Opinion

Visitacion Investment v. 424 Jessie Historic Properties

Court
California Court of Appeal
Filed
Jun 28, 2023
Status
Published
Cited by
0 cases
Authority
More cited than 23.6%

The opinion

Filed 6/27/23

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION TWO

VISITACION INVESTMENT,

LLC,

Plaintiff, Cross-

defendant and Appellant,

A163550

v.

424 JESSIE HISTORIC (San Francisco

PROPERTIES, LLC, Super. Ct. No. CGC-19579667)

Defendant, Cross-

complainant and Respondent.

Appellant Visitacion Investment, LLC (Visitacion) owns a large plot of

land in San Francisco. A portion of the land is subject to an easement

reserved when a railroad sold that portion to Visitacion’s predecessor-in-

interest. The dominant tenement of the easement, a plot of land adjacent to

Visitacion’s property, is now owned by respondent 424 Jessie Historic

Properties, LLC (JHP). In preparing to develop its property, Visitacion

brought this action to quiet title to the easement on grounds of abandonment.

Visitacion and JHP filed cross-motions for summary judgment. The

trial court found no material triable issues of fact and rendered judgment in

favor of JHP, holding there had been no abandonment as a matter of law.

1

Concluding that disputed issues of fact preclude any definitive finding on the

issue of abandonment, we reverse the grant of summary judgment to JHP.1

BACKGROUND

I.

General Factual Background

Visitacion owns a plot of land in the Visitacion Valley neighborhood of

San Francisco (Visitacion property). A portion of the Visitacion property

(servient parcel) was formerly owned by the Southern Pacific Transportation

Company (Southern Pacific). The servient parcel was bounded on the east by

the right-of-way for a series of mainline railroad tracks that are still in active

use.

When Southern Pacific conveyed the servient parcel to Visitacion’s

predecessor-in-interest in 1990, Southern Pacific was conducting railroad-

related business operations on a parcel across the northern border of the

servient parcel. In support of these operations, the deed of conveyance

reserved an easement with respect to several separately described portions of

the servient parcel (the easement). As relevant here, the easement

encumbered a strip of land curving diagonally across the servient parcel from

its northeast corner, which was bordered to the north by the Southern Pacific

parcel and to the east by the railroad right-of-way. Southern Pacific’s parcel

became the dominant tenement of the easement.2

1 Visitacion does not appear to appeal the trial court’s denial of its own

motion for summary judgment. We nonetheless briefly address the issue and

find no error in the denial.

2 An easement is an incorporeal interest in the land of another that

gives its owner the right to use another’s property. The land to which the

easement attaches is called the dominant tenement; the land on which the

burden is imposed is called the servient tenement. (Tract Development

Services, Inc. v. Kepler (1988) 199 Cal.App.3d 1374, 1384.)

2

Southern Pacific merged with the Union Pacific Railroad (Union

Pacific) in 1997. At some point, railroad activities on the dominant tenement

ceased, although the date of cessation is unclear from the appellate record.

In 2015, Union Pacific sold the dominant tenement and an adjacent parcel

(together, JHP property) to the predecessor-in-interest of JHP.3 As part of

the sale, Union Pacific expressly conveyed to JHP its rights under the

easement in the diagonal strip described above, although the deed contained

no warranty regarding the continued existence of such rights.

Visitacion is planning a large, mixed-use residential development on

the Visitacion property. As part of that development, Visitacion hopes to use

the portion of its land that was encumbered by the easement. To that end,

Visitacion brought this quiet title action against JHP, alleging that the

easement has been extinguished under the doctrine of abandonment. JHP

responded with a cross-complaint, denying abandonment and seeking to

establish its “full and complete legal and equitable ownership of

the . . . easements.”

Following discovery, the parties filed cross-motions for summary

judgment on the issue of abandonment.

II.

Evidence of Abandonment

Visitacion’s claim of abandonment is premised on the cessation of

railroad activities on the JHP property and its sale to JHP, a real estate

development company with no proven intent to use the easement for railroad

purposes.

