Arcon Construction Co. v. South Dakota Cement Plant

349 N.W.2d 407, 38 U.C.C. Rep. Serv. (West) 1481, 1984 S.D. LEXIS 295
CourtSouth Dakota Supreme Court
DecidedMay 2, 1984
Docket14139, 14140, 14147 and 14148
StatusPublished
Cited by61 cases

This text of 349 N.W.2d 407 (Arcon Construction Co. v. South Dakota Cement Plant) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arcon Construction Co. v. South Dakota Cement Plant, 349 N.W.2d 407, 38 U.C.C. Rep. Serv. (West) 1481, 1984 S.D. LEXIS 295 (S.D. 1984).

Opinions

DUNN, Justice

(on reassignment).

The South Dakota Cement Plant and the South Dakota Cement Plant Commission (referred to collectively as “the cement plant”) appeal a judgment entered against them for their breach of two contracts for the sale of cement to Arcon Construction Co., Inc. (Arcon). We affirm in part, reverse in part, and remand.

The first contract at issue here involved the sale of cement to Arcon for a project on Interstate 29 north of Watertown, South Dakota. The other contract involved the sale of cement for Arcon’s paving project on Highway 281 near Aberdeen, South Dakota. Both contracts called for the delivery of cement during construction year 1978. However, due to a severe cement shortage in 1978, the cement plant failed to deliver the cement as called for under the contracts. As a result, Arcon was not able to perform work on the projects until the 1979 and 1980 construction seasons.

Arcon commenced its action for breach of contract on April 17, 1980; the cement plant counterclaimed for damages caused by Arcon’s failure to use certain amounts of cement which were delivered to Arcon. A jury trial began on October 6, 1982. After hearing the evidence and deliberating for eight days, the jury returned a verdict for Arcon in the amount of $1,175,974.00, and a verdict for the cement plant in the amount of $89,089.00 on its counterclaim.

Numerous issues are raised by the parties in this appeal, including the following: 1) Is Arcon’s lawsuit barred by the principle of sovereign immunity? 2) Is Arcon’s lawsuit barred by the running of the statute of limitations? 3) Did the trial court properly instruct the jury as to the cement plant’s contractual and statutory defenses? 4) Did the trial court properly instruct the jury as to the proper measure of damages for contractor-owned idle equipment? 5) Did the trial court abuse its discretion when it taxed costs against the cement plant? 6) Is Arcon entitled to prejudgment [410]*410interest on the damages awarded by the jury?

I

The threshold question in this appeal is whether the doctrine of sovereign immunity extends to the cement plant. Article III, section 27 of the South Dakota Constitution provides: “The Legislature shall direct by law in what manner and in what courts suits may be brought against the state.” Accordingly, we have consistently held that it is the exclusive province of the legislature and not the courts to abrogate or limit the doctrine of sovereign immunity. In the absence of an express statutory waiver, we strictly adhere to this constitutionally mandated doctrine. Kringen v. Shea, 333 N.W.2d 445 (S.D.1983); Merrill v. Birhanzel, 310 N.W.2d 522 (S.D.1981); High-Grade Oil Co., Inc. v. Sommer, 295 N.W.2d 736 (S.D.1980); Arms v. Minnehaha County, 69 S.D. 164, 7 N.W.2d 722 (1943).

The cement plant is clearly an arm of the state. Article XIII, section 10 of the South Dakota Constitution declares that the manufacture, distribution, and sale of cement and cement products is a function of state government. Not only is such activity for a public purpose, Eakin v. South Dakota State Cement Commission, 44 S.D. 268, 183 N.W. 651 (1921); In re Opinion of the Judges, 43 S.D. 648, 180 N.W. 957 (1920), but, when this cause of action arose in 1978, SDCL 5-17-2.1 specifically provided: “The state cement commission and the state cement plant under its control shall comprise a principal department of state government.”

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Bluebook (online)
349 N.W.2d 407, 38 U.C.C. Rep. Serv. (West) 1481, 1984 S.D. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arcon-construction-co-v-south-dakota-cement-plant-sd-1984.