Justia North Dakota Supreme Court Opinion Summaries

Northstar Center, LLC entered into a real estate contract with Lukenbill Family Partnership, LLLP to purchase a 120-acre parcel of land. The contract was later assigned to Northstar by Templeton Enterprises, LLC. The agreement included an option to purchase an additional 105-acre parcel, which was amended to a commitment to purchase. Northstar provided a promissory note for a tax increase payment due by January 1, 2014, but paid it late. Lukenbill sold the disputed property to Tundra Properties, LLC, leading Northstar to sue for breach of contract and intentional interference with contract.The District Court of Williams County granted summary judgment in favor of Northstar on its breach of contract claim against Lukenbill and its intentional interference with contract claim against Tundra. The court also granted summary judgment in favor of Lukenbill on its indemnification claim against Tundra and dismissed Tundra’s breach of warranty claim against Lukenbill. The court held a bench trial on Northstar’s damages due to Lukenbill’s breach.The North Dakota Supreme Court reviewed the case and found that the district court erred in granting summary judgment for Northstar on its breach of contract and intentional interference claims. The Supreme Court determined that genuine issues of material fact existed regarding whether Northstar breached the contract by failing to make the tax increase payment on time and whether Tundra had knowledge of the contract amendments. The court also found that the district court improperly resolved factual disputes regarding Tundra’s knowledge and intent, and whether Tundra acted without justification.The Supreme Court affirmed the dismissal of Tundra’s breach of warranty claim but reversed the summary judgments on Northstar’s breach of contract and intentional interference claims, as well as Lukenbill’s indemnification claim. The case was remanded for further proceedings consistent with the Supreme Court’s opinion. View "Northstar Center v. Lukenbill Family Partnership" on Justia Law

Christine Berger and Brian Repnow were in a decade-long relationship but never married. During their relationship, they accumulated various properties and businesses. In August 2021, Berger filed a lawsuit seeking partition, conversion, promissory estoppel, and unjust enrichment, requesting an equitable division of their accumulated real and personal property or monetary damages. Repnow claimed sole ownership of the properties and requested denial of Berger's claims.The District Court of Mercer, South Central Judicial District, held a two-day bench trial in October 2023. The court granted Berger's partition claim for the Expansion Drive property, awarding her sole ownership, and determined that the other properties and vehicles were solely owned by Repnow. The court also granted Berger's unjust enrichment claim, awarding her $64,000 for her contributions to Repnow's properties, and denied the claims of conversion and promissory estoppel. The court awarded the Dream Girls Boutique business to Repnow and Powerhouse Nutrition to Berger.The North Dakota Supreme Court reviewed the case. The court affirmed the district court's finding that the parties intended to share ownership of the Expansion Drive property and the award of Powerhouse Nutrition to Berger. However, it reversed the decision to award 100% of the Expansion Drive property to Berger, stating that the district court should have considered the parties' respective ownership interests and made an equitable division. The court also found that the district court failed to complete the unjust enrichment analysis and adequately explain the $64,000 award.The North Dakota Supreme Court remanded the case for the district court to determine the parties' respective ownership interests in the Expansion Drive property and make an award consistent with those interests. The court also instructed the district court to complete the unjust enrichment analysis and provide a clear explanation for the $64,000 award if necessary. View "Berger v. Repnow" on Justia Law

