Minneapolis Iron Store Co. v. Branum

• Decision Date: 28 April 1917
• Citation: 162 N.W. 543,36 N.D. 355
• Parties: MINNEAPOLIS IRON STORE CO. v. BRANUM (MONARCH ELEVATOR CO., Garnishee; INTERNATIONAL HARVESTER CO. OF AMERICA, Intervener).
• Court: North Dakota Supreme Court

36 N.D. 355

162 N.W. 543

MINNEAPOLIS IRON STORE CO.

v.BRANUM (MONARCH ELEVATOR CO., Garnishee; INTERNATIONAL HARVESTER CO. OF AMERICA, Intervener).

Supreme Court of North Dakota.

March 5, 1917.

Rehearing Denied April 28, 1917.

Syllabus by the Court.

The words “landlord and tenant” denote a well understood legal relation existing between the lessor and the lessee of real estate. The relation is contractual, and is initiated by lease (or agreement therefor), at will from year to year, for a term of years, or for life. The lease or agreement expressly or impliedly grants possession of the lands to the tenant, conveys to such tenant an estate in the land at will, from year to year for a term of years, or for life, as the case may be. The tenant at all times acknowledges allegiance to the title of the landlord to such land and the tenant acts in subordination to the title of the land, in the landlord paying rent in some form for the use and privilege of occupation of such land.

A master is one who prescribes the direction, the means, and method of the work, and who controls and directs another, his servant, in the discharge of his duties, whom he may discharge at will with or without cause; a servant is one who is employed to render personal services to another, his master, and who remains in the discharge of his duties under the control and direction and subject to the order of the master in the discharge of the work and duties undertaken.

Where one, the owner of land, grants the use, occupation, and possession of such land to another for a year or a term of years for a stipulated share of the crop each year for the use of said land, and such contract contains a provision “that the title and possession of all crops or grain so raised on said land during such time of such contract shall be and remain in the landlord until division thereof,” held, that such contract creates the relation of landlord and tenant, and not the relation of master and servant; that the contract is one of tenancy, and not one of hiring.

Where one the owner of land by a written instrument grants the use, occupation, and possession of such land to another for a year or a term of years, and as rent for the use thereof is to receive a stipulated share of the crops or grain raised thereon each year, such a contract constitutes a lease, and the owner of such land is denominated the landlord, and the person to whom said land is let for use and occupation is a tenant. Such lease conveys an estate in such land to the tenant during the time of a lease, and the landlord and tenants are tenants in common of their crops and grain grown or harvested on such land each year during the time the lease continues in effect; and where such a contract or lease contains a covenant “that the title and possession of all crops and grain raised or harvested on said land during the time of such lease shall remain in the landlord or owner of such land until division thereof,” such a provision operates, and the effect thereof is, to create a lien on the tenant's share of such crops in the nature of a chattel mortgage lien to secure the advances, if any, of the landlord to the tenant.

A tenant of lands upon shares may give a chattel mortgage upon his share of the crops to be grown upon such land for such time as provided in accordance with the law, and such chattel mortgage will attach to such share of such crops when such crops came into existence, and such crops will for the purpose of the attaching of the chattel mortgage lien be deemed to be in existence, at least, as soon as such crops appear above ground and appear to the natural senses to be in existence.

The landlord and tenant are each important factors; the landlord, because he is the owner of the fee and furnishes the land upon which the work is to be done. The tenant is also a very important factor, as he does the labor which brings the crop into existence, and cultivates and cares for it until maturity and produces real value; the crops of grain produced are the result of his toil, and in such crops both the landlord and tenant have a property interest which is of equal dignity, and each should be securely protected in his property rights.

Where the tenants' share of grain, under the ordinary lease containing a provision “that the title and possession of all crops shall remain in the landlord until division,” has been delivered to an elevator without any division having been made, and storage tickets are issued therefor to the landlord for his share, and the tenants' storage tickets are issued, but are held by the elevator, and such elevator is served with a garnishment process which in point of time is subsequent to a chattel mortgage filed prior thereto against tenants' share of such crops and before division-such garnishment process and lien is junior and subject to the lien of a chattel mortgage filed against said crop prior to the service of the garnishment process and lien, and such chattel mortgage attached to the tenants' share of said crop and became a lien thereon as soon as such crop came into existence and attaches to the tenants' share of such crop at that time, and not at the time of division of the crop, and such chattel mortgage is a prior lien to the lien by attachment.

