Reeves v. Better Taste Popcorn Co.

• Decision Date: 16 November 1954
• Docket Number: No. 48545,48545
• Citation: 246 Iowa 508,66 N.W.2d 853
• Parties: Fannie REEVES, Appellee, v. BETTER TASTE POPCORN COMPANY, a corporation, Appellant-Cross Appellant, and Fred Barrett, Appellant.
• Court: Iowa Supreme Court

Page 853

66 N.W.2d 853

246 Iowa 508

Fannie REEVES, Appellee, v. BETTER TASTE POPCORN COMPANY, a corporation, Appellant-Cross Appellant, and Fred Barrett, Appellant.

No. 48545.

Supreme Court of Iowa.

Nov. 16, 1954.

Rehearing Denied Jan. 14, 1955.

Ross, Johnson, Northrup, Stuart & Tinley, Council Bluffs, for cross-appellant, Better Taste Popcorn Co.

Edwin A. Getscher, Hamburg, for appellant, Fred Barrett.

Nichols & Nichols, Sidney, for appellee.

WENNERSTRUM, Justice.

Plaintiff sought recovery of an amount asserted to be due her from Better Taste Popcorn Company and Fred Barrett. She claimed to be the owner of one-half of the popcorn raised by Barrett, a tenant on her land. In a separate division of her amended and substituted petition, she asked that a certain contract entered into between Barrett and the company and which was approved by her agent be reformed to conform to the intended agreement of the parties. It is pleaded the true agreement was that Barrett was to grow 70 acres of popcorn for the company, that he was to deliver it to the company's cribs and the company was to pay plaintiff and Barrett for the popcorn under the terms of the rental agreement. It is further alleged the true agreement was evidenced by the fact the company issued its receipt to the defendant Barrett and the plaintiff for the popcorn delivered from plaintiff's land. She also sought an accounting of the proceeds of her share of the popcorn and field corn raised on her land. Judgment was sought against Barrett and the Better Taste Popcorn Company. The trial court entered judgment against the company for the plaintiff's share of the field corn taken out of her share of the popcorn furnished from her land. It also entered judgment against the company and Fred Barrett jointly for the unpaid amount of plaintiff's share of the proceeds from the popcorn furnished from her land. It was decreed that in the event the company shall pay or satisfy any part of the judgment against the defendant company and Fred Barrett that the company shall have and recover judgment against the defendant Fred Barrett for any and all sums so paid and satisfied, including interest and costs. The defendant Fred Barrett has appealed and the company has cross-appealed.

The plaintiff is the owner of a farm in Fremont county on which the defendant Fred Barrett was a tenant during 1948 under an oral lease providing the tenant was to pay as rental one-half of all grain grown on the farm. The defendant, Better Taste Popcorn Company, at that time had an office in Hamburg, Fremont County, Iowa where it was engaged in the processing of popcorn. On February 24, 1948 Barrett entered into a contract with the company wherein it was agreed that he was to grow for the company 70 acres of popcorn on plaintiff's farm and for which he was to be paid $3.50 per cwt. for all merchantable popcorn delivered. Plaintiff's approval of the agreement was noted at the conclusion of the contract in the following words: 'I, the undersigned, owner of the land covered by contract, agree to all the terms and conditions herein contained. Fannie Reeves by C. E. Good (Agent)'

On November 4, 1948 there was delivered by Barrett to the Better Taste Popcorn Company at their cribs north of Hamburg 211,230 pounds of popcorn which according to certain of the evidence contained six per cent field corn. After deducting the portion of field corn the popcorn delivered amounted to 198,556 pounds. A receipt for the popcorn delivered showed it was received from 'Fred Barrett and Reeves'. Good, as agent, was advised by a representative of the popcorn company the money proceeds from the corn raised on the Reeves land would be divided equally between the plaintiff and Barrett. It is also shown in previous years the company had paid the plaintiff for the landlord's one-half share of the popcorn raised on her land and delivered to the company.

