Ward Farms Partnership v. Enerbase Cooperative Resources

2015 ND 136, 863 N.W.2d 868, 2015 N.D. LEXIS 119, 2015 WL 3406815
CourtNorth Dakota Supreme Court
DecidedMay 27, 2015
Docket20140104
StatusPublished
Cited by2 cases

This text of 2015 ND 136 (Ward Farms Partnership v. Enerbase Cooperative Resources) 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
Ward Farms Partnership v. Enerbase Cooperative Resources, 2015 ND 136, 863 N.W.2d 868, 2015 N.D. LEXIS 119, 2015 WL 3406815 (N.D. 2015).

Opinion

KAPSNER, Justice.

[¶ 1] Ward Farms Partnership and others (“Ward Farms”) appeal from a district court judgment denying its motion to amend its complaint and granting a summary judgment motion in favor of Ener-base Cooperative Resources (“Enerbase”). We conclude the district court did not abuse its discretion in denying Ward Farms’ motion to amend, and the district court did not err in granting Enerbase’s summary judgment motion because Ward Farms did not raise an issue of material fact regarding its claim. We affirm the district court judgment.

I

[¶ 2] This case stems from Ward Farms’ purchase of Enerbase’s tractor at a third-party auction sale. Michael Ward, a partner of Ward Farms, attended an auction sale, registered as a buyer, and was issued a bidding card which he admitted signing. The bidding card stated, in pertinent part:

ALL ITEMS ARE SOLD AS IS, WHERE IS, WITHOUT GUARANTEE OF ANY KIND. The descriptions of items appearing in advertising prior to this auction are believed to be correct. Nevertheless, neither those descriptions nor any oral statements made by the Owner (or his agents or officers) or the Auctioneers (or his agents or officers) concerning any item shall be construed as a warranty, either expressed or implied.

(Capitalization in original.) Michael Ward was the high bidder of Enerbase’s tractor with a winning bid of $19,000, and he subsequently signed a bill of sale which stated, “All items sold As-Is, Where-Is.... ALL SALES ARE FINAL.” (Capitalization in original.)

[¶ 3] Shortly after. the sale, Ward Farms discovered the tractor required significant repairs. At Ward Farms’ request, Enerbase inspected the tractor and estimated the repair costs as ranging from $19,550 to $31,430. Subsequently, Ward Farms sued Enerbase alleging fraud, misrepresentation, deceit, and breach of express and implied warranties. Ward Farms sought alternative remedies of rescission or damages.

[¶ 4] In its complaint, Ward Farms alleges it was told at the auction the tractor was “field ready” and had been recently used at a local race track to level roads. In Ward Farms’ Answers to Defendant’s Interrogatories, Ward Farms stated, “[t]he auctioneer advised he understood from the seller that [the tractor] was in good shape and had only been used a little at the race track.” During Michael Ward’s deposition, when asked if the phrase “field ready” was ever used to describe the tractor, Michael Ward stated, “I don’t think they used ‘field ready,’ but that’s what almost all the equipment is supposed to be.” He also testified at the deposition the auctioneer stated during the sale “that [Enerbase] had had the item on the lot looking for a buyer there.” Michael Ward also testified at his deposition that when he visited Enerbase’s shop several days before the auction, two or three unidenti *872 fied Enerbase employees told him that “they didn’t know of anything wrong -with [the tractor] and that it had been on the lot.”

[¶ 5] Enerbase moved for summary judgment seeking to dismiss all of Ward Farms’ claims. Ward Farms opposed the motion and filed a motion to amend its complaint to include a claim of unconscion-ability. The district court granted Ener-base’s summary judgment motion and denied Ward Farms’ motion to amend the complaint.

II

[¶ 6] On appeal, Ward Farms argues the district court abused its • discretion in denying Ward Farms’ motion to amend and erred in granting Enerbase’s summary judgment motion. Ward Farms argues the statements made at the auction constitute fraud, and Enerbase is attempting to hide behind the auction yard’s waiver of warranties.

[¶ 7] Summary judgment is the proper method to resolve a controversy, without a trial, if the evidence demonstrates there is no genuine issue of material fact or only questions of law remain, and a party is entitled to judgment as a matter of law. Fetch v. Quam, 2001 ND 48, ¶ 8, 623 N.W.2d 357. Evidence must be viewed in the light most favorable to the party opposing the motion for summary judgment. Id. Because it is a question of law, this Court reviews whether a trial court properly granted summary judgment under a de novo standard of review. Id.

III

[¶ 8] Ward Farms argues the statement that the tractor is “field ready” “is itself [a] warranty,” and “[t]he fact that the tractor could not be used for any use would support fraud.” In addition, Ward Farms argues that because Enerbase was able to determine the tractor had no value after a quick inspection of it after the sale implies “it was done for the purpose of deception.”

[¶ 9] In North Dakota, actionable fraud “includes the making of an affirmative statement of fact, known to be untrue, with intent to deceive another or induce another to enter .into a contract.” Kary v. Prudential Ins. Co. of America, 541 N.W.2d 703, 705 (N.D.1996); see also N.D.C.C. § 9-03-08. Actionable fraud also includes the “suppression of that which is true by one having knowledge or belief of the fact.” N.D.C.C. § 9-03-08(3).

[¶ 10] An essential element of fraud is “that there be a false representation of a material fact which either exists in the present or has existed in the past.” Sperle v. Weigel, 130 N.W.2d 315, 320 (N.D.1964). Fraud is never presumed; rather, it must be proven by clear and convincing evidence. Kary, 541 N.W.2d at 705; see also Heart River Partners v. Goetzfried, 2005 ND 149, ¶ 19, 703 N.W.2d 330 (“A party alleging fraud has the burden of proving each element by clear and convincing evidence.”). However, because intent to defraud is generally not prone to direct proof, it may be inferred from the circumstances at the time of the transaction. American Bank Ctr. v. Wiest, 2010 ND 251, ¶ 12, 793 N.W.2d 172. Actions involving state of mind, like fraud, are generally not suited for disposition by summary judgment, but “if a plaintiff fails to support his opposition to a summary judgment motion with sufficient facts to show that there is a genuine issue for trial, then, even in these cases, summary judgment is appropriate.” Kary, 541 N.W.2d at 706.

[¶ 11] Statements of opinion, such as expressions by the seller com *873 mending the item up for sale, are not actionable, even if untrue. Dahl v. Messmer, 2006 ND 166, ¶ 15, 719 N.W.2d 341. These expressions are generally called “puffing” and are considered mere dealer’s talk. Id. Statements of opinion, or those amounting to mere puffery, do not constitute fraud. Golden Eye Res., LLC v. Ganske, 2014 ND 179, ¶ 23, 853 N.W.2d 544.

[¶ 12] Enerbase argues Dahl, 2006 ND 166, 719 N.W.2d 341, is analogous. In Dahl, at ¶¶ 2-3, plaintiffs purchased the defendant’s hunting lodge after the defendant claimed it made approximately $51,000 per hunting season, the furnaces were in good shape, the roof was under warranty, and it cost $500 per year to insure.

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Bluebook (online)
2015 ND 136, 863 N.W.2d 868, 2015 N.D. LEXIS 119, 2015 WL 3406815, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-farms-partnership-v-enerbase-cooperative-resources-nd-2015.