Justia South Dakota Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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In 2007, Davison County adopted a county-wide plan to reassess agricultural structures. The County reassessed agricultural structures in four of its twelve townships that year. Donald and Gene Stehly, who owned agricultural structures in the four reassessed townships, initiated a declaratory judgment action, alleging that the plan to reassess four townships each year created an unconstitutional lack of uniform taxation within the county. The trial court concluded that the Stehlys' claim failed because they did not establish lack of uniformity within a single taxing district as required by the South Dakota Constitution. The Supreme Court affirmed, holding (1) townships are taxing districts under the Constitution, and (2) a reassessment plan that creates a temporary lack of uniform taxation among townships within a county is constitutional. View "Stehly v. Davison County" on Justia Law

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Over a period of two years, the City of Sioux Falls issued Daniel Daily four citations for a concrete extension to his driveway. Daily appealed each of the citations, but a hearing was held only on the final two citations received. Daily then initiated a declaratory judgment action against the City. The trial court ultimately concluded that the City's administrative appeals process, both as written and as applied, and the City's enforcement of its zoning ordinances violated Daily's constitutional rights to procedural due process and equal protection. The Supreme Court affirmed, holding (1) because the hearing examiner in this case did not hold the City to its burden of proof, the City's administrative appeals process deprived Daily of a protected property interest without due process of law; and (2) the hearing examiner's application of the rules of evidence deprived Daily of a fair hearing. View "Dailey v. City of Sioux Falls" on Justia Law

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The personal representative of an estate sold real property that had been specifically devised to several heirs. The Supreme Court ruled in a previous appeal that the personal representative lacked the authority to sell the property and remanded the case to allow the buyers of the real property to intervene to protect their interests. After remand, the buyers filed suit against the estate. The heirs who objected to the sale intervened. The trial court granted summary judgment in favor of the buyers, finding that the buyers were good faith purchasers for value of specifically devised land and thus were protected by S.D. Codified Laws 29A-3-714 as a matter of law. The intervening heirs appealed. The Supreme Court affirmed but on narrower grounds, holding that based on lack of notice of the heirs' interest in the land or the law at issue, the buyers were good faith purchasers for value, and as such, were protected by the statute. View "Muhlbauer v. Estate of Olson" on Justia Law

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Plaintiff-Appellee Steven Johnson wanted to purchase a tract of commercial real estate from Defendant-Appellant Harrell Sellers and his wife Sandra Green. The purchase agreement, dated May 2009, was prepared by Mr. Johnson's attorney and incorrectly indicated that Mr. Sellers was a single person. Mr. Sellers was married at the time, but in the process of obtaining a divorce from Ms. Green. Ms. Green moved out in October 2008, and divorce proceedings started in January 2009. Sometime after signing the purchase agreement, Mr. Sellers told his attorney about the mistake in the agreement. Mr. Sellers' counsel advised him that Ms. Green would need to give her permission to sell the property. In June 2009, Ms. Green would not authorize the sale. The parties tried to work out agreements as to the closing and problems with the title, but could not resolve their problems. Mr. Sellers tried to rescind the original purchase agreement, arguing that issues with his divorce made closing on the property impossible. Mr. Johnson sued for specific performance. The trial court ruled that Mr. Sellers waived his rights pertaining to certain terms of the original purchase agreement. The Supreme Court concluded that the impediments to closing were resolved within a reasonable time, and because of this, the court could award specific performance of the contract. The Court affirmed the decision of the circuit court.

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Plaintiffs Terry and Susan Brown purchased land adjacent to Defendant James Hanson. The neighbors signed a well-and-road easement agreement, which was recorded with the County Register of Deeds. Believing that the Browns had violated the terms of the agreement, Mr. Hanson filed a letter "rescinding" the agreement with the Register of Deeds. The Browns sued Mr. Hanson, and the trial court ruled that a rescission was not the appropriate remedy for a breach of the easement. Mr. Hanson appealed that decision, and the appellate and Supreme Courts affirmed it. The case was remanded back to the trial court for other issues, one of which was that the Browns alleged Mr. Hanson slandered their title by filing his "rescission" letter with the Register of Deeds. Furthermore, that letter created a cloud on the Browns' title, which the Browns claimed interfered with their contract to sell the property to a third party. The trial court entered a judgment in the Browns' favor. Mr. Hanson again appealed. The Supreme Court found that the trial court did not err in finding Mr. Hanson slandered the Browns' title and tortiously interfered with their sales contract. The Court remanded the case for the redetermination of attorney's fees.

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The South Dakota Department of Transportation (DOT) obtained title to land once owned by Defendants Philip Clark, P&J Enterprises, LLC and Hansen Manufacturing Corporation by eminent domain. The jury determined the amount of compensation to award for the taking. The trial court subsequently awarded prejudgment interest and attorneyâs fees to Defendants. The DOT challenged the award of attorneyâs fees. The Supreme Court found that the plain language of the applicable state law allows for an award of prejudgment interest and attorneyâs fees in connection with eminent domain takings. Accordingly, the Court affirmed the trial courtâs decision.