Justia North Dakota Supreme Court Opinion Summaries

Brett Kingstone and Trisa Tedrow Kingstone were married in Florida in July 2020 and have one minor child, L.R.K., born in 2021, who has hemophilia, Fragile X syndrome, and developmental and speech delays. The couple separated in August 2022, and Brett initiated a divorce action in Florida and a child custody action in North Dakota in March 2023. The Florida court granted the divorce in August 2023, but did not address child-related issues. In December 2023, the North Dakota district court awarded Trisa primary residential responsibility for L.R.K. and set Brett's child support at $5,000 per month, including an upward deviation of $1,500.Brett Kingstone appealed, arguing the district court erred in several aspects, including reliance on expert testimony, calculation of his net income, the upward deviation of child support, and refusal to amend the judgment. The district court had denied Brett's motion to amend the judgment but clarified the exchange location for L.R.K. would be at the child's home unless mutually agreed otherwise.The North Dakota Supreme Court reviewed the case. It held that the district court did not abuse its discretion in relying on the expert witness to determine Brett's income, including income from irrevocable trusts and recurring capital gains. However, the Supreme Court found the district court's findings insufficient to support the upward deviation in child support under the guidelines and remanded for additional findings and redetermination. The Supreme Court also directed the district court to reconsider the amount of the life insurance policy based on the redetermined child support obligation. The court affirmed the district court's decision regarding the exchange provisions for L.R.K. and the requirement for Brett to maintain a life insurance policy for the child. View "Kingstone v. Kingstone" on Justia Law

The case involves the distribution of trust assets following the death of the surviving trustor, G.I.C. The trust agreement initially provided for specific distributions of farmland to the trustors' five children. However, the land was sold to fund the trust before its termination, leading to a dispute over how the remaining liquidated assets should be distributed. Luke, one of the beneficiaries, argued that the assets should be distributed proportionately to the value of the specific land parcels each beneficiary would have received. The trustee, Bremer Trust, and Luke’s siblings contended that the assets should be distributed equally among the beneficiaries.The District Court of Sargent County, Southeast Judicial District, initially ordered an equal distribution of the liquidated assets among the five children. This decision was based on the interpretation that the trust agreement reflected an overall intent to treat the beneficiaries equally, despite the specific land distributions being impossible due to the sale of the land.The North Dakota Supreme Court reviewed the case and reversed the district court's decision. The Supreme Court held that the trust agreement's primary intent was to provide for the trustors' care and support during their lifetimes, with a secondary intent to distribute specific parcels of land to the children upon the trust's termination. The court found that the most consistent interpretation with the trustors' intent was to distribute the remaining trust assets proportionately to the value of the specific land distributions each beneficiary would have received. The case was remanded for redistribution of the trust assets in accordance with this interpretation. View "Guardianship and Conservatorship of G.I.C." on Justia Law

Jared Peterka, a neighbor and tenant of John and Irene Janda, assumed the lease of their farmland in 2012. The lease was renewed every three years, and in 2019, a right of first refusal for Peterka to purchase the land was added. In October 2018, the Jandas established a living trust and conveyed the property into it, with their daughters as residuary beneficiaries. In June 2021, the Jandas and Peterka executed an option to purchase the property. Shortly after, guardianship proceedings were initiated, and the Jandas were found incapacitated. The guardians rescinded the option to purchase.Peterka filed a complaint for declaratory judgment to validate the option to purchase. The Defendants counterclaimed, arguing the option was the result of undue influence and that the Jandas lacked capacity. After a four-day bench trial, the District Court of Traill County found the option to purchase was facially valid and not a product of undue influence. However, it ruled the option was voidable under N.D.C.C. § 14-01-02 due to the Jandas' lack of capacity and dismissed Peterka’s complaint.The North Dakota Supreme Court reviewed the case. Peterka argued the district court erred in its findings on capacity. The Supreme Court clarified that the capacity to enter into a contract and the capacity under N.D.C.C. § 14-01-02 are distinct. The court found the district court did not misstate the law and its findings were supported by evidence. The Supreme Court affirmed the district court’s judgment, holding that the option to purchase was voidable under N.D.C.C. § 14-01-02 due to the Jandas being of unsound mind but not entirely without understanding. View "Peterka v. Janda" on Justia Law

