Justia South Dakota Supreme Court Opinion Summaries

LJP Consulting LLC, a New Jersey business, entered into a Referral Agreement with Total Card, Inc. (TCI) under which LJP would receive a 3% referral fee on servicing revenue generated from businesses it referred to TCI. In 2014, LJP referred First Equity Credit Card Corp. to TCI, resulting in a servicing relationship. In late 2020, Vervent, Inc. acquired TCI and its associated obligations, including those under the Referral Agreement. Vervent paid LJP the referral fee for two months post-acquisition, then terminated the Referral Agreement and ceased payments in January 2021. LJP sued, seeking a declaratory judgment confirming the validity of the agreement and its entitlement to ongoing referral fees while Vervent serviced First Equity accounts.The Circuit Court of the Second Judicial Circuit, Minnehaha County, denied Vervent's motion to dismiss and granted partial summary judgment to LJP, finding Vervent liable for breaching the Referral Agreement but leaving damages for trial. After Vervent’s sister company acquired First Equity in March 2022, Vervent argued it no longer owed referral fees. The court initially excluded evidence of this acquisition but later reversed that ruling during trial. A jury awarded LJP over $1 million in damages, including fees post-acquisition, and the court issued a permanent injunction requiring future payments so long as Vervent serviced First Equity accounts. Vervent’s post-trial motions for judgment as a matter of law and remittitur were denied.The Supreme Court of the State of South Dakota affirmed the circuit court’s determination that the Referral Agreement was not terminable at will. However, it reversed the denial of Vervent’s motions for judgment as a matter of law regarding damages after the First Equity acquisition, holding that Vervent’s obligation to pay referral fees ended once its affiliate acquired First Equity and there was no renewed client contractual relationship. The permanent injunction and post-acquisition damages award were vacated. View "LJP Consulting, LLC v. Vervent, Inc." on Justia Law

Two companies, Gulf Coast Investments, LLC and Trigger Energy Holdings, LLC, sold their membership interests in Blueprint Energy Partners, LLC to TCU Holdings, LLC. Blueprint, formed in 2017 for shale oil operations in Wyoming, originally had three equal members: Gulf Coast, Trigger, and TCU, with Aladdin Capital, Inc. as the manager and primary creditor. After financial struggles and interpersonal conflicts, the parties negotiated the buyout in 2019. TCU’s principal, Kent Stevens, threatened to leave and take staff and clients unless Gulf Coast and Trigger agreed to a set price, known as the “dynamite option.” Despite these threats, the plaintiffs were represented by counsel who advised them of alternatives, and negotiations spanned several months, culminating in a signed purchase agreement.The Circuit Court of the Second Judicial Circuit, Minnehaha County, South Dakota, reviewed the plaintiffs’ post-sale lawsuit alleging economic duress, breach of operating agreement, breach of fiduciary duty, tortious interference, shareholder oppression, unjust enrichment, and sought accounting and injunctive relief. The circuit court granted summary judgment for the defendants on all counts, reasoning that the plaintiffs voluntarily entered the agreement, had legal alternatives, and that the contract itself contained a waiver of further claims. The court also addressed each substantive claim on its merits, finding no legal basis for recovery.On appeal, the Supreme Court of the State of South Dakota affirmed the circuit court’s grant of summary judgment. The Supreme Court held that, under either the three-part or two-part test for economic duress, the plaintiffs failed to show involuntary acceptance or lack of reasonable alternatives. The court also found no breach of the operating agreement or fiduciary duties, no tortious interference or shareholder oppression, and no basis for unjust enrichment or usurpation. The holding confirms the validity and enforceability of the purchase agreement and disposes of all claims against the defendants. View "Trigger Energy Holdings v. Stevens" on Justia Law

