Smith v. Smith ( 2021 )


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  • Nebraska Supreme Court Online Library
    www.nebraska.gov/apps-courts-epub/
    03/23/2021 01:08 AM CDT
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    Nebraska Court of Appeals Advance Sheets
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    SMITH v. SMITH
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    29 Neb. App. 607
    Lynden A. Smith et al., appellants, v. Leonard
    M. Smith et al., defendants and third-party
    plaintiffs, appellees, and Alisa Smith,
    third-party defendant, appellant.
    ___ N.W.2d ___
    Filed March 16, 2021.    No. A-20-233.
    1. Partition: Equity. A partition action is an action in equity.
    2. Equity: Appeal and Error. On appeal from an equity action, an appel-
    late court tries factual questions de novo on the record and, as to ques-
    tions of both fact and law, is obligated to reach a conclusion independent
    of the conclusion reached by the trial court, provided that where credible
    evidence is in conflict on a material issue of fact, the appellate court
    considers and may give weight to the fact that the trial judge heard
    and observed the witnesses and accepted one version of the facts rather
    than another.
    3. Partition. The object of a partition suit is to assign property, the fee
    simple title to which is held by two or more persons as joint tenants, or
    tenants in common, to them in severalty.
    4. ____. There are two types of partition: partition in kind, where the prop-
    erty is physically divided, and partition by sale, where the property is
    sold and the sale proceeds are divided.
    5. ____. As between a partition in kind or sale of land for division, the
    courts will favor a partition in kind, since this does not disturb the exist-
    ing form of inheritance or compel a person to sell his or her property
    against his or her will, which, it has been said, should not be done
    except in cases of imperious necessity.
    6. Partition: Jurisdiction. A court acquiring jurisdiction of property for
    partition acquires complete jurisdiction of the property and affords
    complete justice to all parties in that action with respect to the sub-
    ject matter.
    7. Partition: Equity. Pursuant to its equity powers, a court can order a
    partition in kind such that co-owned property is divided between two
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    groups of owners, rather than divided among all owners individually.
    However, such a remedy should be rarely utilized and only when it is
    equitably necessary.
    8. Partition. The statutory ground for a sale of co-owned land is a show-
    ing that partition in kind cannot be made without great prejudice to
    the parties.
    9. ____. The generally accepted test of whether a partition in kind would
    result in great prejudice to the owners is whether the value of the share
    of each in case of a partition would be materially less than the share of
    the money equivalent that could probably be obtained for the whole.
    Appeal from the District Court for Sheridan County: Travis
    P. O’Gorman, Judge. Affirmed.
    Sean A. Minahan, of Lamson, Dugan & Murray, L.L.P., for
    appellants.
    Terry Curtiss, of Curtiss, Moravek & Curtiss, P.C., L.L.O.,
    for appellees.
    Pirtle, Chief Judge, and Moore and Arterburn, Judges.
    Arterburn, Judge.
    INTRODUCTION
    In this appeal from proceedings to partition real estate, the
    principal issue is whether partition in kind can be achieved by
    awarding a portion of the property collectively to one group
    of owners and awarding the remaining property collectively to
    another group of owners. Ultimately, we conclude that because
    the law has long favored partition in kind and because the
    unique facts and circumstances presented by this case war-
    ranted a unique resolution, it was appropriate to partition the
    property collectively between the two groups of owners. We
    affirm the judgment of the district court.
