John Meehan, in his capacity as the Executor of the Estate of Callie Jo Meehan v. Hazen Bancorporation, Inc., Harvey Huber, Kathleen Huber, Christie Obenauer, Stephanie Huber, Shari Stroup, Seth Stroup, and Noah Stroup

District Court, D. North Dakota·Decided August 28, 2026·No. 1:26-cv-00122·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NORTH DAKOTA

John Meehan, in his capacity ) as the Executor of the Estate ) of Callie Jo Meehan, ) ) Plaintiff, ) ORDER GRANTING DEFENDANTS’ ) MOTION TO DISMISS v. ) ) Hazen Bancorporation, Inc., Harvey ) Huber, Kathleen Huber, Christie ) Obenauer, Stephanie Huber, Shari ) Case No.: 1:26-cv-00122 Stroup, Seth Stroup, and Noah Stroup, ) ) Defendants. )

Before the court is a Motion to Dismiss for Failure to State a Claim (Doc. No. 19) filed by Defendants Hazen Bancorporation, Inc., Harvey Huber, Kathleen Huber, Christie Obenauer, Stephanie Huber, Shari Stroup, Seth Stroup, and Noah Stroup (collectively “Defendants”) on May 29, 2026. Plaintiff John Meehan, in his capacity as the Executor of the Estate of Callie Jo Meehan (“Plaintiff”) filed a response in opposition on June 26, 2026. (Doc. No. 22). Defendants filed a reply on July 10, 2026. (Doc. No. 23). I. BACKGROUND The following facts are taken from the parties’ motions, pleadings, and supporting documents. The facts are presumed to be true for purposes of this order. On April 21, 2026, Plaintiff initiated the above-captioned action by Complaint. (Doc. No. 1). Therein, Plaintiff asserted claims against Defendants for: (1) declaratory judgment; (2) breach of fiduciary duties-directors; (3) breach of fiduciary duties-shareholders; and (4) damages under North Dakota’s Racketeer Influenced Corrupt Organizations (“RICO”) law based on Defendants’ alleged fraud and theft. (See generally Id.). Callie Jo Meehan (“Meehan”) owned 1,711 shares of common stock in the Hazen Bancorporation, Inc. (Id. at 3). She and the other owners of common stock were subject to the terms and conditions of Hazen Bancorporation, Inc.’s Stock Buy-Sell Agreement. (Id.). Meehan suffered from illness, and in the summer of 2024, re-registered her shares through the issuance of three certificates made out to: (1) Callie Meehan T.O.D. Grace Meehan; (2) Callie

Meehan T.O.D. Claire Meehan; and (3) Callie Meehan T.O.D. Peter Meehan (collectively “Meehan children”). (Id. at 3-4). On November 2, 2024, Meehan passed away. (Id. at 4). Based on its reading of the Stock Buy-Sell Agreement, Hazen Bancorporation, Inc. believed the shares passed to the named beneficiaries immediately upon Meehan’s death. (Id.). However, Plaintiff alleged that Hazen Bancorporation, Inc.’s actions proved otherwise, as it did not make December 2024 or subsequent distributions to Meehan’s children (i.e., Grace, Claire, and Peter) but instead waited to make them until July 2025. (Id.). The children’s stock certificates were not entered into the books upon Meehan’s passing, nor were they provided with information on Hazen Bancorporation, Inc., or invited to shareholder or other meetings. (Id.).

Plaintiff believed that, based on the Stock Buy-Sell Agreement and North Dakota law, the Estate was the rightful owner of the stock from November 3, 2024, to June 30, 2025, and during this period, he had legal possession of the shares as Executor of the Estate. (Id. at 5). Since Meehan’s death, the Estate has been denied rights as a shareholder, deprived of distributions owed, denied the right to participate or vote at shareholder meetings, denied access to books and records, and neither given nor notified of the opportunity to exercise the option to purchase shares upon the death of shareholder Charles Stroup as provided by the Stock Buy-Sell Agreement. (Id. at 5-6). II. LEGAL STANDARD A motion to dismiss may be brought under Federal Rules of Civil Procedure 12(b)(6) for “failure to state a claim upon which relief can be granted.” “To survive a Rule 12(b)(6) motion, a complaint must contain ‘sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.’” FastTrac Transportation, LLC v. Pedigree Techs., LLC, 618 F.Supp.3d

858, 863 (D.N.D. 2022) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). “[A] formulaic recitation of the elements of a cause of action will not do.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007). In ruling on the motion, the court must accept the factual allegations in the complaint as true and construe them in a light most favorable to the nonmoving party. Bohan v. Honeywell Intern., Inc., 366 F.3d 606, 608 (8th Cir. 2004). Matters outside the pleadings may not be considered by the court when deciding a Rule 12(b)(6) motion, but documents embraced by the complaint may be considered. Zean v. Fairview Health Servs., 858 F.3d 520, 526 (8th Cir. 2017); see Enervations, Inc. v. Minnesota Mining & Mtg. Co., 380 F.3d 1066, 1069 (8th Cir. 2004).

While courts primarily consider the allegations in the complaint in determining whether to grant a Rule 12(b)(6) motion, courts additionally consider “matters incorporated by reference or integral to the claim, items subject to judicial notice, matters of public record, orders, items appearing in the record of the case, and exhibits attached to the complaint whose authenticity is unquestioned;” without converting the motion into one for summary judgment. Miller v. Redwood Toxicology Lab., Inc., 688 F.3d 928, 931 n. 3 (8th Cir. 2012) (quoting 5B Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1357 (4th ed. 2024)). III. DISCUSSION In support of the Motion to Dismiss for Failure to State a Claim, Defendants argue that at no time was the Estate a shareholder in Hazen Bancorporation, Inc., and so Defendants owed no duty to the Estate, and Plaintiff has failed to allege a plausible claim under RICO. In response, Plaintiff contends that Defendants improperly interpreted the North Dakota Century Code and requests the motion be dismissed in its entirety. 1. The Estate as a Shareholder in Hazen Bancorporation, Inc. Plaintiff’s Complaint largely centers on the argument that from November 3, 2024, through June 30, 2025, the Estate owned Meehan’s share of stock in Hazen Bancorporation, Inc.

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John Meehan, in his capacity as the Executor of the Estate of Callie Jo Meehan v. Hazen Bancorporation, Inc., Harvey Huber, Kathleen Huber, Christie Obenauer, Stephanie Huber, Shari Stroup, Seth Stroup, and Noah Stroup, (D.N.D. 2026).

John Meehan, in his capacity as the Executor of the Estate of Callie Jo Meehan v. Hazen Bancorporation, Inc., Harvey Huber, Kathleen Huber, Christie Obenauer, Stephanie Huber, Shari Stroup, Seth Stroup, and Noah Stroup (John Meehan, in his capacity as the Executor of the Estate of Callie Jo Meehan v. Hazen Bancorporation, Inc., Harvey Huber, Kathleen Huber, Christie Obenauer, Stephanie Huber, Shari Stroup, Seth Stroup, and Noah Stroup) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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