Amanda Biteler was arrested and charged with driving under the influence (second offense) and released on bond in Lincoln County, South Dakota. As a condition of her bond, she was required to participate in the 24/7 alcohol monitoring program, initially submitting in-person breath tests and later authorized to use a remote breath device. This device takes a photograph of the person submitting each breath test. On December 9, 2023, her test was flagged by the monitoring software, revealing evidence that another person may have provided the breath sample while Biteler was in front of the camera. Subsequent review identified five additional suspicious incidents. Biteler was charged with six counts of false reporting to authorities under SDCL 22-11-9(3).After a court trial in the Magistrate Court for the Second Judicial Circuit, the judge convicted Biteler for the December 9 incident and acquitted her on the remaining counts. The magistrate court found that the breath test and accompanying photograph constituted a "report" under the statute, that Biteler intentionally transmitted it to law enforcement, that the report concerned law enforcement’s official duties, and that she knew the information was false. Biteler appealed to the Circuit Court, arguing the statutory term “report” was ambiguous and did not encompass her compelled breath submissions. The Circuit Court reversed the conviction, reasoning that her submissions were not “reports” within the statute’s meaning, as they were not voluntary communications.The Supreme Court of South Dakota reviewed the case, applying de novo review to the statutory interpretation of SDCL 22-11-9(3). The court held that the term “report” under the statute is not limited to formal or voluntary communications but encompasses any transmission furnishing information to law enforcement, regardless of medium or voluntariness. The Supreme Court reversed the Circuit Court’s decision and reinstated Biteler’s conviction. View "State v. Biteler" 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

Brian Jessop and Lisa Combs are the parents of a young child, B.J.J. After their relationship ended, Lisa moved with B.J.J. from Utah to Rapid City, South Dakota. Brian filed a petition seeking parenting time consistent with the South Dakota Parenting Guidelines, while Lisa opposed unsupervised visitation and requested sole custody and only supervised contact for Brian, citing concerns about his alleged ties to the Fundamentalist Church of Latter-Day Saints (FLDS) and claims of past abuse. Throughout the proceedings, Lisa maintained that Brian’s involvement with the FLDS posed risks to B.J.J., and she also alleged that Brian had raped her, resulting in the child’s conception. Brian denied the allegations of abuse and FLDS involvement, asserting that he had left the church years earlier.The custody matter was heard in the Circuit Court of the Seventh Judicial Circuit, Pennington County, South Dakota. Prior to trial, Lisa unsuccessfully sought a continuance due to an unavailable witness and later moved to exclude rebuttal testimony from Brian’s wife, which was also denied. After a bench trial, the circuit court rejected Lisa’s rape allegations and found insufficient evidence that Brian was a current member or follower of the FLDS. The custody evaluator recommended primary physical custody to Lisa but supported unsupervised visitation for Brian. The court awarded joint legal custody, primary physical custody to Lisa, and unsupervised parenting time to Brian, following the Parenting Guidelines.On appeal, the Supreme Court of the State of South Dakota affirmed the circuit court’s rulings. The Supreme Court held that the circuit court did not abuse its discretion in denying Lisa’s motions for continuance and exclusion of rebuttal testimony, nor did it err in its findings regarding Brian’s lack of FLDS involvement and the rape allegation. The Supreme Court also affirmed the denial of Lisa’s request for attorney fees and declined to award appellate attorney fees. View "Jessop v. Combs" on Justia Law

A man became the stepfather to five children after moving in with their mother on a ranch in Corson County, South Dakota. Over several years, he took on the role of disciplinarian, and his methods escalated into severe physical abuse, including shocking the children with a cattle prod, using shock collars, and physical beatings. He also provided illegal drugs to some of the children and subjected his stepdaughter to repeated sexual assaults, beginning when she was fourteen. The pattern of abuse and cruelty continued even as the family moved around the country, including periods spent in Oklahoma and Sioux Falls.After one of the children disclosed the abuse to a military recruiter, law enforcement became involved, and the man was convicted for related conduct in Minnehaha County. He was later indicted in Corson County on multiple charges: three counts of rape, three counts of aggravated assault, and five counts of abuse or cruelty to a minor. The State sought to admit evidence of similar abusive acts occurring in other jurisdictions. The defense objected, arguing these incidents were irrelevant and too remote, but after a hearing, the Circuit Court of the Fourth Judicial Circuit allowed the evidence, reasoning it showed a common plan and the nature of the familial relationship. The jury found the defendant guilty on all counts. The Circuit Court also denied the defendant’s motion for judgment of acquittal on one rape count.The Supreme Court of the State of South Dakota reviewed the case. It held that the circuit court did not abuse its discretion in admitting evidence of acts committed outside Corson County, finding such evidence admissible to show motive, plan, and the relationship between the defendant and the victims. The Supreme Court also concluded that sufficient evidence supported the second-degree rape conviction, determining that the jury could reasonably find the element of force or coercion was met. The Supreme Court affirmed the convictions. View "State v. Long" on Justia Law

