Justia Civil Procedure Opinion Summaries

A solo attorney and another law firm entered into contingency fee agreements with three clients for representation in workers’ compensation matters, providing for a 50/50 split of any attorney’s fees. After the solo attorney died, disputes arose over how much his estate was owed for fees from two resolved cases and a third pending case. The settlement for the first client was received shortly before the attorney’s death, while the second client’s case settled months later. The estate sued to recover its share of fees and for a declaratory judgment regarding the third case, which remained unresolved.The Circuit Court of the Seventh Judicial Circuit, Pennington County, found that the attorney’s contracts with the second and third clients expired at his death, and that the estate had been fully paid for the first two cases. The court also awarded prejudgment interest to the estate for delayed payment on the first client’s case and ordered the estate to pay prejudgment interest to the law firm for the disputed portion of the second client’s fees that had been deposited with the court. The estate and the law firm both appealed aspects of the decision.The Supreme Court of the State of South Dakota affirmed the ruling that the contingency fee agreements for the second and third clients terminated upon the attorney’s death. However, it reversed the finding that the estate had been fully paid for services rendered in the second client’s case, holding that the estate could recover in quantum meruit for the reasonable value of services rendered before death, and remanded for further proceedings on that issue. The Supreme Court also reversed the award of prejudgment interest to the law firm for the deposited funds and directed recalculation of prejudgment interest owed to the estate for the first client’s case based on the timing of unconditional tender and full payment. View "Groves v. Goodsell & Oviatt LLP" on Justia Law

David Wetch suffered a spinal cord injury in 1991 while employed by Midcontinent Media, Inc., leading to a stipulated settlement in 1994 that recognized his permanent and total disability and provided ongoing medical benefits. In 2010, Wetch experienced a fall at his apartment, resulting in new injuries and an increased need for medical care, but he did not inform the insurer of this event. His requests for medical benefits rose following the fall, prompting further proceedings and enforcement efforts regarding medical payments between 2014 and 2018.After discovering the 2010 fall during federal litigation, the employer and insurer sought to have the South Dakota Department of Labor review Wetch’s medical payments, arguing the fall constituted a change in condition and that subsequent treatment was related to the fall rather than the original work injury. The Department held a hearing and found a change in condition, suggesting benefits should be ended or diminished, but did not specify which action or the extent of any reduction. The Circuit Court for Hughes County affirmed the Department’s finding but similarly failed to determine whether benefits should be ended or diminished. Both parties appealed these incomplete orders.The Supreme Court of the State of South Dakota reviewed whether the Department’s order constituted a final, appealable decision under SDCL 62-7-33. The court held that the Department’s order was not final because it did not resolve whether Wetch’s benefits should be ended or diminished, nor did it specify the amount or nature of any change. As a result, the Supreme Court dismissed the appeal and vacated the circuit court’s order, directing that a final determination must be made before appellate review can occur. View "Wetch v. Midcontinent Media, Inc." on Justia Law

A married couple, both active-duty military members, separated after nearly two decades of marriage and executed a notarized separation agreement in 2020 while stationed in Okinawa. The agreement provided that the wife would receive $1,500 per month in maintenance until divorce, 20% of the husband’s military retirement pay upon his retirement, and be named as beneficiary of his Survivor Benefit Plan (SBP). The wife later initiated a divorce in South Dakota, and the parties submitted a stipulation and settlement agreement incorporating key provisions from their separation. The divorce decree was filed in February 2021. Over time, the husband failed to make some required maintenance payments and, after retiring, did not pay the wife her portion of his retirement nor complete the SBP paperwork. The wife sought contempt and modifications, while the husband argued compliance was impossible due to deficiencies in the decree.The Circuit Court of the First Judicial Circuit, Charles Mix County, declined to hold the husband in contempt, finding the divorce decree’s orders too vague for enforcement. The court denied modification of the property division, found no fraud or coercion, and refused to vacate the decree. It reduced the wife’s retirement share from 20% to 16.1% using a coverture formula, ordered payment of $5,000 in arrears plus 8% interest, and instructed the husband to effectuate the SBP. Both parties appealed.The Supreme Court of the State of South Dakota affirmed in part and reversed in part. It held that reducing the wife’s retirement share below the agreed 20% was error, as was applying an 8% rather than the statutory 10% interest rate to arrears. The court remanded for correction of those issues, but affirmed the denial of contempt, refusal to vacate the decree, and the exclusion of additional payments for stimulus or tax refunds. The court also found no due process violations or abuse of discretion in declining to take sworn testimony. View "Shevling v. Major" on Justia Law

