System Terminal Corporation v. Cornelison

364 P.2d 91, 1961 Wyo. LEXIS 111
CourtWyoming Supreme Court
DecidedAugust 25, 1961
Docket3003 and 3004
StatusPublished
Cited by6 cases

This text of 364 P.2d 91 (System Terminal Corporation v. Cornelison) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
System Terminal Corporation v. Cornelison, 364 P.2d 91, 1961 Wyo. LEXIS 111 (Wyo. 1961).

Opinion

Mr. Justice PARKER

delivered the opinion of the court.

The Cornelisons, husband and wife, owners of grazing land in Custer County, South Dakota, filed suit against the System corporations and B. M. Stewart, a principal stockholder, alleging plaintiffs’ ownership of the land, a five-year lease to the defendants, their failure to yield up the premises in good order, overgrazing, and misuse of the land contrary to the covenants of the lease, claiming $9,119.16. Defendants admitted the lease but denied other allegations and counterclaimed for $3,000 because of plaintiffs’ pasturing the land for several months during the term of the lease. The court found for plaintiffs in the sum of $2,709.04, but also found for the defendants on the counterclaim in the amount of $833.-34, rendering a judgment of $1,875.70 for plaintiffs. Both parties have appealed, plaintiffs because the counterclaim was allowed against them and defendants from the entire judgment. With certain minor exceptions to be mentioned hereafter, the facts are not in dispute.

On February 26, 1954, the plaintiffs executed a lease to System Terminal Corporation, 1 doing business as LAK Ranch, for a five-year period from September 1, 1954, until September 1, 1959, at $5,000 per year, defendants having previously entered into possession of the land by reason of a purchase of the interest of one Marshall, the former lessee. During May or June of 1954, buildings, corrals, and improvements on the leased land were knocked down and pushed in piles by defendants’ bulldozer. Prior thereto, Ward, defendants’ manager, had discussed the matter which Cornelison, but there is not unanimity as to the nature of the conversation. Ward testified that he asked Cornelison if he could remove two buildings, tear down the corral fence, and put in a good corral, and that Cornelison said all right. Cornelison testified that Ward said something about making a gate on the back of the barn and that when Ward said the chicken house was going to fall down he replied that if it was in the way it didn’t amount to anything and to do whatever he wanted, tie said these were the only two things they talked about.

The rentals were paid in 1954, 1955, and the first installment of 1956. About June of that year there were certain negotiations and correspondence between the parties about the possible termination of the lease by defendants. Thereafter, $2,500 in rental due on September 1, 1956, remained unpaid; and on November 15 plaintiffs brought 200 sheep, 23 cattle, and 4 horses on the place. Fawcett, an employee of plaintiffs’ who had previously been with the sheep, commenced living on the premises at that time. The sheep were fed cake and hay and stayed in the neighborhood of the improvements on the ranch, while the cattle, kept two miles distant, were fed hay *93 and were said to have eaten some brush and Russian thistle. It was conceded that both the sheep and cattle grazed some, and one witness said that the horses were all over the ranch.

Defendants in their appeal rely wholly upon the insufficiency of the evidence to support the judgment, recognizing the rule enunciated in Eblen v. Eblen, 68 Wyo. 353, 234 P.2d 434, that this court must assume that the evidence in favor of the successful party is true, leave out of consideration entirely the evidence of the unsuccessful party in conflict therewith, and give to the evidence of the successful party every favorable inference which may be reasonably and fairly drawn from it. Defendants contend, however, that the only evidence concerning any damage or misuse of the property is the showing that it was in good condition in February 1954 and in bad condition September 1, 1959, whereas the lease did not begin until September 1, 1954, and there is no showing that the property deteriorated or was misused between the initial and terminal dates of the lease. To this, plaintiffs respond that the defendants “were charged with the conditions at the time the agreement was entered into and possession under the lease given to the tenant.”

The propriety of the principal judgment would seem then to depend upon the answer to the question, Was defendants’ taking possession of the premises at the date of the lease a receipt thereof under the provisions of those paragraphs in the lease which stated:

“Second party agrees that it has received these premises in good order and condition and that at the expiration hereof it will surrender said premises in as good order and condition as when received ordinary wear and tear and loss by fire and act of God alone excepted.
“Second party agrees herein that it will keep all fences and buildings in repair and first parties agree to furnish all materials, wire and posts necessary or if second party shall supply the same they may receive credit on rental payments for all such materials so furnished.” 2

The litigants cite no direct precedent to substantiate or justify their respective positions but instead rely on statements so general in nature that they are scarcely helpful. Defendants quote 51 C.J.S. Landlord and Tenant § 416:

“The burden is on the landlord * * * to show the condition of the premises at the commencement and at the termination of the term * * *. (Emphasis supplied)”

And plaintiffs respond with § 408 from the same authority:

“ * * * the law imposes on a tenant the obligation to return the premises at the termination of the tenancy substantially in the same condition as when he received possession * * *. (Emphasis supplied)”

A single statement from Miller v. Bellknap, 75 Idaho 46, 266 P.2d 662, 665, is quoted by both parties :

“ * * * When he has shown the condition of the property at the time he delivered it to the tenant, and its condition when surrendered * * * the landlord makes out a prima facie case * * *.”

Defendants contend that plaintiffs failed to sustain the burden of proving damages since there was no evidence submitted on the condition of the premises at the time of the commencement of the lease, September 1, *94 1954, but all of it related to a period more than six months earlier. They overlook the fact that in their lease they stated that they had received the premises in good order and condition. Undoubtedly this statement is true. The testimony of Ward is significant on that point:

“Q. Are you familiar with the Cor-nelison Ranch about which there has been testimony here? A. I am.
"Q. When did you visit that ranch? A. Well, in January of *53 — ’54 I should say.
“Q. And did you have occasion to go over and inspect the whole ranch? A. Yes.
“Q. For what purpose? A. Well, it was just part of my job to go over and see the fences and stuff, to see in what condition the thing was in as a whole.
“Q. Was the LAK contemplating taking a long term lease on the place? A.

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Bluebook (online)
364 P.2d 91, 1961 Wyo. LEXIS 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/system-terminal-corporation-v-cornelison-wyo-1961.