Donald A. Rask v. James Rask, Gary Rask, Bell State Bank and Trust, d/b/a Bell Mortgage

CourtCourt of Appeals of Minnesota
DecidedMay 31, 2016
DocketA15-1640
StatusUnpublished

This text of Donald A. Rask v. James Rask, Gary Rask, Bell State Bank and Trust, d/b/a Bell Mortgage (Donald A. Rask v. James Rask, Gary Rask, Bell State Bank and Trust, d/b/a Bell Mortgage) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donald A. Rask v. James Rask, Gary Rask, Bell State Bank and Trust, d/b/a Bell Mortgage, (Mich. Ct. App. 2016).

Opinion

This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2014).

STATE OF MINNESOTA IN COURT OF APPEALS A15-1640

Donald A. Rask, et al., Appellants,

vs.

James Rask, Respondent,

Gary Rask, et al., Respondents,

Bell State Bank and Trust, d/b/a Bell Mortgage, et al., Defendants.

Filed May 31, 2016 Affirmed in part, reversed in part, and remanded Johnson, Judge

Crow Wing County District Court File No. 18-CV-14-2499

Matthew J. Schaap, Robert B. Bauer, Dougherty, Molenda, Solfest, Hills & Bauer, P.A., Apple Valley, Minnesota (for appellants)

Thomas C. Pearson, Daniel M. Hawley, Gammello, Qualley, Pearson & Mallak PLLC, Baxter, Minnesota (for respondent James Rask)

Ryan R. Dreyer, Eric G. Nasstrom, Morrison Sund PLLC, Minnetonka, Minnesota (for respondents Gary Rask and Sandra Rask) Considered and decided by Kirk, Presiding Judge; Johnson, Judge; and John P.

Smith, Judge.

UNPUBLISHED OPINION

JOHNSON, Judge

Three siblings own undivided, one-third interests in lakeshore property. One sibling

commenced this action against the other two for a partition of the property. The district

court ordered the two defendants to purchase the interest of the plaintiff at a specified

amount and ordered the plaintiff to give the defendants a warranty deed. The plaintiff

appeals, challenging the district court’s form of remedy, its findings of facts concerning

the value of the property, and its requirement that the plaintiff provide a warranty deed.

We conclude that the district court did not err by ordering the defendants to purchase the

interest of the plaintiff and did not err in its findings of fact. But we conclude that the

district court erred by requiring the plaintiff to provide the defendants with a warranty deed.

Therefore, we affirm in part, reverse in part, and remand for an order requiring the plaintiff

to provide the defendants with a quit-claim deed.

FACTS

In 1962, Milton Rask and Hildur Rask purchased lakeshore property on Pelican

Lake in Crow Wing County. The property has 200 feet of shoreline on the south side of

the lake. At the time of the purchase, there was a small, simple, seasonal cabin on the

eastern half of the property.

 Retired judge of the Minnesota Court of Appeals, serving by appointment pursuant to Minn. Const. art. VI, § 10.

2 In 1985, Milton and Hildur executed a quit-claim deed to transfer their fee interest

in the property to their three children, James Rask, Gary Rask, and Donald Rask, in equal

undivided interests, subject to life estates reserved to Milton and Hildur.

The evidence presented at trial reveals that all three brothers historically spent

leisure time at Pelican Lake, that both Gary and Donald maintained primary residences in

the Twin Cities area, that both were married with children, and that both were gainfully

employed. James did not testify at trial. The record indicates that he never has married,

has some unspecified limitations on his capacity, and has executed a power of attorney that

names Gary as his attorney-in-fact.

At some point in time, interpersonal conflicts developed between Gary and Donald

and their respective families, and Donald and his family ceased spending time at the Pelican

Lake cabin. In 1998, Donald purchased a cabin on another lake. He returned to the Pelican

Lake cabin only once until approximately three weeks before trial.

Milton died in 2000. At the time, James, Gary, and Donald were approximately 57,

54, and 49 years old, respectively. In 2002 and 2003, Gary demolished the existing cabin

and built a larger, year-round home in approximately the same place as the old cabin on

the eastern half of the property. Gary spent $675,000 of his own funds to build the new

cabin, all of which he borrowed. Neither James nor Donald contributed any funds to the

construction of the new home or signed the promissory note for the construction loan, but

neither objected to Gary’s improvements. Hildur, Gary, James, and Donald executed a

mortgage to secure the repayment of Gary’s loan, and they executed another mortgage in

2010 when Gary obtained refinancing. After the new cabin was completed, James

3 contributed approximately $19,000 to the payment of property taxes and approximately

$2,400 to maintenance expenses. Donald did not contribute to the payment of property

taxes or maintenance expenses after Gary built the new home. Gary testified that he wanted

Donald and his family to resume visits to the cabin and attempted to facilitate Donald’s use

of the improved property.

Hildur died in 2013. In June 2014, Donald (and his wife, Sharon Rask) commenced

this action against James and Gary (and Gary’s wife, Sandra Rask).1 Donald alleged in the

complaint that the property can be subdivided into two parcels but cannot be subdivided

into three parcels because of local zoning ordinances. Donald asserted two claims. In

count 1, he requested that the district court subdivide the property into two parcels, order a

public sale of each parcel, and order that the proceeds of the sale be divided among the

three co-tenants. In count 2, Donald alleged a claim of unjust enrichment against Gary

based on his exclusive use of the property between 2002 and 2014 and requested an award

of money damages.

In July 2014, James served and filed his answer, which included a counterclaim of

unjust enrichment against Donald based on allegations that he did not expend any of his

funds on taxes, maintenance, and improvements but nonetheless stood to benefit from the

expenditures of the other co-tenants.

1 For the sake of simplicity, we will refer to the three siblings throughout the remainder of this opinion as the parties in interest, even though two spouses also are parties to the action.

4 Also in July 2014, Gary served and filed an answer, which included four

counterclaims against Donald. In counterclaim count 1, Gary alleged that the property

cannot be subdivided and, accordingly, requested that the district court either (a) order

James and Gary to purchase Donald’s interest in the property at fair market value, less

offsets for James’s and Gary’s expenditures on the property, or (b) order a private sale of

the property among the parties. In count 2, Gary requested an accounting of the parties’

respective expenditures on the property. In count 3, Gary alleged a claim of contribution

against Donald to accomplish an equal allocation of expenditures on the property. In count

4, Gary sought “a declaration of the parties’ rights relative to” the property, “including the

amounts that Plaintiffs rightfully owe for their fair share of its improvements, upkeep,

maintenance and expenses.” Gary’s fourth counterclaim also seeks relief against James

and, to that extent, is properly characterized as a cross-claim.

In January 2015, Donald moved for summary judgment. He requested that the

district court issue an order for a sale of the property and an order subdividing the property

into two parcels, if appropriate. In March 2015, after hearing oral arguments on the motion,

the district court appointed three referees, Jim Ruttger, William Ludenia, and Bruce

Larson, “to advise the Court on the potential sale” of the property. The district court

directed each referee to issue a report concerning, among other things, the estimated value

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Donald A. Rask v. James Rask, Gary Rask, Bell State Bank and Trust, d/b/a Bell Mortgage, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donald-a-rask-v-james-rask-gary-rask-bell-state-bank-and-trust-dba-minnctapp-2016.