SCHRECKENDGUST v FLORENCE BAPTIST

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No. 96-325 IN THE SUPREME COURT OF THE STATE OF MONTANA 1997 CLYDE SCHRECKENDGUST, Plaintiff JR., and Appellant, v. FLORENCE BAPTIST CHURCH, INC., Defendant APPEAL FROM: and Respondent. District Court of the In and for the County The Honorable Jeffrey Twenty-First of Ravalli, H. Langton, Judicial Judge District, presiding. COUNSEL OF RECORD: For Appellant: Dirk A. Williams, For Williams; Missoula, Church, Harris, Montana & Respondent: David Rodli; Montana David Rodli Submitted Law Offices, on Briefs: Decided: Filed: Johnson Missoula, January January 16, 30, 1997 1997 Justice Karla M. Gray delivered Pursuant 1995 to Internal Operating cited Section as precedent document with result to Paragraph Rules, Clerk State Opinion I, the and shall the the of Reporter 3 (c), Court. Supreme decision shall by its Supreme Court Publishing the Montana following be published the of filing Court not as a public and by a report Company and be West of its Publishing Company. Clyde Schreckendgust, entered by the County, on its by Florence order determining establishing regard that to warranty its the Church, issue on appeal no genuine for is issue with the Ravalli judgment We reverse the met of its material filed and remand. initial use judgment Court, whether Church the summary (Church). the from District motion Inc. that compliance appeals Judicial granting Baptist in (Clyde) Twenty-First The dispositive erred Jr. District fact Court burden of existed with in 1977 restriction the deed. FACTUAL BACKGROUND In 1975, Bible In land (Parcel use of to the and April A) the Parcel Clyde conveyed same subdivision held that year, in the Florence Church worship of Church, home. County, Ken Cox founded Church A to via services Clyde to one-acre the in conveyed Orchard a special noncommercial another known then the deed which purposes. parcel of 2 basement a one-acre church via Florence of his parcel of Homes subdivision, warranty Church as the a land warranty Ravalli limited One year (Parcel deed B) the later, in the devoid of limitation. The Christian Church Academy, and began Church subsequently Parcels A and B. the deeds In to (the that time, school with twelfth acre of Clyde Later, the which described and Academy the real 1976. The building on A and B under in case. this thirteen B. acres per of land Clyde. At week, Christian kindergarten The through Church wanted to an athletic field on the 13- church facility into an on Parcels offer 13-acre via in A and B from existing the Florence Parcels from A and Church's he conveyed of issue students the school a five-day building the Christian deed) its school and Parcels Parcels convert Florence to sanctuary declined however, at as classes to purchase 140 on church and extension the (K-12) parcel not was conducting approximately a larger academic and use offered adjacent known sanctuary are Church Church grade build parcels parcel) the a The ownership the 13-acre a school, holding built those 1977, opened A and B. to purchase parcel to a warranty property deed the the land. Church (1977 and warranty as follows: Thirty-one (31) and Thirty-two (32), Lots Thi .rty (30), Florence Orchard Homes, a platted subdivision of Ravalli County, Montana, LESS Parcel A and Parcel B located in said Lot 30, Certificate of Survey No. 836 which were previously conveyed; so long as said lands are used for and Christian church pUrpOSeS, that is school Fundamental, Bible believing, meeting the adademic [sic] requirements of Christian Education; grades K-12 and beyond, [sic] If this discontinues the property conveyed shall revert back to original owner or assigners [sic]. [Emphasis added.] As noted above, Church. The Parcels first A and B had portion of the 3 already quoted been limitation conveyed in to the the 1977 warranty deed second portion The Parcels referred as the Church held however, tuition to the large years, only enrolled at 1989-1990 students were After year, enrolled the per a four-day week, elementary C:.yde met with time, to at Gary discuss Church's intentions a:ifidavit that a school in Church the 1!>94--has been contact he the would unless school his begin the by the students A and B. were During through Church taught third the grade continued to offer by a state-certified on Parcels A and B. In 1991, the of the 1977 warranty deed and the its school. Randall stated in his church's the Randall, 5, 1994, end of August, of 4 one the in semester apparently when he advised on the a traditional 1994. 1991, time. Clyde proceedings operating of to have a post-secondary exception that intent August Institute, since with "foreclosure" In Bible classes July continuing property." Baptist 1991 meeting was grade 1988-89 at the conducting Church and pay pastor on the until not Church's which--with Church could was the regarding program, Enrollment (Randall), language Florence the class school he "expressed education After year, on school. its operation began the Randall the first kindergarten kindergarten teacher the located 1987-1988 on Parcels school 1989-1990 school year. the and only at restriction; many parents During school its school because kindergarten academic use at 1985-1986 part Church's the classes charged. academic the as clause. academic in being below reversionary A and B through l:.mited, the