American State Bank of Dickinson v. Hoffelt

236 N.W.2d 895, 1975 N.D. LEXIS 153
CourtNorth Dakota Supreme Court
DecidedDecember 17, 1975
Docket9149
StatusPublished
Cited by10 cases

This text of 236 N.W.2d 895 (American State Bank of Dickinson v. Hoffelt) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American State Bank of Dickinson v. Hoffelt, 236 N.W.2d 895, 1975 N.D. LEXIS 153 (N.D. 1975).

Opinions

PAULSON, Judge.

This is an appeal from an order of the District Court of Stark County denying the defendant’s motion for a change of venue. The American State Bank of Dickinson and the Bank of North Dakota, plaintiffs [hereinafter “the banks”], brought action against the defendant, Francis Hoffelt [hereinafter Mr. Hoffelt], on the basis of a contract of guaranty allegedly signed by Mr. Hoffelt. Separate actions were commenced against several other defendants, who also allegedly signed the same contract of guaranty.

The Environmental Development Corporation of North Dakota [hereinafter ENDE-CO, INC.], the principal debtor, had previously executed a promissory note to the two banks and it is alleged that said corporation has defaulted, is insolvent, and is unable to pay its debts. Thus, payment has been demanded of Hoffelt and other guarantors.

The two banks instituted legal action against Mr. Hoffelt on November 20, 1973, by service of a summons and complaint. Mr. Hoffelt, on or about November 27, 1973, served upon the banks’ attorneys his demand for change of venue, in which he demanded that the place of trial in such action be changed from Stark County to the County of Williams because Mr. Hoffelt was at all times and still is a resident of Williams County. The demand, together with a stipulation for change of place of trial, was forwarded to the attorneys for the banks for their signatures. They refused to execute the stipulation and suggested in a letter dated March 24, 1974, that the attorneys for Mr. Hoffelt prepare and serve the necessary motion papers for change of place of trial, and, in addition, filed a return to such anticipated motion. Under date of April 5,1974, Mr. Hoffelt’s attorneys served and filed the requisite motion papers for change of place of trial.

Mr. Hoffelt’s affidavit showed that he was, at the time of the service of the summons and complaint, and still is, a resident of Williams County. Section 28-04-05, N.D.C.C. The banks’ affidavit of resistance admitted Hoffelt’s residence as being in Williams County but, in addition, indicated that the convenience of witnesses and the ends of justice would be promoted by the case being venued in Stark County; that Hoffelt and the other defendants were officers and directors of ENDECO, INC., which is bankrupt; and that the main office and the plant of ENDECO, INC., is located at Dickinson, North Dakota, and, accordingly, that § 28-04 — 07, N.D.C.C., is controlling. The parties, through their attorneys, agreed that the court render its decision on the pleadings without arguments or briefs. The district court, under date of May 30, 1975, issued the following order:

“ORDER
“The motion for change of venue filed on behalf of Defendant Francis Hoffelt transferring the case from Stark County, Sixth Judicial District, to Williams County, Fifth Judicial District, has been fully considered by the Court and said motion is hereby denied, it being clear that the transactions involved occurred at Dickinson, North Dakota, at the home office of the corporation also in Dickinson, North Dakota, and for the conveniences of the witnesses and to serve the ends of justice, the trial should be held in Dickinson, North Dakota. It is hereby further ordered that all seven cases should be consolidated for trial.”

The pertinent statutes which are involved in this case are §§ 28-04-05 and 28-04-07, N.D.C.C.:

“28-04-05. Actions having venue where defendant resides. — In all other cases, except as provided in section 28-04-03.1, and subject to the power of the court to change the place of trial as provided by statute, the action shall be tried in the county in which the defendant or [898]*898one of the defendants resides at the time of the commencement of the action. If such county is attached to another county for judicial purposes, the action shall be tried in the latter county. If none of the defendants shall reside in the state, the action shall be tried in the county which the plaintiff shall designate in the summons.
“28-04-07. Court may change venue— Cases. — The court may change the place of trial in the following cases:
“1. When the county designated for that purpose in the complaint is not the proper county;
“2. When there is reason to believe that an impartial trial cannot be had therein;
“3. When the convenience of witnesses and the ends of justice would be promoted by the change;
“4. When upon the call of the calendar at any regular or special term there appears to be an insufficient number of jury cases for trial to warrant the expense of a jury, the court, on application of any party to such an action, or on its own motion, taking into consideration the convenience of witnesses and the promotion of justice, may order the transfer of such jury cases as are on the calendar to any county within the judicial district where a jury session of court will be held in the immediate future, so that a prompt trial of such cases may be had.” [Emphasis added.]

We are confronted with the following issue:

Did the district court err in denying Hoffelt’s motion for change of venue from the district court of Stark County to the district court of Williams County, which county was and is Hoffelt’s residence?

We reverse.

It is a general rule in this State that the defendant in an action of this character has an absolute right to change to the county of his residence if he seasonably makes demand therefor. Ott v. Kelley, 64 N.D. 361, 252 N.W. 269 (1934); Clark v. Cleveland, 60 N.D. 460, 235 N.W. 342 (1931); State v. Bloom, 49 N.D. 224, 190 N.W. 812 (1922). Further, the hearing on the motion could be held after the time for answering had expired. Hinsey v. Alcox, 38 N.D. 52, 164 N.W. 296 (1917).

In the instant case, Mr. Hoffelt made a timely demand for a change of place of trial to Williams County. When the banks’ attorneys refused to sign the stipulation which accompanied such demand, counsel for the banks requested Mr. Hoffelt to file and serve the motion papers and filed a return in opposition thereto. The banks’ attorneys also requested that the court decide the matter on the pleadings.

This Court, in Ott v. Kelley, supra, in paragraphs 1 and 4 of the syllabus, held:

“1. Where an action, properly triable in the county of the defendant’s residence, is begun in another county, and proper demand is made for a change of place of trial, the defendant is entitled to such change as a matter of right.”
“4. A motion for change of venue on the ground of the convenience of witnesses and furtherance of justice is addressed to the sound judicial discretion of the court.”

And, 252 N.W. at page 270, the Court stated:

“The district court of Stark county could not retain jurisdiction because of convenience of witnesses and the furtherance of justice. That was a matter for the district court of Grant county to determine. [Citations omitted.] It appears [899]*899the California courts hold the application for change of venue because of convenience of witnesses can be made in opposition to a change to the proper county .

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Bluebook (online)
236 N.W.2d 895, 1975 N.D. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-state-bank-of-dickinson-v-hoffelt-nd-1975.