    BACKGROUND
    Leonard M. Smith and Linda S. Smith and their four chil-
    dren, Lynden A. Smith, Jaclyn K. Smith, Sarah K. Kah (Sarah),
    and Lucas A. Smith, are co-owners of 4,972 acres of land
    located in Sheridan County, Nebraska, which they inherited
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    from Linda’s parents. The shared land is made up of three
    noncontiguous parcels. The first parcel of land is referred to
    in the record as the “[N]orth [P]ivot.” A second parcel of land
    just to the south of the North Pivot is referred to as both “Unit
    62” and the “Mirage Flats Irrigation District.” Unit 62 includes
    87.2 acres of land. The North Pivot and Unit 62 parcels con-
    sist of irrigated farmland and grassland. In particular, Unit 62
    was described as “very flat, very fertile ground.” The parties
    stipulated that Linda owns 46 percent of the land contained
    within the North Pivot and Unit 62, while each of her four
    children own 13.5 percent of these parcels. The third parcel of
    land is referred to as the “[R]anch.” This parcel consists largely
    of pastureland, but also includes irrigated and nonirrigated
    cropland as well. The parcel includes various improvements,
    including multiple houses, sheds to store machinery and house
    cattle, and a large Quonset. Box Butte Creek flows through a
    portion of the Ranch. The parties stipulated that Leonard and
    Linda own 32.5 percent of the Ranch as tenants in common.
    The rest of that parcel is divided equally among Linda and her
    four children such that each owns a 13.5-percent interest in
    the land.
    In September 2017, Lynden, Jaclyn, and Sarah filed a shared
    complaint for partition of the co-owned land, seeking that title
    “be quieted and confirmed in its owners; that [the property] be
    partitioned and divided among its owners in kind . . . and if
    the [property] cannot be divided and partitioned in kind, then
    that it be sold as provided by law and the net proceeds there-
    from divided accordingly.” Leonard, Linda, and Lucas (col-
    lectively referred to as “appellees”) filed a shared answer and
    cross-claim against Lynden, Jaclyn, Sarah, and a third-party
    defendant, Alisa Smith, who is Lynden’s wife (collectively
    referred to as “appellants”), conceding that partition of the
    co-owned land was necessary and appropriate. Appellees also
    affirmatively indicated, “The property in question cannot fairly
    be divided in kind as part of this proceeding given the prop-
    erty’s unique character, its pivot irrigation on portions, and
    the varying improvements to portions of the tract.” Appellees
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    requested that a referee be appointed “to determine that the
    said real estate may not be divided in kind” and that the prop-
    erty be sold and the funds obtained from the sale be divided
    amongst the parties.
    Pursuant to the parties’ stipulation regarding ownership of
    the property, the district court determined that appellants and
    appellees were all joint owners of the property. The court
    appointed a referee to recommend whether the property could
    be partitioned in kind without great prejudice to the owners or
    whether the property should be sold and the proceeds divided.
    The referee inspected the property. He opined:
    The partition thereof in kind cannot be made without
    great prejudice to the owners when considering terrain,
    availability of surface water, livestock watering facilities,
    improvements located thereon and associated with certain
    parts of the real estate subject to partition and methods
    and means of application of surface and underground
    water to certain irrigable tracts.
    The referee filed a motion with the district court to approve his
    report and to order a sale of the property.
    Appellees subsequently filed an objection to the referee’s
    report. In their objection, appellees indicated that they did not
    believe a sale of the property was necessary or appropriate.
    They alleged, “Sale of all real estate will work a serious and
    unique hardship on [appellees] given their investment in the
    co-owned real estate and its use and location as it relates to
    other property of [Leonard and Linda].” Appellees proposed
    that the land should be partitioned in kind such that appellants
    would collectively receive a portion of the property equal to
    their collective shares. Similarly, appellees would collectively
    retain the remainder of the property. Appellees contended,
    “Sale of all the co-owned real estate and division of the net
    proceeds from the sale will not realize a materially greater
    payment to [appellants] then [sic] division in kind as hereafter
    proposed and sale by [appellants] of the share distributed ‘in
    kind’ to them.”
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    In conjunction with their objection to the referee’s report,
    appellees filed a motion for leave to amend their cross-­
    complaint in order to delete the assertion that the property
    could not be divided in kind. Appellees indicated that such
    assertion was included in the cross-complaint only “due to the
    error of their attorney.” The district court ultimately granted the
    motion for leave to amend. The court also scheduled a trial on
    the referee’s report and appellees’ objection to that report.
