Justia North Dakota Supreme Court Opinion Summaries

Wayne Munson appealed a district court judgment granting Indigo Acquisition Holdings’ (IAH) motion for judgment on the pleadings. In 2009, Munson and other employees of Indigo Signworks entered into an agreement to participate in a Stock Appreciation Rights (SAR) program rather than receive bonuses. Under the program, Munson would be paid for his SARs if Indigo Signworks was sold. In 2016, IAH, a Delaware corporation, purchased Indigo Signworks. Munson and other employees participating in the SAR program were paid for their SARs and had the opportunity to reinvest in IAH’s membership units. In 2016, Munson purchased 12,500 Class A Units of IAH. In July 2018, Munson left his employment at Indigo Signworks to begin a competing sign company. IAH alleged this new business violated Munson’s obligations under IAH’s Amended LLC Agreement and filed suit in Delaware. In September 2018, Munson served IAH with a complaint seeking to void his purchase of the IAH Units. Munson argued the IAH Units he purchased were unexempt, unregistered securities under the North Dakota Securities Act. The North Dakota Supreme Court concluded the transaction at issue was exempt under the North Dakota Securities Act, and affirmed. View "Munson v. Indigo Acquisition Holdings, LLC, et al." on Justia Law

The Rodenburg Law Firm appealed a judgment dismissing its action against Kathy Sira, Mikhail Usher, and the Usher Law Group, P.C., for malicious prosecution, abuse of process, and exemplary damages. Sira initiated a Fair Debt Collection Practices Act (“FDCPA”) action against Rodenburg in New Jersey federal court, alleging Rodenburg, a North Dakota law firm, engaged in harassment and abusive debt collection tactics and violated 15 U.S.C. 1692 et. seq. Sira’s action was ultimately dismissed by agreement of the parties. After the dismissal of Sira’s action, Rodenburg sued Sira and her attorney, Usher and the Usher Law Group, in this action, alleging malicious prosecution. Rodenburg subsequently amended its complaint to include claims for abuse of process and exemplary damages. After a bench trial, the district court dismissed Rodenburg’s claims. The court found Sira lived in New Jersey, her allegations in the federal FDCPA action stated a claim for relief, and her allegations were based on reasonable trustworthy information made after a reasonable inquiry under the circumstances. The court found Sira’s lawsuit was not for an improper purpose and was not an abuse of process. The court also found her lawsuit was not a malicious prosecution because there was probable cause for the action and there was no malice. The North Dakota Supreme Court concluded the district court did not clearly err in dismissing Rodenburg’s claims for abuse of process and malicious prosecution. View "Rodenburg Law Firm v. Sira, et al." on Justia Law

Amanda Dockter appealed an order revoking her probation. Dockter was initially charged with corruption or solicitation of a minor in Eddy County, North Dakota. In November 2017, the State amended the charge against Dockter to include abuse or neglect of a child, a class C felony. On November 9, 2017, Dockter pled guilty in Eddy County to the child neglect charge and was committed to the Department of Corrections and Rehabilitation for a term of one year and one day with 336 days suspended and placed on supervised probation for a period of five years. Dockter was ordered to report to the Stutsman County Correctional Facility for the period of confinement on January 1, 2018. She finished serving her 30-day jail sentence on the child neglect charge on January 28, 2018. In January 2019, Dockter’s probation officer petitioned to revoke her probation, alleging she had tested positive for methamphetamine on November 30 and December 22, 2017, and was convicted of five other criminal charges in Stutsman County on January 14, 2019, including child neglect and felon in possession of a firearm. At a February 14, 2019 probation revocation hearing, Dockter admitted she engaged in the conduct alleged in the petition to revoke and argued about the disposition. The district court found she violated the conditions of her probation. The court issued an order revoking her probation and committing her to the Department of Corrections and Rehabilitation for one year and one day with credit of 31 days for time served with supervised probation for five years. The North Dakota Supreme Court affirmed the order and remanded to the court to correct the period of supervised probation from five years to three years as required by N.D.C.C. 12.1-32-06.1(2). View "North Dakota v. Dockter" on Justia Law

Andrea and Kevin Martin appealed a district court judgment ordering the removal of a fence on their property after finding the fence violated restrictive covenants recorded against the property. The Martins argued the restrictive covenants did not apply to their property because they agreed to purchase the property before the covenants went into effect. They also claimed the restrictive covenants were unconscionable. Finding no reversible error, the North Dakota Supreme Court affirmed. View "Wachter Development, Inc. v. Martin, et al." on Justia Law

Jack Robinson appeals from a district court judgment affirming a Workforce Safety and Insurance (“WSI”) order finding Robinson personally liable for any unpaid workers’ compensation premiums, penalties, interest, and costs owed by Dalton Logistics, Inc. (“Dalton”). Robinson argues WSI failed to properly serve him with the administrative order resulting in a lack of personal jurisdiction and that his due process rights were violated. The North Dakota Supreme Court found the ALJ failed to make any findings of fact to support its conclusion that Robinson’s motion to dismiss be denied as a matter of law. It therefore reversed the judgment of the district court and remanded to the agency for further proceedings. View "Robinson v. WSI" on Justia Law

