Cremer v. Cremer Rodeo Land and Livestock Co.

No. 80-170 IN THE SUPREME COURT OF THE STATE OF MONTANA 1981 KATHRYN B. CREMER, a Special Administratrix of the Estate of Cornelius M. Cremer, Deceased, Plaintiff and Respondent, CREMER RODEO LAND AND LIVESTOCK CO., AND LEO J. CREMER, JR., Defendants and Appellants. Appeal from: District Court of the Sixth Judicial District, In and for the County of Sweet Grass, The Honorable Joseph Gary, Judge presiding. Counsel of Record: For Appellants: William R. Morse, Absarokee, Montana Arnold R. Berger, Billings, Montana For Respondent: Pedersen, Herndon, Harper & Munro, Billings, Montana Submitted on Briefs: January 22, 1931 Mr. J u s t i c e J o h n Conway H a r r i s o n d e l i v e r e d t h e O p i n i o n o f the Court. Cremer Rodeo Land and L i v e s t o c k Company a p p e a l s t h e j u r y v e r d i c t and j u d g m e n t o f a S w e e t G r a s s C o u n t y D i s t r i c t Court awarding c e r t a i n r e a l p r o p e r t y t o p l a i n t i f f . K a t h r y n C r e m e r , t h e widow o f C o r n e l i u s Cremer and t h e special administratrix of his estate, brought this cause originally to impose a constructive trust and compel the Cremer Rodeo Land and L i v e s t o c k Company t o d e e d c e r t a i n l a n d t o her l a t e husband's estate. I n Cremer v. Cremer Rodeo Land and L i v e s t o c k Co. (1979), Mont. , 592 P.2d 485, 36 St.Rep. 541, this Court held, inter alia, that K a t h r y n Cremer had p r e s e n t e d a s u f f i c i e n t c a s e of adverse possession t o submit t o t h e jury. The c a u s e was r e v e r s e d and remanded f o r a new t r i a l . On remand a S w e e t G r a s s C o u n t y j u r y f o u n d i n f a v o r o f Kathryn Cremer on the adverse possession claim, and the District Court awarded her the real property in issue pursuant t o t h a t verdict. The company a p p e a l s . Leo J . Cremer, Sr., and C o r n e l i u s ( C o r n y ) M. Cremer e n j o y e d c l o s e b r o t h e r l y and b u s i n e s s r e l a t i o n s h i p s . Their f a t h e r , J o h n C r e m e r , who l i v e d i n Wisconsin, died i n 1936. Their mother died five years later. After the death of their mother, another brother, Glynn Cremer, informally distributed what remained of their father 's estate. Plaintiff, Corny's s u r v i v i n g s p o u s e , c l a i m s t h a t Leo, Sr., r e c e i v e d C o r n y ' s s h a r e o f t h e e s t a t e and u s e d i t t o p u r c h a s e the land subject of this action which is described as E1/2 o f S e c . 3 4 , Township 5 N o r t h , Range 1 5 E a s t , M.P.M. The O c t o b e r 1 4 , 1 9 4 4 , d e e d f r o m t h e p r e v i o u s owner o f the land, J. Arvid C a r l s o n , named the "Cremer Rodeo, Land and L i v e s t o c k Company," a Montana c o r p o r a t i o n owned by Leo Cremer, Sr., as the grantee. The deed was executed in Merrick County, Nebraska. Plaintiff c l a i m s t h a t Leo, Sr., intended t o c o n v e y t h i s l a n d t o Corny b u t f a i l e d t o d o s o prior t o h i s death i n 1953. She a l s o c o n t e n d s t h a t Leo, Sr.'s, widow, Bertha, delivered a deed to Corny shortly a f t e r Leo, S r . ' s , d e a t h , b u t t h a t i t was s u b s e q u e n t l y l o s t i n a lawyer's o f f i c e i n Helena. Corny, Kathryn, and t h e i r f a m i l y o c c u p i e d , used and p a i d t a x e s on t h e l a n d f r o m 1947 u n t i l a p p r o x i m a t e l y 1974. A t t h a t p o i n t i t was d i s c o v e r e d t h a t Leo C r e m e r , J r . , acting on b e