    During the trial, Leonard, Linda, Lucas, Jaclyn, and Lynden
    each testified. In addition, both appellants and appellees called
    an expert witness to testify regarding the feasibility of parti-
    tioning the co-owned land in kind without great prejudice to
    the owners.
    Leonard generally testified regarding his use of the ­co-owned
    land as a part of his combined ranching and farming operation.
    Linda and Lucas are also involved in this operation. Leonard
    indicated that if all of the co-owned land were to be sold, it
    would “cripple” the operation. In addition, Leonard explained
    that he and Linda own separate parcels of land which border
    portions of the co-owned land. Selling the co-owned land
    would affect their access to their independently owned land.
    Leonard further explained that he did not want to sell all of the
    co-owned land
    [b]ecause we feel that it would adversely affect me and
    my son and especially my wife. This is her home. She
    was raised there. She’s the happiest when she goes down
    there and checks the cattle out in the pasture. That’s why
    we object to it and we feel that each person should get
    their fair share and operate it to whatever potential they
    feel right.
    Leonard proposed that the three parcels of land which are
    ­co-owned by appellants and appellees be partitioned in kind
    such that appellants receive all of Unit 62 and a portion of
    the west side of the Ranch, including sections 4 and 9 and
    the western­most part of section 15 (480 acres). Appellants
    would also receive a small corner of section 10 (40 acres),
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    located within the Ranch, so that they would have ready
    access to section 15 from section 9. In total, appellants would
    receive approximately 1,880 of the total 4,972 co-owned acres.
    While 1,880 acres is not equal to appellants’ collective 40.5
    percent interest in the total number of acres making up the
    ­co-owned land, Leonard testified that his proposal provided
    appellants with their collective share of the value of the
    ­co-owned land.
    As a part of Leonard’s proposed division of the co-owned
    land, he, Linda, and Lucas would collectively receive the North
    Pivot and the remainder of the Ranch, totaling approximately
    3,092 acres. Leonard testified that he believed that dividing the
    co-owned land this way was fair: “I believe this is as fair [a]
    division as you could [accomplish]. They are getting the better
    end of the [R]anch.”
    Specifically, Leonard explained that this division of the
    property would provide Lynden with Unit 62, which is where
    he has farmed since 2003 or 2004. Leonard noted that Lynden
    has made improvements to Unit 62, including putting “drip
    tape” underneath the ground to irrigate his crops. Appellants
    would also receive the larger of two pivots located on the
    Ranch and a majority of the dryland cropland. Appellants
    would have access to water from two windmills located on
    their portion of the Ranch. In addition, the creek located
    within their parcel would provide “live water” even in years
    of drought. However, Leonard did indicate that, in the past,
    the creek has flooded, making travel between sections 9 and
    15 impossible until the water receded. Leonard explained that
    appellants would have ready access to all parts of their portion
    of the Ranch, as a highway runs through section 4 and another
    road lies directly south of section 15, the southernmost sec-
    tion of appellants’ allocated property. Leonard did not believe
    appellants would have any issue with accessing section 15
    from that road. He did indicate that without the road, the only
    access appellants would have to section 15 would be to cross
    the creek.
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    Linda and Lucas also testified about the road directly
    south of section 15. Linda indicated that she has utilized that
    road, without permission or interference from anyone, since
    she was a child. Similarly, Lucas testified that he has used the
    road without permission or interference from anyone since at
    least 1993. In addition, Lucas believed the road to be public,
    as he had observed county employees doing maintenance work,
    including “blading the road” to make it smoother and fill holes
    as recently as the summer of 2018. Linda testified that in addi-
    tion to using the road, appellants could also obtain access to
    section 15 using their portion of section 10. Linda recognized
    that the creek sometimes may affect appellants’ ability to cross
    into section 15; however, she indicated that this issue could “be
    easily addressed.”