3JHP’s predecessor-in-interest, Patrick McNerney, is still involved

with JHP’s activities. For convenience, we will hereafter refer to McNerney

and JHP jointly as “JHP.”

3

In relevant part, the easement, as set forth in the deed by which

Southern Pacific conveyed the Visitation property to Visitation’s predecessor,

was described as follows, with critical language bolded:

“FORM OF RAILROAD EASEMENT

“Grantor excepts from the Property hereby conveyed and reserves unto

itself, its successors and assigns:

“A perpetual, exclusive easement in, on, under, over and through the

locations described in Schedule l (Railroad Main Line Easement), Schedule 2

(Drill & Spur Track Easement), and Schedule 3 (Access Roadway Easement)

attached hereto, in which areas Grantor . . . shall have the right to

own, operate, maintain, repair, lease, license, and/or remove existing

and/or future railroad, rail and railroad related equipment and

facilities and communications lines and facilities of every kind and

nature including but not limited to all existing facilities, telephone,

telegraph, television and fiber optic lines and related equipment. . . .

Upon abandonment or termination of the easement, or any portion thereof,

Grantor shall be obligated to execute and deliver to Grantee or its successors

and assigns an instrument in form and substance satisfactory to Grantee, or

its successors and assigns, relinquishing the easement described in this

paragraph.” (Bolding added.)

The three schedules referred to in the easement deed describe seven

separate encumbered parcels, two referred to as “Main Line Easement,” three

referred to as “Drill & Spur Track Easement,” and two referred to as “Access

Roadway Easement.”

The quitclaim deed by which Union Pacific conveyed the JHP property

included the easement rights to four of the seven parcels described in the

original deed schedules: one of the main line parcels, designated in the

4

quitclaim deed as the “signal cabinet area,” two of the drill & spur track

parcels, and one of the access roadway parcels. Easements over the parcels

relating to operation of the mainline right-of-way were not included in the

rights conveyed to JHP. To the contrary, the quitclaim deed required JHP to

construct a fence preventing access to the railroad right of way.

Visitacion provided little information about the easement’s use over the

more than 30 years since its creation, perhaps because such information is no

longer available. Because a portion of the Visitacion property formerly

hosted a factory, Visitacion reasonably speculates that a spur track in the

easement could have served the factory, connecting it to the mainline tracks

that run to the east.

The tracks and other rail-related equipment in the easement were

removed no later than 2008.4 Although the easement permitted its use for

communications equipment, there were no records indicating that Southern

Pacific or Union Pacific had ever placed such equipment in the easement. By

the time of this litigation, there was no railroad or communications

equipment in the easement.

Union Pacific sold the JHP property only after determining that the

property qualified as “excess property,” meaning that Union Pacific no longer

used it for “operating railroad purposes.” Further, prior to the sale, Union

Pacific conducted a “very formal and extensive” internal review confirming

that none of a dozen different Union Pacific departments had a further use

for the JHP property or the easement. At the time of the sale, Union Pacific

4 Although the record leaves the date of removal uncertain, a

Visitacion declarant stated that “since I first visited the [servient parcel] in

2008 I have not seen any rail or railroad related equipment or facilities in the

Easements,” except for “two or three” deteriorated sheds that were later

removed.

5

understood that JHP intended to use the JHP property for residential or

commercial development. JHP and Union Pacific discussed use of the

easement for vehicular and pedestrian access to the JHP property, rather

than for railroad-related activities. JHP has since submitted a proposal to

the City of San Francisco for the construction of two new residential

buildings on the JHP property.

III.

JHP’s Evidence

JHP argued that the easement had not been abandoned because it

continues to allow vehicular and pedestrian access to the JHP property and

can be used for the installation of communications equipment or for activities

associated with the active mainline rail service on its eastern boundary.

