Justia Real Estate & Property Law Opinion Summaries

The dispute arose after a tenant leased a residential property from a management company in West Fargo, North Dakota. After a disagreement involving a pet-related charge, the tenant failed to pay October rent. The management company served a notice to vacate and subsequently obtained a judgment of eviction, which included an early termination fee as specified in the lease. The tenant vacated the property before the end of the lease term and returned the keys. Later, the landlord sent an itemized list of damages and sought recovery for property repairs, as well as rent for the months following the tenant’s departure, despite having received the early termination fee.Upon commencement of a small claims action by the landlord for damages, the tenant removed the case to the District Court of Cass County, East Central Judicial District. The tenant sought summary judgment, arguing that the landlord could not recover both an early termination fee and additional rent, and also contended that the landlord’s failure to timely provide the itemized list of damages should bar recovery. The district court denied summary judgment, held a bench trial, and ultimately ruled that the landlord could not recover both the early termination fee and post-eviction rent. However, the court allowed recovery for property damage, finding that the landlord had reasonable justification to withhold the security deposit despite the untimely itemization, since damages exceeded the deposit. The court awarded damages for repairs as well as attorney’s fees, as the tenant had removed the case from small claims court.The Supreme Court of North Dakota reviewed the case. It affirmed the district court’s rulings, holding that the landlord’s failure to timely provide an itemized statement of damages did not bar recovery, as the tenant was not prejudiced. The court also concluded that the tenant’s arguments regarding unconscionability and attorney’s fees were not properly preserved for appeal. The case was remanded solely for determination of additional attorney’s fees on appeal. View "Meridian Property Management v. Cordie" on Justia Law

The case concerns a failed sale of a bar and restaurant in Bismarck, North Dakota. Neil Galpin, as assignee of Galpin Entertainment, sought to recover a $100,000 earnest money deposit after Cantina Holdings, LLC and Clay Butte Holdings, LLC (the buyers) did not complete the purchase. The parties had executed a confidential offer letter, which required the deposit and stated it would become non-refundable after the buyer’s due diligence period expired, unless the buyer notified the seller of its intent not to proceed before that date. Later, the parties signed a standard form purchase agreement that both incorporated the confidential letter and included a conflicting, pre-printed provision stating that if financing failed after a certain date, the earnest money would be returned to the buyer. The transaction never closed, and Galpin Entertainment ultimately sold the property to someone else.The District Court of Burleigh County, South Central Judicial District, heard the case in a bench trial. The court concluded that the specially drafted provision in the confidential letter, rather than the standard form language in the purchase agreement, controlled the disposition of the earnest money. It found that the buyers did not properly exercise their right to terminate before the due diligence deadline and that Galpin did not breach the contract by failing to negotiate the contract for deed in good faith. Judgment was entered in favor of Neil Galpin for the earnest money, and the buyers’ counterclaims were denied.On appeal, the Supreme Court of the State of North Dakota affirmed the district court’s judgment. The Supreme Court held that, when conflicting contract provisions exist, specially drafted terms control over standard form language, especially where the parties who caused the uncertainty seek to benefit from it. The court also found no clear error in the district court’s finding that Galpin negotiated in good faith. View "Galpin v. Cantina Holdings" on Justia Law

Danielle Nygaard purchased a home in Fargo, North Dakota, with United Savings Credit Union as the mortgagee. Scott Volker recorded a quitclaim deed purporting to transfer the property from Nygaard to himself and initiated eviction proceedings against Nygaard. Volker claimed this action was based on a loan agreement in which he personally guaranteed a loan from Joseph Svobodny to Nygaard, and that Nygaard failed to repay the loan. Nygaard denied executing the quitclaim deed or the loan agreement, asserting the $40,000 was a gift. She brought a quiet title action against Volker, later amending her complaint to include Svobodny and the Credit Union, and alleged fraud, slander of title, and abuse of process.The District Court of Cass County, East Central Judicial District, presided by Judge Reid A. Brady, managed the case. Nygaard sought discovery of Volker’s electronic devices and accounts, suspecting document alteration. Volker resisted discovery and his attorney withdrew, citing ethical concerns after Volker instructed him not to disclose material subject to the court order. The court issued orders compelling discovery and warned of sanctions for noncompliance. Volker repeatedly failed to comply, leading the court to strike his and Svobodny’s pleadings. Nygaard moved for default judgment and was awarded title to the property, damages, and substantial attorney’s fees. The court also imposed Rule 11 sanctions on Volker for presenting pleadings lacking evidentiary support.On appeal to the Supreme Court of the State of North Dakota, Volker challenged the findings of forgery, the sanctions, and the default judgment. The Supreme Court held that Volker failed to timely respond or preserve his arguments regarding sanctions and forgery. Importantly, Volker did not move to vacate the default judgment under Rule 60(b), limiting appellate review to irregularities on the face of the judgment, none of which were found. The Supreme Court affirmed the judgment and all associated orders. View "Nygaard v. Volker" on Justia Law

