Estate of Johnson
2015 ND 110
| N.D. | 2015Background
- Jeanne Johnson died in 2010; her residuary estate (including a quarter section of land: farmland + 9-acre farmstead) was devised to Stuart Johnson, Sandra Mark (personal representative), and Scott Johnson.
- In April 2010 Stuart leased the farmland; in October 2010 Mark (as personal representative) and Stuart executed a self-renewing cash-rent lease with an unbreakable option to purchase at an appraised price ($248,222).
- Steven Johnson later claimed ownership under a contract for deed; that claim was litigated and dismissed (affirmed on appeal in Johnson v. Mark).
- In 2013 Scott and Steven sought a court order directing distribution of a one-third interest in the farmland to them and enjoining Mark from selling it to Stuart; the district court denied relief, finding Mark acted reasonably for interested persons, and authorized the sale.
- The sale to Stuart was later conveyed by personal representative’s deed; appellants appealed and Mark moved to dismiss the appeal as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the appeal is moot because the farmland was sold | Scott/Steven: Sale to Stuart cannot moot appeal because Stuart is an interested devisee and Court can still provide relief | Mark: Sale precludes relief; appeal is moot (analogous to In re Estate of Shubert) | Not moot — sale to an interested devisee does not eliminate this Court’s jurisdiction and does not bar review |
| Whether a personal representative may lease/sell estate realty to a devisee | Scott/Steven: Title devolved at death to devisees; PR exceeded authority by leasing with option and selling to Stuart | Mark: PR has statutory power to control, lease, and sell estate property if acting reasonably for benefit of interested persons | PR has statutory authority to possess, lease, and sell estate land, but only if acting reasonably for benefit of interested persons |
| Whether district court properly found Mark acted reasonably for interested persons when entering the lease/option | Scott/Steven: District court lacked basis; no evidence supporting reasonableness or necessity of the transaction | Mark: Court implicitly found lease/sale necessary (argued to cover administration costs) | Reversed — district court’s finding is clearly erroneous because it failed to explain or cite evidence; remanded for further findings or additional evidence |
Key Cases Cited
- In re Estate of Shubert, 839 N.W.2d 811 (N.D. 2013) (appeal moot where sale to uninterested good-faith purchasers was completed without stay)
- Johnson v. Mark, 834 N.W.2d 291 (N.D. 2013) (prior appeal affirming dismissal of specific-performance claim against estate)
- In re Estate of Hass, 643 N.W.2d 713 (N.D. 2002) (upholding PR’s sale of farmland where sale was reasonable for estate/beneficiaries)
- Green v. Gustafson, 482 N.W.2d 842 (N.D. 1992) (statutory recognition of PR’s power to sell estate property)
- Boe v. Rose, 574 N.W.2d 834 (N.D. 1998) (discussing PR’s power over title during administration)
- In re Estate of Wicklund, 812 N.W.2d 359 (N.D. 2012) (standards for appellate review of probate factual findings)
