Justia Real Estate & Property Law Opinion Summaries

The North Dakota Department of Transportation (the "DOT") took G. John Schmitz's property through an eminent domain quick-take action. The DOT deposited $973,380.00 with the Williams County Clerk of Court for the taking. Schmitz disputed the amount and timely served a notice of appeal. In September and October of 2014, the parties attempted unsuccessfully to reach a settlement. Jury trial was set for September 30, 2015. Schmitz had trouble locating expert witnesses and asked for a continuance. The parties stipulated to the continuance, and the court reset trial for January 24, 2017. Schmitz located three expert witnesses before trial: Scott Bechtle, an architect, provided Schmitz with hypothetical development concepts for the property; Robert Strachota, a Minneapolis-based appraiser, offered opinions of land value and severance damages; and Dan Leirness, a Fargo-based appraiser, offered an opinion of land values. After trial Schmitz requested $263,866.97 in attorney fees, $154,172.12 in expert fees and $17,224.31 in litigation costs for a total of $567,317.36. The DOT contested the fees and costs. The district court awarded $137,347.50 in attorney fees, $35,930.96 in expert fees and $8,027.38 in litigation costs for a total of $181,305.84. Schmitz appealed. The North Dakota Supreme Court affirmed in part, reversed in part, and remanded, finding the district court did not abuse its discretion in reducing Schmitz's attorney or expert fees, but abused its discretion in reducing and eliminating certain litigation costs. The judgment was reversed regarding those litigation costs, and the matter remanded for further proceedings. View "N.D. Dep't of Transportation v. Schmitz" on Justia Law

Stephanie Lee appealed a judgment evicting her, and any other person or persons claiming under her, from her Williston premises and awarding IRET Properties ("IRET") $880.00 for attorney's fees and costs. Lee argued IRET failed to perform all the prerequisites under N.D.C.C. ch. 47­32 in order to bring an eviction action against her, and therefore, she was unlawfully evicted. Lee further argued the district court failed to make sufficient findings on the issue of default and the district court improperly awarded IRET attorney's fees and costs. After review, the North Dakota Supreme Court concluded IRET properly brought an eviction action against Lee for failure to pay rent and the district court's findings were sufficient to sustain its conclusions. View "IRET Properties v. Lee" on Justia Law

Linda Nelson, Jill Mattson, Jeffrey Mattson, and Joan Louise Mattson appealed the district court's judgment quieting title to property in the Steven R. Mattson Living Trust and the Roald F. Mattson Living Trust (the "Trusts"), and awarding damages to Steven R. Mattson, the Steven R. Mattson Living Trust, and the Roald F. Mattson Living Trust (collectively, the "Mattsons"). Because the joint tenancy between Leif, Alf, and Roald Mattson was not severed prior to Leif Mattson's death, the North Dakota Supreme Court found the district court did not clearly err by quieting title to property in the Trusts. Further, the district court did not clearly err by awarding damages to the Trusts for the oil and gas lease payments under a theory of conversion. However, the district court erred by awarding damages to Steven Mattson for the amount he paid to Leif's heirs for the purported interest they owned in the surface of the property because unjust enrichment was unavailable and the voluntary payment doctrine applies. Therefore, the Court affirmed in part and reversed in part. View "Nelson v. Mattson" on Justia Law

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

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

Leon Pfingsten appealed a district court order granting Owego Township's motion to dismiss an appeal. In 2015, several Owego Township residents petitioned for alteration of what was known as Bagoon Road. In April 2015 the Township sued Pfingsten to have that portion of Bagoon Road on Pfingsten's property declared a public road by prescriptive easement, to prevent Pfingsten from claiming any adverse interest in the road and to have damages awarded for Pfingsten's intentional injury to the road. The Township also sought access to Pfingsten's property for surveying. Pfingsten counterclaimed for trespass. The district court entered a stipulated order providing that the Township had the right to survey Pfingsten's land before December 31, 2016 and, upon completion of the survey, the Township would proceed with a taking action. The district court stayed the action until December 31, 2016. On September 26, 2016, the Township acted on the March 2015 petition and adopted and filed with the Township Clerk an order to alter highway and a statement of damages. The order to alter highway changed the location of Bagoon Road on Pfingsten's property; the statement of damages valued Pfingsten's two acres at $9,000. Pfingsten did not appeal the Township's award of damages. On December 3, 2016 the Township adopted a confirmation of order to alter highway and confirmation of statement of damages. On December 22, 2016 Pfingsten received a $9,000 check from the Township. He appealed to the district court on January 19, 2017. The Township moved to dismiss the appeal. The district court ruled that Pfingsten's appeal was untimely under N.D.C.C. sections 24-07-22 and 28-34-01 and granted the Township's motion to dismiss the appeal. Pfingsten argued on appeal to the North Dakota Supreme Court the district court erred by concluding his appeal was untimely. Finding no error, the Supreme Court affirmed: a township's determination or award of damages must be appealed within thirty days of filing under N.D.C.C. Sections 24-07-22 and 28-34-01. View "Owego Township v. Pfingsten" on Justia Law