Wells Fargo initiated a lawsuit to collect credit card debt from a woman identified as Mary Myers (Mary 1) based on a consumer agreement and supporting documentation that included her address, date of birth, and the last four digits of her social security number. The company provided directions for service to the Lawrence County Sheriff, but the deputy mistakenly served a different woman with the same name (Mary 2) at a different address. Mary 2, who was not the debtor, retained counsel and notified Wells Fargo’s attorney of the error, demanding dismissal and reimbursement of legal expenses.After receiving no response from Wells Fargo’s attorney, Mary 2’s counsel filed motions to dismiss and for sanctions under Rule 11 of the South Dakota Rules of Civil Procedure. Wells Fargo’s attorney explained that he had conducted due diligence before filing the complaint and, after reviewing further information, believed he had filed against the correct person. The Circuit Court of the Fourth Judicial Circuit found that Wells Fargo’s attorney violated Rule 11 by not communicating with Mary 2’s attorney after being informed of the mistaken service and by not rectifying the error. The court dismissed Mary 2 from the lawsuit and ordered Wells Fargo to pay her attorney’s fees as a sanction.The Supreme Court of the State of South Dakota reviewed the award of attorney’s fees. It held that Rule 11 sanctions apply only to the filing, signing, or advocacy of documents presented to the court, not to all attorney conduct within litigation. The court concluded that Wells Fargo’s complaint had evidentiary support against Mary 1, and the mistaken service on Mary 2 did not render the pleading sanctionable. Therefore, the Supreme Court reversed the award of attorney’s fees, finding that the circuit court abused its discretion by misapplying Rule 11. View "Wells Fargo v. Myers" on Justia Law

Tony petitioned for formal probate of his mother Judith’s will and codicil, which left her entire estate to him and specifically disinherited her other children, Rick, Sandy, and Beth. The siblings objected, alleging that the will was the product of undue influence, among other claims. The dispute centered on family dynamics and prior business conflicts between Tony and Rick, including previous litigation over property and asset division. In the prior case, the court made adverse findings about Tony’s credibility and honesty regarding his dealings with Rick.The siblings, as respondents, successfully moved in the Circuit Court of the Sixth Judicial Circuit, Todd County, for the admission of the prior court’s findings and conclusions under the doctrine of collateral estoppel, arguing these were relevant to the undue influence claim. The circuit court admitted almost all of the findings from the prior case as conclusively established, including negative credibility determinations about Tony. The jury in the undue influence trial was instructed to accept these findings as true, and ultimately found that Tony had unduly influenced Judith, invalidating the will.On appeal, the Supreme Court of the State of South Dakota reviewed whether the circuit court properly applied collateral estoppel. The Supreme Court held that the circuit court erred by admitting the prior findings wholesale, as the issues in the prior litigation were not identical to those in the undue influence case and the credibility determinations were not essential to the prior judgment. The Supreme Court found this error was prejudicial, as it likely impacted the jury’s assessment of Tony’s credibility, a central issue in the undue influence claim. The judgment was reversed and the case remanded for a new trial. View "Estate Of O'Neill" on Justia Law

