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20250367
N.D.
Jul 9, 2026
I
II
A
B
III

Emily Cowan, Plaintiff, Appellant, and Cross-Appellee v. Dr. Guy Slann; Williston Foot and Ankle Clinic, a trade name for Accessible Podiatry, P.C.; and Doe and Roe Defendants, Defendants and CHI St. Alexius Health Williston, a trade name for Mercy Medical Center, Defendant, Appellee, and Cross-Appellant

No. 20250367

IN THE SUPREME COURT STATE OF NORTH DAKOTA

2026 ND 131

Appeal from the District Court of Williams County, Northwest Judicial District, the Honorable Kirsten M. Sjue, Judge.

DISMISSED.

Opinion of the Court by Fair McEvers, Chief Justice.

Nathan D. Severson (argued) and Kylee M. Carlin (appeared), Fargo, ND, for plaintiff, appellant, and cross-appellee.

Tracy V. Kolb (argued), Bismarck, ND, Julia J. Nierengarten (on brief), Minneapolis, MN, and Jessie L. Sogge (on brief) and Steven R. Schwegman (on brief), St. Cloud, MN, for defendant, appellee, and cross-appellant.

Reed Johnson (argued), under the Rule on Limited Practice of Law by Law Students, and Philip J. Axt (appeared), Solicitor General, Bismarck, ND, for amicus curiae State of North Dakota.

Mark A. Behrens and Christopher E. Appel, Washington, DC, and Zachary E. Pelham, Bismarck, ND, for amici curiae North Dakota Hospital Association, North Dakota Medical Association, American Medical Association, and American Tort Reform Association.

Fair McEvers, Chief Justice.

[¶1] Emily Cowan appeals and CHI St. Alexius Health Williston, a trade name for Mercy Medical Center, (“CHI”) “conditionally” cross-appeals from an amended judgment entered after a jury returned a verdict for Cowan on her medical malpractice claim against CHI, awarding her economic and noneconomic damages. Applying N.D.C.C. § 32-42-02, which limits noneconomic damages for health care malpractice claims, the district court reduced the jury’s award of past and future noneconomic damages to $500,000. Cowan argues the statutory cap on noneconomic damages violates her constitutional right to a jury trial under N.D. Const. art. I, § 13. CHI argues Cowan waived her right to appeal when she accepted full payment of the amended judgment and filed a satisfaction; the statutory cap on noneconomic damages does not violate her right to a jury trial; and the court erred in allocating 100% of Cowan’s noneconomic damages to CHI, which was found 65% at fault.

[¶2] We conclude Cowan accepted substantial benefits under the amended judgment, thereby waiving her right to appeal, when she accepted and acknowledged receiving full payment of the entire amended judgment and filed a noncompliant satisfaction, without reserving any issue and without expressly preserving her right to appeal. Based on this conclusion, we need not address CHI’s “conditional” cross-appeal. We accordingly dismiss both Cowan’s appeal and CHI’s cross-appeal.

I

[¶3] In August 2020, Cowan commenced this medical malpractice action against the defendants. Cowan’s claims arose out of an August 2018 surgery, alleging defendants were negligent when Dr. Slann performed surgery on Cowan’s uninjured right foot, rather than on her injured left foot. Dr. Slann settled Cowan’s claims against him before trial and was dismissed with prejudice. The case against CHI proceeded to a jury trial.

[¶4] After an eight-day trial, the jury returned a verdict for Cowan on November 7, 2024, awarding her $265,000 in past economic damages; $360,000 in past noneconomic damages; $2,000,000 in future economic damages; and $2,000,000 in future noneconomic damages. The jury allocated 35% fault to Dr. Slann and 65% fault to CHI. CHI thereafter moved the district court to reduce the noneconomic damages awarded to the $500,000 statutory cap under N.D.C.C. § 32-42-02. Cowan opposed the motion and challenged the constitutionality of the statutory cap.

[¶5] After a hearing, the district court entered an order concluding the noneconomic damages cap in N.D.C.C. § 32-42-02 is constitutional and does not violate the right to a jury trial under N.D. Const. art. I, § 13, and reduced the total award of past and future noneconomic damages to $500,000. After further briefing, the court construed the language of N.D.C.C. §§ 32-03.2-02 and 32-42-02, concluded the apportionment of fault under N.D.C.C. § 32-03.2-02 should occur first, and calculated CHI’s 65% allocation of fault for the jury’s $2,360,000 noneconomic damages award was $1,534,000. In its order, the court again held the noneconomic damages awarded to Cowan were limited to $500,000 under N.D.C.C. § 32-42-02.

