Justia Landlord - Tenant Opinion Summaries
Articles Posted in South Dakota Supreme Court
Stock v. Garrett
The Garretts owned 5,200 acres of farmland in Sully County and faced financial difficulties, leading them to sell the property to the Stocks. The Stocks agreed to lease the land back to the Garretts for five years, with an option for the Garretts to repurchase it. The Garretts failed to make timely lease payments, prompting the Stocks to initiate an eviction action. The Stocks alleged that the Garretts had not only failed to pay rent but also committed waste on the property.The Circuit Court of the Sixth Judicial Circuit in Sully County held a two-day trial, where the jury found in favor of the Stocks, granting them immediate possession of the farmland. The Garretts appealed, arguing that the circuit court erred in denying their motion to dismiss, their motion for judgment as a matter of law, and their motion for a new trial. They also contended that the court erred in denying their proposed jury instructions.The Supreme Court of South Dakota reviewed the case and affirmed the circuit court's decisions. The court held that the Stocks had complied with the three-day notice to quit requirement and that the mandatory mediation provisions did not apply as the relationship was that of lessor and lessee, not creditor and borrower. The court also found that the circuit court did not abuse its discretion in denying the Garretts' proposed jury instructions, as the instructions given adequately covered the applicable law. Finally, the court concluded that the jury's verdict was supported by sufficient evidence, and the circuit court did not err in denying the Garretts' motions for judgment as a matter of law or for a new trial. The Supreme Court also awarded the Stocks $5,000 in appellate attorney fees. View "Stock v. Garrett" on Justia Law
Vor, Inc. v. Estate of O’Farrell
VOR, Inc. and the Grand Valley Hutterite Brethren (Colony) initiated an eviction action against Paul O’Farrell and Skyline Cattle Co. (Skyline) under South Dakota’s forcible entry and detainer (FED) statutes. Paul moved to dismiss the suit, arguing that the eviction should have been a compulsory counterclaim in his pending undue influence suit against his brother Kelly, the Colony, and the Raymond and Victoria O’Farrell Living Trust. The circuit court denied Paul’s motion to dismiss, and after a court trial, granted the eviction, ordering Paul to vacate the property within ten days and allowing the Colony to keep any of Paul’s personal property abandoned after the ten days expired. Paul appealed.The Circuit Court of the Third Judicial Circuit denied Paul’s motion to dismiss, his request for a jury trial, and his request for a continuance. The court proceeded with a court trial and granted the eviction in favor of the Landlords. The court also ordered that any personal property left by Paul after ten days would be considered abandoned and could be kept by the Colony. Additionally, the court awarded attorney’s fees to the Landlords.The Supreme Court of South Dakota reviewed the case and affirmed the circuit court’s decision in part and reversed it in part. The court held that the FED statutes did not allow for pre-answer motions to extend the time for filing an answer and that the eviction action was not a compulsory counterclaim in Paul’s undue influence lawsuit. The court also held that Paul’s demand for a jury trial was untimely and that the circuit court did not abuse its discretion in denying the request for a continuance or in excluding evidence of undue influence. However, the Supreme Court found that the circuit court erred in ordering the forfeiture of Paul’s personal property and remanded the case to revise the judgment accordingly. The court awarded VOR and the Colony combined appellate attorney fees of $9,000. View "Vor, Inc. v. Estate of O'Farrell" on Justia Law
Burgi v. East Winds Court, Inc.
