Rice v. Hill City Stock Yards Co.

826 P.2d 1288, 121 Idaho 576, 1992 Ida. LEXIS 16
CourtIdaho Supreme Court
DecidedFebruary 3, 1992
Docket18949
StatusPublished
Cited by11 cases

This text of 826 P.2d 1288 (Rice v. Hill City Stock Yards Co.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. Hill City Stock Yards Co., 826 P.2d 1288, 121 Idaho 576, 1992 Ida. LEXIS 16 (Idaho 1992).

Opinion

ON DENIAL OF PETITION FOR REHEARING

BAKES, Chief Justice.

Plaintiffs Gwinn and Lena Rice brought this action against defendants Hill City Stock Yards, Faulkner Land & Livestock, Inc., and others, seeking to quiet title in certain real property in Camas County, Idaho. The trial court denied plaintiffs’ claim to the property. Plaintiffs appealed this decision, and the Court of Appeals reversed and remanded the case for entry of judgment in favor of plaintiffs. Upon denial of defendants’ petition for rehearing, the Court of Appeals issued an addendum to its original decision, still holding in favor of plaintiffs. Defendants then filed a petition for review of the Court of Appeals decision, and this Court granted that petition.

The Court of Appeals opinion set forth most of the pertinent facts:

The real property was originally purchased and owned by the Hill City Stock Yards Company, a corporation. The corporation was' formed by a group of sheepmen operating in Camas County. The real property was used by those shareholders, a day or two each year, as a staging area to prepare livestock for shipment by rail. During the 1950’s, shipping by rail was discouraged and the *578 stockmen began shipping by truck. Consequently, the real property ceased to be used to prepare livestock for shipment on the railroad. It remained in use only as an occasional stop-over point for livestock operators trailing either sheep or cattle to or from the summer range. The record title to the real property was vested in Hill City Stock Yards Company, which had been incorporated in Idaho on August 30, 1938. In its 1938 annual statement, the corporation listed R.H. Bennett, Joe Urquidi, P.M. Gandiago, Joe Barinaga (listed as Joe “Darrianaga” in the caption of this case), and James Farmer as directors____ The district court found that these were the last known [directors] when the corporation forfeited its charter on November 30, 1939. I.C. § 30-614 (repealed effective July 1,1981). The corporation was never reinstated and eventually was dissolved by operation of law on March 1, 1979. I.C. § 30-614.
On February 1, 1967, James Farmer gave his son, J.E. Farmer, a quitclaim deed to the corporation’s real property. James Farmer died a few months later. The deed recited that James Farmer acted as the sole surviving trustee of Hill City Stock Yards Company in making the conveyance. J.E. Farmer did not record the deed until 1978, but in 1968 he began paying the taxes assessed against the real property.
Gwinn Rice, a farmer residing at Hill City, used the real property since 1957 with the informal permission of both James and J.E. Farmer. In April, 1981, Rice entered into a formal written lease with J.E. Farmer for a five-year term. After the expiration of the lease, on June 6, 1986, Rice obtained a deed to the real property from J.E. Farmer and his wife. Rice then commenced this quiet title action, claiming title both by virtue of the deed obtained from J.E. Farmer and by adverse possession. After trial, the district court concluded that Rice had no claim to the real property either by deed or by adverse possession. This appeal followed.

In addition to the foregoing facts, the record reflects that Faulkner Land & Livestock (Faulkner) purchased a sheep ranching business from Riley Smith and James and J.E. Farmer in 1945. Faulkner claims that this purchase of James Farmer’s sheep ranching business also included James Farmer’s interest in the property owned by Hill City Stock Yards, to which Rice is now attempting to quiet title.

The trial court found that Rice had no valid claim to the property because the deed from James Farmer to his son, J.E., was a nullity and also because neither Rice nor the Farmers had met the elements of adverse possession. The trial court also found that Faulkner obtained a beneficial interest in the Hill City Stock Yards Co. when it purchased the sheep ranching business from the Farmers. The Court of Appeals agreed that the deed to Rice was a nullity, but reversed the trial court’s conclusion that J.E. Farmer did not adversely possess the property, holding that Rice had adequately shown that J.E. Farmer had fulfilled the requirements of adverse possession. The Court of Appeals also ultimately found that Faulkner’s claim to a beneficial interest in the property was invalid as it was based on hearsay testimony.

The first issue on this appeal has two components: Did the trial court correctly conclude that the plaintiffs had no valid claim to the property because, first, the quitclaim deed given to J.E. Farmer by James Farmer was a nullity, and second, there was no substantial and competent evidence to support Rice’s claim to the property by adverse possession? Then we are required to determine if the trial court erroneously concluded that Faulkner Land and Livestock has a beneficial interest in the property.

When this Court reviews a decision of the Court of Appeals, we give consideration to the ruling of the Court of Appeals, but make an independent appellate review of the trial court’s decision. Sato v. Schossberger, 117 Idaho 771, 792 P.2d 336 (1990); State ex rel. Evans v. Barnett, 116 Idaho 429, 776 P.2d 438 (1989). The district court, as trier of fact, is in the best *579 position to judge the credibility of evidence. Therefore, if substantial and competent, though conflicting evidence supports the trial court’s findings of fact, we will uphold those findings on appeal. I.R.C.P. 52(a); MacNeil v. Minidoka Memorial Hosp., 108 Idaho 588, 701 P.2d 208 (1985); Rueth v. State, 103 Idaho 74, 644 P.2d 1333 (1982).

We first consider the trial court’s conclusion that J.E. Farmer did not receive a valid deed to the property from his father. The Court of Appeals explained its decision to uphold the trial court’s holding as follows:

The trial court found that the deed from James Farmer to J.E. Farmer was a nullity and conveyed no interest in the real property. We agree. The deed recited that J.E. Farmer, as grantor, was acting as the “sole surviving trustee of Hill City Stock Yards Company.” The trial court found that J.E. Farmer was not, in fact, the sole surviving trustee of Hill City Stock Yards Company. Moreover, the law requires that those serving as statutory trustees, in winding up the affairs of a forfeited corporation, must act in concert, not unilaterally. Smith v. Steele Motor Company, 53 Idaho 238, 22 P.2d 1070 (1933). Thus, the deed from James Farmer to J.E. Farmer was defective and it did not pass title.

The Court of Appeals correctly affirmed the trial court on this issue. There is evidence in the record to support the trial court’s finding that Joe Barinaga, an original director of Hill City Stock Yards, who also became a trustee when the corporation forfeited its charter in 1939, was still alive when James Farmer deeded the property to J.E. Farmer in 1967.

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Bluebook (online)
826 P.2d 1288, 121 Idaho 576, 1992 Ida. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-hill-city-stock-yards-co-idaho-1992.