2 N.W.3d 685
N.D.2024Background
- Viola and Caleb Heath, Montana residents, owned mineral rights in Dunn County, North Dakota; they executed wills and trust agreements in the 1970s.
- After their deaths, litigation in Montana resulted in a 1989 settlement transferring certain assets to Viola Heath's estate; Montana probate closed in 1993, suspending the personal representatives' authority.
- In 2015-2016, the co-personal representatives (Tisher and Schleve) sought North Dakota probate orders recognizing their authority and transferring mineral rights from the Heath estates to heirs, despite their Montana authority having been suspended.
- Wells Fargo, as successor to Norwest (Caleb Heath’s designated trustee), discovered in 2017-2019 that mineral revenues were not being received due to the prior transfer of mineral rights.
- In 2023, Wells Fargo moved to vacate the North Dakota probate orders under N.D.R.Civ.P. 60(b)(4) and 60(b)(6), arguing improper transfer and notice; the district court granted the motions, which Schleve appealed.
Issues
| Issue | Schleve's Argument | Wells Fargo's Argument | Held |
|---|---|---|---|
| Standing of Wells Fargo to challenge probate orders | Lacks sufficient interest | Successor trustee/claiming mineral rights | Wells Fargo has standing |
| Subject matter jurisdiction of Dunn Cnty. Court (Rule 60(b)(4)) | Court had jurisdiction over probate applications | No SMJ due to lack of foreign authority | District court erred; court had subject matter jurisdiction |
| Personal jurisdiction and sufficiency of notice | Notice by publication was sufficient | Was not properly served, so no personal jurisdiction | Remanded for further determination of personal jurisdiction |
| Timeliness of Wells Fargo's 60(b)(6) motion | Motion not brought within a reasonable time | Other equitable factors should control | Remanded for insufficient findings on reasonableness of timing |
| Judicial notice of Wells Fargo as Norwest’s successor | Improper judicial notice (using judge’s personal knowledge) | Status was not disputed, common knowledge | Court abused discretion taking judicial notice of successor status |
Key Cases Cited
- Nodak Mut. Ins. Co. v. Ward Cnty. Farm Bureau, 676 N.W.2d 752 (N.D. 2004) (standard for standing to participate in litigation)
- Rebel v. Nodak Mut. Ins. Co., 585 N.W.2d 811 (N.D. 1998) (requirements for standing in North Dakota)
- First W. Bank & Tr. v. Wickman, 527 N.W.2d 278 (N.D. 1995) (review standard for Rule 60(b)(4) motions for void judgments)
- Johnson, Johnson, Stokes, Sandberg & Kragness, Ltd. v. Birnbaum, 555 N.W.2d 583 (N.D. 1996) (judgments void for lack of subject matter or personal jurisdiction)
- Kopp v. Kopp, 622 N.W.2d 726 (N.D. 2001) (standard for Rule 60(b)(6) relief due to manifest injustice)
- Orwig v. Orwig, 955 N.W.2d 34 (N.D. 2021) (judicial notice and abuse of discretion standard)