Abelmann v. SmartLease USA, L.L.C.
2014 ND 227
N.D.2014Background
- Abelmanns sued to evict SmartLease from farmland leased for RV/mobile park use.
- District court denied eviction, finding any breaches were minor and non-essential; no adequate findings on rent or material breaches.
- Lease (Dec 18, 2011) permitted RV/mobile park use and required high-quality, clean, professional management.
- Addendum (Nov 10, 2012) extended renewal and granted a long-term option to purchase; Ranger Rock agreement formed later.
- Abelmanns alleged multiple breaches (rent, management, facilities) and termination notice; SmartLease claimed substantial development and profit; trial record lacked specific findings.
- Court of Appeals reversed and remanded for adequate findings, emphasizing contract language and proper interpretation of lease purpose.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the lease’s stated purpose was properly interpreted | Abelmanns: lease requires high-quality RV park use. | SmartLease: focus on profit and development suffices. | District court erred in interpreting lease purpose; remand for proper findings. |
| Whether there were material breaches of the lease | Abelmanns: multiple material breaches (rent, management, facilities). | SmartLease: any noncompliance was minor/non-essential. | Court failed to determine material breaches; remand for adequate findings. |
| Whether eviction was proper based on rent nonpayment for three days | Abelmanns: rent was unpaid as of due date triggering eviction. | SmartLease: any delay was not a material breach. | Remand to make explicit findings on rent payment timing and material breach. |
Key Cases Cited
- VND, LLC v. Leevers Foods, Inc., 2003 ND 198 (2003 ND) (contract interpretation; factual basis for eviction ruling; leases treated as contracts)
- Kolling v. Goodyear Tire and Rubber Co., 272 N.W.2d 54 (ND 1978) (substantial performance; contract construction governs lease disputes)
- Schmidt v. Schmidt, 2003 ND 55 (2003 ND) (standard for clearly erroneous findings; review of fact findings under 52(a))
