Fix v. First State Bank of Roscoe , 2011 S.D. LEXIS 137 ( 2011 )


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  • #25898, #25911-aff in pt, rev in pt & rem-JKM
    
    2011 S.D. 80
    IN THE SUPREME COURT
    OF THE
    STATE OF SOUTH DAKOTA
    ****
    RITA FIX,                                       Plaintiff and Appellant,
    and
    JOHN S. LOVALD,                                 Plaintiff,
    v.
    FIRST STATE BANK OF ROSCOE,
    A SOUTH DAKOTA CORPORATION,
    ROSCOE COMMUNITY BANKSHARES, INC.,
    A SOUTH DAKOTA CORPORATION                      Defendants and Appellees,
    and
    JAMES and PAMELA BAER
    and VAUGHN BECK,                                Defendants.
    ****
    APPEAL FROM THE CIRCUIT COURT OF
    THE FIFTH JUDICIAL CIRCUIT
    FAULK COUNTY, SOUTH DAKOTA
    ****
    THE HONORABLE JAMES W. ANDERSON
    Judge
    ****
    LEE SCHOENBECK
    Watertown, South Dakota                         Attorney for plaintiff
    and appellant.
    ROGER W. DAMGAARD
    SANDER J. MOREHEAD of
    Woods, Fuller, Shultz & Smith PC
    Sioux Falls, South Dakota                       Attorneys for defendants
    and appellees.
    ****
    ARGUED AUGUST 23, 2011
    OPINION FILED 11/30/11
    #25898, #25911
    MEIERHENRY, Retired Justice
    [¶1.]        This appeal involves Rita Fix’s claim against First State Bank of
    Roscoe and Roscoe Community Bankshares, Inc. (Bank) for intentional infliction of
    emotional distress and abuse of process. The trial court dismissed Fix’s intentional
    infliction of emotional distress claim; the abuse of process claim was tried to a jury.
    Fix claims that the trial court erred in dismissing the intentional infliction of
    emotional distress claim and erred in instructing the jury at trial. We reverse and
    remand for a new trial on the abuse of process claim.
    FACTS AND BACKGROUND
    [¶2.]        Part of the controversy between Fix and the Bank involves property
    Fix owned in Faulk County, South Dakota. In 1997, Fix signed a contract for deed
    selling the property to her son and daughter-in-law, Jeff and Marie Fix, but
    retained a life estate in the house located on the property. In 1999, Jeff and Marie
    obtained a loan from the Bank to finance their farming operation. To secure the
    loan, the Bank required Jeff and Marie to obtain a warranty deed for the property,
    including Fix’s life estate in the house. Although hesitant to relinquish her house,
    Fix eventually executed a warranty deed to Jeff and Marie after the Bank assured
    her that she could retain possession of the house. In a letter from the Bank
    president, the Bank wrote:
    In the event that for any reason the bank becomes the owner of
    the described real estate, you will have full right of possession to
    the home on the premises as long as you are living.
    [¶3.]        In 2004, Fix filed for bankruptcy in federal court. Fix did not claim a
    homestead exemption for the house nor list her interest in the house as personal
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    property. Fix retained possession of the house until 2005 when Jeff and Marie’s
    financial problems forced them to convey the house and the property to the Bank in
    lieu of foreclosure. Later that same year, the Bank sold the property to a third
    party and then sought to remove Fix from the house.
    [¶4.]         While in federal bankruptcy court, Fix sued the Bank in state court
    for: (1) right to possession of the house; (2) breach of fiduciary duty; (3) intentional
    infliction of emotional distress; (4) deceit; and (5) fraudulent misrepresentation. In
    response, the Bank requested that the bankruptcy court enjoin Fix’s state action.
    The Bank claimed that Fix’s cause of actions belonged to the bankruptcy estate not
    Fix personally. The bankruptcy court agreed with the Bank that all five alleged
    causes of action could only be brought by Fix’s bankruptcy trustee. Eventually, the
    issue was appealed to federal district court and to the Eighth Circuit Court of
    Appeals. The Eighth Circuit found that all of Fix’s claims belonged to the
    bankruptcy estate with one exception: Fix’s claim for intentional infliction of
    emotional distress. See Fix v. First State Bank of Roscoe, 
    559 F.3d 803
    , 810 (8th
    Cir. 2009).
