Nuveen v. Nuveen
2011 ND 44
| N.D. | 2011Background
- Motschman appealed a district court summary judgment dismissing his action seeking a declaration that no valid contract existed or rescission, and appealed from an order denying his post-judgment motion for reconsideration.
- Bridgepoint offered to purchase Motschman’s mineral rights in Dunn County for $600 per acre, sent a mineral deed and a sight draft, and a second revised deed; Motschman signed the deed before a notary and Bridgepoint paid the full price by check and recorded the deed.
- Motschman later claimed he intended only to lease, not sell, and sent a withdrawal letter denying any transfer of land or mineral rights.
- Bridgepoint argued the correspondence and the deed collectively evidenced a valid contract and pointed to the deed’s title as a Mineral Deed; the deed was recorded.
- The district court granted summary judgment for Bridgepoint; Motschman moved for reconsideration, raising the statute of frauds for the first time, which the court denied.
- The supreme court affirmed, holding Motschman failed to properly raise the statute of frauds in the district court and there was no basis to rescind the contract.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Statute of frauds raised properly? | Motschman contends the deed failed to satisfy the statute of frauds because it did not list the actual purchase price. | Bridgepoint argues the statute was waived and that the deed and related letters together satisfy the writing requirement. | waived; not properly raised |
| Existence of a valid contract | No valid contract due to lack of consideration since money was not cashed/unpaid. | Documents formed a valid contract and consideration existed. | contract valid; rescission not warranted |
| Rescission due to failure of consideration | Consideration failed because Bridgepoint did not deliver valid payment as cash. | Tender of payment in check satisfied the contract; form did not void consideration; no objection at time of offer. | no failure of consideration; no rescission |
Key Cases Cited
- Baldus v. Mattern, 93 N.W.2d 144 (N.D. 1958) (statute of frauds pleading required)
- Kadrmas v. Kadrmas, 264 N.W.2d 892 (N.D. 1978) (waiver for not raising statute of frauds)
- Dvorak v. Dvorak, 2001 ND 178 (N.D. 2001) (abuse of discretion standard for reconsideration)
- Ellingson v. Knudson, 498 N.W.2d 814 (N.D. 1993) (afterthought arguments not proper on reconsideration)
- Refrigeration Sales Co., Inc. v. Mitchell-Jackson, Inc., 605 F. Supp. 6 (N.D. Ill. 1983) (reconsideration timing and grounds)
- Ugland v. Farmers’ & Merchants’ State Bank of Knox, 137 N.W. 572 (N.D. 1912) (tender of payment admissible unless legal tender demanded)