[¶6] On May 22, 2025, the district court entered judgment. On August 18, 2025, the district court entered an order granting Cowan’s motion for relief from judgment under N.D.R.Civ.P. 60, and correcting the calculation and amount of interest awarded. On the same day, the court entered an amended judgment in favor of Cowan and against CHI, “in the amount of $1,963,578.31 in damages, plus preverdict interest on past damages in the amount of $44,752.94, together with an award of costs for postverdict interest under N.D.C.C. § 28-26-13 in the amount of $116,755.08, as well as an additional award of costs and disbursements in the amount of $174,426.28, for a total of $2,299,512.61.” The amended judgment also awarded Cowan post-judgment interest from the date of entry of the original judgment on May 22, 2025.

[¶7] Rather than appeal, CHI opted to pay the amended judgment and additional post-judgment interest. Cowan accepted CHI’s payments and filed a satisfaction of the amended judgment in the district court on September 11, 2025. This filed satisfaction of amended judgment provided:

The undersigned, [Cowan’s attorney], hereby acknowledges that full payment has been received in satisfaction of the Amended Judgment entered by the Court on August 18, 2025 (Index #447). Specifically:

1. A payment in the amount of $2,299,512.61, representing the judgment amount as reflected in the Amended Judgment (exclusive of post-judgment interest), was received on September 9, 2025.

2. A payment in the amount of $76,230.42, representing post-judgment interest accrued from May 22, 2025, through September 9, 2025, was received on the morning of September 10, 2025.

Accordingly, the undersigned certifies that the Amended Judgment has been fully satisfied.

[¶8] Although Cowan’s attorney signed the filed satisfaction of amended judgment, it is undisputed that the filed satisfaction was not acknowledged in the manner required under N.D.C.C. § 28-20-24. See Nodak Mut. Ins. Co. v. Stegman, 2002 ND 113, ¶ 9, 647 N.W.2d 133 (“[A]n acknowledgment of satisfaction of judgment must be notarized or otherwise witnessed and authenticated by a public official.”). Cowan’s attorney later declined CHI’s request for an amended satisfaction of amended judgment complying with N.D.C.C. § 28-20-24.

[¶9] On October 15, 2025, Cowan filed her notice of appeal. On October 29, 2025, this Court requested the parties submit responses addressing appealability, specifically mootness, in light of the satisfaction of amended judgment filed in the district court. CHI also filed a notice of “conditional” cross-appeal, conditioned on this Court’s jurisdictional determination.

[¶10] On November 12, 2025, Cowan and CHI filed their responses with this Court regarding appealability. CHI also supplemented the record with email communications between attorneys for Cowan and CHI regarding the payments and the noncompliant satisfaction of the amended judgment, also including two “acknowledgment[s] of funds” signed by Cowan’s counsel for the payments received for the amended judgment and post-judgment interest. This Court advised the parties the appealability issue would be considered with the merits.

II

[¶11] At the outset, we must first decide whether we have jurisdiction of the appeal before considering the appeal’s merits, and “we will dismiss an attempted appeal that fails for lack of jurisdiction.” Stegman, 2002 ND 113, ¶ 6. CHI argues this Court should conclude that, although the satisfaction of amended judgment Cowan filed contained a defect, Cowan voluntarily waived her right to appeal when she accepted full payment of the amended judgment and filed the satisfaction. Cowan contends this Court has jurisdiction.

A

[¶12] We have explained that a party who voluntarily pays or satisfies a judgment generally waives the right to appeal from that judgment. See In re Rose Henderson Peterson Min. Tr., 2022 ND 92, ¶ 8, 974 N.W.2d 372; Schwab v. Zajac, 2012 ND 239, ¶ 8, 823 N.W.2d 737; Ramsey Fin. Corp. v. Haugland, 2006 ND 167, ¶ 9, 719 N.W.2d 346; Mr. G’s Turtle Mountain Lodge, Inc. v. Roland Twp., 2002 ND 140, ¶ 9, 651 N.W.2d 625; Lyon v. Ford Motor Co., 2000 ND 12, ¶ 7, 604 N.W.2d 453. “A satisfaction of judgment on the record extinguishes the claim, and the controversy is deemed ended, leaving an appellate court with nothing to review.” Stegman, 2002 ND 113, ¶ 7; see also Lyon, ¶ 10. “An appellate court is without jurisdiction if there is no actual and justiciable controversy.” Stegman, ¶ 7. “[A]n attempted appeal from a judgment that has been satisfied of record fails for lack of jurisdiction.” Id. “[V]oluntary acquiescence in a judgment also constitutes a waiver of the right to appeal, and formal execution of a satisfaction of judgment is not a prerequisite for this principle to apply.” Ramsey Fin. Corp., ¶ 9 (citation omitted); see also Schwab, ¶ 8.

