Broten v. Broten

2015 ND 127, 863 N.W.2d 902, 2015 N.D. LEXIS 115, 2015 WL 3407245
CourtNorth Dakota Supreme Court
DecidedMay 27, 2015
Docket20140177
StatusPublished
Cited by6 cases

This text of 2015 ND 127 (Broten v. Broten) 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
Broten v. Broten, 2015 ND 127, 863 N.W.2d 902, 2015 N.D. LEXIS 115, 2015 WL 3407245 (N.D. 2015).

Opinion

VANDE WALLE, Chief Justice.

[¶ 1] James Broten appealed from a judgment and amended judgment, following a bench trial, finding that as personal representative to Olaf Broten’s estate, he had breached his fiduciary duties by transferring real property to himself, and awarding Louise Broten damages in the amount of the fair market value of the property. We affirm and remand for further proceedings.

I

[¶ 2] James Broten, Louise Broten, and Linda Schuler are the children of Olaf Broten and Helen Broten (“the parents”). The parents originally owned approximately 480 acres of farmland in Barnes County. In 1979, they executed a quitclaim deed granting the father sole ownership of the farmland, and also entered into a contract for deed with James Broten agreeing to convey him the farmland for $200,000 plus six percent interest paid annually through 2006. The contract for deed was prepared by James Broten’s attorney but never recorded. Also in 1979, the parents each executed a last will and testament in which the farmland was to be placed in trust, with the mother receiving the income for life, and the principal distributed equally to the children upon her death.

[¶ 3] James Broten testified that all parties agreed to orally modify the 1979 contract for deed in 1980. The new terms allegedly required him to pay the living expenses for the parents for the remainder of their lives as well as a paymént of *905 $12,000 annually per year in interest. He testified that the $12,000 payment was not always a cash payment and varied from year to year, including his occasionally selling grain or hay and instructing the buyer to pay the proceeds to the father. James Broten had paid living expenses of his parents prior to the oral modification, but argues those payments were' gratuitous while the payments after 1980 were consideration for the oral modification.

[¶ 4] James Broten and the father were active in farming and shared equipment and labor throughout the alleged contract period. James Broten claimed the parents pledged certified deposit accounts as collateral for his farm operation loan. He also testified that he made im-. provements to the farmstead, and the father was only active in a separate farming operation through a rental agreement with a neighboring landowner, and he exclusively farmed the contested property.

[¶ 5] After his father’s death, James Broten was appointed as personal representative of his estate. He obtained written waivers of appointment from the mother and his siblings granting him the right to waive all rights of service of notice from his actions, including an inventory and final accounting of the estate. He filed an informal probate of the father’s will and conveyed the farmland to himself with his mother receiving a life estate. The deed was recorded. He continued to pay for his mother’s living expenses until her death in 2010, but he occasionally withdrew funds from his mother’s checking account.

[¶ 6] After the mother’s death in 2010, the sisters were appointed the co-representatives of the mother’s estate. Louise Broten became aware of James Broten’s conveyance of the farmland to himself. The sisters, as personal representatives and individually, sued James Broten for alleged breach of his fiduciary duty to the father’s estate, conversion, deceit, and breach of contract.

[¶ 7] The district court found James Broten and his father had abandoned the written contract and dismissed the breach of contract claim. The district court also held James Broten failed to prove partial performance of the alleged oral contract sufficient to avoid the statute of frauds, and the land transfer was void as a breach of his fiduciary duty. At a hearing to determine the status of title and remedies, the district court awarded the mother’s estate $103,054 in damages for use of the property following her death, and $1,197,000 for the current value of the property as of December, 2013. An amended judgment was entered awarding the above damages as well as $1,800.70 in sanctions and $2,155.75 in costs and disbursements.

II

[¶ 8] James Broten argues the district court erred in finding no oral contract exists under the doctrine of part performance. He asserts that the interest and living expense payments made to the parents are clear and unambiguous evidence of an oral contract not explained by alternative theories. He also argues that he took exclusive or primary possession of the property, made substantial improvements to the property, maintained an expectation of owning the property, and the district court’s findings to the contrary are clearly erroneous.

[¶ 9] “The existence of an oral contract is a question of fact.” In re Estate of Thompson, 2008 ND 144, ¶ 10, 752 N.W.2d 624. “In an appeal from a judgment entered after a bench trial, a district court’s findings of fact are reviewed under the clearly erroneous standard of N.D.R.CivJP. 52(a).” Id. “A finding of fact *906 is .clearly erroneous if it is induced by an’ erroneous view of the law, if there is no evidence to support it, or if, after reviewing all the evidence, we are left with a definite and firm conviction a mistake has been made.” Id. “A district court’s choice between two permissible views of the evidence is not clearly erroneous, and simply because we may have viewed the evidence differently does not entitle us to reverse the district court.” Id. “We give due regard to the district court’s opportunity to assess the witnesses’ credibility, and we do not second guess the court on its credibility determinations nor do we reweigh the evidence.” Id.

[¶ 10] North Dakota requires all contracts for the sale of real property be in writing. N.D.C.C. § 9-06-04. A court may compel the specific performance of 'an oral agreement for the sale of real property in the case of part performance. N.D.C.C. § 47-10-01. “In order to succeed on a claim of part performance, the claimant must show that the alleged part performance is consistent only with the existence of the alleged oral contract.” Trosen v. Trosen, 2014 ND 7, ¶ 24, 841 N.W.2d 687. “[T]he acts relied upon as constituting part performance must unmistakably point to the existence of the claimed agreement.” In re Estate of Thompson, 2008 ND 144, ¶ 13, 752 N.W.2d 624. “Part performance of an oral contract must be consistent only with the existence of the alleged oral contract,” and “[v]aluable, substantial, and permanent improvements may be considered part performance” unless “the improvements indicate some other relationship, such as a landlord and tenant relationship, or can be accounted for through the application of some other hypothesis.” Id. at ¶ 12. “Cases accepting the doctrine of part performance have recognized three major categories of acts by the purchaser that may make an oral contract enforceable: paying the contract price, taking possession of the property, and making improvements.” Johnson Farms v. McEnroe, 1997 ND 179, ¶ 18, 568 N.W.2d 920.

[¶ 11] James Broten argues he paid the contract price through payment of the parents’ living expenses and interest payments. He also claims to have taken possession of the property, and his installment of improvements on the property demonstrate part performance.

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Cite This Page — Counsel Stack

Bluebook (online)
2015 ND 127, 863 N.W.2d 902, 2015 N.D. LEXIS 115, 2015 WL 3407245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broten-v-broten-nd-2015.