Mark Nelson, operating North Country Weatherization Technologies, provided ice removal services to Pine View First Addition Association, a Minnesota non-profit homeowners' association, in spring 2023. Pine View's property manager, a North Dakota LLC, contacted Nelson for urgent ice removal due to water damage. Nelson completed the work and invoiced Pine View, but payment was delayed, allegedly due to Pine View's attempt to have insurance cover the costs. Nelson filed a lawsuit in North Dakota for breach of contract and unjust enrichment, seeking $79,695 plus interest and attorney’s fees.The District Court of Cass County, East Central Judicial District, granted Pine View's motion to dismiss for lack of personal jurisdiction, concluding that North Dakota did not have jurisdiction over Pine View, as it is a Minnesota entity and the services were performed in Minnesota. The court also denied Pine View's motion for Rule 11 sanctions against Nelson and his attorney, as well as Nelson's request for prevailing party attorney’s fees.The Supreme Court of North Dakota reviewed the case and reversed the district court's decision. The Supreme Court held that North Dakota has specific personal jurisdiction over Pine View because Pine View, through its North Dakota-based property manager, initiated contact with Nelson for the ice removal services. The court found that Pine View's contacts with North Dakota were sufficient to satisfy the state's long-arm provision and due process requirements. The Supreme Court also determined that the district court abused its discretion in denying Nelson's request for prevailing party attorney’s fees under Rule 11(c)(2), as Pine View's motion for sanctions against Nelson violated Rule 11(c)(5)(A). The case was remanded for further proceedings and to determine the amount of attorney’s fees Nelson is owed. View "Nelson v. Pine View First Addition Association" on Justia Law

Jason Bott and Suzanne Bott married in 2008 and have two minor children. In November 2022, Suzanne initiated a divorce action. They entered into a stipulated settlement agreement, and a judgment reflecting the terms was entered in June 2023. Jason was awarded all real estate, including the marital home and a rental property, and was required to pay Suzanne $425,000 in two installments. Shortly after the judgment, Jason asked Suzanne to alter the terms due to financial difficulties. They signed a handwritten document without their attorneys' knowledge, agreeing that Suzanne would retain the marital home and Jason would not have to make the cash payment. Suzanne later rescinded the agreement, moved out, and filed a motion for contempt against Jason for not making the first payment.The District Court of Cavalier County denied Jason's motion to amend the judgment under N.D.R.Civ.P. 60(b)(6), finding that the parties intended to cancel the agreement. The court ordered Jason to make the cash payments as originally stipulated. Jason appealed, arguing the agreement was a valid contract and Suzanne failed to prove its rescission.The North Dakota Supreme Court reviewed the case, focusing on whether the district court abused its discretion in denying Jason's motion. The court noted that Jason did not argue the original stipulation was the result of mistake, duress, menace, fraud, or undue influence, nor did he argue it was unconscionable. The court found that Jason did not demonstrate extraordinary circumstances justifying relief from the judgment. The court affirmed the district court's decision, concluding that Jason failed to show the court acted arbitrarily or unreasonably in denying his motion. View "Bott v. Bott" on Justia Law

Northstar Center, LLC filed a lawsuit against Lukenbill Family Partnership, LLLP, and Tundra Properties, LLC, alleging breach of contract and intentional interference with contract. Lukenbill had initially agreed to sell a 120-acre parcel to Templeton Enterprises, LLC, which later assigned its rights to Northstar. However, Lukenbill sold the property to Tundra instead. Northstar claimed Lukenbill breached their agreement, and Tundra intentionally interfered with the contract. Lukenbill sought indemnification from Tundra, and Tundra counterclaimed for breach of warranty deed against Lukenbill.The District Court of Williams County granted summary judgment in favor of Northstar on its breach of contract and intentional interference claims, and in favor of Lukenbill on its indemnification claim against Tundra. The court denied Tundra’s summary judgment motion on its breach of warranty claim against Lukenbill, concluding Tundra did not adequately brief the issue.The North Dakota Supreme Court reviewed the case and found that the district court erred in granting summary judgment for Northstar on its breach of contract and intentional interference claims, as genuine issues of material fact existed. The court also found that the district court erred in granting summary judgment for Lukenbill on its indemnification claim against Tundra. However, the Supreme Court affirmed the district court’s dismissal of Tundra’s breach of warranty claim against Lukenbill, as Tundra did not challenge the dismissal on the grounds that it could not maintain the claim without a certificate of authority to transact business in North Dakota.The North Dakota Supreme Court affirmed in part, reversed in part, and remanded the case for further proceedings consistent with its opinion. View "Northstar Center v. Lukenbill Family Partnership" on Justia Law

