Marsh v. Marsh: Trial Court Victory Affirms Requirement that Landlords Give Proper Notice of Lease Termination to Farmer Tenants

For the past two decades, Indiana statute has required landlords to give year-to-year tenants notice of termination at least 3 months prior to the lease expiration date. (I.C. 32-31-1-3). Failure to give timely notice means the lease will renew for another year. This 3-month notice statute is a frequent instigator for landlord-tenant disputes involving farmland, which often lack specific end dates, making calculation of the 3-month notice period difficult. We recently litigated a case that reaffirms the importance of proper notice.

In our case, a farmer-tenant entered into a written cash rent agreement with an elderly property owner. The lease between the landlord and the farmer stated that the lease ended by November 1 each year. The property owner held title to farmland by virtue of a life estate, giving her full rights to the property until her death, when the farmland would pass to her sons, the “remaindermen.” 

The landlord died on July 27 and the remaindermen became the sole owners of the farmland. Under the old common law rules, a lease between the deceased landlord and her farmer tenant would be terminated at death (but the farmer would still have the right to remove the crop). On September 22, one of the remainderman notified the tenant farmer that the lease should be considered terminated. Our client (the farmer), on the other hand, insisted that the lease had already renewed.

We attempted to resolve the issue without litigation, but to no avail. Instead, we filed suit and asked the court for a preliminary injunction. This is a tool available to parties who need quick (temporary) intervention by the court. It was important here because it was nearing the time to plant crops on the disputed farmland. We consolidated the preliminary injunction with the full trial on the merits to ensure the issue was decided once and for all.

The parties asked the court to decide whether the September 22 letter was sufficient to terminate the lease. We argued it was not, because the statute required three months advance notice. One remainderman was content to allow the tenant to continue farming, but the other argued no notice was necessary because the life estate (and the lease signed by the life estate) terminated at death. 

After considering the arguments, the court determined that the 3-month notice statute still applied, in spite of the old common law rule. This was a victory for our client, the farmer tenant, as it meant he was legally entitled to farm the ground another year. 

There are several lessons from this case for those leasing farmland.  First, a farmland lease should always be in writing. Second, a lease should always explain when the lease term ends. And third, do not ignore the statutory notice requirements if you are a landlord and want to terminate the lease.  If in doubt, consult an attorney.