Justia North Dakota Supreme Court Opinion Summaries

Nodak Insurance Company (“Nodak”) appealed, and John D. Miller, Jr. d/b/a John Miller Farms, Inc. and JD Miller, Inc. (collectively, “Miller”) cross-appealed a judgment determining Miller’s insurance policy with Nodak provided coverage and awarding Miller damages. The dispute arose from Miller’s sale of seed potatoes to Johnson Farming Association, Inc. (“Johnson”). Miller operated a farm in Minto, North Dakota. During the 2015 planting season, Miller planted seed potatoes. Miller claimed a North Dakota State Seed Department representative inspected the field where the seed was being grown on July 13, July 26, and September 3, 2015, which indicated no problems with the seed crop. On or about September 3, 2015, Miller “killed the vines” in anticipation of and as required to harvest the seed crop. Miller harvested the seed crop between September 18 and September 25, 2015, and the harvested seed crop was immediately taken from the field to Miller’s storage facility south of Minto. n December 31, 2015, Miller and Johnson entered into a contract for the sale of seed potatoes. The contract for sale disclaimed any express or implied warranty of merchantability or fitness for a particular purpose and contained a limitation of consequential damages and remedies. In June or July 2016, Johnson informed Miller of problems with some of the seed potatoes he had purchased. Johnson stated an analysis definitively showed very high levels of the herbicide glyphosate, which caused the problems with the seed potatoes. The seed potatoes did not grow properly, and Johnson alleged damages as a result. It was undisputed the seed potatoes were damaged because an employee of Miller inadvertently contaminated the seed potatoes with glyphosate while they were growing on Miller’s Farm. In July 2016, Miller sought coverage for the loss from Nodak. Because the North Dakota Supreme Court concluded a policy exclusion applied and precluded coverage, the North Dakota Supreme Court reversed the district court's judgment. View "Miller, et al. v. Nodak Ins. Co." on Justia Law

Travis Iversen appealed a judgment entered in favor of appellee, Larson Latham Huettl, LLP (hereafter “LLH”), and an order denying relief from judgment under N.D.R.Civ.P. 59(j). Iversen was an attorney employed by LLH from February 2019 until July 2021. Iversen asserts that Tyrone Turner, an LLH partner, told Iversen that “you can only do the work that we give you.” After Iversen terminated his employment with LLH, LLH requested that Iversen refund it $35,772.63 for overpayment. LLH argues that Iversen owes this debt to LLH because he had not been credited with sufficient billable hours to justify the compensation he received under the employment agreement. Iversen refused to pay the deficiency, and LLH then sued Iversen. The district court issued a memorandum opinion granting LLH’s motion for summary judgment. Before judgment was entered, Iversen filed a “motion for reconsideration” citing N.D.R.Civ.P. 59(j). The district court denied Iversen’s motion. Iverson argued that several genuine issues of material fact remained, precluding summary judgment. He also argued the district court abused its discretion in denying his motion under Rule 59(j). Finding no reversible error, the North Dakota Supreme Court affirmed the judgment and the order denying Iversen’s Rule 59(j) motion. View "Larson Latham Huettl, LLP v. Iversen" on Justia Law

L&C Expedition, LLC (“L&C”) appealed the grant of summary judgment in favor of International Fidelity Insurance Company (“IFIC”) and denying summary judgment to L&C. L&C contracted with Unlimited Excavating (“Unlimited”) to perform work on a residential development project. Unlimited completed its work in November 2016 and received final payment in July 2017. In 2019, L&C learned of major problems in the construction and notified Unlimited it needed to make repairs. Unlimited did not make the repairs and L&C demanded IFIC arrange for performance of Unlimited’s work per the terms of the performance bond. IFIC refused to arrange for performance. L&C subsequently initiated suit against IFIC in May 2020 arguing L&C is entitled to recover $393,000 under the terms of the performance bond. The performance bond provided the following: “[a]ny suit under this bond must be[] [i]nstituted before the expiration of two years from the date on which final payment under the subcontract falls due.” The parties do not dispute the district court’s finding L&C initiated its action outside the limitation period provided within the terms of the bond. L&C argued the district court erred in finding a contractual limitation on the period to assert a claim was enforceable, erred in failing to apply N.D.C.C. § 9-08-05 to preclude modification of the applicable statute of limitations, and erred in interpreting N.D.C.C. § 22-03-03 as providing an exception to the prohibition against modifying the applicable statute of limitations. Finding no reversible error, the North Dakota Supreme Court affirmed. View "L&C Expedition, et al. v. Swenson, Hagen and Co., et al." on Justia Law

Defendants Eagle Crest Apartments, LLC, et al. appealed a judgment awarding UMB Bank N.A. more than $21 million in an action for breach of contract, foreclosure, fraudulent transfers, and deceit. The Defendants raised a number of issues on appeal. The North Dakota limited review to the issues raised in defendants' motion for a new trial, and concluded the district court did not err when it entered a deficiency judgment and pierced the Defendants’ corporate veils. View "UMB Bank N.A. v. Eagle Crest Apartments, et al." on Justia Law

