Justia Contracts Opinion Summaries

Articles Posted in South Dakota Supreme Court
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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

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Austin McGee was involved in a car accident on a stretch of Highway 45 in South Dakota that was undergoing resurfacing. He claimed that the accident was caused by a negligent failure by the South Dakota Department of Transportation (DOT) and several of its employees to ensure that the contractor responsible for the resurfacing complied with DOT standards and industry practices. The DOT argued that sovereign immunity protected it from the lawsuit. The Supreme Court of South Dakota affirmed the lower court's decision that McGee could sue the DOT and its employees, rejecting the DOT's arguments that McGee lacked standing as a third-party beneficiary of the contract between the DOT and the contractor, and that McGee failed to establish an actionable duty. The court found that the DOT had a ministerial duty under its own Standard Specifications not to exceed the estimated amount of tack coating to be applied each day, but found no ministerial duties relating to the use of precautionary measures. Thus, the Supreme Court of South Dakota affirmed in part, reversed in part, and remanded for further proceedings. View "Mcgee V. Spencer Quarries" on Justia Law

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The Supreme Court affirmed in part and reversed in part the judgment of the circuit court granting the motion brought by Robert and Shannon Bathurst to dismiss the underlying lawsuit because a statute of limitations barred Linda Paul from bringing her claim against them, holding that dismissal was improper.Paul brought this action against Robert, Shannon, and Stonemeadow Ranch, LLC, alleging breach of contract, quantum merit, unjust enrichment, and promissory estoppel. Shannon and Robert moved to dismiss for failure to state a claim and, in the alternative, argued that Paul's claims were time-barred by the statute of limitations set forth in S.D. Codified Laws 15-2-15(4). The Supreme Court applied a two-year statute of limitations and granted the motion to dismiss based on the alternative argument of the statute of limitations. The Supreme Court reversed in part, holding (1) the record did not allow a determination of which statute of limitation applied at this early stage of the proceedings; and (2) the circuit court did not err when it denied the motion to dismiss for failure to state a claim upon which relief could be granted. View "Paul v. Bathurst" on Justia Law

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The Supreme Court affirmed on appeal two orders of the circuit court in which the court denied the requests brought by Mark and Annessee Brockley to hold Michael Trucano, the Michael J. Truman Living Trust, and Hickoks Hotel & Suites, LLC in contempt, holding that there was no error.The Brockleys sued several entities seeking the amount remaining due on a contract. The circuit court granted partially summary judgment in favor of the Brockleys. At issue was the circuit court's charging order directing an entity that later changed its name to Hickoks to pay certain distributions owed to the Brockleys. The Brockleys filed motions for an order to show cause claiming that several defendants should be held in contempt for violating the charging order. The circuit court denied the motion. The Supreme Court affirmed, holding that the circuit court was not clearly erroneous when it found that neither Trucano, the Trucano Trust, nor Hickoks willfully or contumaciously violated the charging order. View "Brockley v. Ellis" on Justia Law

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The Supreme Court reversed in part and remanded in part the judgment of the circuit court determining that Tom Smith Masonry had a valid mechanic's lien for the unpaid balance due under a construction contract with WIPI Group USA, Inc., holding that the circuit court erred in denying Smith Masonry a judgment of foreclosure on the mechanic's lien for the full amount of the recorded lien.Smith Masonry instituted a mechanic's lien foreclosure action against WIPI seeking to recover unpaid balance due under the parties' construction contract and an award of attorney fees. WIPI counterclaimed for breach of contract. The circuit court ultimately denied both parties relief, determining that Smith Masonry had a valid mechanic's lien for the unpaid contract balance but that WIPI was entitled to an offset because the work did not meet the reasonable standard for construction. The Supreme Court reversed in part and remanded or the court to enter a judgment of foreclosure in favor of Smith Masonry on its mechanics lien, holding that the circuit court erred in determining that WIPI was entitled to a wholesale offset of the amount due under the contract. View "Smith Masonry v. WIPI Group, USA" on Justia Law

