Collection Center, Inc. v. Bydal
795 N.W.2d 667
| N.D. | 2011Background
- Bydal and Reimer are Eduit Corporation shareholders; Stremick was a Technology Central shareholder who left in 2003.
- Technology Central ceased operations and Eduit was formed to assume its assets and liabilities; Reimer was Eduit's president.
- In June 2003, Security First Bank loaned Reimer and Bydal $200,941.15 as co-makers to pay Technology Central debts; in July 2004 Eduit received a $194,001.69 loan guaranteed by Reimer and Bydal.
- In 2006, Reimer paid down balances on the loans; the Bank assigned its rights to Reimer, who then assigned them to Collection Center, a collection agency.
- Collection Center sued Bydal in September 2006; Bydal counterclaimed for punitive damages and abuse of process, which were later narrowed.
- In August 2008, Collection Center amended to add two contribution claims under N.D.C.C. § 9-01-08; District Court granted summary judgment on these claims and struck Bydal’s counterclaim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there are genuine issues on contribution claims after assignment | Bydal; Reimer’s assignment to Collection Center permits contribution claims. | Bydal; disputes exist about proportional shares and benefits and whether assignment affects liability. | Summary judgment proper; co-obligors presumed equally liable; no genuine issue on proportional shares. |
| Whether the district court properly struck Bydal’s amended fiduciary-duty counterclaim | Collection Center; counterclaim was improper and should be struck as redundant or immaterial. | Bydal; amended counterclaim responsive and compulsory; Rule 12(f) discretion should tolerate amendment. | District court did not abuse its discretion in striking; but error in requiring leave for amendment acknowledged in part; decision affirmed on alternative grounds. |
Key Cases Cited
- Barbie v. Minko Constr., Inc., 2009 ND 99 (ND) (summary judgment standards and evidentiary burden)
- In re Estate of Egeland, 2007 ND 184 (ND) (proportionate contribution among co-makers; benefit consideration)
- Albrecht v. Walter, 1997 ND 238 (ND) (co-guarantor contribution rights; defenses available to coguarantors)
- Walters v. Iowa-Des Moines Nat’l Bank, 295 N.W.2d 430 (Iowa 1980) (counterclaims against assignee limitations; defensive use of counterclaims)
- Arlt, 61 N.W.2d 429 (ND) (assignee defenses and set-offs; Restatement contract principles)