Justia North Dakota Supreme Court Opinion Summaries

The North Dakota Department of Human Services appealed a district court judgment reversing the Department's order deciding Altru Specialty Services, doing business as Yorhom Medical Essentials, received overpayments for medical equipment supplied to Medicaid recipients and ordering recoupment. The North Dakota Supreme Court concluded the district court did not have jurisdiction and the appeal should have been dismissed because Yorhom failed to satisfy statutory requirements for perfecting an appeal. View "Altru Specialty Services, Inc. v. N.D. Dep't of Human Services" on Justia Law

Hess Corporation ("Hess") appealed the grant of summary judgment which held Sundance Oil and Gas, LLC ("Sundance") held the superior leasehold mineral interest in a property located in Mountrail County. Sundance and Hess both moved for summary judgment, each arguing they had a superior claim to the mineral interests. The district court determined the trust action was res judicata and granted partial summary judgment in favor of Sundance, quieting title to the leasehold interest. Although the district court entered an order for partial summary judgment, the parties stipulated to the remaining issues related to revenues and expenses, and the district court later entered a final judgment. On appeal, Hess argued: (1) the district court erred in applying res judicata to determine Sundance was a good-faith purchaser for value; (2) the district court erred in granting summary judgment in Sundance's favor because genuine disputes of material fact existed; and (3) the district court erred by concluding Sundance could obtain a superior lease for the same property without providing Hess actual notice of the trust action proceedings. After review, the North Dakota Supreme Court determined the district court improperly applied res judicata and failed to consider the factual issues raised by Hess: a district court may not use the findings in an unlocatable mineral owner trust action as res judicata in a subsequent quiet title action to resolve all factual disputes regarding whether a later purchaser was a good-faith purchaser for value. The judgment was reversed and the matter remanded for further proceedings. View "Sundance Oil and Gas, LLC v. Hess Corporation" on Justia Law

Keith Candee appealed the grant of summary judgment to his parents, Lyla and Douglas Candee, awarding them an $884,508.83 deficiency judgment following foreclosure of properties in California and North Dakota. Keith and his parents executed a settlement agreement and mutual release of claims in 2013 relating to earlier disputes between the parties about the management of their family assets. Under the settlement agreement, Keith agreed to pay $2.2 million to Lyla and Douglas. The $2.2 million settlement amount was secured by real property in California and North Dakota. A deed of trust in favor of Lyla and Douglas secured the California property, and a mortgage secured the property in North Dakota. The deed of trust securing the California property included a power of sale provision allowing Lyla and Douglas to foreclose the property in a nonjudicial manner via a trustee's sale. After Keith failed to make payments under the settlement agreement, Lyla and Douglas foreclosed the California property. They proceeded with a nonjudicial foreclosure and in January 2014 purchased the property at a trustee's sale for a credit bid of $200,000. Lyla and Douglas foreclosed the North Dakota property and purchased the property for $975,000 at a July 2015 sheriff's sale. In September 2015, Lyla and Douglas sued Keith in North Dakota for a deficiency judgment for the difference between the amount Keith owed under the settlement agreement and the amount Lyla and Douglas obtained through foreclosure of the properties. Keith argued a deficiency judgment was not available under the agreement because California law applied and a deficiency judgment was prohibited under California law. The district court concluded California law applied only to the California property and granted summary judgment to Lyla and Douglas. The court entered an $884,508.83 deficiency judgment against Keith. On appeal, Keith maintained the California anti-deficiency statutes applied to the settlement agreement, and those statutes barred a deficiency judgment in this case. The North Dakota Supreme Court reversed and remanded, concluding California law barred a deficiency judgment in this case as a matter of law. View "Candee v. Candee" on Justia Law

United Fire & Casualty Company appealed a district court judgment awarding Carol Forsman $249,554.30 in her garnishment action against United Fire, commenced after she settled claims in the underlying suit against Blues, Brews and Bar-B-Ques, Inc., d.b.a. Muddy Rivers. Muddy Rivers was a bar in Grand Forks that was insured by United Fire under a commercial general liability ("CGL") policy. In 2010, Forsman sued Muddy Rivers and Amanda Espinoza seeking damages for injuries to her leg allegedly sustained while a guest at a February 2010 private party at Muddy Rivers. Muddy Rivers notified United Fire of the suit and requested coverage. United Fire denied defense and indemnification based on the policy's exclusions for assault and battery and liquor liability. However, after appeals and reconsideration, the court ruled in Forsman's favor, finding the settlement amount was reasonable. The North Dakota Supreme Court concluded the court erred in granting summary judgment because material fact issues existed on whether exclusions for "assault and battery" and "liquor liability" in the CGL policy excluded coverage of Forsman's negligence claim against Muddy Rivers. Furthermore, the Court concluded further conclude the court properly granted summary judgment to Forsman holding United Fire had a duty to defend Muddy Rivers under the CGL policy in the underlying suit. Therefore, the Court affirmed in part, reversed in part, and remanded for further proceedings. View "Forsman v. Blues, Brews & Bar-B-Ques Inc." on Justia Law

Karen Corum appealed the grant of summary judgments in two collection actions brought by American Express Centurion Bank. The North Dakota Supreme Court concluded the district court's summary judgments were proper as a matter of law and the district court did not err by denying Corum's request to allow her husband to be her spokesperson in court. A party who is not represented by a licensed attorney cannot be represented by another person, including their spouse, in any court of record in this state, absent authorization provided by state law or supreme court rule. The right of free speech does not encompass in-court advocacy by a non-lawyer on behalf of another person, including a spouse. View "American Express Centurion Bank v. Corum" on Justia Law

