Justia Business Law Opinion Summaries

Randy Kyllo, individually and as a partner of Tri-K Farms, appealed a district court order that denied his claim against Shawn Knudson for usurpation of a partnership opportunity. In 1994, Kyllo and Shawn Knudson formed a general partnership, Tri-K Farms. Knudson and Kyllo did not execute a written partnership agreement, but they operated Tri-K Farms as equals. One of the parcels of land Tri-K Farms leased, Knudson separately purchased by contract for deed using some of the partnership's funds. In March 2006, Knudson and Kyllo met with an attorney about dissolving the partnership. The attorney prepared a written partnership dissolution agreement to dissolve the partnership and distribute the partnership assets, but neither party signed. A dispute arose over the sale of the purchased parcel, ultimately ending in a judgment against Kyllo. The district court found Kyllo failed to establish by a preponderance of the evidence that: (1) Knudson improperly usurped a partnership opportunity because the partnership never intended to purchase the property; (2) owning the land was not within the scope of the partnership's business; (3) the partnership was allowed to continue to farm the land after the sale; (4) and the income from the lease went to the partnership. Finding that the district court's decision was not clearly erroneous, the Supreme Court affirmed. View "Knudson v. Kyllo" on Justia Law

K & L Homes, Inc. ("K & L") appealed the trial court's summary judgment declaring no coverage existed under K & L's commercial general liability ("CGL") policy with American Family Mutual Insurance Company ("American Family") for damages awarded against K & L in an underlying action. Upon review of the applicable case law pertinent to this matter, the Supreme Court concluded there could be an "occurrence" under the CGL policy at issue in this case. Therefore, the Court reversed the summary judgment and remanded the case for further proceedings. View "K & L Homes, Inc. v. American Family Mutual Ins. Co." on Justia Law

Steam Brothers, Inc. appealed the grant of summary judgment in a declaratory judgment action by John Riedlinger, Dale Stroh, Kevin Vetter, Leo Horner, and Duane Leier, five individuals, collectively referred to as "licensees". The district court decided that the clear and unambiguous language of the license agreements did not obligate the licensees to provide Steam Brothers and its owner Jerry Thomas, with certain business information and precluded Steam Brothers from terminating the license agreements absent mutual consent of the parties. Upon review, the Supreme Court reversed and remanded, concluding the license agreements were ambiguous about the parties' rights and obligations. View "Riedlinger v. Steam Brothers, Inc." on Justia Law

MayPort Farmers Co-Op appealed the judgment entered after trial and the district court's order denying MayPort's motion to amend findings of fact and conclusions of law and to amend judgment. MayPort sued St. Hilaire Seed Co., Inc., alleging St. Hilaire owed MayPort money for storage of edible beans St. Hilaire purchased from MayPort. The district court concluded "usage of trade" applied as a gap-filler and found industry custom and standards rendered storage charges inappropriate because MayPort's inability to perform caused the need for storage. Upon review, the Supreme Court affirmed, concluding the district court's findings of fact were not clearly erroneous and the district court did not abuse its discretion by denying MayPort's motion to amend. View "MayPort Farmers Co-Op v. St. Hilaire Seed Company, Inc." on Justia Law

Karl Moseng and his wife Vicki Moseng were employed by Hartland Mutual Insurance Company. Lynn Frey was Vicki Moseng's supervisor from 1985 to 2008. Karl Moseng alleged Frey used his position as a supervisor with Hartland to arrange sexual liaisons with Vicki Moseng from 1988 through 1991. Specifically, Karl Moseng alleged Frey sent Karl Moseng on geographically distant employment assignments to more easily allow the liaisons between Frey and Vicki Moseng. Karl Moseng brought claims of negligence and negligent infliction of emotional distress against Frey and Hartland. Frey and Hartland moved to dismiss under N.D.R.Civ.P. 12(b)(6). The trial court granted the dismissal with prejudice. Karl Moseng thereafter appealed, arguing his claims were legally sufficient to survive dismissal with prejudice. Upon review, the Supreme Court concluded Karl Moseng's claims were legally insufficient, and affirmed. View "Moseng v. Frey" on Justia Law

