Enders v. Wesley W. Hubbard and Sons, Inc.

513 P.2d 992, 95 Idaho 590, 71 A.L.R. 3d 767, 1973 Ida. LEXIS 317
CourtIdaho Supreme Court
DecidedJuly 9, 1973
Docket11075
StatusPublished
Cited by18 cases

This text of 513 P.2d 992 (Enders v. Wesley W. Hubbard and Sons, Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Enders v. Wesley W. Hubbard and Sons, Inc., 513 P.2d 992, 95 Idaho 590, 71 A.L.R. 3d 767, 1973 Ida. LEXIS 317 (Idaho 1973).

Opinion

*591 BAKES, Justice.

This appeal involves the enforceability of a lease extension agreement covering approximately 1,000 acres of real property near Soda Springs, Caribou County, Idaho.

On March 29, 1960, Mary Enders Sheridan and her husband, Arthur P. Sheridan, as lessors, entered into a lease agreement with Wesley W. Hubbard & Sons, Inc., an Idaho corporation, covering the 1,000 acres of real property involved in this appeal. The terms of the lease were ten years (April 1, 1960, to March 31, 1970), at $4,000 per year, with an option for a five year renewal. The lease was drafted by the lessor’s attorney and the $4,000 annual rental was also fixed by the lessors.

In April, 1965, the lessor, Mary Enders Sheridan, who apparently owned the 1,000 acres as her separate property, initiated negotiations with respondent corporation for a long term lease extension agreement on the property in order to provide income for her family, and to keep the property intact for her granddaughter, Vickie Christensen, one of the appellants herein. The extension agreement was again prepared by lessor’s own attorney and was delivered to Mrs. Sheridan who deferred signing until she could talk to her son, Glen Enders. On October 14, 1965, Mrs. Sheridan, who was 81 years of age and suffering from cancer, signed the extension agreement. Subsequently, in January, 1966, Mr. Sheridan signed the extension agreement. The agreement continued and extended the existing lease for an additional twenty years to March 31, 1990, on the same terms and conditions as the original lease, including the $4,000 yearly rental.

Mrs. Sheridan died on March 11, 1966, and her son Glen Enders died on April 21, 1966. Olive Enders, one of the appellants herein, is the widow of Glen Enders, and under the wills of Mrs. Sheridan and Mr. Enders has received two thirds of the real property involved in this appeal. Vickie Christensen, daughter of Glen and Olive Enders, and the other appellant herein, received the other one third of the property.

In March, 1970, respondent corporation tendered to appellants the annual rental payment of $4,000 for the year 1970. Appellants refused to accept this tender and on April 1, 1970, served a notice of termination of the lease and a notice to vacate the premises. Plaintiff-appellants Enders and Christensen then brought this action on May 4, 1970, alleging the following claims for relief: first, that the original lease had terminated and that respondent was holding over on the premises without permission of appellant even after being given written notice. Further, appellants alleged that respondent had failed to properly maintain and operate the property pursuant to the original lease agreement. Appellants also alleged in their complaint that respondent had breached the original agreement by subleasing the property to others for grazing purposes without obtaining written permission. In their second cause of action, appellants alleged that Mr. and Mrs. Sheridan were very elderly persons in ill health and were not fully competent to enter a contract, and therefore the extension agreement should be declared null and void by reason of undue influence and inadequate consideration.

The trial was held in September, 1971, and in a judgment entered on December 10, 1971, the trial court, having sat without a jury, determined that appellants should take nothing by their complaint, that respondent corporation had not breached the terms of the agreement, and that the extension agreement is valid and that the respondent corporation is entitled to quiet enjoyment of the leased property.

Appellants in their assignments of error contend that the trial, court erred in failing to declare that respondent breached both the original and the extended lease by failing to properly maintain and develop quality grasses on the property, by failing to develop and utilize the irrigation system, and by permitting sections of the property to develop into swampland. Appellants contend that the trial court erred in failing to declare the extension invalid because of *592 the incompetence of the Sheridans at the time the extension agreement was executed, that the agreement was not supported by consideration and that the rental payments are grossly inadequate.

Appellants contend that permitting other ranchers to graze their cattle on the leased property constituted a breach of the lease provision prohibiting subleasing without permission. Appellants further contend that the trial court erred in determining that the five year lease option and the extended lease were merged, and finally appellants argue that the trial court erred in failing to award a reasonable rental of $10,000 per year and that it was error to grant respondent possession of the property.

Regarding these assignments of error concerning the operation of the ranch, appellants claim that the original lease agreement was breached by respondent’s failing to properly maintain and develop the leased property as called for in the original lease. The trial court, after hearing the evidence, personally viewed and observed the condition of the premises and found that “there is substantial evidence that the defendant (respondent) has performed the lease terms and operated the premises in a farmer-like manner . . . . ” Although there was conflicting evidence as to the maintenance of the leased property, it is a rule of long standing in this Court that the trial court is the arbiter of conflicting evidence, Brammer v. Brammer, 93 Idaho 671, 471 P.2d 58 (1970), and that the findings of fact of the trial court will not be disturbed on appeal if supported by substantial and competent, though conflicting, evidence. Reardon v. Union Pacific R. R., 93 Idaho 833, 475 P. 2d 370 (1970); Olson v. Quality-Pak Co., 93 Idaho 607, 469 P.2d 45 (1970).

Appellants’ second contention on appeal regarding the alleged incompetence of Mrs. Sheridan at the time of execution of the lease extension is also without merit. Mrs. Sheridan was seriously ill during this period of time. However, the trial court specifically found that “Mary Sheridan, at the time of and prior to the execution of the agreement, was acting voluntarily and was competent as evidenced by the fact that she was operating and managing her hotel business, supervising employees, writing checks, making purchases, (and) traveling alone by bus.”

This Court in Olsen v. Hawkins, 90 Idaho 28, 408 P.2d 462 (1965), stated regarding competency to enter into a contract:

“It is a fundamental rule that the law will presume sanity rather than insanity, competency rather than incompetency; that every man is capable of managing his own affairs and responsible for his own acts. Likewise it is presumed that each man is capable of understanding the nature and effect of his contracts. “It may also be stated that as a general rule, all proceedings involving the competency of an individual to execute a valid contract start with the presumption of competency and that this presumption may be relied upon until the contrary is shown. (Omitting citations).” 90 Idaho, at 33, 408 P.2d at 464.

The Court in Olsen

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Bluebook (online)
513 P.2d 992, 95 Idaho 590, 71 A.L.R. 3d 767, 1973 Ida. LEXIS 317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/enders-v-wesley-w-hubbard-and-sons-inc-idaho-1973.