Justia Civil Procedure Opinion Summaries

4201 2nd Ave. W., LLC, d.b.a. Safari Fuels 105 (“4201”) appealed a district court’s judgment finding First State Bank & Trust, formerly First National Bank & Trust Company (“the bank”), held a valid and enforceable security interest in a liquor license and other collateral. In 2015, the bank loaned approximately $4.34 million to Racers Store 102, LLC (“Racers”) under a promissory note for its operation of a convenience store. As security for the loan, Racers signed the bank a leasehold mortgage, security agreement, and fixture filing against real and personal property including a liquor license, coffee kiosk, walk-in freezer, and Kohler generator, among other collateral. In 2016, Racers defaulted on its loan, and the bank commenced a foreclosure action. During foreclosure proceedings, the bank took control of the convenience store and contracted with 4201 to operate the store while the foreclosure action was pending. Racers transferred its rights, titles, and interests in the ground lease and assets of the store to 4201; 4201 entered into a forbearance agreement with the bank. The parties subsequently discovered the liquor license could not be transferred until delinquent property taxes were paid. The bank and 4201 executed an addendum to the forbearance agreement agreeing to pay equal shares of the property taxes whereby the liquor license would become an asset of 4201 subject to the existing lien held by the bank. The parties also entered into a personal property pledge in which 4201 pledged to give the bank a continuing first-priority interest in the liquor license, 4201 agreed not to sell, assign, or transfer the license, and 4201 agreed to reimburse the bank for costs associated with defending its interest in the license. In 2021, the bank decided to cease operations of the store and offered to sell the liquor license to 4201. 4201 commenced legal action seeking a declaratory judgment that the bank no longer held a valid and enforceable lien on the liquor license, coffee kiosk, walk-in freezer, and Kohler generator. Following a bench trial, the district court determined the bank held a valid and enforceable security interest in the liquor license and other collateral. The court dismissed the bank’s counterclaim. Finding no reversible error in the district court's judgment, the North Dakota Supreme Court affirmed. View "4201 2nd Ave W v. First State Bank & Trust, et al." on Justia Law

Plaintiffs William Kainz and GeoChemicals, LLC appealed a district court’s order granting Jacam Chemical Co. 2013, LLC’s motion to abate and an order and judgment awarding attorney’s fees to Jacam. Plaintiffs argued the district court erred by abating the action and by awarding attorney’s fees. The North Dakota Supreme Court concluded the district court misapplied the law in granting the motion to abate and abused its discretion by awarding attorney’s fees. Accordingly, judgment was reversed and the case remanded for further proceedings. View "Kainz, et al. v. Jacam Chemical Co. 2013" on Justia Law

Karena and Keith Jensen (“Jensens”), as foster parents to A.P., appealed a juvenile court’s order denying their motion to modify and order approving a transition plan. Because the Jensens were not “aggrieved parties” under N.D.C.C. § 27-20.2-26(1), the North Dakota Supreme Court dismissed the appeal. View "Interest of A.P." on Justia Law

Olympic Financial Group, Inc., (“Olympic Financial”) and Abdulaziz Sugule appealed a judgment dismissing their declaratory judgment action without prejudice after the district court granted the Department of Financial Institutions’ (“Department”) motion to dismiss. The North Dakota Supreme Court concluded the district court lacked subject matter jurisdiction because Appellants failed to exhaust administrative remedies. Because the Supreme Court further concluded the judgment dismissing the declaratory relief action without prejudice was not appealable, the Court dismissed the appeal. View "Olympic Financial Group, et al. v. ND Dept. of Financial Institutions" on Justia Law

Jim Arthaud appeals a district court judgment granting Jim Fuglie’s motion to dismiss. Arthaud sued Fuglie, alleging Fuglie published a defamatory statement in his internet blog titled “A Bridge to Nowhere.” The blog was published in August 2018 on Fuglie’s website, “The Prairie Blog.” Arthaud brought suit on October 5, 2021, asserting he did not learn about the post until September 2021. Fuglie responded and filed a motion to dismiss, arguing Arthaud’s claim was time barred under the applicable statute of limitations. The district court subsequently granted the motion to dismiss, finding Arthaud’s claims were time barred under section 28-01-18(1) of the North Dakota Century Code regardless of whether the discovery rule applied in defamation cases. Arthaud argued the North Dakota Supreme Court should adopt the “discovery rule” when determining whether a litigant has timely brought a defamation claim. The Supreme Court held it was unnecessary to decide whether to adopt the discovery rule for defamation claims because the Uniform Single Publication Act precluded the discovery rule from applying to statements made to the public. View "Arthaud v. Fuglie" on Justia Law

Transform Operating Stores, LLC d/b/a Transformco Operating Stores LLC; Transform SR Brands LLC d/b/a Transformco d/b/a Kmart; and Transform KM LLC (collectively, “Transform”) appealed after a North Dakota district court entered an order awarding damages to Ted J. Boutrous, L.L.C. and The Boutrous Group, LLP and entered a [second] amended judgment of eviction. The North Dakota Supreme Court concluded the district court did not err finding a material breach of the lease and in exercising jurisdiction as a summary eviction. "While the court abused its discretion in bifurcating the eviction action, that error was harmless." The Court further concluded Transform failed to timely appeal the court’s contempt order for the untimely turnover of the property. View "Boutrous, et al. v. Transform Operating Stores, et al." on Justia Law

