Klein v. Sletto
2017 ND 26
| N.D. | 2017Background
- Kevin Klein conveyed McHenry County property to Glen and Norine Sletto by warranty deed recorded March 10, 1993; portions later transferred to Kip Farms, Gregory Sletto (2001), and Donald Schmidt (2002).
- In January 2014 Kevin and Lynn Klein sued Glen, Norine, and Gregory Sletto seeking quiet title and damages for breach of an alleged oral buy-back agreement and fraud.
- Kleins alleged an oral 1993 agreement that Kevin could lease the land for ten years and then repurchase the remainder (except the Kip Farms parcel) for about $50,000; no written contract was produced.
- Defendants moved for summary judgment arguing the statute of frauds required a writing and statutes of limitations barred the claims; parties disputed depositions of Glen and Norine Sletto and later executed a protective stipulation.
- District court granted summary judgment for defendants, dismissing claims with prejudice and quieting title in Gregory Sletto; Kleins appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an oral agreement for sale of land is enforceable despite statute of frauds | Klein: partial performance (leasing, payments, deeds as mortgage/security) removes statute of frauds bar | Sletto: agreement must be written under statute of frauds; no admissible evidence of enforceable oral contract | Held: No evidence of a contract satisfying statute of frauds; summary judgment affirmed |
| Whether Kleins may assert partial-performance exception to statute of frauds | Klein: acts (payments, renting, deed as security) constitute partial performance | Sletto: no qualifying acts incontrovertibly pointing to the alleged sale agreement | Held: Kleins did not raise partial-performance theory below; cannot raise it first on appeal; district court correctly found no admissible evidence of such performance |
| Whether fraud claim is time-barred | Klein: alleged fraudulent inducement to transfer property in 1993; claim accrues upon discovery | Sletto: statute of limitations expired; Kleins discovered sale activity in 2002 | Held: Discovery rule places Kleins on notice in 2002 (sale to Schmidt); six-year limitations expired before 2014 suit; fraud claim dismissed |
| Whether district court erred by not compelling depositions of Glen and Norine Sletto | Klein: depositions could have supported oral agreement | Sletto: parties executed stipulation/protective order; depositions unduly burdensome given health | Held: Parties had signed a stipulation precluding depositions; any failure to decide motion was invited and harmless error |
Key Cases Cited
- Hamilton v. Woll, 823 N.W.2d 754 (N.D. 2012) (summary-judgment standard and review explained)
- Riemers v. Hill, 881 N.W.2d 624 (N.D. 2016) (nonmoving party must produce competent admissible evidence to defeat summary judgment)
- Constellation Dev., LLC v. Western Trust Co., 882 N.W.2d 238 (N.D. 2016) (partial performance can bar statute-of-frauds defense if agreement exists)
- Bloomquist v. Goose River Bank, 836 N.W.2d 450 (N.D. 2013) (partial-performance test: acts must unmistakably point to existence and terms of alleged agreement)
- Rose v. United Equitable Ins. Co., 632 N.W.2d 429 (N.D. 2001) (discovery rule for accrual of fraud claims)