    Appellees called John Childears to testify as their expert
    witness. Childears has been a licensed real estate appraiser and
    a licensed real estate broker in Nebraska for approximately 40
    years. He is also an accredited rural appraiser. Childears testi-
    fied that he has previously completed 779 appraisals, including
    75 appraisals of large feedlots.
    Childears performed an appraisal of the co-owned land.
    Utilizing the cost approach, he calculated the total value of the
    land to be $5,751,000. In reaching this conclusion, Childears
    calculated a value for each of the three separate parcels which
    make up the co-owned land. The North Pivot was valued at
    $427,000. Unit 62 was valued at $261,000. The portion of the
    Ranch that is west of the county road was valued at $1,563,000.
    The remainder of the Ranch was valued at $3,500,000.
    Childears opined that the co-owned land could be fairly
    partitioned in kind between appellees collectively and appel-
    lants collectively. Childears’ proposed division of the land
    largely mirrored Leonard’s proposed division. Appellants
    would receive Unit 62 and the western portion of the Ranch.
    However, Childears proposed that appellants would receive
    all of section 15 of the Ranch, rather than the western por-
    tion of that section as proposed by Leonard. Appellees would
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    receive the North Pivot and the remaining portion of the
    Ranch. According to Childears’ calculations, by dividing the
    co-owned land in this manner, appellants would receive 41.17
    percent of the total value of the land, which is more than their
    collective share of 40.5 percent.
    Childears testified to his belief that the creek located on
    a part of appellants’ portion of the Ranch was “a positive”
    even if it might sometimes cause access issues. He believed
    that the land granted to appellants was saleable. In fact, he
    opined that appellants’ portion of the Ranch was “very mar-
    ketable, very desirable.” Childears testified that on the open
    market, there would be a number of potential buyers for
    appellants’ land.
    At the close of appellees’ case, appellants motioned for a
    directed verdict, asking the district court to adopt the referee’s
    report which recommended sale of the co-owned land. The
    court overruled the motion.
    Jaclyn testified on behalf of appellants. She indicated that
    at the time of her testimony, she had lived in a house located
    in section 9 of the Ranch, one of the sections that would be
    granted to appellants pursuant to Childears’ proposal, for the
    past 2 years. Jaclyn testified that she was not in favor of par-
    titioning the land pursuant to Childears’ proposal. She did not
    want to be “legally bound” to any of her family members by
    collectively owning the land. She was also concerned that if
    the court awarded her, Lynden, and Sarah a collective share of
    the land, that another partition action would have to be initi-
    ated. Jaclyn indicated that she did not believe there was a fair
    way to partition the land in kind. She was in favor of selling all
    of the land and dividing the proceeds.
    Lynden testified that at the time of the trial, he farmed land
    located within Unit 62 and within section 9 of the Ranch,
    both parcels that would be granted to appellants pursuant to
    Childears’ proposal. In the past, Lynden has also lived on
    section 9. Lynden did not agree with Childears’ proposal to
    divide the land collectively between appellants and appellees.
    He expressed concern that there was no southern access to
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    appellants’ portion of the Ranch because the road was private
    and owned by a neighboring farmer. Lynden also did not want
    to own land with his sisters because he believed Jaclyn and
    Sarah would want to sell the land, which would “[i]mmensely”
    affect his farming operations. Lynden testified, “I never really
    wanted to sell the property. I want to keep it. I want to farm.
    That’s why I’m there.” However, Lynden also conceded that
    he had not objected to the referee’s report which had recom-
    mended sale of all the co-owned land.
    Appellants called Ryon Rypkema to testify as their expert
    witness. Rypkema has been a licensed real estate appraiser
    in South Dakota and North Dakota since 2004. He has also
    obtained temporary licenses to work on specific projects in
    Nebraska. He specializes in appraising agricultural and com-
    mercial properties. However, he is not accredited as a rural
    appraiser.
    Rypkema performed an appraisal on the co-owned land
    using the cost approach and the sales comparison approach.
    Rypkema explained that his “final appraisal” utilized “a blend
    of the cost approach and the sales comparison approach.”