Without denying its exploration of the construction of buildings on the

JHP property, JHP provided evidence that the JHP property is zoned to allow

a variety of activities authorized under the easement, including activities

associated with the mainline tracks or other “freight storage or transfer,

loading and unloading of rail cars, and railroad maintenance, construction or

repair” and a data center or other telecommunication facilities. Since JHP

acquired the property, it has licensed its temporary use to a railroad

maintenance and construction contractor working on a railroad electrification

project for CalTrain. Further, JHP argued, use of the easement for an access

roadway and the installation of communications lines will be necessary for

any future development on the JHP property. Because, JHP contended, such

uses are authorized under the easement, it cannot be found to have been

abandoned.

6

IV.

The Trial Court’s Ruling

The trial court denied Visitacion’s motion for summary judgment and

granted JHP’s motion. In granting judgment, the trial court was persuaded

that the scope of the easement extends beyond railroad-related activities,

citing the broad language relating to communications equipment and the

testimony of a former Southern Pacific employee that the company’s business

at one time included the installation of commercial fiber optic cables in some

of its railroad rights-of-way. The court rejected Visitacion’s claim that Union

Pacific’s conduct evidenced an intent to abandon the easement, relying on

evidence that (1) the railroad “actively marketed the [JHP] property,” (2) JHP

had entered into agreements with Visitacion in 2016 and the construction

company in 2019 granting access to the JHP property, and (3) the JHP

property would be “effectively landlocked” without access over the easement.

DISCUSSION

As explained below, we conclude that the trial court erred in granting

summary judgment to JHP for three independent reasons. First, resolution

of this matter will likely turn on the interpretation of the easement deed.

Although that interpretation is ultimately an issue of law for the court, the

trial court erred in construing the easement in the context of the summary

judgment motions, given the ambiguity in the language of the deed and the

conflicting evidence regarding the context and use of the easement. Second,

the evidence submitted by Visitacion could, if accepted by the trier of fact,

support a finding of abandonment, notwithstanding the contrary evidence

submitted by JHP. It therefore creates triable issues of fact that preclude

summary judgment. Finally, the trial court’s finding that, as a matter of law,

7

Union Pacific did not intend to abandon the easement was based on a

misunderstanding of the law governing such intent.5

I.

Governing Law

A. Abandonment

Abandonment of an easement created by grant, as here, requires proof

of (1) the cessation of use of the easement by the owner of the dominant

tenement and (2) “ ‘ “unequivocal and decisive acts on the part of the

[dominant tenant], clearly showing an intention to abandon.” ’ ” (Gerhard v.

Stephens (1968) 68 Cal.2d 864, 890 (Gerhard); Smith v. Worn (1892) 93 Cal.

206, 212.)6 An easement that is found to be abandoned “does not ‘revert’ to

the grantor[;] it is simply extinguished.” (Concord & Bay Point Land Co. v.

City of Concord (1991) 229 Cal.App.3d 289, 295.)

Abandonment, and in particular the intent to abandon, are issues of

fact. (People v. Ocean Shore Railroad, Inc. (1948) 32 Cal.2d 406, 417;

Buechner v. Jonas (1964) 228 Cal.App.2d 127, 131.) With respect to this

inquiry, California has adopted the view of the original Restatement of

5 The parties raise several arguments that we find unnecessary to

address, such as the trial court’s rulings on Visitacion’s objections to the

admission of the deposition testimony of Union Pacific’s designated corporate

representative. We decline to address these issues because triable issues of

fact would preclude summary judgment, regardless of the correctness of the

trial court’s rulings. We do not mean to express an opinion about any issues

other than those expressly addressed below.

6 Some older decisions hold that a finding of abandonment also

requires proof of acts taken by the owner of the servient tenement in reliance

on the abandonment. (E.g., Smith v. Worn, supra, 93 Cal. at p. 212.) More

recent decisions have persuasively rejected that element. (See Gerhard,

supra, 68 Cal.2d at p. 890 [not mentioning reliance element]; Lake Merced

Golf & Country Club v. Ocean Shore R.R. Co. (1962) 206 Cal.App.2d 421,

436–437 [explaining rejection of reliance element].)

