Justia Real Estate & Property Law Opinion Summaries

In 2001, Terry Olson, Steffen Olson, Kevin Olson, and their parents signed a "Family Agreement" regarding ownership of land in Renville County, North Dakota. The agreement stipulated that the land, owned by the three sons as co-tenants with their parents retaining a life estate, could not be sold or transferred without unanimous consent and prohibited partition actions. Following the termination of the parents' life estates, Terry Olson and Steffen Olson sought to partition the land due to family conflicts. Terry Olson initiated a lawsuit in 2022 to partition the property by sale. Kevin Olson opposed the sale, favoring physical partition instead.The District Court of Renville County appointed a referee to determine whether the property could be physically partitioned without great prejudice. The referee concluded that physical partition would result in smaller, less marketable tracts and recommended a sale. The district court accepted the referee's report and ordered the property to be sold, subsequently confirming the sale and distributing the proceeds among the co-owners. Kevin Olson appealed, arguing that the district court erred in ordering the partition by sale and in distributing the proceeds.The Supreme Court of North Dakota reviewed the case and found that the district court had abused its discretion. The court noted that the referee's report was not properly introduced as evidence and that the district court's findings were conclusory, lacking sufficient evidence to support the determination of great prejudice. The Supreme Court emphasized that the burden of proving that physical partition would result in great prejudice lies with the party demanding the sale. Consequently, the Supreme Court reversed the district court's orders for partition by sale, the award of costs and attorney's fees, and the distribution of proceeds from the sale. View "Olson v. Olson" on Justia Law

In 2010, Howard Malloy obtained a judgment against James Behrens related to their partnership, requiring Behrens to transfer his interest in the partnership and pay $341,890.26 plus interest. Behrens's homestead, subject to a 2006 mortgage, was sold at an execution sale. Behrens appealed the sale confirmation, and in a prior decision, the court reversed and remanded due to procedural errors. Upon remand, the district court issued new executions, leading to a levy on Behrens's homestead. The property was appraised and sold at auction to Malloy for $759,004.65. The court applied a $100,000 homestead exemption, deducted sale costs, allocated $118,866.27 to the mortgage, and applied the remaining proceeds to the judgment.The District Court of Morton County initially confirmed the sale, but Behrens appealed, arguing errors in the sheriff's compliance with execution laws, the application of the homestead exemption, and the allocation of sale proceeds. The court found the sheriff complied with the law requiring personal property to be used before real property. However, it erred by applying a $100,000 homestead exemption instead of the $150,000 exemption effective at the time of the sale and by allocating proceeds to the mortgage rather than the judgment.The North Dakota Supreme Court affirmed the district court's finding that the sheriff complied with execution requirements but reversed the application of the outdated homestead exemption and the allocation of sale proceeds to the mortgage. The court held that the $150,000 homestead exemption should apply and that sale proceeds should satisfy the judgment before addressing the mortgage. The case was remanded for proceedings consistent with these holdings. View "Malloy v. Behrens" on Justia Law

Senske Rentals, LLC, owns property in a subdivision affected by a City of Grand Forks improvement project to pave gravel roads and install street lighting. The city council approved a resolution creating a special assessment district for the project, and the City’s special assessment commission assigned benefits to the affected properties based on frontage, sideage, and square footage. Property owners were notified, and public input meetings were held. Despite protests from property owners, including Senske Rentals, the commission approved the special assessments.The district court of Grand Forks County affirmed the city council’s decision to approve the commission’s determination on the special assessments. Senske Rentals appealed, arguing that the commission failed to perform the required benefit analysis under North Dakota law and that the special assessment amounted to an unconstitutional taking. The district court denied Senske’s motions to strike certain documents from the record and to supplement the record, ultimately affirming the city council’s decision.The North Dakota Supreme Court reviewed the case and concluded that the City’s special assessment commission did not properly determine the benefits accruing to Senske’s property as required by N.D.C.C. § 40-23-07. The court held that the statute requires a determination of special benefits independent of, and without regard to, the cost of the improvement project. The court found that the City had conducted a cost allocation rather than an independent determination of benefit, which was arbitrary, capricious, and unreasonable. The Supreme Court reversed the district court’s order and remanded the case to the City for a proper determination of special benefits to Senske’s lots, independent of the project’s cost, and to apply that special benefit as a limit on assessments to each of Senske’s lots. View "Senske Rentals v. City of Grand Forks" on Justia Law

