Justia South Dakota Supreme Court Opinion Summaries

This foreclosure action involved a dispute between two creditors, Wells Fargo Financial South Dakota, Inc. and Highmark Federal Credit Union about the priority of their respective mortgage liens against a property. Both parties asserted that they were entitled to first priority. The trial court found that, despite Highmark's statutory priority, under the doctrine of equitable subrogation, Wells Fargo was entitled to first priority. The Supreme Court reversed, holding (1) equity in this case did not require the trial court to pierce the South Dakota recording statutes; and (2) because Highmark filed its lien on the property prior to Wells Fargo, Highmark had priority. View "Highmark Fed. Credit Union v. Wells Fargo Fin. S.D., Inc." on Justia Law

Rachelle Hunter received a loan from Highmark Federal Credit Union to purchase a home and property. A flood damaged the home a few years later, and Hunter had no flood insurance. Hunter filed suit against Highmark, arguing that Highmark was negligent in failing to warn her to purchase flood insurance and in failing to purchase the insurance at her expense. The circuit court granted summary judgment in favor of Highmark. The Supreme Court affirmed, holding that Hunter's negligence claim failed as a matter of law because she could not show that Highmark owed her a duty, and accordingly, summary judgment was appropriate. View "Highmark Fed. Credit Union v. Hunter" on Justia Law

In the early 1990s, Kevin Costner commissioned Peggy Detmers and Detmers Studios, Inc. (collectively, Detmers) to design several sculptures, intending to display them at the entrance of a luxury resort called The Dunbar that Costner had envisioned. Subsequently, Costner and The Dunber (collectively, Costner) and Detmers entered into a binding contract in which Costner would provide Detmers additional compensation. Paragraph three of the agreement provided that if The Dunbar was not built within ten years or the sculptures were not "agreeably displayed elsewhere," Costner would give Detmers fifty percent of the profits from the sale of the sculptures. The sculptures were later placed on Costner's project called Tatanka. Detmers later brought suit against Costners, seeking a declaratory judgment that she did not agree to the placement of the sculptures as required by paragraph three of the parties' contract. The trial court granted judgment in favor of Costner. The Supreme Court affirmed, holding that the circuit court did not err in (1) determining that the sculptures were "agreeably displayed elsewhere," in the absence of a guarantee from Costner that The Dunbar would be built; and (2) concluding that Tatanka was "elsewhere" under the language of the contract. View "Detmers v. Costner" on Justia Law

Dale, Dorothy, Roger, and Daniel Springer owned a forty-acre parcel of property. Andy Cahoy owned an adjoining forty-acre parcel. After the Springers purchased their parcel, they began using Cahoy's parcel to access their property. When Cahoy prohibited the Springers from crossing Cahoy's parcel, the Springers filed suit, claiming an implied easement on Cahoy's parcel. The circuit court concluded that an easement implied from prior use existed with certain limitations. Both parties appealed, and the appeals were consolidated. The Supreme Court reversed, holding that the Springers failed to present clear and convincing evidence of an easement implied from prior use. Remanded. View "Springer v. Cahoy" on Justia Law

Heidi Schumacher signed a renewed lease with Meadowland Apartments. Meadowland later filed an eviction action against Schumacher, alleging that she was in material non-compliance with the lease because Schumacher kept a disruptive dog in her apartment. The magistrate court found that Schumacher's conduct constituted sufficient grounds for termination of the lease. The circuit court affirmed. The Supreme Court affirmed, holding that the magistrate court (1) did not abuse its discretion in denying Schumacher's motion for a continuance, as Schumacher was given a reasonable opportunity to secure evidence on her behalf; (2) did not abuse its discretion in considering evidence of incidents that occurred prior to the term of Schumacher's most recent lease with Meadowland; and (3) did not err in finding that Meadowland provided reasonable accommodations for Schumacher's disability as required under the Fair Housing Amendments Act. View "Meadowland Apartments v. Schumacher" 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

