Phalen v. Rilley

496 P.2d 295, 159 Mont. 239, 1971 Mont. LEXIS 332
CourtMontana Supreme Court
DecidedDecember 14, 1971
DocketNo. 11920
StatusPublished
Cited by3 cases

This text of 496 P.2d 295 (Phalen v. Rilley) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phalen v. Rilley, 496 P.2d 295, 159 Mont. 239, 1971 Mont. LEXIS 332 (Mo. 1971).

Opinion

MR. JUSTICE DALY

delivered the Opinion of the Court.

This is an action in damages brought by plaintiff Dorothy Phalen, lessor, against defendant Floyd Rilley, lessee, for breach of a written farm lease. The cause was tried to the court sitting without a jury in the sixteenth judicial district, Carter County. From a judgment in favor of plaintiff, defendant appeals.

A brief review of the history of this cause is necessary here to properly consider all of the issues presented for review.

The cause was filed in December 1961, and tried in November 1964. Findings of fact and conclusions of law were entered by the court in December 1965, and judgment entered in favor of plaintiff. The judgment contained an error in the amount of the judgment and the court, after some confusion, on February 17, 1966 requested counsel to submit proposed amended findings of fact and conclusions of law. On September 1, 1967, the presiding judge retired without further acting on the matter. In December 1967, the new district judge reviewed the record, received memorandums, and made new findings of fact and conclusions of law. These new findings and conclusions were in favor of defendant and judgment was entered accordingly.

Plaintiff appealed to this Court the right of the second judge to make- contrary findings and it was determined the new judge erred when he made new findings of fact and conclusions of law, based only on the facts involved in this case. This Court on February 13, 1970, amended the errors in the original judgment and directed that the first judgment in favor of plaintiff be reinstated as amended. Phalen v. Rilley, 154 Mont. 399, 465 P.2d 102.

Defendant then filed his appeal from the final judgment on the merits. Thereafter plaintiff filed with this Court a motion to dismiss defendant’s appeal on the merits because of the [241]*241doctrine of “law of the ease”. The Court beard oral arguments and denied plaintiff’s motion on November 4, 1970. Pbalen v. Eilley, 156 Mont. 91, 475 P.2d 998.

The facts surrounding the appeal on the merits as stated in the original procedural appeal decided on February 13,1970, are:

“Plaintiff is the former Dorothy Eilley and is the mother of defendant. Upon her husband’s death in 1955 plaintiff succeeded as heir at law and surviving joint tenant to certain ranch lands and some machinery and other equipment. In 1956 plaintiff and her two sons, defendant and Bob Eilley, entered into a partnership agreement for the operation of the ranch. Plaintiff contributed the land and machinery she owned plus her interest in certain machinery and equipment owned by her and her two sons in common. Defendant and his brother contributed the machinery and equipment they owned as well as cattle they each owned. Defendant subsequently purchased Ms brother’s interest and the partnership was terminated. The termination came in 1958 and in that year plaintiff and defendant entered into a written agreement whereby defendant was to pay plaintiff $2,700 per year for the lease of the ranch lands, machinery and equipment. The defendant was also obligated to perform other jobs on the ranch specifically enumerated in the agreement. Included within these jobs was the' mending of fences and corrals and he was to leave 70 tons of hay on the place at the end of the lease. Plaintiff was obligated to purchase the materials for the fences and corrals. The agreement also contained a 90 day notice requirement; if plaintiff decided to sell the ranch she was to give defendant 90 days notice during the term of the lease. Also defendant had the first right to purchase.
“In June, 1961 plaintiff sold her ranch lands to one Pat Byrnes. Plaintiff did not give notice to defendant of the sale. However, Byrnes was not to receive possession of the property until after the lease agreement expired.
[242]*242“Defendant refused to pay the annual lease payment for 1961 to plaintiff because plaintiff had sold the land without giving him notice of the terms of the sale and also because plaintiff had sold some cattle and horses in which he had an interest and she had not paid him for that interest. Plaintiff then instituted this action.”

Plaintiff in her complaint alleges various breaches of the lease and asks damages in the amount of $2,700 for the last year of rental; $900 for failure to leave 70 tons of hay; $500 for failure to repair fences and machinery; $50 for removal of saddle and tools; and $500 attorney fees, for a total of $4,650 plus interest from December 1, 1961.

Defendant’s answer admits to failure to pay rent; questions the amount of hay shortage; denies attorney fees and claims set off against damages for other transactions. Defendant offered as his second affirmative defense the breach of lease by the lessor plaintiff in failure to honor defendant’s right of first purchase, to defendant’s damage in the amount of $10,000.

Defendant additionally counterclaimed that plaintiff failed to honor the right of first purchase, to his damage in the amount of $10,000; conversion of his cattle, $389.82; summer fallow payment of $1,145.60 (this claim abandoned at trial); and defendant’s interest in tools and machines in the amount of $1,378.73.

The first findings of fact made- by the court were extensive comprising six pages, most of which are collateral to the principal issues to be decided or are not substantially in dispute. Those pertinent to this appeal are:

The lease was for a term of three years, ending December 1, 1961. The land was occupied by defendant for the full term. Among other things, the lease contained the following provision :

“If the party of the first part decides to sell place or machinery, the party of the second part must have ninety (90) days notice; in writing, said 90 days subsequent to December [243]*2431st of each year during the term of the lease, if necessary, and the said party of the second part shall have the first right to purchase said lands.” (Emphasis supplied)

That plaintiff on June 7, 1961, by contract for deed, sold the land; purchasers were not to take possession until the end of the lease, December 2, 1961, and such condition was honored by purchasers. On June 12, 1961, defendant wrote to plaintiff requiring plaintiff to give defendant notice of the terms of any proposed sale. Plaintiff did not give defendant notice of the contract for deed and sale.

The court then entered the following conclusions of law:

“I. That plaintiff is not entitled to any allowance for attorney fees.
“II. That the defendant’s claim for right to purchase the land by reason of the provision set forth in Court’s Finding No. VI, denominated as an option by counsel for the defendant in his brief, must be, and is hereby, denied, for the reason that no price is fixed in the option and therefore unenforceable. 51 C. J.S., Sec. 81, (d) page 636.
“HI. That plaintiff is entitled to be allowed the following claims against the defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
496 P.2d 295, 159 Mont. 239, 1971 Mont. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phalen-v-rilley-mont-1971.