The Pifer Group, Inc. v. Liebelt
2015 ND 150
| N.D. | 2015Background
- In 2013 Pifer Group entered separate written auction-sale agreements to auction farmland owned by Judith Liebelt and by Sandra and Dennis Janke; the printed contract provided specific fees on withdrawal or cancellation.
- Each agreement included a handwritten clause: “Seller reserves the right to reject any and all bids—If bids are rejected auction company has not earned said commission.”
- On the morning of the scheduled auction the sellers emailed Pifer Group they were withdrawing and would refuse any and all bids; no auction occurred.
- Pifer Group sued for breach and sought full sales commissions; the district court granted summary judgment to Pifer Group but awarded only the contract’s cancellation fees ($8,215.81).
- Sellers cross-appealed arguing the contracts were unenforceable because (1) the corporation lacked an auctioneer’s license and (2) Liebelt’s husband (alleged co-homesteader) did not sign.
- The Supreme Court affirmed, holding the agreements enforceable and the district court correctly interpreted the contract and awarded cancellation damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability based on auctioneer licensing | Pifer: Agreements enforceable because a licensed individual (Kevin Pifer) would conduct the auction | Sellers: Pifer Group (corporation) is unlicensed; auctioning without license is misdemeanor making contract void | Court: Statute and definitions show "auctioneer" means an individual; corporation need not hold license when a licensed individual will perform; contract not void |
| Homestead/signature requirement | Pifer: Contract not a conveyance; homestead signature statute inapplicable | Liebelt: If property is homestead, instrument must be executed and acknowledged by both spouses; husband did not sign | Court: Auction agreement is an employment/agency contract, not a conveyance; no conveyance or encumbrance occurred, so statute does not bar enforcement |
| Contract interpretation — withdrawal vs cancellation; entitlement to full commission | Pifer: Sellers merely "withdrew" so only withdrawal/fair-market-value clause applies; Pifer not cancelled so entitled to full commission | Sellers: Handwritten reservation lets them reject bids and avoid commissions; their withdrawal canceled the auction triggering contractual cancellation fee only | Court: Handwritten clause allowing sellers to reject bids controls but does not eliminate cancellation provision; sellers’ pre-auction withdrawal amounted to cancellation under ordinary meaning; district court correctly awarded contract cancellation damages |
Key Cases Cited
- Deckert v. McCormick, 857 N.W.2d 355 (N.D. 2014) (summary judgment standard and appellate review explained)
- Preference Pers., Inc. v. Peterson, 710 N.W.2d 383 (N.D. 2006) (unlicensed entity cannot enforce certain regulatory-licensed contracts)
- Northstar Founders, LLC v. Hayden Capital USA, LLC, 855 N.W.2d 614 (N.D. 2014) (principles for contractual interpretation and appellate review)
- Bismarck Realty Co. v. Folden, 354 N.W.2d 636 (N.D. 1984) (real estate listing/authorization is an employment/agency contract, not a conveyance)
