Krueger v. Austad

1996 SD 26, 545 N.W.2d 205, 1996 S.D. 26, 1996 S.D. LEXIS 26
CourtSouth Dakota Supreme Court
DecidedMarch 20, 1996
DocketNone
StatusPublished
Cited by18 cases

This text of 1996 SD 26 (Krueger v. Austad) 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
Krueger v. Austad, 1996 SD 26, 545 N.W.2d 205, 1996 S.D. 26, 1996 S.D. LEXIS 26 (S.D. 1996).

Opinion

McKEEYER, Circuit Judge.

[¶ 1] Tom Krueger, Jane Krueger and Krueger Excavating, Inc. appeal from a decision granting summary judgment to Oscar Austad in actions based on libel, defamation and invasion of privacy. We affirm.

FACTS AND PROCEDURAL HISTORY

[¶2] Krueger Excavating, Inc. is a South Dakota corporation owned at various times by one or more members of the Krueger family and at all times pertinent to this action by Tom Krueger and his wife, Jane Krueger. In early 1984, Tom transferred forty-seven shares of stock to Jane in an agreed transaction. This transfer resulted in Jane owning fifty-one percent of the stock in Krueger Excavating and Tom owning the remaining forty-nine percent. Jane was also named the president of the corporation as part of this transaction. According to Kruegers, the change in ownership interests and the naming of Jane as president were necessitated by Tom’s assuming the role of president of another corporation, Asphalt Surfacing Co.

[¶3] The majority ownership of Krueger Excavating by Jane allowed her to qualify the corporation as a business eligible for the Disadvantaged Business Enterprise (D.B.E.) program. 1 On October 8,1995, a local minority contractor contacted the Sioux Falls City commission and complained that several local contractors were forming “front corporations” to qualify for certification under the D.B.E program. 2 The complaint named a number of people and/or companies, including Tom Krueger, Jane Krueger and Krueger Excavating, as examples of the alleged circumvention of program requirements resulting in abuse of the D.B.E. program. City and state inquiries concerning the complaint created publicity concerning the D.B.E. program but did not result in any adverse action towards the alleged program abuses. In December 1985, the D.B.E. program was the subject of a newspaper article questioning the legitimacy of minority and women ownership of companies which qualified for the program. 3 Krueger Excavating was listed by the newspaper article as a business which qualified for the D.B.E. program due to Jane’s majority ownership.

[¶ 4] In November 1984, Tom Krueger was elected as a South Dakota state senator. He defeated Richard Barnes in the general election. In the spring of 1986, Tom ran in the Republican primary election against Randy Austad, son of Oscar Austad, for re-election. to his senate seat. Jane served as Tom’s advisor throughout the campaign. 4 During his campaign, Tom distributed campaign flyers which included a picture of his family. 5 *210 On April 27, 1986, Jane was featured in a Sioux Falls Argus Leader article highlighting her success as the president of Krueger Excavating.

[¶ 5] On May 9, 1986, Richard Barnes’ letter to the editor of the Argus Leader was printed. This letter stated:

It was interesting to see the attention given to Jane Krueger in the April 27 issue of the Argus Leader, titled “She built her reputation in construction business.” The article made it sound as though she had, through her own skill and initiative, invested in, founded, developed, expanded and created Krueger Excavating.
Such is not the case.
Although Jane Krueger may be a very nice person and well known in the community, it is also well known that her husband, Tom Krueger, transferred ownership of a business inherited from his father to his wife so they could have their family business qualify for a share of government business allocated as a Disadvantaged Business Enterprise. A little investigative journalism would have discovered that this move took place within the last two years. There is a real need for government to be supportive of businesses that are owned by women and minorities. But the intent of that law was not designed to throw government dollars at established businesses who technically alter family names at the top of the company letterhead.
We would rightfully be angry with someone who misrepresented their income to get food stamps, thus taking food from those who are hungry. We should be equally upset with those who circumvent business from companies that are truly disadvantaged.
As the Republican state senator from District 14, Tom Krueger should have a sense of concern for the public good that goes beyond his own self-interest. He should probably have more respect for the law, also.

Following Barnes’ letter to the editor, Oscar Austad facilitated the publication of a letter to the editor in the Argus Leader by M.I. Stahl on May 23, 1986. Austad wrote the letter, furnished the letter to Stahl for her reading and signature and delivered the signed letter to the Argus Leader office so it could be published as a letter to the editor. The Stahl letter stated:

I read with interest the letter that Rich Barnes submitted dealing with Krueger Excavating and how ownership of that company was transferred to his wife so they could get jobs as a disadvantaged business enterprise.
I really wasn’t concerned, however, until I thought about how easy it is for people in power, like Sen. Tom Krueger, to misuse the law to their own benefit. When I thought about how upset I become when people deceive the system to get food stamps they’re not entitled to, I really become irritated to think that one of our state senators would do such a thing to get more business for himself and take away potential jobs from the more deserving.
The Argus article on Jane Krueger said that about 10 percent of their business came from the disadvantaged business enterprise status. I think they would do well to take the profits from that 10 percent and turn it over to charity.

Jane Krueger responded to the letters with a May 29,1986 letter to the editor in the Argus Leader denying her participation in Krueger Excavating was only to facilitate qualification for the D.B.E. program and accusing Richard Barnes and “the Austads” of inappropriate politics.

[¶ 6] Following the publication of the letters, Kruegers brought suit against Barnes 6 and Oscar Austad alleging libel, defamation and invasion of privacy as a result of the publications. On June 23, 1987, Austad’s motion for summary judgment was denied. Following the denial of the motion, discovery took place and Austad renewed his motion for summary judgment. Kruegers appeal the grant of this motion for summary judgment to Austad.

*211 STANDARD OF REVIEW

[¶ 7] In reviewing a grant of summary judgment, we must determine whether the moving party has demonstrated there is no genuine issue of material fact in dispute and he is entitled to judgment as a matter of law. Nelson v. WEB Water Dev. Ass’n, Inc., 507 N.W.2d 691, 693 (S.D.1993); Wilson v. Great Northern Ry. Co., 83 S.D. 207, 212, 157 N.W.2d 19, 21 (1968).

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Bluebook (online)
1996 SD 26, 545 N.W.2d 205, 1996 S.D. 26, 1996 S.D. LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krueger-v-austad-sd-1996.