Erickson v. Brown
813 N.W.2d 531
| N.D. | 2012Background
- Dregseth sued Brown and related entities for equitable remedies, promissory estoppel, equitable estoppel, and unjust enrichment over an alleged ownership interest in Capital Harvest.
- Dregseth previously worked for Brown from 1999 to 2003, and later joined a dispute over compensation and ownership promised by Brown.
- Prior proceedings dismissed many claims; a bench trial in June 2010 addressed promissory estoppel, equitable estoppel, and unjust enrichment against Brown.
- District court issued a memorandum decision in January 2011, dismissing the remaining claims; judgments entered March and July 2011; appeal timely filed.
- On appeal, Dregseth challenges the sufficiency of findings under Rule 52(a)(1) and Brown’s creditability, and argues the district court erred in dismissing equitable and unjust enrichment theories.
- This Court affirms, upholding the district court’s Rule 52(a)(1) findings, its treatment of Brown’s testimony, and the dismissal of promissory estoppel, equitable estoppel, and unjust enrichment claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Were the Rule 52(a)(1) findings adequate? | Dregseth argues findings are unclear and insufficient. | Brown contends findings are sufficient to review on appeal. | Findings adequate under Rule 52(a)(1). |
| Must Brown’s perjury be rejected totally when relied upon partly? | Brown committed perjury; his entire testimony should be rejected. | Credibility evaluated by the court; other evidence supports remaining findings. | Partial reliance allowed; not grounds to reverse all rulings. |
| Did the district court err in promissory estoppel by finding an unambiguous promise? | Brown promised an 8% ownership; enforceable under promissory estoppel. | Promise lacked completeness and essential terms; not enforceable. | First element not met; no enforceable promissory estoppel. |
| Did equitable estoppel create a valid enforceable claim here? | Equitable estoppel could create enforceable rights to an ownership interest. | Equitable estoppel cannot create rights; it only defends against misstatements. | Equitable estoppel does not create a cause of action; properly dismissed. |
| Was unjust enrichment proven? | Dregseth's contributions increased value and Brown benefited unjustly. | No proven link between enrichment and lack of compensation; lack of justification. | District court did not err in finding no unjust enrichment. |
Key Cases Cited
- Erickson v. Brown, 747 N.W.2d 34 (N.D. 2008) (remanded for further proceedings on deceit and equitable claims; discussion of promises)
- City of Fargo v. Salsman, 760 N.W.2d 123 (N.D. 2009) (Findings of fact adequate if they illuminate factual basis)
- Urlaub v. Urlaub, 325 N.W.2d 234 (N.D. 1982) (trial judge credibility determinations; judge as trier of facts)
- Lohse v. Atlantic Richfield Co., 389 N.W.2d 352 (N.D. 1986) (estoppel requires clear, definite terms to be enforceable)
- Peterson Mechanical, Inc. v. Nereson, 466 N.W.2d 568 (N.D. 1991) (estoppel generally a question of fact; credibility and reliance considerations)
- Cavalier County Memorial Hosp. Ass’n v. Kartes, 343 N.W.2d 781 (N.D. 1984) (elements of unjust enrichment and restitution principles)
- Zuger v. N.D. Ins. Guar. Ass’n., 494 N.W.2d 135 (N.D. 1992) (unjust enrichment five element test)
- State v. Bauer, 783 N.W.2d 21 (N.D. 2010) (caution about overreliance on pattern jury instructions)
