Justia North Dakota Supreme Court Opinion Summaries

Defendants William Grommesh and Jon Pansch appealed the grant of summary judgment in favor of American Federal Bank in its action to enforce four guaranties. The defendants argued the district court erred in granting summary judgment because the court misinterpreted the guaranties, and genuine issues of material fact exist regarding the defendants’ defenses. Finding no reversible error, the North Dakota Supreme Court affirmed. View "American Federal Bank v. Grommesh, et al." on Justia Law

S.J.H. appealed a district court order granting the State’s motion for sanctions against him for failure to obey a court order for genetic testing and from a default judgment ordering him to pay child support. The North Dakota Child Support Division (“State”) commenced a civil action against S.J.H. to establish paternity for a minor child. S.J.H. retained counsel. In S.J.H.’s answer and counterclaim, he included a request for genetic testing to be conducted. At a hearing nearly four months later, he withdrew his request for testing. The district court then entered an order requiring S.J.H. to submit to genetic testing. After two months went by with no testing having been conducted, the district court requested a status update from the parties. S.J.H.’s counsel responded that S.J.H. had not been tested, and counsel moved to withdraw, stating that his attorney-client relationship with S.J.H. had “deteriorated to a degree that further representation is not possible” after their discussions about the proceedings “resulted in an impasse.” The State subsequently scheduled an appointment for genetic testing for March 25, 2021, in S.J.H.’s state of residence. On March 10, the State sent a letter to S.J.H.’s counsel with the information regarding the upcoming appointment. This letter was sent to counsel only and not directly to S.J.H. On March 31, the court granted S.J.H.’s counsel’s motion to withdraw. On April 30, the district court again asked the State and S.J.H. for a status update. Because S.J.H. failed to attend his March 25 appointment, the State requested sanctions against him, including striking his answer and rendering default judgment against him. S.J.H. stated he was unaware of the March 25 appointment, and learned of such appointment only upon being served the State’s motion for default judgment two months later. Nevertheless, the court granted the State's motion for sanctions. S.J.H. argued on appeal that the district court abused its discretion in granting sanctions against him because his former attorney failed to notify him of the scheduled genetic testing appointment, thus he did not disobey the court order to submit to genetic testing. Finding that the district court did not abuse its discretion, the North Dakota Supreme Court affirmed the sanctions order. View "North Dakota v. S.J.H., et al." on Justia Law

Leland Swanson appealed a judgment dismissing his breach of contract and professional negligence claims against Mark Larson and Mark Larson, CPA, PLLC. In 2017, Swanson hired Larson to provide a forensic accounting of various entities owned by Swanson. Larson provided the accounting services in anticipation of litigation against Swanson’s former business partner. During discovery in subsequent litigation against the former business partner, Larson was identified as an expert witness in a July 2018 response to interrogatories. Larson ended his engagement in January 2019 by providing written notice to Swanson’s attorney. After Larson’s termination, Swanson retained another expert to testify in the pending litigation. In January 2020, Swanson sued Larson for breach of contract and professional negligence, alleging Larson breached their agreement and committed professional negligence by terminating his services and refusing to testify as an expert witness in the litigation against the former business partner. Larson moved for summary judgment, arguing the agreement did not require him to testify at trial. He also argued the agreement was terminable at will by either party, and he did not breach the agreement by terminating his services. On appeal to the North Dakota Supreme Court, Swanson argued the district court prematurely and improperly granted summary judgment in Larson’s favor. Finding no reversible error, the Supreme Court affirmed the trial court's judgment. View "Swanson v. Larson" on Justia Law

