Bendish v. Castillo
812 N.W.2d 398
| N.D. | 2012Background
- In 2003, Bendishes sold property to Castillo via contract for deed for $40,400; $7,500 down; $620.86 monthly; 5% interest; payments through Jan 1, 2005.
- Dec 28, 2006, a Lease Purchase Agreement was executed among Bendishes, Castillo, and Cendak; it was not filed with the county recorder.
- After Jan 2005, Bendishes received sporadic payments from Castillo or Gange; Castillo and then Gange operated on the property.
- In 2010, Bendishes sued to cancel the contract for deed; Cendak counterclaimed alleging assignment and requested a warranty deed.
- Trial court found Castillo in default on the contract for deed and Cendak in default under the Lease Purchase Agreement; contract canceled; no redemption.
- Court discussed that cancellation by action carries no statutory redemption period and that redemption is discretionary; the Lease Purchase Agreement language did not clearly assign Castillo’s interest to Cendak.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court abused its discretion by denying redemption. | Cendak asserts it was entitled to redemption due to alleged assignment and possession. | Bendishes contend there was no valid assignment and no interest granting redemption; equities do not favor redemption. | No abuse; court properly refused redemption. |
Key Cases Cited
- Moch v. Moch, 1997 ND 69 (ND) (redemption discretion in cancellation action)
- Adolph Rub Trust v. Rub, 474 N.W.2d 73 (ND) (no statutory redemption period in cancellation by action)
- Liebelt v. Bender, 303 N.W.2d 316 (ND 1981) (equities determine redemption period; discretion not abused)
- Shervold v. Schmidt, 359 N.W.2d 361 (ND) (cancellation in equity; deference to district court)
- Bender v. Liebelt, 303 N.W.2d 316 (ND 1981) (context for redemption analysis in cancellation actions)
- Ryan v. Bremseth, 186 N.W. (ND 1922) (ND) (historical redemption considerations in land contracts)