Shannon Evans appealed an order granting Gerald Feldmann ownership of certain property from Leonhard Feldmann's estate. The North Dakota Supreme Court affirmed, concluding the district court did not err in finding an inter vivos gift and did not err in finding the proceeds of the standing crop passed with the devise of real property. “The appellate court does not reweigh evidence, reassess witness credibility, or substitute its judgment for the trial court's decision merely because it would have reached a different result. Standing crops at the time of death pass with the real estate to which they are attached unless otherwise specified in a will.” View "Estate of Feldmann" on Justia Law

North Dakota Workforce Safety and Insurance ("WSI") appealed a judgment affirming a decision of an Administrative Law Judge ("ALJ") that had reversed WSI's administrative reclassification of Questar Energy Services, Inc.'s ("Questar") employees. n July 2012, Questar applied for and received insurance coverage from WSI. Following an audit in 2014, WSI determined Questar's employees had been improperly classified and reclassified Questar's employees. The classification of employees directly impacts the insurance rate used to calculate Questar's premiums for the insurance received from WSI. WSI contends the ALJ applied the wrong standard of review, improperly excluded from evidence the changes to the Rate Classification Manual, and erred in determining classification of Questar's employees was not supported by the record. The North Dakota Supreme Court concluded after review, the ALJ's underlying factual conclusions were supported by a preponderance of the evidence, and affirmed. View "WSI v. Questar Energy Services, Inc." on Justia Law

North Dakota, by the North Dakota Department of Corrections and Rehabilitation's Youth Correctional Center, petitioned for a supervisory writ directing a district court to vacate its July 18, 2017 order denying the State's motion for summary judgment on Delmar Markel's negligence claim. Markel cross-petitioned for a supervisory writ directing the district court to vacate its January 21, 2016 order dismissing Markel's claim for constructive and retaliatory discharge. Markel worked at the North Dakota Youth Correctional Center on December 9, 2012, when several inmates broke out of their locked rooms. The inmates injured Markel during their escape. In 2015, Markel brought a complaint against the State alleging one count of negligence for failure to fix faulty locks permitting the inmates to escape and one count of constructive and retaliatory discharge. The State argued that the Workforce Safety and Insurance ("WSI") Act in N.D.C.C. Title 65 barred Markel's negligence claim and that Markel failed to exhaust administrative remedies regarding his discharge claim. On January 21, 2016, the district court dismissed the discharge claim for failure to pursue available administrative remedies. The district court also denied the State's motion to dismiss Markel's negligence claim. The North Dakota Supreme Court exercised its original jurisdiction by granting the State's petition and denying Markel's cross-petition. The district court erred as a matter of law in denying the State's motion to dismiss Markel's negligence claim. Markel failed to allege and support at least an "intentional act done with the conscious purpose of inflicting the injury" to overcome the State's immunity. The State had no adequate remedy to avoid defending a suit from which it has immunity. View "North Dakota v. Haskell" on Justia Law

B.A.C. appealed a district court order for involuntary hospitalization and involuntary treatment with medication. B.A.C. was admitted to the North Dakota State Hospital on June 6, 2017. Prior to being admitted, B.A.C. drove his car into a pond near Devils Lake. He then walked barefoot away from the pond and invaded a private residence. When confronted inside, B.A.C. offered to buy the property. After B.A.C. was ordered to leave, he walked approximately two miles further before he was apprehended by police. In talking to the police officers, B.A.C. made several delusional statements about Bill Gates, Bill Clinton, and Donald Trump, which included stating that he himself was the richest man in the world and that was why Bill Clinton wanted to kill him. The police took B.A.C. to a hospital in Devils Lake. He was then transported to the North Dakota State Hospital in Jamestown. The State Hospital petitioned the district court for involuntary commitment of B.A.C. At the State Hospital, B.A.C. had refused to take prescribed medication and expressed his wish to leave the hospital. An examination was performed by a doctor of psychology at the State Hospital, who found B.A.C. to be mentally ill and noted that if "untreated on an inpatient basis he would likely place himself at risk, as he did just prior to the current admission." A psychiatrist performed an independent evaluation on B.A.C. and found him to have a primary psychotic disorder, and also believed releasing B.A.C. from the hospital without treatment would likely result in self-harm. The North Dakota Supreme Court affirmed the district court order, concluding that B.A.C.'s release did not moot this appeal and that the district court did not clearly err when it found by clear and convincing evidence that B.A.C. was a mentally ill person requiring inpatient treatment. View "Interest of B.A.C." on Justia Law

A.D., mother of P.T.D., C.R.D., P.A.D., P.P.D., and N.A.D., appealed a juvenile court order finding her five children were deprived under N.D.C.C. 27-20-02(8). These proceedings arose after the State alleged the children were subject to repeated exposure to domestic violence between A.D. and T.D.; A.D.'s methamphetamine and other substance abuse and the presence of controlled substances in the home; T.D.'s suicide attempts; and other mental health issues. After the deprivation hearing, the juvenile court found the children were deprived by clear and convincing evidence. The juvenile court ordered the children removed from the care, custody, and control of their parents on February 13, 2017. The North Dakota Supreme Court reversed and remanded, finding the juvenile court noted drug use, mental health issues, domestic violence, and other health issues in its order, but it failed to connect those facts to the children's deprivation. The Court remanded with instructions that the juvenile court make adequate findings of fact to determine whether P.T.D., C.R.D., P.A.D., P.P.D., and N.A.D. were deprived children based on the evidence presented at the initial deprivation hearing. View "Interest of P.T.D." on Justia Law