Warm River Lumber Co. v. Rightenour

174 P.2d 940, 67 Idaho 187, 1946 Ida. LEXIS 141
CourtIdaho Supreme Court
DecidedNovember 7, 1946
DocketNo. 7322.
StatusPublished
Cited by4 cases

This text of 174 P.2d 940 (Warm River Lumber Co. v. Rightenour) 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
Warm River Lumber Co. v. Rightenour, 174 P.2d 940, 67 Idaho 187, 1946 Ida. LEXIS 141 (Idaho 1946).

Opinion

*188 HOLDEN, Justice.

Appellant was a mill operator for about thirty-five years, and owned certain mill machinery and equipment for the manufacture of lumber and other forest products, located at West Yellowstone, Montana, worth approximately $7,000 and having a rental value of $3,000 per annum.

Randall C. Howe was manager, secretary-treasurer, and principal owner of the Howe Lumber Company engaged in the lumber business at Ashton, Idaho, and personally owned a millsite at the junction of Warm River and Snake River in Fremont county, Idaho.

Sometime in the first part of July, 1943, Howe and appellant discussed the matter of the organization of a corporation for leasing the mill and manufacturing lumber at such millsite. As result of the conversations, the Warm River Lumber Company (hereinafter referred to as the Company) was incorporated by Randall C. Howe. His wife, Jessie B. Howe, was made president and Howe secretary-treasurer and manager. Mr. Howe was also the principal owner of the company so organized. As a matter of fact, he was both the Warm River Lumber Company and the Howe Lumber Company.

Following the organization of the Warm River Lumber Company and the making of what is called “Agreement of Lease and Employment”, July 15, 1943, between the last named company and appellant, the mill machinery and equipment was moved from West Yellowstone to Howe’s millsite in Idaho. By the terms of the said “Agreement of Lease and Employment”, appellant leased the mill, machinery and equipment to the Company for a period of ten years, reserving title thereto in himself. The lease contains many conditions not deemed pertinent on this appeal. The following *189 are the conditions deemed pertinent and were, by the parties themselves, made express conditions of the lease:

That the Company would employ appellant as superintendent of operations, subject to the general control and direction of the officers of the Company; that the Company would pay appellant a salary “equal to that paid by other like industries, in the vicinity or territory, for the class of work he may be doing from time to time” ; (later fixed by mutual agreement at $1.25 an hour for forty hours a week, and time and a half for hours in excess of forty, it being further agreed appellant was to draw $150 a month, $75 every pay day, the first and 15th of each month); that the Company would pay appellant a minimum rental of $10 per year for the use of the mill, and in addition thereto fifty per cent of the profits (there were no profits); that the Company would market the lumber and other products and “use its best endeavors to obtain the best market prices” for lumber and other products of the mill; that the Company would protect and keep the leased property “in repair and make and provide all parts and replacements made necessary by wear and breakages, and the title and ownership of all such repair and replaced parts shall pass to and remain in the lessor [appellant] upon their being installed as a part, or parts of the mill or other equipment”; that, at the end of the term of the lease, the Company would “return and deliver up to the lessor all the machinery, equipment and other property covered and affected by this lease and all such that may hereafter be supplied and furnished by the lessor in as good condition as the same now is or may be put into during the term of the lease, reasonable use and damage by the elements excepted”.

Appellant supervised the installation of the mill machinery. Following that, in October, 1943, the mill was put in operation. By the end of the year 1943, appellant had earned wages amounting to $500.89, which were, however, by written agreement (apparently prepared by Mr. Howe), indefinitely deferred, and then never paid.

Sometime in December, 1944, being in poor health, appellant went to California. He returned in March, 1945, and resumed superintendency of mill operations. Later, the Company, being in default in the payment of wages due him, notwithstanding repeated demands therefor, in the exercise of his rights (as later found by the trial court), appellant on the 3rd day of July, 1945, “refused to run the mill” any longer and later took possession and removed certain of the machinery and equipment described in the lease.

July 10, 1945, plaintiff and respondent, Warm River Lumber Company, commenced this action in claim and delivery against appellant, J. H. Rightenour, to recover such personal property or the value thereof, in case delivery and possession could not be had. On the same day an “Affidavit *190 of Claim” was made and “Undertaking in Claim and Delivery” filed, and notice given and demand made upon the sheriff to take possession of the personal property described in the affidavit. July 17, 1945, the sheriff made and filed his “Return on Affidavit of Claim”, listing the property seized and taken possession of pursuant to demand.

November 1, 1945, appellant Rightenour filed an answer to the complaint in replevin and a cross-complaint against the Company, and, December 10, 1945, the Company filed its answer to such cross-complaint. Trial was had commencing January 31, 1946, before the court sitting without a jury. April 26, 1946, findings of fact and conclusions of law were made and filed. April 30, 1946, judgment was entered thereon in favor of the Company and against appellant, from which he appeals.

Appellant contends the contract is not severable and that the stipulation therein for his employment is “an essential and material term, and interdependent with, and inseparable from, his promise to lease the property.”

This court held in Spokane Cattle Loan Co. v. Crane Creek Sheep Co., 39 Idaho 801, 806, 230 P. 772, that “In determining whether or not a contract is sever-able, the contract itself and the circumstances surrounding the making of it should be considered.”

Tersely stated, it appears from the contract itself in the case at bar and the circumstances surrounding the making of the same, that appellant was a lumber mill operator with thirty-five years experience; that he owned a mill, tractor, trucks, road grader, and other equipment suitable for the manufacture of lumber, located in the town of West Yellowstone, Montana; that the Howe Lumber Company (owned and managed by, Howe) was engaged in the lumbering business at Ashton, Idaho; that Howe owned a millsite at the junction of Warm and Snake Rivers near Ashton; that Howe had the funds to transport the Rightenour mill and equipment from West Yellowstone to the millsite, and to install the machinery and defray the expense of operating the mill and marketing the lumber.

It thus appears appellant owned the mill and had the experience required to operate it, and that Howe had the funds to finance the operation. In other words, on the one hand stood' Rightenour with the mill and experience, and on the other, Howe, with the millsite and funds, a perfect interlocking, interdependent, as well as most desirable, combination, in the circumstances. Rightenour with his experience and mill was essential to Howe, and Howe, with his money and millsite, was essential to Rightenour.

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Bluebook (online)
174 P.2d 940, 67 Idaho 187, 1946 Ida. LEXIS 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warm-river-lumber-co-v-rightenour-idaho-1946.