Dwyer v. Sell

Summary

The North Dakota Supreme Court affirmed an amended judgment concerning the authority of trustees of the Tim Dwyer Farm Trust to sell trust property. The Court held that the co-trustees had broad discretion to sell none, some, or all of the trust property, that the trust agreement required a 15-year contract for deed with equal annual installments and no prepayment option, and that a reservation of hunting access was prohibited under N.D.C.C. § 47-05-17. The Court also affirmed the district court's conclusion that other outdoor recreational access could be reserved.

Holdings

1. The unambiguous trust agreement grants the co-trustees broad discretion to sell none, some, or all of the trust property when they determine that a sale is necessary to pay trust debts or taxes or is in the beneficiaries' best interests. If they decide to sell, they must first offer the property to Tim Dwyer Jr., who may purchase all, some, or none of the property offered.
2. The trust agreement does not permit prepayment of a contract for deed for the sale of trust property.
3. N.D.C.C. § 47-05-17 prohibits the co-trustees from reserving a right to access trust property for hunting in a future conveyance under Article IX of the trust agreement.

Questions Presented

1. Whether the trust agreement gave the co-trustees broad discretion to decide whether to sell none, some, or all of the trust property and permitted them to withdraw property from a proposed sale if dissatisfied with the appraisals.
2. Whether the trust agreement's requirement of a fifteen-year contract for deed with equal annual installments of principal and interest permitted prepayment.
3. Whether N.D.C.C. § 47-05-17 prohibited the co-trustees from reserving a right of access to trust property for hunting in a future conveyance.

Disposition

affirmed