974, Harold Bentley conveyed certain property, to which the disputed water right is appurtenant, to Saunders-Sweeney, Inc. About two years later, both Mr. Bentley and Saunders-Sweeney, as grantors, each signed quitclaim deeds that named D as grantee of the water right. Shortly thereafter, Mr. Bentley, Saunders-Sweeney, and the mayor of D signed an 'Agreement of Sale' for the water right. The Agreement of Sale was recorded on January 14, 1977, in the Salt Lake County Recorder's Office. D thereafter received a quitclaim deed conveying the water right, but that deed was not recorded. It was simply kept in a separate file in the Sandy City Recorder's Office. In 1978, Saunders-Sweeney designated the property to which the water right is appurtenant as Lot 31 of the Little Cottonwood Subdivision. That same year, Saunders-Sweeney conveyed Lot 31 to Judith Saunders. The deed was recorded. Lot 31 was subsequently conveyed, through intermediate owners, to Lynn Biddulph in 1983. The water right was not reserved in any of these conveyances. In 1999, Saunders-Sweeney separately conveyed 'all of its right, title and interest' in the water right to Ms. Biddulph by quitclaim deed, which was recorded. Shortly thereafter, Ms. Biddulph filed an application with the Utah State Engineer for a permanent change of water, which was approved. In response to the change application, D wrote a letter to the State Engineer expressing concern 'if any activity to expand or further change the water right were to take place,' but D did not claim ownership of the water right or otherwise contest Ms. Biddulph's ownership of the water right. Ms. Biddulph then expended money and effort to maintain the water right and related facilities. In 2003, Ms. Biddulph conveyed the water right by quitclaim deed to LWC, L.L.C. Shortly thereafter, LWC conveyed the water right by quitclaim deed to Kevin Tolton (one of the Haik Parties). In October 2003, Kevin Tolton then conveyed the water right by quitclaim deed to P as tenants in common. P recorded the deed on December 10, 2003. Ps filed an action to quiet title to the water right. Both parties moved for summary judgment. The district court granted P's motion for summary judgment and denied D's cross-motion for summary judgment. This appeal resulted.