Torrey Kath brought a personal injury lawsuit against Michael Prochnow and Prochnow Farms, alleging that Prochnow moved a semi-truck while Kath was underneath, causing significant injury. Kath and Prochnow entered into a Miller-Shugart agreement, where Prochnow accepted damages, and Kath agreed to collect solely from Prochnow’s insurers. The case was dismissed with prejudice after a stipulation of dismissal was filed.Kath then filed a declaratory judgment action against Farmers Union Mutual Insurance Company (FUMIC), which insured Prochnow under a farm liability policy. Kath sought declarations that the policy covered his injuries and that the Miller-Shugart agreement was reasonable and binding on FUMIC. The District Court of Stutsman County granted Kath summary judgment on the coverage issue, interpreting the policy’s motor vehicle exclusion as not applying to the coverage added by a farm employer liability endorsement.FUMIC moved for summary judgment, arguing it had no duty to indemnify Prochnow because the personal injury action had been dismissed with prejudice. While this motion was pending, Kath and Prochnow successfully moved to vacate the dismissal and entered a $2 million judgment against Prochnow, to be paid solely by FUMIC. The district court then denied FUMIC’s motion for summary judgment, holding that the judgment in the personal injury action rendered FUMIC’s motion moot and granted summary judgment in favor of Kath on the second count of his complaint.The North Dakota Supreme Court reviewed the case and reversed the district court’s judgment. The Supreme Court held that the policy’s motor vehicle exclusion applied to Kath’s injuries, and thus, the policy did not provide coverage. The court concluded that the endorsement did not supersede the motor vehicle exclusion and that the policy, when read as a whole, excluded coverage for injuries related to the use of motor vehicles. View "Kath v. Farmers Union Mutual Ins. Co." on Justia Law

The case involves a dispute over the sale of real property owned by the estate of Mark Engelhardt. Yvonne Engelhart, the personal representative of the estate, sent a notice letter to interested parties, including the Ebels and Tom Gross, outlining the bidding process for the property. The Ebels submitted bids that complied with the notice letter's requirements, while Gross submitted bids that did not meet the specified conditions. Despite this, the estate's attorney initially declared the Ebels the winning bidders but later accepted Gross's bids after he questioned the process.The District Court of McIntosh County initially dismissed the Ebels' claims, concluding the contracts were invalid due to the statute of frauds. The North Dakota Supreme Court reversed this decision, stating the statute of frauds was not properly raised. On remand, the district court declared the contracts between the Ebels and the estate valid and ordered specific performance. The court dismissed the Ebels' tortious interference claims against Gross, finding his actions justified.The North Dakota Supreme Court reviewed the case and affirmed the district court's decision. The court held that valid contracts were formed between the Ebels and the estate when the estate's attorney declared them the winning bidders. The court found that Gross's bids did not comply with the notice letter's requirements and that he had actual notice of the Ebels' winning bids, disqualifying him as a good-faith purchaser. The court also upheld the dismissal of the Ebels' tortious interference claims, concluding Gross's actions were reasonable and justified under the circumstances. View "Ebel v. Engelhart" on Justia Law