Angus Kennedy owned real property and mineral interests in McKenzie County, North Dakota. In 1960, Angus and his wife, Lois, executed two deeds conveying the surface and “excepting and reserving unto the parties of the first part, their heirs, successors or assigns, all right, title and interest in and to any and all . . . minerals in or under the foregoing described lands.” Lois did not own an interest in the property when Angus and Lois Kennedy executed the deeds. Angus died in 1965, and Lois died in 1980. Angus and Lois did not have children together. Angus had six children from a previous marriage. Angus' heirs executed numerous mineral leases for the property. Lois had one child, Julia Nevin, who died in 1989. In 2016 and 2017, Julia Nevin’s surviving husband, Stanley Nevin, executed mineral leases with Northern Oil and Gas, Inc. In 2018, Stanley sued the successors in interest to Angus, alleging Lois owned half of the minerals reserved in the 1960 deeds. In response, the Angus heirs claimed Angus did not intend to reserve any minerals to Lois because she did not own an interest in the property conveyed in the 1960 deeds. The district court granted Northern Oil’s motion to intervene. Northern Oil appeals the quiet title judgment deciding Northern Oil did not own mineral interests in the McKenzie County property, arguing the district court erred in concluding the deeds at issue were ambiguous as to whether Angus intended to reserve minerals to his wife, Lois. Finding no reversible error in the trial court judgment, the North Dakota Supreme Court affirmed. View "Nevin, et al. v. Kennedy, et al." on Justia Law

Travis Iversen appealed a judgment entered in favor of appellee, Larson Latham Huettl, LLP (hereafter “LLH”), and an order denying relief from judgment under N.D.R.Civ.P. 59(j). Iversen was an attorney employed by LLH from February 2019 until July 2021. Iversen asserts that Tyrone Turner, an LLH partner, told Iversen that “you can only do the work that we give you.” After Iversen terminated his employment with LLH, LLH requested that Iversen refund it $35,772.63 for overpayment. LLH argues that Iversen owes this debt to LLH because he had not been credited with sufficient billable hours to justify the compensation he received under the employment agreement. Iversen refused to pay the deficiency, and LLH then sued Iversen. The district court issued a memorandum opinion granting LLH’s motion for summary judgment. Before judgment was entered, Iversen filed a “motion for reconsideration” citing N.D.R.Civ.P. 59(j). The district court denied Iversen’s motion. Iverson argued that several genuine issues of material fact remained, precluding summary judgment. He also argued the district court abused its discretion in denying his motion under Rule 59(j). Finding no reversible error, the North Dakota Supreme Court affirmed the judgment and the order denying Iversen’s Rule 59(j) motion. View "Larson Latham Huettl, LLP v. Iversen" on Justia Law

L&C Expedition, LLC (“L&C”) appealed the grant of summary judgment in favor of International Fidelity Insurance Company (“IFIC”) and denying summary judgment to L&C. L&C contracted with Unlimited Excavating (“Unlimited”) to perform work on a residential development project. Unlimited completed its work in November 2016 and received final payment in July 2017. In 2019, L&C learned of major problems in the construction and notified Unlimited it needed to make repairs. Unlimited did not make the repairs and L&C demanded IFIC arrange for performance of Unlimited’s work per the terms of the performance bond. IFIC refused to arrange for performance. L&C subsequently initiated suit against IFIC in May 2020 arguing L&C is entitled to recover $393,000 under the terms of the performance bond. The performance bond provided the following: “[a]ny suit under this bond must be[] [i]nstituted before the expiration of two years from the date on which final payment under the subcontract falls due.” The parties do not dispute the district court’s finding L&C initiated its action outside the limitation period provided within the terms of the bond. L&C argued the district court erred in finding a contractual limitation on the period to assert a claim was enforceable, erred in failing to apply N.D.C.C. § 9-08-05 to preclude modification of the applicable statute of limitations, and erred in interpreting N.D.C.C. § 22-03-03 as providing an exception to the prohibition against modifying the applicable statute of limitations. Finding no reversible error, the North Dakota Supreme Court affirmed. View "L&C Expedition, et al. v. Swenson, Hagen and Co., et al." on Justia Law

Brian and April Szostak appealed a district court’s order granting a second motion for sanctions, and the court’s finding of facts, conclusions of law, and order for judgment and judgment. Panther Pressure Testers Inc., and Kirk Wold sued the Szostaks alleging the Szostaks and Wold formed a company named Szostak Services, LLC. Panther and Wold alleged Wold was a member of Szostak Services and the company breached their contract by failing to recognize him as a member. Panther and Wold claim the Szostaks were unjustly enriched after Panther and Wold erroneoysly deposited funds into a Szostak Services bank account and the Szostaks refused to return the funds. The Szostaks answered and counterclaimed. The Szostaks served discovery responses, but did not provide requested documents. Panther and Wold moved for sanctions due to Szostaks’ non-compliance with the district court’s order compelling discovery. At a deposition, for which a subpoena duces tecum was issued, April Szostak revealed she and her husband had 12 boxes of documents pertaining to Szostak Services, but Szostak Services did not bring any documents to the deposition. Panther and Wold moved again for sanctions, requesting the district court enter a default judgment against the Szostaks and dismiss their counterclaims. The Szostaks argued the court abused its discretion by granting Panther and Wold’s second motion for sanctions and entering default judgment. The Szostaks also argued the court erred in its determination of damages. Finding no reversible error, the North Dakota Supreme Court affirmed the default judgment. View "Panther Pressure Testers, et al. v. Szostak, et al." on Justia Law