Justia Contracts Opinion Summaries

Scott Dahms hired Legacy Plumbing, LLC to perform plumbing work in a house built in the 1920s. Due to the age and condition of the piping, Legacy recommended replacing as much of the piping as possible. Dahms, however, wanted to keep costs low and did not want additional piping replaced. After Legacy completed the work, Dahms discovered a leak in the bathroom, which caused damage to the home. Dahms filed a lawsuit in small claims court for the cost to repair the damage from the leak. Legacy removed the case to district court, filed an answer, and moved for summary judgment. The district court granted summary judgment in favor of Legacy and dismissed Dahms’s claim.The district court granted summary judgment in favor of Legacy, concluding that there was no genuine issue of fact as to the source and cause of the leak. The court relied on affidavits and photographs provided by Legacy, which asserted that the source of the leak was the original lead and Oakum joint seal inside the main cast iron stack, not the PVC piping or hub part installed by Legacy. The court also concluded that the damage due to the leak was an incidental under the warranty clause of the contract between Dahms and Legacy.The Supreme Court of North Dakota reversed the district court's decision, concluding that a genuine issue of material fact exists as to the source and cause of the leak. The court found that the district court had improperly weighed the evidence and determined witness credibility by considering the experience of the affiants. The Supreme Court also found that a genuine issue of material fact exists regarding whether the damage was incidental to Legacy’s work under the agreement. The court denied Legacy's request for attorney’s fees and remanded the case back to the district court. View "Dahms v. Legacy Plumbing" on Justia Law

Whitetail Wave LLC, a Montana Limited Liability Company, sued XTO Energy, Inc., a Delaware corporation, the Board of University and School Lands of the State of North Dakota, the State of North Dakota, and the Department of Water Resources and its Director. Whitetail Wave claimed ownership of certain property in McKenzie County, North Dakota, and alleged that XTO Energy had breached their lease agreement by failing to make required royalty payments. Whitetail Wave also claimed that the State's assertion of an interest in the mineral interests associated with the property constituted an unconstitutional taking without just compensation.The District Court of McKenzie County granted summary judgment in favor of the State and XTO Energy. The court concluded that the State owned certain mineral interests within the ordinary high watermark as defined by North Dakota law. The court also found that XTO Energy was within the safe harbor provision provided by North Dakota law and did not breach the parties’ lease agreement when it withheld the royalty payments. The court awarded XTO Energy recovery of its attorney’s fees.On appeal, the Supreme Court of North Dakota affirmed the judgment of the district court. The Supreme Court found that the district court did not err in dismissing Whitetail Wave's claim of an unconstitutional taking against the State, as the State's actions were limited to a title dispute. The Supreme Court also found that the district court did not err in dismissing Whitetail Wave's claim against XTO Energy for the non-payment of royalties, as XTO Energy fell within the safe harbor provision of North Dakota law. Finally, the Supreme Court found that the district court did not err in awarding XTO Energy a recovery of its attorney’s fees as the prevailing party. View "Whitetail Wave v. XTO Energy" on Justia Law

In this case from the Supreme Court of North Dakota, Ryan Kratz, who had entered into a purchase agreement to buy a business and building from Donald and Carol McIlravy, failed to make the agreed-upon payments. The McIlravys initiated two eviction actions, and a separate action seeking damages, cancellation of the contract, and release of funds held in a trust account. The district court initially dismissed one of the eviction actions, but eventually ruled in favor of the McIlravys, awarding them damages and ordering release of the trust funds. Several years later, Kratz filed a motion under Rule 60(b), alleging the district court lacked subject matter jurisdiction over the eviction actions and seeking to vacate or void all findings, conclusions, and orders, except the dismissals of the eviction actions. The district court denied this motion and awarded attorney’s fees to the McIlravys.On appeal, the Supreme Court of North Dakota held that Kratz's appeal was limited to the judgment denying his Rule 60(b) motion and that the motion was timely. The court determined that the district court had jurisdiction over the eviction cases and that any violation of N.D.R.Ct. 7.1(b)(1) was harmless error. The court also held that the district court did not abuse its discretion in awarding attorney’s fees. Consequently, the court affirmed the decision of the lower court. View "Don's Garden Center v. The Garden District" on Justia Law