Steve Forster, Daniel Krebs, and Debra Krebs (collectively "Forster/Krebs") appealed the dismissal of their claims against B&B Hot Oil Service, Inc., and JB's Welding. Forster/Krebs argued the district court erred in construing language in a lease agreement with B&B Hot Oil as a waiver of their claims against B&B Hot Oil for damages to their building and property and to preclude a subrogation claim by their insurer, Acuity, against B&B Hot Oil. Forster/Krebs also argued the district court improperly granted summary judgment dismissing their claims against JB's Welding for concerted action and a joint venture. B&B Hot Oil leased one-half of a building owned by Forster/Krebs and used the leased property to store two hot oil trucks. An explosion in January 2010, destroyed the building and its contents and damaged surrounding property. The alleged cause of the explosion was a propane leak from one of the hot oil trucks, which has been referred to by the parties as a "knock off" truck built through "reverse engineering" by B&B Hot Oil with assistance from JB's Welding. The North Dakota Supreme Court concluded a stipulation to dismiss Forster/Krebs' other remaining claims against JB's Welding without prejudice did not make the judgment final for purposes of appellate jurisdiction, the Court dismissed the appeal. View "James Vault & Precast Co. v. B&B Hot Oil Service, Inc." on Justia Law

Winnie Development, LLLP appealed a district court judgment holding it had no interest in a parcel of land in the City of Horace. This litigation arose after Winnie sought access over Parcel 1 to reach an adjacent 1.6-acre piece of land ("Parcel 2"). Parcel 2 was not in the Orth-Golberg Second Addition. It sat between the Sheyenne River and several other privately owned lots in the subdivision. Parcel 2 could be accessed only via Parcel 1, crossing the Sheyenne River or crossing privately owned property in the subdivision. Winnie brought this action to quiet title in Winnie to both Parcel 1 and Parcel 2, to declare an easement by necessity in Winnie's favor over Parcel 1, or to reform the plat and declare Parcel 1 dedicated to the public subject to access rights not inconsistent with the plat's "City Dike Access." Some defendants owning land in the vicinity of Parcel 1 made no answer to Winnie's complaint. One defendant answered but did not otherwise litigate the issues. The district court ultimately entered judgment barring these defendants from further claiming any interest in Parcel 1. Stephanie and Benjamin Hendricks owned the property immediately south of Parcel 1. The Hendricks counterclaimed against Winnie, arguing they owned all or part of Parcel 1 and Winnie was trespassing on their property by using Parcel 1 to access Parcel 2. The district court rejected both of the Hendricks's counterclaims. None of the parties contested Winnie's claim to Parcel 2, and the district court quieted title in Winnie to that property. The City of Horace also answered and counterclaimed, alleging it had an interest in Parcel 1 to access City dikes. The district court subsequently granted the City's motion for summary judgment, holding the City has a right to use Parcel 1 to access the City's dikes regardless of ultimate disposition of the property. The court found the designation of Parcel 1 as "City Dike Access" divested Mary Lou Orth of any title, and thus the quitclaim deed Winnie obtained from her in 2014 conveyed no interest. The district court also found Winnie failed to meet its burden of proof establishing an easement by necessity, and found Winnie incorrectly claimed an easement over the land of a third party. Winnie argued it had a legal interest allowing access to its property adjacent to the disputed parcel. The North Dakota Supreme Court reversed and remanded to the district court for entry of judgment, providing that Winnie held fee title to the disputed parcel subject to the City's access rights. View "Winnie Development, LLLP, v. Reveling" on Justia Law

