First National Bank v. Stoyanoff

349 P.2d 1016, 137 Mont. 20, 1960 Mont. LEXIS 3
CourtMontana Supreme Court
DecidedMarch 7, 1960
DocketNo. 9888
StatusPublished
Cited by3 cases

This text of 349 P.2d 1016 (First National Bank v. Stoyanoff) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank v. Stoyanoff, 349 P.2d 1016, 137 Mont. 20, 1960 Mont. LEXIS 3 (Mo. 1960).

Opinions

MR. JUSTICE CASTLES

delivered the Opinion of the Court.

This is an appeal from a judgment in favor of the plaintiff, First National Bank, in the amount of $8,500.44, after a motion for a new trial had been denied. The action was brought in equity by plaintiffs and respondents, the First National Bank of White Sulphur Springs and J. W. Home, James J. Home, and Water Ray Home, demanding an accounting by the defendant and appellant, Sam Stoyanoff.

The plaintiff, J. W. Home, is the father of the other plaintiffs, James and Walter Home. Hereafter they shall be referred to collectively as simply the Homes. Stoyanoff, the defendant and appellant here, will be referred to as defendant. The plaintiff First National Bank will be referred to as the Bank,

[22]*22Defendant was the owner of a sheep ranch in Meagher County and on November 15, 1952, he entered into a one-year lease and management agreement with the Hornes, whereby the defendant leased to the Hornes his sheep ranch, certain designated farm machinery and turned over to the Hornes the care and custody of 2,460 sheep. The Hornes entered into possession of the ranch and the parties evidently operated satisfactorily under this agreement during the farm year of 1953 as no controversy arose during this period.

On October 12, 1953, the parties entered into another agreement, with certain modifications, renewing the prior agreement for another year until November 15, 1954. Under the renewed agreement, the Homes continued in possession of the premises and custody of the personal property. They covenanted and agreed to care for the sheep, put up the hay crop, plant certain grain crops and generally to care for the defendant’s ranch and personal property in a careful manner according to sound ranching practices. In return, the Homes were to receive one-half of the gross revenue from the sale of the lamb crop and the wool, defendant having the right of sale. To provide the Homes with operating expense monies, the defendant agreed to advance the sum of $150 per month; reimbursement to be made to the defendant for these advancements from the first monies received from the sale of the wool and lamb crop. The agreement expressly provided that the Hornes could not assign any interest in the agreement or sublet the premises, and the Hornes were required to care for the property, both real and personal, for the full term up to and including the 15th day of November 1954, before they would be entitled to their share of the gross revenue from the lambs and the wool. Additionally, the Hornes were obligated to perform certain specific tasks such as the building of one and three-quarter miles of fence on the premises, provide the defendant with forty sacks of potatoes at the termination of the agreement, and to leave upon the premises at the termination date an amount of baled hay [23]*23equal in amount to that turned over to the Hornes on November 15, 1952.

The Hornes continued in possession of the premises during the winter of 1953-1954, and in March of 1954 the defendant, with the consent of the Homes, contracted the lambs for fall delivery. During the 1954 season the defendant advanced to the Hornes the total sum of $7,385.51. It is undisputed that the defendant sold the 1954 wool crop and the 1954 lamb crop, receiving gross amount of $34,783.62. No full accounting was had between the parties.

Early in 1954, the Hornes borrowed from the Bank, the other plaintiff, certain amounts of money, amounting to $4,500. In return, the Bank after viewing the aforementioned management contract between the Hornes and the defendant Stoyanoff took promissory notes from the Hornes in the usual form; and the Hornes purported to execute a chattel mortgage to the bank as security for the note and further advances. The chattel mortgage purported to cover an undivided one-half interest in and to 1,900 mixed lambs located on the defendant’s ranch. Subsequently after the termination of the agreement, and after a failure to arrive at an accounting between the parties, the Bank took from the Homes an assignment to all their right and interest under the contract with defendant. This suit followed, the parties thereto being as above stated.

During the period of 1954, certain disagreements arose between the parties to the ranching contract. The disagreements culminated in the Homes leaving the ranch one month prior to the full term. It was the defendant’s contention that the Homes failed to live up to certain promises contained in the contract to perform certain duties such as the building of the fence, the leaving of hay and potatoes, and remaining the full term.

The complaint alleged the execution of two ranching agreements, the three promissory notes and the chattel mortgage as well as the comprehensive assignment to the Bank by the Hornes [24]*24and sets forth these agreements as exhibits. The complaint further alleged that at the time of the execution of the chattel mortgage, the Homes were the owners of an undivided one-half interest in and to the sheep, alleged the sale of the lambs and wool by the defendant, a demand for an accounting by the defendant and his repeated refusal and prayed that the plaintiffs have judgment for an accounting by the defendant and money judgment in favor of the Bank for the amount determined due from defendant. The defendant filed a motion to make more definite and certain, which was overruled; and then filed general and special demurrers which were likewise overruled.

The defendant in his answer admitted the existence of the agreements and admitted that on July 24, 1954, there were 1,-900 mixed lambs belonging to> the defendant on his ranch. Defendant denied that the Homes were at any time the owners of any interest in and to the lambs and denied generally the remaining allegations of the complaint. As an affirmative defense, the defendant alleged the abandonment of the ranch and premises prior to the end of the term, failure to perform the covenants and promises of the agreement, and neglect of ranch property and sheep, and alleged that this neglect and failure to live up to the contract occurred subsequent to the receipt of funds by the Hornes from the Bank. It is further alleged that the defendant accounted to the Hornes immediately after the sale of the lambs and demanded that the Homes perform and comply with the contractual obligations entered into and further alleged that the Hornes neglected to perform or account to the defendant. The defendant further alleged that by reason of the Hornes’ failure to comply with the provisions of the contract the defendant was damaged in excess of any amount owed by him to the Hornes and prayed that the Hornes be required to give accounting to the defendant and that the plaintiffs take nothing by their action.

The plaintiffs replied by an amended reply which asserted the [25]*25Homes performed all of their obligations under the agreement until the 14th day of October 1954, and alleged that the actions of the defendant made it impossible for the Homes to remain any longer on the premises.

The appellant, defendant below, specifies some nine errors. The first two specifications go to the pleadings themselves, particularly that the complaint, not stating performance in any manner, is fatally defective, that the demurrers should have been sustained, and the objections to the introduction of any evidence, because the complaint failed to state a cause of action, should have been granted.

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Cite This Page — Counsel Stack

Bluebook (online)
349 P.2d 1016, 137 Mont. 20, 1960 Mont. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-stoyanoff-mont-1960.