Justia Real Estate & Property Law Opinion Summaries

Paul O’Farrell, individually and on behalf of the Raymond and Victoria O’Farrell Living Trust, the Estate of Victoria O’Farrell, Skyline Cattle Co., and VOR, Inc., filed a lawsuit against Grand Valley Hutterian Brethren, Inc., the Raymond and Victoria O’Farrell Living Trust, and Kelly O’Farrell. Paul alleged that Kelly manipulated their father, Raymond, to orchestrate improper transactions, including a $3.2 million land sale and the non-renewal of Skyline’s lease, causing financial harm to the family entities and himself.The Circuit Court of the Third Judicial Circuit in Grant County, South Dakota, presided by Judge Robert L. Spears, dismissed Paul’s claims and awarded attorney fees to the defendants. Paul had requested a change of judge, which was denied by Presiding Judge Stoltenburg, who cited judicial economy and previous submissions by Paul in related cases as reasons for the denial.The Supreme Court of the State of South Dakota reviewed the case. The court held that Paul and Skyline followed the proper procedure for seeking a change of judge and that neither had waived their right to do so in this specific action. The court found that Judge Spears was disqualified from further proceedings upon the filing of the affidavit for change of judge. Consequently, the Supreme Court vacated all orders entered by Judge Spears in the case and remanded for the appointment of a replacement judge. View "Estate Of O’Farrell v. Grand Valley Hutterian Brethren" on Justia Law

Chris Welsh, representing CAL SD, LLC, entered into a purchase agreement with Interwest Leasing, LLC to buy commercial real estate, with a $30,000 earnest money deposit. Welsh passed away before closing, and CAL SD refused to close. Interwest sold the property to another buyer for the same price but did not return the earnest money. CAL SD filed a declaratory judgment action to recover the deposit, claiming the agreement was void due to their inability to obtain financing.The Circuit Court of the Seventh Judicial Circuit in Pennington County, South Dakota, treated the declaratory judgment as a breach of contract action and set it for a jury trial. The jury found in favor of CAL SD, and the court ordered the return of the earnest money deposit. Interwest appealed, arguing the action was equitable and should not have been decided by a jury, and also claimed the court gave erroneous jury instructions.The Supreme Court of the State of South Dakota reviewed the case. The court held that the declaratory judgment action was legal, not equitable, because it sought to enforce contractual rights under the purchase agreement, which was void if financing was not obtained. The court affirmed the lower court's decision to submit the case to a jury for a binding verdict, as the issue was whether CAL SD breached the contract by failing to secure financing. The court concluded that the jury's determination that CAL SD was unable to obtain financing rendered the purchase agreement void, entitling CAL SD to the return of the earnest money deposit. View "Cal SD, LLC v. Interwest Leasing, LLC" on Justia Law

In October 2020, Cal SD, LLC purchased a property with a restrictive covenant that regulated property maintenance and improvements, including a prohibition on new construction within designated "no build" areas. The covenant allowed for a specific exception for a garden fence on Lot B, with strict size and location limitations. Tina Roberts, who gained control of Cal SD in April 2021, constructed a garden with a fence that included overhead trusses and hail netting, exceeding the permitted dimensions and height.The Circuit Court of the Seventh Judicial Circuit, Pennington County, South Dakota, reviewed the case after Spring Canyon Properties, LLC filed a complaint alleging that Roberts' garden structure violated the restrictive covenant. The court denied Roberts' motion for summary judgment and granted Spring Canyon's motion for partial summary judgment, concluding that the garden structure was a building rather than a fence and violated the covenant. The court ordered Roberts to remove the overhead components and comply with the covenant.The Supreme Court of the State of South Dakota reviewed the case. The court affirmed the circuit court's decision that the garden structure violated the restrictive covenant, as the structure did not fit the plain and ordinary meaning of a "fence" and conflicted with the covenant's purposes. However, the Supreme Court found that the circuit court erred in imposing an eight-foot height restriction, as neither the covenant nor the county ordinance specified such a limit. The Supreme Court affirmed the order to bring the fence into compliance with the covenant but remanded to remove the height restriction. View "Spring Canyon Properties, LLC v. Roberts" on Justia Law

