Latest 15 Cases: Bismarck Financial Group, et al. v. Caldwell (Business Law), Titan Machinery v. Kluver (Business Law), Hall v. Hall, et al. ...

He Said/She Said, Save Our Sons, and the Stories that Stick: Part Two of a Two-Part Series of Columns

SHERRY F. COLB

In this second in a series of columns on the U.S. Department of Education’s recent push toward a higher burden of proof in determinations of sexual harassment or assault under Title IX, Cornell Law professor Sherry F. Colb suggests that gendered narratives play a role in people’s willingness to regard an acquaintance rape case as “he said/she said.” Colb describes several examples in which people prefer a story that confirms a pre-existing bias over truth based on evidence.

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Bismarck Financial Group, et al. v. Caldwell

Citation: 2020 ND 207

Opinion Date: October 21, 2020

Judge: Lisa K. Fair McEvers

Areas of Law: Business Law, Civil Procedure

Bismarck Financial Group, LLC, and its individual members (together “BFG”) appeal from an order granting James Caldwell’s Rule 12(b)(6) motion to dismiss their complaint. According to BFG’s complaint, Bismarck Financial Group, LLC, was formed in 2009 as a limited liability company. After Caldwell became a member, the parties executed various governing documents, including an operating agreement. While Caldwell was a member, the company entered into a 10-year office lease. The company also had one salaried employee. In 2019, Caldwell informed the other members he was dissociating from the company. BFG subsequently brought this lawsuit requesting a declaration that Caldwell’s dissociation was wrongful and damages in excess of $137,879.55 based on Caldwell’s pro rata share of the company’s debt obligations, employee salary, office overhead, and other expenses. Caldwell moved to dismiss for failure to state a claim upon which relief could be granted. Caldwell argued that he could not be held personally liable for company expenses and obligations under principles of corporate law. Caldwell also asserted BFG had not incurred any damages caused by his dissociation because, according to the terms of the operating agreement, the members have no obligation to contribute capital to cover company expenditures. The district court granted Caldwell’s motion. The court assumed Caldwell wrongfully dissociated from the company, but concluded BFG had not pleaded a cognizable claim for damages because Caldwell could not be held liable for future company expenses and obligations. Finding only that the district court erred in dismissing BFG's complaint as a matter of law in its entirety, the North Dakota Supreme Court reversed in part, "BFG’s allegation that Caldwell’s withdrawal caused additional, currently-unidentifiable damages, if proven, is sufficient to support recovery against Caldwell." The Court affirmed in all other respects, and remanded for further proceedings.

Titan Machinery v. Kluver

Citation: 2020 ND 225

Opinion Date: October 21, 2020

Areas of Law: Business Law, Civil Procedure

Shawn Kluver and Little Knife Disposal, LLC, appeal from a district court judgment ordering them to pay $140,042.83 to Titan Machinery, Inc., and $100,731.62 to Renewable Resources, LLC. In 2016, Kluver was the general manager of Renewable Resources, which was in the business of oilfield waste disposal. “At Kluver’s request and direction,” Renewable Resources leased a Case excavator and other equipment from Titan. The rental agreement for the Case excavator showed an estimated return date of June 28, 2016. Kluver also executed a credit application and personal guaranty with Titan to ensure Renewable Resources’ payment obligations under the rental agreement. Renewable Resources made all payments under the rental agreement from June 21, 2016, to December 6, 2016. No additional rental payments were made. In February 2017, while still employed by Renewable Resources, Kluver executed the operating agreement of Little Knife Disposal, LLC, as its sole member. Little Knife was also in the business of oilfield waste disposal. After Renewable Resources failed to make rental payments, Titan retrieved the Case excavator in October 2017. The excavator was damaged during the lease, and the excavator’s bucket was missing. In November 2017, Titan sued Renewable Resources for damaging the equipment and failing to pay the balance due under the rental agreement. In January 2018, Renewable Resources filed a third-party complaint against Kluver and Little Knife, claiming they wrongfully used the equipment leased from Titan and did not reimburse Renewable Resources. Renewable Resources requested that Kluver and Little Knife indemnify Renewable Resources for their use of the equipment. In October 2018, Titan obtained a $140,042.83 money judgment against Renewable Resources. In January 2019, Titan sued Kluver, claiming that under the personal guaranty he was liable for Renewable Resources’ debt to Titan. Kluver denied Titan’s allegations and brought a third-party complaint against Renewable Resources, asserting Renewable Resources should indemnify him for any amounts he was required to pay to Titan. Kluver and Little Knife argued the district court erred in finding they benefited from the equipment leased by Renewable Resources. They claimed there was no evidence they received a benefit from the Case excavator leased by Renewable Resources and the court erred in ordering them to indemnify Renewable Resources. Finding no reversible error in the district court's judgment, the North Dakota Supreme Court affirmed the order in favor of Titan Machinery and Renewable Resources.