h a l f of t h e company, had e n t e r e d i n t o a n o i l and g a s lease of Section 34. Upon the death of Corny in 1975, plaintiff demanded a d e e d t o S e c t i o n 3 4 , a n d , when no d e e d was d e l i v e r e d , t h i s a c t i o n e n s u e d . The Cremer Rodeo Land and L i v e s t o c k Company raises t h e following i s s u e s f o r our review: 1. Did t h e c o u r t e r r i n f a i l i n g t o i n s t r u c t t h e j u r y on p e r m i s s i v e u s e i n c o n j u n c t i o n w i t h a d v e r s e p o s s e s s i o n ? 2. Did t h e c o u r t e r r i n f a i l i n g t o i n s t r u c t t h e j u r y on t h e d e f e n s e o f l a c h e s ? 3. Did t h e c o u r t e r r i n f a i l i n g t o i n s t r u c t t h e j u r y on t h e d e f e n s e o f e s t o p p e l ? 4. Was there sufficient evidence of damage to support t h e v e r d i c t o f $10,000? The company m a i n t a i n s t h a t i t was reversible error f o r t h e D i s t r i c t C o u r t t o r e f u s e i t s o f f e r e d i n s t r u c t i o n s on permissive use. W e disagree. I n s o f i n d i n g , our a n a l y s i s o f t h e r e c o r d f i n d s it w a n t i n g o f any c r e d i b l e e v i d e n c e t h a t C o r n e l i u s Cremer ever received express permission to use Section 34. This Court has long held and consistently affirmed the rule that ' [o]rdinarily I a party has the right to instructions adaptable to his theory of the case." Meinecke v. Skaggs (1949), 123 Mont. 308, 313, 213 P.2d 237, 240. Affirmed, Wollan v. Lord (1963), 142 Mont. 498, 385 P.2d 102. The Meinecke rule is not absolute, however, and this Court remains mindful of its limitations. In Gunderson v. Brewster (1970), 154 Mont. 405, 411, 466 P.2d 589, 592, Mr. Chief Justice Harrison wrote that the "right to instructions adaptable to a party's theory of the case if there be credible evidence thereon, belongs to both parties, not just to one. " Emphasis supplied. The facts of this case are not uncommon. Family relationships that proceed through generations on a friendly and amicable basis frequently become adverse, with familial tolerance being cast aside over the prospect of enriching financial position. Although Leo Cremer, Jr ., asserts that Cornelius Cremer occupied Section 34 with the permission of the company, his proof does not reveal that express permission was ever granted. Implied acquiescence is not the same as permission. Weldon v. Heron (1967), 78 N.M. 427, 432 P.2d 392; Ivons-Nispel, Inc. v. Lowe (1964), 347 Mass. 760, 200 N.E.2d 282. On the contrary, possession has been held to be adverse where possession was with forbearance of the title holder who was aware of another's possession and failed to prohibit it. Weldon v. Heron, supra, citing Myran v. Smith (1931), 117 Cal.App. 355, 4 P.2d 219. Therefore, possession may be adverse even though the owner does not interfere with e n t r y and the possessor understands t h a t there w i l l be no future interference with his possession. Hoelmer v. H e i s k e l l ( 1 9 4 9 ) , 359 Mo. 2 3 6 , 221 S.W.2d 142. In 1949 t h e M i n n e s o t a c o u r t capsulized the crucial distinction between "acquiescence" and "permission" as it e x i s t s w i t h r e g a r d t o t h e law of a d v e r s e p o s s e s s i o n : ". . . I t m u s t be a p p a r e n t , t h e r e f o r e , t h a t ' a c q u i e s c e n c e ' and ' p e r m i s s i o n ' a s u s e d i n this connection are not synonymous. ' A c q u i e s c e n c e , ' r e g a r d l e s s o f what i t m i g h t mean o t h e r w i s