is The Church did Randall 13-acre on-premises did not comply not that parcel K-12 with Clyde's demand Florence by Christian apparently in Christian FCABSA and those in late in "home resources, with conclusion at the a of school for diploma to the the Church has held classes, adult inception, school Bible and also provides and of numerous ceremony the worship and teen the At is held FCAHSA receive Academy. traditional studies to certification. an award Christian Church belong building graduates Florence membership The It school the Accelerated 1995. who quarter, FCAHSA students; from its of guidance academic 1994; of the children. the found (FCABSA), in families curricula, each July their access materials, membership supervising school" however, Association January approved who did, School for FCABSA, families Home program was the It and applied Education administers deadline. Academy 1994, application the the Since services, group its Sunday activities. PROCEDURAL HISTORY Clyde seeking basis filed to quiet that contained an action title the in to Church the 1977 from comply with demand The regularly classes restriction the to contained Church in his name on the with the use restriction comply deed. admitted parcel that, weekdays," in He also based on November sought on 1, to 1994, have its refusal not the to "currently vacate. on-premises during parcel 13-acre responded conduct school while Church the Church to warranty ejected the 13-acre the failed Church his against the that although private it 1977 it 5 it elementary was in and compliance warranty had did refused deed. Clyde's with In secondary the use addition, demand to vacate the Finally, 13-acre the Church satisfaction, Church that for "school the 1977 to the use clear quiet that First his orally years in to the Church 13-acre filed title action law contained to maintain an on-premises on the in fact material via the the in First District terminology additional terms in the argued that the 1977 when Clyde gave the an that exercise for summary was purely on-premises Clyde's of the K-12 attempt to reversionary basis the that the 1977 warranty K-12 academic regarding plain the least years 6 to judgment deed required that fourteen without language school and that Church's the contending action entitlement he maintained at judgment, a contract He asserted existed Alternatively, and usage that prohibited operating for implications. restriction custom parcel was contained contended 1991 maintained a cross-motion Amendment be use by lathes. of comply. to the its and religious in on requiring which Church modified which the quiet of doctrine and regarding restriction Constitution the as a matter issue also accord judgment existed purposes" addition, was proper. of summary regarding was was barred Clyde States refusal limitations. fact any ambiguity Finally, clause for In five title of of material church resolve deed school. moved The Church United restriction. warranty statute church deed. its defenses and unambiguous interpreting to that affirmative and the and Christian from Church the issues the warranty Amendment alleged subsequently with in order pled no genuine compliance Court it estoppel, The basis parcel, of the use Church no genuine failure parties' was that the to intent, the Church must ttoperatel' comply with The an on-premises the use District judgment Court genuine that issues use restriction failed to granted Clyde's the of The District school in Church's motion for had material in Among other established fact a genuine Court the cross-motion. Church contained raise academic order to restriction. and denied determined K-12 the regarding the its of subsequently absence deed material entered things, fact any with the and that in that in judgment it of compliance 1977 warranty issue summary Clyde regard. favor of the Church. Thereafter, which Clyde denied was deemed filed a motion to by operation of alter or amend Clyde law. judgment appealed. DISCUSSION Did the District Court err in determining that the Church met its initial burden of establishing that no genuine issue of material fact existed with regard to its compliance with the use restriction in the 1977 warranty deed? Summary fact exist of law. or and the denial Rule Hall entitlement 759 (citation party is entitled We review judgment criteria used the 926 The absence judgment omitted). P.2d moving of 756, party where by that court's the of of law. court. the moving 1117 burden of fact and 926 P.2d material party the Carelli 1116, initial Carelli, grant applying 53 St.Rep. has materia as a matter de nova, issues genuine as a matter Only 759, of judgment a district summary 1996), issues to for omitted). to when no genuine M.R.Civ.P., (Mont. establishing proper M.R.Civ.P. a motion 56(c), (citation is moving 56(c), of same Rule v. judgment at satisfies its initial burden judgment fact. to 926 P.2d Court made to constitute and the Church's on the attempt to Clyde's quiet parties use title Court describe whether in on the 13-acre followed the parties' this activities lead and assuming that any church related the 13-acre to reversionary activity argues correct purposes, They also A and B to which the use issue apply and that, if parcel. In It is it grouping all his clear why however, failing taking and not any event, by would the to place carefully on Parcels appears that