    He opined that the total value of the co-owned land was
    $5,410,000. He believed that it would be “difficult” to divide
    the land equitably between the six owners, given the numerous
    different types of land and improvements. Rypkema indicated
    he did not have any real issues with Childears’ appraisal; how-
    ever, he did not believe that Childears’ proposed division of the
    property would be equitable. In fact, using Rypkema’s calcula-
    tions, Childears’ proposed division would yield appellants only
    35.75 percent of the total value of the co-owned land, which
    was less than their 40.5-percent interest in the land. Rypkema
    also questioned whether appellants would have “legal access”
    to section 15 of the Ranch from the road located just to the
    south of that section.
    During their rebuttal, appellees recalled Childears to testify.
    Childears questioned the reliability of Rypkema’s appraisal
    due to his apparent use of “assemblage.” Childears described
    assemblage as adding up the various parts of a property to
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    calculate the total value. Childears testified that assemblage
    is not a viable tool in appraising real property. Childears
    also questioned Rypkema’s valuation of each individual par-
    cel “regardless of fencing, regardless of access, regardless of
    water sites, so forth.”
    On January 21, 2020, the district court entered an order sus-
    taining appellees’ objection to the referee’s report and ordering
    an in-kind division of the property such that appellants collec-
    tively received 41.17 percent of the total value of the property,
    in accordance with Childears’ testimony at trial. In the order,
    the court specifically found Childears to be “very credible”
    and believed that while “[p]artition in kind under the facts of
    this case is difficult . . . an equitable division in kind is not
    impossible.” The court indicated that “Childears’ opinion as to
    value and proposed division shows that the property [appel-
    lees] suggested be allocated to [appellants] was not materi-
    ally less than the share of the proceeds they would receive
    in the event that the entire property is ordered to be sold.”
    The court indicated its belief that a forced sale of all the land
    would not advance the interests of appellees or of Lynden.
    The court also specifically found that Rypkema was not a
    credible witness. The court noted that it “gave little weight to
    Rypkema’s opinions.”
    Appellants filed a timely appeal from the district court’s
    order partitioning the co-owned property in kind.
    ASSIGNMENTS OF ERROR
    Appellants assign, restated and consolidated, that the district
    court erred in partitioning the property in kind to appellants
    collectively and to appellees collectively and in finding that
    any partition in kind was possible given the character and loca-
    tion of the property.
    STANDARD OF REVIEW
    [1,2] A partition action is an action in equity. FTR Farms
    v. Rist Farm, 
    305 Neb. 708
    , 
    942 N.W.2d 204
     (2020). On
    appeal from an equity action, an appellate court tries factual
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    questions de novo on the record and, as to questions of both
    fact and law, is obligated to reach a conclusion independent of
    the conclusion reached by the trial court, provided that where
    credible evidence is in conflict on a material issue of fact, the
    appellate court considers and may give weight to the fact that
    the trial judge heard and observed the witnesses and accepted
    one version of the facts rather than another. Arnold v. Walz,
    
    306 Neb. 179
    , 
    944 N.W.2d 747
     (2020).
    ANALYSIS
    [3] Before we address the specific assertions raised by
    appellants in this appeal, we must restate the basic, longstand-
    ing concepts which govern partition actions in Nebraska. The
    object of a partition suit is to assign property, the fee simple
    title to which is held by two or more persons as joint ten-
    ants, or tenants in common, to them in severalty. FTR Farms
    v. Rist Farm, 
    supra.
     “Severalty” is defined as the “quality,
    state, or condition of being separate or distinct.” Black’s Law
    Dictionary 1583 (10th ed. 2014). Essentially, the purpose of
    partition is to provide owners with separate and exclusive pos-
    session of their portion of co-owned land.
    [4,5] There are two types of partition: partition in kind,
    where the property is physically divided, and partition by sale,
    where the property is sold and the sale proceeds are divided.
