Roseneau Foods, Inc. v. Coleman

374 P.2d 87, 140 Mont. 572, 1962 Mont. LEXIS 102
CourtMontana Supreme Court
DecidedAugust 15, 1962
Docket10350
StatusPublished
Cited by26 cases

This text of 374 P.2d 87 (Roseneau Foods, Inc. v. Coleman) 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
Roseneau Foods, Inc. v. Coleman, 374 P.2d 87, 140 Mont. 572, 1962 Mont. LEXIS 102 (Mo. 1962).

Opinion

MR. JUSTICE CASTLES

delivered the Opinion of the Court.

This is an appeal from a judgment and decree of the district court of the tenth judicial district sitting without a jury. The action was brought by the plaintiffs, appellants here, for unlawful detainer of certain rental property used to conduct a meat business and for treble rent as damages. Judgment was for the defendant.

The plaintiffs generally will be referred to as the landlord. The defendant respondent as the tenant. Roseneau Foods, Inc., is the successor in title to the property from the Fergus County Creamery, Inc. Part of the Creamery’s property involved here, was used for a creamery and part was used for a meat processing department.

On April 1, 1957, the tenant entered into possession of the last-mentioned property to conduct a meat processing and selling business. The tenancy was pursuant to an oral agreement alleged to be for three years with an option to continue for another two years. In August 1957 the tenant proposed a written lease which the landlord, through its president, William Dissly, refused to execute. The record indicates that the reason for this was that the landlord wished to sell the premises, and it was felt that a lease would hinder a sale. The tenant testified over objection that at the time the written lease was offered, William Dissly, since deceased, stated “Floyd, three years would be too long for us to tie up the place, we might want to sell it, but you will always have a year — plenty of time to get out.” The tenant continued in possession and was in possession when this action was commenced.

The record shows that rent was paid at the rate of $300 a month with no advanced payments made until April 1959. *575 From that time on payments were made as follows: April 1959, $900; June 1959, $900; September 1959, $900; January 1960, $900; March 1960, $900; April 1960, $900; May 1960, $300. The landlord’s secretary-treasurer, who is also its accountant, testified that the afore-mentioned rental payments were accounted for on a monthly basis. The landlord’s president, Howard Dissly, requested the payments in advance, and upon cross examination testified that at the time the rent payments were requested, there was no discussion concerning the tenancy, and no thought was given as to the date the rent was paid up to; it was just more money on the rent.

This action was commenced on November 7, 1960. Tenant was given a notice on September 28, 1960, to quit the premises by October 31, 1960. A three-days notice was given on November 1, 1960.

The tenant in his answer to the complaint filed a cross complaint in which he alleged that the bringing of the unlawful detainer action constituted a breach of an implied covenant of quiet enjoyment, and sought treble rent and attorney’s fees as damages.

The trial court found, in part, that rent was paid on a monthly basis; that the business fluctuated seasonably each year; that there was no claim of default in the payment of rent; and that the tenant established a name, telephone listing, and accounting system for the business different from those previously used. The court then concluded that the tenancy created by the oral agreement between the plaintiff’s predecessor in title and the defendant was a tenancy from year to year. It was decreed that the tenant was entitled to possession at the time the action was commenced, that plaintiffs take nothing by their complaint, and that the tenant recover costs and disbursements in the sum of $10.50.

The first question presented by appellants’ specifications of error is whether the court erred in finding that rent was paid *576 on a monthly basis and then in concluding that the tenancy created by the oral agreement was a tenancy from year to year.

The propriety of the landlord’s action depends upon the nature of tenancy. If the oral agreement or lease was valid, as will be discussed later, the tenant was entitled to possession until the proper termination thereof, i. e., to April 1961. However, if the lease was invalid under the statute of frauds, and the nature of the tenancy resulting therefrom would produce the same result, it is immaterial to determine whether or not the lease was invalid under the statute. The determining question then is what was the nature of defendant’s tenancy at the time the action was brought and not whether or not the lease was invalid under the statute of frauds. For the purpose of this point in our decision we will assume that the lease was invalid under the statute of frauds.

