Schneider v. Schaaf

1999 ND 235, 603 N.W.2d 869, 1999 N.D. LEXIS 262, 1999 WL 1241154
CourtNorth Dakota Supreme Court
DecidedDecember 22, 1999
Docket990068
StatusPublished
Cited by33 cases

This text of 1999 ND 235 (Schneider v. Schaaf) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schneider v. Schaaf, 1999 ND 235, 603 N.W.2d 869, 1999 N.D. LEXIS 262, 1999 WL 1241154 (N.D. 1999).

Opinion

MARING, Justice.

[¶ 1] Bennie, Helen, and Monte Schneider appealed from an order denying their motion for a new trial in a tort and breach of contract action brought against Michael J. Schaaf and the estate of Michael V. Schaaf. We conclude the trial court did not abuse its discretion in denying the Schneiders’ motion for a new trial and in affirming summary judgment dismissal of their tort claims against the Schaafs. We affirm.

*872 I

[¶ 2] Bennie and Helen Schneider, both in their 70s at the time of trial, own a small farm in Stark County. In 1980, Michael J. Schaaf (“Michael”) began farming with his father, Michael V. Schaaf (“Michael Sr.”), who farmed in Morton County near Glen Ullin. In April 1982, Michael entered into a farm lease with Bennie to increase the Schaaf farming operation. Michael leased about 380 acres from Bennie from March 1, 1982 until October 15, 1984 for $18 per acre per year. Bennie leased the remainder of his crop acres to another farmer, Philip Messer. Other than grazing' cattle and raising chickens on the property, Bennie and Helen essentially ceased active farming.

[¶ 3] In 1984, Michael combined Morton County land owned and operated by Michael Sr. with the acreage he had been leasing from Bennie so all of the land owned and operated by the Schaafs could be treated as one unit for purposes of signing up for federal farm programs. Bennie, as record owner, signed the Agricultural Stabilization and Conservation Service (“ASCS”) “Farm Reconstitution” document allowing the reconstitution to take place. Messer also entered into an ASCS farm reconstitution and combined his own farm property with the land he leased from Bennie.

[¶ 4] The parties’ lease arrangement continued through the years, but the terms were not always properly documented. Extensions to the lease were accomplished by crossing out the date on the original document and substituting a new date, and other terms and conditions were simply added to the original lease. Because each of the parties to the lease retained his own copy of the document and each added amendments to their copies, their respective versions of the lease differ. The parties agree the lease was validly extended through the 1989 crop year. Michael, however, contended a separate document signed by Helen in March 1988 covered the 1988, 1989, and 1990 crop years. The Schneiders contended Michael and his wife obtained Helen’s signature on a “plain sheet” of paper and added the 1990 date to the document afterward.

[¶ 5] Before the 1989 crop year, the Schaafs separated their Morton County farming operation from the acreage Michael leased from Bennie, thereby returning Bennie’s property to its prior status as a separate parcel with its own farm number. Messer, however, did not dissolve his combined units, and his leased portion of Bennie’s land remained under the Messer farm number throughout 1989. During the summer of 1989, Bennie decided to place the acreage he had leased to Michael and Messer in the Conservation Reserve Program (“CRP”) beginning in 1990. Because of the drought conditions prevalent during the late 1980s, CRP was considered a desirable alternative for area farmers. Land in the area was entered into CRP in 1990 at $35 per acre, as opposed to the $18 per acre Bennie had been receiving under his lease with Michael. ASCS records reflect Bennie included in his August 1989 CRP application and in his final CRP contract the land he had been leasing to Michael and Messer.

[¶ 6] Bennie and Helen had difficulty acquiring ASCS approval of their CRP application. Landlord and tenant rules and regulations developed for implementation of the CRP program sought to protect existing tenants who had leased property as an essential part of their farming operation. See 7 C.F.R. §§ 713.109 and 713.150 (1988). The rules provided when a landlord entered into a CRP contract, existing tenants were granted rights, even if their leases had expired the previous year. See generally 11 Harl, Agricultural Laiv § 91.03[4][e][vi] (1999). The landlord and tenant rules did not apply, however, if the operator or tenant “left the farm voluntarily without any coercion from the landlord,” or if the operator or tenant “is replaced with a new operator or tenant....” ASCS CRP-1 Landlord and Tenant Provisions Handbook § 105B (1992). Bennie *873 .approached Michael and Messer during summer 1989 and presented them with documents he had drafted waiving then-rights under the CRP program, but both refused to sign the documents. Bennie then designated his son, Monte Schneider, as the replacement tenant on the CRP application, but Monte had driven bus for a number of years and had not participated recently in farming. Because the ASCS questioned Monte’s qualifications as an operator, the office initially refused to accept him as a valid tenant.

