Justia North Dakota Supreme Court Opinion Summaries

In February 2021, a contract for deed was executed between a property owner and a purchaser for two properties in Gladstone, North Dakota. The contract stipulated that the purchaser would receive title upon full and timely performance. The purchaser failed to make the required payments, prompting the owner to serve and publish a notice of cancellation in accordance with North Dakota law, which provided a six-month period to cure the default. The purchaser did not cure the default or file any affidavit asserting counterclaims or defenses during this period. After the cure period expired, the owner recorded a notice of cancellation and subsequently served the purchaser with a three-day notice of eviction when he remained in possession of the properties.The owner initiated separate eviction actions for each property in the District Court of Stark County, Southwest Judicial District. The court heard the matters together but did not consolidate them. After a hearing, the district court found that the owner had complied with statutory requirements for cancellation, that the purchaser had failed to cure the default, and that the purchaser was wrongfully retaining possession. The court excluded over 1,100 pages of evidence offered by the purchaser, finding it lacked foundation and was not relevant to the limited scope of an eviction action, which was solely to determine the right to possession. The court ordered the purchaser to vacate the properties.On appeal, the Supreme Court of North Dakota reviewed the district court’s findings for clear error and its evidentiary rulings for abuse of discretion. The Supreme Court held that service of process was proper, the exclusion of evidence was within the district court’s discretion, and the eviction was appropriate because the contract for deed had been canceled by operation of law. The Supreme Court affirmed the district court’s judgment of eviction. View "Cache Private Capital Diversified Fund v. Braddock" on Justia Law

Several individuals and organizations, including landowners and agricultural groups, challenged North Dakota statutes governing the underground storage of carbon dioxide and oil or gas, as well as laws permitting pre-condemnation surveys on private property. The plaintiffs own or represent owners of “pore space” in underground geological formations, which is used for carbon dioxide sequestration projects overseen by the North Dakota Industrial Commission (NDIC). The plaintiffs argued that the statutes authorizing amalgamation of pore space and pre-condemnation surveys violate constitutional protections against uncompensated takings and due process, and that certain statutory provisions constitute an improper delegation of legislative power.The District Court of Bottineau County granted summary judgment for the defendants, holding that most of the plaintiffs’ claims were barred by a six-year statute of limitations, as the claims were facial challenges to statutes enacted more than six years prior. The court also found that the plaintiffs’ challenge to the oil and gas storage law was not viable as a facial challenge because it depended on future actions and factual circumstances. The court did not reach the merits of the constitutional claims.The Supreme Court of North Dakota reviewed the case and held that the plaintiffs lacked standing to challenge the constitutionality of the provision allowing the NDIC to grant exceptions (N.D.C.C. § 38-22-03(7)) and the oil and gas storage amalgamation law (N.D.C.C. ch. 38-25), as they had not shown actual or threatened injury. However, the court found that the plaintiffs did have standing to challenge the carbon dioxide storage amalgamation provisions (N.D.C.C. ch. 38-22). The court ruled that the district court erred in dismissing these claims as time-barred, as the claims accrued when the NDIC acted under the statutes, not when the statutes were enacted. The court affirmed dismissal of the pre-condemnation survey law claims, but on the basis of binding precedent, not the statute of limitations. The case was affirmed in part, reversed in part, and remanded for further proceedings. View "Northwest Landowners Association v. State" on Justia Law

