Bakken v. Duchscher
827 N.W.2d 17
| N.D. | 2013Background
- Bakken parties sold parcel B (Pierce County) to Duchschers in 1991 under an earnest money contract with an option to repurchase at $135/acre.
- Warranty deeds for parcels A and B are recorded in 1991/1992, each stating an option to repurchase but without a termination date.
- A 1992 written agreement between the parties added ten-year restrictions: Duchschers would not sell within ten years with notice of Bakken option; Bakken would not exercise option for ten years.
- Paul Bakken died in 1994; in 2008 Duchschers transferred parcel B to their son and daughter-in-law, after which Bakkens notified they could exercise the option.
- District court corrected scrivener’s errors in the 1992 agreement but held the Bakken option terminated after ten years and was barred by laches.
- This appeal concerns whether the Bakken option to repurchase parcel B survived the ten-year period and whether laches barred enforcement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the 1992 agreement terminate the Bakken option after ten years? | Bakken—option survives; no termination language. | Duchschers—ten-year period ends, option terminates. | No termination; option survived ten years. |
| Was the Bakken option barred by laches? | Delay in exercising option should not erase rights. | Delay prejudices Duchschers and future buyers. | Laches does not apply; not prejudicial here. |
Key Cases Cited
- Schwarz v. Gierke, 2010 ND 166 (ND 2010) (contract interpretation; whether contract is ambiguous; extrinsic evidence limitations)
- Bendish v. Castillo, 2012 ND 30 (ND 2012) (interpretation of contracts; intent of parties)
- Moen v. Meidinger, 547 N.W.2d 544 (ND 1996) (ambiguous contracts; interpretation rules)
- Habeck v. MacDonald, 520 N.W.2d 808 (ND 1994) (contract interpretation; ambiguity standard)
- U.S. Bank, Nat’l Ass’n v. Koenig, 2002 ND 137 (ND 2002) (interpretation; contractual relations; parol evidence limits)
- National Bank of Harvey v. International Harvester Co., 421 N.W.2d 799 (ND 1988) (contract interpretation; add. guidance on intentions)