Opinion ID: 2003077
Heading Depth: 1
Heading Rank: 2

Heading: Improvement or product

Text: Relying on Robertson Companies, Inc. v. Kenner, 311 N.W.2d 194 (N.D.1981), Bellemare asserts that Rutten's grain bin is a good under Article II of the Uniform Commercial Code, Ch. 41-02, N.D.C.C., and is not an improvement to real property subject to § 28-01-44, N.D.C.C. The instant case, however, does not involve a question as to whether there was a sale of goods or a rendition of services and Robertson, supra, is inapposite. In enacting § 28-01-44, N.D.C.C., the Legislature did not define the term improvement to real property. Bellemare asserts that fixture law should be relied upon to define that term and argues that the manner of annexing the bin to the foundation creates a question of fact as to whether the bin is a fixture or a product. Section 47-01-05, N.D.C.C., provides: 47-01-05. `Fixtures' defined. A thing is deemed to be affixed to land when it is attached to it by roots, as in the case of trees, vines, or shrubs, or imbedded in it, as in the case of walls, or permanently resting upon it, as in the case of buildings, or permanently attached to what is thus permanent, as by means of cement, plaster, nails, bolts, or screws. This court held, in Syllabus ¶ 1, Strobel v. Northwest G. F. Mut. Ins. Co., 152 N.W.2d 794 (N.D.1967): In determining whether a building, which has been purchased and moved on to land of the purchaser, becomes a fixture under Section 47-01-05, N.D.C.C., the court will look to the intention of the purchaser, the manner in which the building is annexed, and its adaptation to the use of the realty. While also not directly applicable, another statute, § 35-27-01(3), N.D.C.C., dealing with mechanics' liens, might also be helpful in determining what is included within the scope of the statute: 3. `Improvement' means any building, structure, erection, construction, alteration, repair, removal, demolition, excavation, landscaping, or any part thereof, existing, built, erected, improved, placed, made, or done on real estate for its permanent benefit. Pursuant to § 1-02-02, N.D.C.C., [w]ords used in any statute are to be understood in their ordinary sense, unless a contrary intention plainly appears. Webster's New World Dictionary (2d College Ed. 1980) defines improvement as  ... 3. a change or addition to land or real property, as a sewer, fence, etc., to make it more valuable. In our view, it is unnecessary to define the term improvement to real property because only one conclusionthat the grain bin involved here is an improvement to real propertycan reasonably be drawn from the facts presented to the trial court. The bin is a 10,000-bushel bin anchored to a cement slab by bolts. It was erected on-site in 1967. In erecting the bin, [t]hey put the roof together first and they'd raise the roof and as they'd raise the roof they'd put the bands on the bottom until they had the 10,000-bushel. The bin is a drying bin with a perforated floor nine inches above the cement slab upon which the bin rests. The bin is part of a grain-handling system which also consists of two additional 10,000-bushel bins, a 3,500-bushel overhead bin, two hopper bins, and a leg. Since the bin was erected in 1967, Rutten had never moved it or removed any of the anchors. Bellemare has not presented any facts indicating that Rutten intended the bin's placement to be anything other than permanent. While it is possible to move the bin from its cement foundation by removing the anchors, under the circumstances presented we are not persuaded that the manner of annexing the bin to the foundation creates a question of fact as to whether the bin is a fixture or a product.