Justin Shafer appealed a district court judgment confirming an arbitration award against Diamond Development & Custom Homes, L.L.C. Shafer argued the district court erred by failing to increase the amount of damages he was awarded. He also argued the North Dakota Supreme Court should narrowly expand the standard for reviewing an arbitration award. The Court declined Shafer’s request to expand the standard of review, and concluded the district court did not err in confirming the arbitration award. View "Shafer v. Scarborough, et al." on Justia Law

Thomas Burckhard appealed a judgment entered following consideration of Larson Latham Huettl LLP’s motion for summary judgment. Burckhard began employment with Larson Latham Huettl LLP (hereinafter LLH) in January 2019. In May 2019 Burckhard signed an employment contract, under which Burckhard agreed he would receive compensation based upon projected hours billed. Any overpayment resulting from a deficiency between the projected hours he would bill and the actual hours he billed would be considered a debt owed by Burckhard to LLH. Burckhard’s employment with LLH ended on August 15, 2020. At that time, Burckhard was paid for 697.88 projected billable hours more than his actual billable hours resulting in an overpayment of compensation in the amount of $29,885.38. LLH filed suit alleging breach of contract seeking to recover the excess compensation plus pre-judgment interest. The district court granted LLH’s motion finding there were no issues of material fact and LLH was entitled to judgment as a matter of law. Burckhard appealed, arguing summary judgment was improper because the contract’s purpose was frustrated, the contract is unconscionable, the contract fails for lack of consideration, LLH waived its right to obtain payment, there is a genuine dispute as to the amount of the damages, and the district court abused its discretion in denying Burckhard additional time for discovery. The North Dakota Supreme Court determined Burckhard failed to prove there was a genuine dispute as to any material fact. The district court properly granted summary judgment in favor of LLH and properly dismissed all of Burckhard’s affirmative defenses. View "Larson Latham Huettl, LLP v. Burckhard" on Justia Law

Scotty Fain, Sr., Scotty Fain, Jr., and Kris Durham appealed a district court judgment entered following findings that there was no contract between the parties, no transfer of ownership interest in Integrity Environmental, LLC, and no violation of fiduciary duties as alleged in the complaint against Integrity Environmental, LLC, Andrea Vigen, Lewis Vigen, and Kelly Harrelson. They also challenged the court’s findings that a substitute arrangement agreed upon by all parties led to an accord and satisfaction, novation, and waiver of contractual rights. Finding no reversible error in that judgment, the North Dakota Supreme Court affirmed. View "Fain, et al. v. Integrity Environmental, et al." on Justia Law

Jeff Trosen appealed a judgment and amended judgment awarding damages for a breach of contract claim to the Estate of Shirley Trosen and the Trosen Family Trust and dismissing Jeff’s counterclaim and third-party complaint. A dispute arose over Jeff’s lease of farmland from Shirley. The lease covered the farming seasons of 2017 through 2022. Partial payments were made in 2020 and 2021, leaving balances owed for those years. Shirley and the Trust sued Jeff for breach of contract and to cancel the lease. Jeff argued the district court erred in granting summary judgment on the breach of contract claim and by dismissing his counterclaim and third-party complaint. Finding no reversible error, the North Dakota Supreme Court affirmed the judgments. View "Trosen, et al. v. Trosen, et al." on Justia Law

Ordahl LLC (“Ordahl”) appeals from a district court order granting Arlene Lykken, Bruce Lykken, Paul Lykken, and Sandra Teske’s (“the Lykkens”) motion for summary judgment and denying Ordahl’s motion for summary judgment. Ordahl and the Lykkens executed a purchase agreement for the sale of 12 acres of land and an easement on adjacent property to the north of the parcel. Under the terms of the purchase agreement, Ordahl was required to provide a $10,000 earnest money payment. After the purchase agreement was signed, the Lykkens anticipatorily breached the agreement. Ordahl brought suit seeking a declaratory judgment declaring that Ordahl’s relief was not limited to the return of its earnest money. Ordahl claimed it was not required to terminate the parties’ agreement and was entitled to enforce the terms of the agreement through the equitable doctrine of specific performance. The Lykkens counterclaimed seeking reformation of the purchase agreement. The North Dakota Supreme Court concluded the trial court erred in determining the purchase agreement required Ordahl to terminate the agreement and limited Ordahl to a recovery of its earnest money. The Supreme Court reversed and remanded this case for consideration of whether Ordahl should have prevailed on its equitable claim to enforce the terms of the parties’ agreement through specific performance and, if necessary, consider the Lykkens’s request for reformation of the agreement. View "Ordahl v. Lykken, et al." on Justia Law

Troubadour Oil and Gas, LLC, petitioned the North Dakota Supreme Court for a supervisory writ after the district court issued a discovery order requiring Troubadour to disclose all communications between Troubadour’s counsel and Troubadour’s owner who also was identified as an expert witness. Troubadour argued the court erroneously required the disclosure of confidential communications protected by the attorney-client privilege and the work product doctrine. After review, the Supreme Court granted the petition and directed the district court to vacate the portion of its March 10, 2022 discovery order requiring disclosure of all communications between Troubadour’s counsel and Troubadour’s owner because the court abused its discretion and misapplied the law by relying on federal rules and case law not applicable in this state court proceeding. The Supreme Court also vacated the court’s award of attorney’s fees and remanded for reconsideration. View "Troubadour Oil & Gas v. Rustad, et al." on Justia Law