Jason Ziemann, the plaintiff, became involved in the operation of Grosz Wrecking, a business owned by his grandmother, Juanita Grosz, after her husband passed away. Ziemann moved into a home on the business property in 2014. In 2022, Grosz sought to evict Ziemann after he refused to purchase the home. Ziemann then sued Grosz, alleging they had an oral partnership agreement and sought a declaration of partnership, accounting, and dissolution, along with claims for breach of fiduciary duties and tortious interference with a business relationship. Grosz denied the partnership and counterclaimed for trespass.The District Court of McLean County denied Ziemann’s motion for partial summary judgment, ruling factual issues existed regarding the partnership. The court granted Grosz’s motion, dismissing Ziemann’s claims for tortious interference and breach of fiduciary duty, citing inadmissible hearsay and lack of evidence for damages. After a bench trial, the court found the parties had formed a partnership with specific profit-sharing terms and dismissed Grosz’s trespass claim, allowing Ziemann to remain on the property until the business was dissolved. The court ordered the liquidation of partnership assets and awarded Ziemann costs.The Supreme Court of North Dakota reviewed the case. It affirmed the lower court’s findings that a partnership existed and that Grosz contributed property to it. The court also upheld the dismissal of Grosz’s trespass claim and Ziemann’s claims for tortious interference and breach of fiduciary duty. However, it reversed the lower court’s decision not to apply the default partnership winding up provisions under N.D.C.C. § 45-20-07. The case was remanded for the district court to enter judgment consistent with this decision. The Supreme Court affirmed the award of costs and disbursements to Ziemann as the prevailing party. View "Ziemann v. Grosz" on Justia Law

The case involves East Central Water District ("East Central") and the City of Grand Forks ("City"). East Central alleged that the City unlawfully curtailed its water service area, violating federal and state laws. East Central sought to declare a water supply and service agreement with the City void from the beginning under a specific North Dakota statute. The agreement, entered into in 2000, was designed to avoid conflict in providing potable water as the City annexed territory in East Central's service area. The agreement was subject to a North Dakota statute that required the public lending authority to be a party to the agreement. However, the Bank of North Dakota, the public lending authority, was not a party to the agreement.The case was initially brought before the United States District Court for the District of North Dakota. The City answered East Central’s complaint and counterclaimed, and brought a third-party complaint against William Brudvik and Ohnstad Twichell, P.C. for legal malpractice in their representation of the City during negotiations and execution of the Agreement. The City then moved the federal district court to certify questions to the Supreme Court of North Dakota on the interpretation of the North Dakota statute.The Supreme Court of North Dakota was asked to answer two certified questions of law: whether the language “invalid and unenforceable” in the North Dakota statute means an agreement made without the public lending authority as a party is (1) void from the beginning or (2) voidable and capable of ratification. The court concluded that the language “invalid and unenforceable” means void from the beginning, and does not mean voidable and capable of ratification. The court reasoned that the statute speaks to the authority to contract on this subject matter, as opposed to the manner or means of exercising one’s power to contract. Therefore, none of the parties were authorized to contract for water services without the public lending authority being a party to the agreement. View "East Central Water District v. City of Grand Forks" on Justia Law

The case involves a dispute between Mary Roth and Gary Meyer, who were in a relationship and cohabitated from 2002 to 2022. They shared a bank account and ran an intermingled cattle herd. The dispute arose over the ownership of a property and cattle, and the enforcement of oral loan agreements. The property in question was initially owned by Anthony and Jean Ehrmantrout, who transferred it to each other in 1994. After their deaths in 2001, the property was distributed to their grandchildren, Chet, Carlos, and Marty Meyer, as co-trustees of the Jean Ehrmantrout Residuary Trust. In 2004, Marty Meyer transferred his interest in the property to Gary Meyer. In 2010, Gary Meyer transferred his interest in the property to Mary Roth.The District Court found that Gary Meyer had gained ownership of the property through adverse possession and had valid title when he transferred it to Mary Roth in 2010. The court also found that Gary Meyer had converted 13 of Mary Roth's cattle and breached oral loan agreements with her, awarding her damages. Both parties appealed the decision.The North Dakota Supreme Court reversed the District Court's decision. The Supreme Court found that the District Court had erred in finding that Gary Meyer had gained ownership of the property through adverse possession. The Supreme Court also found that the District Court had erred in admitting certain evidence, in failing to determine when the alleged conversion of cattle began, in valuing the converted cattle, and in finding that Gary Meyer owed on loan contracts that were unenforceable under the statute of frauds. The case was remanded to the District Court for further proceedings. View "Roth v. Meyer" on Justia Law