DCI Credit Services, Inc. (“DCI”) appealed a district court’s order denying its request to vacate the order granting summary judgment and awarding costs and attorney’s fees to Nicholas Plemper. DCI also appealed the dismissal of the complaint with prejudice and awarding Plemper costs and attorney’s fees. DCI filed the underlying action in May 2020, alleging Plemper owed $4,321.00 to Bakken Property Management for goods and/or services, and that the claim had been assigned to DCI. In September 2020, the district court granted DCI’s motion for default judgment. In October 2020, the district court granted Plemper’s motion for relief from judgment. DCI did not file a response to Plemper’s motion; Plemper then moved for summary judgment. There were settlement negotiations among the parties between the time of filing the motion for summary judgment and the court’s order. The parties exchanged emails agreeing that the matter should be dismissed but disagreed on whether costs should be awarded. In December 2020, without a response from DCI, the court granted Plemper’s motion for summary judgment and directed the clerk to enter judgment dismissing the complaint with prejudice and awarding Plemper his actual and statutory costs and disbursements, including reasonable attorney’s fees. Daniel Oster, attorney for DCI, had been seriously ill for about six months before he passed away on January 11, 2021. In February 2021, DCI moved to vacate the order granting Plemper’s motion for summary judgment, arguing: (1) Oster was not in good health during the time of the filing of the motion for summary judgment; and (2) there were ongoing settlement negotiations. Plemper filed a brief in opposition to the motion to vacate and requested the district court amend the existing judgment to add the attorney’s fees incurred in responding to the motion. The court denied DCI’s motion reasoning it failed to meet its burden and directed the clerk to enter judgment of dismissal and enter an award in favor of Plemper of actual and statutory costs and disbursements, including reasonable attorney’s fees. On appeal to the North Dakota Supreme Court, DCI argued the trial court erred in denying its motion to vacate because its late attorney kept his illness a secret. DCI also argued the court abused its discretion in awarding costs and attorney’s fees to Plemper. The Supreme Court affirmed in part the district court’s order denying DCI’s motion to vacate the order. The Supreme Court reversed in part the court’s order awarding costs and attorney’s fees and reversed in part the judgment awarding costs and attorney’s fees to Plemper in the amount of $1,625.00. View "DCI Credit Services v. Plemper" on Justia Law

Tioga Properties, LLC, appealed a district court judgment awarding Wades Welding, LLC $27,669.90 relating to Wades Welding’s lawsuit for enforcement of construction liens and unjust enrichment. Janice Ellsworth owned Tioga Properties. Tioga Properties owned a restaurant and home (referred to by the parties as a “mobile home”) adjacent to each other in Tioga, North Dakota. Susan Gordon leased the restaurant from Tioga Properties. Gordon delivered rent payments to John Ellsworth Jr., Janice Ellsworth’s son. Gordon resided in the home but had no written lease for that property. In late 2016 and early 2017, Gordon hired Wades Welding to repair the home and restaurant. Wades Welding performed $19,840 of work on the home and $2,500 of work on the restaurant. Wades Welding delivered the invoices for its work to Ellsworth Jr. A day after Wades Welding completed its work at the home, Ellsworth evicted Gordon from the restaurant and home. Ellsworth Jr. supervised the eviction and Gordon left both properties within 48 hours. In December 2017, Wades Welding recorded construction liens against the properties after Tioga Properties failed to pay for the repairs. Tioga Properties sold the restaurant in July 2019. In September 2019, Tioga Properties served on Wades Welding a demand to enforce the home lien. In October 2019, Wades Welding sued Tioga Properties for breach of contract, foreclosure of the construction liens and unjust enrichment. Tioga Properties denied the allegations, claiming it did not authorize Wades Welding's work on the properties. The district court found Wades Welding's construction liens on both properties were valid, and ordered foreclosure of the home lien. The court found the lien on the restaurant was unenforceable due to a service error, but nonetheless awarded Wades Welding the amount of the repaired under the doctrine of unjust enrichment. Finding no reversible error in the district court's judgment, the North Dakota Supreme Court affirmed judgment in favor of Wades Welding. View "Wades Welding v. Tioga Properties" on Justia Law

Henry H. Behle IV appealed the grant of summary judgment and award of attorney’s fees in favor of Darren Harr as personal representative of the Estate of Henry L. Behle. Behle filed a petition asking the district court to determine the validity of the decedent’s will and convert the administration to a formal probate. Harr, as personal representative of the Estate, objected to Behle’s petition and moved for summary judgment. Behle argued the probate application was defective because an electronic copy of the decedent’s will was filed with the district court rather than the original. Behle also claimed Harr asserted undue influence over the decedent. The district court granted Harr’s motion for summary judgment and allowed the probate to proceed informally. Harr thereafter moved for an award of attorney's fees. The North Dakota Supreme Court concluded Behle’s contentions only amounted to suspicion; viewing the evidence in the light most favorable to Behle, no genuine issue of material fact existed regarding undue influence. Therefore, the Court concluded the district court did not err in granting summary judgment. However, the Supreme Court found the district court erred in ordering Behle to pay attorney's fees: the district court did not analyze whether the allegations in Behle’s petition were made in good faith when it awarded attorney’s fees under N.D.C.C. 28-26-31. Instead, the district court focused on Behle’s arguments made in opposition to summary judgment. "The plain words of the statute pertain only to pleadings and not to motions or other documents. Accordingly, the district court abused its discretion in awarding attorney’s fees under N.D.C.C. 28-26-31." View "Estate of Behle" on Justia Law