[¶13] We have held payment of, or acquiescence in, a judgment under coercion or duress is not a waiver of the right to appeal. Schwab, 2012 ND 239, ¶ 8; Lyon, 2000 ND 12, ¶ 14. We have further held that “[s]atisfaction of an independent undisputed portion of a judgment does not operate as a full waiver of the right to appeal.” Rose Henderson Peterson, 2022 ND 92, ¶ 8 (citing State ex rel. Storbakken v. Scott‘s Electric, Inc., 2014 ND 97, ¶¶ 7-8, 846 N.W.2d 327); see also Feickert v. Feickert, 2022 ND 210, ¶ 7, 982 N.W.2d 316 (abandoning voluntary payment rule in cases of voluntary partial payment of the judgment, but limiting the challenge to the judgment to disputed claims and amount of damages that have not been satisfied). “Payment of costs that are incidental to the judgment and independent of the merits of the case also will not defeat the right to appeal.” Rose Henderson Peterson, ¶ 8; Twogood v. Wentz, 2001 ND 167, ¶ 7, 634 N.W.2d 514; see also Volker v. Nygaard, 2026 ND 56, ¶ 8, 32 N.W.3d 349.

[¶14] As a variation on this principle, this Court has also explained that, as a general rule, a party who voluntarily accepts substantial benefits under a judgment waives the right to appeal from the judgment. Bangen v. Bartelson, 553 N.W.2d 754, 757-58 (N.D. 1996); Sulsky v. Horob, 357 N.W.2d 243, 245-46 (N.D. 1984); see also Stegman, 2002 ND 113, ¶ 10 n.3; Lyon, 2000 ND 12, ¶ 7 n.1. However, “[n]ot every acceptance of a benefit from a judgment precludes the right to appeal.” Rose Henderson Peterson, 2022 ND 92, ¶ 9. “There is no waiver when ‘the parts of the order or judgment are separate and independent and the receipt of a benefit from one part is not inconsistent with an appeal from another. . . . [A]ppellate review survives the acceptance of a benefit which is not placed in jeopardy by the review sought.’” Id. (quoting Bangen, at 757); see also Brunswick Corp. v. Haerter, 182 N.W.2d 852, 859 (N.D. 1971). “In a similar vein, this [C]ourt has declined to dismiss an appeal where the appellant’s right to the benefit was not disputed by the appellee’s filing of a cross-appeal to contest the benefit.” Bangen, at 757. We have further summarized the exceptions to this general rule:

“An acceptance of substantial benefits under a judgment does not waive the right to appeal from that judgment if (1) the benefits were fixed by consent, are undisputed, or could not be changed or reversed by the appeal [see Brunswick Corporation v. Haerter, 182 N.W.2d 852, 859 (N.D. 1971); Boyle v. Boyle, 19 N.D. 522, 126 N.W. 229, 230 (1910); Tyler v. Shea, [61 N.W. 468, 469 (N.D. 1894)]]; (2) the acceptance of the benefit was conditional, involuntary, or

unconscious [see Nastrom v. Nastrom, 276 N.W.2d 130, 131 (N.D. 1979); Grant v. Grant, 226 N.W.2d 358, 361 (N.D. 1975)].”

Sulsky, at 246 (quoting Piper v. Piper, 234 N.W.2d 621, 622 (N.D. 1975)).

