Miller v. Merritt

8 N.W.2d 726, 233 Iowa 230
CourtSupreme Court of Iowa
DecidedApril 6, 1943
DocketNo. 46232.
StatusPublished
Cited by9 cases

This text of 8 N.W.2d 726 (Miller v. Merritt) 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
Miller v. Merritt, 8 N.W.2d 726, 233 Iowa 230 (iowa 1943).

Opinion

Mantz, J.

This is a suit in equity wherein plaintiffs ask for a dissolution of a copartnership farming agreement with defendants, the appointment of a receiver to take charge of the firm property to protect the interests of the parties, and for just and equitable relief, and for costs.

The pleadings and various motions are voluminous and cover *231 about sixty pages of the printed abstract and additions thereto. No useful purpose would be served by setting out more than a summary thereof. Enough will be set out to show the issues as passed upon by the lower court.

On September 11, 1940, the defendants, residents of Linn County, Iowa, and owners of a certain 360 acres of land in Jones County, Iowa, entered into a written agreement with plaintiffs for the purpose of farming and operating said land for a period of four years from and after March 1, 1941, with the right of either party to terminate said agreement under certain conditions. On March 1, 1942, after said written agreement had been terminated by the defendants, they took possession of said farm. The plaintiffs and defendants.being unable to agree upon a settlement of various matters growing out of said farming operations, plaintiffs brought suit in equity to fix and determine the rights of the respective parties. Plaintiffs alleged that they and the defendants, under such written agreement, were a copartnership, or firm, while defendants denied such and asserted that the agreement was a lease and that the relationship between the parties thereunder was that of landlord and tenant. The defendants, residents of Linn County, Iowa, claiming that no partnership existed and that the action was a personal one, filed a motion to change the place of trial from Jones county to Linn county and supported said ,motion by an affidavit of one of the defendants. This motion was overruled and thereupon the defendants filed a motion to dismiss on the grounds that no partnership agreement existed and that none was intended. Following an adverse ruling on such motion the defendants filed a motion to transfer the cause from equity to law for further proceedings therein. This motion was overruled. Exceptions were taken to such adverse rulings. Defendants thereupon filed an answer with later amendments in which they denied any copartnership agreement, denied the interest of plaintiffs, in the money on deposit in the Exchange Bank of Springville, Iowa, denied the right of plaintiffs to maintain the suit in equity in Jones county and pleaded, that the action should have been brought in law and was triable-in the county of Linn, the residence of the defendants, and that it was one between landlord and tenant.. Defendants further pleaded *232 by way of amendment a counterclaim against plaintiffs growing out of the farming operations and set out therein the various items thereof. Said claim for damages included loss of hogs by reason of negligence and carelessness of plaintiffs, $340, failure to haul manure, $50, failure to repair or rebuild fences, $25, failure to harvest hay, $105, failure to harvest corn, $158.40, damage to hay rope, $17.09, for using shingles for kindling, $10, damage to oiler on gas engine, $2.04, loss of culvert on farm, $25, failure to replace door pulley, $1.30, and failure to plow 17.6 acres at the fair price of $26.40, making a total claim of damages for the various items of $760.23.

On July 13, 1942, defendants amended their cross-petition and set forth therein the different sums paid out by defendants for the purchase of livestock for the farm during the period the same was worked by the plaintiffs; also receipts from cattle, hogs, and hay sold during, the same period. The defendants claimed that in such respects they had paid out $4,360.50 and that there had been receipts from sales of $6,665.14, leaving a profit of $2,304.64, and that such sum was to be shared equally by plaintiffs and defendants.

The plaintiffs, making reply to the various claims of defendants as set out in the answer, amendments thereto, and cross-petition, denied the same, or any liability thereunder, asked for an accounting and a disallowance of said claim of $760.23, and for general equitable relief.

Later, in an amendment to their answer, defendants alleged that if any partnership agreement had ever existed between the parties the same had been dissolved by mutual agreement of the parties thereto, and that a division of the net amounts due thereunder had been made and the part due plaintiffs in the amount of $1,065 had been tendered them, and that defendants were at all times willing to pay same to plaintiffs, but aver that plaintiffs refused to accept the same. Defendants further alleged that there no longer existed in the Exchange Bank of Springville, Iowa, any account in the name of Merritt Bros. & Miller and that said account had been closed by the defendants.

Plaintiffs, in reply to defendants’ amendment, state that the partnership at all times prior to- the action had deposited all firm funds in the Exchange Bank of Springville and allege that *233 defendants notified said bank not to allow plaintiffs to check on said account, and that later, and without permission of plaintiffs, defendants withdrew all of said funds from, said bank and took and kept possession of them for the purpose of compelling and forcing plaintiffs to make settlement with the defendants on their unjust and unreasonable claim for damages.

Upon hearing the court found the equities were in favor of plaintiffs, holding that the plaintiffs and defendants were a co-partnership located in Jones county, ordering its dissolution, and finding the interest of plaintiffs in the property of said partnership, and finding against defendants on their counterclaim. Defendants appeal.

When the cause was reached for trial on August 17, 1942, the parties in open court agreed that of the funds which grew out of the farming operations and which had been on deposit in the Exchange Bank of Springville, Iowa, in the name of Miller & Merritt Bros., the plaintiffs were entitled to the sum of $1,825.22, less any amount which the court might find owing defendants on their counterclaim against plaintiffs, together with interest adjustment, if'any.

The first question to be determined is the nature and effect of the written agreement entered into by and between the parties on September 11", 1940, and under which the 360-acre farm was operated for the year beginning March 1,1941. Appellees contend that it constituted a copartnership agreement and that there existed by reason thereof the firm of Miller & Merritt Bros. This claim is denied by the appellants, who claim that said instrument was a lease and that the status of the parties was that of landlord and tenant. If the contention of the appellees is correct, then the cause was properly brought in equity and Jones county was the proper forum. The written agreement was introduced in evidence, being Exhibit A.

The instrument signed by the parties contains about twenty-five sections and deals with the various phases of the contemplated farming operations. It describes the land, the tenure of the agreement, livestock, crops, management, sales and purchases, division of profits, etc. Under the heading “Management” it provides that the business is to be carried on under the

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Bluebook (online)
8 N.W.2d 726, 233 Iowa 230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-merritt-iowa-1943.