    [¶5.]         In addition to the bankruptcy and civil proceedings, Jeff, Marie, and
    Fix were indicted in June 2005 in state court on multiple criminal counts. The
    criminal counts involved an alleged criminal scheme where Jeff sold grain covered
    by the Bank’s security interest in Fix’s name; Fix would then endorse the grain
    checks, deposit them in her account, and write Jeff a check for the amount. Jeff
    ultimately pled guilty and the charges against Marie were dismissed. The criminal
    proceedings against Fix, however, were not dismissed but remained dormant for
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    several months despite her attorney’s requests to proceed or dismiss. Eventually in
    February 2006, Vaughn Beck, the Edmunds County State’s Attorney who had
    brought the charges and who also represented the Bank civilly, contacted Fix’s
    criminal attorney. Beck offered to dismiss the criminal charges against Fix if she
    would “deed the house back to the bank.” This prompted Fix to amend her state
    court pleadings to include a claim of abuse of process against both the Bank and
    State’s Attorney Beck and to proceed with her intentional infliction of emotional
    distress claim against the Bank. Her abuse of process claim alleged that the Bank
    conspired with Beck to use the criminal proceeding for the illegitimate purpose of
    removing her from the house.
    [¶6.]        Prior to trial, Beck settled with Fix for $50,000. Additionally, the trial
    court granted summary judgment against Fix on her intentional infliction of
    emotional distress claim against the Bank. The abuse of process claim was tried to
    a jury in February 2010. The jury returned a verdict finding the Bank liable but
    awarded no damages to Fix.
    ISSUES
    [¶7.]        Fix raises several issues on appeal. (1) Fix claims that the trial court’s
    instruction on emotional distress was improper and not a correct statement of the
    law. The trial court’s instruction required Fix to prove “she suffered extreme and
    disabling emotional distress as a proximate result of the abuse of process.”
    (Emphasis added.) She claims that she does not need to prove that her emotional
    distress was “extreme and disabling.” (2) Fix also claims that the trial court erred
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    in dismissing her claim of intentional infliction of emotional distress against the
    Bank.
    [¶8.]        Additionally, Fix claims error (3) because the Bank was allowed to
    argue its damages without claiming offset or restitution; (4) because the trial court
    improperly applied the offset provision of the joint tortfeasor statute; (5) because
    the alternate juror was selected by lot contrary to statute; and (6) because expenses
    incurred in a separate federal court proceeding were incorrectly taxed as costs. The
    Bank also raises three issues by notice of review that we deem waived or without
    merit.
    ANALYSIS
    [¶9.]        1.     Emotional distress damages resulting from an abuse of
    process claim need not be “extreme and disabling” in
    order to recover.
    [¶10.]       Under our standard of review for jury instructions:
    A trial court has discretion in the wording and arrangement of
    its jury instructions, and therefore we generally review a trial
    court’s decision to grant or deny a particular instruction under
    the abuse of discretion standard. However, no court has
    discretion to give incorrect, misleading, conflicting, or confusing
    instructions; to do so constitutes reversible error if it is shown
    not only that the instructions were erroneous, but also that they
    were prejudicial.
    Bertelsen v. Allstate Ins. Co., 
    2011 S.D. 13
    , ¶ 26, 
    796 N.W.2d 685
    , 695 (quoting
    Wangsness v. Builders Cashway, Inc., 
    2010 S.D. 14
    , ¶ 10, 
    779 N.W.2d 136
    , 140
    (quoting State v. Cottier, 
    2008 S.D. 79
    , ¶ 7, 
    755 N.W.2d 120
    , 125)).
    [¶11.]       Several of the trial court’s jury instructions required the jury to find
    severe, extreme, and disabling emotional distress in order for Fix to recover
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    #25898, #25911
    damages.1 We hold that Fix was not required to show that she suffered extreme
    and disabling emotional distress in order to recover damages for emotional distress
    caused by the abuse of process.
