Farm Credit Bank of St. Paul v. Brakke

483 N.W.2d 167, 1992 WL 54055
CourtNorth Dakota Supreme Court
DecidedApril 21, 1992
DocketCiv.900417, 910211 and 910212
StatusPublished
Cited by21 cases

This text of 483 N.W.2d 167 (Farm Credit Bank of St. Paul v. Brakke) 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
Farm Credit Bank of St. Paul v. Brakke, 483 N.W.2d 167, 1992 WL 54055 (N.D. 1992).

Opinion

ERICKSTAD, Chief Justice.

Alice and Ronald Brakke appeal from a district court judgment quieting title to two tracts of land and permanently enjoining them from interfering with the legal owners’ use of that land. Chester and Alice Brakke also appeal from a county court judgment evicting them from one of the tracts of land. We affirm the county court judgment, and we affirm the district court judgment in part, reverse in part, and remand.

In the early 1980’s Chester and Alice were tenants in common, each holding an undivided one-half interest in the two contiguous tracts of land in Cass County involved in these actions, the Cossette land 1 and the Federal Land Bank [FLB] land. 2 Chester personally guaranteed agricultural loans made by Dakota Bank & Trust Co. of Fargo [Dakota Bank], to his son, Ronald. When Ronald defaulted on his loans, Dakota Bank sued Ronald and also commenced a separate action against Chester to recover on the guaranty.

In 1985 Dakota Bank obtained a judgment against Chester and executed on Chester’s undivided one-half interest in the two tracts of land. On February 11, 1986, Dakota Bank purchased Chester’s undivided one-half interest in the two tracts of land at a sheriff’s sale, and after the one year redemption period expired, Dakota Bank received a sheriff’s deed. Dakota Bank and Alice then each held an undivided one-half interest in the two tracts of land. However, several documents purporting to convey Chester’s interest in the two tracts of land were filed with the Cass County Register of Deeds, and in 1987, Dakota Bank commenced a quiet title and partition action to adjudicate its interest in the two tracts of land.

In Dakota Bank & Trust Co. v. Federal Land Bank, 437 N.W.2d 841 (N.D.1989) [Dakota Bank I], we affirmed a judgment quieting title to an undivided one-half interest in both tracts of land in Dakota Bank and appointing a referee to partition the land. The judgment in Dakota Bank I specified that Dakota Bank’s interest in the FLB land was subject to a mortgage given by Alice to Federal Land Bank. In Dakota Bank & Trust Co. v. Federal Land Bank, 453 N.W.2d 610 (N.D.), cert. denied, — U.S. -, 111 S.Ct. 188, 112 L.Ed.2d 151 (1990) {Dakota Bank II], we affirmed a partition judgment awarding the Cossette land to Dakota Bank and the FLB land to Alice, her successors and assigns. On *169 April 30, 1990, Dakota Bank conveyed the Cossette land to Kirk Cossette by warranty deed.

Meanwhile, the Farm Credit Bank [FCB] 3 commenced a mortgage foreclosure action against Alice to foreclose her interest in the FLB land. In Federal Land Bank v. Brakke, 447 N.W.2d 329 (N.D. 1989), we affirmed a judgment foreclosing Alice’s interest in the FLB land. FCB purchased Alice’s interest in the FLB land at a sheriff’s sale and received a sheriff’s deed on June 13, 1990.

While the partition action was pending and during the redemption period on the FLB land, various entities asserted conflicting interests in the Cossette land and the FLB land. Joane Kuball and Ronald were convicted of theft of property and attempted theft of property after they harvested some crops and attempted to harvest other crops from the two tracts of land in the summer of 1989. In State v. Brakke, 474 N.W.2d 878 (N.D.1991), this court reversed the convictions, holding that a criminal prosecution was not an appropriate means of resolving an ownership dispute between Dakota Bank and Alice, a cotenant in possession.

On January 22, 1990, Alice recorded a “Notice of Lis Pendens” on the FLB land with the Cass County Register of Deeds. The notice was signed by Alice as “co-trustee” of Pioneer Life Trust and asserted that Pioneer Life, a party in FCB’s action to foreclose Alice’s interest in the FLB land, had an interest in the FLB land. The “Notice of Lis Pendens” identified a pending federal court action in Minnesota which was subsequently dismissed. Euerle Farms v. Farm Credit Services of St. Paul, 928 F.2d 274 (8th Cir.), cert. denied, — U.S. -, 112 S.Ct. 179, 116 L.Ed.2d 141 (1991).