In this case, the Supreme Court of North Dakota considered an appeal and cross-appeal related to a dispute over three contracts for deed between LAWC Holdings, LLC, and Vincent Watford, L.L.C. The court affirmed the lower court's findings that Vincent had breached the contract for deed on one of the parcels of land, and that specific performance was an appropriate remedy. The court also affirmed the lower court's decision that LAWC was the prevailing party and was thus entitled to attorney’s fees. However, the court denied LAWC's claim for damages as LAWC was not entitled to both performance of the contract through specific performance and damages for Vincent's breach of contract. The court also concluded that LAWC was entitled to an award of attorney’s fees on appeal. The case was remanded to the lower court to determine a reasonable amount of attorney’s fees on appeal. The court did not address LAWC's cross-appeal regarding title to the other two parcels as it was determined that LAWC had waived this cross-appeal. View "LAWC Holdings, LLC v. Vincent Watford, L.L.C." on Justia Law

The Supreme Court of the State of North Dakota considered an appeal by Michelle Vetter against a district court judgment which found her liable for unpaid legal fees to Larson Latham Huettl LLP, a law firm she'd hired for her divorce proceedings. The firm had sued Vetter for a balance of $552 which exceeded an initial retainer of $6,000. Vetter disputed the claim, arguing that the firm had unilaterally altered the agreement's terms, breached the contract, and committed fraud or deceit. She alleged she'd been billed at $200 per hour instead of the agreed $180. The district court dismissed Vetter's counterclaim, upheld the validity and enforceability of the fee agreement (which included a provision that the hourly rate could increase during representation), and awarded judgment to the law firm for the unpaid fees, interest, costs, and attorney’s fees.On appeal, the Supreme Court of North Dakota affirmed the district court's decision, finding that its conclusions were supported by the record and not clearly erroneous. The court ruled that attorney's fees were reasonable and enforceable under the contract. The court also remanded the case to the district court to determine a reasonable amount for attorney’s fees for the appeal, as per the North Dakota Century Code, which allows a prevailing plaintiff to be awarded attorney’s fees when the defendant elects to remove the action from small claims court to district court and appeals the district court judgment to the supreme court. View "Vetter v. Larson Latham Huettl LLP" on Justia Law

The North Dakota Supreme Court reversed a district court's judgment, which had dismissed the claims of Jacob Ebel, John Ebel, and Ordeen Ebel (collectively, "the Ebels") for declaratory judgment, injunctive relief, breach of contract, and tortious interference. The Ebels had sought enforcement of contracts they claimed were formed when their bids for parcels of real property owned by the estate of Mark Engelhardt were accepted. The district court had dismissed the Ebels' claims, asserting that the parties did not satisfy the statute of frauds, which requires contracts for the sale of real property to be in writing. The Supreme Court found that the district court misapplied the law because the statute of frauds was not specifically pled or otherwise raised by the parties. The Supreme Court noted that under Rule 8 of the North Dakota Rules of Civil Procedure, the statute of frauds must be specifically pled as an affirmative defense. Therefore, the case was reversed on the ground that the district court incorrectly applied the statute of frauds when the defense was not properly raised. View "Ebel v. Engelhart" on Justia Law

