State v. Buffalo Chip

951 N.W.2d 387, 2020 S.D. 63
CourtSouth Dakota Supreme Court
DecidedNovember 10, 2020
Docket28916
StatusPublished

This text of 951 N.W.2d 387 (State v. Buffalo Chip) 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
State v. Buffalo Chip, 951 N.W.2d 387, 2020 S.D. 63 (S.D. 2020).

Opinion

#28916-a-JMK & PJD 2020 S.D. 63

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

**** STATE OF SOUTH DAKOTA, acting through the Attorney General, Petitioner and Appellee,

v.

BUFFALO CHIP, SOUTH DAKOTA, Respondent and Appellant.

****

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

THE HONORABLE GORDON SWANSON Retired Judge

JAMES E. MOORE of Woods Fuller Shultz & Smith, P.C. Sioux Falls, South Dakota Attorneys for petitioner and appellee.

JACK H. HIEB ZACHARY W. PETERSON of Richardson, Wyly, Wise Sauck & Hieb, LLP Aberdeen, South Dakota

JOHN STANTON DORSEY KIMBERLY PEHRSON KENT R. HAGG of Whiting, Hagg, Hagg, Dorsey & Hagg, LLP Rapid City, South Dakota Attorneys for respondent and appellant.

**** ARGUED SEPTEMBER 30, 2019 OPINION FILED 11/10/20 #28916

KERN, Justice and DEVANEY, Justice

[¶1.] Justice Kern delivers the majority opinion of the Court as to

Issue I. Justice DeVaney delivers the majority opinion of the Court as to

Issue II.

[¶2.] KERN, Justice, writing for the Court as to Issue I.

[¶3.] Buffalo Chip appeals an order of the circuit court dissolving its

municipal incorporation, asserting that the State lacks authority to petition the

court for such relief. Buffalo Chip also contends the circuit court erred in holding

that it failed to satisfy the residency requirements in SDCL 9-3-1. We affirm.

Facts and Procedural History

[¶4.] At the heart of this case is the validity of Buffalo Chip’s status as a

newly incorporated municipality in Meade County, South Dakota. The Buffalo Chip

is a campground just outside of Sturgis, South Dakota, home of the famous Sturgis

Motorcycle Rally. The Rally draws hundreds of thousands of motorcycle enthusiasts

to Sturgis each year and is held during the first full week of August.

[¶5.] The controversy giving rise to this case began in February 2015, when

area residents petitioned the Meade County Board of County Commissioners (the

Board) for incorporation of the Buffalo Chip campground as a city. The Board

approved an amended petition on February 27, 2015. At the time, SDCL 9-3-1

provided that: “No municipality shall be incorporated which contains less than one

hundred legal residents or less than thirty voters.” 1 After holding a hearing and

considering testimony, the Board concluded that the area of incorporation had more

1. In 2016, the Legislature amended SDCL 9-3-1.

-1- #28916

than thirty registered voters and that more than a quarter of the voters had signed

the amended petition as required by SDCL 9-3-5. The Board, believing SDCL 9-3-1

had been satisfied, approved the incorporation of Buffalo Chip City. It scheduled an

election for May 7, 2015, so the voters in the proposed area could approve or reject

the Board’s decision. On March 31, 2015, several Meade County residents and the

City of Sturgis appealed the Board’s decision under SDCL 7-8-27, and Buffalo Chip

intervened. The circuit court denied the City of Sturgis’s motion to stay the

election, so it proceeded as scheduled. The vote was in favor of Buffalo Chip, and,

accordingly, on May 20, 2015, it filed its articles of municipal incorporation with the

Secretary of State. At the time of incorporation, Buffalo Chip did not have one

hundred legal residents, but it did have more than thirty registered voters.

[¶6.] After more than a year of litigation, the circuit court declared the

Board’s decision, ordering the incorporation of Buffalo Chip (with the assent of the

qualified voters), a legal nullity due to deficiencies in the petitioners’ filings and the

Board’s procedural process. The court ordered that any and all actions taken by

Buffalo Chip be “void ab initio.” Buffalo Chip and the Board appealed the circuit

court’s ruling to this Court. See Lippold v. Meade Cnty. Bd. of Comm’rs, 2018 S.D.

7, 906 N.W.2d 917.

[¶7.] In Lippold, we reversed and vacated the circuit court’s judgment,

holding that Sturgis and the other petitioners lacked standing to challenge Buffalo

Chip’s incorporation. Id. ¶ 31, 906 N.W.2d at 926. We held that pursuant to SDCL

-2- #28916

9-3-20, only the State of South Dakota, or someone acting on its behalf, could

challenge the incorporation of a city that is already acting as a municipality. 2

[¶8.] On March 14, 2018, the State petitioned this Court, requesting

permission to commence an action in the nature of quo warranto and asking this

Court to exercise original jurisdiction over the proceedings. We denied the request

on May 10, 2018, with leave to file in circuit court.

[¶9.] On May 29, 2018, the State filed a petition for, or in the nature of, a

writ of quo warranto with the circuit court seeking a judgment under SDCL chapter

21-28 declaring that Buffalo Chip did not lawfully incorporate as a municipality,

and should, therefore, be excluded from its corporate rights, privileges, and

franchise, and be dissolved as a municipal corporation. 3 The State asserted that

SDCL 21-28-2(3) authorizes it “to bring an equitable action against any association

or number of persons acting as a corporation without being duly incorporated.” 4 As

2. A more detailed rendition of the facts is set forth in Lippold, 2018 S.D. 7, ¶ 31, 906 N.W.2d at 926, which this Court issued on January 24, 2018.

3. “A writ of quo warranto is an ancient common-law writ that gave the king an action against a person who claimed or usurped any office, franchise, or liberty[.]” 17 McQuillin Mun. Corp. § 50:6 (3d ed. 2019). “An action in quo warranto seeks to prevent the exercise of unlawfully asserted authority.” Id.

“It is an established rule, frequently applied, that, if public interests are involved, the legal existence of a municipal corporation may be questioned and determined in quo warranto proceedings.” Id. § 50:9. “Quo warranto will lie against a municipal corporation where . . . it does not meet the statutory requirements.” Id.

4. SDCL 21-28-2 provides that:

An action may be brought by any state’s attorney in the name of the [S]tate, upon his own information or upon the complaint of a (continued . . .) -3- #28916

additional authority for its right to proceed, the State cited SDCL 9-3-20, which

permits the State to inquire into the “regularity of the organization of any acting

municipality[.]”

[¶10.] Buffalo Chip moved to dismiss the lawsuit, contending that SDCL 21-

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Bluebook (online)
951 N.W.2d 387, 2020 S.D. 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-buffalo-chip-sd-2020.