Barrett had an interest in popcorn grown on two other properties and which was delivered to the company. During February 1949 Barrett and other growers commenced litigation against the company arising out of their contracts. Some of these cases, among which Barrett's was included, were removed to the United States District Court for the Southern District of Iowa. Apparently there was also litigation commenced in the Fremont District Court by interested growers. Edwin A. Getscher, the present attorney for Barrett, represented him and other plaintiffs in the earlier litigation and Harold L. Martin was one of the attorneys for the company. Mrs. Reeves was not one of the plaintiffs in this litigation. Following the determination of the Federal District Court cases there was an effort made to adjust the litigation and the several counsel for the litigants prepared work sheets on which were listed the amount of corn delivered by the several growers, the percentage of the amount of field corn being deducted, the net amount delivered, the cost of seed and trucking to be deducted, the interest, and total sum due.

Martin, as attorney for the company, had work sheets on which was indicated the number of the check issued to each of the parties. Getscher also had a separate work sheet at the time of the conference. However, when the present case was tried Getscher was not able to produce the work sheet he had at the conference relative to Barrett's contract. He did however produce the work sheet of all the other parties whose cases had been removed to the Federal Court.

As previously stated there was 211,230 pounds of popcorn less a portion of field corn delivered from plaintiff's land. The respective amount to the credit of the plaintiff and Barrett would be 105,615 pounds each. A storage receipt from the company for the plaintiff's share of 105,615 pounds is shown in the record.

It is quite definitely disclosed that an error was made on the work sheet of the company's attorney relative to the amount of corn delivered under the Reeves contract at the time of the settlement agreement. It is shown under the settlement computation Barrett delivered 155,615 pounds instead of 105,615 pounds as his share. This was an error of 50,000 gross pounds or 47,000 net pounds of popcorn. This error in the computation resulted in an over-payment to Barrett of $1645 and an underpayment to the plaintiff of the same amount.

The mistake was discovered the following day when, according to the testimony of Martin, the attorney for the company, he brought the error to the attention of Getscher, Barrett's attorney. Getscher apparently admitted the mistake in computation and stated he would see what he could do about it. He later reported to Martin he had seen Barrett but Barrett would not do anything relative to correcting the mistake. A check had been issued to Barrett for the erroneous amount due him. According to the testimony of one Davis, president of the company, he talked to Barrett relative to the error and Barrett admitted there had been a mistake but stated since Getscher had gotten him into it he was going to let him finish it.

On January 16, 1950 the company issued a check to the plaintiff for the amount of $1829.13 for 55,615 pounds of popcorn less 3337 pounds of field corn. The amount of this check and the check issued to Barrett represented payment for corn grown on the Reeves land and paid for all the corn grown under the Barrett-Reeves lease. Barrett's check had included the amount due for his share of the popcorn raised on the Reeves land as well as from the two other farms.

Plaintiff, as previously noted, sought the reformation of the contract to conform with the alleged agreement and further pleaded that defendant be made to make a full accounting and that she have judgment against them for $1645, for her share of the popcorn, and $104.07 for the amount due her for her share of the field corn. The company, by answer to the amended and substituted petition admitted the contract between it and the defendant Barrett but alleged the plaintiff was not a party to it and that by agreeing to the terms and conditions she did not become a party to it. The company admitted it had received the popcorn, that it had paid for all popcorn raised by Barrett on plaintiff's land and delivered by him. It denied plaintiff's right to reformation of the contract. The company, however, alleged that the field corn was not merchantable popcorn under the terms of the contract and the cost of removal exceeded the value of the field corn.

The company filed a cross-petition against Barrett and alleged that by reason of fraudulent representations on his part, and with no knowledge of its own, it paid Barrett for 155,615 pounds and plaintiff for 55,615 pounds. It was further alleged by the company that these payments were the result of a mutual mistake between it and the defendant Barrett. The company prayed for judgment against the defendant Barrett for any and all amounts that might be found due from it and in favor of the plaintiff on account of the corn delivered under the terms of their contract with Barrett.

Inasmuch as the defendant, Fred Barrett, has appealed from the judgment rendered against him and has filed a separate brief and the Better Taste Popcorn Company has filed a cross-appeal and a separate brief it seems advisable and necessary that we give...