Owen v. Owen

444 N.W.2d 710, 1989 S.D. LEXIS 138, 1989 WL 86420
CourtSouth Dakota Supreme Court
DecidedAugust 2, 1989
Docket16481
StatusPublished
Cited by16 cases

This text of 444 N.W.2d 710 (Owen v. Owen) 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
Owen v. Owen, 444 N.W.2d 710, 1989 S.D. LEXIS 138, 1989 WL 86420 (S.D. 1989).

Opinions

MORGAN, Justice.

Vicki Owen (Vicki) appeals from an order dismissing her negligence cause of action against Ronald Owen (Ronald). We reverse and remand.

Ronald and Vicki Owen are husband and wife. On March 6, 1986, Ronald was driving a 1967 Ford van near Gas City, Grant County, Indiana. Vicki and her two children were passengers in the van. Ronald lost control of the van, skidded off the road, and hit a utility pole. Vicki suffered a broken hip and fractured left femur. As a result, she was hospitalized from March 6, 1986, until August 19, 1986, and continues to have ongoing medical treatment. At the time of the accident, the parties were South Dakota residents, temporarily residing in Indiana to complete Ronald’s higher education. Vicki is a life-long resident of South Dakota, and both parties lived in South Dakota for six years prior to returning to school. They owned a home in Sturgis, South Dakota, and, while in Indiana, continued to pay South Dakota property taxes. Both parties licensed their vehicles in South Dakota and held South Dakota drivers licenses. They voted in South Dakota by absentee ballot during the Presidential election and if there was a local election at the time they were in South Dakota during college vacations, they would vote. It was always the parties’ intent to return to their home and live in South Dakota after Ronald completed his education. Both parties have, in fact, returned to South Dakota and reside in their home in Sturgis.

Vicki filed a complaint in South Dakota alleging Ronald was negligent in operating the van. Ronald filed an answer admitting the accident, but denying any negligence [711]*711on his part. Additionally, Ronald moved to dismiss the complaint for failure to state a cause of action upon which relief could be granted. A hearing was conducted where the court admitted, without objection, an offer of proof made by Vicki concerning the parties’ contacts to South Dakota. The trial court dismissed Vicki’s complaint, holding that the doctrine of lex loci delicti requires that Indiana law apply to this cause of action. Furthermore, it held that the Indiana guest statute requires Vicki to allege and prove willful or wanton misconduct. Since Vicki failed to properly plead, her complaint was dismissed. She appeals.

On appeal, Vicki contends that this court should abandon the lex loci delicti or “the place of the wrong” rule in multi-state tort actions or in the alternative, adopt a public policy exception to the rule. She argues further, that the application of the Indiana guest statute in South Dakota is unconstitutional.

We first define our standard of review. A motion to dismiss pursuant to SDCL 15-6-12(c) provides an expeditious remedy to test the legal sufficiency of pleadings. Akron Savings Bank v. Charlson, 83 S.D. 251, 253, 158 N.W.2d 523, 524 (S.D.1968). This court “must treat as true all facts properly pleaded in the complaint.” Id. We deal only with the questions of law arising thereon. Id.

South Dakota has consistently followed the lex loci delicti rule in multi-state tort actions. In Heidemann v. Rohl, 86 S.D. 250, 260, 194 N.W.2d 164, 169 (1972), plaintiff, the special administrator for the estate of the deceased who was a resident of South Dakota, sued the owner of an airplane in which deceased was killed when it crashed near Anselmo, Nebraska. The airplane was enroute, nonstop, from Colorado Springs, Colorado, to its destination of Sioux Falls, South Dakota, when it crashed in Nebraska. This court was faced with the question of whether South Dakota or Nebraska law applied to an imputed negligence claim against the owner. After reviewing the rules adopted in other jurisdictions in determining conflict or choice of law questions, this court adopted the lex loci delicti rule. Heidemann was allowed to maintain an imputed negligence action under the Nebraska law, whereas South Dakota law would not have permitted the cause of action.

This court has continued to apply the lex loci delicti rule to the substantive rights of parties in multi-state tort actions. See First Nat’l Bank of Minneapolis v. Kehn Ranch, 394 N.W.2d 709 (S.D.1986); and of special interest, Justice Sabers’ opinion in Schick v. Rodenburg, 397 N.W.2d 464 (S.D. 1986). Vicki urges this court to overrule these cases and adopt a “modern” or “most significant relationship” rule. In support of her position, she cites decisions from as many as thirty-two states that apply either the “modern” rule or the lex loci delicti public policy exception.

Many of the decisions Vicki cites, along with the seminal decision formulating the “modern” rule, Babcock v. Jackson, 12 N.Y.2d 473, 240 N.Y.S.2d 743, 191 N.E.2d 279 (1963), were available to this court when it reviewed the issues in Heidemann. After a careful review of the “modern” rule, this court adopted the lex loci delicti rule.

In adopting the lex loci delicti rule, this court noted the problems inherent in the “modern” rule.

Although there is dissatisfaction with the lex loci delicti rule there is also a reluctance on the part of many courts to adopt the modern fragmented approach to the settlement of multi-state conflict of laws problems because of the lack of discernible and suitable guidelines. For the most part the variants of the modern approach set forth theory and concepts rather than followable rules. As a result there is considerable confusion and inconsistency in its application.

86 S.D. at 259, 194 N.W.2d at 169. Because of these inherent problems, we preferred “to retain the traditional ‘place of wrong’ rule with its built-in virtues of certainty, simplicity, and ease of application.” Id.

Vicki contends that the age of Heide-mann requires this court to review the lex loci delicti rule and abandon it for the [712]*712“modern” rule. We are not persuaded. The same concerns this court had in Heide-mann remain today. Application of the “modern” rule results in confusion and inconsistency. See Currie, Comments on Reich v. Purcell, 15 UCLA L.Rev. 511, 595-97 (1968), for a discussion of how post-Babcock decisions in New York have “hopped frenetically from theory to theory like an overheated jumping bean ... producing contradictory results in practically identical cases.”

Next, Vicki contends that if we do not abandon our lex loci delicti rule, we should adopt a public policy exception to the rule. She argues that application of Indiana’s guest statute, IND. CODE ANN § 9-3-3-1 (Burns 1988),1 which prevents an injured spouse from recovering compensation from a negligent host unk -.s she can demonstrate wanton or willful misconduct, violates South Dakota public policy and should not be enforced. Under the particular facts of this case, we agree and create a limited public policy exception to lex loci delicti.

First, we note that the lex loci delicti rule in the field of torts has long admitted two exceptions:

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Owen v. Owen
444 N.W.2d 710 (South Dakota Supreme Court, 1989)

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Bluebook (online)
444 N.W.2d 710, 1989 S.D. LEXIS 138, 1989 WL 86420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owen-v-owen-sd-1989.