[¶15] In Lyon, this Court explained that “[e]ven though the acceptance-of-benefits rule of waiver is conceptually related to the voluntary-payment-or-satisfaction-of-judgment rule of waiver, we have sharply limited the acceptance-of-benefits rule to promote a strong policy in favor of reaching the merits, particularly in domestic relations appeals.” 2000 ND 12, ¶ 7 n.1 (citing Wetzel v. Wetzel, 1999 ND 29, ¶ 5, 589 N.W.2d 889; Bangen, 553 N.W.2d at 757; Sulsky, 357 N.W.2d at 245). We said “[t]he limited application of the acceptance-of-benefits rule is justified in divorce cases because it is unreasonable for an appellant to have to choose between economic adversity and the right to appeal.” Id. (citing Spooner v. Spooner, 471 N.W.2d 487, 489-90 (N.D. 1991)). We further wrote, however, that “[b]ecause of the obvious dissimilarity between satisfying a judgment in total and merely accepting some benefit of a multifaceted divorce judgment, and because of the absence of the policy considerations present in divorce cases, we find the acceptance-of-benefits cases unhelpful in resolving the issue in this case.” Id.

[¶16] In Fercho v. Fercho, we acknowledged that this “general rule,” at least in divorce cases, had “effectively been swallowed by its exceptions, leaving few if any circumstances in which the movant could show the appellant accepted the benefits of judgment and waived his right to appeal.” 2022 ND 214, ¶ 10, 982 N.W.2d 540. We agreed these exceptions promoted “our strong policy in favor of reaching” an appeal’s merits in a divorce action and, therefore, concluded “that a party to a divorce action who accepts benefits pursuant to a divorce judgment does not waive the right to appeal from the judgment,” overruling prior cases to the contrary. Id. We further held, however, that our decision in Fercho “has no application to non-divorce cases, or any other rule outside of the divorce context, such as waiver by voluntary payment or satisfaction of judgment.” Id. (citing Lyon, 2000 ND 12, ¶ 7 (collecting cases)).

[¶17] Because this case does not involve an appeal in a divorce action, our Fercho decision allowing a party to accept benefits under a divorce judgment has no application here.

B

[¶18] CHI argues that Cowan’s conduct before filing her notice of appeal was consistent with a prevailing party who intended to accept full satisfaction of the amended judgment and waive her right to appeal. CHI argues that this Court should not allow Cowan to exploit a procedural loophole she created and has refused to close by executing a proper satisfaction. CHI contends Cowan received the amended judgment’s full amount plus interest, she waived her right to appeal, and this Court should decline jurisdiction.

[¶19] While CHI concedes it voluntarily paid the amended judgment in full with interest intending not to appeal, CHI argues its “conditional” cross-appeal puts Cowan “at risk of receiving a less favorable judgment,” thereby cutting off her right to appeal. CHI contends that if this Court considers the constitutionality of the statutory cap, it should also consider CHI’s issue that the district court erred in allocating 100% of the capped noneconomic damages to CHI, rather than apportioning the cap based on the jury’s fault determinations.

[¶20] Cowan, however, asserts CHI’s supplemental record confirms that neither party understood payment of the amended judgment constituted a waiver of her appeal rights. She contends it was never her counsel’s intention “in filing the satisfaction of amended judgment to acknowledge through a formal filing that the entire case was adjudicated and over.” Cowan argues CHI’s conduct proves it understood payment and waiver are separate things, Cowan made her intent to appeal known before CHI paid, and her appeal can only increase the judgment and cannot reduce what she already received. In support of her argument, Cowan relies on Tyler v. Shea, 4 N.D. 377, 61 N.W. 468, 469 (1894), arguing an exception exists to the general rule—”that one cannot accept or secure a benefit under a judgment, and then appeal from it, when the effect of his appeal may be to annul the judgment, unless his right to the benefit is absolute, and cannot

possibly be affected by the reversal of the judgment.” In Tyler, this Court recognized an important qualification of the general rule, “[w]here the reversal of the judgment cannot possibly affect the appellant’s right to the benefit he has secured under the judgment, then an appeal may be taken, and will be sustained, despite the fact that the appellant has sought and secured such benefit.” Id.

[¶21] Rather than recognizing the validity and propriety of the amended judgment, Cowan contends that she never recognized the validity of the statutory cap on noneconomic damages, she accepted undisputed amounts, and she always disputed the district court’s $1,034,000 reduction of the jury’s noneconomic damages award. She further argues there was no “implied waiver” of her right to appeal based on the parties’ conduct, as documented in CHI’s supplemental exhibits, and CHI cannot manufacture a jurisdictional bar by filing its own “conditional” cross-appeal. She argues the filed satisfaction is not a “satisfaction of record” that would divest this Court of jurisdiction.