The Supreme Court affirmed the decision of the circuit court granting Landlord's motion for summary judgment on each claim brought by Tenant, holding that the circuit court did not err.Tenant's minor son was attacked by a neighbor's dog near her home in Landlord's trailer court. Tenant brought this action against Landlord alleging two negligence theories and a breach of contract claim. The circuit court concluded that Landlord owed no legal duty to the child and, in any event, had no knowledge of the dog's alleged dangerous propensities. The Supreme Court affirmed, holding that the dog's attack on the child was not actionable as to Landlord because there was no duty that would subject it to liability. View "Burgi v. East Winds Court, Inc." on Justia Law
Berbos v. Berbos
The Supreme Court affirmed the decision of the circuit court denying Appellants’ motion to intervene in a partnership dissolution action, holding that Appellants failed to meet the tripartite test necessary for intervention as a matter of right under S.D. Codified Laws 15-6-24(a)(2).Appellants entered into a farm lease/cash rent agreement with Berbos Farms General Partnership. Appellants sued Berbos Farms to recover unpaid cash rent under the lease for the years 2015. During discovery, Appellants learned that Joe and Lisa Berbos, partners in Berbos Farms, had filed a separate action to dissolve Berbos Farms. Seeking to preserve their right to payment of the 2015 cash rent in the event Berbos Farms was dissolved, Appellants move to intervene in the partnership dissolution action. The circuit court denied the motion. The Supreme Court affirmed, holding that because Appellants failed to show that the claim for unpaid cash rent might be impaired by the disposition of the partnership dissolution lawsuit, the circuit court correctly denied the motion to intervene under section 15-6-24(a)(2). View "Berbos v. Berbos" on Justia Law
Standard Fire Insurance Co. v. Continental Resources, Inc.
The Supreme Court reversed the circuit court’s dismissal of Standard Fire Insurance Co.’s case against Continental Resources Inc. pursuant to S.D. Codified Laws 15-6-12(b)(5). Standard Fire brought suit seeking statutory reimbursement or, in the alternative, equitable subrogation of workers’ compensation benefits paid to an employee. The circuit court found that the terms of a settlement agreement barred further litigation and that res judicata applied. The Supreme Court disagreed and remanded the matter for further proceedings, holding that the circuit court erred when it determined that the plain language of the settlement agreement barred Standard Fire’s claim. View "Standard Fire Insurance Co. v. Continental Resources, Inc." on Justia Law
Tri-City Associates, LP v. Belmont, Inc.
Tri-City Associates, LP owned and operated the Northgate Shopping Center in Rapid City. It entered into a written lease agreement with Belmont, Inc. in April 2006 for unfinished commercial space. The unfinished commercial space required substantial initial construction work before the lease was to begin on August 1, 2006. The parties experienced considerable difficulties in completing the terms of the lease. Tri-City proposed to move the start date of the lease to January 15, 2007. Belmont did not respond to the requested modification. Ultimately, Tri- City did not deliver the premises to Belmont on August 1, 2006, in the condition required under the lease and did not complete its allocated initial construction work. After Belmont did not pay rent for the first few months of the lease, Tri-City served Belmont with a notice of default under the lease. A month later, Tri-City served Belmont with a notice to quit and vacate and, in April 2007, sued to evict Belmont. Belmont answered and asserted that Tri-City materially breached the lease, which Belmont asserted relieved it of its duty to pay rent. Then, in October 2007, Belmont counterclaimed for damages for Tri-City’s failure to perform under the terms of the lease. Tri-City responded to Belmont’s counterclaim that Belmont agreed to accept the premises “as is.” Tri-City also argued that Belmont failed to provide Tri-City with written notice of Tri-City’s alleged breach and did not give Tri-City an opportunity to cure as required by the notice-and-cure provision in the lease. In this second appeal, Tri-City argued that the circuit court erred when it entered a judgment in favor of Belmont, Inc. In "Tri-City I," the South Dakota Supreme Court reversed and remanded the case for the circuit court to enter “findings of fact and conclusions of law on the effect of Belmont’s failure to give notice of breach and an opportunity to cure.” On remand, the circuit court entered supplemental findings of fact and conclusions of law, interpreting the notice-and-cure provision of the lease at issue to allow for substantial compliance and found that Belmont substantially complied. It also found that Tri-City had actual notice of its material breaches and an opportunity to cure. Alternatively, the court concluded that, by bringing suit against Belmont, Tri-City repudiated any intention to perform its obligation under the lease and made futile the requirement that Belmont strictly comply with the notice-and-cure provision. It then entered a judgment in favor of Belmont. Finding no reversible error in the trial court's judgment, the Supreme Court affirmed. View "Tri-City Associates, LP v. Belmont, Inc." on Justia Law