Workforce Safety and Insurance (“WSI”) appealed a judgment affirming an administrative law judge’s (“ALJ”) decision that John Sandberg sustained a compensable injury because his repetitive work activities substantially worsened the severity of his preexisting degenerative disc condition. The North Dakota Supreme Court concluded the ALJ’s findings were not sufficient to understand the basis for the decision. The decision was reversed and the matter remanded for further proceedings. View "WSI v. Sandberg, et al." on Justia Law

Bad Habit Trucking LLC owned a 1996 Peterbilt truck. Great West Casualty Company insured the truck. Dusty Weinreis, a member of Bad Habit Trucking LLC, took the truck to Butler Machinery Company for service work. The truck was destroyed by fire after the service work was completed but before Weinreis paid for the services. Great West paid Bad Habit Trucking $85,000 for the loss of the truck in accordance with the insurance policy. In November 2017 Butler sued Weinreis in small claims court for the unpaid service work. Weinreis counterclaimed in small claims court for the statutory maximum, $15,000, alleging loss of use of the truck, lost profits, cost to repair and replace the truck, and loss of personal property. Prior to the small claims hearing Butler moved to dismiss the case without prejudice. Weinreis resisted the motion, and a small claims hearing took place in 2018. The court awarded Butler $8,041.57 for the unpaid service work and awarded Weinreis $15,000 for lost profits. Offsetting the recoveries resulted in a net award to Weinreis of $6,958.43. In June 2018 Great West sued Butler in district court for $81,753.32 for the loss of the truck plus interest and costs. Butler moved to dismiss under N.D.R.Civ.P. 12(b)(6), arguing the case was fully decided in small claims court when Weinreis sued Butler for loss of the truck. The district court granted Butler’s motion to dismiss because the issue stemmed from the same transaction or occurrence, and found Great West should have filed a claim for damages in the small claims action. Great West moved to reconsider on the basis that Weinreis was the defendant in the small claims action, not Great West or Bad Habit Trucking. Great West argued privity did not exist between Weinreis in his personal capacity and Great West as the insurance company for Bad Habit Trucking. The district court denied the motion to reconsider. The North Dakota Supreme Court found the district court erred in dismissing Great West's claim, and reversed and remanded for further proceedings. View "Great West Casualty Company v. Butler Machinery Company" on Justia Law

Brianna McLaen appealed an order granting Tyson Hall’s petition for an elective share of the Estate of Kandi Ann Hall. McLaen argued the district court erred by determining Tyson Hall could claim an elective share of Kandi Hall’s intestate estate and by deciding a warranty deed for certain real property was void. The North Dakota Supreme Court concluded a surviving spouse may claim an elective share of an intestate estate under N.D.C.C. 30.1-05-01, but the court erred in determining ownership of the real property. The matter was reversed and remanded for further proceedings. View "Estate of Hall" on Justia Law

Ronald Smithberg appealed a judgment ordering Smithberg Brothers, Inc., to purchase his interest in the family farm corporation for $169,985 and dismissing on summary judgment his other claims against the corporation and its remaining shareholders, Gary and James Smithberg. After review, the North Dakota Supreme Court concluded Ronald Smithberg raised genuine issues of material fact regarding his claims against the corporation and Gary and James Smithberg, and the district court erred in granting summary judgment dismissing those claims. The court’s valuation of Ronald Smithberg’s interest in the corporation was reversed because his interest could not be valuated until his derivative claims on behalf of the corporation were resolved. View "Smithberg v. Smithberg, et al." on Justia Law

Ross Thomas appealed after a jury found him guilty of terrorizing, a class C felony. Trial started on March 28, 2018. The following day, the State and defendant rested, and the case was submitted to the jury. At the end of the day, the jury sent a note to the court stating they had reached a decision on three counts, were hung on one count, and no further progress would be made. The court admonished the jury and ordered them to return on the following Monday, April 2, after a holiday weekend, to continue deliberations on the remaining count. On April 2, 2018, the jury reconvened to continue its deliberations. Before the jury reconvened, however, Thomas’s counsel raised specific allegations to the district court that Thomas had overheard non-jurors discussing the content of jury deliberations and juror decisions in a public setting in town. The court did not conduct a hearing on Thomas’s allegations at that time but stated it would “let [Thomas] challenge any verdict made in a subsequent motion after there’s notice and opportunity for both parties to be prepared.” After further deliberation, the jury subsequently returned not-guilty verdicts on the aggravated assault and reckless endangerment charges and returned a guilty verdict on the terrorizing charge. The jury could not reach a unanimous verdict on the felonious restraint charge, and the court declared a mistrial on that charge. The district court sentenced Thomas on the terrorizing charge, and a criminal judgment was entered.The North Dakota Supreme Court concluded the district court erred in denying Thomas a hearing on alleged juror communications with non-jurors, which were discovered and brought to the court’s attention while the jury was deliberating and were alleged to be related to matters on which the jury had deliberated and the jury’s decisions. The matter was remanded for a new trial. View "North Dakota v. Thomas" on Justia Law