Jorgensen v. Crow

466 N.W.2d 120, 1991 N.D. LEXIS 8, 1991 WL 21521
CourtNorth Dakota Supreme Court
DecidedFebruary 21, 1991
DocketCiv. 900296
StatusPublished
Cited by28 cases

This text of 466 N.W.2d 120 (Jorgensen v. Crow) 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
Jorgensen v. Crow, 466 N.W.2d 120, 1991 N.D. LEXIS 8, 1991 WL 21521 (N.D. 1991).

Opinion

LEVINE, Justice.

Beulah Jorgensen appeals from a judgment dismissing her amended complaint to cancel a warranty deed and contract for deed, and granting a money judgment to Leslie Crow and Donna Crow for pasture rental. We reverse and remand for entry of judgment.

This appeal involves a sale of ranchland. Beulah Jorgensen and her late husband, John, 1 agreed to sell 1040 acres of ranch-land to their nephew, Leslie Crow, and his wife. After an appraisal by the Federal Land Bank of Dickinson (FLB) setting the value of this land at $153,000, the Crows applied for a loan of $93,000 from FLB. The Crows’ loan application indicates a purchase price of $150,000, with an $85,000 cash payment financed by FLB and a contract for deed from the Jorgensens covering the $65,000 balance. The application also shows that the Crows intended to operate the land as landlords, renting it to Beulah Jorgensen.

In preparation for the sale, Beulah Jor-gensen had an attorney prepare a warranty deed and a contract for deed. After reviewing the deed and contract for deed, she returned the contract to the attorney for redrafting to include a mineral reservation. The warranty deed was not changed. Pri- or to the loan closing, Beulah and John Jorgensen signed the warranty deed and contract for deed. At the January 31,1985 closing, Leslie and Donna Crow signed the contract for deed, which called for equal yearly installments of $10,128.31, payable the first of each year, until the $65,000 balance had been paid with interest. The contract also provided that the Jorgensens would convey title to the land by warranty deed when the contract was completed and the Crows had fulfilled its provisions. The contract for deed was recorded the day of the closing.

Beulah Jorgensen attended the loan closing and sat at a conference table with the *122 Crows and a FLB loan officer. The warranty deed was on the table at the closing. Leslie Crow picked it up, examined it, and put it with his loan papers. Crow took the deed when he left the closing.

In 1985, Jorgensen used the property to pasture her cattle, and in exchange, the Crows asked for and were given a receipt for the 1985 land payment of $10,128.31. The Crows recorded the warranty deed in February 1986. In 1986 and 1987, Jorgen-sen pastured her cattle on the ranchland, but she did not give the Crows receipts showing satisfaction of the yearly contract installment payment.

In May 1988, Jorgensen put her cattle on the property. The Crows attempted to remove the cattle, claiming that Jorgensen had no right to use the property. Jorgen-sen brought this action, asking that the recorded warranty deed be set aside. Jor-gensen also sought, and received, a temporary restraining order preventing the Crows from interfering with her use of the land.

The Crows answered, claiming that the warranty deed had been delivered to them and that they had satisfied the contract for deed. They counterclaimed for damages covering Jorgensen’s occupation of the land in 1988, and sought a restraining order excluding Jorgensen from the land. After a hearing, the trial court dissolved Jorgensen’s restraining order and entered an order restraining Jorgensen from interfering with the Crows’ use of the land. Jorgensen filed an amended complaint, adding a request for reformation of the deed to include a mineral reservation. The parties stipulated to the addition of the mineral reservation.

After a bench trial, during which Jorgen-sen and the Crows testified, the trial court found that the warranty deed had been delivered to Leslie Crow and that Jorgen-sen failed to rebut the presumption that the delivery was lawful. The court also found that the purchase price was $85,000 in cash and three years’ use of the pasture by Jorgensen, and that Jorgensen had received full payment. Finally, the court found that the parties had stipulated that the deed should include a mineral reservation. The trial court dismissed Jorgensen’s complaint, quieted title in the Crows, entered a judgment against Jorgensen for the value of pasture usage during the 1988 season, and reformed the deed to include a mineral reservation.

Jorgensen appeals, raising several issues, two of which are dispositive. Jorgen-sen contends that the court’s finding that the warranty deed had been delivered "to Leslie Crow is clearly erroneous. She also argues that the court erred in applying the parol evidence rule.

The trial court found that the warranty deed had been delivered to the Crows. The question of whether there was actual or constructive delivery of a deed is a question of fact. First Nat’l Bank v. Bloom, 264 N.W.2d 208 (N.D.1978). Findings of fact shall not be set aside unless clearly erroneous. NDRCivP 52(a). A finding of fact is clearly erroneous when, although there is some evidence to support it, the reviewing court is left with a definite and firm conviction that a mistake has been made. Peterson v. Front Page, Inc., 462 N.W.2d 157 (N.D.1990).

The interest transferred by a deed does not vest until there is a delivery of the deed. NDCC § 47-09-06. Absent a delivery of the deed, the deed is of no effect. Bloom, supra. The recording of a deed may create a rebuttable presumption of its delivery to, and its acceptance by, the grantee. CUNA Mortgage v. Aafedt, 459 N.W.2d 801 (N.D.1990). The presumption must be rebutted with clear and convincing evidence. Adams v. Little Missouri Min. Assoc., 143 N.W.2d 659 (N.D.1966). However, the fact a grantee has possession of a deed does not mean that there was a delivery, unless the grantor intended delivery. Arhart v. Thompson, 75 N.D. 569, 31 N.W.2d 56 (1948). There must be some act or declaration from which an intent to pass title may be inferred. Shuck v. Shuck, 77 N.D. 628, 44 N.W.2d 767 (1950).

Leslie Crow testified that he picked up the signed warranty deed during the loan closing, examined it, and placed it *123 with his papers. Jorgensen, however, testified that she did not give the warranty deed or intend to deliver it to the Crows at the loan closing. There was also written evidence that Jorgensen did not intend to deliver the deed. The contract for deed that the Crows signed at the loan closing stated that the warranty deed would be conveyed “[w]hen the contract is completed and the provisions are fulfilled....” When two instruments have been executed at the same time, by the same parties, in the course of the same transaction, and covering the same subject matter, they must be read and construed together. Trengen v. Mongeon, 206 N.W.2d 284 (N.D.1973). Under the terms of the contract for deed and the warranty deed, the Crows were not entitled to the deed until full consideration had been given.

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Cite This Page — Counsel Stack

Bluebook (online)
466 N.W.2d 120, 1991 N.D. LEXIS 8, 1991 WL 21521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jorgensen-v-crow-nd-1991.