Articles Posted in Labor & Employment Law

by
The Supreme Court affirmed the order of the circuit court dismissing this suit against Marty Indian School (MIS), a legal entity of the Yankton Sioux Tribe, for a lack of subject matter jurisdiction based on federal preemption, holding that the circuit court lacked subject matter jurisdiction to hear Plaintiff's claims against MIS. Plaintiff, the former high school principal at MIS, sued MIS and other involved parties after he was terminated. Plaintiff alleged claims for breach of contract, breach of settlement agreement, wrongful termination, libel, and slander, and requested punitive damages. The circuit court dismissed the complaint on the grounds of tribal sovereign immunity, immunity of tribal officials and employees, infringement of tribal sovereignty, and federal preemption. The Supreme Court affirmed the dismissal solely on a lack of subject matter jurisdiction based on federal preemption, holding that state court action in this dispute was preempted by federal law. View "Stathis v. Marty Indian School" on Justia Law

by
The Supreme Court affirmed the order of the circuit court affirming the decision of the South Dakota Retirement System (SDRS) denying Debra Lee Anderson’s application for survivor spouse benefits under Deborah Cady’s retirement plan with the SDRS, holding that Anderson was not entitled to receive survivor benefits. Anderson and Cady both worked for the Rapid City Police Department. In 2012, Cady retired from the department. In 2015, Anderson and Cady married. In 2017, Cady died. Anderson applied for survivor spouse benefits, but the SDRS denied the application because Anderson and Cady were not married at the time of Cady’s retirement and because Anderson did not meet the definition of a “spouse” under S.D. Codified Laws 3-12-47(80). The South Dakota Officer of Hearing Examiners and circuit court both affirmed the SDRS. The Supreme Court affirmed, holding (1) under the relevant statutes, Anderson could not meet the definition of “spouse” and therefore was not entitled to Cady’s survivor benefits under South Dakota law; and (2) there was no discrimination on the basis of Anderson’s gender or sexual orientation. View "Anderson v. South Dakota Retirement System" on Justia Law

by
The Supreme Court reversed the decision of the circuit court affirming the decision of the South Dakota Department of Labor and Regulation awarding partial summary judgment in favor of Claimant for existing medical expenses she incurred after she suffered a workplace injury to her right foot that required surgery. This appeal concerned Claimant’s second motion for partial summary judgment to recover existing medical expenses after the Department first award partial summary judgment for Claimant’s incurred medical expenses. Employer and its insurer paid the outstanding medical expenses and then argued that a decision on the second motion was unnecessary because the issue was moot. The Department granted partial summary judgment in favor of Claimant. The circuit court affirmed. The Supreme Court reversed the circuit court’s judgment affirming the Department’s decision and remanded to the circuit court with instructions that the court order the Department to vacate its order and dismiss Claimant’s claim for medical expenses, holding that the claim for medical expenses set forth in Claimant’s motion for partial summary judgment became moot prior to the Department’s final order granting summary judgment and was moot when the circuit court reviewed it on appeal. View "Skjonsberg v. Menard, Inc." on Justia Law

by
The Supreme Court affirmed the judgment of the circuit court affirming the decision of the South Dakota Department of Labor and Regulation awarding Tammy Lagler, who suffered a workplace injury, permanent-total-disability (PTD) compensation but reversing the decision to award it as a lump sum. The Department determined that Lagler was entitled to PTD compensation and issued a decision granting Lagler’s request for a lump-sum but denying her request for attorney fees. The circuit court affirmed the Department’s decision regarding Lagler’s entitlement to compensation but reversed the Department’s decision to award compensation as a lump sum. The court also reversed the Department’s denial of attorney’s fees. The Supreme Court affirmed, holding that the circuit court did not err by affirming the Department’s decision to award PTD compensation or by reversing the Department’s decision to deny attorney’s fees. The court also correctly determined that Lagler was not entitled to a lump-sum award. View "Lagler v. Menard, Inc." on Justia Law

