Justia North Dakota Supreme Court Opinion Summaries

The parties in this case have two minor children. Following their divorce in 2018, the mother was awarded primary residential responsibility based on agreement, and the father received limited parenting time. In February 2021, the father sought primary residential responsibility, leading to the appointment of a parenting investigator and subsequent hearings. Ultimately, the district court awarded equal residential responsibility, but after appellate review, the judgment was reversed due to insufficient findings. In February 2024, the father again moved for increased parenting time, which led to another evidentiary hearing. During this hearing, the court conducted an in chambers interview with one child over the mother’s objection and considered evidence from a prior parenting investigator’s report.The District Court of McLean County, South Central Judicial District, initially denied the father’s request for primary residential responsibility but granted an evidentiary hearing to consider modifying parenting time. After the hearing, the court found sufficient grounds for modification based on the mother’s interference with the parenting plan, the children’s desire to spend more time with their father, and uncertain exchange times. The court ordered increased parenting time for the father. The mother objected to the in chambers interview and the use of the parenting investigator’s report, arguing procedural errors and lack of proper notice.The Supreme Court of North Dakota reviewed the case. It affirmed the district court’s finding that a material change in circumstances justified modifying parenting time. However, it reversed the district court’s actions in conducting an in chambers interview without both parents’ consent and considering the parenting investigator’s report without notice and opportunity for cross-examination. The Supreme Court held that both errors were not harmless and remanded for further proceedings, instructing the district court to conduct a new best interests analysis without considering the improperly admitted evidence, or to hold a supplemental evidentiary hearing if requested. View "Goetz v. Goetz" on Justia Law

The dispute arose after a tenant leased a residential property from a management company in West Fargo, North Dakota. After a disagreement involving a pet-related charge, the tenant failed to pay October rent. The management company served a notice to vacate and subsequently obtained a judgment of eviction, which included an early termination fee as specified in the lease. The tenant vacated the property before the end of the lease term and returned the keys. Later, the landlord sent an itemized list of damages and sought recovery for property repairs, as well as rent for the months following the tenant’s departure, despite having received the early termination fee.Upon commencement of a small claims action by the landlord for damages, the tenant removed the case to the District Court of Cass County, East Central Judicial District. The tenant sought summary judgment, arguing that the landlord could not recover both an early termination fee and additional rent, and also contended that the landlord’s failure to timely provide the itemized list of damages should bar recovery. The district court denied summary judgment, held a bench trial, and ultimately ruled that the landlord could not recover both the early termination fee and post-eviction rent. However, the court allowed recovery for property damage, finding that the landlord had reasonable justification to withhold the security deposit despite the untimely itemization, since damages exceeded the deposit. The court awarded damages for repairs as well as attorney’s fees, as the tenant had removed the case from small claims court.The Supreme Court of North Dakota reviewed the case. It affirmed the district court’s rulings, holding that the landlord’s failure to timely provide an itemized statement of damages did not bar recovery, as the tenant was not prejudiced. The court also concluded that the tenant’s arguments regarding unconscionability and attorney’s fees were not properly preserved for appeal. The case was remanded solely for determination of additional attorney’s fees on appeal. View "Meridian Property Management v. Cordie" on Justia Law

The parties, following their divorce, entered into a stipulated judgment that set out how they would share expenses for their three children, including extracurricular activities, school events, and medical costs. The judgment required equal sharing for listed traditional activities, certain forms of communication about new or related expenses, and equal division of out-of-pocket medical expenses. Communication provisions specified that if a question was posed through their shared application and no response was received within five days, consent was presumed.After the judgment, the plaintiff moved the District Court of Stutsman County to hold the defendant in contempt for failing to pay his share of these expenses. The court found the defendant in contempt, rejecting his arguments about the form of communication required and about whether certain expenses were his responsibility. The court held line-by-line hearings on the expenses, found the plaintiff had met her burden for most items, and awarded remedial sanctions and attorney’s fees. This included some expenses that had not been previously submitted to the defendant, some for which there was no clear obligation under the judgment, and mileage for transporting children to therapy. The defendant appealed, also arguing that the plaintiff’s motion was frivolous and that he was entitled to his own attorney’s fees.The Supreme Court of the State of North Dakota held that the District Court did not abuse its discretion in finding the defendant in contempt. However, it reversed the award of remedial sanctions and attorney’s fees in part, finding that some sanctions were for expenses already paid, not required under the judgment, or not properly supported by findings. It remanded for further proceedings to recalculate the proper amount of sanctions and attorney’s fees. The District Court’s order was thus affirmed in part, reversed in part, and remanded. View "Bedgar v. Wilson" on Justia Law

