Jerke v. State Dept. of Lands, 14366
| Citation | 36 St.Rep. 389, 597 P.2d 49, 182 Mont. 294 |
| Case Date | March 02, 1979 |
| Court | United States State Supreme Court of Montana |
Page 49
v.
The STATE DEPARTMENT OF LANDS et al., Defendants and Respondents.
Decided March 2, 1979.
Page 50
Scribner, Huss & Mulroney, Helena, Lawrence D. Huss, argued, Helena, for plaintiff and appellant.
[182 Mont. 295] John North, argued, Helena, Charles W. Jardine, argued, Miles City, for defendants and respondents.
Carl M. Davis, Dillon, amicus curiae, for defendants and respondents.
HASWELL, Chief Justice.
Plaintiff appeals from an adverse judgment in an action to cancel a lease following a nonjury trial in the District Court of Lewis and Clark County.
The Prairie County State Grazing District was created pursuant to the Grass Conservation Act, section 46-2301 et seq. R.C.M.1947, now section 76-16-101 et seq. MCA. In conserving Montana's rangeland resources, the Grazing District procures available land and allocates it to its members for use in their individual farming or ranching businesses. It does not use the land itself.
Under a 1965 lease, the Grazing District was the lessee of a tract of state land lying within Prairie County. This land was allocated to David Hess and two other individuals who used it for their personal ranching enterprises.
In early 1975 with the termination of the lease, the Department of State Lands, acting on behalf of the Montana Board of Land Commissioners, requested competitive bids for the lease of the tract. Appellant submitted the only bid. It was based on a 26% Crop share with a guaranteed minimum of $2,000 per year. After appellant's bid was opened, an administrative hearing was held where the Grazing District challenged it as unreasonable. The Department determined the bid to be bona fide and the highest bid received.
The Grazing District, as the existing lessee, was holder of a preference right under section 81-405(1), R.C.M.1947, now section 77-6-205(1) MCA which provides:
"If other applications have been received, the holder of the lease has the preference right to lease the land covered by his former lease by meeting the highest bid made by any other applicant."
[182 Mont. 296] The right was exercised and the new lease was awarded to the Grazing District. In the summer of 1975 the land was subleased to David Hess.
Appellant sought to have the lease and sublease set aside and to have the District Court order the Department of State Lands to award the lease to him. His basic argument, both at trial and on appeal, is that the preference right unconstitutionally prevents the State from...
To continue reading
Request your trial
-
Advocates for Sch. Tr. Lands v. State
...school trust lands if the lease would abrogate the concept of full market value. MonTRUST I, ¶ 36 (citing Jerke v. State Dep't of Lands, 182 Mont. 294, 296, 597 P.2d 49, 51 (1979) (citing Rider v. Cooney, 94 Mont. 295, 309-10, 23 P.2d 261, 264 (1933))). The Legislature has the authority to ......
-
Advocates for Sch. Trust Lands v. State
...trust lands if the lease would abrogate the concept of full market value. MonTRUST I , ¶ 36 (citing Jerke v. State Dep't of Lands , 182 Mont. 294, 296, 597 P.2d 49, 51 (1979) (citing Rider v. Cooney , 94 Mont. 295, 309-10, 23 P.2d 261, 264 (1933) )). The Legislature has the authority to det......
-
School Trust v. State ex rel. Bd. Of Com'rs, 98-535.
...with the Enabling Act. ¶ 36 We conclude that § 77-1-208, MCA, on its face does not violate the trust. In Jerke v. State Dept. of Lands (1979), 182 Mont. 294, 296, 597 P.2d 49, 51 (citation omitted), the Court concluded The legislature is thus given authority to determine the method by which......
-
Department of State Lands v. Pettibone, 83-281
...Vista v. Babbitt (1981), 129 Ariz. 524, 633 P.2d 333; State v. University of Alaska (Ak.1981), 624 P.2d 807. In Jerke v. State Dept. of Lands (1979), 182 Mont. 294, 597 P.2d 49, we addressed a situation analogous to the one at bar. The general question presented was how far the State could ......