Justia Contracts Opinion Summaries

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

The Supreme Court affirmed the judgment of the circuit court determining that J. Clancy, Inc. had performed under a contract for renovations of a Spearfish hotel and that Khan Comfort, LLC had breached the contract by failing timely to make payments, holding that there was no error.J. Clancy brought this action alleging claims for nonpayment under a series of implied-in-fact contracts. Following a trial, the circuit court awarded Khan a judgment against J. Clancy for overpayment. The Supreme Court reversed, concluding that the parties had entered into an express contract for the renovations. After a remand, the circuit court found that J. Clancy had fully performed under the terms of the contract and that Khan had breached the contract. The Supreme Court affirmed, holding (1) the circuit court's actions on remand were within the parameters of its decision-making authority; (2) the circuit court did not err in finding on remand that J. Clancy had fully performed; and (3) the record supported the court's findings of fact on damages. View "J. Clancy, Inc. v. Khan Comfort, LLC" on Justia Law

The Supreme Court reversed the judgment of the circuit court in favor of Liberty Mutual Fire Insurance Company in this insurance dispute, holding that the circuit court improperly dismissed the complaint for failure to state a claim upon which relief can be granted.An agent of Kaiser Trucking was in an automobile accident with Liberty Mutual's insured. The circuit court granted default judgment for Kaiser Trucking and its agent. After the judgments were returned unsatisfied, Kaiser and its agent brought this action against Liberty Mutual seeking indemnification of the judgments against its insured. Liberty Mutual filed a motion to dismiss under S.D. Codified Laws 15-6-12(b)(5), arguing that Plaintiffs failed to plead a condition precedent to coverage under the policy. The circuit court agreed and dismissed the complaint. The Supreme Court reversed, holding that Kaiser Trucking, Inc. was not required to plea satisfaction of conditions precedent in the relevant insurance policy sufficiently to state a claim upon which relief could be granted and avoid a Rule 12(b)(5) dismissal of its complaint. View "Kaiser Trucking, Inc. v. Liberty Mutual Fire Insurance Co." on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the circuit court in this action brought by Plaintiff to determine custody, child support, and shared parenting of the parties' child and on Defendant's counterclaim for breach of an implied contract and unjust enrichment, holding that the circuit court erred in part.In his counterclaim, Defendant argued that the parties had impliedly agreed that they would jointly own the marital home and that he would receive equity in the home acquired through his financial contributions toward the home mortgage. In response, Plaintiff claimed that she owned the home and that Defendant simply paid her rent while living there. The circuit court denied Defendant's claims, concluded that the parties' relationship was that of a landlord and tenant and awarded back rent, and determined shared child support and parenting issues. The Supreme Court reversed in part, holding that the circuit court (1) erred when it awarded Plaintiff back rent; (2) erred in determining the amount of back child support due; and (3) did not otherwise err or abuse its discretion. View "Murphey v. Pearson" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the circuit court denying the cross-motions for summary judgment filed by the parties in this case, holding that summary judgment should have been granted to Rema Kolda as a matter of law on counts one, two, and four.DT-Trak Consulting, Inc., a medical consulting firm and independent contractor, sued Kolda, its former employee, for alleged violations of multiple provisions of a non-complete agreement. Kolda counterclaimed for barratry. Thereafter, the parties filed cross-motions for summary judgment, which the circuit court denied. The Supreme Court reversed in part, holding (1) Kolda was not in violation of the non-compete provision of the agreement, and summary judgment should have been granted on this count; and (2) Kolda was entitled to summary judgment on count four, which alleged the existence of a trade secret, and count one, which alleged the existence of a trade secret in addition to proprietary information and "confidential information." View "Dt-Trak Consulting, Inc. v. Kolda" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the circuit court determining that Denise Schipke-Smeenk was not entitled to specific performance of an agreement she made with her husband that neither party would revoke their specific wills without the other's consent, holding that the circuit court erred in determining that the claim was not timely or properly presented.Denise and Neil Smeenk executed mutual wills in 2017 and the agreement at issue. In 2019, Neil executed a new will without Denise's consent. After Neil died, the circuit court appointed Denise as personal representative of Neil's estate and ordered the 2019 will to be probated. The circuit court denied Denise's motion seeking specific performance of the agreement, determining that the motion was not properly presented as a creditor claim and was untimely and that Denise was not entitled to specific performance. The Supreme Court reversed in part, holding that the circuit court (1) erred in determining that the claim was not timely and properly presented; but (2) correctly ruled that Denise was not entitled to specific performance. View "In re Estate of Smeenk" on Justia Law