Additionally, a “Notice of Foreclosure and Trustee’s Sale” was published in the Fargo Forum on July 2, 9, and 16,1990. In that notice, Common Title Bond & Trust Company, “by Harold Bergman, Trustee,” sought to sell both the Cossette land and the FLB land. Bergman executed a “Trustee’s Deed,” dated July 17, 1990, which purported to convey the two tracts of land from Common Title Bond & Trust to E.L. Price Trust.

FCB and Kirk then commenced this district court action to quiet title to both tracts of land and to enjoin the defendants from interfering with their use of that land. The district court granted a temporary restraining order and a temporary injunction in July 1990, prohibiting the defendants from entering the land to harvest crops, or for any other purpose. On May 6, 1991, the district court quieted title to the FLB land in FCB and to the Cossette land in Kirk. The district court also permanently enjoined the Brakkes from interfering with FCB and Kirk’s ownership of the two tracts of land.

Meanwhile, FCB also commenced an action in county court to evict Chester and Alice from the FLB land. After a hearing on September 27, 1990, the county court ordered Chester and Alice, and all persons on the FLB land with their consent, to vacate the premises and to remove their personal property.

These consolidated appeals followed.

The Brakkes assert that neither the district court, nor the county court, had jurisdiction to hear these actions because FCB is not registered with the Secretary of State, and under Section 10-22-19, N.D.C.C., it cannot sue them in North Dakota. In Farm Credit Bank v. Rub, 481 N.W.2d 451 (N.D.1992), we recently reexamined this issue and once again concluded that FCB is a federally chartered corporation rather than a foreign corporation under Section 10-22-19, N.D.C.C., and that FCB is not required to obtain a certificate of authority from the Secretary of State in order to maintain an action in state court. The Brakkes’ argument is without merit.

Relying upon Dieter v. Fraine, 20 N.D. 484, 128 N.W. 684 (1910), the Brakkes claim that the district court and county *170 court actions violated their homestead rights under Article XI, § 22, N.D. Const. In Dieter, 128 N.W. at 686, this court held that “[a]n execution for the enforcement of a judgment obtained upon a debt not within the classes enumerated [in the predecessor statute to Section 47-18-04, N.D.C.C.] may be levied upon the homestead only in case it appears after due application to the court and an appraisement had that the property ... exceeds in value the amount of the homestead exemption.” Dieter

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Roth v. Meyer
2025 ND 116 (North Dakota Supreme Court, 2025)
Larimore Public School District No. 44 v. Aamodt
2018 ND 71 (North Dakota Supreme Court, 2018)
Holkesvig v. Welte
2012 ND 142 (North Dakota Supreme Court, 2012)
State v. Clark
2012 ND 135 (North Dakota Supreme Court, 2012)
State ex rel. Board of University & School Lands v. Alexander
2006 ND 144 (North Dakota Supreme Court, 2006)
STATE EX REL. BD. OF UNIV. v. Alexander
2006 ND 144 (North Dakota Supreme Court, 2006)
Logan v. Bush
2000 ND 203 (North Dakota Supreme Court, 2001)
State v. Gehring
2000 ND 199 (North Dakota Supreme Court, 2000)
Bouchard v. Johnson
555 N.W.2d 81 (North Dakota Supreme Court, 1996)
State v. Zahn
North Dakota Supreme Court, 1996
Magrinat v. Trinity Hospital
540 N.W.2d 625 (North Dakota Supreme Court, 1995)
Western Life Trust v. State
536 N.W.2d 709 (North Dakota Supreme Court, 1995)
Federal Land Bank of Saint Paul v. Ziebarth
520 N.W.2d 51 (North Dakota Supreme Court, 1994)
Farm Credit Bank of St. Paul v. Brakke
512 N.W.2d 718 (North Dakota Supreme Court, 1994)
Lien v. McGladrey & Pullen
509 N.W.2d 421 (South Dakota Supreme Court, 1993)
First State Bank of Goodrich v. Oster
500 N.W.2d 593 (North Dakota Supreme Court, 1993)
Hieb v. Jelinek
497 N.W.2d 88 (North Dakota Supreme Court, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
483 N.W.2d 167, 1992 WL 54055, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farm-credit-bank-of-st-paul-v-brakke-nd-1992.