Gendler Stone Products Co. v. Laub

179 N.W.2d 628, 1970 Iowa Sup. LEXIS 869
CourtSupreme Court of Iowa
DecidedSeptember 24, 1970
Docket54160
StatusPublished
Cited by25 cases

This text of 179 N.W.2d 628 (Gendler Stone Products Co. v. Laub) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gendler Stone Products Co. v. Laub, 179 N.W.2d 628, 1970 Iowa Sup. LEXIS 869 (iowa 1970).

Opinions

MOORE, Chief Justice.

This appeal is from a judgment of the trial court interpreting a lease and an addendum thereto and finding plaintiff in default of payment of its 1969 advance royalty to defendants under the terms thereof. We reverse.

Plaintiff’s petition in equity asked the trial court to find, (1) the limestone and gravel lease, dated June 16, 1958 and the addendum thereto dated April 22, 1969 to be in full force and effect, (2) the notice of cancellation and termination served by defendants be held null and void and (3) plaintiff entitled to an order restraining defendants from doing anything which might interfere with plaintiff’s rights under the terms of the lease.

The cause was submitted to the trial court on a stipulation of facts where adverse rulings against each of plaintiff's claims were made. They constitute plaintiff's three propositions which are here assigned for a reversal.

The original lease, a limestone and gravel lease of real estate, was for a term of 20 years, to commence on the date of its execution, June 16, 1958. The lessors were Ira Dale Laub and Dollie v. Laub. The lessee was Herman E. Snater. His attorney prepared the original lease. The record does not disclose who prepared the addendum. The lease required the lessee to pay the lessors a royalty of ten cents per unit of sale, being either a ton or cubic yard for all limestone and gravel removed from the premises of the lessors and marketed. The lease provided if any royalty or rental in lieu thereof be not paid within 30 days after the due date lessors might terminate the lease by giving lessee written notice of termination within 15 days after the end of said 30-day period.

Our concern here is with item 4(c) of the original lease as changed, altered or modified by the terms of the addendum, Item 4(c) of the original lease provided:

“For each lease year in which Lessee does not mine, quarry, or market limestone or gravel from deposits on the land aforesaid for a period of nine consecutive calendar months or more, Lessee shall pay Lessor an annual rental of $100.00. Such •rental shall be in lieu of mining, quarrying, marketing, and royalty, and each of them. Such rental shall not be deducted from royalty. A lease year begins on the date hereof and on each anniversary of such date. The rental shall not be payable for the period of exploration and prospecting. The annual rental shall be due for any lease year, for which it may be payable thirty (30) days after the end thereof.”

On April 22, 1959, a little more than ten months following the execution of the original lease the parties thereto entered into an agreement which they categorized as an addenda, the pertinent provisions of which are:

“It is mutually agreed:

“1. That provision contained in the original lease under Paragraph numbered Four (4), (c) providing for annual rental of One Hundred Dollars ($100.00) per year for each year in which the Lessee does not mine, quarry, or market limestone or gravel is stricken from such lease.

“2. In substitution thereof, it is agreed that Herman E. Snater as Lessee, or his assigns, will pay the sum of One Thousand Dollars ($1000.00) per year, starting this date, as advance royalty to the lessors until such time as limestone is quarried from said premises for commercial use and royalty paid therefor, at which time first royalties will be applied against such $1000.00 per year advance payments.”

On October 22, 1963 Snater assigned all his interest in the lease to Schildberg Construction Company, Inc. On May 15, 1964 Schildberg assigned to Annette Gend-ler Isaacson and Everett Gendler who eleven days later assigned said lease to [630]*630Gendler Stone Products Co., Inc., plaintiff herein. Defendants are the successors in interest to the original lessors. When they became so is not shown by the record.

The parties’ stipulation submitted to the trial court includes:

“9. That payments by the Lessees to the Lessors of advance royalties pursuant to Paragraph 2 of the Addenda to Lease dated April 22, 1959, as substituted for Paragraph 4(c) of the Lease, were made as follows:

April 22, 1959 - $1,000.00
April 21, 1960 - $1,000.00
April 20, 1961 - $1,000.00 (Two payments
June 8, 1961 - $1,000.00 made in 1961;
June 19, 1963 - $1,000.00 none in 1962)
June 15, 1964 - $1,000.00
June 16, 1965 - $1,000.00
July 9, 1966 - $1,000.00
June 15, 1967 - $1,000.00
June 17, 1968 - $1,000.00
Postmarked - Aug. 1, 1969 - $1,000.00

“10. On August 1, 1969, Plaintiff (Lessee) mailed and postmarked by ordinary mail to Defendant the check referred to in Paragraph 9 above in the amount of $1,000.00 in payment of the advance royalty required under the terms of numbered paragraph 2 of the Addenda to Lease.

“11. That Defendants (Lessors) received the check referred to in Paragraph 10 above on August 2, 1969.

“12. That on the 1st day of August, 1969, Plaintiff (Lessees) received the Notice of Cancellation and Termination by registered mail, notifying Plaintiff that the Defendants (Lessors) did hereby cancel and terminate the Limestone and Gravel Lease and Addenda thereto; that said Notice of Cancellation and Termination is marked Exhibit ‘C attached hereto and by this reference made a part of this Statement of Facts, and was mailed and postmarked July 31, 1969.

“13. That on the 5th day of August, 1969, the Plaintiff (Lessees) received back from the Defendants (Lessors) by certified mail the check in the amount of $1,-000.00 which Plaintiff heretofore sent to Defendants on August 1, 1969, and received by the Defendants August 2, 1969.

“14. That the check referred to in Paragraph 11 and 12 in the amount of $1,000.00 was tendered by the Plaintiff and deposited with the Clerk of the above named Court at the time the Petition was filed in this matter pending the determination of this cause by the Court.”

I. This cause being in equity our review is de novo. Rule 334, Rules of Civil Procedure. Credibility of witnesses is not involved as all facts were stipulated. The primary problem presented is the proper interpretation of the lease and addendum. The thrust of plaintiff’s contention is the due date of advance royalty payments is April 22. Defendants assert that date is June 16. Each argues conduct of the parties supports their respective claims.

II. When the court is asked to interpret a contract which the parties made for themselves the object is to ascertain the meaning and intention of the parties as expressed in the language used.

We have said that in determining the actual significance and proper legal meaning of the agreement, extrinsic evidence throwing light on the situation of the parties, the antecedent negotiations, the attendant circumstances and the objects the parties were striving to attain is necessarily regarded as relevant. See Hamilton v. Wosepka, 261 Iowa 299, 306-307, 154 N.W.2d 164, 168-169.

Here the stipulated facts did not bear on these factors.

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Bluebook (online)
179 N.W.2d 628, 1970 Iowa Sup. LEXIS 869, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gendler-stone-products-co-v-laub-iowa-1970.