The Supreme Court reversed the judgment of the circuit court against Northern Rental Corporation and Steve Willis in this action stemming from the alleged breach of a lease agreement, holding that the circuit court erred in determining damages.In 2019, Northern and Willis defaulted on their lease agreement with Peska Properties, Inc. Peska Properties subsequently entered into a lease with Mills Aftermarket Accessories, Inc. to fill Willis/Northern's remaining lease term plus an additional term. Thereafter, Peska Properties brought this action against Willis/Northern requesting unpaid rent, repayment of Northern's build-out loan, payment of Mills's build-out costs, and attorney fees. The circuit court determined that Willis/Northern owed Peska Properties $68,730. The Supreme Court reversed, holding that the circuit court's award was an error of law because it failed to meet the goal of a damage award. On remand, the court was directed to recalculate the build-out allowance damages. View "Peska Properties, Inc. v. Northern Rental Corp." on Justia Law

Robinson purchased grain bin monitoring equipment for his Spink County farm, financed through an Equipment Lease Agreement with Northland. Northland’s place of business is in Minnesota. The Lease included a forum selection clause requiring any suit filed by either party to be filed in Stearns County, Minnesota. After Robinson stopped making payments, Northland filed suit in Spink County, South Dakota, where Robinson resided. Robinson objected, claiming that he intended to pursue claims against Northland and others in Minnesota for the defective equipment. In granting Northland summary judgment., the circuit court treated Robinson’s objection as a question of venue and determined that Robinson failed to make a timely objection in Spink County.The South Dakota Supreme Court reversed and remanded, ordering the dismissal of the Spink County action. The court applied Minnesota law consistent with the Lease's choice of law provision and stated that the statutory venue provisions have no application to the question of the enforceability of the contractual forum selection clause. Robinson’s actions in responding to the suit do not support a waiver determination under the Rules of Civil Procedure. The Lease does not indicate that the forum selection clause was intended to solely benefit Northland, or that the mandatory language requiring “any suit by either of the parties” could be unilaterally waived. View "Northland Captial v. Robinson" on Justia Law

In this appeal concerning the interpretation of a right of first refusal entered into by Dennis Powers and his father, Jerome Powers, the Supreme Court affirmed the decision of the circuit court granting summary judgment and dismissing all claims brought against Dennis and Prevailing Wind Park, LLC, holding that there was no error.After Dennis entered into a wind energy lease and easement agreement with Prevailing Wind, Jerome brought this lawsuit alleging breach of contract and seeking declaratory relief and specific performance. Dennis joined Prevailing Wind's motion for summary judgment asserting that the right of first refusal at issue was not triggered and, alternatively, that it was void as an unreasonable restraint on alienation. The circuit court granted the summary judgment motion. The Supreme Court affirmed, holding that the circuit court (1) properly entered summary judgment in favor of Dennis even when he did not join Prevailing Wind's statement of undisputed material facts or file his own; and (2) correctly granted Prevailing Wind's motion for summary judgment on all claims. View "Powers v. Powers" on Justia Law

The Supreme Court reversed the decision of the circuit court determining that Julie Niemitalo released her right to bring this post-divorce civil suit against Richard Seidel for conduct that occurred while the parties were separated and in the process of obtaining a divorce, holding that the language of the agreement did not preclude Julie's civil suit against Richard.Julie asserted that while the divorce action was pending Richard attacked her, bound her, and raped her. A jury found Richard guilty of all offenses. In Julie's pending civil suit she brought claims for intentional infliction of emotional distress, negligent infliction of emotional distress, false imprisonment, and civil battery. The circuit court granted summary judgment for Richard, determining that a divorce agreement between the parties was unambiguous and interpreted it to be a broad release and full and final settlement of all claims. The Supreme Court reversed, (1) the language in the agreement did not preclude Julie's lawsuit; and (2) res judicata did not apply. View "Niemitalo v. Seidel" on Justia Law