Agamerica, FCB v. Westgate

931 P.2d 1, 129 Idaho 621, 1997 Ida. App. LEXIS 15
CourtIdaho Court of Appeals
DecidedJanuary 31, 1997
DocketNo. 22477
StatusPublished

This text of 931 P.2d 1 (Agamerica, FCB v. Westgate) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Agamerica, FCB v. Westgate, 931 P.2d 1, 129 Idaho 621, 1997 Ida. App. LEXIS 15 (Idaho Ct. App. 1997).

Opinion

PERRY, Judge.

This case arose out of a foreclosure proceeding. Tenants of the property filed a cross-claim against the mortgagor seeking damages for lost profits from the property or, in the alternative, reimbursement of a portion of the prepaid lease amount. The district court granted summary judgment for the mortgagor on the cross-claim, and the tenants appeal. We vacate the order granting summary judgment and remand for further proceedings.

I.

FACTS AND PROCEDURE

Ed and Mary “Marie” Westgate owned, among other properties, a farm of approximately 540 acres, with a home and outbuildings, known as “Home Place.” They leased the property to Marvin and Elaine Kinzer pursuant to various leases, oral and written, from 1966 to 1988. In the interim, Ed died and left his share of the property to Marie for life, then to his son Richard for life, then to Richard’s son William for life, with the remainder going to William’s children, if any, and if none, then to the Calam Temple of the Shrine for the children’s hospital in Spokane. Marie’s interest in the property followed the same order of distribution. After Marie’s death in December 1988, Richard was appointed personal representative of her estate and was the life tenant of Home Place.

The Kinzers claim that in 1990 they entered into a written twenty-year lease with Richard. No signed copy of the lease has been located, although an unsigned copy of the lease was placed in the record. According to Marvin Kinzer, he paid $15,000 in January 1990 and $5,000 per year in 1991, 1992 and 1993, as prepaid rent for the twenty-year term. Richard died on April 13, 1993. William Westgate replaced Richard as the personal representative of Marie’s estate and as the life tenant.

AgAmerica’s predecessor, the Federal Land Bank of Spokane, held a mortgage on Home Place as security for a 1977 loan of $160,000 to the Westgates. AgAmerica initiated foreclosure proceedings in 1995, naming William Westgate, the Estate of Mary Marie Westgate, Flordeliza Westgate (collectively the Westgates) and the Kinzers as defendants. The Kinzers answered the complaint, lodged a cross-claim against their co-defendants, the Westgates, and counterclaimed against AgAmerica. The cross-claim sought, among other things, financial reimbursement in the amount of $300,000 for loss of the profits the Kinzers anticipated making on the property. The Kinzers eventually withdrew the counterclaim against AgAmerica and stipulated to the foreclosure. The Westgates answered the erosselaim and lodged a claim [623]*623against the Kinzers, seeking a declaration that no lease existed or, in the alternative, that the lease had been breached by the Kinzers and was therefore terminated. The Westgates then filed a summary judgment motion, seeking dismissal of the Kinzers’ cross-claim. The district court granted the Westgates’ motion, and the Kinzers appeal.

II.

ANALYSIS

The Kinzers contend that the granting of summary judgment and dismissal of their cross-claim was error. In their cross-claim, the Kinzers requested: that their rights be declared prior in time and right to those of the Westgates; that they be allowed to lease the premises during the life of William West-gate or for the duration of the written lease or that they be awarded $300,000 for lost income; that notice be given so that purchasers or encumbrancers were bound by the results of the suit, lis pendens; and any further relief available. In their response to the Westgates’ motion for summary judgment, the Kinzers also advanced unjust enrichment as an additional theory of recovery.

Summary judgment under I.R.C.P. 56(c) is proper only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. On appeal, we exercise free review in determining whether a genuine issue of material fact exists and whether the moving party is entitled to judgment as a matter of law. Edwards v. Conchemco, Inc., 111 Idaho 851, 852, 727 P.2d 1279, 1280 (Ct.App.1986). When assessing the motion for summary judgment, all controverted facts are to be liberally construed in favor of the nonmoving party. Furthermore, the court must draw all reasonable inferences in favor of the party resisting the motion. G &M Farms v. Funk Irrigation Co., 119 Idaho 514, 517, 808 P.2d 851, 854 (1991); Sanders v. Kuna Joint School Dist., 125 Idaho 872, 874, 876 P.2d 154, 156 (Ct.App.1994).

A. Richard’s Authority to Enter into a Binding Lease

The Westgates contended, in support of the motion for summary judgment, that no lease was ever entered into and, in the alternative, that Richard Westgate lacked authority to enter into a binding lease with the Kinzers. The Kinzers argued that Richard had the authority as personal representative to lease the property and did so. The Kinzers claimed that they were entitled to damages due to the interruption of their rights under the lease. In reviewing the motion for summary judgment, the district court determined that the Kinzers, although they had not provided the written document, had created a genuine issue of fact as to the existence of a written, signed document creating a twenty-year lease of Home Place. Hence, for the purposes of the summary judgment motion, the district court presumed that a written lease existed.

The district court went on, however, to find that Richard did not have the authority as personal representative, or as life tenant, to enter into a long-term lease. The district court noted that Richard’s authority as personal representative was limited by an order of the court in the administration of Marie Westgate’s estate and that Richard lacked the authority to transfer, sell or convey real property without a further order of the probate court. The district court determined that the prohibition on conveying the property included leasing and thereby precluded Richard from entering into the alleged lease with the Kinzers.

If “convey” does not include “lease,” the probate court’s order did not limit Richard’s authority to enter into a binding lease, and the order of summary judgment on this basis was in error. Even if the term convey does include the concept of lease, then the summary judgment may still have been an error. Assuming without deciding that convey, as used by the probate court, includes a lease, then Richard did not have the authority to enter into the lease without the probate court’s approval. There is no claim in the record that the probate court approved the lease.

A restriction on the power of the personal representative may be ordered by the probate court, if endorsed on the letters [624]*624of administration. If the restriction is not endorsed in the letters of appointment it is ineffective as to persons dealing in good faith with the personal representative. I.C. § 15-3-504. In this case the restrictive provision “shall not transfer, sell or convey” is stated in the letters of administration.

Despite the endorsement on the letters of administration, the Kinzers claim that the limitation on conveying the property was not effective as to them. They claim that they are protected by the provisions of Idaho Code Section 15-3-714. That statute provides:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hurtig v. Mattox
Court of Appeals of Kansas, 2017

Cite This Page — Counsel Stack

Bluebook (online)
931 P.2d 1, 129 Idaho 621, 1997 Ida. App. LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/agamerica-fcb-v-westgate-idahoctapp-1997.