Justia Civil Procedure Opinion Summaries

Chris Welsh, representing CAL SD, LLC, entered into a purchase agreement with Interwest Leasing, LLC to buy commercial real estate, with a $30,000 earnest money deposit. Welsh passed away before closing, and CAL SD refused to close. Interwest sold the property to another buyer for the same price but did not return the earnest money. CAL SD filed a declaratory judgment action to recover the deposit, claiming the agreement was void due to their inability to obtain financing.The Circuit Court of the Seventh Judicial Circuit in Pennington County, South Dakota, treated the declaratory judgment as a breach of contract action and set it for a jury trial. The jury found in favor of CAL SD, and the court ordered the return of the earnest money deposit. Interwest appealed, arguing the action was equitable and should not have been decided by a jury, and also claimed the court gave erroneous jury instructions.The Supreme Court of the State of South Dakota reviewed the case. The court held that the declaratory judgment action was legal, not equitable, because it sought to enforce contractual rights under the purchase agreement, which was void if financing was not obtained. The court affirmed the lower court's decision to submit the case to a jury for a binding verdict, as the issue was whether CAL SD breached the contract by failing to secure financing. The court concluded that the jury's determination that CAL SD was unable to obtain financing rendered the purchase agreement void, entitling CAL SD to the return of the earnest money deposit. View "Cal SD, LLC v. Interwest Leasing, LLC" on Justia Law

The Department of Social Services (DSS) filed an abuse and neglect petition concerning two minor children, N.K., Jr. and S.K., who are Indian children under the Indian Child Welfare Act (ICWA). The children were taken into emergency temporary custody after their father, N.K., Sr., was arrested for driving under the influence with the children in the car. The children were found to be homeless and in poor condition. The State filed a petition alleging abuse and neglect, and the father admitted to the allegations. Despite DSS providing various services, including substance abuse treatment and visitation arrangements, the father continued to struggle with substance abuse and was repeatedly incarcerated. The mother was largely absent and uncooperative.The Circuit Court of the Sixth Judicial Circuit in Gregory County, South Dakota, handled the initial proceedings. The father was served with the petition at an advisory hearing, but no summons was issued or served. The case was transferred between counties due to the father's relocation. The father admitted to the allegations, and DSS provided ongoing services. Despite some progress, the father relapsed and was arrested again, leading to a failed trial reunification. The State filed a petition for termination of parental rights, and the court held a final dispositional hearing.The Supreme Court of the State of South Dakota reviewed the case. The court affirmed the lower court's decision, holding that the failure to issue or serve a summons did not deprive the court of jurisdiction because the father had actual notice of the proceedings. The court also found that termination of parental rights was the least restrictive alternative, given the father's ongoing substance abuse issues and inability to provide a stable environment. Additionally, the court determined that DSS had made active efforts to reunite the family, but these efforts were unsuccessful. The court affirmed the termination of both parents' parental rights. View "Interest Of N.K." on Justia Law

In 1999, Marcus and Eunice Hollow Horn purchased a mobile home on a lot in Eagle Butte, South Dakota, and began paying rent to Oliver Leblanc, who claimed ownership. Later, Phyllis Miller claimed ownership and sold the lot to Eunice, providing a quit claim deed. Years later, Edward Hoffman, representing his deceased mother Theresa Hoffman's estate, claimed Theresa owned the lot and filed a quiet title action against the Hollow Horns. The Hollow Horns counterclaimed, asserting ownership by adverse possession.The Circuit Court of the Fourth Judicial Circuit in Dewey County, South Dakota, denied Edward's claims and quieted title in favor of the Hollow Horns based on adverse possession under SDCL 15-3-15 and SDCL 15-3-1. Edward appealed, challenging the court's findings on good faith and the admission of certain out-of-court statements.The Supreme Court of South Dakota reviewed the case and affirmed the circuit court's decision in part. The court held that Eunice had satisfied the elements of adverse possession under SDCL 15-3-15, including good faith possession and payment of taxes for ten years. The court found no clear error in the circuit court's findings and concluded that Edward failed to rebut the presumption of Eunice's good faith. The court also determined that any error in admitting out-of-court statements was harmless and did not affect the outcome.However, the Supreme Court vacated the circuit court's judgment on the alternative claim for adverse possession under SDCL 15-3-1, as it was rendered moot by the ruling on SDCL 15-3-15. The case was remanded for the circuit court to dismiss the alternative claim. View "Hoffman V. Hollow Horn" on Justia Law