[¶22] Here, the satisfaction of amended judgment—that Cowan’s counsel prepared, signed, and filed—clearly states Cowan received “full payment” and “the undersigned certifies that the Amended Judgment has been fully satisfied.” Nevertheless, the rule in Lyon, holding a satisfied judgment extinguishes the claim and ceases to exist, does not apply here because the filed satisfaction does not meet the requirements of N.D.C.C. § 28-20-24, and the amended judgment “has not been formally satisfied of record.” See Stegman, 2002 ND 113, ¶ 10 & n.3. But for the noncompliance of the filed satisfaction, the amended judgment would not exist and this Court would not have jurisdiction. However, unlike in Stegman, CHI has alleged Cowan waived her right to appeal by accepting substantial benefits under the amended judgment.

[¶23] We have previously held that whether payment of a judgment was voluntary depends on the facts and circumstances of the case, and the party seeking dismissal bears the burden to show the judgment was voluntarily paid. Schwab, 2012 ND 239, ¶ 8. As discussed, the record contains two acknowledgments of funds, signed by Cowan’s attorney, for CHI’s payments to Cowan. Cowan’s attorney also signed and filed the noncompliant satisfaction of

amended judgment in the district court. Although the noncompliant satisfaction does not extinguish the amended judgment, its express language acknowledges “full payment” received “in satisfaction of the Amended Judgment entered by the Court on August 18, 2025 (Index #447)” and “certifies that the Amended Judgment has been fully satisfied.” (Emphasis added.) The satisfaction’s plain language acknowledges full payment and does not state any intent for a partial payment or partial satisfaction, or otherwise reserve any part of the amended judgment, or other interlocutory order, for appeal. A showing that the judgment has been paid creates a presumption that the payment was voluntary. Schwab, ¶ 8.

[¶24] Moreover, the amended judgment does not contain “separate and independent” parts with respect to the economic and noneconomic damages awarded to Cowan. See Rose Henderson Peterson, 2022 ND 92, ¶ 9. The amended judgment generally grants Cowan judgment against CHI “in the amount of $1,963,578.31 in damages” without specifically separating out economic and noneconomic damages, although the judgment does separately state the awards of pre-verdict and post-verdict interest and additional costs and disbursements. While Cowan also appealed from the district court’s order reducing the damage award and argues her appeal would only increase the amount of the judgment, to grant the relief Cowan requests on appeal, this Court would be required to reverse the entire amended judgment on grounds the district court erred by applying the statutory cap on noneconomic damages. In accepting “full payment” of the amended judgment, without indicating it was a partial satisfaction or reserving any part of the amended judgment or order for appeal, Cowan acquiesced in the district court’s application of the statutory cap for noneconomic damages and its calculation of the total award of $2,299,512.61. Unlike the exception to the general rule noted in Tyler v. Shea, here the benefits Cowan accepted could potentially be reduced by the disputed issues of CHI’s cross-appeal. On this record, therefore, we conclude Cowan accepted substantial benefits under the amended judgment, thereby waiving her right to appeal from the judgment. In so concluding, to avoid confusion on what issues may be appealable, we also adopt a bright-line rule that in non-divorce cases, a party’s

voluntary acceptance of the full amount of a judgment, without reserving any issues for appeal, waives that party’s right to appeal from the judgment. To the extent this rule is inconsistent with the exception recognized in Tyler v. Shea, 4 N.D. 377, 61 N.W. 468, 469 (1894), that case is abrogated.

[¶25] Based on our analysis above, it is unnecessary to address CHI’s “conditional” cross-appeal.

[¶26] We conclude Cowan accepted substantial benefits under the amended judgment, thereby waiving her right to appeal, when she accepted and acknowledged receiving full payment of the entire amended judgment and filed a noncompliant satisfaction, without reserving any issue and without expressly preserving her right to appeal.

III

[¶27] We dismiss Cowan’s appeal and CHI’s “conditional” cross-appeal.

[¶28] Lisa Fair McEvers, C.J.

Jerod E. Tufte

Jon J. Jensen

Douglas A. Bahr

Mark A. Friese

Case Details

Case Name: Cowan v. Slann, et al.
Court Name: North Dakota Supreme Court
Date Published: Jul 9, 2026
Citation: 20250367
Docket Number: 20250367
Court Abbreviation: N.D.
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