Silbernagel v. Silbernagel

• Decision Date: 25 July 2007
• Docket Number: No. 20060037.,20060037.
• Citation: 736 N.W.2d 441,2007 ND 124
• Parties: John M. SILBERNAGEL and Tom Silbernagel, Plaintiffs and Appellants, v. Stephen SILBERNAGEL a/k/a Steve Silbernagel and Jane Silbernagel a/k/a Jane V. Silbernagel, Defendants and Appellees.
• Court: North Dakota Supreme Court

736 N.W.2d 441

2007 ND 124

John M. SILBERNAGEL and Tom Silbernagel, Plaintiffs and Appellants, v. Stephen SILBERNAGEL a/k/a Steve Silbernagel and Jane Silbernagel a/k/a Jane V. Silbernagel, Defendants and Appellees.

No. 20060037.

Supreme Court of North Dakota.

July 25, 2007.

Donavin L. Grenz, Linton, N.D., for plaintiffs and appellants.

Joseph J. Cichy, Bismarck, N.D., for defendants and appellees.

SANDSTROM, Justice.

[¶ 1] John M. Silbernagel and Tom Silbernagel appeal from a judgment dismissing their breach of contract action against Stephen Silbernagel and Jane Silbernagel involving a settlement agreement reached in a lawsuit over the estate of John P. Silbernagel. We conclude the district court did not err in refusing to allow the introduction of parol evidence to vary the terms of the parties' settlement agreement. We further conclude that the court's findings of fact are sufficiently specific to apprise this Court of the reasoning and rationale for its decision, and that those findings are not clearly erroneous. We affirm and impose sanctions against John M. and Tom Silbernagel, and their attorney, for violating N.D.R.App.P. 30.

I

[¶ 2] John P. Silbernagel, who died in 2003, was the father of John M., Tom, and Stephen Silbernagel. A dispute arose between the brothers over land owned by John P. Silbernagel and his mother, Marcella Silbernagel, who died in 1983 but whose estate had not been probated or settled. Stephen Silbernagel, who had been farming the land, was named the beneficiary of "any interest I have in agricultural real estate" in John P. Silbernagel's will. John M. and Tom Silbernagel sued Stephen and Jane Silbernagel over the right to the property. On October 19, 2004, after jury selection had started, the parties entered into a settlement agreement, which was read into the record by Stephen and Jane Silbernagel's attorney Okay the agreement is that my clients Steve and Jane Silbernagel will pay to the plaintiffs $150,000. There will be a reasonable time given to my clients to secure the financing for that. In exchange for that the plaintiffs will release any and all interests they have in the estate of John P. and the estate of Marcella to Steve. They will release any and all interests in the FSA payment to Steve. My clients Steve and Jane will pay the debts associated with the administrator of the estate of John P. which includes Malcolm Brown and the personal representative Bill Chaussee, with the exception of $3500 to the nursing home. That will be $3500, the equivalent of or value of will be responsible by the plaintiffs. Also, in exchange for that, if a quiet title action is required to clear title on Marcella's property the plaintiffs will agree to cooperate with that to the fullest extent necessary that's required. If Jane and Steve should ever elect to sell the property, any of the property, they will give the plaintiffs the first option to purchase.

[¶ 3] On December 17, 2004, Stephen and Jane Silbernagel's attorney wrote a letter to one of John M. and Tom Silbernagel's attorneys informing him that Stephen and Jane Silbernagel had been in contact with their bank in an attempt to obtain a $150,000 loan, and they were informed they could not obtain financing until the title to all of the property had been cleared. A December 17, 2004, letter from the bank to Stephen and Jane Silbernagel was enclosed with the correspondence and stated in part:

Due to the amount of the loan request, First Community Credit Union would need to secure the debt with a first mortgage position on said real estate. Following standard lending practices, First Community Credit Union will need an updated abstract on all said property to enable us to have a preliminary title opinion conducted. The preliminary title opinion will be performed by appropriate legal representation chosen by the credit union. This legal representation will need to have the warranty deed and any other documentation in their possession at closing to insure a clear title transfer and a valid mortgage. Loan funds will not be able to be disbursed until loan closing at which time conditions stated within are met.

Stephen and Jane Silbernagel's attorney also informed John M. and Tom Silbernagel's attorney that she had prepared complaints for quiet title actions in Logan and Kidder counties concerning the property and asked that she be allowed to review the quit claim deeds that their attorney prepared relinquishing any interests they may have in the property.