    [¶12.]         The Bank mistakenly relies on our prior decision in Maryott v. First
    National Bank of Eden, 
    2001 S.D. 43
    , 
    624 N.W.2d 96
    , 104. In Maryott, the plaintiff
    sued First National Bank of Eden under a statutorily adopted Uniform Commercial
    Code (U.C.C.) provision that makes a bank liable to its customers if it wrongfully
    dishonored checks. See SDCL 57A-4-402(b). The statute at issue provided damages
    as follows:
    (b) A payor bank is liable to its customer for damages
    proximately caused by the wrongful dishonor of an item.
    Liability is limited to actual damages proved and may include
    damages for an arrest or prosecution of the customer or other
    consequential damages. Whether any consequential damages
    1.       Fix contends the following four jury instructions were an incorrect statement
    of the law:
    1.    Jury Instruction No. 4 provided that the jury must find
    Fix “suffered an extreme and disabling emotional distress
    as a result of [the Bank] and Vaughn Beck’s agreement to
    use, and their use of, a criminal prosecution primarily for
    an improper purpose.”
    2.    Jury Instruction No. 11 provided that Fix “may only
    recover damages for severe emotional distress.”
    3.    Jury Instruction No. 25 provided that if the jury decides
    for Fix on the question of liability, the jury “must then fix
    the amount of money which will reasonably and fairly
    compensate” Fix for “the pain and suffering, extreme
    emotional distress and loss of capacity of the enjoyment of
    life . . . . ”
    4.    Special Verdict Question No. 4 directed the jury that they
    must find Fix “suffered extreme and disabling emotional
    distress as a proximate result of the abuse of process.”
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    are proximately caused by the wrongful dishonor is a question of
    fact to be determined in each case.
    
    Id.
     The question was whether emotional damages were included and recoverable as
    “other consequential damages.” Since the statute did not define “other
    consequential damages,” this Court looked to other jurisdictions that had
    interpreted the same 402(b) language and followed those jurisdictions that required
    proof of intentional or negligent infliction of emotional distress. We held that,
    [b]ecause [the statute] does not define the consequential
    damages that may be recovered and does not clearly indicate an
    independent right of recovery of emotional damages, we must
    interpret that section in light of our precedent which requires a
    plaintiff to prove either intentional or negligent infliction of
    emotional distress to recover emotional damages.
    Maryott, 
    2001 S.D. 43
    , ¶ 20, 
    624 N.W.2d at 103
    .
    [¶13.]       Maryott is distinguishable from the present tort case and should be
    read narrowly, mainly because the plaintiff’s claim in Maryott was based on a
    U.C.C. statutory right to recover damages for a dishonored check. It did not involve
    a tort action. Maryott held that a plaintiff could not recover emotional damages
    under the statute unless the plaintiff met the requirements of the independent tort
    of negligent or intentional infliction of emotional distress. Id. ¶ 17. Similarly, the
    Wyoming Supreme Court and Minnesota Supreme Court both found that “‘extra-
    contractual damages, including those for emotional distress, are not recoverable for
    breach of contract except in those rare cases where the breach is accompanied by an
    independent tort.’” Long-Russell v. Hampe, 
    39 P.3d 1015
    , 1019 (Wyo. 2002)
    (quoting Lickteig v. Alderson, Ondov, Leonard & Sween, P.A., 
    556 N.W.2d 557
    , 561
    (Minn. 1996)).