[¶ 7] In April 1990, Michael’s attorney at the time, Joseph A. Vogel, Jr., appeared with Michael before the ASCS committee and presented the lease extension agreement signed by Helen purporting to give Michael a lease on Bennie’s property through the 1990 crop year. Minutes of the meeting reflect the committee ignored the lease extension agreement and approved Monte as a qualified operator for purposes of Bennie’s CRP application. Consequently, the Schneiders received a 10-year CRP contract beginning in 1990 and received $35 per acre for their cropland.

[¶ 8] In April 1993, Bennie brought this action against Michael. Bennie alleged Michael had breached the terms of then-lease agreement in 1989 by tearing down some fences, by failing to maintain sufficient summerfallow, by planting sunflowers on waterways, and by his “[w]eed damage control.” Bennie also sought tort and punitive damages alleging Michael “intentionally violated the partiesf] Agreement and [Bennie’s] right to farm and ranch his own land at profit and did so in concert with others until at least 1990.... ” Bennie further alleged, to mitigate his losses from being unable to resume profitable farming operations, he enrolled his land in CRP and suffered net losses.

[¶ 9] Numerous amendments were made to the pleadings throughout the years, and Helen and Monte were added as plaintiffs and Michael Sr. was added as a defendant. The complaint grew to essentially allege the Schaafs had, through fraud, deceit, and other tortious actions, conspired with Mes-ser and various ASCS office employees to drive the Schneider family out of the farming business. The Schneiders sought more than $150,000 in damages.

[¶ 10] The Schneiders also brought a separate action against Messer in Stark County with similar allegations asserting his participation in a conspiracy to force them out of the farming business. The Schneiders’ action against Messer was dismissed on summary judgment in March 1998. The Schneiders also filed a complaint in federal court against four employees of the ASCS alleging a conspiracy to force them out of the farming business. The federal action, however, was dismissed upon the stipulation of the parties.

[¶ 11] In April 1998, the Schaafs moved for partial summary judgment dismissing the Schneiders’ tort claims against them.

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

Related

McDougall v. AgCountry Farm Credit Services, PCA
2020 ND 6 (North Dakota Supreme Court, 2020)
Avery v. Lahr Agency, LLC
D. North Dakota, 2019
Arnegard v. Arnegard Township
2018 ND 80 (North Dakota Supreme Court, 2018)
Metro Sales, Inc. v. Core Consulting Group, LLC
275 F. Supp. 3d 1023 (D. Minnesota, 2017)
Macquarie Bank Limited v. Bradley D. Knickel
793 F.3d 926 (Eighth Circuit, 2015)
Tibert v. Nodak Mutual Insurance Co.
2012 ND 81 (North Dakota Supreme Court, 2012)
Moore v. Fargo Public School District No. 1
2012 ND 79 (North Dakota Supreme Court, 2012)
Rudolph v. N.D. Department of Transportation
2012 ND 65 (North Dakota Supreme Court, 2012)
MacQuarie Bank Ltd. v. Knickel
723 F. Supp. 2d 1161 (D. North Dakota, 2010)
Goudreault v. Kleeman
965 A.2d 1040 (Supreme Court of New Hampshire, 2009)
Ward v. Bullis
2008 ND 80 (North Dakota Supreme Court, 2008)
Erickson v. Brown
2008 ND 57 (North Dakota Supreme Court, 2008)
WFND, LLC v. Fargo Marc, LLC
2007 ND 67 (North Dakota Supreme Court, 2007)
Humann v. KEM Electric Cooperative, Inc.
450 F. Supp. 2d 1006 (D. North Dakota, 2006)
BARON FINANCIAL CORP. v. Natanzon
471 F. Supp. 2d 535 (D. Maryland, 2006)
Livinggood v. Balsdon
2006 ND 11 (North Dakota Supreme Court, 2006)
Korynta v. Korynta
2006 ND 17 (North Dakota Supreme Court, 2006)
Nagel v. Sykes Realty, Inc.
400 F. Supp. 2d 1198 (D. North Dakota, 2005)
Schmidt v. Wittinger
2004 ND 189 (North Dakota Supreme Court, 2004)
Grandbois and Grandbois, Inc. v. City of Watford City
2004 ND 162 (North Dakota Supreme Court, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
1999 ND 235, 603 N.W.2d 869, 1999 N.D. LEXIS 262, 1999 WL 1241154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schneider-v-schaaf-nd-1999.