Rice v. Hill City Stock Yards Co.

826 P.2d 1328, 121 Idaho 616, 1990 Ida. App. LEXIS 96
CourtIdaho Court of Appeals
DecidedJune 6, 1990
DocketNo. 17865
StatusPublished

This text of 826 P.2d 1328 (Rice v. Hill City Stock Yards Co.) 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
Rice v. Hill City Stock Yards Co., 826 P.2d 1328, 121 Idaho 616, 1990 Ida. App. LEXIS 96 (Idaho Ct. App. 1990).

Opinion

WESTON, Judge, Pro Tem.

In this quiet title action, we reverse a judgment for defendants and remand the case for entry of judgment in favor of the plaintiffs. The action involves approximately 155 acres of real property in Camas County. The real property in dispute lies adjacent to and west of the original town-site of Hill City, abutting the Union Pacific Railroad. The real property is bisected by State Highway 20. We will address four issues on appeal: (1) whether Rice received valid title to the real property by deed; (2) whether any portion of the real property in question was adversely possessed; (3) what interest Faulkner Land and Livestock may have in the real property; and (4) what interest any of the other defendants may have in the real property.

The pertinent facts are as follows. 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 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 stopover 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 “Darrinaga” in the caption of this case), and James Farmer as directors and shareholders. The district court found that these were the last known shareholders when the corporation forfeited its charter on November 30, 1939. I.C. § 30-614 [619]*619(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.

We will first consider Rice’s claim to the real property based upon the deed received from Farmer. The validity of this deed is dependent either upon the validity of the deed that J.E. Farmer received from his father or upon the establishment of adverse possession by J.E. Farmer. 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. Nevertheless, the invalid deed gave the grantee color of title relevant to a claim of adverse possession. See generally Fouser v. Paige, 101 Idaho 294, 612 P.2d 137 (1980); Bayhouse v. Urquides, 17 Idaho 286, 105 P. 1066 (1909); Boise City v. Wilkinson, 16 Idaho 150, 102 P. 148 (1909).

Next, we turn to the question of adverse possession. To establish title by adverse possession three elements must be proven: (1) the intent to possess; (2) adverse possession that is open, notorious, continuous and hostile, for the prescriptive period; and (3) knowledge by or notice to the party against whom adverse possession is asserted. Nelson v. Wagner, 108 Idaho 570, 700 P.2d 973 (Ct.App.1985) (review denied).

The real property north of Highway 20 consists of two parcels. There is a long, narrow fifteen-acre parcel which lies between the highway and an eighty-acre field belonging to Rice. There is also a field approximately seventy-five acres lying west of Rice’s eighty-acre field. It is not disputed that Rice fenced in both the fifteen-acre parcel and the seventy-five-acre parcel with his eighty-acre parcel in 1957. This was with the permission of James Farmer. From approximately 1957 until the time of trial, Rice farmed all of the enclosed real property as a single parcel. Until Rice acquired a lease from J.E. Farmer, his use of the real property was always with the permission of either J.E. Farmer or James Farmer. Rice developed a spring, built a spring house, corrals and loafing shed on the enclosed fifteen-acre parcel. The fences have been regularly maintained on the real property north of Highway 20 since 1957. Over the years, the unfenced parcel was used by various stockmen in the area, including Faulkner, as a resting place and for grazing. The use by other stock-men was with the blessing of Rice’s predecessors in title. This occasional use by other livestock owners in the area appeared to be confined to the unfenced southern parcel.

[620]*620Faulkner testified that he had never used the northern fenced parcel. Thus, the use by others, including Faulkner, appeared to be confined to the unfenced portion and was of a permissive character which would not defeat adverse possession. Where third parties are using a parcel with permission of the adverse possessor, the adverse possessor’s claim of title is not defeated. See Playa de Flor Land & Improvement Co. v. United States, 70 F.Supp. 281 (1945); Bruch v. Benedict, 62 Wyo. 213,165 P.2d 561, 570 (1946); Bloodsworth v. Murray, 138 Md. 631, 114 A. 575 (Ct.App.1921); 3 Am.Jur.2d Adverse Possession § 103 (2d ed. 1986).

The use of the real property by Rice as a tenant of J.E. Farmer could be used to support Farmer’s claim to ownership by adverse possession. Wood v. Brown Inc., 108 Idaho 739, 702 P.2d 777 (1985) (use by a lessee can be tacked to that of the landlord for purpose of establishing adverse possession). See also Bayhouse v. Urquides, supra. We thus conclude adverse possession has been shown during J.E.

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Related

Wood v. Brown Inc.
702 P.2d 777 (Idaho Supreme Court, 1985)
Cooper v. Boise Church of Christ of Boise, Idaho, Inc.
524 P.2d 173 (Idaho Supreme Court, 1974)
Nelson v. Wagner
700 P.2d 973 (Idaho Court of Appeals, 1985)
Branson v. Miracle
729 P.2d 408 (Idaho Court of Appeals, 1986)
Fouser v. Paige
612 P.2d 137 (Idaho Supreme Court, 1980)
Playa De Flor Land & Improvement Co. v. United States
70 F. Supp. 281 (District Court, Canal Zone, 1945)
Smith v. Steele Motor Co.
22 P.2d 1070 (Idaho Supreme Court, 1933)
Bloodsworth v. Murray
114 A. 575 (Court of Appeals of Maryland, 1921)
Bruch v. Benedict Barnes Bros.
165 P.2d 561 (Wyoming Supreme Court, 1946)
Boise City v. Wilkinson
102 P. 148 (Idaho Supreme Court, 1909)
Bayhouse v. Urquides
105 P. 1066 (Idaho Supreme Court, 1909)
Crandall v. Goss
167 P. 1025 (Idaho Supreme Court, 1917)

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Bluebook (online)
826 P.2d 1328, 121 Idaho 616, 1990 Ida. App. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-hill-city-stock-yards-co-idahoctapp-1990.