Daily Development for Tuesday, January 16, 2001

By: Patrick A. Randolph, Jr.
Professor of Law
UMKC School of Law
Of Counsel: Blackwell Sanders Peper Martin
Kansas City, Missouri
prandolph@cctr.umkc.edu

EASEMENTS; SCOPE; MAINTENANCE RESPONSIBILITIES: Under easement to construct a dam and impound waters, the dominant tenant not only has the duty to maintain the dam structure, but also the duty to maintain the water quality in the lake created by the dam for the benefit of neighboring landowners.

Fowler v. Lincoln County Conservation District, 2000 WL 1811570 (Okla.12/12/2000) (Not yet approved for final printing).

The easement provided for a right for the construction, operation, maintenance and inspection: of a dam and for the "permanent storage and temporary detention of any waters that are impounded, stored or detained" by the dam. It also provided that the landowners could use the land at any time, in any manner and for any purposes that did not interfere with the construction, operation, maintenance and inspection of the works of improvement.

The court did not recite any language expressly imposing upon the district the obligation to maintain the dam or the waters it impounded, but it noted that the District conceded that the construction of the dam carried with it the responsibility to maintain the dam and (importantly) that such obligation arose as a matter of contract from the granting of the right to inspect and maintain.

The plaintiffs argued that the contract obligation under the easement went even further, and imposed upon the District the obligation to maintain the quality of the water. It alleged that the failure of the District to monitor the quality of the water resulted in the development in the water of a dangerous algae that proved fatal to livestock who drank water from the lake and rendered the lake unsafe for recreational activities.

The court ruled that the trial court had discretion to conclude that the easement agreement was ambiguous as to whether the contractual undertaking of the District included the obligation to maintain the water quality and to permit the jury to evaluate parole evidence as to the meaning of the contract in that regard. Comment 1: The District clearly had the responsibility, as owner of the dam, to maintain it so as not to cause damage to those nearby. This responsibility arose on the basis of owner's liability for personal injury and on the basis of nuisance law with respect to injury to the use and enjoyment of neighboring land. The editor sees no reason to conclude that the creation of a right to maintain a dam structure imposes any contractual responsibility to maintain it so that neighboring owners can enjoy the benefits of the lake that is created.

Let us assume, for instance, that the district concludes that it no longer wishes to invest in the dam, since flood control is being adequately carried out through other devices developed after the dam was built. Does it have the obligation to keep the dam in perfect condition so that the lake behind it remains the same size? Does it have an obligation to keep the dam looking beautiful so that the neighbors don't have to look at an algae covered piece of concrete? Must it remove graffiti?  A contractual duty to maintain would suggest that there is some affirmative duty of maintenance that the contracting parties had in mind at the time the easement was created. The editor submits that, based upon what the court tells us here there was no such understanding.

Comment 2: A related question is the standing of the neighboring landowners to demand that the District carry out its maintenance program. They had the right to use the land in any manner that did not interfere with the "construction, operation, maintenance and inspection"of the dam.   This probably did give them the right to use the water impounded by the dam to water their livestock. But why does it give them a guarantee that the District will provide a lake suitable for drinking by their livestock? Why not impose the duty of water monitoring on the landowners? Or at least say that the landowners water the stock at their own risk, just as they would if the lake was a natural water source.

Comment 3: Unless the easement agreement contained other more specific language that the court (incredibly) did not include, this opinion establishes dangerous precedent that could spill over into many other easement settings. As a general principle, where servient owners find useful applications of public works constructed on easement property, do they then derive a permanent right to insist that the public support those rights? Maybe in Oklahoma.

Comment 4: John Hastie, of the Oklahoma Bar, who contributed the information of this case, adds the following comment: "In light of this case, one wonders if a simple modification of the terms of the easement limiting the obligations of the District to the maintenance of the dam will hereafter be sufficient. If the court recognizes the impact of the polluted water to be the responsibility of a governmental action, an argument argument can be made that a taking arises at the time the pollution occurs and the measure of value 9or damages) might be the lost use of the recreational reservoir. . . it might not be difficult to create a case in which the District will be held liable for failure to maintain the "ole swimming hole" developed with taxpayer funds.

Readers are urged to respond, comment, and argue with the daily development or the editor's comments about it.

Items in the Daily Development section generally are extracted from the Quarterly Report on Developments in Real Estate Law, published by the ABA Section on Real Property, Probate & Trust Law. Subscriptions to the Quarterly Report are available to Section members only. The cost is nominal. For the last six years, these Reports have been collated, updated, indexed and bound into an Annual Survey of Developments in Real Estate Law, volumes 1‑6, published by the ABA Press. The Annual Survey volumes are available for sale to the public. For the Report or the Survey, contact Maria Tabor at the ABA. (312) 988 5590 or mtabor@staff.abanet.org

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