Thursday, November 12, 2020

Dissolution of Buffalo Chip as SD Municipality Affirmed

 

The SD Supreme Court handed one decision this morning, holding inter alia

 

  1. Dissolution of Buffalo Chip as a SD Municipality affirmed

 

Summary follows:

 

STATE v. BUFFALO CHIP, 2020 S.D. 63:

 

At the request of the State, acting through the Attorney General, the lower court dissolved the municipal incorporation of Buffalo Chip.   In making this holding, the lower court found that the State was authorized to seek dissolution and the lower court also held that Buffalo Chip failed to satisfy the residency requirements of SDCL 9-3-1 which, at the relevant time, provided, “No municipality shall be incorporated which contains less than 100 legal residents or less than 30 voters.” 

 

Buffalo Chip appealed.  The SD Supreme Court affirmed the lower court in today’s decision. 

 

As to the 1st issue (authority of the state to challenge), the Court’s decision is unanimous with opinion authored by Justice Kern.  The Court holds, “We conclude that the circuit court properly allowed the State to institute this action against Buffalo Chip under SDCL 21-28-2(3) and SDCL 9-3-20.”

 

As to the 2nd issue (residency requirements), the Court’s decision came down to a 3-1-1 ruling, with Chief Justice Gilbertson being the lone dissenter.   The opinion of the Court is authored by Justice DeVaney, with Justices Salter and Jensen in full agreement. Justice Kern filed a special concurring opinion.  Chief Justice Gilbertson would reverse in favor of Buffalo Chip on the basis that incorporation as a municipality could be achieved under the statute because there were 30 or more voters, even though Buffalo Chip lacked 100 residents.

 

NOTE:  The statute has subsequently been amended to more restrictive requirements which currently include, “A municipality may not be incorporated unless it contains as least one hundred legal residents and at least forty-five registered voters.”

 

This decision may be accessed at

 

http://ujs.sd.gov/Supreme_Court/opinions.aspx .