Justia South Dakota Supreme Court Opinion Summaries

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.

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.

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.