Heckman and Shell v. Wilson

487 P.2d 1141, 158 Mont. 47, 1971 Mont. LEXIS 340
CourtMontana Supreme Court
DecidedAugust 11, 1971
Docket11926
StatusPublished
Cited by13 cases

This text of 487 P.2d 1141 (Heckman and Shell v. Wilson) 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
Heckman and Shell v. Wilson, 487 P.2d 1141, 158 Mont. 47, 1971 Mont. LEXIS 340 (Mo. 1971).

Opinion

MR. JUSTICE DALY

delivered the Opinion of the Court.

This is an action by plaintiff Heckman and Shell, a partnership, against Frederick Wilson, defendant, arising out of a *49 cattle raising venture agreement. The cause was tried by the district court of Gallatin County, the Hon. Jack D. Shanstrom presiding, without a jury. From a judgment in favor of defendant the plaintiff appeals.

Don Heckman, Vern Heckman, and Clarence P. Shell comprise a partnership, plaintiff herein, that manages cattle ranches in Idaho, Nevada and Montana. Defendant Frederick Wilson is a Spokane realtor who has periodically invested in cattle raising operations.

The partnership leased the Flying D Ranch consisting of approximately 120,000 acres in Gallatin and Madison Counties, Montana, for a term extending from 1958 to 1968, to pasture and raise cattle. During the term of the lease Clarence Shell who had been in the cattle business most of his life, managed the Flying D Ranch. After December 1963, two herds of cattle were pastured on the Flying D Ranch, one belonging to the partnership, the other belonging to Frederick Wilson. This venture is the subject of this action.

In 1963 Wilson arranged to purchase a herd of cattle located in a feed lot in Three Forks, Montana. The sale was contingent upon Wilson locating lands upon which to pasture the cattle. At noon on December 4, 1963, Wilson and one Zucker, who assisted Wilson in purchasing the herd, arrived at the Flying D Ranch and spent the remainder of the day with Shell viewing the ranch and discussing a pasture agreement. Later that afternoon Shell drove Wilson and Zucker to the Gallatin County airport. Shortly before departing Wilson and Shell executed an agreement prepared by Wilson’s attorney. Several minor changes were made in the agreement, in pencil, by the parties. This agreement reads as follows:

“Dec. 4th, 1963
“This is an agreement between Heckman Brothers and C. P. Shell, 1st party of Flying “D” Ranch, Bozeman, Montana and Frederick Wilson, 2nd party.
“This is a cattle raising venture. 2nd party will furnish and *50 own all the-cattle. 1st party shall have full control and responsibility for the care and feeding of the cattle and all additions thereto in accordance with the best husbandry methods. At the beginning of the winter period which starts November 1st each year, 1st party agrees to have on hand not less than one ton of hay for each animal to be wintered. The cost of the hay and feeding thereof shall be on the obligation of 1st party. As compensation for so caring for and managing the cattle, 1st party will receive one-half of the calf crop.
“2nd parties half of the calf crop shall be made up of heifers which he will incorporate with his cattle for the purpose of building the herd. If there are not enough heifer calves to make up half the calf crop, then 2nd party shall receive the balance of his share in steer calves, [or vice-versa, F.W., C.P.S.]
“2nd party agrees to pay $75 per head per year for winter feeding his share of the calves for the first year after weaning and 1st party agrees to take care of them from then on.
“2nd party is to supply the bulls for this venture and 1st party to care for them. 1st party to care for all dehorning, vaccinating and necessary work to be done on all the cattle.
“All cattle and calves shall carry 2nd parties brand. Calves will be branded before they are two months old. 1st party shall not be held responsible for death losses which are not his fault. In case of an animals death, 1st party agrees to produce the hide with brand on it to 2nd party. 1st party will however be accountable to 2nd party for the fair market value at weaning time each year for all unaccounted for cattle. The value of the unaccounted for cattle shall be deducted from 1st parties share of the calf crop.
“A roundup and cattle count will be made in the spring and in the fall each year in the presence of 2nd party or his appointed agent. Split of the calf crop will be made on or about November 1st of each year.
“It is further agreed that at the expiration of this agree *51 ment 1st party shall have an option to buy any of the cattle herd at the then market price.
“If at any time, in 2nd parties opinion, he feels his cattle are not receiving proper care, he may remove them from 1st parties possession and terminate this agreement. [If three independent stockmen agree. F.W., C.P.S.]
“It is understood and agreed that this agreement is for a term of Five (5) years from Nov. 1st 1963 which coincides with 1st parties lease on the Flying “D” Ranch. If 1st party renews or extends its lease on said ranch, then 2nd party may at his option renew or extend this agreement for a similar term.
Heckman & Shell By C. P. Shell Frederick Wilson”

[Pencil changes]

The parties operated pursuant to the agreement during 1964, starting with a base herd of 224 head. Wilson received 93 heifers as his share and paid $25 per head for winter feeding. Financial problems arose thereafter and several adjustments as to feed costs and the number of cattle to be pastured were agreed upon by the parties.

During the winter of 1965, a portion of Wilson’s calves was fed at the Three Forks feed lot. Wilson offered $25 per head for the cost of that feeding as provided in his contract, but was refused and the partnership threatened to impose an “agister’s lien” for the feed lot cost and under such circumstances Wilson paid the feed lot price.

In the summer of 1966, the partnership was advised by their accountant that the arrangement with Wilson was not producing a profit and was sustaining a loss under the current payment schedule. This was due in part to the large number of bulls, dry cows and young heifers which resulted in a lower calf production. The partnership offered to buy Wilson’s cattle but he declined. In February 1967, the partnership *52 members, their attorney and accountant met with Wilson in G-rangeville, Idaho. Tentative agreement was reached relating to contract changes in regard to Wilson paying additional money for the feeding of the bulls, dry cows and young heifers and calves. The partnership also wanted the clause requiring proof of death by production of branded hides struck from the existing contract.

Upon his return to Spokane Wilson had his attorney prepare a memorandum of proposed' changes in the contract, but did not include any change in the proof of death clause. This document was forwarded on February 20, 1967 by Wilson’s attorney to the partnership attorney, with instructions that it be executed by all of the parties.

The evidence is in dispute between Shell and Wilson as it concerns the details of the transaction thereafter, but it was established that the document remained in Shell’s possession and was never signed by the partnership.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cunningham v. Harding
1999 MT 239N (Montana Supreme Court, 1999)
In Re Estate of Bolinger
1998 MT 303 (Montana Supreme Court, 1998)
Eiselein v. Montana Bank of Roundup
818 P.2d 365 (Montana Supreme Court, 1991)
Lindey's Inc. v. Professional Consultants, Inc.
797 P.2d 920 (Montana Supreme Court, 1990)
Smurthwaite v. Painter
755 P.2d 753 (Court of Appeals of Utah, 1988)
Massey-Ferguson Credit Corp. v. Peterson
626 P.2d 767 (Idaho Supreme Court, 1981)
Reaves v. Reinbold
615 P.2d 896 (Montana Supreme Court, 1980)
Rickett v. Doze
603 P.2d 679 (Montana Supreme Court, 1979)
Kupka v. Morey
541 P.2d 740 (Alaska Supreme Court, 1975)
Merritt v. Merritt
526 P.2d 1375 (Montana Supreme Court, 1974)
Pfister v. Brown
498 P.2d 1243 (Wyoming Supreme Court, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
487 P.2d 1141, 158 Mont. 47, 1971 Mont. LEXIS 340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heckman-and-shell-v-wilson-mont-1971.