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The Pifer Group, Inc. v. Liebelt
2015 ND 150
| N.D. | 2015
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Background

  • 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)
Read the full case

Case Details

Case Name: The Pifer Group, Inc. v. Liebelt
Court Name: North Dakota Supreme Court
Date Published: Jun 11, 2015
Citation: 2015 ND 150
Docket Number: 20140442
Court Abbreviation: N.D.