Costello v. Stokely Grain Co.

193 Iowa 203
Supreme Court of Iowa·Decided March 7, 1922·Published·Cited by 8 cases

Opinion

De Graff, J.

— Three causes of action as shown by the caption of this appeal were consolidated for the purposes of trial. [204] The first two causes were instituted as law actions and were brought by the plaintiff Costello against the defendant Welder, the Stokely Grain Company, and the Schaal-Walker Company to recover the value of certain grain which had been sold by the defendant Welder to the grain companies. Welder was a tenant of the plaintiff' on his farm for the year 1920-21 and the grain that was sold was raised on this farm and subject, as is alleged, to a landlord’s lien for rent.

Subsequently to the commencement of the two actions by the landlord Costello, and while said actions were pending, the tenant Welder filed his petition in which it' is recited that the defendant Costello claims some right, title or interest by reason of a landlord’s lien in the sum of $1,633.92, which sum represents the value of certain grain sold by the plaintiff to the Stokely Grain Company. Plaintiff also avers that the defendant Costello “has been fully paid for any account between the plaintiff and the defendant Costello,” and therefore prays judgment against the Stokely Grain' Company in the sum mentioned.

For answer to the petitions of the plaintiff herein and by way of counterclaim defendant Welder presents an equitable issue, and prays for the reformation of the lease entered into between him and his landlord. It is alleged by the defendant tenant that:

“During the negotiations and at all times represented to the defendant that he [plaintiff] would drain or cause to be drained a certain 70 acres of said premises that were wet and unfit for cultivation, as an inducement for the defendants to enter into said lease; and that at the time the said lease was executed, by mistake of the parties to said lease, the said particular 70 acres were not described and the representations as to. draining the same were omitted from said lease with the exception that there was inserted and indorsed on. said lease the following: 'Second parties [tenant] agree to haul all tile and fill all the ditches without charge, for all tile work performed during this lease. Second parties agree to board all men hired by the first party for 35 cents per meal, and to furnish all lodging without charge. ’ ”

It is further alleged that the landlord failed to drain the said 70 acres as he had promised so to do before corn planting [205] in 1920, -whereby the tenant Welder was unable to cultivate said 70 acres. The prayer of the counterclaim is that the written lease be reformed to contain the covenant of the parties and to express the real agreement of the parties to said lease and that the said lease be reformed “to contain that the plaintiff or parties of the first part will drain said 70 acres in time for the corn planting season of 1920.”

Upon the consolidation of the three cases for the purposes of trial the court indicated that the issue in equity as presented by the counterclaim of the defendant Welder would first be determined and with this understanding the cause proceeded to trial. The court found in favor of the defendant Welder and decreed the reformation of the lease leaving all other issues for the determination by a jury.

If a contract as written fails to express the true agreement between the parties, equity will grant relief without regard to the cause of the failure to express the contract as actually made, whether it is due to fraud, mistake in the use of the language, or any other thing which prevented the expression of the true intention of the parties. Coleman v. Coleman, 153 Iowa 543.

To authorize a reformation there must be shown “such a degree of proof as will produce in an unprejudiced mind the belief and the conviction of the truth of the fact asserted taking into consideration all the surrounding facts and circumstances. ’ ’ Rensink v. Wiggers, 99 Iowa 39.

In eases of this character the so-called parol evidence rule finds no application and it is competent to show the conversations and the surroundings of the parties to the contract prior to its execution. What was said prior to the execution of the contract was an inducement for its execution, and it is so alleged. The primary object is to have the contract express the real agreement and if the evidence is such that the unprejudiced mind “readily reaches a satisfactory conclusion as to the existence or nonexistence of a fact in dispute then the evidence is of necessity clear and _ satisfactory. ” Good Milking Machine Co. v. Galloway, 168 Iowa 550.

A court will not write a contract for the parties in the first instance, and if all the facts in the execution of the contract were equally within the knowledge- or the means of knowl[206] edge of the parties thereto before the signing thereof, equity will not reform. Defendant Welder testified that he thought the language of the lease relative to tiling was broad enough to express the understanding had prior to their meeting in the bank. The statement of the landlord “I will put it in the lease” seems to have lulled Welder into a feeling of security and confidence. Furthermore the tenant was not the dominant personage in the transaction.

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Costello v. Stokely Grain Co., 193 Iowa 203 (iowa 1922).

193 Iowa 203 (Costello v. Stokely Grain Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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