8

Property that “ ‘[t]he intention required in the abandonment of an easement

is the intention not to make in the future the uses authorized by it. The

benefit of an easement lies in the privilege of use of the land subject to it.

There is no abandonment unless there is a giving up of that use.’ ” (Faus v.

City of Los Angeles (1967) 67 Cal.2d 350, 363 (Faus); see similarly Tract

Development Services, Inc. v. Kepler, supra, 199 Cal.App.3d at p. 1385

[“Abandonment hinges upon the intent of the owner to forego all future

conforming uses of the property”]; Ocean Shore, at p. 418 [trier of fact must

“determine whether there was a bona fide intent to preserve the right of

way for actual railroad use”].) Although mere nonuse is insufficient to

demonstrate an intent to abandon, a long period of nonuse may be considered

as evidence of the necessary intent. (Gerhard, supra, 68 Cal.2d at p. 891.)

In determining the “conforming” or “authorized” uses of an easement,

the touchstone is the language of the document creating the easement.7 (Civ.

Code, § 806 [“The extent of a servitude is determined by the terms of the

grant”].) “Deeds are interpreted in the same manner as contracts. [Citation.]

. . . In interpreting a deed, our primary objective is to determine and carry

out the intent of the parties by looking at the deed’s plain language, ‘as

construed in light of any extrinsic evidence which may prove a meaning [of]

which the language of the instrument is reasonably susceptible.’ ” (Pear v.

City and County of San Francisco (2021) 67 Cal.App.5th 61, 70.) In

determining the uses permitted by an easement, the court must also consider

the “ ‘purpose and character’ ” of the easement (Langazo v. San Joaquin

7Civil Code section 806 refers to an easement created by grant, but the

same rule applies to an easement created by reservation. (City of Los Angeles

v. Howard (1966) 244 Cal.App.2d 538, 542.)

9

Light & Power Corp. (1939) 32 Cal.App.2d 678, 686 and its historic use (see

Atchison, T. & S.F. Ry. Co. v. Abar (1969) 275 Cal.App.2d 456, 465 (Abar)).

The terms of the easement constrain the uses permitted to the

dominant tenement. “ ‘Where the easement is founded upon a grant . . . only

those interests expressed in the grant and those necessarily incident thereto

pass from the owner of the fee.’ ” (Rye v. Tahoe Truckee Sierra Disposal Co.,

Inc. (2013) 222 Cal.App.4th 84, 92 (Rye).) “[I]t is well settled that ‘both

parties have the right to insist that so long as the easement is enjoyed it shall

remain substantially the same as it was at the time the right accrued,

entirely regardless of the question as to the relative benefit and damage that

would ensue to the parties by reason of a change in the mode and manner of

its enjoyment.’ ” (Whalen v. Ruiz (1953) 40 Cal.2d 294, 302.)

B. Summary Judgment

“The standard pursuant to which we review an appeal from an entry of

summary judgment is well established. We summarized it in Nazir v. United

Airlines Inc. (2009) 178 Cal.App.4th 243 (Nazir), as follows:

“ ‘Code of Civil Procedure section 437c, subdivision (c) provides that

summary judgment is properly granted when there is no triable issue of

material fact and the moving party is entitled to judgment as a matter of law.

[Citation.] As applicable here, moving defendants can meet their burden by

demonstrating that “a cause of action has no merit,” which they can do by

showing that “[o]ne or more elements of the cause of action cannot be

separately established . . . .” [Citations.] Once defendants meet this burden,

the burden shifts to plaintiff to show the existence of a triable issue of

material fact. [Citation.]

“ ‘On appeal “[w]e review a grant of summary judgment de novo; we

must decide independently whether the facts not subject to triable dispute

10

warrant judgment for the moving party as a matter of law. [Citations.]”

[Citation.] Put another way, we exercise our independent judgment, and

decide whether undisputed facts have been established that negate plaintiff’s

claims. [Citation.] . . . “[W]e exercise an independent review to determine if

the defendant moving for summary judgment met its burden of establishing a

complete defense or of negating each of the plaintiff’s theories and

establishing that the action was without merit.” [Citation.]