It has been stated by this court that entry under an invalid oral lease creates a tenancy at will. Centennial Brewing Co. v. Rouleau, 49 Mont. 490, 143 P. 969. However, this may not be true in every case. Entry by a tenant under an invalid oral lease may create a tenancy from year to year, month to month, or a tenancy at will depending upon the circumstances. 3 Thompson, Real Property, § 1021 (4th ed. 1959).

R.C.M.1947, § 42-203, provides: “A hiring of real property, other than lodgings and dwelling houses, in places where there is no usage on the subject, is presumed to be for one year from its commencement, unless otherwise expressed in the hiring.”

The property in question was not a lodging or dwelling house. There was no testimony of any usage on the subject. Therefore, when the tenant entered on April 1, 1957, his hiring of the property was presumed to be for one year from its commencement. The statute contains nothing about a need for an expression in writing. Thus, under this section it would be possible to have an oral lease for at least one year without an expression as to time therein. This would be consistent with our statute of frauds, R.C.M.1947, § 13-606, which voids an *577 oral agreement for the -leasing of realty of a period longer than one year.

Likewise, under our statute of frauds an oral lease for more than a year would be invalid, and evidence of the agreement and secondary evidence of its contents could not be introduced. R.C.M.1947, §§ 13-606 and 93-1401-7. The result then in the present ease under section 42-203, supra, absent other circumstances, would be a tenancy for a year because there would be no expression of time to rely upon in an invalid oral lease.

Notice that section 42-203 provides that the hiring is presumed to be for one year. This presumption is not listed as a conclusive presumption in section 93-1301-6 so it is therefore rebuttable. R.C.M.1947, § 93-1301-5. If the presumption is not controverted, the facts must be found according to the presumption, or, if it is controverted, the presumption must be given weight as evidence. Lewis v. New York Life Ins. Co., 113 Mont. 151, 124 P.2d 579; Dial v. Dial, 131 Mont. 310, 310 P.2d 610.

The trial court concluded that the tenancy was from year to year, and we will not now overturn that conclusion. The facts show that the meat business of the tenant had seasonal variations so that it would take a year to balance out the ups and downs. Both the landlord and the tenant were aware of this.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Masters Group v. Comerica Bank
2021 MT 161 (Montana Supreme Court, 2021)
King v. State Farm Mut. Auto. Ins. Co.
2019 MT 208 (Montana Supreme Court, 2019)
Hinebaugh v. McRae
2011 MT 270 (Montana Supreme Court, 2011)
Kuhr v. City of Billings
2007 MT 201 (Montana Supreme Court, 2007)
Kohl v. PNC Bank National Ass'n
912 A.2d 237 (Supreme Court of Pennsylvania, 2006)
JS PROPERTIES, LLC v. Brown & Filson, Inc.
914 A.2d 297 (New Jersey Superior Court App Division, 2006)
Kohl v. PNC Bank National Ass'n
863 A.2d 23 (Superior Court of Pennsylvania, 2004)
Eagle Watch Investments, Inc. v. Smith
924 P.2d 257 (Montana Supreme Court, 1996)
Stevens v. State Compensation Mutual Insurance Fund
886 P.2d 962 (Montana Supreme Court, 1994)
Willson v. Terry
874 P.2d 1234 (Montana Supreme Court, 1994)
Rahman v. Federal Management Co.
505 N.E.2d 548 (Massachusetts Appeals Court, 1987)
Prescott v. Smits
505 A.2d 1211 (Supreme Court of Vermont, 1985)
Hill v. Turley
710 P.2d 50 (Montana Supreme Court, 1985)
Kadillak v. Montana Department of State Lands
643 P.2d 1178 (Montana Supreme Court, 1982)
D. M. Development Co. v. Osburn
625 P.2d 157 (Court of Appeals of Oregon, 1981)
Masonovich v. School District No. 1
582 P.2d 1234 (Montana Supreme Court, 1978)
Luppold v. Lewis
563 P.2d 538 (Montana Supreme Court, 1977)
Veterans Rehabilitation Center, Inc. v. Birrer
551 P.2d 1001 (Montana Supreme Court, 1976)
Bitney v. School District No. 44
535 P.2d 1273 (Montana Supreme Court, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
374 P.2d 87, 140 Mont. 572, 1962 Mont. LEXIS 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roseneau-foods-inc-v-coleman-mont-1962.