Delzer v. United Bank Of Bismark

559 N.W.2d 531 (1997)

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Nature of the Case

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Facts

P and D entered into a loan agreement for P to pledge all of their assets and their son's equipment as collateral for repayment of money to be loaned by D. P contends D orally agreed to lend them $ 00,000--an operating loan of $150,000, to be followed by additional loans totaling $150,000 for the purchase of cattle. P executed a promissory note for $150,000, and D advanced that amount. D never advanced any funds to purchase cattle. Ps were unable to pay their debts, lost their ranch when the holder of the first mortgage foreclosed and lost all of the other assets pledged as security. P sued D. The appeals court reversed a summary judgment of dismissal and remanded for trial. It again reversed a summary judgment dismissing P's action against D. After the remand the trial court bifurcated liability and damages. The jury returned a verdict finding that D did not make a binding oral contract to lend $150,000 to purchase cattle and D knowingly deceived P into giving all their property as security for a $300,000 loan when D knew it was only going to loan them $150,000. The trial court ruled the jury's findings were inconsistent and granted D's motion for judgment notwithstanding the verdict and granted a new trial if the judgment notwithstanding was reversed on appeal. The appeals court again reversed the judgment notwithstanding on the deceit claim, affirmed the grant of a new trial, and remanded for a new trial on both the contract and the deceit claims. On the third remand, the case was again tried to a jury. It found that D breached an 'oral contract to lend $150,000 and willfully deceived the P by promising the $150,000 for cattle when d had no intention of lending the additional $150,000. The jury awarded no damages for breach of contract, awarded damages of $538,000 for deceit, and awarded exemplary damages of $3,000,000. D moved for judgment as a matter of law on the deceit claim or, alternatively, for a new trial. The court entered a judgment of dismissal, and P appealed.