2024 ND 25
N.D.2024Background
- Don’s Garden Center, Inc., owned by the McIlravys, entered into a purchase agreement with Kratz (The Garden District Inc.), but Kratz failed to make required payments.
- The McIlravys filed two eviction actions in 2016 after Kratz’s nonpayment; one referenced service of a three-day eviction notice.
- The district court issued a temporary restraining order and held funds from Kratz in trust; later, a third action resulted in damages and release of the trust funds to the McIlravys.
- All eviction actions were eventually dismissed; Kratz did not appeal those dismissals or prior court orders at the time.
- In 2023, Kratz filed a Rule 60(b) motion to vacate the orders in the eviction cases, alleging the district court lacked subject matter jurisdiction and seeking to void most past orders.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of Rule 60(b) Motion | Motion not timely (implied by opposition) | Timely under 60(b)(4) – voidness | Motion is timely for void judgments |
| Subject Matter Jurisdiction of District Court | District court had proper jurisdiction | Court lacked jurisdiction | District court had jurisdiction |
| Harmless Error in Order Adoption | Any Rule 7.1(b)(1) violation was harmless | Failure to allow response time | Any violation was harmless error |
| Award of Attorney’s Fees | Motion was frivolous and warranted fees | Motion was not frivolous | Award of attorney’s fees affirmed |
Key Cases Cited
- Kautzman v. Doll, 905 N.W.2d 744 (N.D. 2018) (appeal from denial of Rule 60(b) does not allow attack on underlying order)
- Anderson v. Baker, 871 N.W.2d 830 (N.D. 2015) (limited scope on appeal for denial of reconsideration)
- Olson Fam. Ltd. P’ship v. Velva Parks, LLC, 997 N.W.2d 840 (N.D. 2023) (abuse of discretion standards for Rule 60(b))
- Peterson v. Jasmanka ex rel. Clark, 842 N.W.2d 920 (N.D. 2014) (no time limit to move to vacate a void judgment)
- Oden v. Minot Builders Supply, 955 N.W.2d 102 (N.D. 2021) (standards for Rule 60(b)(4) motions)
- Bolinske v. Sandstrom, 978 N.W.2d 72 (N.D. 2022) (attorney’s fees for frivolous claims)
- Sagebrush Res., LLC v. Peterson, 841 N.W.2d 705 (N.D. 2014) (attorney’s fees discretion standard)