Fawna and Terry Goff were married in 2015 and had one child, M.G. In late 2021, Terry left for work in Texas and did not return, pursuing a new relationship. Fawna allowed M.G. to visit Terry in Texas, but he refused to return the child. Fawna filed for divorce, and the circuit court granted her a divorce on grounds of adultery, awarded her primary custody of M.G., set child support, divided property, and awarded partial attorney fees to Fawna. Terry appealed.The Circuit Court of the Fourth Judicial Circuit, Meade County, South Dakota, initially handled the case. Terry did not respond to the divorce complaint in time, leading Fawna to seek a default judgment. At the hearing, Terry requested to proceed with the divorce trial, which the court allowed. The court granted Fawna a divorce, primary custody of M.G., and ordered Terry to pay child support and arrearages. Terry was also ordered to pay half the mortgage on the marital home and awarded his camper. Terry filed for divorce in Texas, but the South Dakota court retained jurisdiction.The Supreme Court of South Dakota reviewed the case. The court held that Terry waived his claim against the trial on the merits by not objecting at the hearing. However, the court found that the circuit court abused its discretion in calculating arrearages without considering the months Terry cared for M.G. and other support provided. The court also found insufficient findings regarding the best interests of M.G. for visitation limitations and the award of attorney fees. The Supreme Court affirmed in part, reversed in part, and remanded for recalculating arrearages and further findings on visitation and attorney fees. View "Goff v. Goff" on Justia Law

A fire damaged a malt beverage store owned by A Maxon Company, LLC (AMC). Acuity Insurance Company sought a declaratory judgment to determine coverage under an insurance policy listing Greg and Tammy Weatherspoon as additional loss payees. The Weatherspoons counterclaimed for breach of contract. The circuit court granted Acuity’s motion for judgment as a matter of law on the Weatherspoons’ counterclaim, determining that the insurance policy terms prevented the Weatherspoons from recovering damages unless AMC successfully asserted a claim. The jury found that AMC principal, Russel Maxon, had intentionally started the fire, excluding coverage under AMC’s policy. The Weatherspoons appealed.The Circuit Court of the Fourth Judicial Circuit, Corson County, South Dakota, initially denied the Weatherspoons’ motion for summary judgment, ruling that the insurance contract was unambiguous and that the Weatherspoons’ claim was dependent on AMC’s claim. The court also denied Acuity’s motion for summary judgment, finding that there were factual disputes suitable for a jury. At trial, the court granted Acuity’s motion for judgment as a matter of law, concluding that the Weatherspoons could not recover under the policy because AMC’s claim was excluded due to Russel’s intentional act.The Supreme Court of the State of South Dakota affirmed the circuit court’s decision. The court held that the insurance policy’s Loss Payable Clause only allowed the Weatherspoons to collect if AMC could collect, and since the jury found that Russel intentionally started the fire, AMC was precluded from recovering. The court also found no abuse of discretion in admitting expert testimony from Special Agent Derek Hill and allowing the impeachment of Tracy Maxon with prior inconsistent statements. The court concluded that the Weatherspoons’ arguments regarding ambiguity and third-party beneficiary status were unavailing. View "Acuity Insurance V. A Maxon Company" on Justia Law

Linda Ager Coyle, the personal representative of Fred Ager's estate, filed a motion for confirmation of a specific devise related to the proceeds from the sale of storage units Fred had owned. Fred's will directed that the units be given in equal shares to his children, Linda and Jeff, with a life estate interest in half of the net rental income to his wife, Arlene Ager. Arlene filed a petition for supervised administration of the estate, which the circuit court granted. Subsequently, the court denied Linda's motion for confirmation of the specific devise.Linda appealed the circuit court's denial of her motion, and Arlene filed a notice of review seeking to challenge the court's earlier decision denying her motion to remove Linda as the personal representative. The Supreme Court of South Dakota issued an order to show cause, directing the parties to address whether the order denying the motion to confirm a specific devise was appealable. Linda argued that the order was appealable based on the precedent set in In re Estate of Geier, which held that each proceeding in an unsupervised administration is a final order. Arlene contended that the order was not final and not subject to review.The Supreme Court of South Dakota dismissed the appeal for lack of jurisdiction. The court held that a decision made prior to a final order terminating a supervised probate action is not governed by the Geier final order rule. The court emphasized that supervised administration is a single in rem proceeding under SDCL 29A-3-501, which contrasts with the multiple, independent proceedings allowed under SDCL 29A-3-107 for unsupervised administration. Since the order for supervised administration was signed before the denial of Linda's motion, the action had become a supervised administration, and the individual-proceeding rule of finality did not apply. Consequently, the court also dismissed Arlene's notice of review. View "Estate Of Ager" on Justia Law

