The SD Supreme Court handed down one decision this morning: Ranch land lease dispute reversed and remanded;
Summary follows:
KNECHT v. EVRIDGE, 2020 S.D. 9: This litigation involves two 3 year lease
agreements for 3070 acres of ranch land in Perkins County. This land adjoins national grass land
encompassed in Grand River National Grassland and the lease referenced the possibility
of the lessee obtaining grazing rights in the national grassland area. The evolution of this dispute, as described
in ¶ 1 of the Court’s opinion is as follows:
Following a
series of disputes between the parties, the [Lessors] refused [Lessee’s] lease
payments for the second year. [Lessee] filed suit, seeking a declaratory judgment and
alleging breach of contract, negligent misrepresentation, deceit, and fraud.
The [Lessors] counterclaimed seeking
damages under the agreements.
The matter, as resolved at the trial court level is described
in ¶ 2 of the Court’s opinion as follows:
The parties
stipulated to a preliminary court trial to determine their rights under the
lease agreements and a subsequent jury trial to resolve the remaining factual
issues. The court found one lease valid and binding, and the other lease valid
but voidable. A jury later awarded damages to both parties.
Appeals were perfected as follows:
The [Lessors]
appeal, alleging the circuit court abused its discretion in its evidentiary
rulings and in its jury instructions. [Lessee] also appeals and argues the
circuit court erred when it found the second lease voidable instead of void and
dismissed his fraud and deceit claims.
The SD Supreme Court consolidated the appeals and rendered the
following disposition, as articulated in ¶ 61:
We
therefore reverse this decision and remand the case for a new trial on [Lessee’s]
deceit claim consistent with this opinion. We affirm all other issues.
The Court’s decision is unanimous (5-0), with opinion authored
by Justice Salter. Retired Justice Severson sat on this case which was orally
argued on March 26, 2019.
This decision may be accessed at