James and Carol Miller appealed the quieting of title to certain real property in favor of Julie Sauter. The Millers argued the district court erred in finding Sauter acquired ownership of the disputed property by adverse possession, finding the boundary of the property was established by acquiescence, finding the Millers breached their contract and trespassed on Julie Sauter's property, and awarding Julie Sauter attorney's fees. Prior to taking ownership in 2013, the Miller property was owned by Kurt and Katina Heinrich. In 2012, Julie Sauter and the Heinrichs entered into a grazing lease for a two-year period expiring in 2014. However, before the lease expired, the Heinrichs sold their property to the Millers and no longer had use for the Sauter property. The Millers did not have the property surveyed prior to the purchase. Julie Sauter allowed the Heinrichs to sublease the land to the Millers for the 2013 grazing year. For the 2014 grazing season, Julie Sauter and the Millers entered into a new lease. In 2013, the Millers wanted to drill a water well on their property which required the land to be surveyed. The survey revealed the Original fence did not follow the actual boundary line of the two properties. The Millers tore down the Original fence, constructed a new fence on the surveyed boundary line, and drilled a water well on the disputed property. The right to ownership of land and passage of title, as a consequence of adverse possession or acquiescence, occur when the statutory period for possession has been satisfied. The continuous possession requirement for adverse possession and acquiescence is not disturbed by a nonacquiescent action that brings rise to the quiet title action. The Millers argued the district court erred because there was no proof of acquiescence by themselves or their predecessors in interest, the statutory period for possession was disturbed, and acquiescence was inapplicable because the Original fence was nothing more than a barrier. The North Dakota Supreme Court affirmed the judgment on acquiescence, breach of contract, trespass, and attorney's fees. Because the Court affirmed on the issue of acquiescence, it did not reach the issue of adverse possession. View "Sauter v. Miller" on Justia Law

Dickinson Elks Building, LLC, appealed a judgment awarding Rick and Janan Snider, doing business as RJ Snider Construction ("RJ Snider"), $198,255.08 for unjust enrichment and quantum meruit claims. In 2011, RJ Snider contracted with Granville Brinkman to furnish materials and labor for construction work on real property owned by Dickinson Elks. RJ Snider's principal place of business was located in Washington. In 2012, RJ Snider applied for a contractor license from the North Dakota Secretary of State, and the license was issued on in February 2012. RJ Snider provided services and materials for Dickinson Elks' property from December 26, 2011, to November 30, 2012. Dickinson Elks paid RJ Snider for all of the services and materials it provided between December 26, 2011, and February 1, 2012. RJ Snider billed Dickinson Elks $174,642.10 for the services and materials it provided from March 15, 2012, until November 30, 2012. Dickinson Elks did not pay any of this amount. In January 2013, RJ Snider recorded a construction lien against Dickinson Elks' property. In May 2014, Dickinson Elks served RJ Snider with a demand to start a lawsuit to enforce the lien and record a lis pendens within 30 days of the demand. RJ Snider sued Dickinson Elks in June 2014, seeking foreclosure of the construction lien and a money judgment. RJ Snider recorded a notice of lis pendens on July 28, 2014. Dickinson Elks moved for summary judgment, arguing RJ Snider's complaint should be dismissed under N.D.C.C. 43-07-02 because RJ Snider was not a licensed contractor when it started work on the property. Dickinson Elks also argued RJ Snider did not have a valid construction lien, because RJ Snider did not record a lis pendens within 30 days of receiving the demand to enforce the lien. The district court partially granted the motion and entered a judgment forfeiting RJ Snider's construction lien because RJ Snider did not record a lis pendens within 30 days of receiving Dickinson Elks' demand to enforce the lien as required under N.D.C.C. 35-27-25. The court concluded RJ Snider's claims were not precluded under N.D.C.C. 43-07-02. RJ Snider amended its complaint, claiming it was entitled to a money judgment against Dickinson Elks under the principles of quantum meruit and unjust enrichment. The North Dakota Supreme Court concluded RJ Snider was not precluded from maintaining its claims; however, the Court reversed and remanded for the district court to determine whether any of the damages awarded were for services and materials provided before RJ Snider was licensed. View "Snider v. Dickinson Elks Building, LLC" on Justia Law