Bjerken v. Ames Sand and Gravel Company

206 N.W.2d 884
CourtNorth Dakota Supreme Court
DecidedJanuary 19, 1973
DocketCiv. 8829
StatusPublished
Cited by8 cases

This text of 206 N.W.2d 884 (Bjerken v. Ames Sand and Gravel Company) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bjerken v. Ames Sand and Gravel Company, 206 N.W.2d 884 (N.D. 1973).

Opinions

[886]*886TEIGEN, Judge.

This is the sequel to Bjerken v. Ames Sand and Gravel Company, 189 N.W.2d 366 (N.D.1971). All of the issues except one were settled in that appeal. We reversed the judgment of the trial court and remanded the case with instructions to the trial court “to determine the amount due the Bjerkens by the defendants Schultz & Lindsay Company and Ames Sand and Gravel Company, Inc., pursuant to the minimum requirements of the lease without considering the payments made by Schultz & Lindsay Company for the reject sand.” The trial court erroneously construed our remand to require a new trial on that issue.

In the first trial the status of the record on this issue was as follows: By answer to the plaintiffs’ complaint the defendants admitted that they had paid to the plaintiffs a total of $239,339.84 during the lease term. The lease required minimum payments equaling $250,000 over the ten-year term. The parties had also entered into a written stipulation in February 1970 following a pretrial hearing, which stipulation was submitted to and accepted by the court at the trial. The court entered an order providing that the stipulated facts were true and correct and that no further proof of the facts contained therein was necessary. In brief the stipulation provides: (1) that the total amount paid to the plaintiffs under the terms of the lease was $239,339.84, all of which was paid by Schultz & Lindsay Construction Company and Clay County Sand & Gravel Company; and (2) that the total amount of material removed from the leased premises was 1,026,038.7 tons of rock, sand and gravel, plus 226,495 cubic yards of pit-run gravel, which amounts are shown on a summary statement prepared by Schultz & Lindsay Construction Company; that none of these materials were removed by Ames Sand and Gravel Company, Inc. A conversion table for converting tons of sand and rock into cubic yards is contained in the stipulation. It was also established that the defendants had removed less material than they had paid for, including a quantity of reject sand which was not covered by the terms of the lease but by a collateral agreement.

The trial court, while directing a new trial on remand, also determined that the stipulation described above was no longer in effect and therefore was not applicable to the new trial. This ruling was made, without application being made by either party, over the strenuous objection of the attorney for the plaintiffs who contended that the trial court should make a determination of the amount due the Bjerkens on the basis of the record at the first trial. This objection was overruled and the defendants were then permitted to introduce new evidence of payments made during the lease term, which payments did not compare with their previous admission by answer or by th'e stipulation. According to the new evidence produced by the defendants they had paid the sum of $264,740.23 to the plaintiffs during the lease term. This total exceeds the $250,000 minimum payment required by the lease by $14,740.23. The defendants then reintroduced into evidence the summary statement furnished the plaintiffs by the defendants prior to the first trial as proof of the amount of materials removed, including the reject sand. This was the same summary statement which supplied the facts for the stipulation accepted by the court in the first trial and which contains the figure of $239,339.84 as “payments made”. It was reintroduced in the new trial to establish the fact that the defendants had not removed materials in excess of the $250,000 minimum payment requirement of the lease. The summary statement also established the tons of reject sand which had been removed from the premises by the defendants during the lease term and its value was computed. thereon at $6,442.37. The statement, however, was not introduced in proof of the payments made. The defendants then rested and were granted leave by the court to amend their pleadings to conform to the proof.

[887]*887The plaintiffs introduced no testimony to refute the evidence introduced by the defendants but elected to stand on the record made at the first' trial, including the stipulation of facts as to payments made and amounts of materials removed. They did, however, introduce evidence that they had relied on the summary statement furnished them by the defendants and that that statement induced them to commence the action to recover the deficiency.

The trial court found that the defendants had paid the plaintiffs $264,740.23 during the term of the lease, from which it subtracted $6,442.37, the amount paid for reject sand, which left a balance of $258,-297.86 applicable as lease payments. From this amount the trial court then subtracted the minimum of $250,000 required under the lease and arrived at a balance in excess of the minimum of $8,297.86. The trial court also found that the defendants had not removed materials in excess of the minimum requirements of the lease and entered judgment on remittitur in the amount of $8,297.86 in favor of the defendants on their counterclaim, which had been amended to conform with the proof.

The plaintiffs on this appeal specify that the trial court erred in granting a new trial on this issue and in rejecting the stipulation. They argue that the trial court misconstrued our remand, which required that court to determine the amount due the plaintiffs from the defendants pursuant to the minimum requirements of the lease without considering the payments made for reject sand.

It is clear that the records and books of account from which the computations were made at both trials were at all times in the possession of the defendants, and that the plaintiffs relied upon the summary statement submitted by the defendants to the plaintiffs following the close of the ten-year lease term as to the amount of materials mined and the total payments made by the defendants to the plaintiffs during the lease term. It was this summary statement, which consists of an accounting made by the defendants and given to the plaintiffs, that prompted them to institute this action to recover the difference between the amount of the payments made, as shown by the summary statement, and the minimum payment required under the terms of the lease. The defendants’ counterclaim at the first trial sought to recover the difference between the value of the materials removed from the leased premises and the amount paid or, in the alternative, to be permitted to mine and remove from the premises additional material equivalent to the overpayment at the lease rate. We denied the defendants’ counterclaim on this issue in our first opinion when we held in paragraph 5 of the syllabus:

“When the terms of a lease required that a lessee remove and pay for a minimum of 1,250,000 cubic yards of material within the first ten years of the lease, the lessee was required not only to pay the minimum required over the ten-year period, but was also required to remove from the premises within that period the 1,250,-000 cubic yards of material or forfeit the right to do so.” Bjerken v. Ames Sand and Gravel Company, supra, 189 N.W.2d at 367.

In the new trial upon remand the defendants have changed their position. They no longer claim that they are entitled to recover the overage paid or, in the alternative, to mine the minimum amount of materials required under the lease. They have accepted our decision on that issue and have abandoned the counterclaim as originally pleaded.

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Bjerken v. Ames Sand and Gravel Company
206 N.W.2d 884 (North Dakota Supreme Court, 1973)

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206 N.W.2d 884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bjerken-v-ames-sand-and-gravel-company-nd-1973.