Kjesbo v. Ricks

506 N.W.2d 326
CourtCourt of Appeals of Minnesota
DecidedNovember 16, 1993
DocketC9-93-160, C5-93-365
StatusPublished
Cited by1 cases

This text of 506 N.W.2d 326 (Kjesbo v. Ricks) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kjesbo v. Ricks, 506 N.W.2d 326 (Mich. Ct. App. 1993).

Opinion

OPINION

PETERSON, Judge.

In an action for tortious interference with a contract to purchase agricultural land, Randy, Karen and Valerie Ricks and Douglas Daniels appeal from a summary judgment in favor of respondent Noel Kjesbo. The Ricks and Daniels also challenge the trial court’s award of attorney fees to Kjesbo and respondent Metropolitan Life Insurance Company. Respondent Metropolitan Life Insurance Company seeks review of the trial court’s denial of its motion for attorney fees against Kjesbo. We reverse and remand.

FACTS

In 1988, respondent Metropolitan Life Insurance Company (Met Life) acquired a 320-acre tract of farm land from appellant Valerie Ricks through a deed in lieu of foreclosure. On April 17,1990, Met Life accepted respondent Noel Kjesbo’s offer to purchase the land for $165,000 subject to Valerie Ricks’ statutory right of first refusal pursuant to Minn. Stat. § 500.24, subd. 6 (1990). On May 16, 1990, Met Life sent Valerie Ricks notice of her right of first refusal.

After appellant Douglas Daniels agreed to finance the transaction, Valerie Ricks exercised her right of first refusal. On July 20, 1990, Daniels paid Met Life $16,000 in earnest money. Five days later, Daniels paid Met Life the balance of the purchase price, and Met Life conveyed the land to Valerie Ricks.

On July 27, 1990, Valerie Ricks conveyed 160 acres of the land (the northwest quarter) to her son, appellant Randy Ricks. The same day, Randy Ricks conveyed the northwest quarter to Daniels. Valerie Ricks retained legal title to the remaining 160-acre tract (the southwest quarter) and mortgaged it to Daniels as security for an $85,000 promissory note.

In early 1991, Daniels leased the southwest quarter from Valerie Ricks pursuant to an oral agreement. The lease payments were about equal to the mortgage payments.

In December 1991, Kjesbo began an action against the Ricks, Daniels and Met Life alleging a violation of Minn.Stat. § 500.24. An amended complaint was filed on January 24, 1992 adding the following causes of action: (1) tortious interference with a contract; (2) breach of contract against Met Life; and (3) negligence against Met Life.

In September 1992, Valerie Ricks conveyed the southwest quarter to Randy Ricks, and Daniels conveyed the northwest quarter to Randy Ricks. The Ricks and Daniels allege that their intent all along was to enable Randy Ricks to acquire the family farm. They claim that financial difficulties involving the Federal Deposit Insurance Corporation prevented him from purchasing the farm in 1990. According to Randy Ricks, upon resolving his financial difficulties in May 1992, he began trying to obtain financing to acquire the farm. He obtained the financing in September 1992.

Kjesbo filed a motion for summary judgment, and Met Life filed a cross-motion for summary judgment seeking dismissal of all claims against it. The trial court granted Kjesbo’s motion for summary judgment against the Ricks and Daniels on the tortious interference claim and dismissed the statutory violation claim as moot. The trial court also granted Met Life’s motion for summary judgment and dismissed it from the action. Ricks and Daniels appeal from the summary judgment in favor of Kjesbo.

The trial court ordered the Ricks and Daniels to pay Met Life attorney fees based on Met Life’s purchase agreement with Valerie *329 Ricks. The purchase agreement between Kjesbo and Met Life provides that the successful party in any proceeding relating to the agreement is entitled to attorney fees. A copy of the agreement was attached to the notice of statutory right of first refusal sent to Valerie Ricks, and the notice provides that Valerie Ricks may purchase the land under the terms of the agreement between Kjesbo and Met Life. The Ricks and Daniels appeal from the award of attorney fees to Met Life. Met Life seeks review of the trial court’s denial of its motion for an award 'of attorney fees against Kjesbo.

The trial court also ordered the Ricks and Daniels to pay Kjesbo attorney fees. The Ricks and Daniels appeal from this decision.

ISSUES

I. Did the trial court err in ordering summary judgment in favor of Kjesbo on the tortious interference claim?

II. Did the trial court err by requiring the Ricks and Daniels to pay attorney fees to Met Life and Kjesbo and denying Met Life’s motion for attorney fees against Kjesbo?

ANALYSIS

I.

On appeal from a summary judgment, this court must examine the record to determine whether any genuine issues of material fact exist and whether the trial court erred in applying the law. Offerdahl v. University of Minn. Hosps. & Clinics, 426 N.W.2d 425, 427 (Minn.1988). This court must view the evidence in the light most favorable to the nonmoving party. Id. “Statutory construction is a question of law and is subject to de novo review on appeal.” Whetstone v. Hossfeld Mfg. Co., 457 N.W.2d 380, 382 (Minn.1990).

The elements of a claim for tortious interference with a contract are:

(1) the existence of a contract; (2) the alleged wrongdoer’s knowledge of the contract; (3) an intentional interference with the contract (4) without justification; and (5) damages.

Schumacher v. Ihrke, 469 N.W.2d 329, 332 (Minn.App.1991). The Ricks and Daniels dispute the existence of each element.

Existence of contract.

The evidence that Met Life accepted Kjesbo’s offer to purchase the land is sufficient to establish the existence of a contract for purposes of a tortious interference claim. See id. (purchase agreement contingent on preceding owner’s declining to exercise statutory right of first refusal constituted contract for purposes of tortious interference claim).

Knowledge of contract.

The Ricks admit their awareness of the agreement between Kjesbo and Met Life. Daniels admits only that he knew a third party had offered to purchase the land from Met Life. Viewing the evidence in the light most favorable to Daniels, he may not have been aware that Met Life had accepted the offer subject to Valerie Ricks’ right of first refusal. Therefore, the trial court erred in concluding that Daniels was aware of the contract as a matter of law.

Intentional interference.

Interference includes

any act injuring or destroying persons or property which retards, makes more difficult, or prevents performance, or makes performance of a contract of less value to the promisee.

Id. (quoting Royal Realty Co. v. Levin, 244 Minn. 288, 291 n. 5, 69 N.W.2d 667, 671 n. 4 (1955)). Knowledge may establish intentional interference:

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Related

Kjesbo v. Ricks
517 N.W.2d 585 (Supreme Court of Minnesota, 1994)

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Bluebook (online)
506 N.W.2d 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kjesbo-v-ricks-minnctapp-1993.