Leslie Torgerson, a non-Indian, and Terri Torgerson, an enrolled member of the Sisseton Wahpeton Oyate Tribe (SWO), were married in South Dakota. Terri filed for divorce in the SWO tribal court, while Leslie filed for divorce in Roberts County. Leslie moved to dismiss the tribal court proceedings, arguing lack of jurisdiction and improper service, but the tribal court denied his motion. Subsequently, Terri moved to dismiss Leslie’s state court proceedings, and the circuit court granted her motion, recognizing the tribal court’s order under the principle of full faith and credit. Leslie appealed this decision.The circuit court concluded that it shared concurrent subject matter jurisdiction with the tribal court over the divorce but deferred to the tribal court’s order, which it believed had obtained valid personal jurisdiction first. The court also found that the tribal court’s order was entitled to full faith and credit, despite Leslie’s arguments to the contrary.The Supreme Court of South Dakota reviewed the case and reversed the circuit court’s decision. The court held that the circuit court erred in extending full faith and credit to the tribal court’s order. Instead, the court should have applied the principles of comity under SDCL 1-1-25, which requires clear and convincing evidence that the tribal court had proper jurisdiction and that the order was obtained through a fair process. The Supreme Court found that the tribal court lacked both subject matter and personal jurisdiction over Leslie, a non-Indian, and that the tribal court’s order did not meet the requirements for comity. Consequently, the tribal court’s order was not enforceable, and the circuit court’s dismissal of Leslie’s divorce action was reversed. View "Torgerson v. Torgerson" on Justia Law

Kevin Jucht and Nathan Schulz are neighboring farmers. Jucht sued Schulz, alleging that Schulz's chemical spray drifted onto Jucht's property, damaging his soybeans. Jucht reported the incident to the South Dakota Department of Agriculture and Natural Resources (DANR) and subsequently filed a lawsuit against Schulz for negligence, strict liability, trespass, and nuisance, seeking actual and punitive damages. Schulz moved to dismiss the case, arguing that Jucht failed to provide the statutory notice required under SDCL 38-21-46.The Circuit Court of the First Judicial Circuit, McCook County, granted Schulz's motion to dismiss. The court concluded that Jucht's failure to provide the notice required by SDCL 38-21-46 barred him from seeking recovery for the alleged damages. Jucht appealed the decision, arguing that the lack of notice should not bar his cause of action.The Supreme Court of the State of South Dakota reviewed the case and reversed the circuit court's decision. The Supreme Court held that while SDCL 38-21-46 requires a person claiming damages from pesticide use to notify the applicator, failure to provide such notice does not automatically bar the claimant from bringing their claim. Instead, a claimant is barred from seeking recovery under SDCL 38-21-47 only if they fail to allow the applicator to inspect the alleged damage. The court emphasized that the purpose of the notice is to enable timely inspection by the applicator. The Supreme Court remanded the case for further proceedings to determine the nature and timing of the notice Schulz received and whether he was given the opportunity to inspect the damage. View "Jucht v. Schulz" on Justia Law

In October 2014, while guiding a hunting party on their property, the Olsens' son observed a crop duster spraying herbicide, which allegedly damaged the Olsens' ponderosa pine trees. The Olsens claimed the herbicide caused significant damage and death to the trees. They filed a lawsuit against the Defendants, who argued that expert testimony was required to prove causation. The circuit court granted summary judgment in favor of the Defendants, leading to the Olsens' appeal.The Circuit Court of the Fifth Judicial Circuit in Spink County, South Dakota, reviewed the case. The court found that without expert testimony, a jury would be left to speculate about the cause of the damage to the trees. The court noted that the fields of chemistry, botany, and agronomy were beyond the understanding of a typical layperson. Consequently, the court granted summary judgment, dismissing the Olsens' complaint in its entirety.The Supreme Court of South Dakota reviewed the appeal. The court affirmed the circuit court's decision regarding the need for expert testimony to establish causation for the damage to the trees. However, it reversed the summary judgment on the claims of trespass, statutory nuisance, and common law nuisance, noting that these claims do not require proof of damages to survive summary judgment. The court remanded these claims for further proceedings, allowing the Olsens to potentially recover nominal damages. The court affirmed the summary judgment on the claims of promissory estoppel and civil conspiracy due to the lack of evidence on causation for damages. View "Estate of Olsen v. Agtegra Cooperative" on Justia Law

The case revolves around a dispute over the ownership of five parcels of land in Aurora County, South Dakota. The plaintiff, Edward Mohnen, initiated a quiet title action to determine the ownership of these parcels, which were titled in his father's name after his father died intestate in 1969. The defendants included the estate of Edward's late brother, John Mohnen, and the John J. Mohnen Trust. John's Estate counterclaimed, asserting that it held a complete fee interest in all the disputed parcels through adverse possession and also asserted the affirmative defense of laches.The Circuit Court of the First Judicial Circuit in Aurora County, South Dakota, rejected both the laches defense and adverse possession theory. It determined ownership for the five tracts at issue, applying intestacy laws to evidence concerning the current state of record title.Upon review, the Supreme Court of the State of South Dakota reversed the lower court's decision. The Supreme Court held that the lower court erred in its interpretation of the adverse possession claim under South Dakota Codified Laws (SDCL) 15-3-15. The Supreme Court clarified that SDCL 15-3-15 requires only proof of “(1) claim and color of title made in good faith, (2) ten successive years in possession, and (3) payment of all taxes legally assessed.” The court found that John's Estate met these requirements and thus, reversed the lower court's decision denying John’s Estate’s adverse possession claim under SDCL 15-3-15. The case was remanded for further proceedings consistent with the Supreme Court's opinion. View "Mohnen v. Estate of Mohnen" on Justia Law