Kjerstad Realty, Inc. v. Bootjack Ranch, Inc.

2011 S.D. 67, 2011 SD 67, 806 N.W.2d 205, 2011 S.D. LEXIS 121, 2011 WL 4498958
CourtSouth Dakota Supreme Court
DecidedSeptember 28, 2011
Docket25847
StatusPublished

This text of 2011 S.D. 67 (Kjerstad Realty, Inc. v. Bootjack Ranch, Inc.) 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
Kjerstad Realty, Inc. v. Bootjack Ranch, Inc., 2011 S.D. 67, 2011 SD 67, 806 N.W.2d 205, 2011 S.D. LEXIS 121, 2011 WL 4498958 (S.D. 2011).

Opinion

*206 KONENKAMP, Justice.

[¶ 1.] The circuit court dismissed this case when plaintiff was unable to bring the matter to trial within one year after we remanded in a previous appeal. Because good cause existed to extend the deadline, we reverse and remand.

Background

[¶ 2.] In December 2007, Kjerstad Realty, Inc. brought suit against Bootjack Ranch, Inc. for breach of a realty contract. Kjerstad sought and obtained summary judgment. Bootjack appealed, and, on October 28, 2009, we reversed and remanded for trial. Kjerstad, Realty, Inc. v. Bootjack Ranch, Inc., 2009 S.D. 93, 774 N.W.2d 797. We concluded that an issue of material fact was in dispute on “[wjhether the efforts of Kjerstad Realty constituted substantial performance” under the contract. Id. ¶ 17.

[¶ 3.] On remand, Kjerstad pursued further discovery, amended its complaint, and added party defendants. In January 2010, the assigned judge, Circuit Judge Merton B. Tice, retired. A hearing was held on February 9, 2010, before Circuit Judge John J. Delaney, who had been temporarily assigned to the case. Judge Delaney informed counsel that he would preside only until Judge Tice’s replacement was named.

[¶ 4.] On May 4, 2010, Judge Delaney held another hearing, this time on Kjer-stad’s motion to compel the defendants to produce certain documents requested in a December 2009 subpoena duces tecum. Judge Delaney ordered production of the documents. Kjerstad also moved for an award of attorney’s fees because of the defendants’ failure to produce the documents. A hearing was set for June 29, 2010. At that hearing, counsel for Kjer-stad remarked, “In this case we’ve gotten nothing but obstruction in our discovery requests from both the defendants. And to not sanction them for this action only gives them a license.” Judge Delaney agreed, saying, “That kind of strikes me as a true statement.” He awarded Kjerstad $2,660.16 in fees and costs.

[¶ 5.] On June 18, 2010, Circuit Judge Wally Eklund was appointed to the bench and assigned to the case, relieving Judge Delaney of this temporary assignment. A little over a month after Judge Eklund took the bench, Kjerstad moved for a scheduling order and trial date. On July 20, 2010, Kjerstad moved for a hearing to proceed with exemplary damages. On the same day, Bootjack and Patricia Hanson moved for summary judgment, asserting that Hanson did not act fraudulently or with deceit in selling Bootjack Ranch. Kjerstad moved for summary judgment on its breach of contract claim. On September 22, 2010, Judge Eklund held a hearing on all the motions. He granted summary judgment to Hanson and denied Kjerstad’s motion.

[¶ 6.] During the summary judgment hearing, counsel discussed trial scheduling. The court asked about the timing of the trial in relation to the date the Supreme Court issued its decision remanding the case. Counsel for Bootjack indicated that the case was remanded in October 2009 and that after the one-year deadline passed, he planned to move for dismissal under SDCL 15-30-16. Counsel for Kjer-stad responded that he was ready to try the case “tomorrow.” Counsel for Bo-otjack also was ready for trial tomorrow. The court responded, ‘We aren’t going to do it tomorrow.” Thereafter, a pretrial order was entered setting the trial date for February 15,2011.

