Thursday, October 27, 2022

Three Decisions Released by SD Supreme Court today

 

The SD Supreme Court handed down three decisions this morning:

 

  1. Drainage ditch cleanout upheld;

 

  1. Direct action against liability insurer upheld;

 

  1. Divorce issues resolved.

 

Summaries follows:

 

LITTLE v. HANSON COUNTY DRAINAGE BOARD, 2022 S.D. 63:  This litigation concerns an application for the clean out of a pre-existing drainage ditch located in a township road right-of-way.  The clean out “would return [the ditch] to its pre-existing, natural state.”  The opening paragraph of the opinion provides the following summary:

 

[¶1.] The Littles appealed to the circuit court a decision by the Hanson County Drainage Board (Board) granting a drainage permit to James F. Paulson.  The permit application sought to clean out a pre-existing ditch. The Littles claim the Board failed to follow the approval procedures outlined in its ordinances and South Dakota statutes. The circuit court affirmed the Board’s decision. The Littles now appeal to this Court, raising the additional issues that the circuit court failed to admit relevant testimony and failed to take judicial notice of a prior proceeding involving the parties. We affirm.

 

This decision is unanimous (5-0), with opinion authored by Justice Myren. 

 

KAISER TRUCKING, INC. v. LIBERTY MUTUAL, 2022 S.D. 64: Plaintiffs brought suit against driver of motor vehicle for damages arising out of accident.  Driver defaulted.  Judgments were returned “unsatisfied.”  Plaintiffs next filed this direct action against the driver’s Liability Insurer.  The trial court dismissed the action because Plaintiffs did not provide notice to the Liability Insurer as required under the Liability Insurer’s policy.  The SD Supreme Court reversed, holding that Plaintiff was entitled to proceed in accordance with SDCL 58-23-1 when an effort to execute on the judgment is returned unsatisfied.  This “direct action” statute does not impose a pleading requirement that Plaintiffs must show compliance with “conditions precedent,” in this case meaning compliance with the policy’s notice provision.  This decision is unanimous, with the Court’s opinion authored by Justice Kern.

 

DUNHAM v. SABERS, 2022 S.D. 65: This divorce action required the trial court to resolve multiple issues, following a 5 day trial: custody/visitation, division of property, child support, grounds for divorce, attorney fees, etc.  Both sides appeal.  H asserted 13 issues on appeal.  W (attorney, now circuit judge) asserted 4 issues on appeal.  The matter was heard by a retired judge. 

 

The SD Supreme Court affirmed all aspects of the lower court’s ruling, except for in the following:

 

The trial court’s order that the parties are required “to exchange tax returns every year,” following the divorce was in error. On this issue, the Court stated:

 

Before sua sponte ordering the production of the parties’ tax returns post-divorce, the court should have sought input from the parties on the relevant considerations for a protective order under SDCL 15-6-26(c) and the need for a protective order for some or all of the information contained in the tax returns.            

 

The trial court abused its discretion in excluding “buy out” funds related to a law building and the law firm of W’s prior association.  On this issue, the Court stated:

 

Because the circuit court’s findings were insufficient to support           its conclusion that the buy-out funds should be excluded from the marital estate, the  court abused its discretion in setting aside the property as non-marital. On remand, we direct the circuit court to apply the appropriate factors.

 

There is a plethora of additional issues and sub-issues which are addressed in this 36 page opinion.  Some of the additional issues include:

 

trial court’s upward deviation in assessing child support against H affirmed;

 

refusal to require counseling for custody/visitation upheld;

 

minor child is permitted “to choose the time, location, and length of the visits” with non-custodial H;

 

trial court did not error by refusing to grant W a divorce on the ground of extreme cruelty;

 

trial court’s award of $50,000 in attorney fees to wife upheld notwithstanding objections by both H (as to the imposition of the award) and W (as to inadequacy of the award). 

 

The SD Supreme Court’s decision is unanimous (5-0) with opinion authored by Chief Justice Jensen.  Circuit Court Judges Day and Connolly sat on this case, in lieu of Justices Salter and DeVaney.

 

These decisions may be accessed at

 

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