Hinderman v. Krivor
2010 MT 230
Mont.2010Background
- Plaintiffs bought Lots 7 and 8 in Cayuse Ridge Ranch; Lot 8 deed noted a Montana Trust Indenture involving Northern Rockies Corporation.
- Two mortgages encumbered Lot 8 (2002 Northern Rockies/Larsons; 2002 Northern RockiesKrivors).
- Plaintiffs later purchased Lot 10 (2006) which noted a lien to Rocky Mountain Land/Northern Rockies; a 2002 mortgage to Northern Rockies Krivors also encumbered Lot 10.
- A 2007 settlement conference postponed foreclosure to allow payment of a discounted amount by Sept. 7, 2007, with a three-day window to pay full price and a mutual release of all claims.
- Plaintiffs failed to meet the Sept. 7, 2007 deadline; Defendants foreclosed on Sept. 10, 2007, and Plaintiffs filed lis pendens within a week and would not release it.
- District Court later granted summary judgment enforcing the settlement; Plaintiffs appealed alleging misrepresentation and improper enforcement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 56(f) discovery denial was erroneous | Hinderman/Schnell claim more discovery could preclude summary judgment. | Krivor/Rocky Mountain/Northern Rockies argue no showing how discovery would preclude judgment. | No abuse; discovery not shown to prevent summary judgment. |
| Whether the settlement agreement should be enforced despite alleged title misrepresentations | Misrepresentations about encumbrances vitiate the settlement. | Actual/constructive notice of encumbrances negates misrepresentation challenge; no need for new suit to enforce. | Enforceable; plaintiffs had notice and failed to show misrepresentation or grounds to invalidate. |
Key Cases Cited
- Rosenthal v. County of Madison, 2007 MT 277 (Mont. 2007) (discretionary control over discovery and rule 56(f) standard)
- In re Marriage of Mease, 2004 MT 59 (Mont. 2004) (valid settlement agreements and enforceability as contracts)
- Aetna Life Ins. Co. v. McElvain, 221 Mont. 138 (Mont. 1986) (prejudice from misrepresentations if truth investigated; contest limited)
- Callie v. Near, 829 F.2d 888 (9th Cir. 1987) (court can enforce settlement if existence/terms are not in dispute)
- Walker v. Warner, 228 Mont. 162 (Mont. 1987) (enforceability of settlements within pending litigation)
- Phelps v. Frampton, 2007 MT 263 (Mont. 2007) (summary judgment standard and burden-shifting framework)