Mary Johnson entered into an oral agreement with her parents, Carl and Pearl Johnson, to obtain financing for constructing a small home on a parcel of land (Gertie Lode) they conveyed to her. In exchange, Mary and her family could live in their parents' larger home on a separate parcel (Spaniard Lode). Once the mortgage was satisfied, Mary was to transfer the Gertie Lode property equally to herself and her siblings. Despite satisfying the mortgage, Mary informed her siblings in 2008 that she would not convey the land to them.Greg Johnson, Mary's brother, sought to enforce the oral agreement and reform the deed from their parents to Mary. The Circuit Court of the Seventh Judicial Circuit, Pennington County, granted Mary’s motion for summary judgment, determining that Greg’s breach of contract claim was barred by the statute of limitations and that he was not entitled to reformation because he could not establish that the deed failed to reflect the parties’ intent. Greg appealed the decision.The Supreme Court of the State of South Dakota reviewed the case and affirmed the lower court's decision. The court held that Greg’s breach of contract claim accrued when he received Mary’s 2008 letter, which clearly indicated her intent to breach the oral agreement. Since Greg did not bring his claim until October 2018, it was barred by the six-year statute of limitations. Additionally, the court found no basis for reformation of the deed, as the oral agreement was never reduced to writing, and the warranty deed accurately reflected the intent of the parties. Therefore, summary judgment on both the breach of contract and reformation claims was appropriate. View "Johnson v. Johnson" on Justia Law

In 1999, Marcus and Eunice Hollow Horn purchased a mobile home on a lot in Eagle Butte, South Dakota, and began paying rent to Oliver Leblanc, who claimed ownership. Later, Phyllis Miller claimed ownership and sold the lot to Eunice, providing a quit claim deed. Years later, Edward Hoffman, representing his deceased mother Theresa Hoffman's estate, claimed Theresa owned the lot and filed a quiet title action against the Hollow Horns. The Hollow Horns counterclaimed, asserting ownership by adverse possession.The Circuit Court of the Fourth Judicial Circuit in Dewey County, South Dakota, denied Edward's claims and quieted title in favor of the Hollow Horns based on adverse possession under SDCL 15-3-15 and SDCL 15-3-1. Edward appealed, challenging the court's findings on good faith and the admission of certain out-of-court statements.The Supreme Court of South Dakota reviewed the case and affirmed the circuit court's decision in part. The court held that Eunice had satisfied the elements of adverse possession under SDCL 15-3-15, including good faith possession and payment of taxes for ten years. The court found no clear error in the circuit court's findings and concluded that Edward failed to rebut the presumption of Eunice's good faith. The court also determined that any error in admitting out-of-court statements was harmless and did not affect the outcome.However, the Supreme Court vacated the circuit court's judgment on the alternative claim for adverse possession under SDCL 15-3-1, as it was rendered moot by the ruling on SDCL 15-3-15. The case was remanded for the circuit court to dismiss the alternative claim. View "Hoffman V. Hollow Horn" on Justia Law

SCS Carbon Transport, LLC (SCS) plans to develop a pipeline network to transport carbon dioxide (CO2) through South Dakota. Several landowners (Landowners) along the proposed route refused to allow SCS pre-condemnation survey access, which SCS claims is authorized by SDCL 21-35-31. Landowners sued in both the Third and Fifth Judicial Circuits, seeking declaratory and injunctive relief to prevent the surveys. These proceedings resulted in a consolidated appeal from six lawsuits filed by Landowners and one by SCS.The Third Circuit granted SCS summary judgment, determining that SCS was a common carrier and that SDCL 21-35-31 was constitutional. The Fifth Circuit also granted SCS summary judgment, adopting the Third Circuit’s reasoning. Landowners appealed, arguing that SCS is not a common carrier, CO2 is not a commodity, and that SDCL 21-35-31 violates the takings and due process clauses of the state and federal constitutions.The Supreme Court of South Dakota reversed the circuit courts’ grants of summary judgment on the common carrier issues. The court held that SCS’s ability to conduct pre-condemnation surveys depends on whether it is a common carrier vested with the power of eminent domain. The record did not demonstrate that SCS is holding itself out to the general public as transporting a commodity for hire. The court also found that the circuit courts abused their discretion in denying Landowners’ request for further discovery.The court further held that SDCL 21-35-31 only authorizes limited pre-condemnation standard surveys, which are minimally invasive superficial inspections. The statute, as strictly interpreted, does not violate the federal or state constitutions. The court concluded that any actual damage caused by the surveys must be justly compensated, with the amount determined by a jury. The case was remanded for further proceedings consistent with this opinion. View "Strom Trust v. SCS Carbon Transport, LLC" on Justia Law

The City of Custer applied for a permit from the South Dakota Department of Agriculture and Natural Resources (DANR) to discharge treated wastewater into French Creek as part of an upgrade to its wastewater treatment facility. Preserve French Creek, Inc. (Preserve), a group of local citizens, opposed this discharge. Two years after the permit was issued, a Custer County ordinance was passed by citizen initiative, declaring the discharge of treated water into French Creek a nuisance. Preserve demanded the City cease construction based on the new ordinance, but the City did not comply. Preserve then sought mandamus relief to enforce the ordinance, which the circuit court denied.The Circuit Court of the Seventh Judicial Circuit in Custer County found that the ordinance conflicted with state law, specifically SDCL 21-10-2, which states that actions done under the express authority of a statute cannot be deemed a nuisance. The court concluded that the City’s actions, authorized by the DANR permit, could not be considered a nuisance. The court also rejected Preserve’s estoppel argument, stating that the City and County had no duty to enforce an ordinance that conflicted with state law.The Supreme Court of the State of South Dakota reviewed the case and affirmed the circuit court’s decision. The court held that the ordinance was preempted by state law because it attempted to declare a nuisance something that state law expressly authorized. The court also found that the City and County were not estopped from asserting the ordinance’s invalidity, as their actions in placing the ordinance on the ballot and canvassing the vote were statutorily required and did not constitute an inconsistent position. Therefore, the writ of mandamus was properly denied. View "Preserve French Creek V. Custer County" on Justia Law

