Industrial Commission of North Dakota v. Noack

Summary

The Supreme Court of North Dakota affirmed a judgment foreclosing a mortgage and dismissing Kelly Noack's counterclaim for rescission. The court held that an alleged mutual mistake about the condition of property purchased with loan proceeds was collateral to the promissory note and mortgage and did not justify rescission. The court also concluded that Noack failed to satisfy the statutory restoration requirement for rescission.

Holdings

1. The Court denied dismissal of the appeal because the available record permitted meaningful and intelligent review of the alleged error, while reiterating that an appellant bears the consequences of an incomplete transcript.
2. A mutual mistake about the condition of property purchased with the proceeds of a promissory note is collateral to the loan transaction and does not justify rescission of the note and mortgage when there was no mistake about the loan amount, mortgage terms, or property description.
3. Noack did not satisfy N.D.C.C. § 9-09-04(2) because she offered to return the property rather than the money she had received from the bank and the North Dakota Housing Finance Agency under the note and mortgage.

Questions Presented

1. Whether the appeal should be dismissed as a sanction for Noack's failure to provide a transcript.
2. Whether a mutual mistake concerning the condition of property purchased with loan proceeds justified rescission of the promissory note and mortgage.
3. Whether Noack complied with the statutory restoration requirement for rescission under N.D.C.C. § 9-09-04(2).

Disposition

affirmed