Prescott v. Smits

505 A.2d 1211 (1985)

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Nature of the Case

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Facts

In early 1982, Ds approached Prescott (Ps)and inquired about leasing Ps' farm. Ds were experienced dairy farmers. D personally inspected and examined the property during the course of the two-month long negotiations. Ds agreed to lease the farm for three years beginning on May 1, 1982. An annual rental of $14,400.00 was agreed upon, the rent to be paid in equal monthly installments. The lease was not reduced to writing. Ds moved onto the farm in March of 1982, with Ps' approval. During the summer months, they made rental payments totaling $2,600.00. Ps drew up a lease, but Ds refused to sign the instrument. Ds experienced problems from the outset of their tenancy. In April and May, eight of their cows died; six other cows suffered from various forms of mastitis. Ds complained that their water supply was inadequate and Ps installed a new pump at their own expense. Ds vacated the farm in October of 1982, without giving prior notice. In November, Ds harvested corn which they had planted on the farm and removed it from the property. In March of 1983, the farmhouse was released for a monthly rental of $250.00. In May, the farmland was released for an annual rental of $4,500.00. Ps sued Ds for nonpayment of rent. Ds counterclaimed for damages suffered because of Ps' breach of their agreement to furnish defendants a farm in condition reasonably fit for the operation of a dairy farm. The court ruled for Ps because it held the at will tenancy transmuted to a year-to-year lease and Ds owned the balance due for the year. Ds appealed.