Broten v. Broten

James Broten, individually, and as personal representative of the estate of Olaf Broten, appealed a second amended judgment denying him restitution for payments he made to his parents during their lifetimes. In 1979, Broten and his parents Helen and Olaf Broten executed a contract for deed to purchase approximately 480 acres of farmland. Broten agreed to purchase the farmland for $200,000 plus six percent annual interest through 2006. After his father's death in 1998, Broten, as personal representative of the estate, conveyed the farmland to himself with his mother receiving a life estate. After Broten's mother died in 2010, his sisters, as personal co-representatives of the estate, sued Broten alleging he breached his fiduciary duties by transferring the farmland to himself after his father's death. At trial in 2013, Broten testified that under an oral modification to the contract, he agreed to pay his parents' living expenses for the rest of their lives in addition to the $12,000 annual interest payment in exchange for the farmland. After trial the district court found the parties mutually agreed to abandon the terms of the written contract for deed. The court also found Broten did not prove the oral modification to the contract and breached his fiduciary duties to his father's estate by transferring the farmland to himself. The Supreme Court affirmed the judgment finding a breach of fiduciary duty and award of damages, but remanded to the district court to decide whether Broten was entitled to compensation for improvements he made to the farmland or for payments he made to his parents or on their behalf. The district court entered a second amended judgment reducing the amount Broten owed by $20,000 for improvements he made to the property. The court did not award Broten restitution for the payments he made to his parents or on their behalf. The court concluded Broten benefited from the relationship with his parents and failed to prove his parents were unjustly enriched by the payments he made to them or on their behalf. After review, the Supreme Court affirmed the judgment finding Broten breached his fiduciary duty, and to pay plaintiffs $103,054 as compensation for his use of the land from June 16, 2010, through December 31, 2013, including interest. The Court also affirmed the judgment holding the reduction of the land value by $20,000 for improvements to the land. The Court reversed the judgment holding Broten was not entitled to any restitution, and remanded for entry of judgment requiring Broten to pay to plaintiffs $1,197,000 for the value of the land as of December 31, 2013, reduced by $191,789.40 for restitution and $20,000 for improvements. View "Broten v. Broten" on Justia Law