Thursday, June 25, 2020

$45 Million Bad Faith Verdict Reversed, and 3 other decisions by SD Supreme Court today


The SD Supreme Court handed down four decisions this morning, holding inter alia
1)    State has no right of appeal from dismissal of Counts;

2)   Engineer loses claim against City for work as employee;

3)   State agencies are immune from EB5 litigation;

4)   $45 million bad faith verdict reversed and remanded

Summaries follow:

STATE v. STEFFENSEN, 2020 S.D. 36:  This decision is adverse to the State, holding that the state has no right of appeal in regard to the dismissal of counts in an indictment/information.   The disposition in this case is nicely summarized in ¶1:
The State filed a separate notice of appeal as to each of three jointly indicted defendants from a trial court order dismissing certain counts of the indictment against them. We consolidate the three appeals for disposition in this decision. Because the State has no right of appeal from the dismissal of counts of an indictment or information, the appeals are dismissed.
This decision is unanimous, with opinion by Justice Kern.  (This decision is handed down less than 2 months after submitted to the court on April 30, 2020.)

KOOPMAN v. CITY OF EDGEMONT, 2020 S.D. 37:  This suit originated in small claims court as an action by an engineer against the City of Edgemont for benefits due him as an employee.  The trial court awarded engineer $11,372.28 plus interest of $4,651.87, but denied him attorney fees. Both sides appealed.  The SD Supreme Court ruled for the City on the appeal, reversing the cash award.  The SD Supreme Court also affirmed the denial of attorney fees since the engineer was defeated on his claim for wages.  NOTE:  The trial court was required to wrestle with the problematic issue that SDCL 60-11-24 only authorized attorney fees on wage claims removed for a jury trial under SDCL 15-39-59, which had been repealed – an issue removed on appeal because of the SD Supreme Court’s ruling for the City on the underlying wage claim.
This decision is unanimous, with opinion authored by Justice Jensen.  (This decision is handed down about 2 months after submitted to the court on April 20, 2020.)

LP6 CLAIMANTS v. S.D. DEPT OF TOURISM, 2020 S.D. 38:  This case is neatly summarized in ¶1:
A group of investors in the EB5 immigrant investment program sued various agencies that implemented the program in South Dakota, claiming fraud in procuring their investments, which were lost when the project went bankrupt. The circuit court granted a motion to dismiss by the state agencies involved based on sovereign immunity. The investors appeal the circuit court’s decision, and we affirm.
This decision is unanimous with opinion authored by Chief Justice Gilbertson.  Retired Justice Wilbur sat on this case, in lieu of Justice DeVaney.  .  (This decision is handed down about 2 months after submitted to the court on April 21, 2020.)

JOHNSON v. UPS, 2020 S.D. 39:  The SD Supreme Court reverses and remands jury verdict for plaintiff on bad faith claim in the amount of $500,000 for bad faith, $2,750 on "conversion" claim, and $45 million in punitive damages.  This bad faith claim arose in the contest of work comp proceeding.  The concluding paragraph of the Court’s opinion, ¶ 57 states:
This decision is unanimous (5-0) with opinion by Justice Salter.  Circuit Judge Means sat on this case which was presented to the Court prior to the appointment of Justice DeVaney. 

These decisions may be accessed at