by
The Supreme Court reversed the circuit court’s decision affirming the determination of the South Dakota Department of Labor’s Division of Human Rights (DHR) that there was not probable cause to believe the allegations of Joyce Riggs that Bennett County Hospital and Nursing Home, her former employer, opposed her claim for unemployment benefits in retaliation for her earlier request for permission to bring a companion dog to work. The Supreme Court neither affirmed nor reversed the decision of DHR, but remanded the case back to DHR for further consideration, holding that DHR’s decision was incomplete and the circuit court’s affirmance was premature. View "Riggs v. Bennett County Hospital & Nursing Home" on Justia Law

by
The Supreme Court affirmed the circuit court’s partial denial of Plaintiffs’ partial denial of their request for preliminary injunctive relief against Defendant, their former agent, holding that the circuit court did not err by enjoining Defendant only from soliciting business from Plaintiffs’ existing customers without also enjoining Defendant from selling to those customers. Plaintiffs, Farm Bureau Life Insurance Co. and Farm Bureau Property and Casualty Insurance Co., argued in their complaint that Defendant, after leaving Farm Bureau, breached the agency contracts he entered into with Farm Bureau by selling insurance policies to clients to whom he had previously sold Farm Bureau policies. In partially denying Plaintiffs’ request for injunctive relief, the circuit court concluded that portions of the agency contracts that prohibited Defendant from selling to Farm Bureau’s existing customers was an invalid restraint on trade under S.D. Codified Laws chapter 53-9. The Supreme Court affirmed, holding that the plain meaning of section 53-9-12 supported the circuit court’s decision to adhere to that statute’s language. View "Farm Bureau Life Insurance Co. v. Dolly" on Justia Law

by
The Supreme Court affirmed the order of the circuit court granting summary judgment in favor of Employer and certain members of its management staff in this suit brought by Employee after Employee was terminated for allegedly slapping and secluding a senior care facility resident. The Supreme Court held that the circuit court properly granted summary judgment against Employee on his slander claim, intentional infliction of emotional distress claim, malicious prosecution claim, claim for punitive damages, wrongful termination claim, negligent infliction of emotional distress claim, and breach of contract claim. View "Harvey v. Regional Health Network" on Justia Law

by
Mark Black was hired as an agent of the South Dakota Division of Criminal Investigation (DCI) in 2005. Approximately one decade later, DCI terminated Black’s employment after a series of incidents and disciplinary actions. The Civil Service Commission (CSC) found that DCI had just cause to terminate Black’s employment. The circuit court affirmed. The Supreme Court affirmed, holding (1) CSC did not err in finding that DCI had just cause to terminate Black’s employment; and (2) DCI complied with the applicable rules and regulations and afforded Black due process of law. View "Black v. Division of Criminal Investigation" on Justia Law

by
James Mordhorst was injured while working for Fischer Furniture. Almost one year later, Dakota Truck Underwriters and Risk Administration Services (collectively, Insurers) terminated all workers’ compensation benefits. The South Dakota Department of Labor subsequently ordered Insurers to pay all past medical bills and interest as well as future medial expenses. Mordhorst then filed an action seeking punitive damages for an alleged bad-faith denial of workers’ compensation benefits. The circuit court granted Insurers’ motion to dismiss for failure to state a cause of action upon which relief could be granted. The Supreme Court reversed, holding that the circuit court erred by granting Insurers’ motion to dismiss because Mordhorst asserted facts that, if true, state a claim for bad faith denial of a workers’ compensation claim and that Insurers’ reliance on an independent medical examiner’s report to deny benefits was not per se reasonable. View "Mordhorst v. Dakota Truck Underwriters" on Justia Law

by
James Leach, a South Dakota attorney who represents clients in workers’ compensation cases, petitioned the Department of Labor for a declaratory ruling regarding the application of a statute under which the Department excludes discretionary bonuses from the earnings used to calculate an injured worker’s average weekly wage. The Department issued a declaratory ruling that discretionary bonuses may not be included in the wage calculation. Leach appealed. The circuit court sua sponte dismissed the appeal for lack of jurisdiction, ruling that, in the absence of an actual case, the Department was without subject matter jurisdiction to issue the declaratory ruling. The Supreme Court reversed, holding that the Department and the circuit court had jurisdiction to consider Leach’s petition for a declaratory ruling. Remanded to consider the appeal on the merits. View "In re Petition for Declaratory Ruling" on Justia Law