“ ‘But other principles guide us as well, including that “[w]e accept as

true the facts . . . in the evidence of the party opposing summary judgment

and the reasonable inferences that can be drawn from them.” [Citation.]

And we must “ ‘view the evidence in the light most favorable to . . . the losing

part[y]’ and ‘liberally construe [his] evidentiary submissions and strictly

scrutinize [the moving party’s] own evidence, in order to resolve any

evidentiary doubts or ambiguities in [the losing party’s] favor.’ ” ’ ” (Wright v.

State of California (2015) 233 Cal.App. 1218, 1228.)

II.

The Trial Court Erred in Interpreting the Deed Reserving the

Easement on Summary Judgment.

As discussed below, we accept JHP’s argument that a sale by Union

Pacific to a party that intended to make authorized use of the easement could

weigh against a finding of abandonment. JHP contends that its purchase

qualified as such because any anticipated development on the JHP property

would use the easement for (1) vehicular and pedestrian access to the

buildings and (2) the installation of communications equipment serving the

buildings. Although the trial court’s order did not expressly address whether

use of the easement to provide access to a commercial or residential

development is authorized under the easement, it did construe the easement

to permit the installation of any type of communications equipment,

11

implicitly rejecting Visitacion’s argument that the installation of such

equipment is not an authorized use unless the equipment is related to

railroad operations. We conclude that the trial court’s interpretation of the

easement deed on summary judgment was premature.

“When the terms of an insurance policy are clear and unambiguous, the

interpretation of the policy presents an issue of law which may be resolved by

summary judgment. [Citation.] However, when the terms of a contract are

ambiguous or uncertain, ‘it is the duty of the trial court to construe it after

the parties are given a full opportunity to produce evidence of the facts,

circumstances and conditions surrounding its execution as well as the

conduct of the parties to the contract [citation],’ and the interpretation of the

policy presents a question of fact which is inappropriate for summary

judgment.” (Rogers v. Prudential Insurance Co. (1990) 218 Cal.App.3d

1132, 1136–1137.) Although Rogers specifically addressed an insurance

policy, the same rule of law applies to the interpretation of any ambiguous

contract. (Daugherty Co. v. Kimberly-Clark Corp. (1971) 14 Cal.App.3d 151,

157.)

There is little question that the terms of the deed containing the

easement are ambiguous. The easement is referred to as a “railroad

easement,” but its authorized uses include the installation of communications

equipment as well as railroad equipment. Further, the deed’s descriptions of

the various tracts subject to the easement refer specifically to the creation of

a “drill & spur track” and an “access roadway.” Based on this language,

Visitacion and JHP posit reasonable but conflicting interpretations, with

Visitacion contending the easement permits only railroad-related uses

(including railroad-related communications and access) and JHP arguing

that any use for the purposes of communications and access is authorized.

12

Determining the proper weight to be given the various provisions in the

easement bearing on its use will require consideration not only of the

language of the easement, but also its “ ‘purpose and character’ ” (Langazo v.

San Joaquin Light & Power Corp., supra, 32 Cal.App.2d at p. 686), its

historic use (see Abar, supra, 275 Cal.App.2d at p. 465), and any other

evidence bearing on the original parties’ intent. “[E]vidence showing the

conduct of the parties and the practical construction placed on [the easement]

by them . . . afforded the most reliable means of ascertaining the intention of

the parties.” (City of Los Angeles v. Savage (1958) 165 Cal.App.2d 1, 7.)

The trial court’s interpretation was based largely on the language of

the easement deed, with little consideration of the circumstances of its

creation or the original parties’ use of the easement. Although the trial court

was correct that the deed’s language authorizing the installation of

communications equipment is broad, that language is potentially subject to

limitation by other provisions of the easement deed and the history of its use.

The deed is entitled “Railroad Easement,” arguably suggesting that the

parties intended the easement to be used solely for railroad purposes.