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The Supreme Court reversed the decision of the circuit court granting summary judgment in favor of The Genevieve J. Parmely Revocable Trust asking the court to determine that an option agreement made with Brad Magness was invalid because of the absence of consideration, holding that the circuit court erred.In denying summary judgment for Magness and in granting the Trust's second motion for summary judgment the circuit court determined that the written option agreements at issue were not supported by independent consideration and were null and void. The Supreme Court reversed, holding that the Trust failed to rebut the presumption of consideration established by S.D. Codified Laws 53-6-3. View "Genevieve J. Parmely Revocable Trust v. Magness" on Justia Law

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The Supreme Court affirmed in part and reversed in part the decision of the circuit court granting summary judgment in favor of Kevin Costner in this breach of contract case and dismissing the claims brought by Peggy Detmers, holding that the circuit court erred in granting summary judgment for Costner.Costner commissioned Detmers to create sculptures of buffalo and Lakota warriors to display at a luxury resort called The Dunbar that Costner planned to build on his property. A court later found that the parties had agreed to permanently display the sculptures at Tatanka, another project Costner developed. In 2021, Detmers sued Costner again, alleging that Costner's online real estate listing for the Tatanka property constituted an anticipatory breach of the agreement permanently to display the sculptures at Tatanka. The circuit court granted summary judgment for Costner. The Supreme Court reversed in part, holding that the circuit court (1) erred in holding that Detmers' claims were barred by the doctrine of res judicata; (2) erred in its conclusion that Costner had no remaining obligation under the agreement after the parties agreed to display the sculptures at Tatanka; and (3) properly denied Detmers' motion for summary judgment on her claim for anticipatory repudiation by Costner. View "Detmers v. Costner" on Justia Law

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The Supreme Court affirmed the judgment of the circuit court in this appeal concerning damage caused to an airplane owned by Plaintiff, holding that this Court had jurisdiction and that there was no error in the damages award and decision to award prejudgment interest.In the first appeal in this negligence case the Supreme Court remanded the case for a new trial on the limited issue of damages on the ground that the circuit court prejudicially erred in instructing the jury on damages. On remand, the court awarded Plaintiff $131,735 in damages, prejudgment interest, and costs. The Supreme Court affirmed, holding (1) this Court had appellate jurisdiction; (2) the circuit court did not err in the method it chose to calculate Plaintiff's damages; and (3) the circuit court did not err in awarding prejudgment interest. View "Wright v. Temple" on Justia Law

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The Supreme Court affirmed the judgment of the trial court in this action to foreclose a materialmen's lien to recover for material and labor Ed Suvada expended in renovating a cabin for George and Christine Muller, holding that their was no error.Suvada brought this action to foreclose his materialmen's lien on the Muller property and also alleged breach of contract. The Mullers counterclaimed, alleging breach of contract and fraud. A jury awarded Suvada damages on his materialmen's lien claim and in favor of the Mullers on both of their claims but awarded damages only on the breach of contract claim. The Supreme Court affirmed, holding that the circuit court did not err or abuse its discretion. View "Suvada v. Muller" on Justia Law

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In this action concerning a disputed agreement between between Kenneth and Rebecca Goens and Lynn VanSloten for the sale of an empty lot, the Supreme Court dismissed the appeal for lack of appellate jurisdiction under S.D. Codified Laws 15-26A-3, holding that the underlying interlocutory judgment was not a final judgment under S.D. Codified Laws 15-6-54(b) and was therefore not appealable.Kenneth delivered the purchase agreement at issue and VanSloten's earnest money check to FDT, LLC with the intention that FDT act as the closing agent for the property sale. When a dispute arose regarding the earnest money check and purchase agreement the Goenses filed a complaint against FDT and VanSloten. VanSloten asserted a counterclaim against the Goenses. The circuit court granted FDT's motion for summary judgment against the Goenses, but the order did not resolve the remaining claims or contain any certification under S.D. Codified Laws 15-6-54(b). The Goenses appealed. The Supreme Court dismissed the appeal, holding that because active claims remained in this action at the time of appeal and no Rule 54(b) certification was made, this Court lacked appellate jurisdiction under S.D. Codified Laws 15-26A-3. View "Goens v. FDT, LLC" on Justia Law