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Farmers Mutual Manufacturing & Ginning Co. v. Thompson

Supreme Court of Arizona

November 16, 1942

FARMERS MUTUAL MANUFACTURING AND GINNING COMPANY, a Corporation, Appellant,
v.
W. A. THOMPSON, Appellee

APPEAL from a judgment of the Superior Court of the County of Pinal. C. C. Faires, Judge, Judgment affirmed.

Messrs. Beer & Christy, for Appellant.

Mr. Tom Fulbright, for Appellee.

OPINION

Page 414

LOCKWOOD, C.J.

W. A. Thompson, plaintiff, brought an action in conversion against Farmers Mutual [60 Ariz. 38] Manufacturing and Ginning Company, defendant, and recovered judgment therein, whereupon this appeal was taken.

The facts material to a determination of the case, with one exception, are not in serious dispute, and may be stated as follows: In December, 1939, plaintiff's wife had certain state lands in Pinal county leased from the state land department. The lease was about to expire, and she assigned to one Edwards the remaining term of the lease, with the consent of the state land department. The written assignment recited a consideration of "Ten Dollars and other valuable considerations." Edwards thereupon applied to the state and received a lease to the land from December 13, 1939, to December 12, 1944. It was orally agreed between Edwards and the Thompsons that as part of the consideration for the assignment of lease above set forth plaintiff was to receive all rents derived by Edwards from the leasing of said premises during the crop year of 1940-41. On March 18, 1940, Edwards leased the premises to one J. A. Wellman, the material parts of which lease read as follows:

"... First party reserves right to reasonable use of pumping equipment for purpose only of watering said reserved 20 acres at first party's expense. The said second party agrees with the first party that he will diligently plant and cultivate, in a good farm-manlike manner, harvest and deliver to the gin not less than 80 acres of long staple cotton. This lease shall be void if the said second party does not secure approval of a crop finance loan on or before March 25, 1940.

"TO HAVE AND TO HOLD the same to the said party of the second part, from the 1st day of February, 1940, to the 1st day of February, 1941.

"And said party of the second part, in consideration of the leasing the premises as above set forth, covenants and agrees with the part -- of the first part to pay the said party of the first part, as rent for the [60 Ariz. 39] same, the sum of 1/5 of all seed cotton delivered at gin and 1/4 of all feed grown delivered as harvested at the premises. All of said crop rents to be delivered to W. A. Thompson of Coolidge, Arizona, said delivery, it is mutually agreed, is a part of the consideration of this lease.

"... that upon the non-payment of the whole or any portion of the said rent at the time when the same is above promised to be paid, the said party of the first part may, at his election, either restrain for said rent due, or declare this lease at an end, and recover possession as if the same was held by forcible detainer;..."

In pursuance of one of the conditions of the lease, Wellman attempted to make arrangements with defendant for financing the cotton crop referred to in the lease. Defendant's manager, having seen a copy of the lease, went to Edwards and required of him, as condition to making the loan asked for by Wellman, that Edwards should subordinate any interest which he claimed to the crop to be

Page 415

grown, to a chattel mortgage thereon given by Wellman to defendant for the purpose of securing the loan. This Edwards ...


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