Rasmussen v. Martin

659 P.2d 155, 104 Idaho 401, 1983 Ida. App. LEXIS 210
CourtIdaho Court of Appeals
DecidedFebruary 22, 1983
Docket13429
StatusPublished
Cited by95 cases

This text of 659 P.2d 155 (Rasmussen v. Martin) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rasmussen v. Martin, 659 P.2d 155, 104 Idaho 401, 1983 Ida. App. LEXIS 210 (Idaho Ct. App. 1983).

Opinion

BURNETT, Judge.

Victor Hugo once described life as “a perpetual succession of events, to which man submits.” So it must have seemed to the principal parties here. Charles Rasmussen and John Martin entered into a complex series of business transactions, saw their relationship become sour, and then lost important records in a flood. A district court was asked to determine the respective obligations of the parties to each other. The controversy focused upon a joint farming venture and upon a real estate transaction.

With respect to the farming venture, the court found that the parties had settled their mutual obligations. In accordance with the settlement, the court held that Martin was indebted to Rasmussen for a specified sum of money, and that Rasmussen was entitled to proceeds of a contract with a third party. In regard to the real estate transaction, the court determined that Rasmussen owed a continuing obligation to Martin, but held that the obligation was one to perform future services, not to pay a present debt. Martin appealed. 1

The record is a thicket of obscurities and conflicting evidence. However, when consolidated, the issues on appeal are relatively straightforward. (1) Was there substantial evidence to support the trial court’s finding that the parties had settled their obligations relating to the farm venture? (2) Did the judge correctly hold that the obligation owed by Rasmussen to Martin, arising from the real estate transaction, was to provide services rather than to pay money? Because we answer both questions in the af *403 firmative, the judgment of the district court will be upheld.

I

The background facts concerning the farm venture are undisputed. Martin, a farm owner, leased a parcel of irrigated ground to Rasmussen in 1974. Rasmussen, who was not a farmer, entered into a “lease back” arrangement with Martin to grow potatoes on the farm. The parties agreed that certain expenses would be divided, that Martin would retain two-thirds of the potatoes grown, that Rasmussen would receive one-third, and that Rasmussen would guarantee the purchase of the other two-thirds from Martin at a price not less than a stated minimum. The agreement further provided for Rasmussen to lease storage space in potato cellars on or near Martin’s farm. The parties later supplemented their agreement with an addendum providing, among other things, that Rasmussen furnish Martin 14,000 sacks of certified seed potatoes, and that Martin assign to Rasmussen the future proceeds of a separate contract between Martin and a third party.

In addition to paying expenses defined by the agreement, Rasmussen advanced certain funds for payments on farm equipment used by Martin. Martin also obtained from Rasmussen 4,000 sacks of foundation seed potatoes. As noted below, when disagreement erupted between the parties, they disputed whether these 4,000 sacks were part of the 14,000 sacks which Rasmussen was obliged to provide under the addendum to their agreement.

The parties’ relationship began to fray when the potatoes grown on the farm were harvested and stored in the cellars. The district court found that the parties sold some potatoes from each other’s shares. Martin became displeased with the terms on which Rasmussen sold certain potatoes in which both parties had shares. Martin also claimed that Rasmussen had not furnished the 14,000 sacks of certified seed potatoes as agreed. Martin informed Rasmussen that he wanted to discontinue their business relationship. A conference ensued and the parties terminated the farming venture.

What transpired at the conference became the central inquiry in this lawsuit. The parties testified largely from memory, with incomplete'documentation. Although the parties had access to their records during the conference, many of the documents subsequently were lost in the Teton Dam flood. Rasmussen asserted that the conference had produced a settlement of the mutual obligations of the parties regarding the farm venture. The manager of a bank where both parties had done business testified that, to his understanding, the parties had made a full and final settlement. As part of the settlement, Rasmussen calculated that Martin owed him $9,615.50 after accounting for all mutual obligations. Martin gave Rasmussen a cheek for this amount at the conclusion of the conference. However, when Rasmussen presented the check for payment several weeks later, he learned that payment had been stopped.

The district court found that a settlement had occurred, and entered judgment accordingly. 2 In evaluating the fairness of the settlement, the court found that, although Rasmussen had not provided 14,000 sacks of certified seed potatoes, he was the source of 4,000 sacks obtained by Martin, as mentioned above. The court further found that Rasmussen was entitled to credits for funds advanced on the farm equipment and for certain potatoes sold from his share by Martin. The total consideration furnished by Rasmussen was found to equal the value of the third-party contract assigned by Martin, plus the amount of the settlement. Accordingly, the court held that the settlement was neither “unfair [n]or inappropriate under the circumstances.”

On appeal, Martin does not challenge the proposition that if two parties settle and compromise their disputed obligations, and if the agreement is neither tainted by duress nor later rescinded, the *404 settlement is binding upon the parties. This proposition is well established in Idaho law. E.g., Lomas & Nettleton Co. v. Tiger Enterprises, Inc., 99 Idaho 539, 585 P.2d 949 (1978); Nordling v. Whelchel Mines Co., 90 Idaho 213, 409 P.2d 398 (1965). Rather, Martin asserts that the district court erred by finding that the parties had reached such agreement.

Generally, the question of whether there was a sufficient meeting of the minds to form an agreement is to be determined by the trier of fact. E.g., Shields & Co., Inc. v. Green, 100 Idaho 879, 606 P.2d 983 (1980). Findings of fact by a trial court will not be disturbed on appeal unless they are clearly erroneous. I.R.C.P. 52(a). Clear error, in turn, will not be deemed to exist if the findings are supported by substantial and competent, though conflicting, evidence. E.g., J.E.T. Development v. Dorsey Const. Co., Inc., 102 Idaho 863, 642 P.2d 954 (Ct.App.1982).

As noted above, the record discloses that, at the conclusion of the conference between the parties, Martin gave Rasmussen a check but later stopped payment on it. The amount of the check coincided with Rasmussen’s computation of the net amount due him. These facts constitute substantial evidence that a settlement in fact occurred.

Martin urges that the district court, in finding a settlement, disregarded other competent evidence in the record.

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Bluebook (online)
659 P.2d 155, 104 Idaho 401, 1983 Ida. App. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rasmussen-v-martin-idahoctapp-1983.