City of Glen Ullin v. Schirado

959 N.W.2d 47

CITY OF GLEN ULLIN and Park District of the City of Glen Ullin, Plaintiffs and Appellees

v.Karen SCHIRADO and Jerome Schirado, Defendants and Appellants

No. 20200345

Supreme Court of North Dakota.

FILED APRIL 20, 2021

Rehearing Denied May 20, 2021

John J. Mahoney, Center, ND, for plaintiffs and appellees.

Benjamin C. Pulkrabek, Mandan, ND, for defendants and appellants.

Crothers, Justice.

[¶1] Karen and Jerome Schirado appeal from a judgment granting the City of Glen Ullin and the Glen Ullin Park District permanent injunctive relief and awarding the Park District attorney's fees. The Schirados argue the district court erred in granting summary judgment and awarding attorney's fees. We affirm.

I

[¶2] This case comes to this Court on a second appeal. City of Glen Ullin, et al. v. Schirado, et al. , 2020 ND 185, 958 N.W.2d 155 ( Schirado I ). The dispute involves lots, streets, and alleys within or near the City of Glen Ullin. Id. at ¶ 2. The Park District owns the lots while the City controls the streets and alleys running between the lots. Id. The Schirados own land near both Park District and City property. Id.

[¶3] In 2013 the Park District sued the Schirados to enjoin them from fencing and allowing their horses to graze on Park District lots. The Park District was granted default judgment. In 2019 the Park District and the City brought the present suit, alleging the Schirados violated the 2013 judgment. The suit contained claims similar to the 2013 suit, with additional claims involving the City's streets and alleys which were not involved in the original action.

[¶4] The Schirados conceded they placed fencing on the properties and allowed their horses to graze, but alleged they were given permission by the City in exchange for removing garbage that accumulated on the streets and alleys. The Schirados claimed they devoted many hours and thousands of dollars removing garbage from the streets and alleys. They resisted summary judgment, arguing partial performance of their agreement satisfied the statute of frauds.

[¶5] The district court granted a preliminary injunction and subsequently summary judgment in favor of the City and the Park District. The court concluded the suit was based on the same facts and issues as the 2013 case, and the entire case was res judicata. The court did not address the Schirados’ arguments regarding a partially performed agreement with the City. The court also found the Schirados in contempt of court because of their violation of the 2013 judgment and awarded attorney's fees and costs to the City and the Park District in the amount of $11,106.85. The Schirados appealed that judgment and we reversed. Schirado I , 2020 ND 185, ¶ 9, 958 N.W.2d 155.

[¶6] In Schirado I , this Court held the claim concerning the Park District's property was res judicata, the claim concerning the City's property was not res judicata, and the attorney's fees award was not adequately explained. Id. at ¶¶ 7-8. We reversed the judgment granting relief to the City, and reversed and remanded the award of attorney's fees for the district court to explain its rationale for the award, including which amount is a sanction for contempt, and which portion is allocated to each plaintiff. Id. at ¶ 9.

[¶7] On remand, the Schirados filed a motion for trial, claiming Karen Schirado possessed additional testimony and evidence "necessary to allow her to fully present her case." The City and Park District opposed the motion. The district court denied the motion for trial and concluded the Schirados had two opportunities to present evidence of an oral or written agreement to use the City property and failed to do so. The court granted the City's motion for summary judgment, concluding the Schirados failed to present admissible evidence in resistance to the City and Park District's motion for summary judgment. The court also granted the City and the Park District permanent injunctive relief and awarded the Park District $5,460.00 in attorney's fees. The Schirados appeal from the amended judgment.

II

[¶8] The Schirados argue summary judgment was improperly granted because of four issues of material fact: (1) City Council meeting minutes from May 12, 2003 establishes an enforceable agreement under N.D.C.C. § 9-06-04 ; (2) Schirados partially performed an unwritten agreement; (3) Schirados’ work cleaning up the city streets was a valuable, substantial, and permanent improvement; and (4) Schirados took possession of the City's streets and alleys after entering into the alleged unwritten agreement.

[¶9] The standard of review for summary judgment is well established:

"In determining whether summary judgment was appropriately granted, we must view the evidence in the light most favorable to the party opposing the motion, and that party will be given the benefit of all favorable inferences which can reasonably be drawn from the record. On appeal, this Court decides whether the information available to the district court precluded the existence of a genuine issue of material fact and entitled the moving party to judgment as a matter of law. Whether the district court properly granted summary judgment is a question of law which we review de novo on the entire record."

