959 N.W.2d 47
N.D.2021Background:
- Plaintiffs City of Glen Ullin and Glen Ullin Park District own adjacent streets/alleys and lots; defendants Karen and Jerome Schirado own nearby land and grazed horses on plaintiff property.
- In 2013 the Park District obtained a default judgment enjoining the Schirados from fencing and grazing on Park District lots.
- In 2019 the City and Park District sued again asserting continued use of Park District lots and additional claims regarding City streets and alleys; the Schirados admitted fencing and grazing but claimed an oral permission from the City in exchange for removing garbage.
- On initial appeal (Schirado I) this Court held the Park District claim was res judicata but the City claim was not; the attorney-fees award was vacated for insufficient explanation and remanded.
- On remand the district court denied the Schirados’ motion for trial, granted summary judgment to the City and Park District, entered a permanent injunction, found contempt as to Park District property, and awarded the Park District $5,460 in attorney’s fees (one-half of plaintiffs’ invoice).
- The Schirados appealed, arguing (1) City Council minutes satisfied the statute of frauds, (2) part performance removed the agreement from the statute of frauds, (3) their cleanup constituted valuable/substantial/permanent improvements, (4) they took possession of streets/alleys, and (5) the attorney-fees award lacked adequate explanation.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether City Council minutes satisfy statute of frauds for an interest in land | Minutes show Council permitted grazing and constitute a sufficient memorandum | Minutes do not reflect an agreement to use City streets/alleys; any writing allowed only grazing on Schultz land | Minutes did not create an enforceable agreement to use City land; no genuine issue of material fact |
| Whether part performance removes oral agreement from statute of frauds | Schirados’ years of cleanup and trash removal constituted part performance | Schirados failed to prove an agreement existed or that acts are only explainable by that agreement | Part performance doctrine not satisfied; no admissible evidence of an agreement or acts consistent only with it |
| Whether cleanup constituted valuable, substantial, permanent improvements | Cleanup was a valuable and permanent improvement supporting enforcement | Cleanup was conclusory, not shown to be substantial/permanent/improvements to City property | Cleanup was conclusory and insufficient to meet the valuable/substantial/permanent improvements requirement |
| Whether defendants’ possession/use estopped plaintiffs from enforcing property rights | Continuous use and control of the streets/alleys established possession and rights to continue use | Possession evidence does not establish agreement or exclusive use of City property | No material factual dispute shown that Schirados obtained possession that supports an equitable property interest |
| Whether district court adequately explained attorney’s fees award | Schirados: award lacks sufficient explanation and City cannot get contempt fees | Plaintiffs: award to Park District (half the invoice) was for contempt-related work; City not awarded contempt fees | District court provided a discernible basis: Park District awarded $5,460 as fees for contempt; City not awarded contempt fees; explanation adequate and not an abuse of discretion |
Key Cases Cited
- Klein v. Sletto, 889 N.W.2d 918 (N.D. 2017) (de novo review and summary judgment standard)
- Rooks v. Robb, 871 N.W.2d 468 (N.D. 2015) (summary judgment when only question of law remains)
- Hamilton v. Woll, 823 N.W.2d 754 (N.D. 2012) (summary judgment standards)
- Williston Co-Op Credit Union v. Fossum, 459 N.W.2d 548 (N.D. 1990) (part performance can remove oral contract from statute of frauds; improvements must be valuable/substantial/permanent)
- Poyzer v. Amenia Seed & Grain Co., 409 N.W.2d 107 (N.D. 1987) (part performance doctrine)
- Vasichek v. Thorsen, 271 N.W.2d 555 (N.D. 1978) (requirements for improvements as part performance)
- Parceluk v. Knudtson, 139 N.W.2d 864 (N.D. 1966) (part payment plus improvements may remove statute of frauds)
- Bouten v. Richard Miller Homes, Inc., 321 N.W.2d 895 (Minn. 1982) (subscription/signature under statute of frauds)
- Greenwood v. Klem, 450 N.W.2d 745 (N.D. 1990) (district court need not detail fee calculations so long as basis is discernible)
