In Re Estate of Thompson

2008 ND 144, 752 N.W.2d 624, 2008 N.D. LEXIS 142, 2008 WL 2789116
CourtNorth Dakota Supreme Court
DecidedJuly 21, 2008
Docket20070294
StatusPublished
Cited by18 cases

This text of 2008 ND 144 (In Re Estate of Thompson) 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
In Re Estate of Thompson, 2008 ND 144, 752 N.W.2d 624, 2008 N.D. LEXIS 142, 2008 WL 2789116 (N.D. 2008).

Opinion

VANDE WALLE, Chief Justice.

[¶ 1] William Thompson appeals from a district court judgment entered in the probate of his mother’s estate after the district court found he failed to prove he had an oral contract for deed to buy land from his parents, Ardmore and Elsie Thompson. We hold the district court’s finding there was no oral contract for the sale of the land is not clearly erroneous, and we affirm.

I

[¶ 2] When Ardmore Thompson died in 2000, he and Elsie Thompson were the record title owners of approximately 1,180 acres of farm and ranch land in Adams County, which thereafter remained titled in Elsie Thompson’s name as the surviving joint tenant. Elsie Thompson died in 2004. Her 1983 will, which generally devised her property to her four children, was admitted to probate, and her daughter, Andrea Thompson, was appointed personal representative of her mother’s estate. In 2006, the personal representative petitioned the district court for an order compelling Elsie Thompson’s son, William Thompson, to account for and deliver his mother’s assets to the estate. William Thompson answered, claiming he had entered into an oral contract for deed to buy his parents’ land in 1983; he had substantially complied with the terms of the oral contract for deed; and he was entitled to specific performance of the contract, i.e., a deed for the land from his mother’s estate.

[¶ 3] According to William Thompson, he returned to his parents’ farm from military duty in 1963, and he farmed and ranched with them for several years on a share basis, but he never received any compensation from them because “[t]hey had no money so there was nothing to get.” In 1969, William Thompson bought land from a third party and started his own farming and ranching operation, but he also continued working with his parents on a share basis without ever receiving any compensation from them. William Thompson testified he offered to buy his parents’ land on several occasions, but his father would not agree to sell the land. William Thompson claimed that in 1983, his father eventually offered to sell him the 1,180 acres for $150 per acre for a total price of $177,000, plus 6 percent interest, and he counter-offered for $125 per acre for a total purchase price of $147,500, plus 7 percent interest. William Thompson testified that he and his parents agreed at the kitchen table to his father’s offer, which included the sale of cattle and machinery to William Thompson, and which permitted his parents to retain one-half of the oil leases for the land, to use the machinery, and to live on the homestead. William Thompson claimed the parties’ agreement required him to pay for the land with 40 percent of the yearly proceeds from his cattle sales. Although the parties did not execute a written agreement or deed, William Thompson introduced evidence of his father’s initial offer and the counter-offer written on scraps of paper, which William Thompson discovered after his father’s death.

*627 [¶ 4] There was no evidence that either William Thompson or his parents kept records of any payments by William Thompson for the purchase of the land. However, William Thompson presented evidence that proceeds from cattle sales were deposited into Ardmore Thompson’s bank account through 1999. William Thompson testified he paid all the expenses related to the cattle, his father received all the proceeds from the sale of his father’s cattle, and William Thompson paid his father 40 percent of the proceeds from the sale of William Thompson’s cattle as payment for the land. According to William Thompson, he completed payments of principal and interest for the land sometime in 1990 or 1991; he paid approximately $402,000 to his parents from 1983 to 1999; and he initially paid more per year than required by the parties’ agreement and continued making payments to his parents until 1999 because they needed the money.

[¶ 5] William Thompson testified he immediately took over management and operation of the farm and ranch in 1983, obtained crop insurance and liability insurance, and paid about $50,000 in real estate taxes on the land through 2005. In 1984, William Thompson applied to the Agricultural Stabilization and Conservation Service to reconstitute his bases for his farming operation to include the 1,180 acres, and the documentation for the application did not reflect that the 1,180 acres was leased. In financial statements regarding his farming and ranching operation, William Thompson referred to a contract for deed with his parents as a long-term debt. In 1985, Southwest Water Pipeline Authority obtained an easement across part of the land, which was signed as grantors by Ardmore and Elsie Thompson and by William Thompson and his wife and which included a notation that the land was not rented. William Thompson made improvements to the property while he was in possession of the land, including burying electrical lines to the homestead, installing water lines and a well for the homestead, and maintaining fencing. William Thompson testified that after the purchase agreement with his parents, his father quit raising cattle, and in 1986, his father transferred his cattle brand to William Thompson. According to William Thompson, on several occasions he suggested to his father that they execute a written contract for the sale of the land, but his father would “[t]urn around and walk away.”

[¶ 6] Ardmore and Elsie Thompson’s tax returns from 1983 through 2000 did not report a sale of the land to William Thompson or any interest payments received from William Thompson, and the parents depreciated the farm buildings on those returns. The parents’ tax returns also reported farm rental income, and their tax preparer testified he was never informed that any of the land had been sold. Ardmore and Elsie Thompson’s tax returns also reported the livestock sales as ordinary income from the sale of cattle.

[¶ 7] In 1989, Ardmore Thompson executed a will in which he left “[a]ll of my real estate which I may own at the time of my demise” to his four children and to William Thompson’s wife in equal shares. In 1997, Ardmore Thompson executed a quit claim deed, placing the land in joint tenancy with Elsie Thompson. There was evidence that shortly before his death, Ardmore Thompson gave a bill of sale for his livestock to William Thompson, acknowledging the livestock had been paid for in full, and William Thompson made no further payments of cattle proceeds to Elsie Thompson after Ardmore Thompson’s death in 2000.

[¶ 8] After a bench trial, the district court found William Thompson failed to prove by clear and definite proof that he had an oral contract for deed to buy the *628 land from his parents. The court found that William Thompson failed to prove his payments to his parents were for the purchase of the land and that the consent necessary for an agreement between the parties was lacking. The court found William Thompson’s possession of the land was consistent with a lease; William Thompson’s improvements to the land were not valuable, substantial, and permanent and were equally consistent with a lease; William Thompson’s financial statements conflicted with claimed payments for the land in several respects, and his payments appeared to apply to the cattle arrangement and lease payments and not to a land purchase; and Ardmore Thompson walked away from William Thompson when William Thompson suggested the need for a written contract, which established Ardmore Thompson did not agree to sell the land to William Thompson.

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Cite This Page — Counsel Stack

Bluebook (online)
2008 ND 144, 752 N.W.2d 624, 2008 N.D. LEXIS 142, 2008 WL 2789116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-thompson-nd-2008.