Case Summary: Contract for Deed Prohibits Intestate Property Transfer
The Minnesota Supreme Court ruled that an intestate transfer of a family farm violated a contract for deed that restricted property transfers without consent.
In Jeffrey D. Kuhn v. Richard G. Dunn, et al. (Minn. No. A22-1298, June 26, 2024), Richard and Paulette Dunn sold their farm to their son Rory Dunn with a contract for deed, which required their consent for any property transfer.
After Rory's death, his estate, per intestate succession, passed to his 3-year-old son. The estate’s personal representative, Jeffrey Kuhn, sought to sell a portion of the farm. The Dunns then moved to cancel the contract, citing the unauthorized transfer. The district court agreed, but the court of appeals overturned the ruling, interpreting the transfer restriction as applying only to voluntary actions by Rory.
The Minnesota Supreme Court reversed the appellate court’s decision, holding that the term "transfer" in the contract was broad and included involuntary transfers like those under intestate succession. The breach was deemed material, as the consent provision was crucial to the contract’s intent. Thus, the intestate transfer violated the contract, justifying its cancellation.
