University Hotel Development, LLC v. Dusterhoft Oil, Inc.

2006 ND 121, 715 N.W.2d 153, 2006 N.D. LEXIS 123, 2006 WL 1515547
CourtNorth Dakota Supreme Court
DecidedJune 1, 2006
Docket20050386
StatusPublished
Cited by10 cases

This text of 2006 ND 121 (University Hotel Development, LLC v. Dusterhoft Oil, Inc.) 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
University Hotel Development, LLC v. Dusterhoft Oil, Inc., 2006 ND 121, 715 N.W.2d 153, 2006 N.D. LEXIS 123, 2006 WL 1515547 (N.D. 2006).

Opinion

SANDSTROM, Justice.

[¶ 1] University Hotel Development (“UHD”) appeals from a summary judgment dismissing its promissory estoppel claim against Dusterhoft Oil, Inc., and Loren Dusterhoft (“Dusterhoft”). We conclude UHD failed to raise a genuine issue of material fact on a required element of its promissory estoppel claim, and we affirm the summary judgment.

I

[¶ 2] UHD is a limited liability company, which owns and operates the Hilton Garden Inn in Grand Forks. Dusterhoft owns an Amoco gas station located across the street from the Hilton Garden Inn.

[¶ 3] In '2001, UHD began planning the construction of the Hilton Garden Inn, after entering into a ground lease with the State of North Dakota to construct the hotel on the western edge of the University of North Dakota campus. The Amoco station’s sewer line connected to a force main sewer line on property owned by the University of North Dakota, and under the building site for UHD’s Hilton Garden Inn. Dusterhoft had a ten-year easement from the university for the sewer line, which ended November 6, 2001. The university and the City of Grand Forks required UHD to move the sewer lines before it could acquire a building permit. In 2001, UHD’s managing partner and Dust-erhoft discussed the sewer line relocation, but the parties did not reach an agreement on who would pay the sewer line relocation expenses.

[¶ 4] In April 2002, construction on the hotel began and the sewer lines were moved. During the construction of the hotel, Dusterhoft enjoyed uninterrupted use of the sewer line. UHD paid all costs and expenses incurred in relocating Dust-erhoft’s portion of the sewer line. After construction was complete, an engineering *156 firm UHD hired calculated Dusterhoft owed UHD $43,441.28 for the benefit Dusterhoft received from the relocation of his portion of the sewer line.

[¶ 5] In March 2008, the university began negotiations with Dusterhoft for a new easement. These negotiations included discussion of how much Dusterhoft should pay for the benefits he received from relocating his portion of the sewer line. The university requested Dusterhoft pay $43,441.28 for the benefit he received from the sewer line relocation, and upon receipt of this amount the university would pay the amount over to UHD as reimbursement for the expenses UHD incurred in relocating the sewer line. Dusterhoft rejected the university’s offer, and offered to pay $4,500 after getting an independent estimate for the cost of connecting to the sewer line. The university rejected Dust-erhoft’s counteroffer. The university and Dusterhoft failed to reach an agreement, and Dusterhoft was not granted a new easement.

[¶ 6] UHD sued Dusterhoft for $50,000 for the costs and expenses UHD incurred in relocating Dusterhoft’s portion of the sewer line, alleging claims for breach of contract, promissory estoppel, and equitable estoppel. UHD claimed the university, Dusterhoft, and UHD agreed the university would require, as a condition of Duster-hoft’s new easement, that Dusterhoft pay for the benefit he received from the relocation of his portion of the sewer line. The district court granted Dusterhoft’s motion for summary judgment and dismissed all of UHD’s claims.

[¶ 7] The district court had jurisdiction under N.D. Const, art. VI, § 8, and N.D.C.C. § 27-05-06. The appeal was timely under N.D.R.App.P. 4(a). This Court has jurisdiction under N.D. Const, art. VI, §§ 2, 6, and N.D.C.C. § 28-27-01.

II

[¶ 8] “Summary judgment is a procedural device for promptly and expeditiously disposing of an action without a trial if either party is entitled to a judgment as a matter of law and if no dispute exists as to either the material facts or the reasonable inferences to be drawn from undisputed facts, or resolving the factual disputes will not alter the result.” Anderson v. Meyer Broadcasting Co., 2001 ND 125, ¶ 14, 630 N.W.2d 46. The evidence presented on a motion for summary judgment is viewed “ ‘in a light most favorable to the party opposing the motion, and that party will be given the benefit of all favorable inferences which can reasonably be drawn from the evidence.’ ” Dalan v. Paracelsus Healthcare Corp., 2002 ND 46, ¶ 7, 640 N.W.2d 726 (quoting Ellingson v. Knudson, 498 N.W.2d 814, 817 (N.D.1993)).

[¶ 9] “Whether the district court properly granted summary judgment is a question of law subject to de novo review.” Rogstad v. Dakota Gasification Co., 2001 ND 54, ¶ 10, 623 N.W.2d 382.

On appeal this Court decides if the information available to the trial court precluded the existence of a genuine issue of material fact and entitled the moving party to summary judgment as a matter of law. Summary judgment is appropriate against parties who fail to establish the existence of a factual dispute on an essential element of a claim on which they will bear the burden of proof at trial.

Hopfauf v. Hieb, 2006 ND 72, ¶ 6, 712 N.W.2d 333 (quoting Heart River Partners v. Goetzfried, 2005 ND 149, ¶ 8, 703 N.W.2d 330).

Ill

[¶ 10] UHD argues the district court improperly granted Dusterhoft’s motion *157 for summary judgment on the promissory estoppel claim because there were genuine issues of material fact.

[¶ 11] Before the doctrine of promissory estoppel can be invoked, four elements must be established: “1) a promise which the promisor should reasonably expect will cause the promisee to change his position; 2) a substantial change of the promisee’s position through action, or forbearance; 3) justifiable reliance on the promise; and 4) injustice which can only be avoided by enforcing the promise.” Russell v. Bank of Kirkwood Plaza, 386 N.W.2d 892, 896 (N.D.1986). The promise must “be clear, definite, and unambiguous as to essential terms before the doctrine of promissory estoppel may be invoked to enforce an agreement or to award damages for the breach thereof.” Lohse v. Atlantic Richfield Co., 389 N.W.2d 352, 357 (N.D.1986). In the context of a promissory estoppel claim, this Court’s decision in Lohse specifically recognized “a reluctance to enforce incomplete agreements based upon preliminary negotiations and discussions or upon an agreement to negotiate the remaining terms of a contract in the future.” Id. at 357.

[¶ 12] The district court granted summary judgment on UHD’s promissory es-toppel claim because UHD failed to establish a factual dispute on the existence of a promise. The court concluded UHD failed to present any evidence demonstrating Dusterhoft had agreed to pay UHD for the benefit it received from the relocation of the sewer line. The court also concluded UHD’s promissory estoppel claim failed because it was based on an alleged promise between Dusterhoft and the university, to which UHD was only a third party beneficiary, and North Dakota law does not recognize the ability of a third party to enforce a promise.

A

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Cite This Page — Counsel Stack

Bluebook (online)
2006 ND 121, 715 N.W.2d 153, 2006 N.D. LEXIS 123, 2006 WL 1515547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/university-hotel-development-llc-v-dusterhoft-oil-inc-nd-2006.