Thursday, June 3, 2021

open-door doctrine, certified question answered

 

The SD Supreme Court handed down two decisions this morning:

 

  1. Defendant loses to “open-door doctrine,” notwithstanding a change in the law;

 

  1. Certified question on insurance coverage answered with 3-2 ruling

 

Summaries follows:

 

STATE v. NOHAVA, 2021 S.D. 34:  The opening paragraph of the Court’s opinion nicely summarizes the result and holding in the lower court and on appeal:

 

[¶1.] After a confidential informant purchased methamphetamine from Coye Nohava during a controlled drug buy, a grand jury indicted Nohava on one count of distributing a controlled substance and one count of possession of a controlled substance. Nohava was convicted on both counts after a jury trial. The evidence at trial centered on the testimony of the confidential informant. Nohava appeals, asserting the circuit court abused its discretion by allowing the informant to testify about other act evidence after finding Nohava opened the door to such testimony. Nohava also contends the circuit court erred in denying his motion for judgment of acquittal.

 

This decision is unanimous (5-0), with Justice DeVaney authoring the Court’s opinion.  Chief Justice Jensen filed a brief concurring opinion in which he addresses the fact that the law has changed in regard to the “open-door doctrine” which is now more limited, stating in ¶ 36:

 

The evidence of [Defendant’s] assault of [the female confidential informant] may have violated this rule, but given the state of our open-door doctrine at the time of trial, there was no abuse of discretion.

 

SAPIENZA v. LIBERTY MUTUAL INSURANCE, 2021 S.D. 35:  This dispute revolves around the seemingly simple question as to whether or not damages incurred as a result of the insured’s compliance with a state court injunction constitutes compensable damages under the insured’s Homeowners Policy and the insured’s Personal Liability Policy.  The facts in (involving the new construction of a home and its impact on a neighbor’s home) trace back to 2014 and include litigation in South Dakota state court, with a prior opinion by the SD Supreme Court in 2018.  Thereafter the insureds “filed suit in federal district court against [their insurer] alleging a number of claims, including breach of contract based on [their insurer’s] failure to provide coverage for the costs the [insureds] incurred to tear down their newly constructed home.”  The Federal Court certified the issue (“Do the costs incurred by the [insureds] to comply with the injunction constitute covered ‘damages’ under the Policies such that Liberty Mutual must indemnify the [insureds] for these costs?”)  to the SD Supreme Court.  The case was orally argued in the SD Supreme Court before the Pandemic, on November 5, 2019.  Authorship of the Court’s opinion was re-assigned some 17 months later,  April 9, 2021.  Today’s decision answers the question in the affirmative, holding yes (there is insurance coverage for these damages).  The Court’s ruling is a 3-2 decision, with Justice DeVaney authoring the majority decision (by virtue of the re-assignment).  Justice Salter filed a dissenting opinion, as to which Chief Justice Jensen joins.

 

These decisions may be accessed at

 

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