Opinion ID: 1814261
Heading Depth: 1
Heading Rank: 18

Heading: Determination of Fair Rental Value

Text: The trial court found that the fair rental value of the property was $18,207 for 1993, with a deduction of $5,853 for tax expenses, resulting in a net rent of $12,354. Although the stipulation of the parties included rents and profits up to April 1993, the figures presented by the appellees and accepted by the trial court include rents and profits for all of 1993. The parties do not dispute this, and both sides argue for an amount of rents and profits based on 1993 as a whole. For 1994, the trial court determined that the fair rental value was $20,768, with a tax deduction of $5,951, resulting in a net rent of $14,817. This accounts for a finding of $60 per acre for cropland, $30 per acre for hayland, and $20 per acre for pastureland. This net rent figure also allows for a fair rental value for the building site of $100 per month. The expert testimony of both parties supported the figures of $60, $30, and $20 per acre for cropland, hayland, and pastureland, respectively. However, the estate requests that all parcels of land, other than the pastureland where actual rents are known, be valued at a fair rental value of $60 per acre. The estate contends this is the amount the parties agreed to in a 1995 agreement in which the estate rented the property to the appellees. Thus, the estate argues that because the parties agreed to this amount in 1995, it must reflect the fair rental value of the property for 1993 and 1994. However, the expert testimony placed different values on the land according to different classifications. The estate further argues that the $60 per acre rental figure for all parcels of land is supported by the testimony of its expert witness. However, this is clearly wrong. The estate's expert clearly testified on cross-examination that the cropland, hayland, and pastureland were worth $60, $30, and $20 per acre, respectively. The estate further requests that $175 per month be applied as the fair rental value of the building site, rather than the $100 per month applied by the trial court. In an appeal of an equitable action, where credible evidence is in conflict on a material issue of fact, the appellate court considers and may give weight to the fact that the trial judge heard and observed the witnesses and accepted one version of the facts rather than another. Midlands Rental & Mach. v. Christensen Ltd., 252 Neb. 806, 566 N.W.2d 115 (1997); Hanigan v. Trumble, 252 Neb. 376, 562 N.W.2d 526 (1997); Siffring Farms, Inc. v. Juranek, 252 Neb. 150, 561 N.W.2d 203 (1997). Accordingly, in our de novo review, we give weight to the fact the trial judge heard and saw the expert witnesses in the instant case and conclude that the trial judge was correct in determining the fair rental value of the various properties.