Manning v. Jaeger

2021 ND 162 (2021) · Supreme Court of North Dakota · September 2, 2021 · No. No. 20200332

Summary

The North Dakota Supreme Court affirmed the denial of Continental Resources, Inc.'s amended motion to intervene in a proceeding seeking reinstatement of a foreign limited liability company's certificate of authority. The court held Continental lacked a direct, substantial, and legally protectable interest in the reinstatement proceeding because its asserted interest arose from a separate lawsuit. The court also declined to exercise supervisory jurisdiction to vacate the prior reinstatement order.

Court
Supreme Court of North Dakota
Writing for the Court
Lisa Fair McEvers, Justice; Jon J. Jensen, Chief Justice; Daniel J. Crothers, Justice; Jerod E. Tufte, Justice; Jay A. Schmitz, District Judge, sitting in place of VandeWalle, J.
Jurisdiction
North Dakota
Decision date
September 2, 2021
Docket number
No. 20200332
Procedural posture
Continental Resources appealed the district court's amended order denying its motion to intervene as a matter of right in a statutory proceeding concerning reinstatement of a foreign limited liability company's certificate of authority. Continental also sought supervisory relief directing the district court to vacate its prior reinstatement order.
Standard of review
Whether intervention as a matter of right is available under N.D.R.Civ.P. 24(a) is a question of law reviewed fully on appeal; the district court's factual findings are reviewed under the clearly erroneous standard under N.D.R.Civ.P. 52(a). Exercise of supervisory jurisdiction is discretionary and considered case by case.
Precedential value
Published North Dakota Supreme Court opinion; precedential.
Parties
Continental Resources, Inc., Interested Party and Appellant v. Richard Manning, Plaintiff and Appellee, Alvin A. Jaeger, Defendant and Appellee
Disposition
affirmed

Topics

interventionwrit of certiorariappellate procedurelimited liability companiescivil procedure

Practice areas

civil procedureappellate procedurelimited liability companiescommercial litigation

Questions Presented

  1. Whether Continental Resources established the requirements for intervention as a matter of right under N.D.R.Civ.P. 24(a)(2).
  2. Whether Continental, having been denied intervention, could seek relief under N.D.R.Civ.P. 60(b) to vacate the prior reinstatement order.
  3. Whether the North Dakota Supreme Court should exercise supervisory jurisdiction to direct the district court to vacate the reinstatement order.

Holdings

  1. Continental was not entitled to intervene because its interest in the reinstatement proceeding was tangential and collateral rather than direct, substantial, and legally protectable.
  2. The district court properly refused to consider Continental's Rule 60(b) request because Rule 60(b) relief is available only to a party or the party's legal representative, and Continental was not a party.
  3. The Supreme Court declined to exercise supervisory jurisdiction because Continental did not show extraordinary circumstances, an inadequate alternative remedy, or an issue of vital public concern warranting supervisory relief.

Key quotations

Each of these requirements must be met to intervene as a matter of right under N.D.R.Civ.P. 24(a)(2). (2021 ND 162, ¶ 11)
We exercise our authority to issue supervisory writs rarely and cautiously, and only to rectify errors and prevent injustice in extraordinary cases when no adequate alternative remedy exists. (2021 ND 162, ¶ 26)

Factual background

P&P Industries, LLC I, a foreign limited liability company, had its North Dakota certificate of authority revoked in 2015 for failing to file an annual report. In April 2020, Richard Manning filed a petition seeking reinstatement, and the Secretary of State consented to immediate reinstatement. Continental Resources, which was litigating a separate action involving P&P's counterclaims, sought intervention because it believed reinstatement would affect its motion to dismiss those counterclaims.

Procedural history

Richard Manning filed a petition in Burleigh County District Court seeking reinstatement of P&P Industries, LLC I's authority to transact business in North Dakota. The district court entered an order reinstating P&P, after the Secretary of State consented to immediate reinstatement. Continental later moved to intervene and to vacate the reinstatement order, but the district court denied its original and amended motions. The North Dakota Supreme Court affirmed and declined to exercise supervisory jurisdiction.

Court Document

Open PDF
Loading document…