The case concerns a failed sale of a bar and restaurant in Bismarck, North Dakota. Neil Galpin, as assignee of Galpin Entertainment, sought to recover a $100,000 earnest money deposit after Cantina Holdings, LLC and Clay Butte Holdings, LLC (the buyers) did not complete the purchase. The parties had executed a confidential offer letter, which required the deposit and stated it would become non-refundable after the buyer’s due diligence period expired, unless the buyer notified the seller of its intent not to proceed before that date. Later, the parties signed a standard form purchase agreement that both incorporated the confidential letter and included a conflicting, pre-printed provision stating that if financing failed after a certain date, the earnest money would be returned to the buyer. The transaction never closed, and Galpin Entertainment ultimately sold the property to someone else.The District Court of Burleigh County, South Central Judicial District, heard the case in a bench trial. The court concluded that the specially drafted provision in the confidential letter, rather than the standard form language in the purchase agreement, controlled the disposition of the earnest money. It found that the buyers did not properly exercise their right to terminate before the due diligence deadline and that Galpin did not breach the contract by failing to negotiate the contract for deed in good faith. Judgment was entered in favor of Neil Galpin for the earnest money, and the buyers’ counterclaims were denied.On appeal, the Supreme Court of the State of North Dakota affirmed the district court’s judgment. The Supreme Court held that, when conflicting contract provisions exist, specially drafted terms control over standard form language, especially where the parties who caused the uncertainty seek to benefit from it. The court also found no clear error in the district court’s finding that Galpin negotiated in good faith. View "Galpin v. Cantina Holdings" on Justia Law

The case involves a dispute over the primary residential responsibility and parenting time for a child born in 2024 to two unmarried parents. The father sought an interim order for custody, and after several reschedulings, a hearing was held where only the father's counsel and the mother's attorney appeared; the mother herself was absent. Subsequently, the court granted the father primary residential responsibility and gave the mother supervised parenting time. The mother’s attorney later withdrew, and the court set further hearings, but it was unclear if the mother received proper notice of these dates.When the mother failed to appear at the scheduled pretrial conference, the District Court of Stark County, Southwest Judicial District, sanctioned her by barring her from presenting any evidence at trial, except regarding her income for child support purposes. At trial, she appeared without counsel and was only allowed to testify about her income, while the father and his mother provided testimony on other issues. The district court then entered judgment awarding primary residential responsibility to the father, continuing supervised parenting time for the mother, and ordering her to pay child support. The mother appealed, arguing she was denied due process due to improper service and that the sanction was excessive.The Supreme Court of North Dakota reviewed the case. It declined to address the mother’s due process arguments, finding her appellate briefs did not comply with procedural rules. However, it held that the district court abused its discretion by imposing an evidentiary sanction that prevented the court from considering evidence relevant to the child’s best interests. The Supreme Court affirmed the monetary sanction for attorney’s fees but reversed the evidentiary sanction, remanding for a new trial where sanctions, if imposed, must not interfere with the court’s ability to evaluate the child’s best interests. View "Kostelecky v. Erickson" on Justia Law

A long-time authorized equipment dealer, operating under two dealer sales agreements with a manufacturer, received notice in September 2024 that its agreements would be terminated in ninety days. The manufacturer cited alleged false and misleading statements, including altered business records, as grounds for termination under the agreements. The dealer responded by challenging the termination in court, invoking North Dakota statutes that regulate equipment dealer terminations and asserting that the filing of its action triggered an automatic stay against termination during litigation.The District Court of Morton County was asked by the manufacturer to dissolve or modify the automatic stay, arguing that the statutory stay only applied to certain products and not to the bulk of equipment covered by the agreements. The manufacturer presented evidence and legislative history to support its position. However, the district court denied the motion, holding that the statute mandates a procedural automatic stay upon the filing of the dealer’s action, and that the court lacked authority to dissolve or modify the stay at this stage. The court deferred any determination of which products were covered by which statute to later proceedings. The manufacturer then sought appellate review, but the district court did not rule on its request for certification under N.D.R.Civ.P. 54(b) due to the pending appeal.The Supreme Court of the State of North Dakota reviewed whether it had jurisdiction over the appeal. The court concluded that, although the automatic stay functioned as a statutory temporary injunction making the order appealable under N.D.C.C. § 28-27-02(3), the absence of Rule 54(b) certification rendered the order not appealable at this stage. The Supreme Court dismissed the appeal and, finding no extraordinary circumstances or public interest, declined to exercise its supervisory jurisdiction. View "Bobcat of Mandan v. Doosan Bobcat North America" on Justia Law

A man filed a negligence lawsuit against two relatives who operated a farm, after he suffered serious injuries from carbon monoxide exposure while repairing a furnace in their shop. The plaintiff alleged that the defendants used a portable propane heater, not designed for indoor use, to warm the shop, which created a dangerous buildup of carbon monoxide. The plaintiff claimed he was unaware of the danger and was injured as a result. Testimony at trial established that the plaintiff had a longstanding relationship with the defendants, performed occasional repairs for them, and that others present in the shop around the same time did not experience symptoms of carbon monoxide poisoning. Both sides presented expert witnesses on the issue of causation.The District Court of Barnes County, Southeast Judicial District, held a jury trial. The jury returned a verdict finding the defendants were not negligent, and the court entered judgment dismissing the plaintiff’s claim. The court also awarded the defendants costs and disbursements, including expert witness fees, ultimately reducing the amount requested after considering the reasonableness of the fees. The plaintiff did not file any post-trial motions.On appeal, the Supreme Court of North Dakota held that the plaintiff could not raise for the first time on appeal the argument that the jury’s verdict was against the greater weight of the evidence, as he had not preserved this issue by a post-trial motion. The court also found no reversible error in the district court’s refusal to give plaintiff’s requested jury instructions regarding duty of care and regulatory violations, concluding the instructions given were adequate and appropriate. Lastly, the court determined that the district court did not abuse its discretion in awarding expert witness fees. The North Dakota Supreme Court affirmed the judgment. View "Alber v. Rodin" on Justia Law