Further, one of the easement parcels transferred to JHP was described as a

“signal cabinet area” in the quitclaim deed, suggesting it had been used for

communications related to the railroad’s operations.8 The original parties

could have chosen to use broad language to describe the allowable

communications equipment simply to accommodate changing technology for

8 The original easement deed referred collectively to two of the parcels

over which an easement was granted as “Main Line Easement.” In the

quitclaim deed transferring the second of these parcels to JHP, it is referred

to as “signal cabinet area.” This suggests that Union Pacific had reason to

believe the parcel was used for installation of a signal cabinet, a term of art

used to refer to a structure housing electronics involved in the operation of

the railroad.

13

railroad communications, rather than to permit the installation of equipment

serving other communications purposes.

In adopting a broader interpretation, the trial court relied on evidence

that Southern Pacific had, at one time, installed fiber optic cable in some

easements at other, unspecified locations. That type of use might have been

appropriate for the easement parcels relating to operation of the mainline

tracks, since those parcels are presumably part of a railroad right-of-way

connecting distant locations. It seems unlikely that the parties anticipated a

similar use for the easement parcels transferred to JHP because those

easements merely cross the servient parcel, terminating at the property line.

In presenting these arguments, we do not mean to suggest that any of

them is conclusive in the interpretation of the easement deed. We simply

note that the issue is more complex, and more dependent on the evidence of

the historical background, than is suggested by the trial court’s analysis of

the deed’s language. Given the ambiguity of the easement deed and the

uncertain state of the evidence bearing on its origination and use, the trial

court erred in construing the deed in the context of these cross-motions for

summary judgment.

III.

Visitation’s Evidence, if Accepted, Could Support a Finding of

Abandonment.

The trial court’s decision did not address the evidence submitted by

Visitacion in support of its contention that Union Pacific had abandoned the

easement. Because that evidence was sufficient, under long-established case

law, to support a finding by a trier of fact that the easement was abandoned,

Visitacion’s submission created triable issues of fact precluding a grant of

summary judgment to JHP.

14

Visitacion’s evidence, which was largely uncontradicted, demonstrated

that all of Union Pacific’s easement-related activities on the servient parcel

ceased several years prior to the sale to JHP. All tracks, buildings, and other

equipment necessary for use of the properties for railroad purposes had been

removed, and there was no evidence that communications equipment had

ever been present in the easement, other than, perhaps, a signal cabinet.

Before selling the property, Union Pacific determined that it was no longer

using the dominant tenement or the easement for operating railroad

purposes and conducted an extensive internal review confirming that no

department of the railroad had a further use for them. It was only after this

period of nonuse and Union Pacific’s determination that it had no further use

for the property that Union Pacific marketed the JHP property.

On this evidence, a trier of fact could conclude that Union Pacific, prior

to the sale to JHP, had formed an intent “ ‘not to make in the future the uses

authorized by’ ” the easement. (Faus, supra, 67 Cal.2d at p. 363.) A

reasonable inference of such intent could be made from the removal of all

conforming equipment and the significant period of nonuse, which the

internal review confirmed. Similar evidence has repeatedly been found

sufficient to support a finding of abandonment of a railroad easement in

California and other jurisdictions. (E.g., People v. Ocean Shore Railroad,

Inc., supra, 32 Cal.2d at pp. 415–419; Home Real Estate Co. v. Los Angeles

Pacific Co. (1912) 163 Cal. 710, 714–716; Lake Merced Golf & Country Club v.

Ocean Shore R.R. Co., supra, 206 Cal.App.2d at pp. 438–442; Ocean Shore

R.R. Co. v. Doelger (1960) 179 Cal.App.2d 222, 229 (Doelger); see also

Brewster and Taylor Co. v. Wall (1989) 299 Ark. 18 [769 S.W.2d 753, 756]

[railroad easement abandoned when railroad ceased operations and conveyed

the easement for non-railroad use]; Lawson v. State (1986) 107 Wash.2d 444

15

[730 P.2d 1308, 1313] [same]; Schnabel v. County of DuPage (1981)

101 Ill.App.3d 553, 57 Ill.Dec. 121 [428 N.E.2d 671, 678–679] [same]; Pollnow

v. State Dept. of Natural Resources (1979) 88 Wis.2d 350 [276 N.W.2d 738,

746] [same].)

