Stanser v. Cather

123 N.W. 316, 85 Neb. 305, 1909 Neb. LEXIS 358
Nebraska Supreme Court·Decided November 9, 1909·No. No. 15,793·Published·Cited by 9 cases

Opinion

Barnes, J.

Action to quiet title as lessee to certain educational land, commonly called school land, situated in Webster county, and to confirm plaintiff’s right to release and retain possession thereof as against a subsequent lessee. Judgment was rendered in favor of the plaintiff, and the defendants have appealed.

It appears that two separate 40-acre tracts of land leased at different times and under different statutory [307] provisions are involved in this controversy, and they will be considered separately in this opinion.

There are no disputed facts in this case, and it appears that on the 11th day of March, 1879, John B. Stanser, the plaintiff below, leased from the state the northwest quarter of the southeast quarter of section 21, township 1, range 10 west, under the provisions of the statutes then in force. Among other things, the law then provided that school lands leased under its provisions should at the expiration of five years from the date of the lease, and every five years thereafter, be reappraised by three persons, one to be appointed by the county clerk of the county in which the lands Avere situated, one by the lessee, and the third to be appointed by the other two appraisers. Each new appraisement Avas to be the basis of rental value for the succeeding five years after the next first day of January. Laws 1877, p. 174. At the time the land above described was leased to the plaintiff it Avas appraised at the sum of $50 for the whole 40-acre tract, and the lease provided for the payment of an annual rate of 8 per cent, upon that valuation semiannually in advance, so that the amount Avhich the plaintiff was required to pay for the land in question was $4 a year. The land Avas not reappraised until after the passage of the act of 1883, Avhich took from the lessee all choice in the selection of appraisers. Laws 1883, ch. 74, sec. 19. It was reappraised under the provisions of that act in the .year 1903, and was valued at $7 an acre, or $280 for the entire tract. The plaintiff refused to pay his rent based on the new A'aluation, and the commissioner of public lands and buildings, yielding to his contention that he should only be required to pay the rate of rental provided in his lease until its expiration, accepted such payments until January 1, 1904, at which time the lease expired. Plaintiff Avas then notified that, if he desired to renew his lease, he would be required to pay a rate of rental based on the new appraisement of $7 an acre. This he refused to do, and insisted that no legal appraisement of the land had [308] ever been made, claimed the right to appoint one of the appraisers himself, and refused to pay any amount of rent greater than that provided for by his lease until a reappraisement should be made under the provisions of the law which were in force at the time it Avas executed; that is to say, until the. land should be again appraised by three persons, one to be appointed by the county clerk, one by himself, and the third by the other two appraisers. After considerable correspondence, and after the plaintiff had refused to release the land under any other terms or conditions than, those above stated, and some two years after the expiration of his lease, the land was finally leased to the defendant Charles F. Cather on his bid of $7.30 an acre, and the plaintiff thereafter commenced this action for the purposes above stated.

It thus appears that the question to be determined is whether or not the plaintiff is entitled to ignore the provisions of the existing law relating to the appraisement of school lands, and demand from the state a neAV lease under the provisions of the statute recited in his old lease. It is plaintiff's contention that there has been no valid appraisement of the land in question, and, until such appraisement is made, he has the right to demand and receive a new lease based on the same rental as that pro-Added in his old lease, Avliich has long since expired. In support of this contention he cited State v. McPeak, 31 Neb. 139, and State v. Thayer, 46 Neb. 137. In those cases it Avas held that, under a lease contract authorized by the statute, the legislature could not deprive the lessee of the right to select an arbitrator to act in conjunction Avith one selected by the state to appraise the rental value of the land for the succeeding five years. We are in full accord with this rule, but are of opinion that it has no application to the facts of this case. There the lease had not expired. Here plaintiff's lease expired long before any attempt was made to lease the land in question to the defendant Cather. With the expiration of his lease the only right reserved by its terms to plaintiff was that of [309] .releasing the land without competitive bidding. It is provided by section 16, ch. 80, Comp. St. 1909: “The holders of lease contracts executed prior to July 9, 1897, are hereby given the right, at the expiration of said contracts, to malee application for and receive new lease contracts upon said lands, as provided in the preceding section ; except, that they will not be required to compete for the contracts and the rate of rental will be the same as stipulated in the old contract; Provided, that all of the rental due on the old contracts has been paid.” This statute was evidently enacted to promote permanency of interest on the part of the lessee, and to encourage him to improve his leasehold. It gives him a substantial advantage over all strangers to the land. It permits him to renew his lease without competition at the rate of interest he had been paying, while strangers must subject themselves to competitive bids; and the expression “rate of rental” is synonymous with the rate of interest. The testimony discloses that, had the plaintiff made an application in 1904, the commissioner would have gladly executed to liim a lease conditioned on his bidding 8 per cent., which was his old rate of rental on an appraisement of $7 an acre. This the plaintiff would not do. If, as contended by him, the appraisement of 1903 was invalid, that fact did not entitle him to release the land at the original appraisement of $50. During the 25 years which elapsed from 1879 to 1904 the land had greatly increased in Amine, and this plaintiff recognized by bidding for it at auction on a valuation of $2.50 an acre. The commissioner, after offering him every opportunity to again lease and retain possession of the land, finally leased it to defendant Gather, who bid therefor an amount greater than the value fixed by the appraisement of 1903.

By his conduct in thus refusing to comply with the provisions of the law, plaintiff forfeited all of his rights to the tract of land in question, except such as relate to the improvements which he has placed thereon. This question, for lack of evidence, cannot be determined on [310] this appeal, but may be ascertained" in- a proper proceeding for that purpose. It follows that the judgment of the district court, so far as it relates to the 40 acres of land above described, must be reversed.

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Stanser v. Cather, 123 N.W. 316, 85 Neb. 305, 1909 Neb. LEXIS 358 (Neb. 1909).

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