Fenter v. Homestead Development and Trust Co.

413 P.2d 579, 3 Ariz. App. 248, 1966 Ariz. App. LEXIS 595
CourtCourt of Appeals of Arizona
DecidedApril 26, 1966
Docket2 CA-CIV 146
StatusPublished
Cited by9 cases

This text of 413 P.2d 579 (Fenter v. Homestead Development and Trust Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fenter v. Homestead Development and Trust Co., 413 P.2d 579, 3 Ariz. App. 248, 1966 Ariz. App. LEXIS 595 (Ark. Ct. App. 1966).

Opinion

STEVENS, Chief Judge;

This is an appeal from a judgment in a forcible detainer action in favor of plaintiff-appellee against defendants-appellants. The action involves the members of a prominent Tucson attorney’s family and a family corporation. The defendants are the sister and brother-in-law of the plaintiff’s president, Don Hummel. The plaintiff is a family corporation in which defendant Floss Fenter, her four brothers and two sisters are the sole shareholders. The sole asset of the corporation is the land in question, approximately 3200 acres of basically patented mining claim land.

The record shows that the defendants’ initial possession of the land in ,1936 was peaceful. During the depression the defendant, W. C. Fenter was experiencing financial problems along with many other professional people and having a ranching background, by a family arrangement, the defendants occupied the land for the purpose of raising cattle. At this- -time the title to the land was held by- the plaintiff’s predecessor in title, Casa de Sueños, a family corporation in which defendant Floss Fenter’s four brothers were the sole, stockholders. According to Don Hummel’s testimony, he prevailed upon his father to allow the defendants to occupy the land and loaned them money to get established. The record is not clear whether he was acting in a corporate capacity in this regard. Under the terms of this oral agreement the defendants were to pay the taxes and maintain the property. However, initially the defendants were unable to pay the taxes and such were paid either by Don Hummel or his father until the year 1961.

Some time after the Fenters entered into possession, the title was transferred from Casa de Sueños to the plaintiff corporation. This transfer was prior to the events hereinafter set forth in this opinion.

In the year 1961 the Fenters were informed that they must pay the taxes on the property and pay rent or vacate the property. Thereafter the- Fenters called upon Don Hummel after office hours and *250 lie prepared a longhand memorandum which Mrs. Floss Fenter signed. According to the testimony of Don Hummel, her husband; W. C. Fenter, was present. The writing is as follows:

“ May 9, 1961
“Homestead Development & Tr. Co.
“I, Floss Fenter hereby agree that I will pay rent on the Santa Rita Placers Property for use as a cattle ranch for such time as the property is not sold on a monthly payment of two hundred dollars ($200.00). This is on the basis of an average number of 100 head of stock. In the event that the average runs over ten percent higher I will pay $2.00 per month per head of stock for such overage.
“This shall not be construed as an agreement to lease this property for any specific term.
“Payment shall be made monthly or at the time of sale of the stock each year at the option of Floss Fenter.
“The consideration of this agreement is the permission to continue to occupy these premises for a cattle ranch.
/s/ Floss Fenter”

The rent was not paid for 1961 nor during the year 1962 and on the 30th of November 1962, W. C. Fenter and the Fenters’ son Dale, a lawyer, executed a document reciting in part:

“WHEREAS, W. C. FENTER and FLOSS FENTER, husband and wife, are occupying the premises known as the Santa Rita Placers, Pima County, Arizona, as a cattle ranch, and
“WHEREAS, it was agreed in April, 1961, that the rent for the use of said property should be a minimum of $200.00 per month based on grazing for 100 head of cattle, and
“WHEREAS, there is now due and unpaid as rent on said property to the Homestead Development and Trust Company, the sum of FOUR THOUSAND DOLLARS ($4,000.00) to December 31, 1962, and * * *”

Pursuant thereto $4,000 of Mrs. Fenter’s funds were paid to the plaintiff and after deducting certain corporate expenses the unused balance was paid to the 7 stockholders in equal shares, Mrs. Fenter’s share having been transmitted to Dale Fenter. Dale Fenter met an untimely death in an airplane accident between the happening of these events and the time of trial.

Other than the $4,000 heretofore men-, tioned, no rent was paid. A special stockholders meeting of the corporation was called for February 1965 and notice was given to all of the owners of the stock including Mrs. Floss Fenter. She did not attend the meeting. All other stockholders attended in person or by proxy. At that time it was determined to recover possession of the ranch and to collect the past due rent. On 11 March 1965, a demand was made, proper notice was served and shortly thereafter the suit in question was filed.

The complaint alleged a written lease, it alleged that the lease had expired by reason of the failure to pay rent since 31 December 1962 and asked for possession.

The answer denied any lease, urged the two year statute of limitations and set forth as an affirmative defense that the plaintiff had never been in possession of the property, was not entitled to possession and was estopped to deny that the defendants were entitled to. possession. The answer plead' as the basis for the claimed estoppel the possession since 1936 and the construction of the improvements upon the property in reliance upon possession and ownership rights all without objection. The evidence disclosed that during the period of the defendants’ Fenter occupancy they expended funds in the improvement of the land to better enable them to raise cattle and to improve their living facilities.

Before trial the complaint was amended to add a paragraph alleging an arrearage of $5,600 in rent. There was no modifica *251 tion of the prayer which remained a prayer for restitution “and for such other and further relief as Justice shall require”. The case was tried to the jury. The 1961 and 1962 writings were received in evidence. During the trial there were denials by Mrs. Floss Fenter that she signed the 1961 writing; that her son Dale Fenter had any authority to act for her in relation to the 1962 writing or that she received the above mentioned dividend. Her husband, W. C. Fenter, denied any knowledge of the 1961 writing and he denied his signature on the 1962 document. When the plaintiff rested it was urged that the 1961 writing was not a lease there being a want of mutuality. Over the defendants’ objection, the court permitted the plaintiff to amend the complaint to conform with the proof to allege:

“that the Defendants rented the said property from the Plaintiff under the terms of an agreement evidenced by a writing signed by a party to be charged and that said party failed and neglected to comply with the terms of said agreement by reason of failure to pay rent since December 31, 1962”.

The court ruled that the December 1961 writing was a memorandum of an agreement which was signed by a person to be charged, namely Mrs. Floss Fenter and that by the 1962 writing her husband, W. C. Fenter, ratified the agreement.

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Bluebook (online)
413 P.2d 579, 3 Ariz. App. 248, 1966 Ariz. App. LEXIS 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fenter-v-homestead-development-and-trust-co-arizctapp-1966.