JHP’s argument for non-abandonment is largely premised on its

interpretation of the easement as authorizing a wider variety of uses than a

typical railroad easement. As explained above, we hold that a definitive

interpretation of the easement cannot be made on summary judgment.

Further and in any event, JHP’s arguments about the interpretation of the

easement are also largely irrelevant, given Union Pacific’s conduct prior to its

sale of the property. Union Pacific had ceased railroad-related uses of the

easement, could find no records that it had ever taken advantage of

communications or access uses beyond those necessary for railroad

operations, and determined that it had no intent to make other authorized

uses of the easement. Even if the easement permitted non-railroad uses,

Union Pacific could be found to have formed an intent not to take advantage

of them. For this reason, Visitacion’s evidence necessarily created triable

issues of fact that prevented a grant of summary judgment to JHP.

Although Visitacion’s evidence is sufficient to support a finding of

abandonment, it did not demonstrate an entitlement to summary judgment.

As we have noted, abandonment, and in particular intent to abandon, are

issues of fact. Issues of intent in this context as in others often turn on

circumstantial evidence and inferences that, when conflicting, are not

amenable to summary judgment. (Code Civ. Proc. §437c, subd. (c) [“summary

judgment shall not be granted by the court based on inferences reasonably

deducible from the evidence if contradicted by other inferences or evidence

that raise a triable issue as to any material fact”].)

16

Further, although a trier of fact could find abandonment on Visitacion’s

evidence, that finding is not compelled as a matter of law. A judge or jury

could also conclude that Union Pacific’s conduct was neither unequivocal nor

decisive in demonstrating an intent to forgo all further authorized uses of the

easement. (Gerhard, supra, 68 Cal.2d at p. 890.) In addition, JHP provided

evidence that could be found to refute an intent to abandon. We assume that

sale of the JHP property by Union Pacific to a buyer who intended to make

authorized use of the easement could constitute evidence that Union Pacific

lacked the intent to abandon. Although JHP’s claim that it intends to make

such use of the easement will depend on subsequent interpretation of the

easement, JHP’s evidence is sufficient at this stage of the proceedings to

create a triable issue of fact that precluded a grant of summary judgment for

Visitacion.

IV.

The Trial Court’s Finding That Union Pacific Lacked the Intent to

Abandon as a Matter of Law Was Based on a Misunderstanding of the

Legal Standard.

The trial court’s conclusion that, as a matter of law, Union Pacific

lacked the intent to abandon appears to have been based on a

misunderstanding of the law governing such intent. The court did not

expressly identify the legal standard it applied in finding no intent to

abandon, but it reasoned that Union Pacific could not be found to have

intended to abandon the easement because it “actively marketed” the

easement as part of the JHP property.9 Although this suggests that Union

9 The trial court also cited as evidence of no intent to abandon JHP’s

licensing of access to the property after it purchased the JHP property.

Although that licensing may support a finding that JHP has not abandoned

the easement, it does not bear on Union Pacific’s intent (or its conduct) before

or at the time of the sale.

17

Pacific did not intend to voluntarily relinquish the easement at the time of

the sale to JHP, the intent to abandon an easement does not require or

depend upon an intent to relinquish it.

“ ‘The intention required in the abandonment of an easement is the

intention not to make in the future the uses authorized by it.’ ” (Faus, supra,

67 Cal.2d at p. 363.) As this suggests, abandonment occurs when an owner

no longer intends to engage in the uses authorized by the easement; it does

not require a subjective intent to give up the easement. (See Doelger, supra,

179 Cal.App.2d at p. 232 [“The intent to abandon congeals into

the relinquishment of the purpose for which the easement has been conveyed,

and this renunciation works a termination of the easement. [Citations.] Nor

will a desire to utilize the property for other purposes prevent such

extinguishment”].) In part because it does not depend upon subjective intent,

intent to abandon is generally inferred from the owner’s conduct, rather than

premised on direct evidence of intent.