[¶ 4] After the quiet title actions began, John M. and Tom Silbernagel resisted and contested the actions. In March 2005, they also brought this breach of contract action against Stephen and Jane Silbernagel. They alleged Stephen and Jane Silbernagel breached the settlement agreement by "insisting that additional terms and conditions be added to the agreement" and "by refusing and neglecting to pay" them the $150,000 "within a reasonable time," which they alleged was within 90 to 120 days after October 19, 2004. They sought a judgment for $150,000 "plus interest thereon as allowed by law." In their answer to the complaint, Stephen and Jane Silbernagel alleged that a term in the settlement agreement concerning bequests was not recited onto the record. They also asserted that they "have at all times stood ready, willing and able to perform their obligations under the terms and conditions of the agreement" and "any delay in satisfying the terms of the agreement has been caused and is the responsibility of the plaintiffs."

[¶ 5] John M. and Tom Silbernagel's attorney subsequently prepared findings, conclusions, and a judgment for the action, which resulted in the parties' settlement agreement. The judgment was entered on April 29, 2005, and the findings of fact set forth the terms of the settlement agreement:

a. In full settlement of the pending actions, Steve and Jane Silbernagel will pay to John M. Silbernagel and Tom Silbernagel the sum of $150,000.00.

b. Steve and Jane Silbernagel will be given a reasonable period of time within which to secure financing to make the $150,000.00 payment.

c. In exchange for the $150,000.00 payment, John M. Silbernagel and Tom Silbernagel release to Steve Silbernagel any and all interests which they have in the estates of John P. Silbernagel and Marcella Silbernagel, including their interests in the George Silbernagel Estate arising from the Marcella Silbernagel Estate, including but not limited to FSA payments pertaining to the real property in question.

d. Steve and Jane Silbernagel will pay all debts and costs associated with the administration of the Estate of John P. Silbernagel, Deceased, including fees charged by William (Bill) Chaussee, the personal representative, and his attorney, Malcolm Brown, except for the sum of $3,500.00 owed to the Nursing Home for John P. Silbernagel's care, which John M. Silbernagel and Tom Silbernagel agree to assume responsibility to pay to the Nursing Home from the $150,000 payment received from Steve and Jane Silbernagel.

e. Parties agreed that should a quiet title action be necessary to clear title on the lands involved in the Marcella Silbernagel estate, John M. Silbernagel and Tom Silbernagel will cooperate with said action to the fullest extent necessary by releasing their respective interests therein.

f. Parties agreed that Plaintiffs shall receive the deer head from the home of John P. Silbernagel and the parties agreed to work amongst themselves to divide pictures and personal effects belonging to John P. and Lorraine P. Silbernagel.

g. Should Steve or Jane Silbernagel ever elect to sell all or any portion of the land involved in this action . . . Plaintiffs, John M. Silbernagel and Tom Silbernagel shall have first option to purchase the same.

[¶ 6] In the meantime, John M. and Tom Silbernagel prepared quit claim deeds, but they were not accepted by Stephen and Jane Silbernagel because the deeds did not describe all of the subject property. In June 2005, Stephen and Jane Silbernagel received another letter from the bank stating that their $150,000 loan application had been approved subject to "a clear title transfer to allow a valid mortgage," and again specifying, "[l]oan funds will not be able to be disbursed until loan closing at which time conditions stated therein are met." Their attorney sent John M. and Tom Silbernagel's attorney a copy of the bank's letter and informed him:

In order to move this matter along, I would suggest that after you have prepared the additional Quit Claim Deeds to include all of the real property in question, that you have your clients sign them. I would then propose that we designate an individual/agency to function as an escrow agent so that the matter can be closed in escrow. Once the necessary Quit Claim Deeds and/or the Quiet Title Judgment regarding individuals signing the Quit Claim Deeds have been filed, this matter should be able to close. Although I am not involved in the Quiet Title Action, I am informed by Ms. Zimmerman that that case is moving forward and Judgment should be entered shortly.

John M. and Tom Silbernagel's attorney responded with a letter stating the quit claim deeds would not be delivered and recorded unless his clients received the "sum of $150,000.00 plus interest thereon at 6% interest commencing from and after February 16, 2005." Stephen and Jane Silbernagel refused the request.

[¶ 7] Following an August 10, 2005, trial on John M. and Tom Silbernagel's breach of contract claim, the district court dismissed the action. The court concluded:

A contract requires the contracting parties to perform their respective obligations. The Court does not find that John M. and Tom Silbernagel, and Steve and Jane Silbernagel have overtly failed to perform on the contract, but the Court does find that each has not completed conditions required of them to allow the contract to be fulfilled. Steve Silbernagel and Jane Silbernagel have...