Randall Moe executed a Last Will and Testament in 1989, shortly after ending a relationship with Cynthia Almer. The will included provisions to bequeath all his property to Almer, with a contingent bequest to his daughter, Amanda Miller, if Almer predeceased him. Moe also designated Almer as the guardian for Miller and the personal representative of his estate. Moe passed away in July 2022, and Miller was appointed as the personal representative of his estate. Almer later filed a petition for formal probate and to set aside Miller’s appointment, while Miller sought to reform the will to reflect Moe’s intent to pass his estate to her.The District Court of Williams County held a bench trial and found the will valid and enforceable but concluded it was affected by a mistake of law or fact. The court reformed the will to state that Almer would hold Moe’s property in trust for Miller if she was a minor at the time of his death, otherwise, the property would go to Miller outright. The court also appointed Miller as the personal representative of the estate.The Supreme Court of North Dakota reviewed the case and found that the district court erred in its findings. The Supreme Court concluded that the will was not inconsistent and that the extrinsic evidence considered by the district court did not relate to Moe’s intent at the time he executed the will. The Supreme Court held that the district court misapplied the law by considering post-execution evidence unrelated to Moe’s intent when he executed the will. Consequently, the Supreme Court reversed the district court’s judgment reforming Moe’s will. View "Estate of Moe" on Justia Law

In December 2021, the Ward’s adult son petitioned for an emergency guardianship, alleging the Ward was incapacitated. The district court denied the ex parte appointment but later appointed the son as the emergency guardian. The Ward and his son stipulated that the Ward required a limited guardian and a conservator, leading to the appointment of Lutheran Social Service of Minnesota (LSS) as the limited guardian and First Western Bank as the conservator. The limited guardianship was set for one year, and the conservatorship for five years.Before the guardianship expired, the district court extended it and reappointed Dr. Swenson as an expert examiner. The Ward petitioned for termination of the guardianship, supported by LSS and the guardian ad litem. At the review hearing, the court presented evidence from Dr. Swenson and others. The court concluded the Ward failed to make a prima facie case for termination and extended the guardianship for two more years. The Ward appealed, and LSS stipulated that the guardianship should be terminated.The North Dakota Supreme Court reviewed the case and found that the district court erred in reappointing Dr. Swenson as an expert examiner, as the statute did not authorize such an appointment in termination proceedings. The court concluded that the Ward had established a prima facie case for termination and that there was no clear and convincing evidence showing the Ward remained incapacitated. The Supreme Court reversed the district court’s order and terminated the limited guardianship. View "Guardianship and Conservatorship of K.H.P." 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

Duane Durr, diagnosed with mild cognitive impairment, appointed his step-daughter, Dawn Volden, as his attorney-in-fact in 2017, granting her broad discretion over his assets. Volden used Durr’s credit cards and checking account for various expenditures, some of which Durr later claimed were unauthorized. Durr filed a lawsuit against Volden in 2021, alleging she breached her fiduciary duties and seeking an accounting of her spending.The District Court of Cass County held a three-day bench trial in May 2023. The court found that while Volden owed Durr a fiduciary duty, the evidence was insufficient to prove she breached that duty. The court noted that some transactions seemed suspect but concluded that most were permitted under the power of attorney. The court dismissed Durr’s claims, finding he failed to prove Volden’s actions constituted willful misconduct or gross negligence.The North Dakota Supreme Court reviewed the case and found that the district court erred by not applying the presumption of undue influence, which should be applied to transactions between parties in a confidential relationship, such as an attorney-in-fact and their principal. The Supreme Court held that Durr had met his burden by showing suspicious transactions and unaccounted-for withdrawals, shifting the burden to Volden to disprove the presumption of undue influence. The court reversed the district court’s judgment and remanded the case for further proceedings consistent with its decision, requiring the lower court to apply the correct legal standard and burden shift. View "Durr v. Volden" on Justia Law