Michael J. Tharaldson executed an “Irrevocable Trust Agreement” on February 14, 2007. The trust named State Bank & Trust (now known as Bell Bank), as trustee. On October 3, 2011, Tharaldson executed an “Irrevocable Trust Agreement II” and merged assets from the first trust into the second trust. Tharaldson died intestate on December 11, 2017. On June 28, 2019, Bell Bank filed a petition seeking the district court’s determination of trust beneficiaries and approval of asset distribution. Bell Bank claimed the sole beneficiary was Tharaldson’s brother, Matthew Tharaldson. Tharaldson had three biological children. Bell Bank mailed its petition, proposed order, and notice of hearing to the two adult children. Bell Bank sent the documents via email to the attorney representing Tharaldson’s minor child, E.M., in the separate probate action. E.M. challenged the court's jurisdiction after it ultimately granted Bell Bank's petition to distribute the trust assets. The district court found the language of the trust was not ambiguous, Tharaldson died intestate, and Matthew Tharaldson was the sole beneficiary of the trust, entitling him to distribution of all trust assets. E.M. argued on appeal that the district court erred in granting Bell Bank’s petition. He claimed the merger of assets from the first trust to the second trust was invalid. E.M. also claimed the trust designated E.M. and his siblings as the only beneficiaries, entitling them to share in the trust assets, and entitling E.M. to recover attorney’s fees. Bell Bank and Matthew Tharaldson argued collateral estoppel barred relitigation of E.M.’s claims in this case because of the district court’s findings about E.M.’s status as an heir in the Tharaldson probate case. The North Dakota Supreme Court determined the district court’s order denying E.M.’s demand for change of judge should have been granted, making the assigned judge's actions with respect to the merits of E.M.'s claims invalid. This case was remanded for assignment of a new judge and for proceedings anew on the merits of the petition. View "Matter of Michael J. Tharaldson Trust" on Justia Law

J.H. appealed a trial court's order and findings of fact denying his petition to remove T.F. as guardian of M.H., appoint himself as guardian, and remove contact restrictions T.F. placed on his contact with M.H. On appeal, J.H. argued the trial court abused its discretion in denying his motion to remove T.F. as guardian and refusing to remove restrictions T.F. placed on his contact with M.H, arguing the finding that he was unable to civilly structure his contact with M.H. was clearly erroneous. Because the district court did not abuse its discretion in ordering T.F. remain M.H.’s guardian and its findings of fact are not clearly erroneous, the North Dakota Supreme Court affirmed. View "Guardianship of M.H." on Justia Law

Henry H. Behle IV appealed the grant of summary judgment in favor of Darren Harr as the personal representative of the Estate of Henry L. Behle. The district court held Behle’s claims against the Estate concerning two parcels of real estate were untimely under N.D.C.C. 30.1-19-03(2), which barred certain claims that were not brought within three months of a decedent’s death. The court also held Behle’s claim to personal property was barred by the six-year statute of limitations for conversion under N.D.C.C. 28-01-16. Finding no reversible error, the North Dakota Supreme Court affirmed the trial court's judgment. View "Behle v. Harr" on Justia Law

A.S. appealed a juvenile court's judgment and order terminating her parental rights to her child, A.S.F. A.S. was appointed counsel when the State petitioned for involuntary termination of her parental rights. The trial court allowed A.S.’s counsel to withdraw after A.S. expressed dissatisfaction with her counsel. The termination hearing was continued and new counsel was appointed. One day before the rescheduled hearing, A.S.’s second counsel moved to withdraw. The judge heard the motion at the termination hearing. There, counsel stated a material breakdown in the attorney-client relationship had occurred. The court granted counsel’s motion on the basis of the treatment A.S. showed to her counsel and the unwillingness of A.S. to work with any attorney the court appointed. The judge found A.S.’s actions to be a voluntary waiver of her right to counsel. Counsel was allowed to leave the courtroom. The hearing proceeded with A.S. without counsel. The juvenile court entered an order terminating parental rights on June 10, 2021. A.S. appealed to the North Dakota Supreme Court 61 days after the initial June 10 order terminating her parental rights was entered. A.S. argues her right to counsel was violated after the court granted her second attorney’s motion to withdraw, leaving A.S. to represent herself at the termination hearing and without advice regarding the process and deadline for appeal. The Supreme Court determined it lacked jurisdiction even to consider a claim that a party failed to timely appeal as a result of a denial of the party’s right to counsel. "We are without jurisdiction to hear A.S.’s waiver of her right to counsel argument because her appeal was untimely." View "Interest of A.S.F." on Justia Law