Zundel v. Zundel

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Stephen Zundel appealed a district court judgment declaring Loren and Richard Zundel complied with a lease relating to grain and farm equipment storage, declaring the lease remained in effect, and dismissing Stephen's eviction action against Loren and Richard Zundel. Loren and Richard Zundel cross-appealed the judgment awarding them $21,182 in attorney's fees and costs. Edwin Zundel and his sons, Loren, Richard, Stephen, and Donald, used the bin site at issue in this appeal in varying amounts. Edwin leased the bin site to his sons at an annual rate of $400. The lease also included provisions regarding the use of the property, repairs, and default. The lease provided the bin site was to be used primarily for storing crops, farming equipment, and farming supplies. The lease provided the term of the agreement was the life of all tenants. The family partnership subsequently conveyed the bin site to Stephen and he became the landlord under the lease. A dispute arose in 2014 after Stephen demanded additional rent of $400 from each tenant. Loren and Richard refused to pay and expressed their position that the total annual rent was $400 from all tenants. Stephen also demanded that repairs be made to the bin site. The district court ruled the bin site lease did not violate N.D.C.C. 47-16-02, finding the bin site lease was not a lease of agricultural land in part because "[i]n the lease . . . the parties agree that this land is not suitable for farming." The court also decided the use of the leased property was not for agricultural purposes. The North Dakota Supreme Court agreed with the district court's conclusion that the property covered by the bin site lease was not agricultural land; the bin site lease plainly stated the leased property was not suitable for farming. The lease also excluded pasture land from the property covered by the lease. The district court made numerous findings relating to repairs on the bin site. Those findings were supported by the record on the basis of Loren and Richard's testimony. The Court concluded the trial court did not clearly err in finding Loren and Richard maintained the bin site in good condition and did not breach the bin site lease. However, the Court concluded the trial judge abused his discretion in finding Stephen's counterclaim relating to N.D.C.C. 47-16-02 was frivolous, therefore that part of the judgment awarding Loren and Richard attorney's fees was reversed. The case was remanded to the district court to redetermine the award of attorney's fees related to the frivolous counterclaims disposed of on the motion for judgment on the pleadings. View "Zundel v. Zundel" on Justia Law