Owner to Owner Dispute – Over a Driveway Easement and Boat Slips: 

A recent case perfectly illustrated the importance of carefully reviewing your purchase and sale documents as well as the plat map to make sure you bought what you thought you were buying, and are using the property you actually bought.  In referenced case, two of three lot owners in a subdivision became embroiled in a legal dispute over a driveway easement and boat slip ownership. The case highlights the importance of carefully reviewing property deeds before buying into or selling a property in an association.  

In the case, Lot 2 was the first property to be sold, with an agreement that included a driveway easement over Lot 1 and ownership of Slip A, which had a boat lift. However, when the deed for Lot 2 was recorded, it mistakenly listed Slip C (without a boat lift) instead of Slip A.  Despite the deed’s error, the Lot 2 owner used Slip A, while the owner of Lot 1—who was aware of the mistake—used Slip C.  After Lot 1 was later sold, its new deed explicitly listed Slip A, leading to confusion over which owner had legal rights to the slip.  In addition to the slip error, a dispute also arose over whether the driveway easement allowed Lot 2 to park vehicles on it or if it was strictly for ingress and egress. 

The trial court ruled in favor of Lot 2 on both issues, finding that: 

1. The driveway easement was not limited to ingress and egress, meaning Lot 2 could park on it; and 
2. The deeds should be corrected so that Lot 2 officially owned Slip A instead of Slip C. 

The court also awarded Lot 2 owner costs and attorney fees.  Not surprisingly, Lot  1 appealed the decision. The appellate court issued a mixed ruling, affirming the driveway easement interpretation but reversing the decision on the boat slip ownership.  Specifically, the appeals court held: 

1. That, relative to the driveway easement, Lot 2 retains parking rights on the driveway and Lot 1 may still use the driveway for ingress and egress as long as it does not interfere with Lot 2’s easement rights. 
2. That, relative to the boat slip ownership, the appeals court reversed the trial court and found that Lot 1’s interest in Slip A was superior to that of Lot 2.  Consequently Lot 1 retained ownership of Slip A. 

The appellate court also found that because neither party was the prevailing party on all issues, neither party was entitled to attorney fees. 

Key Takeaways 

This case underscores the critical importance of carefully reviewing property deeds before completing a purchase. Buyers should always verify that their deed accurately reflects the property rights they intend to acquire.  One might think that this is simply a problem between two owners and that the Association does not need to be involved.  The truth is, the Association will likely be dragged into the dispute and needs to understand its rights and duties as well.  Each unit owner will undoubtedly want the board to be on its side, or, at a minimum, to not be against it.  Each unit owner’s attorney will seek discovery from and likely depose at least one or more of the current or past officers or directors.  When the Board learns of an owner-to-owner dispute contact your attorney for advice as to the board’s next steps.  Often, the appropriate solution is to attempt to clarify the facts as quickly as possible and suggest the parties mediate the dispute, unless a specific dispute resolution process exists in your governing documents.  Any settlement will likely cost everyone involved far less than a lawsuit and appeal.  Consequently, if your association has unit owners who are becoming embattled in a dispute, reach out to your attorney for advice on what your association might be able to do to help bring the dispute to a resolution.

If you are a Kaman & Cusimano client and are experiencing any of these issues, do not hesitate to contact us for additional guidance and assistance. If your association is interested in learning more about our services and how we can help, please click the following link: Request for Proposal and type “Owner to Owner disputes” in the subject field.