Underwood Farmers Elevator v. Leidholm

460 N.W.2d 711 (1990)


D contracted with P to deliver 25,000 bushels of oats at $1.50 per bushel. The contract did not specify a delivery date. D advised P that, due to drought conditions, he would be unable to deliver the oats. D requested to 'buy out' his contract at the then-current market price of $1.53 per bushel. P refused. The next week D again sought to buy out his contract at the market price of $1.63 per bushel. P refused. D was finally allowed to buy out a month later when the price of oats had soared to $2.67 per bushel because of widespread drought conditions. D asserts that this delay caused him to incur a $29,750 liability, rather than a $750 liability if he had been allowed to buy out at $1.53 per bushel. At P's request, D signed a confession of judgment in favor of P for $29,750 plus twelve percent interest. D also signed a statement verifying that he had read the confession of judgment and that the statements therein were true. D now asserts that he signed the confession of judgment with the manager's assurance that it was just a formality, and that P would not attempt to collect but would later work out repayment terms, including a reduction of the amount. Judgment was entered on the confession D was given notice of entry of judgment. D moved for vacation of the judgment under Rule 60(b). The district court denied the motion and D appealed.