Justia Real Estate & Property Law Opinion Summaries

Articles Posted in North Dakota Supreme Court
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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

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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

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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

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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

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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

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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

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The case involves a dispute between Mary Roth and Gary Meyer, who were in a relationship and cohabitated from 2002 to 2022. They shared a bank account and ran an intermingled cattle herd. The dispute arose over the ownership of a property and cattle, and the enforcement of oral loan agreements. The property in question was initially owned by Anthony and Jean Ehrmantrout, who transferred it to each other in 1994. After their deaths in 2001, the property was distributed to their grandchildren, Chet, Carlos, and Marty Meyer, as co-trustees of the Jean Ehrmantrout Residuary Trust. In 2004, Marty Meyer transferred his interest in the property to Gary Meyer. In 2010, Gary Meyer transferred his interest in the property to Mary Roth.The District Court found that Gary Meyer had gained ownership of the property through adverse possession and had valid title when he transferred it to Mary Roth in 2010. The court also found that Gary Meyer had converted 13 of Mary Roth's cattle and breached oral loan agreements with her, awarding her damages. Both parties appealed the decision.The North Dakota Supreme Court reversed the District Court's decision. The Supreme Court found that the District Court had erred in finding that Gary Meyer had gained ownership of the property through adverse possession. The Supreme Court also found that the District Court had erred in admitting certain evidence, in failing to determine when the alleged conversion of cattle began, in valuing the converted cattle, and in finding that Gary Meyer owed on loan contracts that were unenforceable under the statute of frauds. The case was remanded to the District Court for further proceedings. View "Roth v. Meyer" on Justia Law

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The Ward family, who own extensive acreage in Bismarck, North Dakota, initiated a quiet title action against 152 adjacent landowners, including Dan and Lindsey Herbel, to determine adverse claims to their property. The Wards did not make any claims against the defendants personally but sought a decree that the defendants had no estate, interest, lien, or encumbrance upon their property. The Herbels moved to dismiss the action, arguing they were not proper defendants under chapter 32-17, N.D.C.C., as neither the Wards nor the Herbels claimed an adverse interest against the other’s property. The Herbels also sought recovery of attorney’s fees. The district court denied the motion despite finding the Wards were not aware if any of the named defendants were claiming title to any of the property. Following a bench trial, the court granted the judicial remedy of quiet title and a judgment dismissing the Herbels’ action was entered.The Herbels appealed to the Supreme Court of North Dakota, arguing that because neither party made an adverse claim against the other’s property, the Wards lacked standing to sue under section 32-17-01, N.D.C.C. The Supreme Court agreed, stating that the plain language of N.D.C.C. § 32-17-01 requires the existence of an adverse claim. The court found that the parties’ properties did not share a fence line or a common boundary without any intervening land, and a well-traveled roadway separated the properties. The Herbels never claimed an interest in the Wards’ real property, and the Wards never asserted there was an adverse interest between the parties. The court concluded that a direct suit against the Herbels was not authorized by N.D.C.C. § 32-17-01.The Herbels also argued that the district court abused its discretion when it denied their request for attorney’s fees. The Supreme Court agreed, stating that the district court has discretion to determine whether a claim is frivolous and to determine the reasonable amount of an award of attorney’s fees. The court remanded the case to determine if the claim was frivolous and, if it was, to determine attorney’s fees. The court affirmed the judgment dismissing the claims against the Herbels. View "Ward v. Herbel" on Justia Law

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The case involves a dispute between Mary Roth and Gary Meyer, who were in a long-term relationship but never married. They cohabitated and ran a cattle operation together on a property that had a complex ownership history involving various members of Meyer's family. The couple's relationship ended, and Roth sued Meyer, alleging that he had converted some of her cattle and failed to repay loans she had given him.The District Court of Grant County, South Central Judicial District, found in favor of Roth. It ruled that Meyer had gained title to the disputed property through adverse possession and had transferred it to Roth in 2010. The court also found that Meyer had converted 13 of Roth's cattle and breached oral loan agreements with her, ordering him to pay her $52,500.On appeal, the Supreme Court of North Dakota reversed the lower court's decision. It found that the lower court had erred in its findings on adverse possession, the admissibility of certain evidence, the timing of the alleged conversion of cattle, the valuation of the converted cattle, and the enforceability of the loan contracts. The Supreme Court remanded the case to the lower court for further proceedings, instructing it to make new findings based on the existing record. View "Roth v. Meyer" on Justia Law

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In North Dakota, Donavon Meuchel approached MR Properties LLC, a company with two members, Jessy Meyer and Nick Renner, to purchase the Golden West Shopping Center. Meuchel offered the asking price of $600,000. A real estate broker prepared a purchase agreement, but MR Properties did not sign any version of it. During negotiations, it was discovered that part of the shopping center encroached on a neighboring parcel of land owned by MKB LLP. Meuchel requested MR Properties to acquire additional land from MKB and include it in the purchase. However, negotiations broke down when MR Properties discovered that Meuchel had instructed a surveying company to modify the location of a previously agreed upon boundary line. MR Properties returned Meuchel’s earnest money, stating that an agreement could not be reached.The District Court of Morton County treated MR Properties' motion to dismiss as a motion for summary judgment. The court disregarded statements in Meuchel’s affidavit and struck a late-filed supplemental affidavit. The court concluded that Meuchel failed to meet his burden to show specific performance was necessary and granted summary judgment to MR Properties, dismissing Meuchel’s claim for specific performance.The Supreme Court of North Dakota affirmed the lower court's decision. The court found that the district court did not abuse its discretion in disregarding statements in an affidavit and in striking a late-filed supplemental affidavit. The court also concluded that the district court did not err in granting summary judgment to MR Properties. The court held that the record did not provide any "clear and unequivocal" evidence showing a meeting of the minds or mutual consent between the parties to establish an oral contract. Therefore, the court affirmed the judgment dismissing Meuchel’s claim for specific performance. View "Meuchel v. MR Properties" on Justia Law