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921 N.W.2d 444
N.D.
2019
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Background

  • In 1984–85 the Benson grandchildren (including John and Ann Kemske) each received an undivided 1/5 mineral interest in 160 acres; a 1985 power of attorney gave Thomas Benson limited authority and was recorded in 2015.
  • In 1990 Kemske executed a deed conveying her interest to Thomas Benson but that deed was not recorded until 2012.
  • Kemske executed a deed conveying her minerals to Family Tree on April 15, 2010 (recorded May 12, 2010); Family Tree conveyed 24 net acres to Desert Partners the same day (recorded June 2, 2010).
  • Thomas Benson previously recorded a 2005 statement of claim asserting mineral interests (executed as power of attorney), and Kemske had leased the minerals in 2009.
  • John and Brian Benson received a deed from Thomas Benson in May 2010 and recorded/re-recorded it on June 3–4, 2010.
  • The district court, after a bench trial held over Benson’s objections and in his absence (denying a last-minute continuance), found Family Tree and Desert Partners were good-faith purchasers and awarded them the disputed mineral interests; this appeal followed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether court abused discretion by denying continuance and trying case without John Benson present Benson: sudden medical emergency prevented attendance; denial denied fair hearing Plaintiffs: trial date was set after multiple continuances; last-minute email lacked affidavit/medical proof and court had warned no further continuances Court: No abuse of discretion; email insufficient under N.D.R.Ct. 6.1(b) and prior warning justified proceeding
Whether Family Tree/Desert Partners were good-faith purchasers despite 2005 statement of claim Plaintiffs: they inspected title in April 2010, found no recorded deed from Kemske to Thomas Benson, and reasonably relied on records and seller representations Benson: statement of claim in 2005 provided constructive notice and imposed duty of further inquiry; Family Tree failed adequate inquiry Court: Held purchasers acted in good faith; findings that title search and other inquiry were reasonable were not clearly erroneous

Key Cases Cited

  • Carroll v. Carroll, 2017 ND 73, 892 N.W.2d 173 (upholding district court discretion in denying continuance)
  • Wilson v. Wilson, 2014 ND 199, 855 N.W.2d 105 (trial management and evidentiary discretion)
  • Rickert v. Dakota Sanitation Plus, Inc., 2012 ND 37, 812 N.W.2d 413 (continuance/abuse of discretion standard)
  • Tornabeni v. Creech, 2018 ND 204, 916 N.W.2d 772 (abuse of discretion and clearly erroneous standards)
  • Desert Partners IV, L.P. v. Benson, 2016 ND 37, 875 N.W.2d 510 (prior appeal: statement of claim imposes duty of further inquiry)
  • Sundance Oil & Gas, LLC v. Hess Corp., 2017 ND 269, 903 N.W.2d 712 (good-faith purchaser standard and notice)
  • Swanson v. Swanson, 2011 ND 74, 796 N.W.2d 614 (distinguishing factual findings from legal conclusions on good-faith purchaser status)
  • Workforce Safety & Ins. v. Beaulieu, 2018 ND 213, 917 N.W.2d 211 (questions of law fully reviewable)
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Case Details

Case Name: Desert Partners IV, L.P. v. Benson
Court Name: North Dakota Supreme Court
Date Published: Jan 15, 2019
Citations: 921 N.W.2d 444; 2019 ND 19; 20180112
Docket Number: 20180112
Court Abbreviation: N.D.
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    Desert Partners IV, L.P. v. Benson, 921 N.W.2d 444