Hall v. Hall, et al.

Citation: 2020 ND 205

Opinion Date: October 21, 2020

Judge: Lisa K. Fair McEvers

Areas of Law: Civil Procedure, Energy, Oil & Gas Law, Real Estate & Property Law

Robert Hall appealed a judgment entered in favor of the defendants Estate of John Hall, Deborah Hall, and Leslie Hall Butzer ("Hall defendants") in this action to quiet title to a non-participating royalty interest (NPRI) in certain real property. The North Dakota Supreme Court concluded the district court did not abuse its discretion in vacating a default judgment against John Hall. However, because res judicata did not bar Robert Hall’s claims, the court erred in granting summary judgment to the Hall defendants. The matter was therefore affirmed in part, reversed in part, and remanded for further proceedings.

Bickel v. Bickel

Citation: 2020 ND 212

Opinion Date: October 21, 2020

Judge: Lisa K. Fair McEvers

Areas of Law: Civil Procedure, Family Law

Sabrina Bickel appealed a second amended judgment modifying Matthew Bickel’s child support obligation, order for amended judgment, and order on her motion to compel discovery. She argued the district court erred by miscalculating child support, incorrectly setting the commencement date for the modification of child support, and failing to award her attorney’s fees. After review, the North Dakota Supreme Court determined the district court did not "show its math" with respect to calculating the child support obligation. The matter was remanded for further proceedings.

Hoffarth v. Hoffarth

Citation: 2020 ND 218

Opinion Date: October 21, 2020

Judge: Lisa K. Fair McEvers

Areas of Law: Civil Procedure, Family Law

Jeremy Hoffarth appealed an order denying his motion for relief from a divorce judgment and his subsequent motion to reconsider. The North Dakota Supreme Court concluded the appeal of his motion for relief from the judgment was untimely. The Court therefore affirmed the order denying his motion to reconsider because the district court did not abuse its discretion.

WSI v. Tolman

Citation: 2020 ND 223

Opinion Date: October 21, 2020

Judge: Gerald W. VandeWalle

Areas of Law: Civil Procedure, Government & Administrative Law, Labor & Employment Law

Workforce Safety and Insurance (“WSI”) appealed a district court judgment affirming an administrative law judge’s (“ALJ”) order that affirmed WSI’s April 2018 order awarding permanent impairment benefits to Jason Tolman and that reversed WSI’s July 2018 order denying benefits for his depression and anxiety conditions. In September 2014, Tolman was injured when he was driving a tanker truck and involved in a single vehicle roll-over accident. WSI accepted his claim for benefits. In April 2018, WSI issued an order awarding Tolman $4,905 in permanent impairment benefits based on a determination that he had sustained a 16 percent impairment of the whole body. In July 2018, WSI issued an order denying benefits in connection with his depression and anxiety, deciding these conditions were not caused by his physical injury and existed before the work injury. Tolman requested an administrative hearing on the orders, and a hearing was held before an independent ALJ in April 2019. The North Dakota Supreme Court concluded the ALJ erred in applying N.D.C.C. 65-01-02(10)(a)(6) and concluding Tolman established his depression and anxiety conditions were compensable. The Court affirmed that part of the ALJ’s order affirming WSI’s April 2018 order; but reversed that part of the ALJ’s order reversing WSI’s July 2018 order, and reinstated WSI’s July 2018 order.

RFM-TREI Jefferson Apartments v. Stark County Board of Comm'rs

Citation: 2020 ND 204

Opinion Date: October 21, 2020

Judge: Jerod E. Tufte

Areas of Law: Civil Procedure, Government & Administrative Law, Real Estate & Property Law, Tax Law