Klein v. Sletto , 2017 ND 26, ¶ 7, 889 N.W.2d 918 (quoting Hamilton v. Woll , 2012 ND 238, ¶ 9, 823 N.W.2d 754 ).

[¶10] "Summary judgment is appropriate when ‘there is no dispute as to either the material facts or the inferences to be drawn from the undisputed facts, or whenever only a question of law is involved.’ " Rooks v. Robb , 2015 ND 274, ¶ 10, 871 N.W.2d 468 (quoting First Nat'l Bank v. Clark , 332 N.W.2d 264, 267 (N.D. 1983) ). Under Rule 56, N.D.R.Civ.P., the movant bears the burden of showing no genuine issue of material fact exists. Rooks , at ¶ 10. The party resisting the motion for summary judgment is given all favorable inferences which may reasonably be drawn from the evidence. Id. A party resisting summary judgment cannot only rely on the pleadings, but must present competent admissible evidence raising an issue of material fact. Swenson v. Raumin , 1998 ND 150, ¶ 9, 583 N.W.2d 102. A non-moving party cannot rely on speculation. Beckler v. Bismarck Pub. Sch. Dist. , 2006 ND 58, ¶ 7, 711 N.W.2d 172.

A

[¶11] Under the statute of frauds, a contract for an interest in real property is invalid "unless the same or some note or memorandum thereof is in writing and subscribed by the party to be charged." N.D.C.C. § 9-06-04. "A subscription is the same as signing." Bouten v. Richard Miller Homes, Inc. , 321 N.W.2d 895, 899 (Minn. 1982) ; 2A. Corbin, Contracts § 521; 4 S. Williston, A treatise on the Law of Contracts § 585 (3d ed. 1961). For purposes of this decision we will, as the parties did, assume without deciding that the right to graze horses on another person's land is an interest in real property.

[¶12] The Schirados assert the City Council's May 12, 2003 meeting minutes constitute a sufficient memorandum to satisfy the statute of frauds and allow the Schirados to use the city streets and alleys. Although the writing might constitute a sufficient memorandum in the proper circumstance, this writing does not contain what the Schirados claim.

[¶13] An agreement allowing the Schirados to use city streets and alleys does not appear in the City Council's minutes. Rather, the minutes state: "Karen Schirado was present to inquire if she can graze horses on the Schultz land located on the extreme north side of Glen Ullin. The Council determined that this is permissible." A member of the City Council on May 12, 2003, explained her understanding of the agreement was that the Schirados purchased "the Schultz land," and the City agreed the Schirados could graze horses on their land only. Karen Schirado asserted in her affidavit "she and her husband had an agreement with the Glen Ullin City Counsel [sic]," the "land could be used by she and her husband as pasture land," "there was a lot of garbage," "if she cleaned it up she and her husband could use the platted streets and alleys as part of their pasture land," and "she has cleaned up the garbage." However, no terms of the "agreement" were provided and affidavits containing conclusory statements unsupported by specific facts are insufficient to raise a material factual dispute. BTA Oil Producers v. MDU Res. Group, Inc. , 2002 ND 55, ¶ 49, 642 N.W.2d 873.

[¶14] The district court concluded the Schirados’ evidence failed to provide competent admissible evidence of an agreement allowing the Schirados to use anything but their own land. We therefore agree with the district court that no genuine issue of material fact exists whether the minutes created an effective agreement to allow the Schirados to use City land.

B

[¶15] Part performance may remove an agreement from the statute of frauds. See Trosen v. Trosen , 2014 ND 7, ¶ 21, 841 N.W.2d 687. A party asserting part performance removed an unwritten agreement from the statute of frauds must prove that a contract existed. Id. at ¶ 22. This Court has said:

"The general rule is that contracts for the sale of real property and transfers of real property interests must be made by an instrument in writing. Section 9-06-04, N.D.C.C.; Section 47-10-01, N.D.C.C. However, part performance of an oral contract which is consistent only with the existence of the alleged contract removes it from the statute of frauds. Poyzer v. Amenia Seed & Grain Co. , 409 N.W.2d 107 (N.D. 1987). While partial payment of the purchase price alone is not justification for enforcing an oral contract to convey land, partial payment together with other acts such as possession or the making of valuable improvements may be sufficient to take a contract out of the statute of frauds. See Parceluk v. Knudtson , 139 N.W.2d 864 (N.D. 1966). When improvements to the property are relied upon as part performance of an oral contract for purposes of removing it from the statute of frauds, the improvements made on the

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