Nygaard v. Robinson

VANDE WALLE, Justice.

Defendant HNG Oil Company (“HNG”) appealed from the judgment of the district court, McKenzie County, determining that plaintiffs Peter Nygaard, Jr., Lynette Ny-gaard, and the trustees of two mineral trusts (“Nygaards”) were entitled as lessors to terminate, pursuant to Section 47-16-36, three mineral leases assigned to HNG. The district court held that HNG was not a bona fide purchaser of the assigned leases and that the Nygaards could cancel the leases because the lessees, defendants D.G. Robinson and W.R. Barth, failed to pay the bonus consideration. The district court…