A motorcyclist attending the Sturgis Motorcycle Rally in South Dakota was injured in a 2017 collision when another driver allegedly pulled out in front of him. The injured party, a resident of Canada, filed a negligence lawsuit against the driver in July 2020. Shortly thereafter, the plaintiff’s counsel granted the defendant’s insurance carrier an open-ended extension to file an answer, due to ongoing medical treatment and uncertainty about the extent of injuries. The parties operated under this informal agreement while the plaintiff continued treatment and sought additional information related to his injuries and damages.Over the next several years, the Meade County clerk of courts issued three notices of intent to dismiss the case for inactivity, to which the plaintiff timely objected, citing the ongoing extension and the need to collect further information. In August 2024, the defendant retained counsel, who acknowledged and reaffirmed the open-ended extension agreement. However, two months later, the defendant moved to dismiss for failure to prosecute. The Circuit Court of the Fourth Judicial Circuit, Meade County, granted the dismissal with prejudice under SDCL 15-11-11 and SDCL 15-6-41(b) (Rule 41(b)), concluding there was unreasonable and unexplained delay.On appeal, the Supreme Court of the State of South Dakota held that dismissal was improper. The Court found that the mutual open-ended extension agreement between the parties constituted good cause for delay under SDCL 15-11-11. Additionally, the Court determined that the plaintiff’s conduct did not rise to the level of egregiousness required for dismissal with prejudice under Rule 41(b), especially given the reaffirmed extension and lack of prejudice to the defendant. The Supreme Court reversed the dismissal and remanded for further proceedings. View "Arrowsmith v. Odle" on Justia Law

Jeremy and Abbey Coyle brought a civil trespass action against Kenneth and Kelli McFarland, alleging that a portion of the McFarlands’ driveway and vehicles encroached on the Coyles’ property, Lot Q1, in Belle Fourche, South Dakota. The dispute centered on whether a public right-of-way (Walworth Street) extended along the entire southeastern boundary of the McFarlands’ Lot 25A, which would affect the property boundaries and the alleged trespass. The Coyles claimed the right-of-way ended at a certain point, while the McFarlands argued it continued along the full boundary, relying on subdivision plats, improvement agreements, and city ordinances.After the Coyles filed their complaint, the McFarlands answered and asserted their defense based on the Subdivision Improvements Agreement and city records. The Coyles then moved for partial summary judgment before any discovery had occurred. The McFarlands failed to respond within the statutory deadline and subsequently moved for a continuance under SDCL 15-6-56(f), submitting affidavits explaining the need for additional discovery and citing personal circumstances for the delay. The Circuit Court for the Fourth Judicial Circuit, Butte County, denied the continuance and granted partial summary judgment to the Coyles, finding the right-of-way ended as the Coyles claimed and ordering the McFarlands to remove their assets from Lot Q1. The court later denied the McFarlands’ motion for reconsideration and motion for relief from judgment.On appeal, the Supreme Court of South Dakota held that the circuit court abused its discretion by denying the McFarlands’ motion for a continuance. The Supreme Court found that the McFarlands’ affidavits met the requirements for additional time under Rule 56(f), that excusable neglect was present due to counsel’s personal circumstances, and that no prejudice to the Coyles was shown. The Supreme Court reversed the circuit court’s orders and remanded for further proceedings. View "Coyle v. Mcfarland" on Justia Law

RTI, LLC and RTI Holdings, LLC sought to construct a specialized clinical research facility in Brookings, South Dakota, designed for animal health research trials with stringent air filtration and ventilation requirements. Acting as the general contractor, RTI hired designArc Group, Inc. as architect and several contractors, including Pro Engineering, Inc., Ekern Home Equipment Company, FM Acoustical Tile, Inc., and Trane U.S. Inc., to design and build the facility. After completion in April 2016, RTI experienced significant issues with air pressure, ventilation, and ceiling integrity, leading to contamination problems that disrupted research and resulted in financial losses.The Circuit Court of the Third Judicial Circuit, Brookings County, reviewed RTI’s claims for breach of contract and breach of implied warranties against the architect and contractors. All defendants moved for summary judgment, arguing that RTI’s claims were based on professional negligence and required expert testimony, which RTI failed to provide. The circuit court agreed, finding RTI’s CEO unqualified as an expert, and granted summary judgment to all defendants. The court also denied RTI’s motion to amend its complaint to add negligence claims, deeming the amendment untimely and futile due to the lack of expert testimony.The Supreme Court of the State of South Dakota affirmed the summary judgment for designArc, Pro Engineering, and FM Acoustical, holding that expert testimony was required for claims involving specialized design and construction issues, and that RTI’s CEO was not qualified to provide such testimony. However, the court reversed the summary judgment for Trane and Ekern, finding genuine issues of material fact regarding Trane’s alleged faulty installation and Ekern’s potential vicarious liability. The court also reversed the denial of RTI’s motion to amend the complaint, concluding the proposed amendments were not futile and would not prejudice Trane or Ekern. The case was remanded for further proceedings. View "RTI, LLC v. Pro Engineering" on Justia Law