This case involves a legal malpractice claim brought by Anne Fahey, Timothy Fife, and Richard Fife (Plaintiffs) against their former attorneys, Andrew Cook, Lukas Andrud, and Ohnstad Twichell, P.C. (Defendants). The claim stems from Defendants' representation of Plaintiffs in a previous case concerning the distribution of their mother's estate. The mother, Marianne Fife, owned a mineral interest in North Dakota and was a resident of Idaho when she died intestate. She had conveyed her mineral interest to her husband, Richard Fife, shortly before her death. Plaintiffs sued their father's estate, claiming their mother lacked capacity to execute the deed due to medication and undue influence from their father. The district court rescinded the deed but held that the mineral interest still passed to Richard Fife under North Dakota's intestate succession laws.The district court's decision was affirmed on appeal. Plaintiffs then initiated a malpractice action against Defendants, alleging negligence in the underlying litigation by failing to contest the validity of a quitclaim deed for their mother's interest in an Idaho home and failing to argue that their mother's estate had a cause of action against their father's estate. Plaintiffs claimed that if Defendants had taken these actions, the value of their mother's estate would have increased, and they would have received some of the minerals under intestate succession laws.The district court granted summary judgment in favor of Defendants, concluding that they did not breach their duty to Plaintiffs and that Plaintiffs did not suffer damages caused by the alleged breach of duty. The court reasoned that even if Plaintiffs had successfully taken the suggested actions, they still would not have received their mother's mineral interests.On appeal, Plaintiffs argued that the district court erred in granting summary judgment on their legal malpractice claims. They contended that the court erred in concluding that their mother's estate, for valuation and distribution purposes, did not include real or personal property outside of North Dakota. They also argued that Defendants were collaterally estopped from arguing that their mother's interest in the Idaho home and personal property would never be part of the estate.The Supreme Court of North Dakota affirmed the district court's judgment. The court concluded that the district court did not err in holding that collateral estoppel does not apply in this case. The court also held that the district court correctly concluded that the Idaho home would not have been part of the mother's North Dakota intestate estate because it was community property and would have passed to the father as a matter of law. Therefore, the court found that Defendants' alleged failure to challenge the Idaho quitclaim deed's validity and argue that the mother's estate had a cause of action against the father's estate did not proximately cause Plaintiffs any damages. View "Fahey v. Cook" on Justia Law

The case revolves around the estate of Merle Almer, who passed away in 2016. Almer owned a construction business and a farm, and his will named his daughter, Linda Moe, as the personal representative. The will contained bequests to various individuals, including a life estate in the farm and farming assets to Casey Almer, Merle Almer's grandson. The will also directed the personal representative to use harvested and unharvested grain to pay costs of administration and taxes for the estate. However, at the time of Merle Almer's death, the grain discovered in his grain bins was less than expected, leading to a dispute between the personal representative and Casey Almer.The dispute led to a lawsuit, where the personal representative accused Almer of conversion of grain and other farm assets. Almer counterclaimed with allegations of conversion and breach of fiduciary duty. The counterclaims were dismissed, and a jury found that Almer did not convert property. Almer then filed a petition alleging that the personal representative breached her fiduciary duties. The district court heard testimony and took evidence over five days.The Supreme Court of North Dakota affirmed the district court's decision. The court found that the personal representative did not breach her fiduciary duties while administering the estate. The court also found that the will's abatement provisions were ambiguous due to the will's nonstandard use of the term "specific devise." The court made findings concerning the testator's intent based on testimony from the attorney who prepared the will. The court denied Almer's application for surcharge, granted the personal representative's motion to approve final distribution, and approved approximately $760,000 in attorney’s fees. Almer appealed, challenging the court's interpretation of the will, the court’s findings concerning the personal representative’s conduct during administration, and the court’s approval of attorney’s fees. The Supreme Court affirmed the judgment. View "In re Estate of Almer" on Justia Law

In this case, Jonathan Garaas and David Garaas, serving as co-trustees of multiple family trusts, appealed a dismissal of their complaint against Petro-Hunt, L.L.C., an oil company operating on land in which the trusts own mineral interests. The trusts claimed that Petro-Hunt had decreased their royalty interest without proper basis and sought both a declaratory judgment affirming their higher royalty interest and damages for underpayment. The district court dismissed the complaint without prejudice, stating that the trusts had failed to exhaust their administrative remedies before the North Dakota Industrial Commission.The North Dakota Supreme Court affirmed the lower court's decision, stating that the trusts needed to exhaust their administrative remedies before bringing their claims to the court. The court reasoned that the issues raised by the trusts involved factual matters related to the correlative rights of landowners within the drilling unit, which fall within the jurisdiction of the Industrial Commission. The court held that the commission should first consider these issues, make findings of fact, and develop a complete record before the case proceeds to the district court. It further noted that, after exhausting their administrative remedies, the trusts could then bring an appropriate action for declaratory relief or damages in district court. View "Garaas v. Petro-Hunt" on Justia Law