Danielle Nygaard purchased a home in Fargo, North Dakota, with United Savings Credit Union as the mortgagee. Scott Volker recorded a quitclaim deed purporting to transfer the property from Nygaard to himself and initiated eviction proceedings against Nygaard. Volker claimed this action was based on a loan agreement in which he personally guaranteed a loan from Joseph Svobodny to Nygaard, and that Nygaard failed to repay the loan. Nygaard denied executing the quitclaim deed or the loan agreement, asserting the $40,000 was a gift. She brought a quiet title action against Volker, later amending her complaint to include Svobodny and the Credit Union, and alleged fraud, slander of title, and abuse of process.The District Court of Cass County, East Central Judicial District, presided by Judge Reid A. Brady, managed the case. Nygaard sought discovery of Volker’s electronic devices and accounts, suspecting document alteration. Volker resisted discovery and his attorney withdrew, citing ethical concerns after Volker instructed him not to disclose material subject to the court order. The court issued orders compelling discovery and warned of sanctions for noncompliance. Volker repeatedly failed to comply, leading the court to strike his and Svobodny’s pleadings. Nygaard moved for default judgment and was awarded title to the property, damages, and substantial attorney’s fees. The court also imposed Rule 11 sanctions on Volker for presenting pleadings lacking evidentiary support.On appeal to the Supreme Court of the State of North Dakota, Volker challenged the findings of forgery, the sanctions, and the default judgment. The Supreme Court held that Volker failed to timely respond or preserve his arguments regarding sanctions and forgery. Importantly, Volker did not move to vacate the default judgment under Rule 60(b), limiting appellate review to irregularities on the face of the judgment, none of which were found. The Supreme Court affirmed the judgment and all associated orders. View "Nygaard v. Volker" on Justia Law

A 76-year-old man petitioned to adopt a 40-year-old woman whom he had known for six years. The parties participated in evidentiary hearings, and a court-appointed investigator prepared a report. Testimony revealed inconsistencies regarding the stated purpose of the adoption, particularly concerning the petitioner’s claim that the adoption would allow the adoptee to care for him, despite evidence that the adoptee’s health issues prevented her from working. The court also noted that the adoptee was unaware adoption would sever her legal relationship with her mother, with whom she lived and received financial support. Additionally, concerns arose regarding the petitioner’s mild cognitive impairment and unaccounted trust distributions.The District Court of Cass County, East Central Judicial District, reviewed the petition and evidence. The court found that the adoption was not in the best interests of the adoptee, considering the potential negative impact on her relationship with her biological mother, possible contentious inheritance issues, and inconsistencies in the petitioner’s stated goals. The court also considered the medical evidence and concluded the doctor’s report did not sufficiently address the petitioner’s cognitive capacity or awareness of the adoption’s implications. Based on these findings, the court denied the adoption petition.On appeal, the Supreme Court of the State of North Dakota applied the clearly erroneous standard to the district court’s factual findings and reviewed the denial of the adoption decree for abuse of discretion. The Supreme Court held that the district court’s findings were not clearly erroneous, nor did the court abuse its discretion or misapply the law. The Supreme Court affirmed the district court’s order dismissing the adoption petition. View "In re Adoption of K.J.K." on Justia Law

David Christianson was employed during the 2023-24 school year as a teacher at Grand Forks Red River High School, holding both a standard teaching contract and two additional “director contracts” for Pep Band Director and Music-Instrumental Head Director. After two pranks occurred under his supervision at graduation events, Christianson was reassigned to a different school and his director contracts were not renewed. He pursued a grievance with the School District, culminating in a formal hearing and a School Board denial of his appeal. The School Board subsequently issued a written decision two days after the contractual deadline, prompting Christianson to formally object.The case was reviewed by the District Court of Grand Forks County, Northeast Central Judicial District. Both parties moved for summary judgment. The School District argued Christianson was required to arbitrate his grievance before pursuing litigation, while Christianson claimed the School District failed to follow mandatory nonrenewal procedures. The district court found that the School District had waived its right to enforce arbitration by not complying with contractual notice requirements and determined that Christianson’s director contracts were extracurricular, not curricular. Therefore, statutory nonrenewal procedures did not apply. Summary judgment was granted in favor of the School District.Upon appeal, the Supreme Court of the State of North Dakota reviewed the case de novo. The Court affirmed the district court’s judgment, holding that the School District’s failure to timely provide written notice constituted a waiver of its right to require arbitration. The Court further held that Christianson’s director contracts were extracurricular and not subject to teacher contract nonrenewal protections under North Dakota law. The judgment of the district court was affirmed. View "Christianson v. Grand Forks Public School District" on Justia Law