    In re Estate of McKillip, 
    284 Neb. 367
    , 
    820 N.W.2d 868
    (2012). As between a partition in kind or sale of land for divi-
    sion, the courts will favor a partition in kind, since this does
    not disturb the existing form of inheritance or compel a person
    to sell his or her property against his or her will, which, it has
    been said, should not be done except in cases of imperious
    necessity. FTR Farms v. Rist Farm, 
    supra.
     A sale in partition
    cannot be decreed merely to advance the interests of one of the
    owners, but before ordering a sale, the court must judicially
    ascertain that the interests of all will be promoted. 
    Id.
     In fact,
    it is generally held that until the contrary is made to appear,
    the presumption prevails that partition in kind is feasible and
    should be made, and that the burden is on those who seek a
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    sale of the property in lieu of partition in kind to show the
    existence of a statutory ground for such sale. In re Estate of
    McKillip, supra. With these principles in mind, we turn to the
    specific arguments here.
    On appeal, appellants challenge the district court’s authority
    to order partition in kind such that co-owned land is divided
    collectively between two groups of owners. Appellants contend
    that partition in kind can only be achieved by awarding each
    owner his or her individual share of the land: “[T]he right to
    partition runs to each Appellant independently, rather than as a
    collective.” Brief for appellants at 15.
    [6,7] The Nebraska Supreme Court recently restated a long-
    standing proposition of law that in Nebraska, a court acquir-
    ing jurisdiction of property for partition acquires complete
    jurisdiction of the property and affords complete justice to all
    parties in that action with respect to the subject matter. FTR
    Farms v. Rist Farm, 
    305 Neb. 708
    , 
    942 N.W.2d 204
     (2020).
    This statement is properly in line with the trial court’s broad
    equitable powers, including the power to devise a remedy to
    meet the situation presented. See, e.g., O’Connor v. Kearny
    Junction, 
    295 Neb. 981
    , 
    893 N.W.2d 684
     (2017). In FTR
    Farms v. Rist Farm, the Supreme Court discussed these broad
    equitable powers when holding that the concept of owelty, an
    equalization payment, is permitted in certain partition cases
    when it is determined to be “equitably necessary.” 
    305 Neb. at 720
    , 942 N.W.2d at 214. Similarly, we hold that pursuant to its
    equity powers, a court can order a partition in kind such that
    co-owned property is divided between two groups of owners,
    rather than divided among all owners individually. However, as
    the Supreme Court cautioned regarding the concept of owelty,
    such a remedy should be “rarely utilized and only when it is
    equitably necessary.” Id.
    We find the circumstance presented by this case to be one
    of the rare situations which warrants a partition in kind such
    that the co-owned land is divided collectively between appel-
    lants and appellees. First, as we explained above, appellants
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    filed their complaint for partition as a collective unit and con-
    tinued to act as a unit throughout the proceedings in the lower
    court. They shared the same lawyer and acted in concert in
    questioning each witness. None of appellants formally objected
    to the referee’s report recommending a sale of all of the prop-
    erty, although Lynden did testify that he wished to keep his
    farmland. Moreover, appellants continued to act as a unit in fil-
    ing and in briefing this appeal. Because appellants have clearly
    aligned their interests and have, at least implicitly, indicated a
    collective desire to partition by sale, this case presents a dif-
    ferent factual scenario than one where each co-owner of land
    proceeds as an individual.
    Next, we find that the evidence presented at trial revealed
    that a partition by sale would create a significant hardship for
    appellees, especially because Leonard and Linda own land
    which borders the co-owned property and because their ranch-
    ing and farming operation has been in place on the property for
    decades. As we stated above, a person should not be forced to
    sell land against his or her will. See FTR Farms v. Rist Farm,
    
    supra.
     And, under the circumstances of this case, a sale of
    all of the property would not promote the interests of all of
    the co-owners.