The plaintiffs, Sharon Mitzel, Alan Mitzel, and Eric Mitzel, filed a legal malpractice lawsuit against Vogel Law Firm and Jerilynn Brantner Adams, alleging negligence in a divorce action involving the disposition of land known as Section 19. Fred and Sharon Mitzel, who were married and had two sons, formed a family limited partnership and conveyed their farm, including Section 19, to it. During their divorce, they agreed that Section 19 would go to Fred, subject to deeding it to their sons upon his death. However, a subsequent quiet title action determined that the family partnership owned Section 19, nullifying the divorce judgment's property distribution.The District Court of Cass County granted partial summary judgment dismissing Alan and Eric Mitzel’s claims, ruling they lacked standing as non-clients to sue for legal malpractice. The court also granted judgment as a matter of law dismissing Sharon Mitzel’s claims, concluding she presented no evidence that she gave up any marital property to secure the agreement for Section 19 to be deeded to her sons upon Fred’s death. Sharon Mitzel’s claim for attorney’s fees and costs incurred due to Vogel’s alleged malpractice was also dismissed.The North Dakota Supreme Court reviewed the case and affirmed the lower court’s decision to dismiss Alan and Eric Mitzel’s claims, agreeing they lacked standing. The court also upheld the measure of damages used by the lower court, which was based on what Sharon Mitzel gave up to secure Section 19 for her sons. However, the Supreme Court found that the lower court erred in determining Sharon Mitzel presented no evidence of incurring attorney’s fees and costs due to Vogel’s alleged malpractice. The case was affirmed in part, reversed in part, and remanded for further proceedings consistent with the opinion. View "Mitzel v. Vogel Law Firm" 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

Jason Ziemann, the plaintiff, became involved in the operation of Grosz Wrecking, a business owned by his grandmother, Juanita Grosz, after her husband passed away. Ziemann moved into a home on the business property in 2014. In 2022, Grosz sought to evict Ziemann after he refused to purchase the home. Ziemann then sued Grosz, alleging they had an oral partnership agreement and sought a declaration of partnership, accounting, and dissolution, along with claims for breach of fiduciary duties and tortious interference with a business relationship. Grosz denied the partnership and counterclaimed for trespass.The District Court of McLean County denied Ziemann’s motion for partial summary judgment, ruling factual issues existed regarding the partnership. The court granted Grosz’s motion, dismissing Ziemann’s claims for tortious interference and breach of fiduciary duty, citing inadmissible hearsay and lack of evidence for damages. After a bench trial, the court found the parties had formed a partnership with specific profit-sharing terms and dismissed Grosz’s trespass claim, allowing Ziemann to remain on the property until the business was dissolved. The court ordered the liquidation of partnership assets and awarded Ziemann costs.The Supreme Court of North Dakota reviewed the case. It affirmed the lower court’s findings that a partnership existed and that Grosz contributed property to it. The court also upheld the dismissal of Grosz’s trespass claim and Ziemann’s claims for tortious interference and breach of fiduciary duty. However, it reversed the lower court’s decision not to apply the default partnership winding up provisions under N.D.C.C. § 45-20-07. The case was remanded for the district court to enter judgment consistent with this decision. The Supreme Court affirmed the award of costs and disbursements to Ziemann as the prevailing party. View "Ziemann v. Grosz" on Justia Law

Lynn and Tanya Heiser filed a lawsuit to quiet title to a 0.90-acre tract of land in McKenzie County, North Dakota, which they claimed through adverse possession and acquiescence. The disputed land is adjacent to their property and separated from Nevin and Laura Dahl's property by County Road 34. The Heisers and their predecessors had used the land for various purposes, including building structures, parking equipment, and general maintenance, since the 1960s.The District Court of McKenzie County ruled in favor of the Heisers, finding that they had established title to the disputed land through adverse possession and acquiescence. The court found that the Heisers and their predecessors had used the land continuously and openly for over 20 years, meeting the requirements for adverse possession. The court also concluded that County Road 34 served as a natural boundary, which the parties had mutually recognized as the property line.The North Dakota Supreme Court reviewed the case and found that the District Court's findings were insufficient to support the conclusion that the Heisers had adversely possessed the entire disputed tract. The Supreme Court noted that the District Court had improperly relied on the transfer of property ownership to establish hostile use and had not adequately determined the 20-year period of adverse possession. Additionally, the court found that the evidence did not support the conclusion that the entire disputed land was improved or enclosed.The Supreme Court reversed the District Court's judgment and remanded the case for further findings on the extent of the Heisers' adverse possession. The court also held that the District Court erred in finding that County Road 34 was the boundary line by acquiescence, as there was no mutual recognition of the boundary by both parties. View "Heiser v. Dahl" on Justia Law

