By HOLLY GASKILL
The Wells County Commissioners have settled the April 2022 lawsuit filed against the county by Gaiser Farms, Inc. regarding the sale of the county farm. Wells County has paid $60,000 in its settlement.
Judge Kenton Kiracofe issued a summary judgment in favor of Gaiser Farms on Feb. 13. The settlement was determined during a mediation session on March 14, and the commissioners approved the amount during their meeting Monday.
The lawsuit claimed the county had breached its farm lease agreement with Gaiser Farms of rural Bluffton. This alleged breach was regarding the county’s timely notification of their intention to sell land rented by Gaiser Farms. Provisions in the lease stated the tenant would receive written notice on or before Oct. 1 about the termination of the agreement for the following year. Written notice was not sent until Oct. 6.
The parcels owned by the county were then sold to Kurt and Lance Fiechter and Mounsey Family Farms as high bidders for the land at a sale on Dec. 6, 2021. They were also named in the suit.
The county argued that adequate notice had been given, referencing a public hearing about the potential sale on May 14, 2021. The matter had been published in The News-Banner, and Caleb Gaiser of Gaiser Farms had reportedly attended. The county also claimed that the tenant had violated the lease that same year due to a late payment.
On April 2, 2022, commissioners Mike Vanover, Jeff Stringer and Blake Gerber published a Letter to the Editor in The News-Banner, affirming many of these claims. They wrote they were “committed to protecting the county and its citizens from aggressive demands for money and/or needless lawsuits … The county will stand up for what is right and not take monetary demands or threats of litigation lightly. The county commissioners will continue to inform the public as the matter progresses.”
In his summary judgment, Kiracofe stated that though Gaiser Farms “may have had knowledge of the defendant’s intention to sell the property did not automatically give rise to the (county’s) terminating of the Least Agreement.” He additionally noted that the county did not vote to terminate the lease until Dec. 6, two months after notice had been given.
Regarding the claims of late payment, Kiracofe stated there was a precedent in the relationship between parties. While a 2021 payment was late, there were also late payments in 2016, 2017, 2018, 2019 and 2020. The county had neither addressed this violation nor charged interest.
Kiracofe referenced Indiana law in saying that when parties exhibit a history of a “very active, willing, and long-lived collaboration in the non-payment of rent”, the landlord is required to give notice before terminating a lease agreement.
“The terms of the Lease Agreement are unambiguous and conclusive of the parties’ intention,” the summary reads. “There is no genuine issue of material fact and the Court finds that Wells County is in breach of the Lease Agreement by not providing notice.”
In the 2022 lawsuit filing, Gaiser Farms asked for damages, including lost profits and income.
Of the $60,000 settlement, $45,000 will be reimbursed by the county attorney at the time, Andrews and Crell Attorneys.
holly@news-banner.com
