Newberry v. McClaren

575 S.W.2d 438, 264 Ark. 735, 1978 Ark. LEXIS 2178
CourtSupreme Court of Arkansas
DecidedDecember 18, 1978
Docket78-161
StatusPublished
Cited by7 cases

This text of 575 S.W.2d 438 (Newberry v. McClaren) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newberry v. McClaren, 575 S.W.2d 438, 264 Ark. 735, 1978 Ark. LEXIS 2178 (Ark. 1978).

Opinions

Frank Holt, Justice.

The appellants leased 1,120 acres of land for S3,000 annually to the appellees. The term of the written lease was from May 1, 1971, to December 31, 1975. The agreement gave the appellees the option to purchase the acreage at $200 an acre within a period of not less than thirty days and not more than ninety days before the end of the lease. Appellees properly exercised this option. Thereupon the appellants brought an action to rescind the agreement alleging various breaches by the appellees. The appellees denied the allegations and counterclaimed for specific performance. The chancellor dismissed appellants’ complaint and awarded appellees specific performance of the option to purchase, subject, however, to a year’s extension of appellants’ right to cut and remove timber from the property. For reversal of that decree, appellants first assert that the court erred in finding that appellees did not breach the contract by interfering with appellants’ reservation of a right to remove timber.

We will not disturb the chancellor’s findings on a fact issue unless it is clearly against the preponderance of the evidence. Gibson v. Heiman, 261 Ark. 236, 547 S.W. 2d 111 (1977) ; Walker v. Walker, 262 Ark. 648, 559 S.W. 2d 716 (1978) . Here appellants reserved the right to sell timber from the leased property for sawlogs or pulpwood during the term of the lease. In 1973, appellants and appellees discussed appellees’ purchasing timber from appellants. After those discussions fell through, appellants entered into two contracts for the sale and removal of the timber. Appellants first contracted in February, 1975, with a Mr. Shamblin. According to Shamblin, he ceased his operations because, in April, 1975, appellants made a similar contract with another logging contractor named O’Bannon. O’Bannon testified that the road known as the “lane road” was the only road that he was to use and that he did use that road for six or seven weeks, quitting when it became impassable. It was taking more time to fix the road than he could manage. Price, an adjoining landowner, testified that O’Bannon’s heavy equipment was the cause of the road’s becoming impassable. O’Bannon then attempted to use another road, the “loghouse road,” for access to the timber. However, the appellees, after observing the damages caused by the use of this road, instructed O’Bannon to use only the “lane road.” O’Bannon’s equipment consisted of two-ton trucks, skidders weighing twelve tons each and a D-6 bulldozer. It appears undisputed that O’Bannon, besides damaging both roads, cut and broke fences and left logs and tree tops in appellees’ fields. In these circumstances, we cannot say that appellees’ insistence that O’Bannon use the “lane road” for access to the timber constituted a material breach of contract. Appellants’ right to sell and remove timber did not give them the right to allow their logging contractor to unreasonably damage the leased farm. Certainly it cannot be said that the chancellor’s finding is against the preponderance of the evidence.

Appellants next assert that the court erred in finding appellees made a proper tender to exercise the option to purchase. They argue that, although no specific finding of a legally sufficient tender was made by the court, the court’s ruling inferred there was a sufficient tender. Appellees exercised their option on October 24, 1975. It is insisted that it was impossible for them to exercise their option to purchase on this date because they never had under their control sufficient funds to meet their contractual obligations. However, the contract itself makes no requirement that a tender of funds be made upon exercising the option. It does require that upon appellants’ receipt of notice of the option to purchase, they “shall cause an abstract of title covering said lands to be prepared and submitted to” appellees for their approval and “at such time as said title is rendered marketable [appellants] shall tender unto [appeileesj a warranty deed.” With respect to payment, the contract provides that “25 percent of the said purchase price shall be paid cash in hand upon delivery of deed” and the balance “shall be evidenced by a promissory note of even date” bearing a stated interest payable in five equal annual payments.

Where a contract does not provide that a tender be made when the option is exercised, it is unnecessary to make a tender at that time. Rich v. Rosenthal, 223 Ark. 791, 268 S.W. 2d 884 (1954). Here, as indicated, the contract did not require a tender upon exercising the option to purchase. It only provides that upon appellees exercising their option the appellants would furnish them a marketable abstract of title. In view of this provision, it cannot be said that the parties contemplated a tender of the agreed purchase price by the appellees before they had an opportunity to examine the abstract as to the marketability of the title. It was only upon appellants’ delivery of the deed with a marketable title, which appellants have never done, that the appellees were required to fulfill the purchase price agreement. In the circumstances, whether the appellees had or did not have the “present ability” to make payment of the purchase price at the time they exercised their option to purchase is of no significance. Therefore, we find no merit in appellants’ contention that the chancellor erred in his finding that the appellees made proper tender upon exercising their option.

Next it is contended that the chancellor’s finding that appellees did not breach the contract by failing to use good husbandry in caring for the farm was against the preponderance of the evidence. The thrust of appellants’ argument is there were violations of good husbandry with respect to soil erosion, permitting the growth of brush too large to bush hog and dead cattle left on the lands to decay. In Underhill, Law of Landlord and Tenant, §§461 et seq., it is noted that persons living in the area who are familiar with local cultivation practices and climate may give their opinion as to what constitutes good husbandry. It appears appellees leased the farm primarily to raise cattle. According to appellants, the appellees have never bush hogged the property sufficiently and underbrush has grown too large to bush hog. For the first two years, however, appellees did well as far as good husbandry techniques. Price, a neighbor, testified that he had seen five dead cows on appellees’ property during the five year term of the lease, and some of the land had grown up beyong the point where it could be bush hogged. However, he considered the property as being in better shape at the end of the lease than at the beginning since appellees had built ponds and fencing, cleared fields and improved a road on the property. Two employees of appellees testified that they had worked regularly for a year clearing, building sheds and fences and making other improvements. McClaren testified that when he leased the property in 1971 none of it was open pasture land. At the end of the lease, at least one hundred acres were pasture land. He had cleared approximately three hundred acres. He further testified, with supporting exhibits, that he had expended approximately $7,000 for fertilizer, seed and building materials, all of which were used on the property during the lease. Other improvements included building an all-weather road through the farm, fences (85 rolls of new barbed wire) and digging four ponds, one which admittedly did not hold water. The seepage from that pond caused some erosion which he characterized as inconsiderable.

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Bluebook (online)
575 S.W.2d 438, 264 Ark. 735, 1978 Ark. LEXIS 2178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newberry-v-mcclaren-ark-1978.