Hood v. Straatmeyer

2025 S.D. 12
CourtSouth Dakota Supreme Court
DecidedMarch 5, 2025
Docket30180
StatusPublished

This text of 2025 S.D. 12 (Hood v. Straatmeyer) 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
Hood v. Straatmeyer, 2025 S.D. 12 (S.D. 2025).

Opinion

#30180-a-SPM 2025 S.D. 12

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

****

ROBERT and MELISSA HOOD, THOMAS and PATRICIA DONOVAN, BERNARD and MARIA JUNG, WILLIAM and JANICE PRICE, JAMES and KAY FENENGA, LARRY and DARLENE BAILLY, GREG and DEB PETERS, MARK and KITTY GUSTAF, and RODNEY and GINA BROADWIRE, Plaintiffs and Appellants,

v.

CLYDE STRAATMEYER and NANCY STRAATMEYER, Defendants and Appellees.

APPEAL FROM THE CIRCUIT COURT OF THE FOURTH JUDICIAL CIRCUIT MEADE COUNTY, SOUTH DAKOTA

THE HONORABLE KEVIN KRULL Judge

COURTNEY R. CLAYBORNE of Clayborne, Loos & Sabers, LLP Rapid City, South Dakota Attorneys for plaintiffs and appellants.

TALBOT J. WIECZOREK KEELY M. KLEVEN of Gunderson, Palmer, Nelson & Ashmore, LLP Rapid City, South Dakota Attorneys for defendants and appellees.

ARGUED NOVEMBER 8, 2023 OPINION FILED 03/05/25 #30180

MYREN, Justice

[¶1.] Clyde and Nancy Straatmeyer bought a lot within a subdivision

subject to a restrictive covenant. Their neighbors sued to enjoin them from

constructing a house and a large three-car garage. The Straatmeyers

counterclaimed, seeking an order declaring the covenant void. After a bench trial,

the circuit court declared the covenant null and void. We affirm.

Factual and Procedural History

[¶2.] Shadowland Ranch is a subdivision with multiple lots and several

different lot owners. The subdivision is subject to a restrictive covenant from 1976

that provides, in part:

A. There shall be only one single-family dwelling per lot with no larger than a three-car garage. B. The main level of each dwelling constructed shall be a minimum of Twelve Hundred (1,200) square feet. No trailers or modulars. C. The lot shall be used for residential purposes only, and lot owners shall conduct no business activities which shall require extra parking facilities or which shall result in any materials being stored outside any dwelling or which shall in any other way interfere with the peaceful enjoyment of the premises by other lot owners. D. Further subdivisions of any lot shall be prohibited. ... F. The outside appearance of the house being constructed on any lot must be fully completed within one (1) year after the beginning of construction. ... H. No building shall be constructed so that any part of said building is within forty (40) feet of the boundary of said lot.

The covenant was filed with the Meade County Register of Deeds.

[¶3.] In autumn of 2020, the owner of Lot 6 of the subdivision successfully

applied to the City of Summerset to subdivide Lot 6 into Lot 6A and 6B. Following

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the subdivision of Lot 6, the Straatmeyers purchased Lot 6B. The Straatmeyers

hired a contractor who began the foundation for a home with an attached three-car

garage that could contain a recreational vehicle (RV). Their neighbors sent them a

letter that said the project violated the covenant. Ultimately, 18 of their neighbors

filed suit seeking a declaratory judgment that the covenant was “valid and

applicable and to further prevent the proposed construction contemplated by [the

Straatmeyers].” The neighbors sought (1) an order declaring the Straatmeyers’

subdivision was a violation of the restrictive covenant, (2) an order declaring the

Straatmeyers’ construction was a violation of the restrictive covenant, (3) an order

directing Straatmeyers to remove the construction from their lot, and (4) costs and

attorney fees. 1

[¶4.] The Straatmeyers answered the complaint and raised various

affirmative defenses (including waiver/estoppel, laches, and unclean hands). They

also asserted a counterclaim that the Plaintiffs had “allowed to exist for a number of

years activity within the subdivision that would constitute a violation of the

covenants.” They requested a declaratory judgment that the covenant “should be

declared null and void as selective enforcement of the covenants would be

inequitable.” Alternatively, if the circuit court determined that the covenant was

1. The circuit court found that the Plaintiffs failed to timely object to the division of Lot 6 into Lot 6A and 6B at the time it was subdivided and then determined there was “no legal remedy by which Plaintiffs can seek to un- subdivide property that was divided and sold to two separate owners.” The court determined that the challenge to the subdivision was an improper collateral attack on the “quasi-judicial proceeding undertaken by the City of Summerset.” Plaintiffs have not challenged this determination on appeal. -2- #30180

valid, they requested the circuit court to order all Plaintiffs to bring their properties

into compliance with the covenant.

[¶5.] The case proceeded to a bench trial at which seven witnesses testified.

In its decision following the hearing, the circuit court recognized that “[e]quitable

principles govern the enforcement of building restrictions.” The circuit court

concluded it would be inequitable to enforce the covenant because it had never been

previously enforced despite numerous violations. It declared the covenant null and

void and entered findings, conclusions, and a judgment to that effect. The Plaintiffs

appeal.

Decision

1. Whether the circuit court erred in its interpretations of the covenant’s terms. [¶6.] “A covenant is a contract between the governing authority and

individual lot owners.” Countryside S. Homeowners Ass’n, Inc. v. Nedved, 2007 S.D.

70, ¶ 11, 737 N.W.2d 280, 283 (citation omitted). “It ‘represents a meeting of the

minds and results in a relationship that is not subject to overreaching by one party

or sweeping subsequent change.’” Id. (citation omitted). “When interpreting the

terms of a restrictive covenant, we use the same rules of construction applicable to

contract interpretation.” Halls v. White, 2006 S.D. 47, ¶ 7, 715 N.W.2d 577, 580. “A

term is ambiguous if it is reasonably capable of being understood in more than one

sense.” Id. (citation omitted).

[¶7.] “The interpretation of a covenant is a legal question which we review

de novo.” Id. ¶ 4, 715 N.W.2d at 579 (citation omitted). “Equitable determinations,

however, are reviewed only for abuse of discretion.” Id. at 579−80 (citing Adrian v.

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McKinnie, 2002 S.D. 10, ¶ 9, 639 N.W.2d 529, 533). “An abuse of discretion is ‘a

fundamental error of judgment, a choice outside the reasonable range of permissible

choices, a decision . . . [that], on full consideration, is arbitrary or unreasonable.’”

Coester v. Waubay Twp., 2018 S.D. 24, ¶ 7, 909 N.W.2d 709, 711 (alteration and

omission in original) (quoting Wald, Inc. v. Stanley, 2005 S.D. 112, ¶ 8, 706 N.W.2d

626, 629). “Under the de novo standard of review, no deference is given to the

circuit court’s conclusions of law.” Hauck v. Clay Cnty. Comm’n, 2023 S.D. 43, ¶ 6,

994 N.W.2d 707, 710 (quoting Good Lance v. Black Hills Dialysis, LLC, 2015 S.D.

83, ¶ 9, 871 N.W.2d 639, 643).

[¶8.] The circuit court determined that the terms of the covenant had been

routinely violated. The Plaintiffs disagree with several interpretations the circuit

court made: (a) that detached garages were counted toward the “three-car garage”

limit; (b) that the “boundary of said lot” is the lot line; (c) that sheds and other

movable property located within 40 feet of the boundary constituted “buildings” that

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Bluebook (online)
2025 S.D. 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hood-v-straatmeyer-sd-2025.