In Re Estate of Grooms

216 N.W. 78, 204 Iowa 746
CourtSupreme Court of Iowa
DecidedNovember 15, 1927
StatusPublished
Cited by8 cases

This text of 216 N.W. 78 (In Re Estate of Grooms) 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
In Re Estate of Grooms, 216 N.W. 78, 204 Iowa 746 (iowa 1927).

Opinion

Morling, J.

I. The lessor now urges that the court below neither as a court of probate nor of chancery had jurisdiction to entertain the application, in that ! ‘ authority to carry on the contract was not asked as an incident of the administration of the estate, to close up the obligations connected with both the gravel business and the administration.” He says that “Grooms himself had not left any will authorizing his business to be carried on after his death,” and that the estate would have to be kept open for 19 years. It is said that the application was addressed to the discretion of the court, and that such discretion was properly exercised.

The lessor does not claim the status of a creditor. He volunteered in .the proceedings for administration, setting up his alleged rights under the contract. He asked ‘ ‘ an early hearing upon the application and these objections, that the rights of the parties may be speedily determined, as the season for gravel work is now opening up,” etc. His voluntary tender of an issue was accepted. At the trial it was stipulated that:

‘ ‘ In order that no question as to the jurisdiction of the probate proceedings may be involved, it is now stipulated and agreed that this cause shall stand, and it is now tried and submitted to final hearing at this time as in chancery.”

The parties voluntarily submitted to the judgment of the court their respective rights under the contract. The court found:

*748 “All parties in open court agree that the hearing now had is upon the merits, and that the decision thereupon shall be final in this court. * * * That said lease'-constituted a personal contract between the parties, and terminated with the death of said George W. Grooms. By reason whereof it is now ordered” that the objections of the lessor' be sustained, and application denied.

The district court is a court of general jurisdiction. It had jurisdiction of the subject-matter and of the persons of the parties. The parties in interest, according to the record, were the administratrix and the distributees. The claimant, whose rights to intervene are not above question, having procured a denial of the application, and seeking to retain the benefit of it, has no standing to deny the jurisdiction, or to assert that the order was a discretionary one in probate.

II. The lessor’s principal insistence is that the lessee’s rights under the lease were personal to him; that the contract was personal, not assignable, and did not survive to the administratrix or distributees. The lease is of 35 or 40 acres, lying astride the Des Moines River, and subject to overflow. It leases to “Grooms the surface use, and the sand and gravel rights in and to, and riparian and other rights incident to the following” premises, for five years from March 1, 1925. It provides that, “should Grooms make substantial investment in equipment and machinery installed on the property, he” shall, upon notice, have -the right to extend the lease for fifteen years, upon the same terms-.

“Purposes. Grooms covenants to vigorously utilize said land by extraction of the available sand and gravel resources and diligently farming the remainder of the available land described; and failing in which for a period of ninety days during the active season for such pursuits, this lease at the option of said Hardsocg may be declared terminated; the duty devolving on said Grooms hereunder to clear said land of brush,” etc.

Grooms was required to pay taxes.

“The said Hardsocg léases said land to said Grooms for said purposes and on said condition, and grants unto him the sole and exclusive right during the term to extract from such land, adjacent river banks and bed, remove and sell the avail *749 able sand and gravel, on condition that Grooms pay to Hardsocg Royalty of ten (10c) per yard, or seven cents (7c) per ton for all sand or gravel so extracted or removed from said described property, including tbe adjacent river bed, during the term. ’ ’

The payments were to be “accompanied by itemized statement verified by Grooms furnished to Hardsocg showing the basis on which such earnings are calculated. Hardsocg, during the term shall have the right at any time to examine the records of Grooms as to accuracy of the returns. Rights of Grooms are exclusive. The rights herein granted unto said Grooms are exclusive in him.”

Grooms had the right to make roads, to install “such machinery and equipment as he may desire for the purpose of operation; and shall have the right to alter or remove the same at will,” subject to landlord’s lien.

“Rent Contingently Modified by Royalties. Grooms covenants to fully utilize all available part of the land so rented by diligently prosecuting in season both the farming operations and the sand and gravel business herein provided for. If the royalties in any one year do not amount to three hundred dollars, then the landlord shall have a lien Upon that part of the crops raised on the west side of the river, the amount of the lien being for one half the crops and proceeds thereof, raised on the land west of the river, so far as such amount shall be necessary to make good such deficiency in the royalties. And if the royalties paid in any one year aggregate five hundred dollars, then all the crops and proceeds * * * shall belong to Grooms free from any claim by Hardsocg. ’ ’

The lessor reserved all minerals, and the right to sell building lots and to erect structures not interfering with the roads or buildings of Grooms. “Grooms has the right at the end of the term to remove improvements” and equipment. It was agreed that a cement-block house on the property was included in the lease, but to be maintained at Grooms’ expense.

The circumstances attending the making of the lease are very meagerly shown. Hardsocg testified that he had lived in Wapello County 40 years; that Grooms worked for him three or four years, when Hardsocg first came to Ottumwa, and worked for him again three years ago; that Grooms’ duties were “to *750 keep accounts and fill orders for me.” The lease is dated February 25, 1925. Grooms died February 25, 1926.- Hardsocg testified that the cement bouse “was occupied last year by a mam- — I don’t know Ms name — who did some hauling of sand, part of the time. He done some stripping on the place, with the understanding that he could live in the house. * * * Grooms did not furnish any tools or equipment on the land. He didn’t do anything on the place except to wait on customers who were wanting to buy sand and gravel.” He further testified that he “was somewhat acquainted with Mr. Grooms’ financial condition at the time he made the lease, and I knew that he had no means with which to buy machinery. I never complained to Mr. Grooms because he didn’t buy any machinery.” He said he knew that Grooms lived in a rented house, — didn’t know whether he owned a team, and did not inquire, before he made the lease; that Grooms paid him $300 royalty, at different times; that Grooms had to strip about seven feet to get the sand; that he got some out of the river bed; that he didn’t know of anyone’s going there for sand last year that couldn’t get it.

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216 N.W. 78, 204 Iowa 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-grooms-iowa-1927.