Shadow Industries, LLP v. Hoffman

Summary

The North Dakota Supreme Court considered whether a farmland lease was ambiguous regarding when its initial term ended and whether the tenants timely exercised an option to extend the lease. The court held the lease terminated at the end of the 2018 crop year, making the tenants’ January 2019 exercise of the option untimely. The court reversed the district court’s judgment and remanded for further proceedings consistent with termination of the lease.

Holdings

1. The lease was not ambiguous; the initial lease term ended at the end of the 2018 crop year.
2. The Hoffmans did not timely exercise the option because the lease had terminated at the end of the 2018 crop year, before their January 2019 exercise.

Questions Presented

1. Whether the phrase "through the 2018 crop year" made the lease ambiguous as to when its initial term ended.
2. Whether the Hoffmans timely exercised the option to extend the lease after the 2018 crop year had ended.

Disposition

reversed_and_remanded