Johnson v. United States

789 F. Supp. 748, 1992 U.S. Dist. LEXIS 5458, 1992 WL 77499
CourtDistrict Court, N.D. Mississippi
DecidedApril 15, 1992
DocketNo. DC88-158-S-O
StatusPublished

This text of 789 F. Supp. 748 (Johnson v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. United States, 789 F. Supp. 748, 1992 U.S. Dist. LEXIS 5458, 1992 WL 77499 (N.D. Miss. 1992).

Opinion

OPINION

SENTER, Chief Judge.

On August 10, 1989, this court entered an opinion and order granting in part and denying in part defendant’s motion to dismiss. Specifically, this court dismissed plaintiff’s claims (1) against the Agricultural Stabilization and Conservation Service (ASCS), and (2) against Farmers Home Administration (FmHA) concerning plaintiff’s alleged right to repurchase certain farmland which he had once owned. However, the court refused to dismiss plaintiff’s claim for a declaratory judgment that he had a right to possession of that land in 1987, which was a prerequisite to plaintiff’s receiving the remainder of an ASCS deficiency payment. The parties agreed to submit this remaining question to the court on stipulated facts and legal memoranda. Having considered all of the pertinent documents and the legal arguments, the court is now in a position to render its decision.

STIPULATED FACTS

In 1985, the plaintiff, Lamar Johnson, filed Chapter 11 bankruptcy, listing FmHA as a creditor. At the time, Johnson owed FmHA approximately $900,000.00. Despite the institution of the bankruptcy proceedings, Johnson continued to cultivate his farm throughout 1985.

After Federal Land Bank foreclosed Johnson’s farm, FmHA purchased it in early 1986. Johnson nevertheless continued to farm this land throughout the remainder of that year. FmHA, upon learning of this, filed a complaint to impress a lien as a landlord in the bankruptcy proceeding. FmHA was successful on this complaint and received landlord rent from Johnson for 1986. Eventually, Johnson converted to Chapter 7 bankruptcy and was discharged in March, 1987.

In August, 1986, Thomas Whitehead, the county supervisor of FmHA for Panola County, advised the Panola County ASCS office that FmHA was the titled owner of the farmland previously owned by Johnson and that “the property is not presently under lease to anyone....”

In February, 1987, Johnson applied to FmHA for a production loan. Although the county committee approved the application, Whitehead denied Johnson’s loan re[750]*750quest. Johnson appealed this decision.1 The hearing officer upheld the loan denial. Throughout these proceedings, FmHA was aware of and knew that Johnson was preparing the ground for planting and that he was indeed farming the subject land once again.2

In August, 1987, Paul Savage, the county supervisor of FmHA for Panola County, notified the Panola County ASCS office that “Lamar Johnson is currently operating the farm that FmHA has in inventory.” The next month, ASCS disbursed to Johnson a partial deficiency payment of $14,-996.68 for the 1987 crop year.

In November, 1987, Henry Mangum, on behalf of the state director of FmHA, wrote a letter to Charles Hull, the acting state executive director of ASCS, informing him that “[njeither a verbal nor written lease was entered into between Farmers Home Administration and Gaston L. Johnson for crop year 1986 or 1987. Please be advised that by virtue of MS Code Ann. 89-7-51(1) (Supp.1986) FMHA will have a landlord’s lien on crop proceeds for crops grown on this property in 1987.”

ASCS office regulations provide in part that in order for it to release any ASCS proceeds, there must be a statement from FmHA that one of the following exists between FmHA as owner/operator and a producer:

(A) A written or oral lease exists between the producer and the FMHA; or
(B) The producer has a permit; or
(C) The producer has some other evidence of a right to possession.

DISCUSSION

The precise question presented for this court’s determination is whether Johnson had any right, contractual or otherwise, during 1987, to possess the farmland in question which was formerly owned by him and is now owned by FmHA. Both parties acknowledge that the resolution of this issue hinges not on whether there was a permit but rather on whether Johnson had some kind of lease with FmHA or some other right to possess the land in question.

Defendant vehemently denies the existence of any kind of landlord/tenant relationship between FmHA and Johnson. However, it cannot be disputed (1) that FmHA officials, on both the state and regional levels, knew that Johnson was in possession of the land in 1986 and 1987 although FmHA was the titled owner of the Johnson farm and that no written lease was in effect between the two parties; (2) that FmHA never, during this time period, attempted to evict Johnson from the property (and, in fact, no FmHA official ever suggested eviction as a possible course of action) even though, under its own regulations, it could have done so, see 7 C.F.R. § 1955.61 (1987) (“Advice and assistance will be obtained from OGC [Office of General Counsel] when eviction from realty ... is necessary_ If no written lease exists, the State Director will obtain advice from OGC”); and (3) that FmHA, through the bankruptcy proceedings, sought to enforce a statutory landlord lien and succeeded in procuring rent for 1986 and that it later recognized its statutory right to collect landlord rent for 1987. See Miss. Code Ann. § 89-7-5 (provides “landlord” with means for obtaining rent for “use and occupation of the lands held and enjoyed by another” “where there is no contract or where the agreement is not in writing”).

[751]*751In Dean v. Simpson, 235 Miss. 162, 108 So.2d 546 (1959), the Mississippi Supreme Court held that where the foreclosure sale purchaser permits the trust deed grantor to remain on the land which it has bought, the relationship between the two parties is that of a tenancy at sufferance or at will. Dean, 108 So.2d at 549. In a tenancy at sufferance, this permission to occupy the land may be established (1) by actual permission or (2) by implication from the circumstances surrounding the long-time use of the land with the owner’s knowledge and the failure of the owner to object to the occupancy. White v. Mississippi Power & Light Co., 196 So.2d 343, 349 (Miss.1967). Cf. McKissack v. Bullington, 37 Miss. 535 (1859) (contract to pay rent is not necessary to constitute landlord/tenant relationship).

Similarly, in this case, FmHA, after purchasing the subject property, permitted Johnson to remain on its land, thereby creating, by operation of law, a landlord/tenant relationship sufficient to give Johnson the right to possession of that land. It appears from the transcript of the appeals hearing that Whitehead did give Johnson explicit permission “to just go ahead and work [the land] this year....” See supra n. 1. Although Whitehead acquiesced in this characterization at the hearing, he now maintains that he was interpreting the word “work” “to mean to lease and farm the land.” It is immaterial, though, whether any FmHA official verbally gave Johnson permission to occupy the land, for, based on the actions — and inactions — of FmHA, permission was nonetheless given.

Certainly, at any time during 1986 or 1987, FmHA could have sought Johnson’s removal from the land. At that point (and assuming FmHA fully pursued its right to “dispossessory process,” see Sherrill v. Stewart, 199 Miss.

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Related

White v. Mississippi Power & Light Company
196 So. 2d 343 (Mississippi Supreme Court, 1967)
Sherrill v. Stewart
23 So. 2d 915 (Mississippi Supreme Court, 1945)
Dean v. Simpson
108 So. 2d 546 (Mississippi Supreme Court, 1959)
McKissack v. Bullington
37 Miss. 535 (Mississippi Supreme Court, 1859)

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Bluebook (online)
789 F. Supp. 748, 1992 U.S. Dist. LEXIS 5458, 1992 WL 77499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-united-states-msnd-1992.