On December 29, 2015, Timothy Morales, a pedestrian, was struck by a vehicle driven by Ruby Junewal while walking along a roadway within the Weatherford distribution facility in Williston, North Dakota. Morales alleged that Weatherford U.S., L.P. was negligent in maintaining the premises, specifically citing inadequate lighting, lack of road signs, and absence of sidewalks. Morales filed a lawsuit in 2019 against Weatherford, Junewal, and Junewal’s employer, Wilhoit Properties, Inc., asserting claims of negligence and premises liability.The District Court of Williams County granted summary judgment in favor of Weatherford, concluding that Weatherford did not owe Morales a duty of care. The court dismissed all claims against Weatherford and the other defendants. Morales appealed the decision, arguing that the district court erred in its judgment.The North Dakota Supreme Court reviewed the case and affirmed the district court's decision. The Supreme Court held that the danger posed by vehicles on the roadway was open and obvious, and therefore, Weatherford owed no duty of care to Morales. The court noted that Morales was aware of the dangers of walking on the roadway and that the conditions were such that a reasonable person would have recognized the risks. The court also rejected Morales's argument that Weatherford should have anticipated the harm despite the obvious danger, concluding that the distraction exception did not apply as Morales's distraction was self-created. The judgment dismissing all claims with prejudice was affirmed. View "Morales v. Weatherford U.S." on Justia Law

ND Energy Services, LLC, entered into a temporary layflat easement agreement with Kathleen Stroh, granting it the exclusive right to transfer freshwater via aboveground layflat hoses on Stroh's property. Lime Rock Resources III-A, L.P., and Herman Energy Services, LLC, subsequently placed layflat hoses on the same property to transport water for fracking operations. ND Energy sued Lime Rock for tortious interference with contract and willful trespass, seeking a permanent injunction.The District Court of Dunn County granted summary judgment in favor of Lime Rock, dismissing ND Energy's claims. The court found that the oil and gas leases, which Lime Rock had acquired, provided Lime Rock the right to use the property for oil and gas production, including the installation of layflat hoses. The court also concluded that ND Energy had notice of Lime Rock's rights due to a recorded memorandum of a surface use agreement and that Lime Rock's actions were justified.The Supreme Court of North Dakota affirmed the district court's decision. The court held that the leases granted Lime Rock the right to use layflat hoses on the property, as this use was necessary for oil and gas production. The court also determined that ND Energy was not a good-faith purchaser of the layflat easement because it had constructive notice of the surface use agreement through the recorded memorandum. Consequently, ND Energy's claims for tortious interference and a permanent injunction were dismissed, as Lime Rock's actions were justified under the leases. View "ND Energy Services, LLC v. Lime Rock Resources III-A" on Justia Law

Benjamin Nordquist appealed a judgment dismissing his petition for a writ of mandamus. The case involves a dispute over the recording of a quitclaim deed for a portion of land in Witzig’s Fifth Subdivision, Stutsman County, North Dakota. Diane and Duane Witzig originally owned the land, which was platted into three lots in 2014. Diane Witzig later conveyed these lots to Gannon Van Gilder and Levi Hintz. In 2022, Diane Witzig provided a quitclaim deed to Nordquist for a portion of the subdivision depicted as 6th Street SW on the plat map. Nordquist attempted to record this deed, but the Stutsman County Recorder refused, citing discrepancies in the property description and forwarded it to the Auditor.The District Court of Stutsman County denied Nordquist’s petition for a writ of mandamus, concluding that the quitclaim deed changed the current property description and thus required a certificate of transfer from the Auditor. The court also noted that the Auditor had discretion to request the land be replatted due to the irregularities in the property description and previous conveyances.The North Dakota Supreme Court reviewed the case and affirmed in part and reversed in part. The court agreed with the lower court that the quitclaim deed changed the current property description, necessitating a certificate of transfer from the Auditor. However, the Supreme Court found that the district court improperly determined that the 2018 and 2021 deeds conveyed the north 60 feet of Witzig’s Fifth Subdivision. The Supreme Court held that property ownership should be determined in a separate proceeding involving all relevant parties. The court affirmed the denial of Nordquist’s petition for a writ of mandamus, concluding that Nordquist had not demonstrated a clear legal right to compel the Auditor to issue the certificate of transfer. View "Nordquist v. Alonge" on Justia Law