Shearer v. Hodnette
674 So.2d 548, 1995 WL 457892 (1995)
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Rule of Law:
A license to use land, which is normally revocable at will, becomes an irrevocable "executed license" when the licensee makes expenditures or confers a substantial benefit upon the licensor in reasonable reliance on the license.
Facts:
- In 1957, six landowners executed a written instrument granting Robert and Agnes Hodnette the personal right to use 900 feet of a private drive for ingress and egress to their property.
- The agreement stipulated that the right was personal, would not run with the land, and was granted in exchange for one dollar and the Hodnettes' agreement to contribute pro-rata to the road's upkeep.
- Over the next 37 years, the Hodnettes continuously used the road, and with verbal permission, their use extended beyond the original 900 feet.
- During this time, the Hodnettes expended approximately $2,000 on the road's maintenance.
- Approximately six years prior to the dispute, the Hodnettes granted an easement to the Mobile Water and Sewer Board across their own property, which enabled the Board to provide service to all the homes served by the private road.
- In exchange for the Hodnettes' easement, the Water and Sewer Board widened and repaved the private road at no expense to the landowners.
- In 1993, the Hodnettes subdivided their property and gave a lot to their daughter, but she did not use the private road.
- In 1994, Lee Shearer, one of the co-owning landowners of the private road, dug a ditch across the entrance to the Hodnettes' property, blocking their access.
Procedural Posture:
- Robert and Agnes Hodnette filed an action against Lee Shearer in the Circuit Court of Mobile County, Alabama (trial court).
- The Hodnettes sought a temporary restraining order and a permanent injunction to prevent Shearer from obstructing the road and to compel her to repair the damage.
- The trial court granted the temporary restraining order.
- Following a hearing, the trial court granted a permanent injunction in favor of the Hodnettes, finding they were entitled to use the roadway for their lifetimes.
- Lee Shearer (appellant) appealed the trial court's order to the Court of Civil Appeals of Alabama.
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Issue:
Does a license to use a private road become irrevocable for the lifetime of the licensees when they, in reliance on the license, expend money for the road's upkeep and grant a valuable easement that results in a benefit to the licensors?
Opinions:
Majority - Wright, L. Charles, Retired Appellate Judge
Yes. A license to use a private road becomes an irrevocable executed license when the licensee's reliance results in expenditures and confers a benefit upon the licensor. While the 1957 document created a revocable license, not an easement, not all licenses are revocable at will. An exception exists for an "executed license," which arises under the equitable principle of estoppel when a licensee has made expenditures or conferred a great benefit upon the licensor in reliance on the license. Here, the Hodnettes spent money on upkeep and, more significantly, granted an easement to the Water and Sewer Board that directly resulted in the private road being widened and repaved at no cost to the licensors. These actions conferred a substantial benefit, thereby transforming the revocable license into one that is irrevocable for the lifetimes of the Hodnettes.
Analysis:
This decision reaffirms and clarifies the doctrine of the "executed license" as a significant exception to the general rule that licenses are freely revocable. By applying the principle of equitable estoppel, the court prevents a licensor from gaining a benefit from a licensee's expenditures and reliance, and then revoking the underlying permission. The case serves as a key example of how reliance-based actions, particularly those conferring a tangible benefit like property improvements, can create a durable, personal property right where a formal easement does not exist. This precedent is crucial for resolving disputes where informal land use agreements have been relied upon for extended periods, reinforcing that equity can prevent unjust outcomes in property law.
