State v. Doll
2012 ND 32
| N.D. | 2012Background
- In 2003, Bendishes sold Fort Rice property to Castillo by contract for deed; down payment $7,500 and monthly payments of $620.86 at 5% interest.
- Castillo made payments through January 1, 2005, after which payments became sporadic.
- On December 28, 2006, a Lease Purchase Agreement was executed among Bendish, Castillo, and Cendak, but it was not filed of record.
- Castillo and then Gange operated the Fort Rice Bar & Grill on the property; tax liens against Castillo were filed in 2009–2010.
- In 2010, Bendishes sued to cancel the contract for deed; Cendak counterclaimed alleging assignment and full payment.
- The district court cancelled the contract for deed, held no party had the right to redeem, and found disputes over amounts owed and whether there was a valid assignment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Redemption period after contract cancellation | Bendishes: court acted within discretion; no redemption right for Cendak. | Cendak: entitled to a redemption period due to possession and equity. | No abuse of discretion; no redemption right conferred. |
| Effect of Lease Purchase Agreement on assignment | Bendishes: document is not an assignment of the contract for deed. | Cendak: agreement contemplates assignment to Cendak. | Lease Purchase Agreement not an assignment; Cendak not entitled to redemption. |
| Whether Castillo’s interest was validly assigned to Cendak | Bendishes: no valid assignment; Cendak has no lien or title interest. | Cendak: assignment/promise to assign should be recognized. | No assignment proven; Cendak lacks interest to redeem. |
Key Cases Cited
- Pyle v. Egeberg, 356 N.W.2d 94 (N.D. 1984) (cancellation by action; equity governs redemption)
- Johnson v. Gray, 265 N.W.2d 861 (N.D. 1978) (cancellation of land contracts; equity standards)
- Liebelt v. Liebelt, 303 N.W.2d 316 (N.D. 1981) (discretion on redemption after default; ordinarily avoid forfeiture)
- Moch v. Moch, 562 N.W.2d 558 (N.D. 1997) (no automatic redemption period; court’s discretion)
- Adolf Rub Trust v. Rub, 474 N.W.2d 73 (N.D. 1991) (no statutory redemption period upon cancellation by action)
- Straub v. Lessman, 403 N.W.2d 5 (N.D. 1987) (equitable considerations in redemption)
- Shervold v. Schmidt, 359 N.W.2d 361 (N.D. 1984) (equity-based review of contract cancellation)
- Schumacher Homes, Inc. v. J & W Enters., 318 N.W.2d 763 (N.D. 1982) (equitable contract interpretation)
- General Electric Credit Corp. v. Larson, 387 N.W.2d 734 (N.D. 1986) (contract interpretation as a whole)
- Habeck v. MacDonald, 520 N.W.2d 808 (N.D. 1994) (ambiguity and extrinsic evidence in contract)
- National Bank of Harvey v. International Harvester Co., 421 N.W.2d 799 (N.D. 1988) (interpretation of contract terms and intent)
