Justia Construction Law Opinion Summaries
Articles Posted in South Dakota Supreme Court
Smith v. Rustic Home Builders, LLC
Homeowners obtained a default judgment against an LLC. Although the LLC's manager (Manager) was listed as an individual defendant, the default was only against the LLC. A partial satisfaction of the judgment was later entered. Afterwards, the trial court issued an order stating that any other claims against Manager were dismissed with prejudice. Later, LLC unsuccessfully challenged the amount of the partial satisfaction of judgment. Thereafter, Manager, individually and on behalf of the LLC, filed a notice of appeal appealing four separate orders made in the case. Homeowners moved to dismiss, arguing that the appeal was untimely, Manager was not an attorney and could not represent the LLC, and Manager was not an aggrieved party. The Supreme Court dismissed the appeal, holding (1) the appeal of three of the orders was untimely; (2) a non-licensed attorney is not permitted to appear pro se to represent an LLC; and (3) because all of the claims against Manager were dismissed, he was not an aggrieved party and could not appeal the remaining order, the partial satisfaction of judgment order. View "Smith v. Rustic Home Builders, LLC" on Justia Law
Morris, Inc. v. State ex rel. Dep’t of Transp.
Border States Paving was awarded the prime contract by the state DOT for a road project. Border States entered into a subcontract with Morris, Inc. for aggregates and work on the project. During work on the project, the DOT orally informed Morris that certain materials passed the soundness test. However, the materials actually failed. Ultimately, the paving was not completed by the seasonal deadline. When the project was completed the next year, the DOT paid Border States in full. Border States withheld several thousand dollars from Morris for costs associated with the project because it believed Morris defaulted in its contractual obligations under the subcontract. Morris brought suit against the DOT, alleging that the DOT breached its express and implied contractual obligations owed to Morris and that the DOT breached its implied contractual obligation of good faith and fair dealing. The circuit court ruled in favor of Morris and awarded Morris damages. The Supreme Court reversed, holding that there was insufficient evidence that the DOT's erroneous pass report proximately damaged Morris where there was no evidence in the record that this error alone caused the project to not get completed by the deadline. View "Morris, Inc. v. State ex rel. Dep't of Transp." on Justia Law