    Appellees, through the expert opinion of Childears, pre-
    sented the district court with an effective remedy which, for
    all intents and purposes, gave both appellees and appellants
    exactly what they requested. By dividing the land in kind col-
    lectively between the two groups, the district court awarded
    appellees sufficient land to keep their operation running, while
    giving appellants more than their fair share of the value of the
    land to sell. Childears testified that the land allotted to appel-
    lants was very marketable and represented 41.17 percent of
    the total value of the land. The district court found Childears’
    opinion as to value to be very credible.
    While appellants assert that what they actually sought from
    their partition action were their individual portions of 13.5
    percent of the total value of the land, they do not explain
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    how the district court’s decision to partition the land in kind
    provided them with something different than what they sought.
    They can sell the land awarded to them and, according to
    Childears, obtain more than their 13.5-percent individual share
    of the total value of the land. Furthermore, while appellants
    assert that they have suffered great prejudice by being forced
    to co-own land with two of their siblings, they fail to provide
    much detail regarding this prejudice. Appellants are free to sell
    the land provided to them by virtue of the court’s decision and
    receive their share of the proceeds. This is precisely what they
    sought in their partition action and at trial.
    Appellants also point to the Supreme Court’s opinion in
    Zornes v. Zornes, 
    292 Neb. 271
    , 
    872 N.W.2d 571
     (2015), to
    demonstrate that the district court’s collective partition in kind
    was not appropriate. However, we find Zornes v. Zornes to
    be distinguishable. In that case, the district court partitioned
    two promissory notes between the two parties by awarding
    each party a one-half divided interest in the proceeds from
    each note. On appeal, the Supreme Court reversed the district
    court’s decision. The court indicated that the lower court’s
    partition had “actually preserved joint management” of the
    notes, rather than separating or dividing the parties’ interests in
    the notes. Id. at 279, 872 N.W.2d at 578. However, the court
    also noted the difficult position the district court was in when
    attempting to equitably divide the promissory notes, as each
    promissory note held a different value. The Supreme Court
    ultimately ordered the district court to partition the promis-
    sory notes such that each party received one note, but that the
    party who received the lower value also received an equaliza-
    tion payment.
    While in Zornes v. Zornes, supra, the Supreme Court
    reversed the district court’s decision to partition the promis-
    sory notes in a manner which essentially left the two parties
    in the position of continuing as joint owners, in this case,
    the district court partitioned the land between the two groups
    of owners in order to give each group exactly what it asked
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    for. Appellants, who were in favor of selling all of the land,
    received more than their fair share of the value of that land
    so that they could sell it and divide the proceeds. While the
    district court’s order had the effect of necessitating the three
    appellants to continue as joint owners, at least temporarily,
    such an order is distinct from that in Zornes v. Zornes, supra.
    Here, appellants did not act as opposing parties in the partition
    action. Rather, they acted in concert with each other throughout
    the proceedings. Appellants decided to align their interests by
    not objecting to the referee’s report and advocating for the sale
    of the property. The district court’s order permits appellants to
    obtain their individual interests in the total property. Moreover,
    we note that in Zornes v. Zornes, the Supreme Court indi-
    cated its understanding that partition actions sometimes require
    unique resolutions. We note that the district court could have
    ordered that only the land awarded to appellants be sold. See
    
    Neb. Rev. Stat. § 25-21
    ,103 (Reissue 2016). However, given
    the unity of appellants’ position, the court chose not to do so.
    We find no error in the court’s choice.
    Appellants also assert in their brief on appeal that even if
    the co-owned land could be partitioned in kind collectively
    between two groups of owners, that under the facts of this case,
    it was not equitable to do so. Specifically, appellants argue that
    the evidence revealed that because there was limited access
    to section 15 of the Ranch, which was granted to them, that
    the value of that section was greatly diminished. Essentially,
    appellants argue that the partition in kind did not yield their
    full share of the total value of the co-owned land and that the
    co-owned land should have been sold in its entirety.