This case concerns a dispute over the calculation of nonparticipating royalty interests (NPRI) in oil and gas produced from a tract of land in McKenzie County, North Dakota. The plaintiffs, as trustees of three family trusts, each hold an undivided one-third interest in a 2% royalty on all oil and gas produced from the NW¼NE¼ of Section 31-154-97, based on a 1951 royalty deed. The land in question abuts the Missouri River, and a portion of it lies below the ordinary high-water mark, which is owned by the State of North Dakota. Continental Resources, Inc. operates an oil well on a spacing unit that includes this tract, while third-party defendants own the minerals above the high-water mark, subject to the trusts’ royalty interests.The District Court of McKenzie County previously found that the trusts’ NPRI did not include State-owned acreage below the high-water mark, and adopted Continental’s calculation of the royalty payment factor, which excluded the State’s acreage and included an upward adjustment for equitable distribution. The court also held that Continental’s suspension of royalty payments was permissible under the “safe harbor” provision of N.D.C.C. § 47-16-39.1, denied the trusts’ request for an accounting, and awarded costs to Continental, concluding the trusts were not the prevailing party. The trusts appealed, arguing errors in the NPRI calculation, the application of the safe harbor provision, and the determination of the prevailing party.The Supreme Court of North Dakota reversed the district court’s amended judgment. It held that the 1951 royalty deed unambiguously grants the trusts a 2% royalty on all oil and gas produced from the entire described tract, including State-owned acreage. The court remanded for recalculation of the NPRI, reconsideration of the safe harbor provision, determination of outstanding royalties and accounting, and proper allocation of costs and disbursements, finding the trusts to be the prevailing party. View "Garaas v. Continental Resources" on Justia Law

Rudra Tamm, Trustee of the Rudra Tamm Revocable Trust, owns Tract 2-B, which is situated between Tract 1-B owned by Diane Gatzke and Tract 3-B owned by Herman Eggers. Tamm sought a declaratory judgment to confirm his right to use vehicular driveways on access easements over the defendants' properties. He claimed that these easements were created when the original owner, Fred Roberts, subdivided the land and recorded a plat in 1993. Tamm also presented a 2010 warranty deed from Scott Johnson, which included the easements.The District Court of Burleigh County denied Tamm's motion for summary judgment and granted the defendants' motion for judgment on the pleadings, concluding that no easements existed on the defendants' properties for the benefit of Tract 2-B. The court entered a judgment of dismissal with prejudice.The North Dakota Supreme Court reviewed the case and affirmed the lower court's denial of summary judgment, finding that genuine issues of material fact remained unresolved, particularly regarding the creation and necessity of the easements. However, the Supreme Court reversed the judgment on the pleadings, determining that the district court erred in concluding that Tamm could not prove any claim that an easement existed. The case was remanded for further proceedings to address these factual issues, including whether Roberts intended to create easements and whether alternative access routes to Tract 2-B exist. View "Tamm v. Gatzke" on Justia Law

John and Stacy Bang own several parcels of real property in Dunn County, including the subject property in this dispute. They own both the surface and mineral estates. In May 2004, John Bang executed an oil and gas lease agreement with Diamond Resources, Inc., whose successor, Continental Resources, Inc., is the operator and holds the mineral lease. Continental notified the Bangs of its intent to install oil and gas facilities on the property, which the Bangs objected to. Continental subsequently constructed various facilities on the property.The Bangs filed a lawsuit against Continental in 2022, alleging trespass, seeking an injunction, and claiming damages under North Dakota law. The district court denied the Bangs' motions for a temporary restraining order and preliminary injunction. Continental filed a separate action seeking a declaratory judgment and an injunction against John Bang, which was consolidated with the Bangs' case. In January 2024, the district court granted Continental partial summary judgment, declaring Continental had the right to install a pipeline corridor and denied the Bangs' claims for trespass and permanent injunction. The court also denied Continental summary judgment on damages. A jury trial in February 2024 awarded the Bangs $97,621.90 for their compensation claims. The Bangs' motions for a new trial and other relief were denied.The North Dakota Supreme Court reviewed the case and affirmed the district court's amended judgment and order denying a new trial. The court held that the lease was unambiguous and provided Continental the authority to install pipeline facilities on the subject property. The court also upheld the district court's evidentiary rulings, including the exclusion of certain expert testimony and evidence of settlement agreements, and the exclusion of speculative evidence of future agricultural damages. The court found no error in the jury instructions and concluded that the district court did not abuse its discretion in denying the Bangs' motions under N.D.R.Civ.P. 59 and 60. View "Bang v. Continental Resources" on Justia Law

In this case, Donald Neuens entered into a contract for deed with Dorothy Czajkowski for the sale of property in Golden Valley County, North Dakota. Czajkowski agreed to pay $60,000 for the property, with a down payment and the remaining balance to be paid in monthly installments at an interest rate of 6%, along with property taxes. After Neuens passed away, the Axvigs purchased his interest from his estate. The Axvigs then initiated a quiet title action against Czajkowski to cancel the contract for deed, alleging that Czajkowski had abandoned the property, failed to make the required payments, and failed to pay the property taxes.The District Court of Golden Valley County awarded summary judgment in favor of the Axvigs, concluding that the contract for deed was canceled and awarding the property to the Axvigs. The court found that the contract allowed the Axvigs to proceed with a court action without providing notice and an opportunity to cure the default. Czajkowski appealed, arguing that the court erred in its interpretation of the contract and failed to allow a redemption period.The North Dakota Supreme Court reviewed the case and reversed the amended judgment. The court held that the contract for deed was unambiguous and required the seller to provide notice of default and an opportunity to cure before seeking cancellation. The court found that the district court misinterpreted the contract by allowing the Axvigs to proceed with the cancellation action without first providing the required notice and time to cure the default. The Supreme Court concluded that the Axvigs breached the contract by not providing the necessary notice of default before initiating the cancellation action. View "Axvig v. Czajkowski" on Justia Law

Mary Roth and Aric Roth filed a lawsuit against Gary Meyer and other members of the Meyer family, including trustees of the Jean L. Ehrmantrout Residuary Trust, seeking to quiet title to a 10-acre property in Grant County, North Dakota. Gary Meyer had lived on the property since 1962 and believed he owned it, despite a 1982 conveyance to Dolores Meyer’s father, Anthony Ehrmantrout. Gary and Mary Roth cohabitated on the property from 2002 to 2022, during which time Gary conveyed his interest to Mary via quitclaim deed in 2010, and she later conveyed it to her son, Aric.The District Court of Grant County initially found that Gary Meyer had gained title to the property through adverse possession and quieted title in favor of Aric Roth. The court also ordered Gary Meyer to pay Mary Roth $52,500 for loans she had made to him, finding unjust enrichment. The Meyers appealed, arguing that the district court erred in its findings on adverse possession and unjust enrichment.The North Dakota Supreme Court reviewed the case. The court affirmed the district court’s finding of unjust enrichment, agreeing that Gary Meyer was enriched by the loans and had not repaid them, thus impoverishing Mary Roth. However, the Supreme Court found that the district court erred in its adverse possession analysis. The court noted that adverse possession requires clear and convincing evidence of actual, visible, continuous, notorious, distinct, and hostile possession for 20 years. The court found the district court’s findings insufficient to establish hostile possession, particularly given the family relationship and lack of evidence of hostile acts.The North Dakota Supreme Court affirmed the district court’s judgment on unjust enrichment but reversed the decision to quiet title in favor of Aric Roth. The case was remanded for further proceedings consistent with the Supreme Court’s opinion. View "Roth v. Meyer" on Justia Law

KJ Carpenter purchased a vacant lot in a development governed by a Declaration of Restrictions and Obligations (DRO) that required all building plans to be approved by the Architectural Review Committee (Committee). Carpenter initially submitted a building proposal with asphalt shingles, which was approved. Later, he submitted an amended plan requesting a full metal roof, which was denied based on the restrictive covenant limiting roofing materials to cedar shakes, cedar shingles, or earth-toned colored shingles.Carpenter filed a lawsuit seeking court approval to construct a home with a full metal roof, arguing that the Committee had previously approved metal roofing for other houses, thereby waiving the restrictive covenant. He also contended that the "no waiver" clause in the DRO did not apply because the Committee's prior approvals were not in response to breaches.The District Court of Burleigh County granted summary judgment in favor of Southbay Homeowners Association, holding that Carpenter failed to raise any genuine issues of material fact. The court found that the restrictive covenant was clear and unambiguous, and the "no waiver" clause allowed the Committee to approve metal roofs for other properties while denying Carpenter's request.The North Dakota Supreme Court affirmed the summary judgment, agreeing that the "no waiver" clause precluded Carpenter from claiming a waiver of the restrictive covenant. The court held that the Committee's approval of partial metal roofs did not constitute a breach, but the two homes with full metal roofs were in violation of the DRO. The court concluded that Carpenter did not demonstrate a clear intent to waive both the restrictive covenant and the "no waiver" clause, and thus, the district court did not err in granting summary judgment. Southbay's request for costs and attorney's fees was denied. View "Carpenter v. Southbay Homeowners Association" on Justia Law

In June 2020, the North Dakota Department of Health inspected ND Indoor RV Park, LLC and found several health, safety, and fire code violations. The Park was informed that its 2020 operating license would be revoked unless the violations were corrected. The Park did not address the violations, leading to the initiation of the license revocation process. The Park also requested a renewal of its license for 2021, which was denied due to the existing violations. The Park was allowed to operate until the hearing proceedings were final. The Park later withdrew its request for a hearing, and the Department of Health dismissed the renewal application and closed the case. Subsequently, the Park sold its property.The Park filed a complaint against the State of North Dakota, alleging regulatory taking, deprivation of substantive and procedural due process, inverse condemnation, unlawful interference with business relationships, systemic violation of due process, and estoppel. The State moved for judgment on the pleadings, claiming qualified immunity for individual defendants and lack of subject matter jurisdiction on the takings claims. The district court denied the State’s motion for summary judgment on the takings and due process claims but granted summary judgment on the unlawful interference claim. The remaining claims were dismissed by stipulation.The North Dakota Supreme Court reviewed the case. The court granted a writ of supervision, directing the district court to dismiss counts II and III because the individual defendants were entitled to qualified immunity. The court also directed the dismissal of counts I and IV for lack of subject matter jurisdiction, as the Park failed to exhaust administrative remedies. The court concluded that the Park could not prevail on its substantive and procedural due process claims and that the district court lacked jurisdiction over the takings claims. View "ND Indoor RV Park v. State" on Justia Law

Benjamin Jones and Melanie Jones were married in 2003 and have two minor children. They resided in Glenburn, North Dakota, and purchased a modular home and surrounding acreage from Melanie's parents under a contract for deed. During the COVID-19 pandemic, payments on the contract were suspended, and no payments have been made since, leaving an outstanding debt. In March 2023, Benjamin filed for divorce. In February 2024, Melanie's father notified the parties of his intention to declare default and cancel the contract for deed. The trial was held later that month.The District Court of Renville County granted the divorce, awarded primary residential responsibility of the children to Benjamin, and divided the property and debts. The court found zero equity in the marital home due to nonpayment and the intention to foreclose. It reserved ruling on the final value of the marital home and debt consolidation loan for six months. The court awarded Melanie spousal support of $900 per month for 10 years and ordered her to pay $590 per month in child support.The North Dakota Supreme Court reviewed the case. It affirmed the award of primary residential responsibility to Benjamin, finding no clear error in the lower court's decision. However, it reversed the lower court's reservation of ruling on the marital home and debt consolidation loan valuations, as well as the valuation of the marital home and corresponding debt without specific findings on the valuation date. The Supreme Court also found error in the child support calculation for omitting spousal support and in-kind income.The Supreme Court remanded the case for the lower court to clarify the valuation date for the marital property and debt, make specific findings if another valuation date is fair and equitable, redistribute the marital estate if valuations change, reconsider spousal support in light of any redistribution, and recalculate child support to include spousal support. View "Jones v. Jones" on Justia Law