A man managed his elderly mother’s finances and care after his father’s death. He was given power of attorney and access to her accounts. Over several years, he arranged for large sums to be transferred from her investment and checking accounts to support his struggling business. Additionally, he mortgaged significant parcels of the family’s farmland—held in his mother’s revocable trust—as collateral for loans used primarily for his benefit. Some of these financial moves occurred while his mother’s cognitive abilities were declining, and she was living in assisted care.After concerns about these transactions were raised by a family member, law enforcement investigated. The State charged the man with multiple counts of theft by exploitation of an elder under South Dakota law, related both to the mortgages and the transfers from his mother’s accounts. At trial in the Circuit Court of the Third Judicial Circuit, Spink County, a jury found him guilty on all counts. The circuit court imposed fully suspended penitentiary sentences and probation. The defendant appealed, arguing the evidence was insufficient to prove the elements of the crimes, and also objected to the jury instructions regarding his claimed good faith defense.The Supreme Court of the State of South Dakota reviewed the case. The court held that the evidence was sufficient for a rational jury to find that the defendant voluntarily assumed a duty to support his mother, was entrusted with her property, and appropriated her property for his own benefit with intent to defraud, not in the lawful execution of his trust. The court also determined that the jury was properly instructed on good faith and the State’s burden of proof. The Supreme Court affirmed the convictions. View "State v. Clemensen" on Justia Law

The City sought to condemn two portions of property owned by Johnson Properties, located at the intersection of Arrowhead Parkway and Six Mile Road in Sioux Falls, South Dakota, as part of a road realignment project. The property housed the Alibi Bar & Grill, and the City's action resulted in the loss of direct access from Arrowhead Parkway to the business. The City initially offered $32,454 for the property interests, later increasing its offer to $250,000. Johnson Properties rejected these offers, and the matter proceeded to a jury trial solely on the issue of just compensation, with Johnson Properties’ appraiser valuing the loss at $405,000 and the City’s appraiser at $51,711.After a three-day trial in the Second Judicial Circuit Court, the jury awarded Johnson Properties $382,600, which was more than 20% above the City’s final offer. Johnson Properties subsequently moved for attorney fees pursuant to SDCL 21-35-23, submitting evidence of a contingent fee agreement and customary regional practices in eminent domain litigation. The City did not contest the statutory entitlement to fees, the hours worked, or the hourly rate, but argued that the lodestar calculation of $61,740 was sufficient and objected to any enhancement based on the contingency arrangement.The Supreme Court of the State of South Dakota reviewed whether the circuit court abused its discretion in awarding $139,724.60 in attorney fees. The Supreme Court held that the circuit court properly began with the lodestar method and then applied the Kelley factors, including the specialized nature of eminent domain law, customary contingent fee practices, and the substantial results obtained. The Supreme Court found no abuse of discretion and affirmed the circuit court’s award of $139,724.60 in attorney fees. View "City Of Sioux Falls v. Johnson Properties" on Justia Law

A married couple with two minor children experienced significant changes in their financial and professional circumstances during their marriage. The husband started several businesses, including an insurance agency and other ventures with local investors. In early 2023, he faced serious legal and regulatory issues, including a large default judgment and revocation of his insurance and gaming licenses, followed by criminal indictments. Amid these developments, the wife discovered evidence of his extramarital affair and initiated divorce proceedings, seeking an equitable division of marital property and debts. During the divorce, the husband retained counsel and used marital funds to commence a lawsuit against his former business partners to recover money he had invested in their shared businesses.The divorce case was tried in the Circuit Court of the Second Judicial Circuit, Lincoln County, South Dakota. Both parties disputed the classification and valuation of assets, notably the pending lawsuit. The husband argued that the lawsuit should be treated as his separate property due to an alleged pretrial agreement. The wife disputed the existence of such an agreement and asserted that the lawsuit was a marital asset. The circuit court found no binding agreement on the lawsuit’s classification, treated the pending lawsuit as marital property, valued it at $350,000 based on the invested retainer and a percentage of the claimed amount, and assigned it to the husband.The Supreme Court of the State of South Dakota reviewed the case. It held that the circuit court did not abuse its discretion in classifying the pending lawsuit as marital property subject to equitable division. The Supreme Court found that the valuation of the lawsuit was not clearly erroneous, as it reasonably reflected the evidence presented at trial. The Supreme Court affirmed the circuit court’s decisions regarding classification and valuation, and granted the wife’s request for appellate attorney fees. View "King v. King" 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