Vernon R. Pederson

The case involved doctors who sued attorney Bayard Lewis for malpractice, alleging that his negligent preparation of trust agreements between 1969 and 1971 caused them to incur personal tax liability on partnership income. The district court struck Lewis's statute of limitations defense and denied his discovery motion, but the North Dakota Supreme Court reversed, holding that the clients suffered actual injury no later than the IRS's 1977 deficiency notices and that the two-year limitations period under NDCC § 28-01-18(3) began running once they knew or should have known of the injury, its cause, and the attorney's possible negligence. The court remanded for a trial on when the doctors should have discovered the claim and for reconsideration of the discovery motion relating to damages and discovery timing.

torts & liabilitytaxesprocedure

The case involved Advanced Irrigation and related parties suing First National Bank for deceit and bad faith in refusing to continue financing an irrigation equipment venture, while the bank counterclaimed for unpaid balances on promissory notes, foreclosure of collateral, and personal guaranties. A jury awarded Advanced $96,000 in actual damages for willful deceit but rejected punitive damages; the trial court then severed and decided the bank's counterclaim in its favor, offsetting the jury award and entering judgment for the bank on the notes after finding the collateral liquidation commercially reasonable. On appeal, the court affirmed, holding that the jury verdict was supported by the evidence, that Advanced failed to show any errors in jury instructions or bifurcation of issues, and that the trial court's factual finding on commercial reasonableness of the collateral sale was not clearly erroneous. Advanced raised no challenge to the unchallenged findings of fact on the notes themselves.

business & regulatorytorts & liabilityprocedure

This case involved an appeal from a final judgment canceling a contract for deed for campground property and foreclosing a security agreement after defaults on payments and taxes. The original buyer assigned his interest to Hillside Trust via quitclaim deed, prompting foreclosure actions against both the buyer and the trust, interspersed with bankruptcy filings that were dismissed by the bankruptcy court. The North Dakota Supreme Court affirmed the district court's judgment nunc pro tunc, holding that the automatic bankruptcy stay did not apply because the debtor had disclaimed any interest in the property, that summary judgment was proper on the undisputed defaults without needing to address counterclaims at that stage, that statutory cancellation under Chapter 32-18 was not an exclusive remedy, and that the trial court did not abuse its discretion in setting the redemption periods.

propertyprocedure

This case involved a dispute between Russell Walch, operator of a trucking business, and Gerald Jacobson, his former driver, arising from an oral agreement under which Jacobson would acquire and operate a truck leased by Walch, with Walch arranging hauls, deducting trailer rent and expenses, and remitting the balance. Walch sued to recover over $7,000 allegedly owed after Jacobson stopped driving the truck, and the trial court entered judgment for Walch in the amount of $6,171.17 after determining that Walch had improperly raised the trailer rent but that the overall accounting supported recovery. Jacobson appealed, challenging the trial court's factual findings on gross income, expenses, payments, and overcharges as clearly erroneous under N.D.R.Civ.P. 52. The North Dakota Supreme Court affirmed, concluding that the evidence in the record, including summaries of checks, income notations, and expense computations, amply supported the findings and did not leave a definite and firm conviction of mistake.

business & regulatoryprocedure

In State v. Manke, the defendant appealed the district court's dismissal of his application for post-conviction relief following his conviction for gross sexual imposition, which had previously been affirmed on direct appeal. The North Dakota Supreme Court affirmed the dismissal, concluding that the five issues raised concerning the admission of a laboratory report into evidence had already been finally adjudicated on direct appeal and were therefore barred from relitigation under the state's codification of the Uniform Post-Conviction Procedure Act. The court reasoned that Section 29-32-08 prevents raising grounds that were finally adjudicated or not raised in prior proceedings, consistent with decisions from other states adopting the uniform act, and that post-conviction relief is not intended to provide repeated opportunities to challenge the same matters. A supplemental claim about the defendant's absence from an in-chambers conference was rejected because it was raised for the first time on appeal.

criminal lawprocedure

The case involved a dispute over an oral contract in which Almont Lumber agreed to erect a pole barn for Hatzenbuehler for $36,871.82, with disagreements arising over construction defects, a possible settlement reducing the price, and whether sales tax was due. Almont sued for the unpaid balance plus interest; at trial, a jury found the contract substantially performed, rejected the claimed settlement, and awarded Almont $6,800 in damages after accounting for defects. The trial court awarded prejudgment interest on that amount under NDCC § 32-03-04, and the North Dakota Supreme Court affirmed. The court reasoned that the statute allows interest on damages that are certain or capable of being made certain by calculation from a particular day, and a mere dispute over the sum owed does not render the claim uncertain or unliquidated.

business & regulatoryprocedure