Schuldies v. Millar

1996 SD 120, 555 N.W.2d 90, 1996 S.D. LEXIS 128
CourtSouth Dakota Supreme Court
DecidedSeptember 25, 1996
DocketNone
StatusPublished
Cited by51 cases

This text of 1996 SD 120 (Schuldies v. Millar) 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
Schuldies v. Millar, 1996 SD 120, 555 N.W.2d 90, 1996 S.D. LEXIS 128 (S.D. 1996).

Opinions

KONENKAMP, Justice.

[¶ 1] Defendants appeal a jury verdict awarding damages against them for breach of contract, interference with contractual relations, slander and conversion, along with prejudgment interest and punitive damages. We affirm in part, reverse in part and remand.

FACTS

[¶ 2] Lyla May Johnson owns a 3000 acre cattle ranch spreading across Butte and Lawrence counties. A rancher almost all her life, she moved there when she was twenty-one after marrying her first husband, Bernie Stephens. They had one daughter, Rosalie. After Bernie died, Lyla married Dick Johnson, now deceased, who also ranched with her. At the time of trial Lyla was eighty-years-old and a resident at a nursing home in Broadus, Montana, where her daughter lives. In this suit, her former hired hand, Gerald Schuldies, and his wife, Carolyn, obtained a $123,000 judgment against Lyla, Rosalie Mil-lar, her husband, Charles, and their son, Russell, as well as against Lyla’s trust and guardianship estates (collectively defendants).

[¶ 3] Lyla hired Gerald as a ranch hand on February 12, 1979. His wife, Carolyn, lived and worked on the ranch with him. As partial compensation, Gerald received four, two-year-old heifers and their calves for each year of employment. The Schuldies’ relationship with Lyla evolved from a pure employment arrangement into a close friendship of over fourteen years. Lyla participated in the Schuldies’ family celebrations, outings and holidays and they assumed much responsibility for Lyla’s personal needs including driving her to the doctor, to church and to see friends. Lyla publicly acknowledged that much of the credit for the success of the ranch belonged to Gerald and Carolyn as a result of their hard work. When the Schul-dies’ youngest child was diagnosed with muscular dystrophy, Lyla gave them $5000 to defray medical expenses. She asked them not to tell Rosalie of this gift. This and other circumstances caused the Schuldies to perceive themselves as being closer to Lyla than her own family. Neighbors attested that Lyla saw the Schuldies as successors, running the ranch with a long-term lease.

[¶ 4] Lyla’s health declined in 1991. In the latter part of 1992, after a short hospitalization, she was placed in a residential nursing home. The Millars began to suspect the Schuldies had been taking advantage of Lyla’s condition. Vested with her mother’s power of attorney, on January 7,1993, Rosalie established the “Lyla May Stephens Johnson Trust,” with herself as Trustee and Lyla as Trustor. An inventory of trust assets is not of record, but the corpus apparently envelops most, if not all, of Lyla’s holdings, including the ranch real estate, cattle and equipment. Net income from this revocable trust is devoted to Lyla’s use and benefit during her lifetime, with the remainder to the corpus. Upon Lyla’s death the designated beneficiaries are Rosalie, her husband, and their two sons. On March 30, 1993, Lyla, in her capacity as Trustor, signed a “Letter of Instruction to Trustee,” which had been prepared for her at the instance of Rosalie and her family. It stated in part:

You are further instructed to expedite the termination of the employment of Gerald Schuldies and removal from the ranch of [94]*94Gerald Sehuldies’ family, keeping in mind the removal of all of Sehuldies’ livestock and equipment, must be done so as not to cause them unnecessary financial loss, but as soon as possible and no later than July 1,1993.

Disputes arose over the ownership of cattle and equipment, eventually resulting in this lawsuit. Both the Millars and the Sehuldies accused each other of exploiting Lyla’s weakened condition. The Millars took it a notch further, suggesting to some that Gerald could not be trusted, even calling for a criminal investigation. After the trust was established Rosalie learned that in late 1992 Lyla had instructed her attorney to draw a ten-year ranch lease with the Sehuldies. For their part, the Sehuldies insisted Lyla wanted to favor them with an advantageous lease in return for their kindness to her over the years. Unfortunately, by the time this matter came to trial Lyla suffered from a hydro-cephalic condition resulting in memory loss and confused thinking, so she was unable to remember, much less explain, her intentions.

[¶ 5] The Sehuldies asserted several claims, which will be detañed below, but are briefly summarized as foñows: (1) breach of contract regarding a purported ten-year lease agreement between the Sehuldies and Lyla; (2) tortious interference with this prospective contract; (3) breach of contract over a sale of sixteen broken mouth cows; (4) conversion of cattle and other personal property located on the ranch, including disputes over cattle brands and certain bills of sale; (5) conversion of a $10,000 certificate of deposit Lyla held in joint tenancy with Gerald; (6) slander; and (7) punitive damages. Defendants counterclaimed for conversion, slander, and punitive damages. The jury returned a verdict for the Sehuldies.1

[¶ 6] We consider the following issues from defendants’ appeal:

I. Whether the trial court erred in denying defendants’ motions for directed verdict, judgment notwithstanding the verdict, and new trial.
II. Whether the trial court abused its discretion in awarding $1644.50 in photocopy disbursements.

By notice of review Sehuldies raise one issue:

III. Whether the trial court erred in denying their request for attorney fees.

ANALYSIS

[¶ 7] I. Motions for Directed Verdict, Judgment NOV and New Trial

[¶ 8] Our standard of review on motions for directed verdict and judgment NOV:

A motion for a directed verdict under SDCL 15-6-50(a) questions the legal sufficiency of the evidence to sustain a verdict against the moving party. Upon such a motion, the trial court must determine whether there is any substantial evidence to sustain the action. The evidence must be accepted which is most favorable to the nonmoving party and the trial court must indulge all legitimate inferences therefrom in his favor. If sufficient evidence exists so that reasonable minds could differ, a directed verdict is not appropriate. The trial court’s decisions and rulings on such motions are presumed correct and this Court wül not seek reasons to reverse.
A motion for judgment [notwithstanding the verdict] is based on and relates back to a directed verdict motion made at the close of all the evidence. Thus, the grounds asserted in support of the directed verdict motion are brought before the trial court for a second review. We review the testimony and evidence in a light most favorable to the verdict or the nonmoving party, [95]*95then without weighing the evidence we must decide if there is evidence which would have supported or did support a verdict.

Bauman v. Auch, 539 N.W.2d 320, 325 (S.D.1995) (citations omitted). We review a' trial court’s denial of motion for new trial under the following standard:

Whether a new trial should be granted is left to the sound judicial discretion of the trial court, and this Court will not disturb the trial court’s decision absent a clear showing of abuse of discretion.

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Cite This Page — Counsel Stack

Bluebook (online)
1996 SD 120, 555 N.W.2d 90, 1996 S.D. LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schuldies-v-millar-sd-1996.