Justia Real Estate & Property Law Opinion Summaries

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

The case involves MRose Development Co., LLC and Jason Schumacher (MRose) who sought to develop farmland located along Swan Lake in Turner County into 15 lakefront lots. The land was currently included in an agricultural zoning district, and due to residential density restrictions, MRose applied to rezone the land into a lake residential district. The Turner County Board of County Commissioners (the County) denied the application, and MRose appealed to the circuit court.The circuit court reversed the County's decision, interpreting Turner County's zoning ordinance to require approval of the rezoning application as a purely ministerial act because the land was situated along Swan Lake. The County appealed this decision.The Supreme Court of the State of South Dakota reversed the circuit court's decision. The court found that the circuit court erred in its interpretation of the 2008 Zoning Ordinance, which it believed required the County to approve MRose's rezoning application. The Supreme Court held that no provision in the entire 2008 Zoning Ordinance stated that lakefront property must be zoned Lake Residential simply by virtue of its location. The court also held that the County's decision to deny MRose's rezoning application was not arbitrary, as MRose failed to meet its burden of proof that the County acted arbitrarily. View "Mrose Development Co. v. Turner County Bd. Of Commissioners" on Justia Law

In South Dakota, Emily Bialota sought to gain title to a property previously owned by Lakota Lakes, LLC, which was sold at a tax sale due to unpaid property taxes. Bialota argued that she had properly served Lakota Lakes with a notice of intent to take tax deed, while Lakota Lakes claimed it had not been validly served, rendering the tax deed void. The circuit court granted Lakota Lakes' motion for summary judgment, determining that Bialota had not properly served the notice. Bialota appealed this decision. The Supreme Court of South Dakota reversed and remanded the lower court's decision. It held that under Minnesota law, which Lakota Lakes operated under, the Minnesota Secretary of State was the valid agent for service of process as Lakota Lakes had been administratively terminated and failed to maintain a registered agent for service of process. The court further held that Bialota had personally served the notice on the Minnesota Secretary of State, which was deemed proper under South Dakota law. Therefore, the court concluded that Bialota had correctly served Lakota Lakes and was entitled to the tax deed to the property. View "Bialota V. Lakota Lakes" on Justia Law

In South Dakota, realtor Joshua Uhre, who owns Uhre Realty Corporation (URC) and Uhre Property Management Corporation (UPM), had a dispute with Benjamin and Leslie Tronnes over the sale of their property. The Tronneses had contracted with Uhre to sell their property and entered into a property management agreement that authorized Uhre to lease and manage the property if it did not sell. After the property was leased to a tenant, the Tronneses sold the property directly to the tenant after the listing agreement expired. Uhre claimed that his realty company was entitled to a sales commission and that his property management company was entitled to a management fee for the entire lease agreement, despite its early termination. Uhre sued the Tronneses for breach of the listing agreement, breach of the management agreement, and civil conspiracy. The Tronneses counterclaimed, alleging that Uhre and his companies had interfered with their business expectation with the tenant.The Supreme Court of the State of South Dakota held that Uhre was not entitled to a sales commission because he did not procure a ready, willing, and able buyer during the term of the listing agreement. The court also rejected Uhre's argument that the lease agreement gave him an option to buy the property, finding that it did not contain the necessary terms for a valid option contract. Additionally, the court found that the Tronneses did not breach the implied covenant of good faith and fair dealing. Regarding the management agreement, the court ruled in favor of the Tronneses, stating that Uhre was only entitled to 10% of the monthly rent that had accrued through June 3, 2021, which he had already received. Finally, the court reversed the lower court's determination that the Tronneses were entitled to attorney fees, finding that the listing agreement only authorized fees in the event of a breach of contract. View "Uhre Realty V. Tronnes" on Justia Law

In 1999, Bernard Stockwell had his agriculturally zoned property in McCook County, South Dakota, replatted into five individual lots. In 2022, he sought an opinion from the McCook County Zoning Administrator on the number of building eligibilities for his lots. The Zoning Administrator determined that all five lots shared one building eligibility, based on her interpretation of the 2014 McCook County Zoning Ordinance. Stockwell appealed this decision to the McCook County Board of Adjustment (BOA), arguing each lot should have its own building eligibility. The BOA sided with the Zoning Administrator.Stockwell then petitioned the Circuit Court for a writ of certiorari and sought declaratory relief. The County sought summary judgment, which the Circuit Court granted. Stockwell appealed to the Supreme Court of South Dakota.The Supreme Court reversed the Circuit Court’s decision. The Court held that the 2014 zoning ordinance unambiguously refers to its own effective date, and the Circuit Court erred by not applying this definition, despite recognizing that Stockwell’s lots meet this definition. The Court also noted that if the County wishes to change the definition, it is up to the County’s legislative body, not the courts, to do so. View "Stockwell V. Mccook County Board Of Commissioners" on Justia Law

In the case before the Supreme Court of the State of South Dakota, Love’s Travel Stops & Country Stores and One Shot, LLC, filed a petition against the City of Wall, South Dakota, City Council, and Planning and Zoning Commission for the City. Love’s, a corporation that operates 24-hour truck stops, entered into an agreement to purchase a 13-acre parcel of land from One Shot, contingent on obtaining the necessary zoning and permitting approvals from the city. After the City Council denied Love's rezoning and building permit applications, Love’s filed a petition for writ of mandamus, writ of certiorari, and request for declaratory relief with the circuit court. The circuit court granted Love's petition in part, declaring that the City’s Zoning Ordinance did not apply to the property and required the City to reconsider Love's application for a building permit. The City Council reconsidered and again denied Love's building permit application. Love’s then filed a motion for order to show cause requesting the circuit court to find the City in contempt of the court’s order and sought issuance of a building permit. The circuit court found the City in contempt and ordered the City to issue Love's a building permit. The City appealed.The South Dakota Supreme Court reversed the circuit court's decision. The Supreme Court found that the circuit court order was clearly erroneous in finding that the City willfully and contumaciously violated the court’s order to reconsider and vote on Love's requested building permit. The Supreme Court also noted that the circuit court’s remedy for its finding of contempt was inconsistent with the purpose of civil contempt and exceeded its authority by imposing a punitive, rather than coercive civil contempt remedy. The court's order to issue a building permit was punitive and denied the City the opportunity to purge itself of contempt and come into compliance with the original court order. Therefore, the Supreme Court reversed the circuit court’s finding of contempt and the order issuing a building permit to Love's. View "Love’s Travel Stops V. City Of Wall" on Justia Law