Justia South Dakota Supreme Court Opinion Summaries

Appellant filed claims of legal malpractice and breach of fiduciary duty against his former attorneys (Appellees) based on an alleged conflict of interest relating to Appellees’ representation of his co-defendants in an underlying lawsuit. The circuit court granted summary judgment for Appellees and dismissed Appellant’s claims. The Supreme Court held that summary judgment was improper. Specifically, the Court held that the circuit court (1) erred in striking Appellant’s expert opinion; (2) did not err by finding collateral estoppel precluded litigation of the limited issue of whether Hamilton signed a conflict of interest waiver; and (3) improperly weighed evidence in granting summary judgment regarding proximate cause. Remanded. View "Hamilton v. Sommers" on Justia Law

Plaintiffs brought a breach of contract action against H&S Builders, Inc. and retained Defendants to defend them in the lawsuit. Plaintiffs fired Defendants during the proceedings and hired a new attorney to assist them. The case was eventually settled. Plaintiffs then commenced this legal malpractice case against Defendants, claiming that Defendant failed properly to represent their interests in the action brought against H&S. The circuit court entered a default judgment as to liability in favor of Plaintiffs but concluded that Plaintiffs failed to prove they suffered any damages that were proximately caused by Defendants’ negligent representation. The Supreme Court affirmed, holding that the circuit court did not clearly err in finding that Plaintiffs failed to prove damages sustained as a proximately result of Defendants’ conduct. View "Peterson v. Issenhuth" on Justia Law

Thomas Konrad accepted a loan from Bob Law upon the advice of attorney Douglas Kettering. Law and Kettering had been partners in at least one of Law's business ventures and had an attorney-client relationship. Thomas's parents (the Konrads) provided their land as collateral for Thomas's loan. Thomas later defaulted on the note. Seven months after Kettering passed away, Law brought suit to enforce the note and mortgage against Thomas and the Konrads. Law settled with Thomas and the Konrads. Law then sought to recover from the Kettering Estate the amounts outstanding on the note, claiming that Kettering's acts - including his conflict of interest with Law and his alleged fraudulent inducement of the Konrads into signing the note and mortgage - voided the note and mortgage, and therefore, the Estate was liable to Law for the interest due on the note. The circuit court granted summary judgment for the Estate. The Supreme Court affirmed, holding (1) the contract between Law and Thomas did not contravene public policy because it was drafted by an attorney who failed to disclose a conflicting attorney-client relationship; and (2) the theory that Kettering fraudulently induced the Konrads into signing the note and mortgage rested on mere speculation. View "Law Capital, Inc. v. Kettering" on Justia Law

Curley Haisch and his wife Rose owned Mulehead Ranch. Joe Duling was the Haisches' financial advisor as well as a realtor and broker. When Curley was ninety years old, he decided to sell the ranch and signed a listing agreement with Joe. Approximately one year later, Joe suggested that Curley and Rose form a charitable remainder trust (Trust) into which the ranch and chattels could be gifted. Curley and Rose executed the Trust, to which the Ranch was transferred. The Trustee then sold the Ranch to Joe and Lynne Duling. Later, it was discovered that the Trust contained multiple defects. The Trustee brought suit against the Dulings, their businesses, and the Mulehead Ranch on behalf of the Trust and the Haisches. The complaint alleged negligence, negligent misrepresentation, and breach of fiduciary duties. A jury found in favor of the Trust awarded Plaintiffs $1,568,200, including punitive damages. The Supreme Court reversed in part and remanded for a new trial on damages, holding (1) the circuit court erred in failing to give a proper instruction on the statutes of limitation applicable to Plaintiffs' claims for future tax consequences related to the defects in the Trust; and (2) the court did not err in the remainder of its judgment. View "Bailey v. Duling" on Justia Law

In a disciplinary proceeding, the South Dakota Real Estate Commission found that Cheri St. Pierre, a licensed broker associate, had engaged in unprofessional conduct involving dishonesty. The Commission suspended her license for one year, but held the suspension in abeyance on conditions, including the payment of a penalty and repayment of the Commission's attorney's fees. The circuit court reversed the Commission's conditional suspension. The Supreme Court reversed the circuit court and reinstated all terms of the Commission's conditional suspension except the provision requiring the repayment of the Commission's attorney's fees, holding (1) St. Pierre engaged in unprofessional conduct within the meaning of S.D. Codified Laws 36-21A-71(15); (2) the Commission was without authority to conditionally order St. Pierre to reimburse the Commission for its attorney's fees expenses as part of its discipline; and (3) the Commission had authority to order St. Pierre to pay a $1,000 penalty as a condition of avoiding a suspension. View "St. Pierre v. State ex rel. S.D. Real Estate Comm'n" on Justia Law