Justia South Dakota Supreme Court Opinion Summaries

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

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

A married couple owned a waterfront property in Canada, which was destroyed by fire during their divorce proceedings. The wife, who was living at the Canadian property, disclosed during discovery that there was a single insurance policy with a $2 million Canadian Dollar (CAD) limit covering the property. The parties entered into a stipulation and agreement, incorporated into the divorce decree, which awarded the wife the Canadian property and the related insurance proceeds. Several months later, the husband learned that the wife was actually receiving $4 million CAD in insurance proceeds, not the $2 million CAD previously disclosed. He alleged that the wife had concealed an additional insurance policy and sought relief from the divorce judgment on grounds of fraud.The Circuit Court of the Second Judicial Circuit, Minnehaha County, South Dakota, reviewed the husband’s motion for relief under SDCL 15-6-60(b)(3). After a hearing based on affidavits and documentary evidence, the court found that the wife had committed fraud by intentionally concealing the additional insurance policy. The court ordered the wife to produce all insurance policies in effect at the time of the fire and directed that any insurance proceeds exceeding $2 million CAD be split equally between the parties, in accordance with their agreement and SDCL 25-4-77. The court also awarded attorney fees to the husband and issued a stay allowing the wife to use the insurance proceeds to rebuild the property, with any excess to be held in trust.On appeal, the Supreme Court of the State of South Dakota held that the circuit court’s finding of fraud was not clearly erroneous and affirmed the grant of Rule 60(b) relief. The Supreme Court remanded the case for further proceedings to determine the appropriate division of assets under the current circumstances, given the stay and use of insurance proceeds for reconstruction. The Supreme Court also awarded appellate attorney fees to the husband. View "Trumble v. Trumble" on Justia Law

A man was convicted of three counts of sexual contact with a developmentally disabled adult neighbor, D.W., who functioned at the intellectual level of a seven-year-old. The incidents occurred during a Fourth of July celebration at the defendant’s home, involving inappropriate touching on a four-wheeler, on a hot tub, and behind a trailer. D.W. reported the incidents to his mother, who was his court-appointed guardian. The mother recorded a phone call in which the defendant made incriminating statements about the incidents. D.W. was later evaluated by a physician specializing in abuse of developmentally disabled individuals.The Circuit Court of the Second Judicial Circuit, Minnehaha County, presided over the trial. The court allowed D.W. to testify while holding a stuffed animal for comfort, over the defendant’s objection. The court denied the defendant’s motions for judgment of acquittal at the close of the State’s evidence and at the end of trial. The jury found the defendant guilty on all three counts. The defendant appealed, challenging the allowance of the stuffed animal, the sufficiency of the evidence, and two other issues not preserved for appeal: the physician’s testimony and the State’s cross-examination.The Supreme Court of the State of South Dakota reviewed the case. It held that the circuit court did not abuse its discretion in allowing D.W. to testify with a stuffed animal, as courts have broad authority to manage witness testimony and accommodations. The Supreme Court also found no plain error in the State’s cross-examination or the physician’s testimony, and concluded that sufficient evidence supported the convictions. The Supreme Court affirmed the convictions and all rulings of the circuit court. View "State v. Richter" 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

In April 2018, Mark Fiechtner was involved in a motor vehicle accident in Lincoln County, South Dakota, caused by another driver, Caitlyn Belliveau, who lost control on icy roads. Fiechtner subsequently experienced neck pain, headaches, vision problems, and memory issues, seeking treatment from various healthcare providers. He held an insurance policy with American West Insurance Company, which paid the $10,000 medical benefits limit. Fiechtner also received the $100,000 liability limit from Belliveau’s insurer. He then sought $900,000 in underinsured motorist (UIM) benefits from American West, but was offered only $10,000. After unsuccessful negotiations, Fiechtner sued American West for breach of contract, bad faith, punitive damages, and attorney fees.The case was tried in the Circuit Court of the Second Judicial Circuit, Lincoln County, South Dakota. At trial, evidence showed that American West’s investigation of the UIM claim was limited and did not include contacting Fiechtner or his healthcare providers, nor reviewing prior claim notes. The jury found in favor of Fiechtner on all counts, awarding $400,000 for breach of contract, $250,000 for bad faith, $890,000 in punitive damages, and attorney fees. The circuit court denied American West’s post-trial motions for judgment as a matter of law and for a new trial.The Supreme Court of the State of South Dakota reviewed the case. It affirmed the circuit court’s denial of American West’s motions, holding that sufficient evidence supported the jury’s findings of bad faith and punitive damages, and that the circuit court did not clearly err in awarding attorney fees under SDCL 58-12-3. The Supreme Court also found no abuse of discretion in the circuit court’s evidentiary rulings. View "Fiechtner v. American West Ins." on Justia Law

Soloman Longchase was charged with multiple offenses, including aggravated assault (domestic), aggravated kidnapping, grand theft, interference with emergency communication, and false impersonation to deceive law enforcement, stemming from incidents on August 20, 2022. After the initial complaint and indictment, Longchase was held in the Hughes County Jail on unrelated charges. He was granted a medical furlough but failed to return, resulting in an escape charge and a period as a fugitive until his rearrest in December 2023. He later appeared in court for the Hyde County charges, was appointed counsel, and ultimately entered a plea agreement to plead guilty to grand theft and simple assault, with other charges dismissed.The Circuit Court of the Sixth Judicial Circuit, Hyde County, presided over the case. Longchase moved to dismiss the indictment, alleging a violation of his constitutional right to a speedy trial. The circuit court denied the motion after applying the Barker v. Wingo factors. At sentencing, the court ordered Longchase to reimburse the county for court-appointed attorney fees, finding he had the ability to work and pay after release from prison. Longchase objected, arguing the court was required to make specific findings about his ability to pay and that recoupment was unconstitutional given his current financial status.The Supreme Court of the State of South Dakota reviewed the case. It held that Longchase’s unconditional guilty plea waived his right to appeal the alleged speedy trial violation, as the right to a speedy trial is not a jurisdictional defect that survives a guilty plea. The court also held that the circuit court’s order requiring reimbursement of attorney fees did not violate Longchase’s constitutional rights to counsel or due process, as he was afforded counsel at all critical stages and had a meaningful opportunity to contest the recoupment order. The Supreme Court affirmed the circuit court’s rulings. View "State v. Longchase" on Justia Law