[¶ 7.] On November 16, 2010, Bootjack moved to dismiss for Kjerstad’s failure to commence trial within one year from the date of remand. See SDCL 15-30-16. A *207 hearing was held on December 14, 2010. After considering arguments from counsel, the court granted Bootjack’s motion. It believed it was “just duty-bound to dismiss the action as against Bootjack,” because it concluded that “under the circumstances [it did not] have discretion to exercise ... under the rulings of’ the Supreme Court. Kjerstad’s suit against another party remained on schedule, but we granted Kjer-stad’s petition for intermediate appeal and stayed further proceedings.

Analysis and Decision

[¶ 8.] We review a court’s decision to dismiss a case under SDCL 15-30-16 for an abuse of discretion. Lamar Adver., Inc. v. Heavy Constructors, Inc. (Lamar II), 2010 S.D. 77, ¶ 10, 790 N.W.2d 45, 48; White Eagle v. City of Fort Pierre, 2002 S.D. 68, ¶ 4, 647 N.W.2d 716, 718. An abuse of discretion “is a fundamental error of judgment, a choice outside the range of permissible choices, a decision, which, on full consideration, is arbitrary or unreasonable.” Stavig v. Stavig, 2009 S.D. 89, ¶ 13, 774 N.W.2d 454, 458 (citations omitted).

[¶ 9.] Kjerstad asserts that the circuit court abused its discretion when it granted Bootjack’s motion to dismiss because Kjerstad “had requested a trial date be set within the one year period and the [circuit court] denied the request.” Kjer-stad also contends that good cause existed to delay the deadline under SDCL 15-30-16. It points to the undisputed record showing that after this Court’s remand, counsel for Kjerstad conducted “legitimate discovery,” “pursued and prosecuted the case,” engaged in no “unreasonable delay,” “acted with due diligence,” and progressed “with reasonable promptitude.” For a long time, Kjerstad notes, there was no permanent trial judge assigned to the case.

[¶ 10.] Bootjack, on the other hand, argues that SDCL 15-30-16 is inflexible, and the circuit court correctly applied the law on Kjerstad’s failure to proceed to trial within one year of this Court’s remand decision. Bootjack deems immaterial Kjerstad’s discovery efforts because this Court’s rulings require a trial before the deadline in SDCL 15-30-16.

[¶ 11.] SDCL 15-30-16 provided:
In every case on appeal, in which the Supreme Court shall order a new trial or further proceedings in the court below, the record shall be transmitted to such court and proceedings had therein within one year from the date of such order in the Supreme Court, or in default thereof, the action shall be dismissed, unless upon good cause shown the court shall otherwise order.*

We have interpreted “proceedings had therein” to mean “proceedings contemplated by the decision of this [C]ourt.” Chapman v. Hill, 39 S.D. 58, 162 N.W. 931 (1917); see also Sears v. McKee (Sears II), 326 N.W.2d 107, 108 (S.D.1982). Here, the decision of this Court was: “Whether Kjerstad Realty has substantially performed under the agreement is a question for the fact finder.... We reverse and remand for trial.” Kjerstad Realty, Inc.,

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Related

White Eagle v. City of Fort Pierre
2002 SD 68 (South Dakota Supreme Court, 2002)
Reuben C. Setliff, III, M.D., P.C. v. Stewart
2005 SD 40 (South Dakota Supreme Court, 2005)
LaMar Advertising of South Dakota, Inc. v. Heavy Constructors, Inc.
2008 SD 10 (South Dakota Supreme Court, 2008)
Kjerstad Realty, Inc. v. Bootjack Ranch, Inc.
2009 SD 93 (South Dakota Supreme Court, 2009)
Stavig v. Stavig
2009 SD 89 (South Dakota Supreme Court, 2009)
Lamar Advertising of South Dakota, Inc. v. Heavy Constructors, Inc.
2010 S.D. 77 (South Dakota Supreme Court, 2010)
Sears v. McKee
326 N.W.2d 107 (South Dakota Supreme Court, 1982)
Chapman v. Hill
162 N.W. 931 (South Dakota Supreme Court, 1917)
Sears v. McKee
298 N.W.2d 521 (South Dakota Supreme Court, 1980)

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Bluebook (online)
2011 S.D. 67, 2011 SD 67, 806 N.W.2d 205, 2011 S.D. LEXIS 121, 2011 WL 4498958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kjerstad-realty-inc-v-bootjack-ranch-inc-sd-2011.