In February 2020, Shift Services, LLC (Shift) was contracted by Ames Savage Water Solutions, LLC (Ames) to repair a liner inside a water tank operated by Ames. The agreement was for a fixed price of $39,500.00, which included all labor, material, and travel time. When Shift began the work, they found a more significant amount of ice in the tank than initially observed. Shift communicated with Ames about the issue and decided to subcontract a hot oil truck company to melt the ice. Upon completion of the project, Ames paid the contracted amount but refused to pay an additional $31,705.00 bill from Shift related to the ice removal. Shift claimed that the contract was modified to include these additional costs, which Ames had allegedly approved. The district court dismissed Shift's breach of contract claim and terminated the construction lien it had placed on the property, finding that there was a lack of mutual assent to modify the contract.The Supreme Court of North Dakota affirmed the district court's decision. The court found that Shift did not provide sufficient evidence to demonstrate mutual assent for the modification of the original contract. The court pointed out that Shift had not disclosed to Ames that they intended to add an additional charge for the increased cost associated with the ice removal, nor did they discuss the details of the subcontractor, the equipment to be used, or the estimated number of hours that the removal would take. In conclusion, the court found no error in the district court's finding of a lack of mutual assent to modify the contract, thereby confirming that Ames did not breach the contract. View "Shift Services v. Ames Savage Water Solutions" on Justia Law

In this case from the Supreme Court of North Dakota, Fonda Jo Powell and Mary T. Henke, as co-personal representatives of the Estate of June A. Slagle, alongside Helen Verhasselt, the trustee of the June Slagle Family Mineral Trust, filed an appeal against Statoil Oil & Gas LP (now known as Equinor Energy LP). The plaintiffs appealed from a judgment of dismissal entered after the district court granted Statoil's motion for summary judgment, concluding that a dispute of title allowed Statoil to suspend royalty payments and that the plaintiffs were not entitled to statutory interest. The plaintiffs argued that the district court erred in concluding there was a title dispute, while Statoil argued that this action was barred by the statute of limitations.The Supreme Court of North Dakota reversed the decision of the district court, concluding that the action was not barred by the statute of limitations and that the court erred in concluding that Statoil lawfully suspended royalty payments. The court determined that a ten-year statute of limitations applied to the claim for untimely payment of royalties under the oil and gas lease, as per N.D.C.C. § 28-01-15(2). Furthermore, the court concluded that, when a dispute is between the mineral developer and the mineral owner, notice of the dispute is required under N.D.C.C. § 47-16-39.4. As Statoil did not provide evidence that it had notified June Slagle of a title dispute, it was required to pay interest on the unpaid royalties at a rate of 18% per annum. The case was remanded for further proceedings consistent with this opinion. View "Powell v. Statoil Oil & Gas" on Justia Law

Jeffrey Weikum appealed a district court order and judgment denying his motion to compel arbitration, and granting Rodney Pagel and Scott Hager's motion for summary judgment. The parties agreed to dissolve their law firm, Pagel Weikum, PLLP, and entered into a Release and Settlement Agreement. The Agreement included an arbitration clause. Pagel and Hager filed suit against Weikum for breach of contract and conversion. Weikum moved to dismiss and compel arbitration. The North Dakota Supreme Court reversed, finding the arbitration clause at issue in the Agreement was broad, and not limited by any exceptions. The Court concluded the district court misinterpreted the Agreement by finding the claims raised were not arbitrable, and by denying the motion to compel arbitration of those claims. View "Pagel, et al. v. Weikum" on Justia Law

In Dencember 2022, Olson Family Limited Partnership (“Olson”) served a summons and complaint on Velva Parks, LLC through Velva Parks’ registered agent, Legalinc Corporate Services Inc. (“Legalinc”). Olson alleged it entered into a contract for deed with Velva Parks for the sale of its mobile home park to Velva Parks. Olson alleged Velva Parks breached their contract for deed by failing to pay the final balloon payment of $406,414 when it became due December 1, 2022. Olson sought to have the contract judicially terminated and canceled. Velva Parks appealed an order denying its motion to vacate the default judgment entered after Velva Parks failed to answer or otherwise appear withn 21 days after being served with the summons and complaint. The North Dakota Supreme Court affirmed, concluding the district court did not abuse its discretion in denying Velva Parks’ motion to vacate. View "Olson Family Limited Partnership v. Velva Parks, LLC" on Justia Law