Eagle Tail, Inc. v. Orris

367 P.2d 700, 69 N.M. 386
CourtNew Mexico Supreme Court
DecidedJanuary 5, 1962
DocketNo. 6896
StatusPublished
Cited by3 cases

This text of 367 P.2d 700 (Eagle Tail, Inc. v. Orris) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eagle Tail, Inc. v. Orris, 367 P.2d 700, 69 N.M. 386 (N.M. 1962).

Opinion

MOISE, Justice.

On May 20, 1946, a lease agreement was entered into between Eagle Tail, Inc., plaintiff-appellant herein, and Mrs. Lina H. Orris, defendant-appellee, whereby a tract of land containing approximately 395.42 acres was leased by appellee to appellant for a term of years ending May 19, 1961, with a provision for renewal for an additional 15 years. This is a suit seeking specific performance of an option contained therein.

Article X of the lease, insofar as the same is material to a decision here read as follows :

“The lessor hereby gives and grants to the lessee the right and privilege, at its option and election, of purchasing the leased premises for a total purchase price to be determined on the basis of $75.00 per acre for the entire tract of land. Said option shall be exercised by the lessee, if at all, by mailing written notice to the lessor by registered mail at any time on or before the termination of this lease, or any renewal hereof. In the event that the lessee shall exercise •said option as above provided, then immediately upon the mailing of such notice it shall be deemed and considered that the parties hereto have thereby agreed upon the sale and purchase of •said premises, under the following terms and conditions: * *

On September 20, 1949, a letter was. sent by appellant to appellee containing the following language:

“In connection with Paragraph X of our leasehold agreement dated May 20, 1946, we understand that you desire some assurance from us that in case we should exercise the option to purchase, we would give you at least sixty days advance notice of our intention to exercise the option so that you might have the advantage of this information in handling your other business affairs.
“Accordingly we hereby agree that if we exercise the purchase option at any time prior to the calendar year 1976, we will advise you in writing of our intention to exercise the option at least sixty days prior to the actual exercise of the option.”

As early as September 5, 1956, appellant advised appellee that although it was not exercising its option at the time, it intended to do so in the future. Thereafter, starting about March 28, 1958, and continuing to July 21, 1958, a series of letters passed fror.. appellant to appellee, the general tenor of which is demonstrated by four which we quote. On March 28, 1958, the following notice was sent:

“Notice of Election to Exercise Option Under Provisions of Leasehold Agreement, dated May 20, 1946.
“To: Mrs. Lina H. Orris “1294 College Avenue “Topeka, Kansas
“The undersigned, Eagle Tail, Inc., a corporation, as lessee, in accordance with and as provided by the terms and provisions of that certain written Leasehold Agreement, particularly Paragraph X thereof, dated May 20th, 1946, between Mrs. Lina H. Orris, as Lessor and Eagle Tail, Inc., a corporation, as Lessee (the same being filed for record June 7,1946 and duly recorded in Volume 42 at page 488 of the Miscellaneous Records of Colfax County, New Mexico) the same being made a part hereof in its entirety by this reference as though set forth at length herein, does hereby give written notice that it elects to exercise the right and privilege of purchasing the said leased premises described in said leasehold agreement for the total purchase price of $75.00 per acre for the entire tract of land.
“This notice is given while said lease is in full force and effect.
“That a copy of said leasehold agreement is annexed hereto and made a part hereof.
“This notice is sent via registered mail in accordance with the terms and provisions of said leasehold agreement.
“You will govern yourself accordingly and in accordance with the terms and provisions of said leasehold agreement.
Dated and signed this 29th day of March, 1958.”

On April 25, 1958, appellant wrote as follows :

“Your letter of April 18, 1958 with check enclosure has been received. By letter dated September 5, 1956, you were advised by us as follows :
“ 'We feel that to protect our investment at Eagle Tail Airport will require our eventual purchase of the land.
“ While this letter is not an exercise of our option, we would like to know whether you would be interested in selling us the entire tract of land under any terms other than those expressed in the leasehold agreement.’
“Thereafter, some time between the 20th day of September and the 8th day of October, 1956 in a meeting with us in your motel room in Colorado Springs, Colorado, you were orally advised that we intended to exercise the option contained in paragrant X of the Leasehold Agreement dated May 20, 1946 unless different terms of sale were agreed upon. In response to this oral notice, you advised us in substance that if we exercised this option you would be a bearcat.
“Following this meeting, we have been in more or less constant negotiation with you on the acquisition of this property and no agreement has been reached,
“Then on March 28, 1958, we mailed you a written notice of election to exercise option, which you have received.
“On April 14, 1958, we mailed you our letter containing Cashier’s Check in the amount of $7,414.13 which you received and which you returned to us with your letter of April 18, 1958. We do not know what position you may eventually take as to the validity of our letter of September 20, 1949, which you mention in your letter to us dated April 18, 1958. Regardless of whether our letter of September 20, 1949 is a valid modification of the Leasehold Agreement between us dated May 20, 1946, we wish to protect our rights under any eventuality-
“Accordingly, we are returning herewith Cashier’s Check No. 47140 of the First National Bank in Raton dated April 14, 1958 in the sum of $7,414.13, representing the initial payment of twenty-five per cent of the total purchase price of the property calculated on a total of 395.42 acres, all in accordance with paragraph X of the Leasehold Agreement dated May 20, 1946 as the same may or may not be amended by our letter of September 20, 1949 and in accordance with the Notice of Election to Exercise Option heretofore mailed to and received by you.
“The date of the exercise of said option shall be fixed and determined in the light of and in view of all matters hereinbefore set forth, our previous correspondence and conversations, the provisions of the Leasehold Agreement dated May 20, 1946 and any valid amendment thereof, our Notice of Election to Exercise Option, and our letter of April 14, 1958 to the end that our actions shall constitute a timely and effective election to exercise said option regardless of whatever position you may take in attempting to prevent us from effectively and timely exercising said option.

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Bluebook (online)
367 P.2d 700, 69 N.M. 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eagle-tail-inc-v-orris-nm-1962.