Sowards v. Rathbun

8 P.3d 1245, 134 Idaho 702, 2000 Ida. LEXIS 71
CourtIdaho Supreme Court
DecidedJuly 19, 2000
Docket24876
StatusPublished
Cited by33 cases

This text of 8 P.3d 1245 (Sowards v. Rathbun) 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
Sowards v. Rathbun, 8 P.3d 1245, 134 Idaho 702, 2000 Ida. LEXIS 71 (Idaho 2000).

Opinion

WALTERS, Justice.

This is an action seeking damages allegedly resulting from a fraudulent misrepresentation arising out of the purchase of a farm in Butte County. After a trial to the court, judgment was entered for the defendant-sellers, dismissing the plaintiffs’ complaint. This district court also awarded attorney fees to the prevailing defendants under the terms of the contract of sale. We affirm the judgment, but we set aside the award of attorney fees.

BACKGROUND AND PRIOR PROCEEDINGS

Norman and Mary Sowards purchased a farm in Butte County from Wayne and Mildred Rathbun in 1993. In the Spring of 1994, the Sowardses experienced problems with an irrigation well that was used to supplement the farm’s surface water rights. They believed that the Rathbuns had misrepresented the condition of the well and filed an action against the Rathbuns for fraudulent concealment, fraudulent misrepresentation, and violation of the Idaho Consumer Protection Act. Following a bench trial on April 16, 1998, the district court made the following findings of fact:

1. In 1971, defendants Wayne and Mildred Rathbun (Rathbuns) purchased a farm (farm) consisting of approximately 210 acres, located in Butte County, Idaho, from Willard Bell (Bell).
2. In about 1955, Bell had an irrigation well drilled on the farm. The well was drilled to a depth of about 110 feet and was lined with 16-inch casing. The bowls were set at a depth of about 40 feet. While he owned the farm, Bell operated it himself and also, at some point, leased the farm to his brother-in-law. As long as Bell operated the farm, the irrigation well produced adequate water for his needs. Bell did not place a 14-inch liner inside the well.
3. After the Rathbuns purchased the farm, they operated it themselves until they retired in 1989. During the time that *704 the Rathbuns were operating the farm, Wayne Rathbun (Rathbun) made no repairs to the irrigation well and did not cheek the depth of the well. The only maintenance he performed on the well was to add oil to the well pump. Rathbun did not place a 14-ineh liner in the well. During the time that the Rathbuns were operating the farm, the irrigation well produced sufficient water to irrigate the farm when used in conjunction with the water obtained through decreed water rights and storage water rights appurtenant to the farm. The Rathbuns never exhausted the decreed and storage water before beginning to use water from the irrigation well.
4. In 1989, the Rathbuns moved to Washington state and leased the farm to L. Vaughn Jensen and Jay Jensen (Jensens). The Jensens leased the farm from the Rathbuns until 1993.
5. In the late 1980s and early 1990s there was a drought in eastern Idaho. The area affected by the drought included Butte County, Idaho, where the farm is located.
6. In 1989, 1990, and 1991, the irrigation well, used in conjunction with the farm’s decreed and storage water, produced adequate water to irrigate the farm. The Jensens, like the Rathbuns before them, never exhausted the decreed and storage water before beginning to use water from the irrigation well
7. In 1992, the irrigation well began to cavitate. The Jensens informed Rathbun of the problem they were having with the irrigation well and that the well was not producing a satisfactory amount of water. Rathbun authorized the Jensens to attempt to lower the bowls in the well.
8. The Jensens hired a local company to pull the pump, column, tube, and shaft in order to lower the bowls in the well. They determined that the bowls were already close to the bottom of the well and could not be lowered any further. The Jensens then hired a well-drilling company to lower a video camera down the well to determine its condition. The video camera revealed that the well was approximately 98 feet deep and also that inside the weU’s 16-inch casing was a 14-inch liner which extended from a depth of approximately 53 feet to the bottom of the well. Because the majority of the 14-inch liner was not perforated, the flow of water into the well was restricted by the liner. The Jensens continued to use the well for the rest of the season but it did not produce enough water to irrigate the entire farm.
9. The Jensens told Rathbun, who was living in Washington state, that the bowls could not be lowered because they were already near the bottom of the well. The Jensens also told Rathbun that a video camera had been used to examine the well and that a video tape of the inside of the well had been made. Rathbun understood from his conversations with the Jensens that the well casing was broken; he did not know of the presence or condition of. the 14-inch liner. Rathbun decided not to deepen the irrigation well because of the expense, and also because doing so might have adversely affected the domestic wells in the area. However, as the landlord, Rathbun paid for the attempt to lower the bowls. Rathbun did not see first-hand the problems that the Jensens were having with the well and believed that, despite those problems, the Jensens were able to irrigate the entire farm.
10. In 1993, the Jensens were concerned that the irrigation well would not produce enough water to irrigate the entire farm that season. Rathbun agreed to reduce the rent on the farm in view of the fact that the Jensens would not be able to irrigate the entire acreage. To this end, Rathbun and the Jensens executed an addendum to the lease for the farm which reduced the number of acres the Jensens agreed to lease from 200 to 121. Of the remaining acres, Rathbun placed 67 acres in a set-aside program administered by the United States Department of Agriculture and was paid approximately $29 per acre for the 67 acres during that year.
11. In 1993, the Jensens gave the Rathbuns notice that they no longer intended to lease the farm.
12. Sometime in 1993, Norman Sowards (Sowards) learned from his parents, whom the Rathbuns had visited during the summer, that the Rathbuns might be interested in selling the farm. In the fall of 1993, but before October 30, 1993, Sowards placed a telephone call to Rathbun and *705 expressed his interest in purchasing the farm. On October 30, 1993, Rathbun himself placed a call to Sowards to discuss the sale of the farm.
13. In the course of these conversations, Rathbun described the general layout of the farm and what equipment would be included in its sale.
14. Following these telephone conversations with Rathbun, Sowards personally inspected the farm on two occasions. On the first occasion, Sowards inspected the farm alone and spoke to L. Vaughn Jensen. Sowards did not discuss the farms irrigation system with either L. Vaughn Jensen or Jay Jensen. On the second occasion, Sowards inspected the farm with Mike Fallert, who worked for Sowards’s parents on then’ nearby farm. On neither occasion did Sowards test the irrigation well.
15. After Sowards’s two inspections of the farm, he and Rathbun spoke a third time by telephone regarding the sale of the farm.

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Cite This Page — Counsel Stack

Bluebook (online)
8 P.3d 1245, 134 Idaho 702, 2000 Ida. LEXIS 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sowards-v-rathbun-idaho-2000.