Landas Fertilizer Company v. Hargreaves

206 N.W.2d 675, 1973 Iowa Sup. LEXIS 1005
CourtSupreme Court of Iowa
DecidedApril 25, 1973
Docket55597
StatusPublished
Cited by4 cases

This text of 206 N.W.2d 675 (Landas Fertilizer Company v. Hargreaves) 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
Landas Fertilizer Company v. Hargreaves, 206 N.W.2d 675, 1973 Iowa Sup. LEXIS 1005 (iowa 1973).

Opinion

McCORMICK, Justice.

These consolidated appeals involve the right of a vendor of chemical fertilizer and other products to a mechanic’s lien on farmland rented by the purchaser of such products.

Plaintiff Landas Fertilizer Company sold fertilizer, herbicide and seed and provided some related labor to defendant Meryl Keding, tenant on Fayette County farms individually owned by defendants Gilbert Hargreaves and Richard Egan. Keding rented the farms by written annual cash-rent leases. When Keding failed to pay his account Landas filed a mechanic’s lien for $5,104.81 against the Hargreaves land arising out of purchases during the 1967 and 1968 crop years and a mechanic’s lien for $2,558.86 against the Egan land for purchases during the 1968 crop year. Subsequently Landas filed separate actions against each landlord, joining Keding as a defendant in each case, asking judgment for its claims and foreclosure of the liens. The actions were consolidated. Default judgment was taken against Keding who was insolvent.

By agreement the parties tried only the issue of the validity of the liens against the Hargreaves and Egan land. Landas sought to prove Keding acted as the landlords’ agent in making the purchases. Trial court found the proof inadequate and dismissed the petitions as to Hargreaves and Egan. Landas appealed. We affirm the trial court.

Although Landas states five propositions, all raise a single question: Did Lan-das prove Keding was the landlords’ agent in making the purchases ?

Since these are equity cases our review is de novo. We are not bound by trial court findings of fact but we give them weight. Rule 344(f)(7), Rules of Civil Procedure.

“Agency” is defined in Restatement of Agency, Second, § 1, as “the fiduciary relation which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act.”

Landas acknowledges it had no contact or dealings with Hargreaves or Egan. It seeks to establish Keding’s agency based on actual rather than apparent authority. Compare Restatement of Agency, Second, § 7, “Authority is the power of the agent to affect the legal relations of the principal by acts done in accordance with the principal’s manifestations of consent to him,” with Restatement of Agency, Second, § 8, “Apparent authority is the power to affect the legal relations of another person by transactions with third persons, professedly as agent for the other, arising from and in accordance with the other’s manifestations to such third persons.” Landas alleges Keding had actual power to bind the landlords.

Two principles have developed relating to proof of such agency in cases where a mechanic’s lien is asserted against a landlord by reason of improvements to the land *677 by a tenant. They are stated in Cassaday v. Dejarnette, 251 Iowa 391, 393-394, 101 N.W.2d 21, 23 (1960):

“It is well settled in this jurisdiction that mere knowledge of or consent to the making of improvements by a lessee does not usually subject the interest of the lessor to a mechanic’s lien, [citations]
“It is well established where a lessor has, by agreement expressed or implied with his lessee, contracted for an improvement of his real estate by the lessee, and it further appears that such improvement itself is a part of the value for which compensation is paid, and that the improvement is to become the sole property of lessor within a relatively short period of time, that the interest of the lessor in the realty is subject to the claim of a mechanic’s lien for the reasonable value of the material or labor furnished in making that improvement, [citations] ”

Landas argues the present cases come under the second principle.

Strong reliance is placed on Code § 572.-1(4), which expressly makes fertilizer a lienable material, and on the terms of the leases. The leases are adaptations of Iowa State Bar Association Official Form 14 (Rev. Nov. 10, 1956), with the landlords exchanging use of their land for fixed cash payments and assurances the land would be restored to them in good condition at the end of the crop year. The Hargreaves lease for the 1968 crop year includes these provisions:

“3. PROPER HUSBANDRY. Tenant covenants to farm said premises in a good and husband-like manner; and, consistent therewith, and with the terms of this lease, to get the best crop production the nature of the soil and the season will permit.
“9. FERTILIZER, LIME AND CHEMICALS. Commercial fertilizer, as required by good husbandry, shall be furnished none% by the Landlord and all% by the Tenant. Such fertilizer applied with oats seeding shall be deemed to be used that year and the next following year. If Tenant does not stay on the farm the next year he shall be reimbursed one-half of his cost of the fertilizer material used on the oats field. Chemicals, as required by good husbandry for weed or borer control and crop pests, shall be furnished none% by the Landlord and all% by the Tenant. Tenant agrees to furnish, without cost, all labor and equipment with the application of fertilizer, lime and chemicals.
“12. WEED CONTROL. All noxious weeds shall be sprayed or otherwise timely destroyed by Tenant. Weeds in fence rows shall by him be timely cut with a mower or scythe or sprayed with 2-4 — D.

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Bluebook (online)
206 N.W.2d 675, 1973 Iowa Sup. LEXIS 1005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landas-fertilizer-company-v-hargreaves-iowa-1973.