RFM-TREI Jefferson Apartments, LLC; RFM-TREI Lincoln Apartments, LLC; Dickinson Homestay, LLC; and Lodgepros Dickinson, LLC (together “the Taxpayers”) appealed district court judgments affirming the Stark County Board of Commissioners’ (“the Board”) denials of their applications for tax abatements or refunds. The Taxpayers collectively owned two apartment complexes and two hotels located in the City of Dickinson. The Taxpayers filed applications for abatement or refund of their 2016 property taxes. The Taxpayers’ opinions of value for each property differed from the City’s valuations by a range of roughly $1.8 million to $20.3 million. After holding a hearing, the City recommended the Board deny each application. The Board indeed denied the abatement applications in four separate written decisions. Using the same language in each, the Board concluded the assessor’s valuations were not “in error, invalid, inequitable, unjust, or arrived at in an arbitrary, capricious, or unreasonable manner.” The decisions also explained the Board did not believe the Taxpayers provided “sufficient enough information relating to the subject properties, or the local market for competing properties, to lead us to the same value conclusions requested by the applicant.” The district court affirmed each denial in separate, written orders and judgments. After review, the North Dakota Supreme Court concluded the Board acted arbitrarily and unreasonably in adopting assessments exceeding the true and full value of the property. The Court reversed the district court judgments and the Board’s decisions denying the Taxpayers’ abatement applications. The matters were remanded for a new hearing to determine the “true and full value” of the properties and reconsideration of the abatement applications.

G & D Enterprises v. Liebelt

Citation: 2020 ND 213

Opinion Date: October 21, 2020

Judge: Jerod E. Tufte

Areas of Law: Civil Procedure, Real Estate & Property Law

G&D Enterprises (“G&D”) appealed the dismissal of its claims against against Merrilynn Liebelt. G&D and Liebelt owned adjacent properties in the City of Beulah, North Dakota. In the summer of 2015, G&D discovered a private water line while digging on its property, puncturing the line. The water line crossed a portion of G&D’s property and supplied water to Liebelt’s residence on her property. Before either G&D or Liebelt owned their respective property, both properties had been one lot. The existence of the water line was not recorded, and neither party had actual knowledge of the water line before G&D discovered it. It was undisputed that there was no express easement of record for the water line. In November 2017, G&D filed a summons and complaint at district court, asserting claims against Liebelt for private nuisance and civil trespass and seeking damages and injunctive relief. Liebelt answered, denying the allegations and asserting G&D was not entitled to any damages, injunctive relief, or recovery. In March 2019, Liebelt moved the district court for summary judgment on all claims. The North Dakota Supreme Court concluded the court erred in granting summary judgment because the court misapplied the law, and genuine issues of material fact existed on G&D’s claims for nuisance and trespass, and the court erred in dismissing G&D’s request for injunctive relief.

Hunter v. North Dakota

Citation: 2020 ND 224

Opinion Date: October 21, 2020

Judge: Daniel J. Crothers

Areas of Law: Constitutional Law, Criminal Law

Ashley Hunter appealed an order denying his application for post- conviction relief. Hunter was charged with two counts of murder and one count of arson. After a nine-day jury trial, he was found guilty of all charges. On appeal, he argued the district court abused its discretion in determining res judicata barred his claim of judicial bias, and that he did not receive a Miranda warning. Hunter also argued the district court erred in denying his claims for ineffective assistance of counsel. Finding no reversible error, the North Dakota Supreme Court affirmed.

North Dakota v. Devine

Citation: 2020 ND 208

Opinion Date: October 21, 2020

Judge: Jon J. Jensen

Areas of Law: Constitutional Law, Criminal Law

Christopher Devine appealed after conditionally pleading guilty to criminal vehicular homicide (a class A felony), and two counts of criminal vehicular injury (class C felonies). Devine argued the district court was required to suppress the results of the chemical blood test because he was provided with an incomplete implied consent advisory. After review of the trial court record, the North Dakota Supreme Court concluded the exclusionary rule previously codified within N.D.C.C. 39-20-01(3)(b) did not apply to a test obtained pursuant to N.D.C.C. 39-20-01.1.

North Dakota v. Long

Citation: 2020 ND 216

Opinion Date: October 21, 2020

Judge: Jon J. Jensen

Areas of Law: Constitutional Law, Criminal Law

Kimberly Long appealed following her conditional guilty plea to refusal to submit to a chemical test, a class B misdemeanor. Long argued N.D.C.C. 39-08-01(1)(f) was ambiguous, and the legislative history required a driver to be informed of their right to refuse to take a test to determine their blood alcohol content. The North Dakota Supreme Court concluded N.D.C.C. 39-08-01(1)(f) was not ambiguous and did not require a driver to be informed of a right to refuse to submit to a chemical test to determine their blood alcohol content, therefore affirming judgment.