Rabo Agrifinance and Rabo AgServices (collectively, Rabo) commenced a foreclosure action in 2009 on a mortgage granted by Connie and David Finneman (Finnemans) on 17,000 acres of farmland. Rabo commenced its action against Finnemans, Rock Creek Farms (RCF), and all parties who may have had an ownership or leashold interest in the land. Approximately forty-four defendants were listed in the complaint, including Ann and Michael Arnoldy (Arnoldys) and the U.S. as lienholders. The trial court eventually entered a decree of foreclosure in which it recognized RCF's owner's right of redemption. After a sheriff's sale, Ann Arnoldy redeemed from an assignee of the purchaser of the sheriff's certificate. The Arnoldys filed a motion to partially vacate the decree of foreclosure. The trial court granted the motion and vacated the decree of foreclosure recognizing RCF's redemption rights on the basis that RCF and its predecessors, Finnemans, waived those rights. RCF and Finnemans appealed. Arnoldys and the U.S. filed motions to dismiss the appeals for failure to serve the notice of appeal on the U.S. and a number of named parties. The Supreme Corurt dismissed Finnemans' and RCF's appeals for failure to serve their notices of appeal on each party to the action. View "Rabo Agrifinance, Inc. v. Rock Creek Farms" on Justia Law

Sellers hired Agent to list their ranch for sale. Buyers purchased the ranch after Agent represented that the well on the ranch would produce as much water as they would need for their farming and ranching operation. Later, Buyers sued Sellers and Agent for negligent misrepresentation, maintaining that they were misled about the condition of the well and its potential to meet their farming and ranching needs. Buyers sought $513,000 in damages, which was the estimated cost of installing a new well. The circuit court (1) granted Sellers' motion to prohibit evidence of the cost of a new well as a measure of damages, and (2) prohibited Buyers from testifying on the cost of the well as a means of proving the devaluation of their property. The Supreme Court affirmed, holding (1) the Restatement (Second) of Torts sets forth the proper measure of damages in South Dakota for negligent misrepresentation; (2) plaintiffs asserting misrepresentation claims may recover reliance damages but not expectation damages, and therefore, Buyers' evidence of the estimated cost for a new well was properly excluded; and (3) the circuit court properly precluded Buyers from testifying on their land's value. View "Steineke v. Delzer" on Justia Law

Plaintiff ranchers sued the State because of ongoing damage to their property from incursions of prairie dogs from public lands. Relying on multiple statutes requiring the State to manage and control prairie dog populations, Plaintiffs requested injunctive relief, abatement, and damages. The circuit court granted summary judgment in favor of Plaintiffs and ordered a trial on damages. When the case was reassigned, the State moved the new judge to reexamine the first judge's ruling. On reconsideration, the court vacated the first summary judgment and granted summary judgment for the State. The Supreme Court affirmed, holding that the second circuit court judge did not err in granting summary judgment for the State where the acts mandated by the statutes cited by Plaintiffs were discretionary and the State was protected from suit by sovereign immunity. View "Adrian v. Vonk" on Justia Law

When Rita Fix's son and daughter-in-law, Jeff and Marie, secured a loan from the First State Bank of Roscoe by obtaining a warranty deed for the property, the Bank assured Fix she could retain possession of the house. After Jeff and Marie conveyed the house and property to the Bank, the Bank sold the property and sought to remove Fix from the house. Fix sued the Bank for, inter alia, intentional infliction of emotional distress (IIED). Meanwhile, Fix, Jeff, and Marie were indicted on multiple criminal counts. The State attorney who brought the charges and who represented the Bank civilly offered to dismiss the criminal charges against Fix if she would deed the house back to the Bank. Fix then amended her complaint to include a claim of abuse of process against the Bank. The trial court granted summary judgment against Fix on her IIED claim. A jury then returned a verdict finding the Bank liable for abuse of process but awarded no damages to Fix. The Supreme Court reversed on the abuse of process claim, holding that the trial court provided the jury with the incorrect legal standard for the recovery of emotional damages. Remanded for a new trial. View "Fix v. First State Bank of Roscoe" on Justia Law