Arnegard v. Arnegard Township

Cameron and Mary Susan Arnegard appealed a trial court judgment relating to a conditional use permit (CUP) obtained from Arnegard Township in McKenzie County, North Dakota. The Arnegards argued the district court erred in granting the Township's motion in limine to exclude a buy-sell agreement; denying their motion to amend their complaint on a due process claim; granting summary judgment dismissing their breach of contract, actual fraud and equitable estoppel claims; dismissing their negligence and deceit claims by directed verdict; and determining no party prevailed in the action. The Arnegards also argued the district court abused its discretion by denying their motion to amend their complaint at trial. The Township cross-appealed, arguing the district court erred in granting judgment as a matter of law in favor of the Arnegards' due process claim. Zoning ordinances and amendments are valid if a township follows the statutory procedures. A conditional use permit does not by itself create a contract between a township and a landowner. A township has no duty to disclose validly enacted zoning ordinances or amendments beyond the notice and filing procedures provided by statute. A claim of constitutional due process violation first requires a protected property interest created by an independent source of law. The North Dakota Supreme Court affirmed the district court regarding dismissal of the Arnegards' breach of contract, actual fraud and equitable estoppel claims. The Court affirmed the judgment regarding directed verdicts in favor of the Township on the negligence and deceit claims. However, the Court reversed the judgment regarding the Arnegards' due process claim and the award of nominal damages, and remanded to the district court for further proceedings. View "Arnegard v. Arnegard Township" on Justia Law