Ordahl v. Lykken, et al.
Annotate this CaseOrdahl LLC (“Ordahl”) appeals from a district court order granting Arlene Lykken, Bruce Lykken, Paul Lykken, and Sandra Teske’s (“the Lykkens”) motion for summary judgment and denying Ordahl’s motion for summary judgment. Ordahl and the Lykkens executed a purchase agreement for the sale of 12 acres of land and an easement on adjacent property to the north of the parcel. Under the terms of the purchase agreement, Ordahl was required to provide a $10,000 earnest money payment. After the purchase agreement was signed, the Lykkens anticipatorily breached the agreement. Ordahl brought suit seeking a declaratory judgment declaring that Ordahl’s relief was not limited to the return of its earnest money. Ordahl claimed it was not required to terminate the parties’ agreement and was entitled to enforce the terms of the agreement through the equitable doctrine of specific performance. The Lykkens counterclaimed seeking reformation of the purchase agreement. The North Dakota Supreme Court concluded the trial court erred in determining the purchase agreement required Ordahl to terminate the agreement and limited Ordahl to a recovery of its earnest money. The Supreme Court reversed and remanded this case for consideration of whether Ordahl should have prevailed on its equitable claim to enforce the terms of the parties’ agreement through specific performance and, if necessary, consider the Lykkens’s request for reformation of the agreement.
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