Several trusts owned by the Garaas family hold mineral interests in McKenzie County, North Dakota. Petro-Hunt, L.L.C. operates a well on these lands, which are subject to two distinct spacing units created by orders of the North Dakota Industrial Commission (NDIC): a base unit and an overlapping unit. NDIC issued an order allocating production from the well in the overlapping unit to Section 20, which is part of the base unit but not wholly contained within the overlapping unit. This allocation reduced the Trusts’ royalty interests, prompting them to seek declaratory relief and damages.The Trusts first brought their claims in the District Court of McKenzie County, but the court dismissed the case. The North Dakota Supreme Court affirmed the dismissal, holding that the Trusts were required to exhaust administrative remedies before the NDIC. Subsequently, Petro-Hunt applied to NDIC for clarification on production allocation, and NDIC issued Order No. 33453, allocating production from the overlapping unit to the base unit. The Trusts appealed NDIC’s order to the district court, which affirmed NDIC’s order. The Trusts then appealed to the North Dakota Supreme Court.The Supreme Court of North Dakota held that NDIC had legal authority under statute to allocate oil and gas production among spacing units. However, the court concluded that NDIC did not regularly pursue its authority because it failed to follow proper procedures, including providing notice and opportunity to participate to all affected interest owners. As a result, the Supreme Court reversed the district court’s judgment and vacated NDIC Order No. 33453. The request for attorney’s fees by the Trusts was denied, as the record did not show NDIC acted without substantial justification. View "Garaas v. NDIC" on Justia Law

This case concerns a dispute among siblings regarding the partition of farmland in Grant County, North Dakota, originally owned by their parents. After the parents conveyed the land to their children as tenants in common, reserving life estates, four siblings transferred their interests into a family trust in 2017, leaving Bryan Tischmak as the sole sibling outside the trust. In 2022, the trust entered into an agreement for rock, sand, and gravel extraction on portions of the property. Bryan initiated a partition action in 2023, seeking division of the land and an accounting of income.The District Court of Grant County, South Central Judicial District, presided over a bench trial, during which the parties stipulated to the appointment of a referee to recommend partition options. Bryan advocated for an option that would award him sections including the family homeplace, but the court adopted a different recommendation (Recommendation 5), granting him the S1/2 of Section 33 and the NW1/4 of Section 34, and ordering the trust to pay him a sum based on the property’s value and his share of land income. The court later corrected a clerical mistake that had mistakenly awarded Bryan all of Section 33 instead of the S1/2, and denied Bryan's motions to alter or amend the judgment.On appeal, the Supreme Court of North Dakota reviewed whether the district court abused its discretion in adopting the referee’s recommendation, correcting clerical errors, and calculating Bryan’s share of income and expenses. The Supreme Court held that the district court did not abuse its discretion and that its findings were not clearly erroneous. However, the Supreme Court modified the judgment to require the trust to reimburse Bryan $2,417.20 for certain trust-exclusive expenses. The judgment was otherwise affirmed as modified. View "Tischmak v. Theurer" on Justia Law

James and Tahnee Young executed a promissory note and mortgage on property in Fargo, North Dakota, in 2016, originally with The Mortgage Company, Inc., and naming Mortgage Electronic Registration Systems, Inc. as nominee. In July 2022, MidFirst Bank became the holder of the note. After the Youngs stopped making payments, with the last payment in February 2023, MidFirst initiated foreclosure proceedings. In response, the Youngs filed counterclaims alleging fraudulent misrepresentation (based on alleged “robo-signing” or forgery in the assignment of the mortgage), various federal statutory violations, unjust enrichment, coercive collection practices, and constructive fraud.The District Court of Cass County, East Central Judicial District, granted summary judgment in favor of MidFirst Bank and denied the Youngs’ motion for summary judgment. The court found that the Youngs lacked standing to challenge the mortgage assignment because they were not parties to the assignment contract and, therefore, could not claim injury from any alleged fraud in the assignment. The district court also ruled against the Youngs on their federal law claims, finding some barred by res judicata and others lacking proof of damages. Additionally, the court denied their request for audio recordings of hearings, stating the transcript was the official record.On appeal, the Supreme Court of North Dakota reviewed the grant of summary judgment de novo. The court agreed that the Youngs lacked standing to challenge the assignment of the mortgage and that MidFirst Bank, as holder of the note, was entitled to foreclose as a matter of law. The court found no evidence of judicial bias or error in the denial of audio recordings that would have affected the outcome. The Supreme Court affirmed the district court’s judgment, holding that any error in denying access to audio recordings was harmless and that summary judgment for MidFirst was proper. View "MidFirst Bank v. Young" on Justia Law

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