999 N.W.2d 187
N.D.2023Background
- The Ebels (Jacob, John, and Ordeen) submitted winning bids for parcels of real property being sold from the Estate of Mark Engelhardt, administered by Yvonne Engelhart.
- A dispute developed regarding the integrity and validity of the bidding process, specifically concerning a competing bidder, Tom Gross.
- The Ebels sued for declaratory and injunctive relief, breach of contract against Engelhart, and tortious interference against Gross, seeking to enforce what they claimed were binding sales contracts.
- After a bench trial, the district court dismissed all of the Ebels' claims with prejudice, citing failure to satisfy the statute of frauds for real estate sales contracts.
- The Ebels appealed, arguing that the statute of frauds was not properly raised as an affirmative defense by the defendants.
- Tom Gross cross-appealed, challenging the district court's failure to address possible modification or waiver of bidding conditions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether statute of frauds defense applied | Was not pled or raised, so was waived | General denial sufficient | Statute of frauds must be specifically pled; reversal. |
| Validity of contracts for sale of real estate | Bids were accepted, forming a contract | No binding written contract existed | Did not reach; statute of frauds pleading dispositive. |
| Enforcement of bidding process | Bids properly submitted and accepted | Disputes over timing/validity of bids | Did not reach this issue. |
| Cross-appeal: bid modification/waiver | N/A | Conditions modified or waived | Did not reach this issue. |
Key Cases Cited
- Brey v. Tvedt, 21 N.W.2d 49 (N.D. 1945) (pre-Rule 8 case allowing statute of frauds as a defense under general denial)
- Motschman v. Bridgepoint Min. Acquisition Fund, LLC, 795 N.W.2d 327 (N.D. 2011) (affirmative defenses, including statute of frauds, must be specifically pled)
- Kadrmas v. Kadrmas, 264 N.W.2d 892 (N.D. 1978) (statute of frauds must be specifically pled or is waived)
- Baldus v. Mattern, 93 N.W.2d 144 (N.D. 1958) (failure to plead affirmative defenses results in waiver)