Roger Cunningham opened an IRA during his marriage to Sheila, naming her as the sole beneficiary. The couple, long-time Tennessee residents, later divorced in 2015. Their Marital Dissolution Agreement, incorporated into a Tennessee court’s final divorce decree, awarded Sheila a specific sum from the IRA and required her to relinquish any further claim to the account. Roger moved to South Dakota before the divorce was finalized but did not update the IRA’s beneficiary designation. After Roger’s death in South Dakota, his daughter Susan, as personal representative of his estate, discovered that the IRA had been transferred to Sheila, still listed as the beneficiary.Following Roger’s death, Susan initiated informal probate proceedings in South Dakota and sought a declaration from the Second Judicial Circuit Court that, under South Dakota’s revocation-on-divorce statute (SDCL 29A-2-804), Sheila’s beneficiary status had been automatically revoked by the divorce, making the IRA part of the estate. Sheila, a Tennessee resident, appeared specially to contest jurisdiction and the procedural propriety of the Estate’s motion, arguing that the court lacked personal jurisdiction over her and that the matter should have been brought as a separate action. The circuit court ruled in favor of the Estate, finding it had jurisdiction and that the statute revoked Sheila’s beneficiary designation, thus including the IRA in the estate.On appeal, the Supreme Court of the State of South Dakota held that the circuit court lacked personal jurisdiction over Sheila. The Supreme Court found that Sheila’s only connection to South Dakota was her receipt of the IRA funds, which resulted from Roger’s unilateral actions, not from any purposeful availment by Sheila of South Dakota’s laws. The Supreme Court vacated the circuit court’s order and remanded with instructions to grant Sheila’s motion to dismiss, declining to address the procedural issue. View "Estate Of Cunningham" on Justia Law

Kevin Rowe filed a lawsuit against his ex-wife, Dione Rowe, alleging tortious interference with a business relationship. Dione, with the help of her daughters, sent a letter to the Tribal Land Enterprise (TLE) making disparaging allegations against Kevin, who leased Tribal-owned land from the TLE. The letter requested the TLE to cancel Kevin’s leases and lease the land to her daughters instead. The TLE rescinded Kevin’s leases at their next board meeting, leading Kevin to file the lawsuit.The Circuit Court of the Sixth Judicial Circuit in Tripp County, South Dakota, denied Dione’s motion for summary judgment, which argued that her letter was an absolutely privileged communication under SDCL 20-11-5(2). The court concluded that the TLE meeting was a quasi-judicial proceeding but held that the privilege did not apply because the TLE did not follow its own procedures, including providing notice to Kevin.The Supreme Court of the State of South Dakota reviewed the case and reversed the circuit court’s decision. The Supreme Court held that the absolute privilege under SDCL 20-11-5(2) applies to claims of tortious interference with a business relationship. The court found that the TLE board meeting was an official proceeding authorized by law and that Dione’s letter had a logical relation to the TLE’s proceedings. The court also determined that the lack of notice to Kevin did not negate the privilege. Additionally, the court concluded that Dione did not waive the privilege by failing to plead it in her answer, as the issue was tried by implied consent during the summary judgment proceedings. The Supreme Court directed the lower court to enter summary judgment in favor of Dione. View "Rowe v. Rowe" on Justia Law