the A court the property together anywhere activities the on "the property" use restriction and the clause. The problem any in often right are parcel, the on Parcels indeed, in parcel, property." confusion parcel; 13-acre activities manner. certain and B or this both and often reversionary 13-acre joined to those the the material parcel at in District the 13-acre of of Church activities to proceeded the restriction, exercise issue summary omitted). "the clause the opposing interchangeably, B and that meet both and on reversionary activities defeat A and party (citation refer activities activities restriction such Court the a genuine Clyde to assume to 759-60 by Parcels referring apparently shift raising at and this aggregate, simply burden evidence arguments District the the present Carelli, The the does in at his is all opening interpretation the that record by the record the Church brief on of the does not before on the appeal use support 8 us does 13-acre that, restriction any church not establish parcel. Clyde regardless relating use of of to the the school 13-acre parcel for responds the any--even that 13-acre land tangential--school Ken Cox's parcel July "is was donated 21, Ken Cox's 1995, used--as by Clyde--as affidavit purpose. it has been an athletic Church establishes affidavit The that since 1977 when the field." states: Upon the initial two acres [Parcels A and B] was 5) situated the church and school. It was the desire of the church board to purchase from Mr. Schreckendgust the adjacent 13 acres in order to build a larger church sanctuary and an athletic field, converting the existing church building on the initial two acres into an extension of the already established school. The church board desired nothing more than to expand the ministry already started. Approximately in May, 1977, the church elders of 6) Florence Bible Church, including Affiant, invited Mr. Schreckendgust to the church to show him a threedimensional model of the proposed expansion project which would include a large church sanctuary and an athletic field for the 13 adjacent acres owned by Mr. Schreckendgust. No other buildings or representations were made on the three-dimensional model. No school buildings were shown on the model or proposed verbally or otherwise for the 13 acres. While the affidavit regarding use of either the parcel after Nor reflects the 13-acre existence Clyde does any the parcel, or the use of deeded other Church's it to it desires clearly an athletic the affidavit field or exhibit ever made use of the 13-acre Davis, the Church's senior pastor from parsonage" 1989, for not state The Church's his on which brief talks about own personal parcel the supporting a gentleman use. 13-acre that October of 1987 using "the bus the and parsonage summary 9 on the The affidavit However, bus barn its establish establish parcel. of not intent Church. Church September does and judgment the of Mark through barn affidavit and does were located. motion in the District Court drain field, does not were on discusses and renovations establish the attorney that 13-acre wrote purchasing the The Church Church that conceded Bible the were conducted do not home school suggests of material in the not were the It While the of kindergarten that may be true, kindergarten classes, awards ceremonies parcel. Indeed, the record those activities take place in fact on Parcels Church 1977 warranty deed, strongly the Church genuine issues A and B. can establish regarding school Fundamental, 13-acre of the contends home all the met also the home school K-12 Christian, Christian, respectively. or the judgment school and that substantial on-premises requirements establish conditional summary education. are 30, elaborate. that Church Lots the for kindergarten of to academic administration located Before of conducting and Church's in on the that buildings been by the lands full-time, Christian education, concessions the the the conceded, and the and meet and home school those of offered believing Clyde brief possibility letter, does had that classes but believing" requirements education land, that Bible academic he subject that the the of the and and renovations 1987, exploring in earlier and of been the on the Church "Fundamental Clyde, refers, the improvements January system Again, conveyance contends that the to have previously placed purposes, In as a septic property." referenced parcel. He improvements the "unconditional conveyance." such on "the a letter 31 and 32 which school improvements, its it the compliance must 10 absence with establish--at of the use restriction a minimum--that it makes use of has not done determining summary use so. judgment or the restriction of and, to the judgment are appropriate, we conclusion in the parcel for We hold question, portions the that for reason, Church. do District The not District reached, warranty further erred having the with deed opinion Court's purposes. Court also court address it pending and school that 1977 the vacated church regard is and erred in erred legal in granting on this analysis to it whether the ambiguous; order consideration, It those on summary as may be on remand. Reversed this 13-acre otherwise threshold applied, the and remanded for further opinion. We concur: Justices / 11 proceedings consistent with

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