Appeal from District Court, Benson County; C. W. Buttz, Judge.

Action by the Minneapolis Iron Store Company against Wm. Branum with garnishment upon the Monarch Elevator Company, in which the International Harvester Company of America intervened. Judgment by default against defendant, motion for new trial denied, and the intervener appeals. Judgment and order reversed, and case remanded.

Lawrence & Murphy, of Fargo, for appellant. Torger Sinness and Clyde Duffy, both of Minnewaukon, for respondent.

GRACE, J.

This is an appeal by the intervener from the judgment and order denying the motion for a new trial.

Action was brought by plaintiff in the district court of Benson county, N. D., against defendant upon a promissory note. In the main action judgment by default was entered against the defendant. Ancillary to the main action, garnishment process was issued by the plaintiff and served upon the Monarch Elevator Company, as garnishee. The answer of the garnishee was that on the 16th day of October, 1915, the time of the service of the garnishee by process, the Monarch Elevator Company had in its possession and under its control 1,302 45/60 bushels of No. 1 durum wheat, which the defendant, Wm. Branum, claims to own, and further answered by showing that on the 20th day of October, 1915, the International Harvester Company of America, a corporation, served upon this garnishee a notice of claim of lien upon said grain, said notice being marked Exhibit A. The garnishee also claims a lien for its storage from the 9th day of October, 1915, and for handling charges, in case such grain should be removed. The garnishee, except as stated herein, denies any other liability to the defendant, Wm. Branum. Exhibit A was also served upon the plaintiff in the main action.

The International Harvester Company of America appears in this action as intervener, and its complaint of intervention, in effect, is as follows: That the intervener is a foreign corporation. That on the 23d day of January, 1913, defendant, Wm. Branum, executed and delivered to this intervener eight promissory notes as follows, to wit: One note for $42.28, due October 1, 1913, with interest at 10 per cent.; one note for $105.05, due October 1, 1913, with interest at 10 per cent.; one note for $160.68; due October 1, 1913, interest at 8 per cent.; one note for $287, due October 1, 1913, interest at 10 per cent.; one note for $130.05, due October 1, 1913, interest at 10 per cent.; one note for $284.84, due November 1, 1913, interest at 10 per cent.; note for $149.36, due November 1, 1913, interest at 8 per cent.; note for $228.95, due November 1, 1914, interest at 8 per cent.; and three notes dated April 3, 1912, one for $800, due November 1, 1912, interest at 7 per cent., one for $837.57, due November 1, 1913, interest at 7 per cent., and one for $837.50 due November 1, 1914, interest at 7 per cent. That on the 2d day of November, 1914, as a part of the same transaction, and for the purpose of securing payment of such promissory notes, the defendant, Wm. Branum, executed and delivered to the intervener a certain chattel mortgage for one-half of all wild and tame crops of every nature now growing, heretofore planted, sown or grown, cultivated or harvested, during the year 1915, on the following described real estate in Benson county, state of North Dakota: Northeast one-quarter (N. E. 1/4) of section 19, south one-half (S. 1/2) of the southeast one-quarter (S. E. 1/4) of section 18, and the south half (S. 1/2) of the southwest one-quarter (S. W. 1/4) of section 17, township 153, range 71. That the said chattel mortgage was duly filed for record in the office of the register of deeds of Benson county on the 7th day of November, 1914.

The complaint of the intervener further alleges, in reference to said mortgage, the further conditions usually found in such chattel mortgage as to the powers such mortgagee might exercise in case of default occurred in said mortgage, and alleges a power of sale, and also alleges default in terms and conditions of said chattel mortgage. The complaint of intervener further alleges that certain crops were grown and harvested upon said land during the year 1915; that said crops were subject to a lien and incumbrance of this chattel mortgage; and that such crops were delivered to and deposited with the garnishee, the Monarch Elevator Company, by the said defendant, Wm. Branum, or his agent, and the proceeds thereof are now in the possession of the said Monarch Elevator Company, and the said Monarch Elevator Company have been duly notified of the said intervener's mortgage and claim to said crops. And further alleges that the...