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    #25898, #25911
    [¶14.]       In South Dakota, tort damages are governed by SDCL 21-3-1, which
    provides: “For the breach of an obligation not arising from contract, the measure of
    damages, except where otherwise expressly provided by this code, is the amount
    which will compensate for all the detriment proximately caused thereby, whether it
    could have been anticipated or not.” (Emphasis added.) We have consistently
    recognized emotional distress damages in tort actions. Roth v. Farner-Bocken Co.,
    
    2003 S.D. 80
    , ¶ 70, 
    667 N.W.2d 651
    , 670 (upholding a jury award of damages for the
    feelings of “anger, betrayal, and devastation” in an invasion of privacy action);
    Carey v. Jack Rabbit Lines, Inc., 
    309 N.W.2d 824
    , 827 (S.D. 1981) (upholding a trial
    court’s award of damages in a negligence action as reasonable because “in addition
    to the painful injury, appellee . . . suffered mental anguish”); Bean v. Best, 
    77 S.D. 433
    , 441-42, 
    93 N.W.2d 403
    , 408 (1958) (“A person who has a cause of action for a
    tort may be entitled to recover as an element of damages for that form of mental
    distress known as humiliation, that is, a feeling of degradation or inferiority . . . .”
    (emphasis added) (quoting Restatement (First) of Torts § 905 cmt. d (1939))); Davis
    v. Holy Terror Mining Co., 
    20 S.D. 399
    , 
    107 N.W. 374
    , 379 (1906) (reasoning that in
    determining damages “the jury should take into consideration the age and condition
    in life of the plaintiff, the physical injury inflicted, the bodily pain and mental
    anguish endured” (emphasis added)). Since an abuse of process claim is an
    intentional tort, a plaintiff can seek damages in the form of emotional distress
    without proving the independent tort of intentional infliction of emotional distress
    and without proving the heightened standard of “extreme and disabling” emotional
    distress.
    -7-
    #25898, #25911
    [¶15.]       This holding comports with other jurisdictions that recognize a
    plaintiff’s right to recover damages for mental anguish in abuse of process actions
    without requiring the plaintiff to meet the heightened standard of “extreme and
    disabling.” For example, in reviewing damages awarded by a jury in an abuse of
    process action, the North Dakota Supreme Court found that “[a] jury may properly
    consider wounded feelings, mental suffering, humiliation, degradation, and disgrace
    in fixing compensatory damages.” Stoner v. Nash Finch, Inc., 
    446 N.W.2d 747
    , 753
    (N.D. 1989). In a footnote, the North Dakota court distinguished damages in an
    abuse of process cause of action from those in a negligent infliction of emotional
    distress cause of action. The court noted that the “tort of abuse of process, unlike
    the tort of negligent infliction of emotional distress, does not require ‘[s]pecific proof
    of intangible damages [such as mental injury] . . . as a prerequisite to an award if it
    is clear that such damages would accrue to a normal person.’” 
    Id.
     at 753 n.3
    (alteration in original) (quoting Prosser & Keeton, The Law of Torts § 121, at 900
    (5th ed. 1984)).
    [¶16.]       In summary, we hold that to recover emotional distress damages
    sustained as a result of the tort of abuse of process, a plaintiff is not required to
    prove the elements of intentional or negligent infliction of emotional distress. The
    trial court erred by requiring Fix to prove that her emotional damages were
    “extreme and disabling.” Because the jury was given the wrong legal standard for
    recovering emotional distress damages, we reverse and remand for a new trial.
    [¶17.]       2.     Fix failed to show a genuine issue of material fact for her
    intentional infliction of emotional distress claim.
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    #25898, #25911
    [¶18.]       Summary judgment is authorized “if the pleadings, depositions,
    answers to interrogatories, and admissions on file, together with the affidavits, if
    any, show that there is no genuine issue as to any material fact and that the moving
    party is entitled to a judgment as a matter of law.” SDCL 15-6-56(c). We will
    affirm only when “there are no genuine issues of material fact and the legal
    questions have been correctly decided.” Bego v. Gordon, 
    407 N.W.2d 801
    , 804 (S.D.
    1987).
    [¶19.]       To survive the Bank’s motion for summary judgment, Fix needed to
    demonstrate that there was an issue of material fact as to each of the elements of
    intentional infliction of emotional distress: “(1) an act by the defendant amounting
    to extreme and outrageous conduct; (2) intent on the part of the defendant to cause
    the plaintiff severe emotional distress; (3) the defendant’s conduct was the cause in-
    fact of plaintiff’s distress; and (4) the plaintiff suffered an extreme disabling
    emotional response to defendant’s conduct.” Anderson v. First Century Fed. Credit
    Union, 
    2007 S.D. 65
    , ¶ 38, 
    738 N.W.2d 40
    , 51-52.