In October 2014, while guiding a hunting party on their property, the Olsens' son observed a crop duster spraying herbicide, which allegedly damaged the Olsens' ponderosa pine trees. The Olsens claimed the herbicide caused significant damage and death to the trees. They filed a lawsuit against the Defendants, who argued that expert testimony was required to prove causation. The circuit court granted summary judgment in favor of the Defendants, leading to the Olsens' appeal.The Circuit Court of the Fifth Judicial Circuit in Spink County, South Dakota, reviewed the case. The court found that without expert testimony, a jury would be left to speculate about the cause of the damage to the trees. The court noted that the fields of chemistry, botany, and agronomy were beyond the understanding of a typical layperson. Consequently, the court granted summary judgment, dismissing the Olsens' complaint in its entirety.The Supreme Court of South Dakota reviewed the appeal. The court affirmed the circuit court's decision regarding the need for expert testimony to establish causation for the damage to the trees. However, it reversed the summary judgment on the claims of trespass, statutory nuisance, and common law nuisance, noting that these claims do not require proof of damages to survive summary judgment. The court remanded these claims for further proceedings, allowing the Olsens to potentially recover nominal damages. The court affirmed the summary judgment on the claims of promissory estoppel and civil conspiracy due to the lack of evidence on causation for damages. View "Estate of Olsen v. Agtegra Cooperative" on Justia Law

The case revolves around a dispute over the ownership of five parcels of land in Aurora County, South Dakota. The plaintiff, Edward Mohnen, initiated a quiet title action to determine the ownership of these parcels, which were titled in his father's name after his father died intestate in 1969. The defendants included the estate of Edward's late brother, John Mohnen, and the John J. Mohnen Trust. John's Estate counterclaimed, asserting that it held a complete fee interest in all the disputed parcels through adverse possession and also asserted the affirmative defense of laches.The Circuit Court of the First Judicial Circuit in Aurora County, South Dakota, rejected both the laches defense and adverse possession theory. It determined ownership for the five tracts at issue, applying intestacy laws to evidence concerning the current state of record title.Upon review, the Supreme Court of the State of South Dakota reversed the lower court's decision. The Supreme Court held that the lower court erred in its interpretation of the adverse possession claim under South Dakota Codified Laws (SDCL) 15-3-15. The Supreme Court clarified that SDCL 15-3-15 requires only proof of “(1) claim and color of title made in good faith, (2) ten successive years in possession, and (3) payment of all taxes legally assessed.” The court found that John's Estate met these requirements and thus, reversed the lower court's decision denying John’s Estate’s adverse possession claim under SDCL 15-3-15. The case was remanded for further proceedings consistent with the Supreme Court's opinion. View "Mohnen v. Estate of Mohnen" on Justia Law

Brandon Hahn was convicted by a jury for intentional damage to property, with the damage amount totaling more than $1,000 but less than $2,500. The property in question was the front door of 88-year-old Delores Moen's home, which Hahn was accused of damaging. Hahn was also charged with obstructing a public officer and disorderly conduct, the latter of which was later dismissed. The State presented multiple witnesses, including Delores' neighbors and the responding police officers, who testified about Hahn's aggressive conduct and their interactions with him. Hahn himself denied any responsibility for damaging the door.In the Circuit Court of the Seventh Judicial Circuit, Pennington County, South Dakota, Hahn moved for judgment of acquittal on the intentional damage to property charge, arguing that the State had not established the fair market value of the door, which he claimed included depreciation. The court denied his motion, concluding that the State could prove the damage amount element through evidence of the cost of reasonable repairs. Hahn was found guilty on both counts and was sentenced to an enhanced 15-year prison sentence on Count 1 with ten years suspended and a 30-day jail sentence on Count 2.In the Supreme Court of the State of South Dakota, Hahn appealed, claiming that the circuit court erred when it denied his motion for judgment of acquittal on the intentional damage to property charge. He argued that the jury could not properly apply the damage element without first establishing the fair market value of the property. The Supreme Court disagreed, stating that the current version of the intentional damage to property statute focuses on the "damage to property" and not the value of the property. The court concluded that there was sufficient evidence for the jury to find that the damage Hahn caused to Delores’ door was at least $1,000 but less than $2,500, and affirmed the circuit court's decision. View "State v. Hahn" on Justia Law