e , means, when u s e d i n t h i s c o n n e c t i o n , p a s s i v e c o n d u c t on t h e p a r t o f t h e owner o f t h e s e r v i e n t e s t a t e c o n s i s t i n g of f a i l u r e on h i s p a r t t o a s s e r t h i s paramount r i g h t s a g a i n s t t h e i n v a s i o n t h e r e o f by t h e a d v e r s e u s e r . ' P e r m i s s i o n ' means more t h a n mere a c q u i e s c e n c e ; i t d e n o t e s t h e g r a n t of a permission i n f a c t o r a l i c e n s e . N a p o r r a v . Weckwerth, 1 7 8 Minn. 2 0 3 , 226 N.W. 5 6 9 , 65 A . L . R . 124. See, D a r t n e l l v. B i d w e l l , 1 1 5 Me. 227, 98 A . 7 4 3 , 5 A . L . R . 1 3 2 0 ; D a v i s v . W i l k i n s o n , 1 4 0 Va. 6 7 2 , 1 2 5 S.E. 700. " I n t h e c a s e of p e r m i s s i v e u s e , t h e u s e r is u n d e r t h e owner o f t h e s e r v i e n t e s t a t e ; i n a c a s e of a c q u i e s c e n c e , i t i s a g a i n s t him. S e e , Z o l l i n g e r v . F r a n k , 1 1 0 Utah 5 1 4 , 1 7 5 P.2d 714, 170 A.L.R. 770." Dozier v. K r m p o t i c h ( 1 9 4 9 ) , 227 Minn. 5 0 3 , 5 0 7 , 35 N.W.2d 6 9 6 , 699; r e a f f i r m e d , E h l e v . P r o s s e r ( 1 9 7 2 ) , 293 Minn. 1 8 3 , 1 9 7 N.W.2d 458. In sum we have reviewed the evidence produced at trial and find no evidence of permissive use. Cornelius Cremer t r e a t e d t h e l a n d h e p o s s e s s e d a s h i s own, p a i d t a x e s on t h e p r o p e r t y , and improved t h e p r o p e r t y . I n t h e absence of any evidence supporting this portion of the company's c a s e , w e f i n d t h a t no r e v e r s i b l e e r r o r c o u l d h a v e o c c u r r e d as a result of the District Court's refusal to give a permissive use i n s t r u c t i o n . T h i s Court t a k e s n o t e of t h e f a c t t h a t t h e company opposed p l a i n t i f f ' s offered i n s t r u c t i o n covering permissive use f o r t h e reason t h a t t h e i n s t r u c t i o n d e f i n i n g a " h o s t i l e " holding covered the same subject matter. The company's reasoning is e q u a l l y a p p l i c a b l e t o i t s proposed i n s t r u c t i o n on p e r m i s s i v e u s e . The company also asserts that the District Court erred in failing to instruct the jury on t h e d e f e n s e s of laches and estoppel. We find, however, that these legal i s s u e s were p r e v i o u s l y d e c i d e d by t h i s C o u r t , and i t was n o t error for the instructions t o be refused. S e e F i s c u s v. Beartooth Electric Cooperative, Inc. (1979), Mont . , 5 9 1 P.2d 1 9 6 , 36 S t . R e p . 333. "The r u l e i s w e l l e s t a b l i s h e d and l o n g a d h e r e d t o i n t h i s s t a t e t h a t w h e r e , upon a n a p p e a l , t h e Supreme C o u r t , i n d e c i d i n g a c a s e presented s t a t e s i n its opinion a principle o r r u l e of law n e c e s s a r y t o t h e d e c i s i o n , s u c h p r o n o u n c e m e n t becomes t h e l a w o f t h e c a s e , and m u s t be a d h e r e d t o t h r o u g h o u t i t s subsequent progress, both i n t h e t r i a l court a n d upon subsequent appeal; and t h i s , a l t h o u g h upon i t s s u b s e q u e n t c o n s i d e r a t i o n t h e Supreme C o u r t may be c l e a r l y o f o p i n i o n t h a t t h e former d e c i s i o n is erroneous . . . it is a final adjudication from t h e c o n s e q u e n c e s o f w h i c h t h i s C o u r t may n o t d e p a r t , nor t h e p a r t i e s r e l i e v e themselves [citing cases]." C a r l s o n v. N o r t h e r n Pac. R. Co. ( 1 