Moen v. Thomas

627 N.W.2d 146 (2001)

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Nature of the Case

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Facts

D was married to Jerry Thomas and they had two daughters, Kisten and Tessa. Jerry's father, Jay, owned a ranch. During the marriage, Jerry and D lived on the Thomas family ranch and worked the ranch with Jay. Jay died on October 19, 1995. Under the terms of Jay's will, Jerry received the surface of the ranch headquarters and some additional ranch land. Jerry also received an option to purchase or lease other ranch land. The will was admitted to probate and Jay's daughter, Donna Sneva, was appointed personal representative. Jerry exercised his option under the will to purchase the machinery and livestock from the estate but advised the other heirs at a December 1995 family meeting that he was declining the first option to purchase the land. Jerry orally stated that he intended to exercise his right to lease the property. In late 1995 Jerry tendered, and the personal representative accepted, rent for 1996 at $ 3.00 per acre. The family ultimately decided to place the property in trust. Jay's daughters, LaRae Thomas, and Carol Moen, were named co-trustees of the trust. No written agreement between Jerry and the trust was ever executed. LaRae Thomas, Carol Moen, and Donna Sneva testified that Jerry told the family he did not want to be bound to a seven-year lease, but preferred to continue renting the property on an oral year-to-year lease. They testified it was at Jerry's request that no written seven-year lease was executed, and the family agreed to an oral year-to-year lease. In late 1996 Jerry tendered rent for 1997 to the trustees. Jerry died in a ranching accident on May 12, 1997. D continued in possession of the property and discussed with the trustees her desire to rent some of the property. Ps informed D they would not lease the land to her in 1998. D tendered a check for rent for 1998 to the trustees. They returned the check. D remained in possession. Ps brought this action against Laurie, Kisten, and Tessa (Ds) to quiet title to the property, to recover possession, and to seek damages for the value of use and possession of the property after December 31, 1997. D counterclaimed, alleging the seven-year lease and option to purchase under the will was in effect and survived Jerry's death. The trial court found Jerry had a year-to-year lease which terminated at the end of 1997. The court quieted title in favor of the trust, ordered possession of the land be turned over to the trustees, and awarded damages of $19,000 for the use and occupation of the property. The court also dismissed the counterclaim. Ds appealed. Ds argues the trial court erred in allowing Ps to testify that Jerry stated to them and other family members he did not want to be bound to a seven-year lease and that, at his request, they agreed to an oral year-to-year lease. Ds asserts this testimony was hearsay and should not have been admitted.