Mobley v. Boyt Farms Co.

126 N.W.2d 280, 256 Iowa 106, 1964 Iowa Sup. LEXIS 748
CourtSupreme Court of Iowa
DecidedFebruary 11, 1964
Docket51172
StatusPublished
Cited by4 cases

This text of 126 N.W.2d 280 (Mobley v. Boyt Farms Co.) 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
Mobley v. Boyt Farms Co., 126 N.W.2d 280, 256 Iowa 106, 1964 Iowa Sup. LEXIS 748 (iowa 1964).

Opinion

ThoRNtoN, J.

— Plaintiff went to work for defendant as a farmhand in 1958, he continued in this employment until June 12, 1961. Defendant is a corporation farming 1300 acres. In 1959 plaintiff loaned defendant $10,000, taking a note for that amount. In February 1960 plaintiff and defendant entered into a contract whereby plaintiff was to run a herd of beef cows on defendant’s farm with defendant to receive one third of the calf crop at weaning time. From the evidence and circumstances known to the parties at the time of contract the terms of the contract are found to be as follows. Defendant would let plaintiff run a herd of beef cows on its farm in exchange for one third of the calf crop at weaning time in the fall with an option to purchase plaintiff’s two thirds. The contract was to continue from one calf crop to another until terminated by either party. Plaintiff was to continue his regular employment and in general care for the cattle at odd hours except as necessity required otherwise. Defendant was to furnish pasture, cornstalks and incidental use of farm equipment. The pasture was to remain substantially as of the time of contract, February 1960. Defendant was to furnish hay to be paid for by plaintiff. The amount of cornstalks was to vary according to the .operation of the farm by defendant in accord with the known experience of the parties. Plaintiff was to pay all other expenses such as protein supplement and supplies.

From February to June 1960 plaintiff purchased 142 cows, 42 had calves at their sides when purchased. He also purchased three bulls and later a Charoláis bull. The cows were first turned into the cornstalks and later into the pasture containing approximately 240 acres. Plaintiff used hay obtained from defendant for the cows that spring and paid for it. November 29, 1960, when the calf crop was divided, defendant exercised its option to purchase plaintiff’s two thirds of the calves and paid plaintiff $7699.19. At that time 97 calves were divided, 31 were too small to wean and were carried over. Included in the 97 calves divided were the 42 calves running at their mothers’ sides when plaintiff purchased them in the spring of 1960, no mention *109 of them was made at that time by either party. In the winter of 1960-1961 plaintiff ran the cattle in the cornstalks and used approximately 80 tons of hay obtained from defendant. In the spring of 1961 defendant plowed np 20 acres of pasture plaintiff was using. This made him short of pasture and he rented more pasture from a neighbor for $120. Defendant offered to pay plaintiff one third of this amount but plaintiff refused without giving a reason. June 12, 1961, plaintiff and defendant’s manager had a conversation relative to hay. All the hay had been green chopped and plaintiff was interested in what he was going to feed his cows in the winter. The manager told him he would have to buy hay elsewhere. Plaintiff considered defendant was refusing him hay, quit his employment and sold the herd June 21, 1961.

On August 5, 1961, plaintiff started this action on the note; after motions on October 28, 1961, defendant filed its answer and counterclaim in two divisions. The counterclaim, without reference to the calf crop contract, asked for the value of its performance furnished plaintiff for his cows or restitution. Plaintiff by stipulation was granted time to plead. November 13, 1961, defendant amended its counterclaim by adding thereto another division wherein it asked damages for the value of the supplies etc. furnished plaintiff and for damages for breach of contract, for the value of one third of the calf crop at the normal weaning time in November of 1961. Plaintiff replied. The action was tried in equity by agreement.

The trial court held plaintiff breached the contract and the action of defendant in filing its counterclaim October 28 asking for restitution constituted an election of remedies and barred defendant from recovering in the alternative on its counterclaim filed by way of amendment November 13, 1961. The trial court held defendant was limited to restitution only, but because plaintiff in his reply offered an accounting of the calf crop contract as of June, which was more advantageous to defendant, awarded defendant an offset against plaintiff’s note on that basis.

Defendant appeals and plaintiff cross-appeals. Defendant contends it made no election of remedies, it should have been *110 awarded damages for the market value of the calves in November 1961 and even if there was an election it was entitled to the reasonable value of its performance. If we affirm the election of remedies plaintiff is willing to* accept the ruling of the trial court but contends the accounting as of June 1961 should credit him with the cost of the calves funning at their mothers’ sides when purchased; otherwise he contends defendant breached the contract.

In its decision the trial court points out an injured party has three remedies — damages, restitution, and specific performance (not involved here). If he seeks damages he stands on the contract and asks for the value of the other party’s promised performance, whereas if he asks for restitution he rescinds the contract and asks for the value of his own performance. The court further pointed out this situation is not to be confused with the common ease where one sues for the value of goods or services in two divisions, one for the agreed amount and the other for the reasonable value, the express contract, quantum meruit cases where in each instance he is standing on the contract. And that this situation should not be confused with our procedure allowing alternative divisions where no election between substantive rights is involved, referring to rules 22, 31 and 72, Rules of Civil Procedure.

I. In this case if defendant had pleaded both divisions of its counterclaim at the same time it could have been compelled to elect which division it would rely on before submission of the case. Restatement of Contracts, section 384, comment b (1932). It did not do so, and so we have the question of whether the filing of its first counterclaim for restitution on October 28, .1961, constituted an election of remedies such as to preclude it from recovering on its second counterclaim for damages filed 16 days later. On the basis of the authorities we are compelled to agree with the trial court.

In this case it is clear the action of plaintiff in selling the herd is such a substantial breach of the contract as to defeat the object of the parties in making the contract and entitle defendant to seek either restitution or damages at its election. Maytag Company v. Alward, 253 Iowa 455, 464, 112 *111 N.W.2d 654, 660; and Restatement of Contracts, sections 326, 347 and 381. And this is true if we consider defendant’s plowing up 20 acres of pasture a breach, such breach is minor and readily satisfied by damages. Plaintiff rented other pasture for $120. This was not substantial default on the part of defendant. See Maytag Company v. Alward, supra. Nor was defendant’s refusal to furnish hay for the coming winter a breach of the contract. The contract was to run from calf crop to calf crop and this refusal was merely an indication of intention not to renew the contract for the succeeding year.

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Cite This Page — Counsel Stack

Bluebook (online)
126 N.W.2d 280, 256 Iowa 106, 1964 Iowa Sup. LEXIS 748, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mobley-v-boyt-farms-co-iowa-1964.