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Mountain Properties, Inc. v. Tyler Hill Realty Corp.

In a case involving the use of a lake, 90 percent of which was owned by plaintiff, the court found that defendant had no rights to the use of that portion of the lake, either by virtue of a prescriptive easement or by virtue of the common law of riparian rights as they apply to navigable waters.

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� 1 In this appeal we examine whether appellant, Tyler Hill Realty Company (“Tyler Hill Realty”), has obtained a right to use a portion of a lake owned by appellee, Mountain Properties, Inc. by prescriptive easement, by virtue of the fact that it owns a small portion of the lake or because the lake may be navigable for recreational purposes. We hold that the trial court did not err in finding no such right to use the lake existed. Therefore, we affirm the trial court’s order granting injunctive relief to Mountain Properties, and finding that Tyler Hill Realty is liable to Mountain Properties for $25,000.00.

� 2 The injunctive relief obtained by Mountain Properties arises from Tyler Hill’s use of Laurel Lake for its summer camp. In 1968 Mountain Properties purchased a parcel of property, which included at least 90% of Laurel Lake. The remainder of Laurel Lake is owned by Tyler Hill Realty which obtained its portion in 1991 by way of a deed from its predecessor in interest, Tyler Hill Camp, Inc. Prior to Tyler Hill Realty’s purchase, Tyler Hill Camp had entered into a license agreement dated June 1, 1989 with Mountain Properties. Pursuant to that agreement Tyler Hill Camp was permitted to use Laurel Lake during the summer months from 1989 through 1993 for a fee of $10,000.00 per year. On the same date, June 1, 1989, Tyler Hill Camp and Mountain Properties executed a document entitled “Agreement.” The “Agreement” contains a grant clause conveying any rights, prescriptive or otherwise, held by Tyler Hill Camp in the portion of the lake held by Mountain Properties.

� 3 In 1993 Tyler Hill Realty paid the rental fee of $10,000.00 to Mountain Properties to use the lake. From 1994 through 1996, Tyler Hill Realty forwarded Mountain Properties $10,000.00 each year and continued to use Laurel Lake. In April 1997, Mountain Properties informed Tyler Hill Realty via letter that the fee for use of the lake during 1997 was being raised to $25,000.00. The President of Mountain Properties later told Tyler Hill Realty representative Jay Jacobs that he was expecting the check for $25,000.00 for the 1997 season. Jacobs responded by stating, “I hear you.” Tyler Hill Realty subsequently used the lake during the 1997 season. However, the $25,000.00 rental fee was never paid.

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