Entzel v. Moritz Sport and Marine

2014 ND 12, 841 N.W.2d 774, 2014 WL 197806, 2014 N.D. LEXIS 12
CourtNorth Dakota Supreme Court
DecidedJanuary 17, 2014
Docket20130157
StatusPublished
Cited by9 cases

This text of 2014 ND 12 (Entzel v. Moritz Sport and Marine) 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
Entzel v. Moritz Sport and Marine, 2014 ND 12, 841 N.W.2d 774, 2014 WL 197806, 2014 N.D. LEXIS 12 (N.D. 2014).

Opinion

KAPSNER, Justice.

[¶ 1] Laura Jean Entzel appeals a district court opinion awarding her a partial refund of her prepaid rental fee and a district court order denying her request for attorney fees. We reverse the district court judgment’s award of a refund to Entzel, because we hold the force majeure clause of the parties’ contract relieved Moritz Sport and Marine (“Moritz”) of liability for nonperformance and allocated the risk of loss to Entzel. We affirm the district court judgment’s denial of Entzel’s request for attorney fees, concluding Ent-zel was not a prevailing plaintiff in this case.

I

[¶ 2] On December 16, 2010, Entzel entered into a Boat Space Rental Agreement with Moritz. Entzel pre-paid Moritz $612 for use of a marina boat slip at Marina *777 Bay in Mandan from May 15, 2011 through October 1, 2011. Entzel chose not to use the slip at the start of the agreement period in May. Due to the threat of an impending flood along the Missouri River shoreline, the city of Mandan contacted Moritz and informed Moritz that the City wanted Moritz to take precautionary action. On May 26, 2011, Moritz notified Entzel that, because of potential flooding, all boats needed to be removed from the marina. Moritz never informed Entzel that her boat could be returned to the marina, and Entzel did not use the slip during the contract period. However, other customers of Moritz began to use their slips in the marina beginning mid-June 2011 until freeze in.

[¶ 3] Entzel sued Moritz in small claims court alleging breach of contract and seeking to recover the $612 slip rental fee. Moritz removed the action to district court, arguing a force majeure clause in the contract relieved Moritz from liability, and Entzel moved for attorney fees. Following a bench trial, the district court found that the parties’ contract provided, in part:

10. The LANDLORD will not be responsible for delays in hauling, launching, winter lay-up or commissioning, occasioned by inclement weather or any other circumstances beyond its control.

(Hereinafter “paragraph 10”). The district court held “While Paragraph 10 of the written contract between the parties relieved Moritz of its responsibility to perform under the contract, it also excused Ms. Entzel from payment for services which were not provided.” The district court found Entzel had use of the slip from May 15-26, and from mid-June to the end of the contract period. The district court found that, while Entzel was not notified of the latter availability, “it should have been obvious to her had she wanted to make use of the slip at least by July 1.” The court also found that, while Entzel rented the space because she wanted access to the river during the summer of 2011, access to the river was not guaranteed by the contract.

[¶ 4] The district court concluded that the fair value of the slip during the summer of 2011 was “two-thirds of the amount charged, or $408.” It therefore ordered Moritz to refund Entzel the difference of $204. However, the district court found that “[b]oth parties prevailed to some extent,” and the court therefore denied Ent-zel’s motion for attorney fees.

II

[¶ 5] Entzel appeals from a district court opinion and a district court order. “An attempted appeal from an order for judgment will be treated as an appeal from a subsequently entered consistent judgment, if one exists.” Lund v. Lund, 2011 ND 53, ¶5, 795 N.W.2d 318 (citations omitted). A consistent judgment was subsequently entered in this case. Therefore, we will treat Entzel’s appeal as an appeal from that judgment.

[¶ 6] On appeal, Entzel argues Moritz breached the contract and the district court erred by not awarding the full amount of requested damages. In its cross-appeal, Moritz argues the court’s finding that the force majeure clause in paragraph 10 relieved Moritz of its responsibility to perform under the contract should be affirmed and the court erred in awarding damages to Entzel. A trial court’s findings of fact will not be reversed on appeal unless they are clearly erroneous. Sanders v. Gravel Products, Inc., 2008 ND 161, ¶ 7, 755 N.W.2d 826 (citing Silbernagel v. Silbernagel, 2007 ND 124, ¶ 19, 736 N.W.2d 441). “A finding of fact is clearly erroneous if it is induced by an erroneous view of the law, if there is no *778 evidence to support it, or if, after review of the entire record, we are left with a definite and firm conviction a mistake has been made.” Sanders, 2008 ND 161, ¶ 7, 755 N.W.2d 826 (citing Thompson v. Olson, 2006 ND 54, ¶ 10, 711 N.W.2d 226). “Questions of law are fully reviewable on appeal.” Wilson v. Wilson, 364 N.W.2d 113,114 (N.D.1985) (citations omitted).

[¶ 7] Breach of contract consists of “nonperformance of a contractual duty when it is due,” and the issue of whether a party breached a contract is a finding of fact. Sanders, 2008 ND 161, ¶ 7, 755 N.W.2d 826 (citation omitted). Generally, this Court’s cases have examined force majeure, also called “acts of God,” in the context of liability for negligence and liability in cases where no clause was present in a contract. However, in this case, the force majeure clause was specifically written into the contract. Black's Law Dictionary defines a force majeure clause as “[a] contractual provision allocating the risk of loss if performance becomes impossible or impracticable, especially] as a result of an event or effect that the parties could not have anticipated or controlled.” Black’s Law Dictionary 718 (9th ed.2009). According to 30 Williston on Contracts § 77.31, at 364 (4th ed.2004), a force majeure clause is equivalent to an affirmative defense. “What types of events constitute force majeure depend on the specific language included in the clause itself.” Id. “[N]ot every force majeure event need be beyond the parties’ reasonable control to still qualify as an excuse.” Id. at 367. “A party relying on a force majeure clause to excuse performance bears the burden of proving that the event was beyond its control and without its fault or negligence.” Id. at 365.

[A] force majeure clause relieves one of liability only where nonperformance is due to causes beyond the control of a person who is performing under a contract. An express force majeure clause in a contract must be accompanied by proof that the failure to perform was proximately caused by a contingency and that, in spite of skill, diligence, and good faith on the promisor’s part, performance remains impossible or unreasonably expensive.

Id. at 366.

[¶ 8] In determining the scope and effects of a clause within a contract, we apply basic rules of contract construction to leases, and a lease is usually construed most strongly against the lessor. Langer v. Bartholomay, 2008 ND 40, ¶ 12, 745 N.W.2d 649 (citations omitted).

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Bluebook (online)
2014 ND 12, 841 N.W.2d 774, 2014 WL 197806, 2014 N.D. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/entzel-v-moritz-sport-and-marine-nd-2014.