Schneider v. Schaaf
| Citation | 1999 ND 235,603 N.W.2d 869 |
| Decision Date | 22 December 1999 |
| Docket Number | No. 990068.,990068. |
| Parties | Bennie J. SCHNEIDER, Helen M. Schneider, and Monte K. Schneider, Plaintiffs and Appellants, v. Michael J. SCHAAF, and the Estate of Michael V. Schaaf through its Personal Representative, Clara Schaaf, Defendants and Appellees. |
| Court | North Dakota Supreme Court |
Fintan L. Dooley, Bismarck, ND, for plaintiffs and appellants.
Lawrence A. Dopson, Zuger Kirmis & Smith, Bismarck, ND, for defendants and appellees.
[¶ 1] Bennie, Helen, and Monte Schneider appealed from an order denying their motion for a new trial in a tort and breach of contract action brought against Michael J. Schaaf and the estate of Michael V. Schaaf. We conclude the trial court did not abuse its discretion in denying the Schneiders' motion for a new trial and in affirming summary judgment dismissal of their tort claims against the Schaafs. We affirm.
[¶ 2] Bennie and Helen Schneider, both in their 70s at the time of trial, own a small farm in Stark County. In 1980, Michael J. Schaaf ("Michael") began farming with his father, Michael V. Schaaf ("Michael Sr."), who farmed in Morton County near Glen Ullin. In April 1982, Michael entered into a farm lease with Bennie to increase the Schaaf farming operation. Michael leased about 380 acres from Bennie from March 1, 1982 until October 15, 1984 for $18 per acre per year. Bennie leased the remainder of his crop acres to another farmer, Philip Messer. Other than grazing cattle and raising chickens on the property, Bennie and Helen essentially ceased active farming.
[¶ 3] In 1984, Michael combined Morton County land owned and operated by Michael Sr. with the acreage he had been leasing from Bennie so all of the land owned and operated by the Schaafs could be treated as one unit for purposes of signing up for federal farm programs. Bennie, as record owner, signed the Agricultural Stabilization and Conservation Service ("ASCS") "Farm Reconstitution" document allowing the reconstitution to take place. Messer also entered into an ASCS farm reconstitution and combined his own farm property with the land he leased from Bennie.
[¶ 4] The parties' lease arrangement continued through the years, but the terms were not always properly documented. Extensions to the lease were accomplished by crossing out the date on the original document and substituting a new date, and other terms and conditions were simply added to the original lease. Because each of the parties to the lease retained his own copy of the document and each added amendments to their copies, their respective versions of the lease differ. The parties agree the lease was validly extended through the 1989 crop year. Michael, however, contended a separate document signed by Helen in March 1988 covered the 1988, 1989, and 1990 crop years. The Schneiders contended Michael and his wife obtained Helen's signature on a "plain sheet" of paper and added the 1990 date to the document afterward.
[¶ 5] Before the 1989 crop year, the Schaafs separated their Morton County farming operation from the acreage Michael leased from Bennie, thereby returning Bennie's property to its prior status as a separate parcel with its own farm number. Messer, however, did not dissolve his combined units, and his leased portion of Bennie's land remained under the Messer farm number throughout 1989. During the summer of 1989, Bennie decided to place the acreage he had leased to Michael and Messer in the Conservation Reserve Program ("CRP") beginning in 1990. Because of the drought conditions prevalent during the late 1980s, CRP was considered a desirable alternative for area farmers. Land in the area was entered into CRP in 1990 at $35 per acre, as opposed to the $18 per acre Bennie had been receiving under his lease with Michael. ASCS records reflect Bennie included in his August 1989 CRP application and in his final CRP contract the land he had been leasing to Michael and Messer.
[¶ 6] Bennie and Helen had difficulty acquiring ASCS approval of their CRP application. Landlord and tenant rules and regulations developed for implementation of the CRP program sought to protect existing tenants who had leased property as an essential part of their farming operation. See 7 C.F.R. §§ 713.109 and 713.150 (1988). The rules provided when a landlord entered into a CRP contract, existing tenants were granted rights, even if their leases had expired the previous year. See generally 11 Harl, Agricultural Law § 91.03[4][e][vi] (1999). The landlord and tenant rules did not apply, however, if the operator or tenant "left the farm voluntarily without any coercion from the landlord," or if the operator or tenant "is replaced with a new operator or tenant...." ASCS CRP-1 Landlord and Tenant Provisions Handbook § 105B (1992). Bennie approached Michael and Messer during summer 1989 and presented them with documents he had drafted waiving their rights under the CRP program, but both refused to sign the documents. Bennie then designated his son, Monte Schneider, as the replacement tenant on the CRP application, but Monte had driven bus for a number of years and had not participated recently in farming. Because the ASCS questioned Monte's qualifications as an operator, the office initially refused to accept him as a valid tenant.
