Justia South Dakota Supreme Court Opinion Summaries

The South Dakota Public Assurance Alliance (SDPAA), a local government risk pool, negotiated with Aurora County to provide what was essentially insurance coverage. After coverage was finalized, a local dairy farm sued the County over a pre-existing zoning dispute. The County was found liable for damages. SDPAA then sought a declaration that it did not have a duty to defend or indemnify, arguing, inter alia, that the County failed to disclose material facts relating to the claim. In a jury trial, the circuit court excluded as parol evidence the parties' pre-contract communications regarding coverage for zoning issues, including communications that could be interpreted as having disclosed the dairy farm zoning dispute. The jury found for SDPAA. The Supreme Court reversed and remanded for a new trial, holding that because the excluded coverage communications were not offered to alter or contradict any written terms of the agreement, their admission would not have violated the parol evidence rule. View "S.D. Public Assurance Alliance v. Aurora County" on Justia Law

Denise Estes filed suit against Dr. David Lonbaken, a podiatrist, for medical malpractice, alleging that Lonbaken negligently treated a neuroma on her foot and seeking damages. Estes filed the complaint in Buffalo County. Lonbaken moved to change venue to Hughes County, claiming Hughes County was the proper venue because Estes' surgery and follow-up treatment took place in Hughes County. The trial court granted Lonbaken's motion to change venue. At issue on appeal was whether Buffalo County was a proper venue for the action. The Supreme Court affirmed, holding that the facts creating the necessity for bringing the action took place exclusively in Hughes County, and as such, the proper venue was Hughes County. View "Estes v. Lonbaken" on Justia Law

Plaintiffs, a group of children who attended public schools in several South Dakota school districts and their parents and natural guardians, asked for a declaratory ruling that the state's present system of funding education was unconstitutional because it did not provide all children with an adequate and quality education. At issue was (1) S.D. Const. art. 8, 1 & 15, which requires the Legislature to establish and maintain a general and uniform system of public schools and provide funding to secure a thorough and efficient system of common schools throughout the state and (2) whether the legislative scheme for funding education met the constitutional requirements. The circuit court issued a judgment in favor of defendants, holding that the resources, curriculum, and facilities currently provided to students were constitutionally sufficient. The Supreme Court affirmed, holding that the current educational funding system failed to correlate with adequate student achievement to the point of declaring the system unconstitutional. View "Davis v. State " on Justia Law

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

After self-insured Employer filed for bankruptcy, it continued to take payroll deductions from Employees for medical coverage but stopped paying the provider hospital for the covered charges. The hospital then directly billed Employees for services that should have been paid by Employer. Employees filed suit to stop the hospital's attempts to collect payment, seeking relief under the theories of declaratory judgment, injunction, breach of contract, negligent infliction of emotional distress, and bad faith breach of contract. The circuit court granted summary judgment in favor of the hospital on all of Employees' claims. The Supreme Court reversed, holding (1) Employees had standing as third party beneficiaries to enforce the provisions of the hospital agreement and payer agreement; and (2) Employees were not obligated to pay for covered medical services under the agreements. Remanded. View "Jennings v. Rapid City Reg'l Hosp., Inc." on Justia Law

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

Tabitha Pourier was seriously injured in an automobile accident and suffered damages in excess of $250,000. After receiving $25,000 from the tortfeasor's liaility carrier and $100,000 in underinsured motorist coverage from her primary insurer, Pourier sought an additional $100,000 in underinsured coverage from her excess carrier, De Smet Insurance Company. De Smet denied coverage, asserting that an exclusion in the policy precluded coverage. On cross motions for summary judgment, the circuit court granted summary judgment in favor of De Smet, ruling that the policy exclusion was valid and enforceable. At issue on appeal was whether De Smet's owned-but-not-insured exclusion was void as against public policy because it prohibited Pourier, who was riding in a vehicle owned by her but insured by another company, from recovering for uncompensated damages by De Smet as the secondary insurer. The Supreme Court affirmed, holding that the policy exclusion was not against public policy. View "De Smet Ins. Co. v. Pourier" on Justia Law

Kenneth Stark, a registered sex offender, was convicted of loitering in a community safety zone in violation of S.D. Codified Laws 22-24B-24. On appeal, the Supreme Court affirmed, holding (1) the state statutes prohibiting sex offenders from loitering in community safety zones are constitutional; (2) the trial court did not err by allowing the State to amend the information to include the correct location of Stark's prior felony conviction; (3) there was sufficient evidence to establish that Stark's primary purpose for remaining in the community safety zones was to observe or contact minors; and (4) the trial court did not abuse its discretion by admitting evidence that an individual in a white mini-van registered to Stark was seen in a community safety zone the day before the charged conduct occurred. View "State v. Stark" on Justia Law

Matt Onnen was terminated from the position of registrar at Southeast Technical Institute (STI), an entity of the Sioux Falls School District, after STI officials found several degrees or diplomas had been approved and awarded by Onnen to students who had not earned them, and several students entitled to a degree or diploma had not received one. The Sioux Falls School Board affirmed the decision. Onnen appealed the District's and Board's decision to circuit court, which affirmed the District. On appeal, the Supreme Court affirmed, holding (1) the district court did not err in concluding that the District's decision was not arbitrary and capricious or an abuse of discretion; (2) because Onnen was not a teacher at STI, he was not entitled to sixty days' notice before termination, and therefore Onnen was not denied procedural due process when he was terminated; and (3) the district court did not abuse its discretion in denying Onnen's motion for a new trial. View "Onnen v. Sioux Falls Indep. Sch. Dist." on Justia Law

Rose Pray fell and was injured when a rottweiler broke loose from its owner and dashed across the street toward her. Pray brought an action for damages against the dog owner and the City. As against the City, Pray asserted that it knew the dog was dangerous and failed to enforce its vicious animal ordinance. The circuit court granted summary judgment for the City, ruling that, under Tipton v. Town of Tabor, the city owed Pray no special duty and, therefore, owed no duty to control the conduct of third persons. On appeal, the Supreme Court affirmed, holding (1) the circuit court erred in ruling that Pray needed to prove each of the four Tipton elements to establish that a special duty existed, but (2) as a matter of law, Pray did not meet the legal requirements to show such a duty. View "Pray v. City of Flandreau " on Justia Law