    [8,9] The statutory ground for a sale of co-owned land is a
    showing that partition in kind cannot be made without great
    prejudice to the parties. See 
    Neb. Rev. Stat. §§ 25-2181
     and
    25-2183 (Reissue 2016). While it is generally true that there is
    a presumption in favor of partition in kind, it is likewise true
    that the character and location of the property, or the amount
    of the interest sought to be assigned, or both, may be such
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    that it will be presumed that partition in kind cannot be made.
    Nordhausen v. Christner, 
    215 Neb. 367
    , 
    338 N.W.2d 754
    (1983). The generally accepted test of whether a partition in
    kind would result in great prejudice to the owners is whether
    the value of the share of each in case of a partition would be
    materially less than the share of the money equivalent that
    could probably be obtained for the whole. In re Estate of
    McKillip, 
    284 Neb. 367
    , 
    820 N.W.2d 868
     (2012).
    Here, appellants argue that the partition in kind ordered by
    the district court results in great prejudice to them because
    it does not provide them with the value of their share of the
    total property. In support of their argument, appellants point to
    evidence presented at trial which casts doubt on whether sec-
    tion 15 of the Ranch was independently accessible and was,
    thus, marketable. While we recognize that appellants offered
    evidence in an effort to demonstrate potential difficulties with
    accessing section 15, including Lynden’s testimony that the
    road to the south of that section was privately owned by a
    neighboring farmer and evidence that due to flooding in the
    creek, section 15 could not always be accessed from section
    9, we also recognize the contradictory evidence presented
    by appellees. Leonard, Linda, and Lucas each testified that
    they have never had any problems with accessing section 15
    using the road to the south of that section. Lucas also testi-
    fied that he believed the road was publicly owned because
    he had previously observed county workers maintaining the
    road. In addition, both Leonard and Linda testified that while
    the creek sometimes flooded, causing section 15 to be tempo-
    rarily inaccessible from section 9, this issue could be easily
    addressed and rectified. Childears also testified that, in his
    opinion, the creek increased the value of appellants’ portion
    of the co-owned land by providing a consistent water source.
    Childears opined that the land awarded to appellants was
    very marketable.
    As we stated above, where credible evidence is in conflict
    on a material issue of fact, the appellate court considers and
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    may give weight to the fact that the trial judge heard and
    observed the witnesses and accepted one version of the facts
    rather than another. Arnold v. Walz, 
    306 Neb. 179
    , 
    944 N.W.2d 747
     (2020). The parties presented conflicting evidence regard-
    ing the accessibility, and the corresponding marketability, of
    section 15. After hearing testimony from all of the witnesses,
    the district court apparently found appellees’ testimony regard-
    ing access to be more credible. In fact, the district court explic-
    itly found Childears’ testimony to be very credible. We do not
    reevaluate the lower court’s credibility determinations here.
    Given that the district court found appellees’ evidence
    regarding the accessibility to section 15 to be credible, we
    do not find the court’s partition in kind to be inequitable.
    Childears testified that by dividing the co-owned land such
    that appellants received Unit 62; all of sections 4, 9, and 15
    of the Ranch; and 40 acres of section 10 of the Ranch, appel-
    lants would be receiving 41.17 percent of the total value of the
    co-owned land. This is more than appellants’ collective 40.5
    percent interest in the land. Appellants have not offered any
    other argument, outside of the accessibility of section 15, to
    support their assertion that they suffered great prejudice due to
    the division in kind. Accordingly, we affirm the district court’s
    decision to partition the land in kind, rather than to order the
    sale of all the land.
    CONCLUSION
    Given the broad equity powers granted to the district court
    in partition actions and the favor given to partition in kind,
    we affirm the decision of the district court to partition the
    ­co-owned land by awarding a portion of the land collectively
    to appellants and by awarding the remaining portion of the land
    collectively to appellees. Appellants were awarded more than
    their share of the total value of the land.
    Affirmed.
    

Document Info

Docket Number: A-20-233

Filed Date: 3/16/2021

Precedential Status: Precedential

Modified Date: 3/23/2021