[¶ 7] In April 1990, Michael's attorney at the time, Joseph A. Vogel, Jr., appeared with Michael before the ASCS committee and presented the lease extension agreement signed by Helen purporting to give Michael a lease on Bennie's property through the 1990 crop year. Minutes of the meeting reflect the committee ignored the lease extension agreement and approved Monte as a qualified operator for purposes of Bennie's CRP application. Consequently, the Schneiders received a 10-year CRP contract beginning in 1990 and received $35 per acre for their cropland.
[¶ 8] In April 1993, Bennie brought this action against Michael. Bennie alleged Michael had breached the terms of their lease agreement in 1989 by tearing down some fences, by failing to maintain sufficient summerfallow, by planting sunflowers on waterways, and by his "[w]eed damage control." Bennie also sought tort and punitive damages alleging Michael "intentionally violated the parties[`] Agreement and [Bennie's] right to farm and ranch his own land at profit and did so in concert with others until at least 1990...." Bennie further alleged, to mitigate his losses from being unable to resume profitable farming operations, he enrolled his land in CRP and suffered net losses.
[¶ 9] Numerous amendments were made to the pleadings throughout the years, and Helen and Monte were added as plaintiffs and Michael Sr. was added as a defendant. The complaint grew to essentially allege the Schaafs had, through fraud, deceit, and other tortious actions, conspired with Messer and various ASCS office employees to drive the Schneider family out of the farming business. The Schneiders sought more than $150,000 in damages.
[¶ 10] The Schneiders also brought a separate action against Messer in Stark County with similar allegations asserting his participation in a conspiracy to force them out of the farming business. The Schneiders' action against Messer was dismissed on summary judgment in March 1998. The Schneiders also filed a complaint in federal court against four employees of the ASCS alleging a conspiracy to force them out of the farming business. The federal action, however, was dismissed upon the stipulation of the parties.
[¶ 11] In April 1998, the Schaafs moved for partial summary judgment dismissing the Schneiders' tort claims against them. The Schneiders had alleged counts against the Schaafs for "fraud and oppressions," "illegal acts in concert with each other," "tortious interference with business relations," and "conspiracy to interfere with civil rights" by age discrimination in violation of 42 U.S.C. § 1985(3). The trial court granted summary judgment dismissal of the tort claims, and the Schneiders' breach of contract action against the Schaafs was tried to a jury. The jury returned a special verdict finding the Schneiders were not damaged by placing their land in CRP. The jury further found, however, the Schaafs breached the terms of the farm lease and awarded the Schneiders $925 in damages. The Schneiders moved for a new trial, basically alleging they should have been allowed to present their tort claims against the Schaafs to the jury. The trial court denied the motion, and this appeal followed.
[¶ 12] We review a trial court's denial of a N.D.R.Civ.P. 59 motion for a new trial under the abuse of discretion standard. Ali by Ali v. Dakota Clinic, Ltd., 1998 ND 145, ¶ 5, 582 N.W.2d 653. A trial court abuses its discretion if it acts in an arbitrary, unreasonable, or unconscionable manner, if its decision is not the product of a rational mental process leading to a reasoned determination, or if it misinterprets or misapplies the law. Barta v. Hinds, 1998 ND 104, ¶ 5, 578 N.W.2d 553.
[¶ 13] The major issue raised in the Schneiders' motion for new trial was whether summary judgment dismissal of the Schneiders' tort claims was appropriate. Summary judgment is a procedure for the prompt and expeditious disposition of a controversy without trial if either litigant is entitled to judgment as a matter of law, if no dispute exists as to either the material facts or the inferences to be drawn from undisputed facts, or if resolving the factual disputes would not alter the results. Ohio Casualty Ins. Co. v. Horner, 1998 ND 168, ¶ 9, 583 N.W.2d 804. On appeal, we review the evidence in the light most favorable to the party opposing the summary judgment motion. Narum v. Faxx Foods, Inc., 1999 ND 45, ¶ 15, 590 N.W.2d 454.
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