Thursday, August 25, 2022

Three Decisions today by SD Supreme Court

 

The SD Supreme Court handed down three decisions this morning:

 

1)    Certified Questions from federal judge (SD Division of Insurance matter);

 

2)   Exclusivity of Work Comp;

 

3)   Trust amendment litigation

 

Summaries follows:

 

DEITER v. XL SPECIALTY INS. CO., 2022 S.D. 51: This proceeding arose in the SD Supreme Court with the certification of two questions from SD Federal District Court, Honorable Roberto A. Lange.  The underlying efforts in this litigation involve the SD Division of Insurance’s effort, as a “liquidator,” to deal with an insolvent insurer.  This particular lawsuit was filed in state court and removed to federal court.  The Federal Court certified two questions to the SD Supreme Court.  This decision answers 1 question, but declines to answer the 2nd question because it would involve fact-finding.  The gist of the questions and the result in the SD Supreme Court may be ascertained by reading the 1st and last two paragraphs of the Court’s opinion:

 

[¶1.] This matter is before us as two certified questions of law from the United States District Court for the District of South Dakota, asking whether SDCL 58-29B-56 provides a state insurance liquidator an additional 180 days to provide notice of a claim under a claims-made professional liability policy. We hold that it does.

 

  *   *   *  

[¶32.] While we may “answer questions of law certified to [this Court] by . . . the United States district court,” we cannot answer questions of fact. SDCL 15-24A-1. We therefore cannot extend our authority to the second portion of the certified question, which asks whether the Liquidator’s November 1, 2018 notice of claim was timely and triggered coverage under the policy. Beyond this, the parties’ submissions suggest that questions remain as to whether additional, more detailed allegations described by the Liquidator in April and October of 2019 would relate back to the November 1, 2018 notice because they describe “interrelated wrongful acts.”

 

Conclusion

 

[¶33.] We answer the first sentence of the certified question in the affirmative and decline to address the second part of the question.

 

The Court’s decision is unanimous (5-0), with opinion authored by Justice Salter.  Circuit Judge Craig Pfeifle sat on this case, in lieu of Justice DeVaney.

 

 

RIES v. JM CUSTOM HOMES, LLC, 2022 S.D. 52: Employee of Sub-contractor brought negligence claim in state court directly against the General Contractor. The trial court granted summary judgment for General Contractor on the basis of statutory immunity, as provided by SD's work comp provision, SDCL 62-3-10.  The SD Supreme Court affirmed in a 4-1 ruling.  The Court’s opinion is authored by Justice Myren.

 

Chief Justice Jensen filed a dissenting opinion, stating:

 

[Employer] failed to make the necessary showing that it is an ‘employer’ entitled to immunity under the exclusive remedy provisions of the workers’ compensation statutes…

 

[Employer] failed to present any facts in support of its statement of material facts showing that it paid [Plaintiff] for any services he performed or that it is an employer entitled to claim immunity as provided in the exclusive remedy statute in SDCL 62-3-2. Instead, [Employer] presented facts showing that [Plaintiff’s Employer] was a subcontractor of [Employer] and that “[Plaintiff] was an employee of [subcontractor].”

 

HICKEY LIVING TRUST, 2022 S.D. 53:  This litigation evolved over an effort to amend a trust, with facts and background not well-suited for a simple description.  In lieu thereof, I will reproduce the opening paragraph of the Court’s opinion which describes the litigation, the result at the trial level and the result on appeal, as follows:

 

[¶1.] Bradley Hickey filed a petition challenging the validity of an amendment to the Shirley A. Hickey Trust (Trust). Nearly a year later, Kristina Lippert and Darren Hickey filed a motion to intervene in the petition. The circuit court denied the motion to intervene, finding that the motion was untimely under SDCL 15-6-24(a) because Kristina and Darren had failed to timely challenge the validity of the Trust as required by SDCL 55-4-57(a). Kristina and Darren filed a motion for clarification and reconsideration, requesting the court to reconsider the denial of the motion to intervene and to clarify their ability to participate in discovery and at trial. The circuit court denied the motion for reconsideration and determined Kristina and Darren could not participate in the trial through the presentation of evidence and the examination of witnesses. Kristina and Darren appeal the denial of their motion to intervene and the denial of their motion for clarification and reconsideration. We reverse, vacate a portion of the order denying the motion for clarification and reconsideration, and remand for further proceedings.

 

This decision is unanimous (5-0) with opinion authored by Chief Justice Jensen.

 

These decisions may be accessed at

 

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