Grosland v. Wyborny

406 N.W.2d 453, 1987 Iowa App. LEXIS 1559
CourtCourt of Appeals of Iowa
DecidedMarch 31, 1987
Docket86-723
StatusPublished
Cited by1 cases

This text of 406 N.W.2d 453 (Grosland v. Wyborny) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grosland v. Wyborny, 406 N.W.2d 453, 1987 Iowa App. LEXIS 1559 (iowactapp 1987).

Opinion

SACKETT, Judge.

Plaintiffs Carl J. and H. Arlene Grosland (landlords) leased an 80-acre tract of farmland in Worth County to Defendant Gregg Wyborny (tenant) for the term commencing March 1, 1984 and ending March 1, 1985. There was a written lease typed by Plaintiff Carl Grosland. The written lease was a cash rent lease and provided for cash rent of $9,100. The rent was to be paid in two installments; the first installment of $4,550 was due March 1, 1984, and the second installment of $4,550 due November 1, 1985.

The tenant entered into possession of the land and farmed it in the 1984 crop season. He paid the rent installment due March 1, 1984. After November 1, 1984, the landlord called the tenant to see where the November installment of rent was. The tenant said the second installment was not due until 1985. The landlord said the November 1, 1985, was a typographical error and it should have read November 1, 1984. The tenant claimed he had contracted to pay the second installment November 1, 1985.

On January 4, 1985, the landlords filed a petition in equity seeking reformation of the lease contending it was agreed between the parties the second installment of rent was due November 1, 1984, not 1985, as provided in the written lease. The landlords asked that the lease be reformed.

On January 23, 1985, the landlords filed a second action. The second action was at law. It alleged the second installment of rent had accrued and was unpaid although it was subject to a determination as to when due. The landlords requested a writ of attachment for landlords lien issue.

After the law action for landlords attachment was filed, the Worth County Clerk issued a landlords attachment directing the sheriff to levy on that personal property used or kept for sale on the premises in an amount necessary to satisfy the second installment. The sheriff subsequently levied on 2,000 bushels of tenant’s corn. The tenant then counterclaimed for wrongful attachment. The actions were consolidated for trial. The trial court determined the lease was highly unusual and in all likleli-hood not what the landlord intended. The court went on to determine the November 1, 1985 date was clearly stated and the landlord had failed to show a mutual mistake or deception by the tenant. The court dismissed the reformation action and went on to determine the landlords attachment was wrongful and awarded the tenant damages.

The landlords appeal contending (1) they were entitled to reformation, (2) the landlords attachment was not wrongful, and (3) the tenant was not entitled to damages.

I. Reformation

Our review is de novo. Iowa R.App.P. 4. The proper relief for a mutual mistake of a material fact in a written instrument is reformation of the instrument to reflect the true intent of the contracting parties. Kendall v. Lowther, 356 N.W.2d 181, 187 (Iowa 1984). One who seeks reformation of a written instrument has the burden of establishing by clear and convincing evidence that the instrument does not reflect the true intent of the parties either because of fraud or duress, mutual mistake of fact, mistake of law, or mistake of one party and fraud or inequitable conduct on the part of the other. Id.

Landlord Carl Grosland testified negotiations before the lease was entered into resulted in an agreement that installments of cash rent would be due in March and November, 1984. The tenant denies there was any discussion as to when the rent installments were to be made. He testified the lease terms were to be put down on paper. The tenant testified when the written lease was prepared it provided for the second installment to be paid in 1985. He testified Carl Grosland read the lease to him with the 1985 date and he contends he *455 entered into the lease because of the marketing advantage he would have because of the extended date for payment of the second installment.

Carl Grosland and tenant both testified a cash rent payment deferred over one year past the harvest season was not standard farm leasing procedure. The trial court determined it was an unusual leasing procedure. We too determine it to be a very unusual and inconsistent with regular farm leasing practices for the landlord to agree to wait for cash rent until one year past the time crops are harvested.

In Baldwin v. Equitable Life Assurance Company, 252 Iowa 639, 108 N.W.2d 66 (1961), the insured received a 20-payment life policy. The 20-payment life policy was issued at about the same time and in the same amount of an ordinary life policy. Baldwin, 252 Iowa at 643, 108 N.W.2d at 69. In rejecting the insured’s claim he should have the 20-year pay policy at the ordinary life rate, the Iowa court determined the life insurance business is so well established and controlled that the general public should be well aware of the differences between ordinary life contracts offered them by insurance companies and certain term payment life policies. Baldwin, 252 Iowa at 646, 108 N.W.2d at 70. The court found:

... A person would be suspect and not normal if, after discussing the differences with an agent, he would not be aware that a life policy requiring only twenty payments would require a larger premium than one where premiums were to be paid until death. We do not believe the plaintiff or his wife is in that class. He was therefore charged, as a reasonable ordinary person, with knowledge of that fact, and when the twenty-payment life contract did not show a larger premium than his ordinary life premium at the same age it was a mistake that he did or did not notice. If he did not notice it, the mistake was mutual. If he did notice the amount and said nothing, being under the false impression it was the correct one for such policy, the mistake was mutual, but if he noticed it and did not then call the company’s attention to it, he was guilty of inequitable conduct. In any of these cases a court of equity should, unless for some other compelling reason, reform the contract to include the proper premium for the class of insurance involved.

Baldwin, 252 Iowa at 646, 108 N.W.2d at 70-71.

We determine the rationale of Baldwin applies here. The tenant was a farmer who grew up in a farm family. He had leased other farmland. He was aware of standard leasing procedures. He was aware that the date for payment of the second installment in the written lease was unusual and not in accord with accepted farm leasing practices. When the lease showed the November 1, 1985, date it was a mistake he did or did not notice. If he did not notice it the mistake was mutual. If he noticed it and did not, as he testified, call it to the landlords’ attention, he was guilty of inequitable conduct. We determine the lease should be reformed to include the date of November 1, 1984 as the date the second installment of rent is due.

We have also considered Hughes v. Cardinal Federal Savings & Loan Association, 566 F.Supp. 834 (S.D.Ohio 1983). A portion of the loan agreements upon which suit was brought provided the lender was required to decrease interest rates as the “cost of money” increased.

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Bluebook (online)
406 N.W.2d 453, 1987 Iowa App. LEXIS 1559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grosland-v-wyborny-iowactapp-1987.