Scotlynn Transport, LLC v. Plains Towing & Recovery, LLC

2024 S.D. 24
CourtSouth Dakota Supreme Court
DecidedApril 24, 2024
Docket30395
StatusPublished
Cited by3 cases

This text of 2024 S.D. 24 (Scotlynn Transport, LLC v. Plains Towing & Recovery, LLC) 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
Scotlynn Transport, LLC v. Plains Towing & Recovery, LLC, 2024 S.D. 24 (S.D. 2024).

Opinion

#30395-aff in pt & rev in pt-MES 2024 S.D. 24

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

****

SCOTLYNN TRANSPORT, LLC, Plaintiff and Appellant,

v.

PLAINS TOWING AND RECOVERY, LLC, Defendant and Appellee.

APPEAL FROM THE CIRCUIT COURT OF THE FOURTH JUDICIAL CIRCUIT MEADE COUNTY, SOUTH DAKOTA ****

THE HONORABLE JOHN H. FITZGERALD Judge

DAVID J. JENCKS of Jencks Law, P.C. Madison, South Dakota Attorneys for plaintiff and appellant.

JOHN W. BURKE LORA A. WAECKERLE of Thomas Braun Bernard & Burke, LLP Rapid City, South Dakota Attorneys for defendant and appellee.

CONSIDERED ON BRIEFS FEBRUARY 13, 2024 OPINION FILED 04/24/24 #30395

SALTER, Justice

[¶1.] Scotlynn Transport, LLC, commenced this action against Plains

Towing and Recovery, LLC, alleging several claims related to the disputed

ownership of a semi-tractor. Plains Towing removed the tractor from an accident

site and later acquired title to it using the statutory procedure outlined in SDCL 32-

36-8 and 32-36-9. The circuit court granted Plains Towing’s motion for summary

judgment after concluding that it had complied with SDCL 32-36-8 and lawfully

obtained title to the tractor. Scotlynn appeals, arguing that there are genuine

issues of material fact relating to claims raised in Scotlynn’s complaint that were

not addressed by the court. We reverse in part and affirm in part.

Factual and Procedural Background

[¶2.] On June 6, 2020, a law enforcement officer directed Plains Towing to

remove a semi-tractor and trailer owned by Scotlynn from a crash site in Meade

County. The tractor had sustained significant damage, and Plains Towing towed

both the tractor and the trailer to its impound lot in Sturgis.

[¶3.] On June 8, Fredi Bilbili, fleet manager for Scotlynn, called Plains

Towing’s office administrator, Deb Leverington, to discuss taking possession of the

trailer, storage of the tractor, and payment of fees for both. The record does not

contain any specific accounts of their conversation, but it does include a subsequent

email exchange in which Bilbili first wrote:

Hello,

Please email us the invoice for both units. As per our conversation we will have the driver pick up the trailer tomorrow morning and tractor will be at your yard till the insurance adjuster comes.

-1- #30395

If you have any questions please let us know

Thank you Fredi Bilbili – Fleet Manager

(Emphasis added.)

[¶4.] Leverington’s response reads:

Fredi,

Attached you will find billing invoices for both the tractor & trailer. BOTH invoices will need to be paid before we can release the trailer tomorrow. We don’t take credit cards over the phone. Your driver can pay in person with a credit card, or you can also pay via EFS Check or Wire transfer.

Storage will continue to accumulate for the tractor after tomorrow’s payment. Our storage fees are $100 per day.

If you have any questions regarding these invoices, please call John at [redacted], or [redacted] and press Option 2 for Accounts Receivable.

Thank you,

Deb

[¶5.] On June 9, a representative from Scotlynn arrived in Sturgis, paid the

Plains Towing invoices which included all current fees to date for the tractor and

the trailer, and took custody of the trailer. Scotlynn left the damaged tractor at the

Plains Towing impound lot.

[¶6.] Plains Towing is considered a “removal agency” under South Dakota

law, meaning it is “authorized to remove and salvage abandoned and junk motor

vehicles and . . . may be authorized by chapter 32-30 to remove vehicles . . . or may

be in the business of removing or salvaging vehicles[.]” SDCL 32-36-2(5). As

-2- #30395

explained more fully below, a removal agency must act promptly to send notice to a

removed vehicle’s registered owner in order to preserve its ability to collect

accumulating storage fees. See SDCL 32-36-8. In instances where a removed

vehicle goes unclaimed, proper statutory notice also allows a removal agency to

apply for the issuance of a new title from the South Dakota Department of Revenue

(DOR). See SDCL 32-36-9 (allowing removal agencies to apply to the DOR for the

title to an impounded vehicle once 30 days after sending notice to the registered

owner have expired).

[¶7.] On June 16, Plains Towing completed a pre-printed notice form (the

Notice) developed by the DOR and sent it to Scotlynn by certified mail. 1 The DOR

form lists four reasons for the notice:

1) Abandoned – Vehicle was towed (notice must be sent within 45 days)

2) Unpaid Repair Bill – Vehicle has a repair bill

3) Storage Facility Lien – Vehicle has a storage bill

4) Auction Agency – Vehicle obtained through an insurance company request tow

Plains Towing selected the “abandoned vehicle” reason for its Notice, which

Scotlynn claims it never received.

[¶8.] Agents of Scotlynn and Plains Towing did not communicate directly

with each other further after the June 9 meeting when a Scotlynn representative

paid Plains Towing’s invoices and collected its trailer. It is undisputed that

1. The DOR form is designated as “SD EForm 2469, Notice of Abandoned, Unpaid Repair Bill, Storage Facility Lien, or Auction Agency.” -3- #30395

Scotlynn did not pay any additional storage fees for the tractor after the initial

payment on June 9, and Plains Towing did not seek payment by sending an invoice

or bill. It is also undisputed that the insurance adjuster referenced in the June 8

email by Scotlynn’s fleet manager did not come to the Plains Towing impound lot to

inspect the tractor and did not contact Plains Towing until October 29.

[¶9.] In the meantime, on July 23, Plains Towing applied for the title to the

tractor. Plains Towing’s manager, John Fabris, called Scotlynn on July 27 in an

attempt to discuss the tractor and the Notice. However, there was no answer, and

Fabris left a voice message that Scotlynn acknowledges it did not return.

[¶10.] On September 2, the DOR issued Plains Towing a title to the tractor,

which stated “ABANDONDED” under the heading “TYPE.” Scotlynn later learned

of the newly issued title, and after unsuccessful efforts by its insurer in late-October

to negotiate the tractor’s return, Scotlynn commenced this action.

[¶11.] In its complaint, Scotlynn alleged four causes of action: (1) claim and

delivery under the theory that Plains Towing had not validly obtained the title to

the tractor; (2) conversion under a similar theory that Plains Towing was in

wrongful possession of the tractor; (3) a claim that Plains Towing fraudulently

misrepresented the legal status of the tractor to the DOR in an attempt to

wrongfully take possession of it; and (4) breach of an implied contract for storing the

tractor.

[¶12.] Plains Towing filed two separate summary judgment motions. The

first motion requested partial summary judgment relating to the sufficiency of the

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Bluebook (online)
2024 S.D. 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scotlynn-transport-llc-v-plains-towing-recovery-llc-sd-2024.