9 2 9 ) , 86 Mont. 7 8 , 8 1 , 281 P. 9 1 3 , 914. Our f i r s t o p i n i o n s t a t e d t h e l a w o f t h e c a s e on t h e s e issues. It was binding upon the trial court and i s now b i n d i n g upon u s . A n d e r s o n v. B o r d e r ( 1 9 3 0 ) , 87 Mont. 4 , 285 P. 174; A p p l e v. Edwards ( 1 9 4 9 ) , 1 2 3 Mont. 135, 211 P.2d Our r e v i e w o f t h e f i r s t Cremer o p i n i o n c o m p e l s u s t o find that the trial of this case did not change its character in s u c h a way as to free us from o u r original decision. T h i s C o u r t ' s r u l i n g t h a t " t h i s is n o t a c a s e f o r the application of" t h e e q u i t a b l e p r i n c i p l e s of laches or e s t o p p e l c o n t i n u e s t o be v a l i d , and w e a r e n o t a t l i b e r t y t o find error in the District Court's refusal t o instruct the j u r y on t h e s e t h e o r i e s . Appellant's final assignment of error alleges that t h e r e was i n s u f f i c i e n t e v i d e n c e o f t h e amount o f damages t o s u s t a i n t h e $ 1 0 , 0 0 0 v e r d i c t a g a i n s t t h e company. Our r e v i e w of t h e r e c o r d p e r s u a d e s u s t h a t t h e r e was i n d e e d s u f f i c i e n t evidence to support the jury's finding of damages in the amount o f $ 1 0 , 0 0 0 . The following evidence was adduced at trial: Leo Cremer, Jr., t e s t i f i e d t h a t he had r e c e i v e d $1.00 p e r a c r e i n d e l a y r e n t a l s f o r a p e r i o d of r o u g h l y s e v e n y e a r s . Based on t h a t t e s t i m o n y t h e j u r y d e t e r m i n e d t h a t Leo C r e m e r , J r . , a c t i n g on b e h a l f o f t h e company, r e c e i v e d $320 p e r y e a r f r o m the delay rentals involving Section 34, and, therefore, d u r i n g a seven-year p e r i o d t h e company's t o t a l r e c e i p t s from t h i s s o u r c e would b e i n t h e n e i g h b o r h o o d o f $ 2 , 3 0 0 . Bill Cremer, grandson of Kathryn Cremer and her lessee until her ouster in 1977, testified with particularity about his gross income from S e c t i o n 34 and the expenses he had incurred in the realization of that income. He testified that the property had yielded an average annual n e t income o f $3,862 i n t h e y e a r s he farmed S e c t i o n 34. By r e a s o n o f the ouster, t h e C o r n e l i u s Cremer family missed two h a r v e s t s and m a i n t a i n e d t h a t t h e damage s u s t a i n e d i n l o s t p r o f i t s was $ 7 , 7 2 4 . When t h e amount o f d e l a y r e n t a l r e c e i p t s i s a d d e d t o t h e amount of lost profits, t h e $10,000 f i g u r e is a r r i v e d at. T h i s C o u r t h a s l o n g h e l d t h a t a judgment f o r damages must be supported by substantial evidence that is not the product of mere guess or speculation. See Bjerum v. Wieber (1967), 149 Mont. 375, 427 P.2d 62. We observe that there is no uncertainty as to the existence of substantial damages. Indeed, such damages exist whenever the owner of property is deprived of the use of that property. Recovery of damages will not be denied, even if the mathematical precision of the figure is challenged, provided the evidence is sufficient to afford a reasonable basis for determining the specific amount awarded. Accord, Jacquel ine ' s Washington, Inc. v. Mercantile Stores Co. (1972), 80 Wash.2d 784, 498 P.2d 870. We have reviewed the evidence regarding the amount of damage incurred by respondent and find the evidence sufficient to support the verdict. Accordingly, we affirm. / We concur: