Justia North Dakota Supreme Court Opinion Summaries

Lori Ihli appealed a district court judgment dismissing her claims against Anthony Lazzaretto, d/b/a Lazzaretto Construction ("Lazzaretto"). In June 2011, Ihli's Minot home flooded. Ihli contacted Lazzaretto for an estimate to repair the home, and in February 2012, she accepted Lazzaretto's bid proposal. Lazzaretto began working on Ihli's home; however, a dispute arose between the parties regarding the quality of the work, and Lazzaretto ceased working on the home. In November 2012, Ihli applied for federal disaster relief funding to repair or replace her house through the City of Minot Disaster Recovery Homeowner Rehabilitation and Reconstruction Program. Ihli sought estimates from two construction companies, Real Builders, Inc. and Wright Brothers, to "repair" and complete the project. Ihli then sued Lazzaretto, alleging he damaged her property by performing remodeling work in a negligent manner. After commencing the suit against Lazzaretto, she learned she was eligible for the disaster relief funding in "late August 2013." In Ihli's deposition, Ihli stated that program administrators inspected the house and recommended the house be torn down and replaced, instead of being repaired. After Ihli commenced the suit against Lazzaretto and learned of her eligibility for disaster relief funding and after Ihli's counsel granted Lazzaretto's counsel an extension to file Lazzaretto's answer to Ihli's complaint, Ihli allowed the house to be demolished. Before the house was demolished, Ihli's attorney had advised Ihli to take photos or video of the property before the house was torn down. Ihli never informed Lazzaretto of the plan to demolish the house. After the house was demolished, Lazzaretto served its answer. In June 2014, Lazaretto moved for sanctions, requesting the case be dismissed due to Ihli's spoliation of evidence. Ihli then moved to amend her complaint, seeking to add a claim for breach of contract. After a hearing on both motions, the district court denied Ihli's motion to amend the complaint, granted Lazzaretto's motion for sanctions, and dismissed Ihli's claims. On appeal, Ihli argued the district court erred in dismissing her case as a sanction for spoliation of evidence because the sanction was overly severe and an abuse of discretion. Ihli also argued the district court erred in denying her motion to amend the complaint because Lazzaretto was on notice of the proposed breach of contract claim and would not have been prejudiced. Under the facts of this case, the Supreme Court concluded the district court did not abuse its discretion in imposing the sanction of dismissal and denying Ihli's motion to amend. View "Ihli v. Lazzaretto" on Justia Law

Marlin and Tanya Sabinash appealed a corrected judgment quieting title to real property located in Stutsman County to Dana Baker. In 1992, Marlin Sabinash owned real property subject to a mortgage with the Bank of North Dakota. In 2001, Stutsman County property taxes were not paid on the property. The county provided both Marlin Sabinash and the Bank of North Dakota notice of a tax lien on the property requiring payment on or before October, 2006, and subsequently foreclosed on its lien. An auditor's tax deed was issued to the county in 2006, and the property was sold to Dana Baker at public auction. He received a county deed which was recorded. The Bank of North Dakota provided Baker notice of intent to foreclose on the same property in 2008 under its mortgage lien. The property was foreclosed upon and sold at a sheriff's sale to Raymond Sabinash. In 2009, Raymond Sabinash assigned his interest in the property to Marlin Sabinash, who received and recorded the sheriff's deed. Baker filed a quiet title action. Both parties moved for summary judgment to determine the superior interest and ownership of the property. The district court granted Baker's motion and denied the Sabinashes' motion, holding that the State, through the Bank of North Dakota, was never at anytime the property owner and only held a mortgage. Although prior precedent established that the State of North Dakota's mortgage lien could not be inferior to a county tax lien, the district court determined that was no longer applicable. Because the district court erred as a matter of law in determining the county tax lien was superior to the interest held by the State through a Bank of North Dakota mortgage on the property, the Supreme Court reversed and remanded for entry of judgment quieting title to the property in favor of the Sabinashes and for further proceedings. View "Baker v. Sabinash" on Justia Law

At issue in this case was the number of mineral acres owned by Todd Hall in a tract of land in Dunn County as a result of a conveyance from Harry L. Malloy to Todd Hall's predecessor in interest, Edwin Hall. Todd Hall claimed he owned 9 net mineral acres in the land and the "Family Mineral Trust" claimed he owns 4.5 net mineral acres in the land. After review of the chain of title for the disputed mineral interests, the Supreme Court concluded that the trial court did not err in determining that the Family Mineral Trust had no right, title, or interest in disputed mineral interests in a tract of land in Dunn County and in quieting title in the disputed mineral interests to Todd Hall. The Court concluded Harry L. and Lorraine Malloy's 1983 divorce judgment did not convey Harry L. Malloy's after-acquired title in the disputed mineral interests to Lorraine Malloy, which then would have passed the interests to the Family Mineral Trust. View "Hall v. Malloy" on Justia Law

Plaintiffs-appellants Arlen and Beverly Flynn appealed the dismissal of their action against Hurley Enterprises, Inc., for maintaining a public or private nuisance near their property in McKenzie County. The Supreme Court reversed, finding that the district court erred in allowing the introduction of evidence concerning the reputation and good deeds of Vess Hurley and Hurley Enterprises and erred in instructing the jury. Those errors affected the Flynns' substantial rights. Therefore, the Court reversed the judgment and remanded for a new trial. View "Flynn v. Hurley Enterprises, Inc." on Justia Law

In the early 1980s, the cities of Harwood and Reiles Acres entered a series of agreements to address common waste water treatment problems. In June 1985, they agreed in writing to construct and operate the Harwood Lagoon near the municipalities. Under that agreement, Harwood was responsible for 68 percent and Reiles Acres for 32 percent of the acquisition and construction costs of the Harwood Lagoon. Each municipality was responsible for maintenance and operational costs of their own collection system, and Harwood was responsible for administering and managing the operation of the facility. Their agreement allocated 68 percent of the maintenance costs for the facility to Harwood and 32 percent of those costs to Reiles Acres and also allotted 68 percent of the facility's capacity to Harwood's customers and users and 32 percent of the facility's capacity to Reiles Acres' customers and users. The agreement ultimately resulted in Harwood owning an undivided 68 percent interest and Reiles Acres owning an undivided 32 percent interest in the Harwood Lagoon. In July 1985, Lake Shure Properties purchased from Reiles Acres the right to use 50 percent of Reiles Acres' volumetric capacity in the lagoon, which constituted 16 percent of the total capacity of the lagoon. The agreement between Lake Shure Properties and Reiles Acres permitted each party to buy, sell, or otherwise deal with their respective share of the facility's volume. In 1993, Lake Shure Properties transferred 56.5 percent of its interest in the volumetric capacity in the Harwood Lagoon to Lake Shure Estates, Inc., a North Dakota nonprofit corporation consisting of homeowners residing in the Lake Shure Estates' subdivision near Harwood and Reiles Acres. The transfer resulted in Lake Shure Estates obtaining 9.04 percent of the total waste water treatment capacity of the Harwood Lagoon. Harwood's state certified operator for the lagoon testified that the facility was designed to provide waste water treatment services for approximately 500 people, and the population growth of Harwood and Reiles Acres made it difficult for the municipalities to continue to provide the required 180 days of winter storage capacity for the facility. In 1998, Reiles Acres contracted with Fargo for treatment of Reiles Acres' waste water, and since that time, it has not used the Harwood Lagoon for waste water treatment services. In 2009, Harwood contracted with Fargo for waste water treatment services, and in 2010, Lake Shure Estates contracted with Fargo for waste water treatment services. Neither Harwood nor Lake Shure Estates has used the Harwood Lagoon for municipal waste water treatment services since they contracted with Fargo for those services. Harwood and Lake Shure Estates sued Reiles Acres and all other persons unknown claiming any interest in the Harwood Lagoon, seeking a declaration of the parties' interests and obligations under their contracts and a partition of the Harwood Lagoon property. Reiles Acres appealed the judgment entered after a bench trial declaring the contractual obligations of Reiles Acres and the City of Harwood under the 1985 contract for construction and operation Harwood Lagoon were discharged by frustration of purpose and the order confirming a partition by public sale of the land encompassing the Harwood Lagoon. Reiles Acres argues the district court lacked subject matter and personal jurisdiction to enter a declaratory judgment nullifying the parties' contractual obligations and to order a partition sale of the land. After review, the Supreme Court concluded the court had jurisdiction to construe contracts in the declaratory judgment action and the court did not err in construing a 1985 contract between Harwood and Reiles Acres and determining the principal purpose of the contract was frustrated. Furthermore, the Court concluded the court did not err in ordering partition by public sale of the land. View "City of Harwood v. City of Reiles Acres" on Justia Law

A jury found defendant-appellant Rodney Brossart guilty of terrorizing, preventing arrest, and failing to comply with the law for estray animals. In 2011, two of Brossart's adult children observed three cow-calf pairs loose on or near Brossart's property and they determined the cattle did not belong to Brossart. The cattle were secured in a fenced "missile site" Brossart leased. One of Brossart's children told him about the cattle after the cattle were secured. The following day, neighbor Chris Anderson discovered three cow-calf pairs had escaped from his fenced property. Anderson tracked the cattle to Brossart's property and spoke to Brossart about the cattle. According to Anderson, Brossart informed him that he would have to buy the cattle back. Anderson returned to his farm and contacted the Nelson County Sheriff's Department. Eric Braathen, a deputy for the Nelson County Sheriff's Department, contacted Fred Frederikson, a licensed peace officer and a brand inspector for the North Dakota Stockmen's Association. While driving to Brossart's farm, Braathen and Frederikson saw Brossart pumping water from a field. Braathen introduced Frederikson to Brossart and Frederikson asked about the cattle and whether he could go look at them. According to Braathen, Brossart informed the officers "if you step foot on my property, you are going to not be walking away." The situation quickly escalated, Braathen attempted to arrest Brossart, Brossart resisted, and Braathen used a taser on Brossart multiple times before he was handcuffed. Brossart was charged with failing to comply with the estray chapter and preventing arrest. He appealed his conviction. After review, the Supreme Court concluded that the district court did not give the jury any instructions explaining what constituted a threat and that communications that are not a "true threat" are protected speech. The district court therefore did not correctly and adequately inform the jury of the applicable law and erred by failing to include a jury instruction defining what constituted a "threat." Brossart's terrorizing conviction was reversed and the case remanded for a new trial on that charge. The Supreme Court affirmed in all other respects. View "North Dakota v. Brossart" on Justia Law

Craig and Julie Nelson appealed a judgment quieting title in certain real property in Harry and Linda Chornuk and awarding the Chornuks damages for conversion, and from an amended judgment modifying the damage award. In January 1986, Norman and Mildred Dahl conveyed the property to the Chornuks by warranty deed, but the deed was not recorded until June 24, 2010. On June 17, 2005, after Norman Dahl's death, Mildred Dahl conveyed the same property by warranty deed to the Nelsons as part of the conveyance of approximately 44.5 acres. The deed was recorded on July 5, 2005. In September 2010, the Chornuks sued the Nelsons to quiet title to the property and sought damages for claims of trespass and conversion. The Nelsons moved for summary judgment, arguing they were entitled to judgment as a matter of law and to have title quieted in their favor because they recorded their deed to the property more than five years before the Chornuks recorded their deed. The trial court found the Chornuks mowed the property three or four times per year, planted trees on the property, installed drip irrigation lines for the trees, installed flower boxes on the property and performed other general maintenance. The court found that the Chornuks' actions were sufficient to put a prudent person on notice someone else had an interest in the property and that the Nelsons were required to conduct further inquiry before purchasing the property from Mildred Dahl. The court found the Nelsons had constructive notice of the Chornuks' interest and were not good-faith purchasers. The court awarded the Chornuks $2,830 in damages for trees the Nelsons cut down on the property. The Nelsons moved for reconsideration, arguing the damage award was not supported by the evidence. The court granted the Nelsons' motion. After a hearing, the court ordered the damage award be reduced to $360 and entered an amended judgment. The Nelsons argued the district court erroneously found they did not purchase the property in good faith and erred in quieting title of the property in favor of the Chornuks. Finding no reversible error after its review, the Supreme Court affirmed the trial court. View "Chornuk v. Nelson" on Justia Law

SmartLease USA, LLC was a limited liability company with three principals, Kent Guthrie, Tony Marshall, and Steve Furst, which described itself in a business proposal as an entity seeking "to capitalize on the demand for quality housing [in the Williston Basin] by providing a high quality, exceptionally clean and professionally managed RV/mobile park" in partnership with a landowner. The Abelmanns owned farmland in the Williston Basin. They executed a written agreement to lease approximately 110 acres of their farmland to SmartLease for the stated purpose of "use as a short/long term RV (recreational vehicle), mobile home, cabin units, and truck parking." According to the Abelmanns, SmartLease agreed to develop the leased land into a high quality, clean, and professionally managed full service RV and mobile home park for housing and accommodations for the labor force in northwestern North Dakota. They claimed SmartLease started to develop the land, but thereafter neglected its obligations under the written lease. They claimed SmartLease failed to pay them rent or the security deposits required by the lease and failed to provide proper management for the land. According to them, a property manager hired by SmartLease, Aaron Smith, failed to provide proper on-sight management for the property and eventually quit, which resulted in no on-site management for the property. The Ablemanns claimed they provided SmartLease with written notice of termination of the lease in February 2013, and claimed SmartLease refused to vacate the premises and attempted to transfer the lease to a third party. In May 2013, the Abelmanns served SmartLease with a notice of intention to evict. The Abelmanns appealed the dismissal of their eviction action against SmartLease. The Abelmanns argued the district court erred as a matter of law in construing their written lease with SmartLease and in determining any breaches of the lease by SmartLease were immaterial and of nonessential terms. The Supreme Court agreed, reversed and remanded. The Court concluded the district court erred in interpreting the purpose of the parties' lease and failed to make adequate findings to understand the basis for its decision. View "Abelmann v. SmartLease USA, L.L.C." on Justia Law

Pro se appellant Cody Schmitt appealed a district court's eviction order, arguing service of an amended notice of eviction was insufficient. Schmitt and Lisa Stahlberg resided in a mobile home located on property owned by Rodney and Pamela Schmitt. Stahlberg resided on the property since April 25, 2013, and Schmitt resided on the property prior to that. There was no written lease between the parties. On March 19, 2014, Rodney and Pamela Schmitt sent Cody Schmitt and Stahlberg an amended notice of eviction, directing Cody Schmitt vacate by April 15, 2014, and Stahlberg vacate within three days. Cody Schmitt and Stahlberg did not vacate the property by April 15, 2014. On April 17, 2014, the Pierce County Sheriff's Office served Cody Schmitt and Stahlberg with the notice of intention to evict them from the property. According to the notice of intention to evict, Cody Schmitt and Stahlberg had three days to vacate the property. After three days elapsed, Cody Schmitt and Stahlberg remained on the property. Accordingly, Rodney and Pamela Schmitt started this eviction action requesting the district court order Cody Schmitt and Stahlberg to vacate the property. A hearing was held on the eviction action. On May 2, 2014, the district court issued an Eviction Order requiring Cody Schmitt and Stahlberg vacate the property by May 13, 2014. Cody Schmitt appealed the district court's decision. Having no transcript to review of the district court's evidentiary hearing, the Supreme Court concluded the district court's finding that service of the notice of termination was proper was not clearly erroneous, and affirmed. View "Schmitt v. Schmitt" on Justia Law

Dennis and Charlene Deckert appealed the grant of summary judgment dismissing their action for a declaratory judgment and specific performance of an option to purchase certain Burleigh County real property and quieting title to the property in Margaret McCormick and Judy Hertz. Because the Supreme Court concluded there was no genuine issue of material fact that the Deckerts did not properly exercise the gratuitous option before it was revoked, the Court affirmed the judgment. View "Deckert v. McCormick" on Justia Law