Larsen v. State

238 N.W.2d 684, 90 S.D. 146, 1976 S.D. LEXIS 190
CourtSouth Dakota Supreme Court
DecidedFebruary 13, 1976
DocketFile 11641
StatusPublished
Cited by4 cases

This text of 238 N.W.2d 684 (Larsen v. State) 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
Larsen v. State, 238 N.W.2d 684, 90 S.D. 146, 1976 S.D. LEXIS 190 (S.D. 1976).

Opinions

DOYLE, Justice.

This is an appeal from a summary judgment granted to the defendant, State of South Dakota, in an inverse condemnation action by plaintiffs to recover damages for closing of an access alley to U.S. Highway 18.

On January 23,1969, the State of South Dakota and Fred and Celia Larsen entered into a Right of Way Agreement whereby the plaintiffs transferred Lot H-l in Lots 1,2,3,4, 5, 6 and 7 of the Lueken Addition, City of Winner, to the State of South Dakota as highway right of way. As compensation, the Agreement provided for payment of $250.00, the construction of two approaches from the highway to the Larsen property, the construction of a six-inch sleeve under the highway to the Larsen property and the transfer to the Larsens of Lot 1 of Lot N of Tract L in the SWV4 of Section 21, Township 99 North, Range 76 West. This lot was at the time owned by the State of South Dakota. This compensation as stated in the Agreement was for “land conveyed and damages.” Both parties fully performed in accordance with the [148]*148convenants set forth in the Agreement. The right of way was necessary for construction of highway projects F 008-1(1) on State Highway 44 and F 010-5(5) on U.S. Highway 18 at their intersection in the City of Winner. As a part of these projects, an alley located between Lot 1 of the Lueken Addition and said Lot 1 of Lot N was closed.

On July 27,1973, the plaintiffs filed an action in inverse condemnation in the amount of $40,000, alleging the closing of the alley impaired access to their property. No action was taken by the plaintiffs to rescind the Right of Way Agreement executed by the parties and no offer of restitution of the transferred Lot 1 of Lot N was made.

The main issue in this case is whether or not the Right of Way Agreement entered into between the plaintiffs and defendant established compensation for any damage suffered by the plaintiffs as a result of the highway construction. The plaintiffs contend that the closing of the alley constituted a separate taking from their property not connected with the highway construction and therefore they should be compensated for this alleged taking beyond the compensation they received in the original Right of Way Agreement.

The parties to the present action entered into a legally binding contract when they signed the Right of Way Agreement on January 23, 1969. The contract was properly executed and was one that the State Highway Commission was authorized by law to enter into (SDCL 31-19-1 and 31-19-46). As is stated in 17 Am.Jur.2d, Contracts, § 21:

“Parties who have reduced their agreement to writing in plain, unequivocal terms or in terms susceptible of interpretation and construction under recognized rules of law are bound by the meaning of the contract which is reached by a proper interpretation.”

The question concerning the effect of a contractual conveyance to an agency having the power of eminent domain has been answered in other jurisdictions. As stated in Hamilton v. [149]*149City of Bismarck, 71 N.D. 321, 300 N.W. 631:

“ ‘The conveyance of land for a public purpose will ordinarily vest in the grantee the same rights as though the land had been acquired by condemnation. The conveyance will be held to be a release of all damages which would be presumed to be included in the award of damages if the property had been condemned.’
“ * * * All damages that arose from the exercise of the city’s power of eminent domain or its equivalent acquisition of rights under the contract were satisfied by that contract.”

See also Busby v. State, 1966,101 Ariz. 388, 420 P.2d 173; Wescott v. State Highway Commission, 1964, 262 N.C. 522, 138 S.E.2d 133; State Highway Department of Georgia v. Ivey, 1961, 217 Ga. 37, 120 S.E.2d 618.

The circuit court found that the language of the Agreement clearly encompassed payment for all damages caused as a result of highway projects F 008-1(1) and F 010-5(5), including any damage for the closing of the alley in question. Thus, in accordance with SDCL 15-6-56(c) there was no genuine issue as to any material fact.

In their brief the plaintiffs contend that the question of whether or not the closing of the alley was within the contemplation of the Right of Way Agreement is disputed and thus the motion for summary judgment should not have been granted. Granted, this fact is disputed; however, it is immaterial in the inverse condemnation action. It might be a material fact in an action seeking rescission of the Right of Way Agreement. Rather, the plaintiffs are seeking to obtain damages while retaining the benefits of the Agreement. This is not proper under South Dakota law since, while the Right of Way Agreement stands, it constitutes on its face a complete settlement of the question. To proceed further, the plaintiffs must first try to rescind the Agreement (SDCL 53-11-1 through 53-11-5).

[150]*150The plaintiffs contend that the closing of the alley was not specifically mentioned in the Right of Way Agreement and thus was not covered. The Agreement does not attempt to point out each item of damage individually nor does it specifically detail all items of construction. What the Agreement does do is set forth the compensation to which the plaintiffs were entitled, which, under South Dakota law, is the difference between the fair market value of the property before the acquisition minus the fair market value of the remainder property after the acquisition. City of Bristol v. Horter, 1950, 73 S.D. 398, 43 N.W.2d 543; State Highway Commission v. Hayes Estate, 1966, 82 S.D. 27, 140 N.W.2d 680; Basin Electric Power Cooperative, Inc. v. Cutler, 1974, 88 S.D. 214, 217 N.W.2d 798. No breakdown of individual items of damage is attempted or necessary in the Right of Way Agreement. The construction plans referred to in the Right of Way Agreement show a curb line extending across the mouth of the alley in question, thus closing its entrance onto the highway. The plaintiffs had notice of this condition by an examination of this plan when they executed the Agreement.

Further, plaintiffs claim damages due to alleged impairment of access. It is true that if a landowner’s access to his property has been materially impaired, he has suffered compensable damage “ ‘if the consequential injury is peculiar to the owner’s land and not of a kind suffered by the public as a whole.’ ” Hurley v. State, 1966, 82 S.D. 156, 143 N.W.2d 722.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hall v. State Ex Rel. South Dakota Department of Transportation
2011 S.D. 70 (South Dakota Supreme Court, 2011)
Boland v. City of Rapid City
315 N.W.2d 496 (South Dakota Supreme Court, 1982)
Lee v. North Dakota Park Service
262 N.W.2d 467 (North Dakota Supreme Court, 1977)
Larsen v. State
238 N.W.2d 684 (South Dakota Supreme Court, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
238 N.W.2d 684, 90 S.D. 146, 1976 S.D. LEXIS 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larsen-v-state-sd-1976.