Thursday, August 22, 2024

4 new decisions this morning

 

The SD Supreme Court handed down four decisions this morning, holding, inter alia

1)    Split decision (3/2) adverse to surviving Wife;

 

2)   Landowners secure reversal in pipeline dispute;

 

3)   UIM coverage found for employee;

 

4)   Full faith and Credit does not warrant dismissal of simultaneous divorce action filed in state court;

 

Summaries follows:

 

ESTATE OF SIMON, 2024 S.D. 47: Omitted spouse (Wife) filed this action seeking, “intestate share of [Husband’s] estate pursuant to SDCL 29A-2-301.”  The trial court denied relief, holding that Wife’s claim was barred by the “exception found in SDCL 29A-2-301(a)(3) [concluding] that [Husband] provided for [Wife] outside of the will with the intent that those transfers would be in lieu of any testamentary provision.”  In a split decision the SD Supreme Court affirmed.  The majority opinion, agreeing with the trial court, is authored by Chief Justice Jensen. 

Justice Kern filed a dissenting opinion, in which Justice Myren concurs.  The dissenting opinion states,

[¶59.] Because the record lacks any statements by [Husband] regarding the intent of his transfers to [Wife] and because his intent cannot be reasonably inferred from the amount of the transfers or other evidence, the Estate, as the proponent of the will, has failed to establish that it falls within the exception set forth in SDCL 29A-2-301(a)(3), and the circuit court erred as a matter of law in determining otherwise.

This case was orally argued on March 23, 2023 and decided some 17 months later, after “reassignment” to CJ Jensen.

 

STROM TRUST, et al. v. SCS CARBON TRANSPORT, LLC, 2024 S.D. 48: This case involves a consolidated appeal by aggrieved landowners, in regard to pipeline dispue.  The landowners are successful in securing a reversal. Details of the dispute, the holding in the lower courts and the ruling on appeal are set forth in the first 5 paragraphs of the decision, as follows: 

[¶1.] SCS Carbon Transport, LLC (SCS) is planning to develop a pipeline network to transport carbon dioxide (CO2) through South Dakota. Several landowners (Landowners) along the proposed route refused to allow SCS pre[1]condemnation survey access, which SCS claims is authorized by SDCL 21-35-31. Landowners sued in both the Third and Fifth Judicial Circuits, seeking declaratory and injunctive relief to prevent the surveys. These proceedings resulted in a consolidated appeal from six lawsuits filed by Landowners and one by SCS. Two cases were filed in the Third Circuit: CIV 22-64 (Strom) and CIV 22-129 (Deeg). Five cases were filed in the Fifth Circuit namely: CIV 22-14 (Helfenstein), CIV 22-47 (Braun), CIV 22-253 (Bossly), CIV 22-20 (Schumacher), and CIV 22-18 (Jordre). 

[¶2.] All cases except for Jordre—where SCS was the plaintiff and sought declaratory relief permitting survey access—involved similar claims challenging the constitutionality of SDCL 21-35-31 under the takings and due process clauses of the state and federal constitutions. Landowners also challenged SCS’s status as a common carrier and, by extension, its right to exercise eminent domain power. After limited discovery, SCS moved for and was granted summary judgment on all issues in the cases filed in both circuits. Landowners appeal. 

[¶3.] We reverse the circuit courts’ grants of summary judgment on the common carrier issues. SCS’s ability to conduct pre-condemnation surveys depends on whether it is a common carrier vested with the power of eminent domain. However, in this early phase of the litigation, the record does not demonstrate that SCS is holding itself out to the general public as transporting a commodity for hire. It is thus premature to conclude that SCS is a common carrier, especially where the record before us suggests that CO2 is being shipped and sequestered underground with no apparent productive use. In addition, the circuit courts abused their discretion in denying Landowners’ request for further discovery. The record demonstrates that SCS resisted Landowners’ efforts to obtain depositions and documents that are of fundamental importance to the issues in this case. Within the scope of SDCL 15-6-26, Landowners are entitled to conduct depositions and have access to documents relevant to SCS’s pricing terms and business model under conditions prescribed by the courts to preserve the confidentiality of the information. 

[¶4.] On remand, in the event SCS is determined to be a common carrier, we also analyze the scope and constitutionality of SDCL 21-35-31. Mindful of our mandate to interpret the statute according to its plain meaning, and to do so in a fashion that preserves its constitutionality where possible, we conclude that the circuit courts partially erred in their analyses of the types of surveys authorized by SDCL 21-35-31. We hold that—absent landowner consent—the statute, to be interpreted as constitutionally valid, authorizes only minimally invasive superficial inspections that, at most, cause minor soil disturbances. In addition, we interpret SDCL 21-35-31 as incorporating our state constitutional guarantee of a jury determination of damages that are caused by pre-condemnation surveys. Based on this interpretation, we conclude that the limited pre-condemnation surveys authorized by SDCL 21-35-31, as strictly interpreted herein, do not violate the federal or state constitutions. 

[¶5.] We reverse and remand for further proceedings consistent with this opinion.

This decision is unanimous (5-0), with opinion authored by Justice Kern.  Retired Circuit Judge Wipf Pfeifle sat on this case, in lieu of Justice DeVaney. 

 

ACUITY v. TERRA-TEK, LLC & WABA, 2024 S.D. 49: UIM insurer denied coverage for claim, asserting that employees were not occupying a “covered auto” at the time of the accident. The trial court found coverage existed, looking at the Declarations Page and Endorsement which identified employee as an additional insured, without regard to whether employee was in a “covered auto” at the time of the accident.  This decision is unanimous (5-0) with opinion authored by Justice DeVaney. 

TORGERSON v. TORGERSON, 2024 S.D. 50: Wife, an enrolled member of the Sisseton Wahpeton Oyate Tribe, filed for divorce against Husband in tribal court.  Thereafter, Husband filed suit for divorce in state court.  State trial court found that both tribal court and state court had jurisdiction, but that the tribal court was first in time and that Full Faith and Credit required dismissal of the state court action. The SD Supreme Court reversed and remanded, applying SD’s “comity” statute, SDCL 1-1-25.  The Court’s opinion is authored by Justice Kern.  Justices Salter and Myren filed separate opinions, dissenting in part.  Justice DeVaney concurs in the views expressed by Justice Salter. 

These decisions may be accessed at

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