Suelzle v. NDDOT

Citation: 2020 ND 206

Opinion Date: October 21, 2020

Judge: Jerod E. Tufte

Areas of Law: Criminal Law, Government & Administrative Law

Benjamin Suelzle appealed a district court judgment affirming a Department of Transportation hearing officer’s decision revoking his driving privileges for two years. Suelzle argued the hearing officer erred: (1) by finding the arresting officer had reasonable grounds to arrest under N.D.C.C. 39-08-01; (2) by admitting a supplemental report and notice form; and (3) by failing to exclude evidence of his test refusal because he was not given a valid implied consent advisory. Specifically, he contended he could not be lawfully arrested under N.D.C.C. 39-08-01 because the alleged actual physical control occurred on the grassy yard of his private residence, which was an improved private residential lot and not a place to which the public has access. The hearing officer rejected Suelzle’s argument that his vehicle was located on private property to which the officer could have no reasonable grounds to believe the public would have a right of access for vehicular use. The North Dakota Supreme Court concluded after review of the Department hearing and district court record that although there was evidence in the record that Suelzle drove under the influence on areas where the public had a right of access before parking on his lawn, he was not charged with driving under the influence. He was charged only with actual physical control of his pickup where it was ultimately parked on his residential grass lawn. The hearing officer’s finding was based on a misapplication of law, and it was not supported by evidence in the record sufficient to show the location of the actual physical control offense was within the scope of N.D.C.C. 39-08-01. The district court's judgment affirming the hearing officer's revocation of Suelzle's driving privileges was reversed.

Interest of C.A.R.

Citation: 2020 ND 209

Opinion Date: October 21, 2020

Judge: Jerod E. Tufte

Areas of Law: Family Law

M.L.B. appealed a district court order denying her petition to terminate T.D.R.’s parental rights. M.L.B. and T.D.R. had one child together, C.A.R., born in 2015. In May 2018, M.L.B. petitioned for termination of T.D.R.’s parental rights, claiming T.D.R. had not seen C.A.R. since February 2017 and T.D.R. failed to pay child support except for one payment in January 2018. In a separate action, M.L.B.’s husband, A.G., petitioned to adopt C.A.R. After a September 2019 hearing, the district court found T.D.R. had not abandoned C.A.R. The court found T.D.R.’s lack of contact with C.A.R. was justified because T.D.R. relied on his counsel’s advice during the pendency of his criminal case. The court also found T.D.R.’s failure to financially support C.A.R. before a child support order was in place did not support an intent to abandon C.A.R. The court found a child support order was not in place until August 2017, after its entry T.D.R. maintained substantial compliance, and T.D.R. was current on his support payments at the time of the hearing. The court thus denied M.L.B.’s petition to terminate T.D.R.’s parental rights. The North Dakota Supreme Court concluded the district court did not abuse its discretion in denying M.L.B.’s petition to terminate T.D.R.’s parental rights. The court’s findings had support in the record, and it did not act in an arbitrary, unconscionable, or unreasonable manner in making its decision.

Matter of Hehn

Citation: 2020 ND 226

Opinion Date: October 21, 2020

Judge: Lisa K. Fair McEvers

Areas of Law: Government & Administrative Law

Darl Hehn appealed a district court order denying his petition for discharge from civil commitment as a sexually dangerous individual. Because the North Dakota Supreme Court determined the district court failed to make sufficient findings, the case was remanded for the court make specific findings.

Ring v. NDDHS

Citation: 2020 ND 217

Opinion Date: October 21, 2020

Judge: Gerald W. VandeWalle

Areas of Law: Public Benefits, Trusts & Estates

The district court affirmed the North Dakota Department of Human Service’s determination that Harold Ring was ineligible for Medicaid. When these proceedings began, Ring was ninety-six years old and living in the Good Samaritan Home in Mohall. An application for Medicaid was submitted on his behalf in April 2018. It was denied due to disqualifying transfers. Ring’s daughter, Nancy Ring, filed a second Medicaid application on Ring’s behalf in November 2018. The November application was also denied because Ring’s “client share (recipient liability) is more than the medical expenses.” Ring died after the Department issued its decision but before the district court affirmed. No party was substituted on Ring’s behalf for purposes of the district court proceedings. In 2020, Ring's attorney filed a notice of appeal to the North Dakota Supreme Court, claiming the Department’s imposition of a penalty period due to disqualifying transfers was inappropriate because Ring was a vulnerable adult who was financially exploited. On May 1, 2020, the Good Samaritan Society and the Department stipulated to dismissal of the probate petition because “a Special Administrator is not needed at this time.” The court dismissed the petition on May 5, 2020. The Supreme Court determined that essential issues remained unresolved in this matter: since neither side filed a notice of death or moved to substitute a party, the district court did not determine whether this action survived Ring's death, and if it did, whether a proper successor was available for substitution. The matter was remanded for these findings and substitution.