Thursday, November 21, 2024

Big Horn Sheep Covenant Enforced; remedy for breach of 1995 oral land contract denied

 

The SD Supreme Court handed down two decisions this morning:

 

1)    “no build” covenant for Big Horn Sheep enforced;

 

2)   Remedy for breach of 1995 oral contract regarding real property denied in 3-2 ruling.

 

Summaries follows:

 

SPRING CANYON PROPERTIES, LLC v. CAL SD, LLC, 2024 S.D. 68:  Owner of recently-acquired property located outside of Rapid City started construction of a fenced area for a garden, with construction of contained an “overhead truss” structure for anticipated “hail netting.” Owner of neighboring lot (and prior owner of lot in question) filed suit to enforce “restrictive no build covenant.”  The trial court granted an injunction requiring the removal of the “all overhead components of the building structure in the ‘No Build’ zone [and also] enjoin[ing Defendanst] from rebuilding or placing any new structure in the ‘No Build’ zone that exceeds 8’ in height as measured from ground level.” The SD Supreme Court affirmed the injunction, but also held that on remand the 8’ height prohibition was to be removed because the height restriction was beyond the relief requested and was not supported by the “no build covenant,” and was not mandated by “Pennington County Ordinance.”  This decision is unanimous (5-0), with opinion authored by Justice Myren.

NOTE: The “no build” covenant states that its provisions were created for “the express purpose of allowing the free movement of big horn sheep in [the] wilderness preserve and to preclude any new fencing of areas…”

 

A photo of the garden fence and truss structure was included in the Court’s opinion and I have copied it at the bottom of this e-mail message. 

 

JOHNSON v. JOHNSON, 2024 S.D. 69: Parents deeded property to Daughter in 1995 under oral agreement described as follows in

[Daughter] and her family could live rent-free in [an adjoining] home. The agreement also contemplated that [Daughter] would transfer the [deeded property] equally to her four siblings and herself once she satisfied the mortgage on the [newly-constructed] home [on the deeded property.]

In 2005, surviving mother confirmed in writing that this was the intention of deceased father and mother in 1995 when making the “oral contract” with Daughter.

Daughter brought partition suit in 2018 in regard to ownership of adjoining property.  Brother answered, “claim[ing the 1995 oral contract] could be enforced through specific performance and partition of the [deeded property] or, in the alternative, an award of damages.”

Trial Court granted summary judgment for Daughter and against brother based, inter alia, upon the 6 year statute of limitations found in  SDCL 15-2-13.

The SD Supreme Court affirmed.  This is a split decision (3-2).  The Court’s opinion is authored by Justice Salter. 

Justice DeVaney filed a dissenting opinion in regard to the application of the 6 year statute of limitations, taking issue with the majority’s ruling in regard to when Brother (and siblings) had notice of Daughter’s intent to breach the oral contract and when the cause of action “accrued.”  Justice Kern agrees with Justice DeVaney’s view.  

 

These decisions may be accessed at

 

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

 

Attached is a photo of the “garden fence” which is the subject of SPRING CANYON PROPERTIES, LLC v. CAL SD, LLC, 2024 S.D. 68, summarized above:

A wooden structure with a wire mesh

Description automatically generated with medium confidence