Wenco, a North Dakota limited partnership, appealed a judgment quieting title to certain Mountrail County royalty and mineral interests in EOG Resources, Inc. ("EOG"), and QEP Energy Company ("QEP"), and dismissing Wenco's claims for conversion and unjust enrichment against EOG and QEP. Upon review, the Supreme Court concluded that the district court did not err in ruling as a matter of law that Wenco's interest bore the entire burden of a prior royalty interest conveyance in the subject property, that EOG and QEP did not waive their rights to claim the prior royalty interest conveyance burdened only Wenco's interest, and consequently, that Wenco had no viable claims against EOG and QEP for conversion and unjust enrichment. View "Wenco v. EOG Resources, Inc." on Justia Law

Carol Forsman appealed a judgment which dismissed as a matter of law under N.D.R.Civ.P. 50(a) her dram shop and negligence action against Blues, Brews and Bar-B-Ques, Inc., doing business as Muddy Rivers, and Amanda Espinoza. Forsman argued the district court erred in granting Muddy Rivers' motion for judgment as a matter of law, claiming she introduced sufficient evidence to establish Muddy Rivers knowingly provided alcoholic beverages to an obviously intoxicated person, Espinoza, and Espinoza caused Forsman's injuries. Forsman also claimed the court erred in sustaining Muddy Rivers' hearsay objections to several police reports and she was denied the opportunity to call a rebuttal witness to challenge inconsistent statements by witnesses associated with Muddy Rivers. Upon review, the Supreme Court concluded the court erred in granting judgment as a matter of law on Forsman's dram shop claim, and reversed and remanded for further proceedings. View "Forsman v. Blues, Brews and Bar-B-Ques, Inc." on Justia Law

Sheryl Fines appealed a judgment that dismissed her action against Ressler Enterprises, Inc. (doing business as Ressler Siding and Windows (Ressler)). Fines argued the district court abused its discretion in dismissing her action against Ressler as a sanction for spoliation of evidence. She contended dismissal was not appropriate because the court erred in determining Ressler was prejudiced by the destruction of the evidence and the court failed to consider the availability of less severe sanctions. Under the facts of this case, the Supreme Court concluded the district court did not abuse its discretion in imposing the sanction of dismissal and accordingly affirmed. View "Fines v. Ressler Enterprises, Inc." on Justia Law

Andrew Thomas appealed the district court's judgment entered after a jury awarded Randall and Shannon Bakke $25,000 plus interest for breach of contract, negligence and fraud. Thomas argued insufficient evidence existed to pierce the corporate veil of D&A Landscaping Company, LLC and hold him personally liable for breach of contract and fraud. Thomas also claimed that the district court committed plain error by failing to properly instruct the jury on the burden of proving fraud and that insufficient evidence existed to support the fraud verdict. Upon review, the Supreme Court affirmed, concluding the corporate veil was not pierced and the jury instruction on the burden of proof for fraud was law of the case. View "Bakke v. D & A Landscaping Co." on Justia Law

Steven and Connie Falkenstein appealed a district court judgment dismissing their claims against Jon W. Dill and Credico, Inc. for violations of the Fair Debt Collection Practices Act ("FDCPA"). The Falkensteins received medical services from Medcenter One but failed to pay the total balance due. The debt was assigned to Credico, Inc. for collection. Dill, an in-house attorney and employee of Credico, Inc., communicated with the Falkensteins regarding the debt. In March 2009, judgment was entered in favor of Credico, Inc. for the amount of the Falkensteins' debt, including interest. Upon review of the trial court record, the Supreme Court found no error with the district court's dismissal and affirmed. View "Falkenstein v. Dill" on Justia Law