Nelson v. Tinkcom

2025 S.D. 42
CourtSouth Dakota Supreme Court
DecidedJuly 23, 2025
Docket30698
StatusPublished

This text of 2025 S.D. 42 (Nelson v. Tinkcom) 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
Nelson v. Tinkcom, 2025 S.D. 42 (S.D. 2025).

Opinion

#30698-aff in pt & rev in pt-SPM 2025 S.D. 42

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

****

CRAIG NELSON and AMY FREED, as co-personal representatives of the ESTATE OF EARL NELSON, Plaintiffs and Appellants,

v.

GARY TINKCOM, as personal representative of the ESTATE OF WILLIAM TINKCOM, EDDIE WELCH, and MERE COIN COMPANY, LLC, d/b/a COINS & COLLECTABLES, Defendants and Appellees.

APPEAL FROM THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT MINNEHAHA COUNTY, SOUTH DAKOTA

THE HONORABLE DOUGLAS BARNETT Judge

JUSTIN A. BERGESON JUSTIN G. SMITH SANDER J. MOREHEAD of Woods, Fuller, Shultz & Smith, P.C. Sioux Falls, South Dakota Attorneys for plaintiffs and appellants.

ARGUED FEBRUARY 19, 2025 OPINION FILED 07/23/25 ****

JOEL RISCHE of Davenport, Evans, Hurwitz & Smith, LLP Sioux Falls, South Dakota Attorneys for defendants and appellees Eddie Welch and Mere Coin Company, LLC d/b/a Coins and Collectables.

DANIEL J. NICHOLS of Nichols & Rabuck, P.C. Sioux Falls, South Dakota Attorneys for defendant and appellee Gary Tinkcom, as personal representatives of the Estate of William Tinkcom. #30698

MYREN, Justice

[¶1.] The Nelson Estate asserted eight claims stemming from its alleged

interest in a coin shop (the Business) as well as a claim for conversion of its

property. Without filing an answer, the Defendants (the Tinkcom Estate, Eddie

Welch, and Mere Coin Company, LLC (Mere)) filed a motion for judgment on the

pleadings, asserting a statute of limitations defense. The circuit court granted the

motion for judgment on the pleadings, concluding the statute of limitations barred

all the Nelson Estate’s claims. The Nelson Estate appeals, claiming the statute of

limitations has not run and arguing equitable estoppel or fraudulent concealment

bars the statute of limitations defense. We affirm in part and reverse in part.

Factual and Procedural Background

[¶2.] The following facts are taken from the Nelson Estate’s complaint,

viewed as true, and all reasonable inferences are granted in their favor as the

nonmoving party. Poehl v. Countrywide Home Loans, Inc., 528 F.3d 1093, 1096 (8th

Cir. 2008) (regarding review of a motion for judgment on the pleadings).

[¶3.] William Tinkcom purchased the Business. Dr. Earl Nelson provided

money for that purchase in return for an ownership interest. Their agreement was

evidenced in a document signed by Tinkcom. Ultimately, each partner held an

equal share of the Business.

[¶4.] Dr. Nelson died on March 13, 2013. After his death, Tinkcom

continued to operate the Business and verbally confirmed to Dr. Nelson’s heirs on

multiple occasions that the Nelson Estate owned a 50 percent interest in the

-1- #30698

Business and that he would pay half the value of the Business to the Nelson Estate

when he sold the Business or died.

[¶5.] Welch, an employee of the Business, was negotiating with Tinkcom to

purchase the Business when Tinkcom died on January 25, 2022. After Tinkcom’s

death, Welch initially negotiated to buy the Business from both estates. The Nelson

Estate was included as one of the sellers in two proposed asset purchase

agreements.

[¶6.] Sometime in 2022, Welch and Tinkcom’s Estate executed a purchase

agreement for the Business. Despite initial negotiations, the Nelson Estate was not

included in the final negotiations, agreement, or distribution of proceeds. The

Tinkcom Estate sold the Business to Welch for $358,547. Tinkcom’s Estate

inventory showed the value of the sale and separately listed the balance of the

business checking account as $356,092.78.

[¶7.] Craig Nelson and Amy Freed, Nelson’s children and co-personal

representatives of the Nelson Estate, sued Gary Tinkcom (as the personal

representative of the Tinkcom Estate), Welch, and Mere.

[¶8.] In its first complaint, the Nelson Estate pled breach of contract, breach

of the covenant of good faith, breach of implied contract (quantum meruit), unjust

enrichment, promissory estoppel, and breach of fiduciary duty against the Tinkcom

Estate. The Nelson Estate also pled tortious interference with a business

relationship or expectancy and civil conspiracy against both the Tinkcom Estate

and Welch. These first eight claims will be referred to as “the Business Interest

Claims.” Multiple exhibits were attached to the complaint.

-2- #30698

[¶9.] The Nelson Estate amended the complaint and added a conversion

claim against the Defendants, alleging that “certain valuable coins and collectible

items” entrusted to the Business “for safe keeping” after Dr. Nelson’s death were

missing. They alleged the Defendants impermissibly converted the property,

“either keeping it in their possession, selling it, or otherwise giving it away without

compensating the Nelson Estate.”1

[¶10.] Without filing answers, the Tinkcom Estate filed a motion for

judgment on the pleadings, and Welch and Mere filed a motion for judgment on the

pleadings and a motion to dismiss for failure to state a claim. However, the crux of

each motion was an assertion that a statute of limitations barred all of the Nelson

Estate’s claims.

[¶11.] In its brief opposing the dispositive motions, the Nelson Estate argued:

“the motions were procedurally improper and the claims were brought before the

applicable statute of limitations expired, or alternatively, that dismissal was

inappropriate because Defendants were equitably estopped or barred by fraudulent

concealment from asserting a statute of limitations defense.”

[¶12.] Two motion hearings were held in October 2023. Counsel for Welch

and Mere argued that Dr. Nelson’s death triggered the dissociation of the

partnership between Tinkcom and Dr. Nelson and resulted in the accrual of any

claims arising out of that partnership. The circuit court noted that it was

1. The valuables referenced in the conversion claim include gold Krugerrands (a type of South African coin) and other gold coins and valuable items.

-3- #30698

procedurally unusual to file such motions before filing an answer and asked

whether the answer should come first. Counsel for Welch and Mere responded,

I could . . . I can file an answer in very short order, and file another motion for judgment on the pleadings, and . . . the standard is going to be exactly the same. The allegations and the pleadings are going to be exactly the same. There will be no substantive or functional difference in what the court is making the decision on[.]

[¶13.] The circuit court granted the Defendants’ motions for judgment on the

pleadings and dismissed all the Nelson Estate’s claims against the Defendants.

First, the circuit court relied on partnership law and reasoned that Dr. Nelson’s

death caused his dissociation from the partnership, resulting in the accrual of any

claim stemming from the partnership. Second, the circuit court held that any claim

for conversion accrued when the personal representatives were named to the Nelson

Estate. Third, the circuit court applied the statute of limitations to the accrual

dates it found for each claim and determined that the statute of limitations barred

those claims. Lastly, the circuit court decided the Nelson Estate had not made

reasonable efforts to justify an “equitable tolling” of the statute of limitations.

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Bluebook (online)
2025 S.D. 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-tinkcom-sd-2025.