Dakota Resource Council v. Stark County Board of County Commissioners
2012 ND 114
N.D.2012Background
- Quality Auto Body leased commercial space from Working Capital from April 1, 2010, to March 31, 2011, with a renewal option for up to five one-year terms requiring no default, notice, and a security deposit.
- Quality sought renewal for another year in early 2011; Working Capital conditioned renewal on curing defaults and timely receipt of the security deposit.
- Quality paid April 1, 2011 rent but a security deposit was not timely paid; Working Capital served a default/termination notice on April 15, 2011.
- Working Capital later rejected May 2011 rent payment and filed eviction in June 2011 citing holdover, disturbances, and lease violations.
- Trial court awarded immediate possession, past due rent and late fees, and attorney’s fees; Judgment entered September 6, 2011; Quality appealed.
- This Court treated the appeal as from the September 6, 2011 judgment and affirmed eviction, rent, and fees, after determining the renewal presumption was rebutted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Quality was a holdover tenant entitling eviction | Working Capital: holdover under 47-32-01(4). | Quality: not holdover; renewal implied; §47-16-06 presumption. | Yes; holdover established, eviction affirmed. |
| Whether the §47-16-06 renewal presumption applied to renew on same terms | Presumption supports renewal on same terms. | Presumption applies only if not rebutted; evidence rebutted it. | Presumption rebutted; lease not renewed on same terms. |
| Whether attorney’s fees could be recovered in eviction | Lease provision allows fees; 47-32-04 challenges applicability. | Fees cannot be recovered in eviction; issue not preserved. | Not preserved for review; court affirmatively reserves ruling by not addressing the issue on appeal. |
Key Cases Cited
- Koehler v. County of Grand Forks, 658 N.W.2d 741 (2003 ND 44) (appeal from eviction-related judgment treated as appeal from later consistent judgment)
- Riverwood Commercial Park, LLC v. Standard Oil Co., 698 N.W.2d 478 (2005 ND 118) (evictions are summary proceedings)
- Nelson v. Johnson, 778 N.W.2d 773 (2010 ND 23) (standard for reviewing trial court findings of fact)
- Willman v. Harty Co., 305 N.W.2d 909 (ND 1981) (47-16-06 presumption is disputable, not automatic renewal)
- Foster v. Nat’l Tea Co., 19 N.W.2d 760 (ND 1945) (historical basis for 47-16-06 interpretation)
- Paulson v. Paulson, 801 N.W.2d 746 (2011 ND 159) (procedural rule: issues raised for first time on appeal)