As the Restatement of Property explains, a finding of abandonment is

normally based on circumstantial evidence because the owner of a dominant

tenement who “deliberately sets about divesting him or herself” of an

easement “normally uses a release.” (Rest. 3d Property, Servitudes, § 7.4,

com. a, p. 352.) Even when the owner of a dominant tenement no longer

intends to exercise the rights granted under the easement, the owner may be

unwilling to voluntarily relinquish the easement because of “the possibility of

exacting a payment from the servient owner for its release.” (Id., § 7.4,

com. c, p. 354.) In such circumstances, “abandonment may be more readily

found than if the servitude continues to enhance the utility of the dominant

estate.” (Ibid.) In other words, a finding of intent to abandon is appropriate

when the uses authorized by the easement have no further practical value to

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the dominant tenement. Abandonment can then occur even though the

easement continues to have economic value, if only by virtue of the burden it

imposes on the servient tenement. Although Union Pacific’s marketing of the

JHP property with the easement demonstrates that the railroad did not

intend to relinquish the easement, it has little bearing on Union Pacific’s

intent to abandon.

Cases in other jurisdictions have consistently found an intent to

abandon a railroad easement, notwithstanding the railroad’s subjective

intent, when the railroad ceases operations in the easement and conveys the

property to a buyer who does not intend to use the easement for authorized

purposes. (E.g., Brewster and Taylor v. Wall, supra, 769 S.W.2d at p. 756;

Lawson v. State, supra, 730 P.2d at p. 1313; Schnabel v. County of DuPage,

supra, 428 N.E.2d at pp. 678–679; Pollnow v. State Dept. of Natural

Resources, supra, 276 N.W.2d at p. 746.) One California court has similarly

cited the sale of portions of a railroad right-of-way to non-railroad users as

evidence of abandonment. (Doelger, supra, 179 Cal.App.2d at pp. 229, 232.)

The trial court separately justified its finding of no intent to abandon

on the ground that the JHP property would be “effectively” landlocked

without access over the easement. Visitacion presented evidence refuting

JHP’s claim that the property would be landlocked without access through

the easement, including the admission by a JHP witness that the easement is

merely “currently the most economically feasible access to the JHP property.”

The issue whether the property was landlocked thus presented a triable issue

of disputed fact, and the court erred in premising a grant of summary

judgment on JHP’s claim. Further, although the landlocked nature of the

parcel might justify a finding of an easement by necessity (see Murphy v.

Burch (2009) 46 Cal.4th 157, 162–163), an issue the court did not expressly

19

consider, it does not bear on the issue of abandonment. JHP has presented

no authority suggesting that the need for access, standing alone, makes

roadway access an authorized use under the easement. Whether access to

the JHP property was an authorized use of the easement or was permitted

only to the extent such access was “ ‘necessarily incident’ ” to the expressly

authorized uses (Rye, supra, 222 Cal.App.4th 84, 92), must be resolved by

interpretation of the easement.

DISPOSITION

The trial court’s grant of summary judgment to JHP is reversed. The

trial court is directed, on remand, to vacate the judgment and its order of

July 15, 2021, granting summary judgment. Visitacion is awarded its costs

on appeal.

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STEWART, P.J.

We concur.

RICHMAN, J.

MILLER, J.

Visitacion Investment, LLC v. 424 Jessie Historic Properties, LLC (A163550)

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Trial Court: San Francisco County Superior Court

Trial Judge: Hon. Vedica Puri

Counsel:

Katzoff & Riggs, Kenneth S. Katzoff, Robert R. Riggs, Stephen G. Preonas,

for Plaintiff, Cross-defendant and Appellant.

Steyer Lowenthal Boodrookas Alvarez & Smith, Jeffrey H. Lowenthal and

Dana M. Andreoli, for Defendant, Cross-complainant and Respondent.

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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