Smestad v. Harris

2012 ND 166, 820 N.W.2d 363, 2012 WL 3516864, 2012 N.D. LEXIS 174
CourtNorth Dakota Supreme Court
DecidedAugust 16, 2012
DocketNo. 20120051
StatusPublished
Cited by12 cases

This text of 2012 ND 166 (Smestad v. Harris) 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
Smestad v. Harris, 2012 ND 166, 820 N.W.2d 363, 2012 WL 3516864, 2012 N.D. LEXIS 174 (N.D. 2012).

Opinions

CROTHERS, Justice.

[¶ 1] Bruce G. Harris appeals a district court judgment awarding Linda A. Smes-tad $30,025 plus interest on the theory of unjust enrichment. Harris argues the district court erred by (1) deciding the issue remanded without notifying Harris or holding a hearing, (2) considering unjust enrichment because Smestad’s complaint did not include an unjust enrichment claim and (3) finding Smestad proved unjust enrichment. We affirm.

I

[¶ 2] Our prior decision in this case contains the relevant facts, and we will not repeat them except as necessary to resolve the issues raised in this appeal. See Smestad v. Harris (“Smestad I”), 2011 ND 91, 796 N.W.2d 662. Smestad and Harris were involved in a personal and business relationship from spring 2007 through late 2008. Harris owned and operated Oasis Water Systems, Inc. During the relationship, Smestad wrote numerous checks to Harris, Oasis and others on behalf of Harris and Oasis. After the relationship ended, Smestad brought an action seeking repayment of more than $112,000 in loans she made to Harris and Oasis. Following a bench trial, the district court found Harris orally agreed to repay Smestad some of the loans to Harris and awarded Smestad $30,025 plus interest. Harris appealed.

[¶ 3] In Smestad I, we affirmed in part, reversed in part and remanded for further proceedings. We concluded the district court’s finding of an oral agreement was not clearly erroneous and further concluded the oral agreement was unenforceable under the statute of frauds, N.D.C.C. § 9-06-04(4), because the aggregate amount of the loan exceeded $25,000. Noting Smes-tad’s complaint sought “such other and further relief as the Court deems just and equitable,” we remanded for determination whether Smestad had requested equitable relief against Harris that must be considered by the district court. We recognized the district court judge who decided Smes-tad I had retired and stated the district court would either need to make an N.D.R.Civ.P. 63 certification before conducting further proceedings or order a new trial.

[¶ 4] On remand, the new judge certified familiarity with the record and determined she could proceed without prejudicing the parties. The district court determined no additional proceedings were necessary and relied on the record to resolve the case. In an order dated September 23, 2011, the district court found Smestad was entitled to equitable relief under the theory of unjust enrichment. The next document in the record is a “Proposed Judgment” filed November 8, 2011. The record is not clear who filed the document. On November 17, [367]*3672011, the district court filed a judgment ordering Harris to pay Smestad $30,025 plus interest. On November 17, 2011, Smestad mailed Harris notice of entry of judgment.

[¶ 5] On November 30, 2011, Harris filed a “Motion for Relief and Motion for New Trial,” in which he argued the district court judgment was erroneous for several reasons, including that he did not have the opportunity to present additional evidence or argument on remand and that he did not learn of the judgment until it was published on the North Dakota Supreme Court website. Harris included with the motion a “Defendant’s Affidavit of Service by Publication,” in which he stated, “[T]he defendant had no actual notice or knowledge of the Proposed Judgment action to enable the defendant to make application to defend before the entry of judgment.” The district court denied the motion.

II

[¶ 6] Harris argues the district court erred by deciding the issue remanded without holding an additional hearing and by failing to notify him of its decision before filing the judgment. Smestad responds that no additional proceedings were necessary on remand and asserts Harris’ arguments regarding the district court’s failure to hear additional evidence are an attempt to relitigate the case.

[¶ 7] Absent specific instructions from this Court, a district court deciding an issue on remand must exercise its discretion when determining the procedure to follow. As we stated in Livinggood v. Balsdon,

“When this Court specifies a defect to be cured and remands for redetermination of an issue without specifying the procedure to be followed, the trial court need only rectify the defect in a manner consistent with our opinion and conformable to law and justice.... Thus, when we reverse and remand for a trial court to address an issue ... unless otherwise specified, the trial court may decide based on the evidence already before it or may take additional evidence. The decision on taking additional evidence will be reversed only if the trial court abused its discretion.”

2006 ND 215, ¶ 5, 722 N.W.2d 716 (quoting Kautzman v. Kautzman, 2000 ND 116, ¶ 7, 611 N.W.2d 883 (internal citations omitted)). “A district court abuses its discretion if it acts in an arbitrary, capricious, or unreasonable manner, or if it misinterprets or misapplies the law.” Thompson v. Schmitz, 2009 ND 183, ¶ 19, 774 N.W.2d 263.

[¶ 8] On remand, the new district court judge relied on the record, including the trial transcript and the findings of the previous district court judge, to determine whether Smestad was entitled to equitable relief. We note that the better practice would have been to notify the parties and to determine on the record whether the parties thought a hearing or an opportunity to present additional evidence was necessary. However, as we explain below, the record contained sufficient information to support the district court’s finding that Smestad was entitled to restitution for unjust enrichment, and we cannot conclude the district court abused its discretion by relying on the record.

Ill

[¶ 9] Harris argues the district court erred by considering whether Smes-tad was entitled to equitable relief because Smestad’s complaint did not include an unjust enrichment claim. Smestad responds the district court properly considered whether she was entitled to equitable relief because her complaint included a [368]*368demand for “such other and further relief as the Court deems just and equitable.”

[¶ 10] The district court did not specifically address the question whether Smestad requested equitable relief. However, by concluding Smestad was entitled to relief for unjust enrichment, the court impliedly found that Smestad asserted that claim for relief. Under N.D.R.Civ.P. 8(a), a complaint need contain only “(1) a short and plain statement of the claim showing that the pleader is entitled to relief; and (2) a demand for the relief sought, which may include relief in the alternative or different types of relief.” The purpose of N.D.R.Civ.P. 8(a) is to give a defendant notice of the nature of a plaintiffs claims. Estate of Hill, 492 N.W.2d 288, 296 (N.D.1992).

[¶ 11] Recognizing the purpose of our notice pleading requirements, we have stated the district courts “have jurisdiction to provide a remedy where none exists at law — even if the parties have not specifically requested an equitable remedy— whenever the pleadings sufficiently give notice of the party’s right and demand a judgment pursuant to Rule 8, NDRCivP.” Estate of Hill, 492 N.W.2d at 296.

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Cite This Page — Counsel Stack

Bluebook (online)
2012 ND 166, 820 N.W.2d 363, 2012 WL 3516864, 2012 N.D. LEXIS 174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smestad-v-harris-nd-2012.