Thursday, April 30, 2020

SD Supreme Court, 2 new decisions April 30


The SD Supreme Court handed down two decisions this morning:

  1. Dispute over proposed boat storage/sales facility in Lake County;

  1. Appeal dismissed in dispute over buy-sell agreements related to hog confinement facilities in McCook County

Summaries follows:

DUNHAM v. LAKE CTY. COMMISSION, 2020 S.D. 23: Neighboring lot owner contested the application for a variance as to setback and size restrictions for the construction of a proposed facility for the storage and sale of boats.  Lake County Board of Adjustment granted variance and issued a Conditional Use Permit.  Objecting neighbor sought relief in Circuit Court through petition for Writ of Certiorari.  Trial court denied relief.  The SD Supreme Court reversed and remanded, stating in ¶¶ 20-21:

[T]he Board failed to consider the second prong requiring the existence of special conditions to grant a variance. The Board made a terse finding that special conditions exist on the property but failed to meaningfully address the special conditions required by Section 505 for the Board to have authority to grant a variance. More specifically, the Board made no determination that because of a particular feature of the property at the time the Ordinance was enacted, or because of some “extraordinary and exceptional” situation on the property, a variance was necessary. The Board also failed to consider whether the denial of the variance to build a facility exceeding the setback requirements would create “peculiar and exceptional practical difficulties” or an “exceptional and undue hardship” on Hodne Homes. The Board exceeded its authority by failing “to follow the prescribed test” within the Ordinance. Hines, 2004 S.D. 13, ¶ 13, 657 N.W.2d at 234. 

For this reason, we reverse the circuit court’s denial of certiorari relief to Dunham on the Board’s decision granting a variance to Hodne Homes.

This decision is unanimous with opinion authored by Justice Jensen.

HULS v. MEYER, 2020 S.D. 24:  This attempted appeal is dismissed because:

The [trial] court’s order granting summary judgment did not resolve all of the parties’ claims, and it was not certified as a final decision prior to the Appellants’ appeal.

The underlying dispute relates to:

[An action by] Appellants [who] are part owners of four LLCs [for] specific enforcement of unexecuted buy-sell agreements against two other members.

[Plaintiffs and Defendants joined together] to form four limited liability companies (LLCs) in 2006 and 2007. The entities include: Magnum 43, LLC; Rawhide, LLC; Remington, LLC; and Windmill Ridge, LLC. Under the parties’ business plan, the LLCs would construct and operate hog confinement facilities on property located in McCook County. Each LLC owns one facility that is leased to the Meyers who operate it. Three of the four LLCs feature an even equity distribution between the Meyers and the individual investors. 


The Court considered this case on the briefs on March 17, 2020, just over a month ago.  The Court’s ruling is unanimous with opinion authored by Justice Salter.  [language quoted above is taken from ¶¶ 1-2 of opinion.]

These decisions may be accessed at