First National Bank of Crosby v. Bjorgen

389 N.W.2d 789, 1986 N.D. LEXIS 349
CourtNorth Dakota Supreme Court
DecidedJune 19, 1986
DocketCiv. 11138
StatusPublished
Cited by65 cases

This text of 389 N.W.2d 789 (First National Bank of Crosby v. Bjorgen) 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
First National Bank of Crosby v. Bjorgen, 389 N.W.2d 789, 1986 N.D. LEXIS 349 (N.D. 1986).

Opinion

ERICKSTAD, Chief Justice.

Lyle Bjorgen, the defendant, appeals from a district court order dismissing his motion to set aside the partial summary judgment pursuant to Rule 60(b), N.D.R. Civ.P. We affirm.

On January 10, 1983, Bjorgen executed a note in favor of First National Bank of Crosby in the amount of $90,000. To secure this note Bjorgen executed a mortgage covering the following described real estate located in Divide County, North Dakota:

“All of Mortgagors interest in the oil, gas and minerals in and under the following property:
SE'A: 24-163-103 S'ASW'/j: 35-164-103
E'/fi 23-163-103 Lots 2, 3, 4, and SW'ANW'/i: 2-163-103 and the E‘A SE'A: 2-163-103"

This note was also secured by a security agreement covering a 1982 Lincoln Mark VI Continental four-door automobile and a 1982 Datsun 200 SX two-door automobile. 1 On February 18, 1983, Bjorgen executed another note in favor of the Bank in the amount of $10,000. This note was also secured by the above mortgage and security agreement. Both of these notes were due December 15, 1983.

On August 29, 1983, the Bank filed, and on September 7, 1983, had served upon Bjorgen, a complaint alleging that “[although plaintiff has demanded, defendant has refused and continues to refuse to pay plaintiff ... the sum of One Hundred Thousand and no/100 Dollars ($100,-000.00)” and, therefore, judgment should be entered against the defendant for the *791 sum of $100,000. The Bank also filed and served a motion for a writ of attachment pursuant to Section 32-08. l-03(l)(a), (b), (c), and (e), N.D.C.C. 2 This writ of attachment was granted by the district court on August 30, 1983.

Bjorgen answered the complaint by alleging that the notes in question had not yet become due and counterclaimed for damages allegedly incurred by Bjorgen “as a result of unlawful and unreasonable action of the Plaintiff in instituting an action to collect notes not yet mature, and not insecure.”

On January 16, 1984, the Bank served, and on January 19, 1984, filed a motion to amend the complaint pursuant to Rule 3.2, NDROC, alleging that the notes in question had become due but had gone unpaid. Bjorgen did not respond to this motion. The Bank also informed Bjorgen of its intent to make a motion for summary judgment at a hearing which was subsequently scheduled and held on April 9, 1984. After considering affidavits, receiving briefs, and hearing oral arguments the court granted, on April 7, 1984, the Bank’s motion to amend the complaint, and on April 10,1984, its motion for summary judgment. Judgment was entered in favor of the Bank in the amount of $118,579.45 on May 4, 1984, and notice of the entry of judgment and certified copy of the judgment were served on Bjorgen’s attorney on May 30, 1984.

In support of his resistance to the Bank’s motion for summary judgment, Bjorgen argued that the Bank’s premature action against the notes was unreasonable and unlawful and “made it impossible for the defendant to pay the notes when they did become due.” The court, however, concluded that Bjorgen’s counterclaim for damages incidental to the issuance of the writ of attachment should be severed and addressed in a separate trial. 3

On September 14, 1984, a writ of execution was issued by the clerk of the district court. The sheriff of Divide County then levied upon the attached personal property of Bjorgen which included 10,000 shares of stock in the Bank. This stock was sold for the amount of $17,000 and applied to partially satisfy the judgment. The sheriff next levied upon the following property of Bjorgen previously attached by the Bank:

“All of defendant’s right, title and interest in and to the following described tracts of real property situated in Divide County, North Dakota:
“Township 163 North, Range 102 West, 5th P.M.
Section 6: SVzNE’A; Lots 1 and 2, SE'/i
“Township 163 North, Range 103 West, 5th P.M.
Section 14: S'hSW'M
Section 23: NE'/¾ NW'A, N'/sSW'/j
*792 Section 24: SE'A
“Township 164 North, Range 102 West, 5th P.M.
Section 81: Lot 1, NE'ANW1/:, NW'/iNE'/i, E'/bSE'/i,
S'ANEVi, with the exception of the West 350 feet of the SW'/iNE'/i
“The undivided interest of Lyle Bjorgen in the following described real property, to-wit:
“Township 163 North, Range 103 West, 5th P.M.
Section 2: SW'/WWA, Lots 2, 3 and 4"

This property 4 was sold to the Bank at sheriffs sale on November 27, 1984, for the amount of $324,265.12. The sheriff disbursed the proceeds of the sale as follows:

“Remaining amount of the judgment plus interest to date of sale upon the judgment debt $111,069.94
Fees for publication of notice of sale 73.95
Cost of land appraisal 375.00
Payoff of first lien held by Farmers Home Administration 212,740.23
Fees of clerk of court to issue special execution 6.00
Total amount due plaintiff $324,265.12
Sheriffs fees 25.00
Total judgment, interest and costs $324,290.12
Less credit for escrow payment held by bank $ 2,520.00
Amount of bid $321,770.12”

The trial court entered an order confirming the sale on July 30, 1985.

At no time during any of these proceedings before the district court or during the levy upon and execution sale of the personal and real property did Bjorgen assert that the Bank’s action controvened Section 32-19-07, N.D.C.C.

However, on October 15,1985, more than 17 months after the judgment was entered and more than 10 months after the sheriffs sale of the afore described property, Bjorgen, through a new attorney, filed a motion to set aside the partial summary judgment pursuant to Rule 60(b)(iv) and (vi), N.D.R.Civ.P. In his brief in support of the motion, Bjorgen argued that the Bank’s initial action was not proper because it was maintained on the notes instead of the real estate mortgage which Bjorgen alleged violated Section 32-19-07, N.D.C.C. 5 Bjorgen further argued that as the action maintained by the Bank was in violation of 32-19-07, it should be set aside as void pursuant to 60(b)(iv). Bjorgen cited H & F Hogs v. Huwe, 368 N.W.2d 553

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Bluebook (online)
389 N.W.2d 789, 1986 N.D. LEXIS 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-of-crosby-v-bjorgen-nd-1986.