Rafter Q Cattle Co. v. Oregon Sun Ranch, Inc.

624 P.2d 628, 51 Or. App. 27, 1981 Ore. App. LEXIS 2130
CourtCourt of Appeals of Oregon
DecidedMarch 21, 1981
DocketNo. 11787, CA 15469
StatusPublished
Cited by2 cases

This text of 624 P.2d 628 (Rafter Q Cattle Co. v. Oregon Sun Ranch, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rafter Q Cattle Co. v. Oregon Sun Ranch, Inc., 624 P.2d 628, 51 Or. App. 27, 1981 Ore. App. LEXIS 2130 (Or. Ct. App. 1981).

Opinion

BUTTLER, J.

This suit is one to foreclose a land sale contract by which defendants Oregon Sun Ranch, Inc., Leon and Sharon Gritten, John Lewis, and Zeke Graff agreed to purchase a ranch from plaintiff for the mining of Bentonite clay. The contract provided for a fixed yearly sum to be paid on principal and interest, and for severance payments of $1.10 per ton for all Bentonite removed; the severance payments, up to a maximum amount, were to be applied on the principal balance owing under the contract.

Defendants Leon and Sharon Gritten and Oregon Sim Ranch, Inc., subsequently entered into an agreement with defendant John Lewis by which the Grittens agreed to purchase Lewis’ interest in Oregon Sun Ranch, Inc., and the real property covered by the land sale contract. The buy-out agreement provided that in the event the purchasers thereunder failed to make the payments due under the land sale contract to plaintiff, they would execute and deliver to Lewis a quitclaim deed of their interest in the real property. Lewis would then be in a position to cure any default or, if necessary, redeem the land. The Grittens and Sun Ranch defaulted on the contract with plaintiff, but failed to quitclaim their interest in the property to Lewis. Plaintiff brought suit to foreclose the purchasers’ interest in the property, and Lewis cross-claimed against the Grit-tens and Sun Ranch to enforce his contract with them.

The Grittens and Sun Ranch appeal from the judgments and decrees entered following the granting of plaintiff’s and cross-complainant Lewis’ motions for summary judgment. Plaintiff was granted a decree of foreclosure, together with a money judgment for unpaid taxes and for payments not made for Bentonite removed; the decree gave defendants 90 days within which to redeem the property. Cross-complainant Lewis was decreed to be the sole owner of the vendees’ interest in the property and was granted judgment on a note executed by the Grittens and Sun Ranch as part of the latter’s agreement with Lewis.

On appeal from those judgments, the Grittens and Sun Ranch raise, through new counsel, many assignments of error by which they seek to litigate questions here which [30]*30were not only not raised in the trial court, but were acceded to by their trial counsel. We modify plaintiff’s judgment and decree in part, and affirm it as so modified; we affirm the judgment and decree in favor of cross-complainant.

There were no disputes as to any material fact with regard to either of the motions for summary judgment. Thus, the sole question before the trial court was whether the moving parties were entitled to judgment as a matter of law. Former ORS 18.105.

On this record, it is clear that plaintiff was entitled to a decree of strict foreclosure as a matter of law. Appellants’ trial counsel admitted at the summary judgment hearing that there was no defense to plaintiff’s claim. Any error, therefore, was either invited, see Sheets v. B & B Personnel Systems of Oregon, 257 Or 135, 475 P2d 968, 476 P2d 920 (1970), or waived. See Portland Machinery Co. v. Sistig, 283 Or 249, 583 P2d 536 (1978); Oates v. Stump, 279 Or 397, 569 P2d 7 (1977); Abbott v. Bob’s U-Drive et al, 222 Or 147, 162-63, 352 P2d 598 (1960). Appellants contend that their counsel did not have authority to make those concessions; however, the trial counsel was the attorney of record for them, and both the court and opposing counsel were entitled to rely on his authority. The adversary system could not function if the law were otherwise. Accordingly, we decline to review appellants’ assignments of error relating to that portion of the decree foreclosing the land sale contract.

Appellants’ contention that plaintiff was not entitled to a money judgment, in addition to strict foreclosure, for unpaid taxes and payments due for Bentonite removed is in a different posture. The question raised is whether plaintiff was entitled to those money judgments as a matter of law. If not, the error is an error of law appearing on the face of the judgment. Although the issues should have been raised below, or be waived, we may take notice of errors of law apparent on the face of the record in extraordinary situations. (See Rules of Appellate Procedures, Rule 7.19.) We believe this case presents such a situation on this issue.

The land sale contract requires the pin-chasers to pay when due all real property taxes levied against the [31]*31property. Failure to do so constitutes an event of default under the contract, permitting the plaintiff to accelerate the principal balance owing and to strictly foreclose the contract. Here, plaintiff not only obtained a decree for strict foreclosure, but also a money judgment for unpaid real and personal property1 taxes, with interest thereon. Although there is scant authority on the question, we believe the dictum in Sellgren et ux v. Boyer, 207 Or 521, 523-4, 297 P2d 864 (1956), is a correct statement of the law.

Sellgren held that a foreclosing plaintiff under a land sale contract providing for attorney fees to the prevailing party may, in addition to a decree of strict foreclosure, have a money judgment for attorney fees. In distinguishing cases which hold that in a strict foreclosure the vendor is not entitled to have both a judgment for the amount due and, at the same time, a foreclosure of the vendee’s interest, the court said:

"The above rule has no application in the present case. The amount due mentioned in each of the above cases clearly has reference to the summation of such items as principal, interest, taxes and insurance which a vendee has obligated himself to pay under the contract. It is vendee’s default in the payment of these items and not the failure to pay attorney’s fees, that gives rise to vendors’ right to strict foreclosure.” 207 Or at 523-4.

We accept that statement as an accurate proposition applicable to strict foreclosure of land sale contracts, and therefore modify the judgment portion of the decree to eliminate any money judgment for unpaid taxes, real or personal.

The money judgment for Bentonite removed from the land, however, is proper. The severance payments required to be made under the contract represent the price of the mineral taken from the land — it has been appropriated and bought by the vendees. The vendor does not get back that part of the land on foreclosure; it has been severed and removed, and the land has been permanently depleted, and the vendor’s security reduced, to that extent. [32]*32If the vendor were not entitled to a money judgment for severance of minerals or timber, where the contract provides for them, the vendees could strip the land and let the vendor take back the bare land on foreclosure, and with impunity — the vendees would have obtained what they wanted without paying for it.2 Accordingly, that portion of the money judgment will not be disturbed.

Turning to the summary judgment in favor of cross-complainant Lewis, appellants’ trial counsel also admitted that there was no defense to the note executed in Lewis’ favor pursuant to the parties’ buy-out agreement. Therefore, they have waived any objections to the granting of judgment on the note.

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Bluebook (online)
624 P.2d 628, 51 Or. App. 27, 1981 Ore. App. LEXIS 2130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rafter-q-cattle-co-v-oregon-sun-ranch-inc-orctapp-1981.