    [¶20.]       The first element requires Fix to show there is no genuine issue of
    material fact as to whether the Bank’s conduct was “extreme and outrageous.” Fix
    claims that the Bank’s act of selling and requiring her to vacate the house in direct
    contravention to the Bank’s 1999 letter promising her possession for life constituted
    extreme and outrageous conduct. We have said:
    The question whether the defendant’s conduct was extreme and
    outrageous is initially for the trial court. Richardson v. East
    River Elec. Power Coop., 
    531 N.W.2d 23
    , 27 (S.D. 1995).
    Comment d to the Restatement (Second) of Torts § 46 (1965)
    explains that recovery is permissible only where the actor’s
    conduct was “extreme and outrageous.” Proof under this tort
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    #25898, #25911
    must exceed a rigorous benchmark. The conduct necessary to
    form intentional infliction of emotional distress must be “so
    outrageous in character, and so extreme in degree, as to go
    beyond all possible bounds of decency, and be regarded as
    atrocious, and utterly intolerable in a civilized community.” Id.
    See Stene v. State Farm Mut. Auto. Ins. Co., 
    1998 S.D. 95
    , ¶ 32,
    
    583 N.W.2d 399
    , 404; Tibke v. McDougall, 
    479 N.W.2d 898
    , 906-
    07 (S.D. 1992). Liability for this tort will “not extend to mere
    insults, indignities, threats, annoyances, petty oppression, or
    other trivialities.” Restatement (Second) of Torts § 46 cmt. d.
    Harris v. Jefferson Partners, L.P., 
    2002 S.D. 132
    , ¶ 11, 
    653 N.W.2d 496
    , 500. The
    conduct “is of a nature especially calculated to cause, and does cause, mental
    distress of a very serious kind.” See Citibank (S.D.), N.A. v. Hauff, 
    2003 S.D. 99
    , ¶
    24, 
    668 N.W.2d 528
    , 535.
    [¶21.]       The facts, as set forth by Fix, do not meet that “rigorous benchmark.”
    Harris, 
    2002 S.D. 132
    , ¶ 11, 
    653 N.W.2d at 500
    . Fix’s main argument relies on the
    Eighth Circuit’s decision that Fix owned the cause of action of intentional infliction
    of emotional distress. That decision, however, only dealt with ownership of the
    cause of action, not whether Fix could withstand a summary judgment motion. She
    bases her claim on the Bank’s failure to abide by the letter’s promise that she could
    remain in the house. Instead, the Bank sold the property and told her she had to
    move out, which she claims caused her severe emotional distress. The Bank may
    have intentionally reneged on its promise, but such conduct under the
    circumstances cannot be characterized as “extreme and outrageous” or exceeding
    “all bounds usually tolerated by decent society.” See Stene, 
    1998 S.D. 95
    , ¶ 32, 583
    N.W.2d at 404. Therefore, even assuming Fix’s version of events, granting
    summary judgment was not error.
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    #25898, #25911
    [¶22.]         3.    Allowing the Bank to argue in its defense that Fix caused
    financial loss to the Bank was not error.
    [¶23.]         We review a court’s evidentiary rulings under the abuse of discretion
    standard. State ex rel. Dep’t of Transp. v. Spiry, 
    1996 S.D. 14
    , ¶ 11, 
    543 N.W.2d 260
    , 263 (citations omitted). An evidentiary ruling will not be overturned unless
    error is “demonstrated . . . [and] shown to be prejudicial error.” 
    Id.
     (quoting Shaffer
    v. Honeywell, Inc., 
    249 N.W.2d 251
    , 258 (S.D. 1976)).
    [¶24.]         Fix argues that during closing arguments, the Bank should not have
    been allowed to refer to its underlying losses due to Fix’s conversion of thousands of
    dollars of the Bank’s collateral. According to Fix, the argument was impermissible
    for two reasons. First, the Bank is required to confine their comments to issues
    presented by the evidence. Schoon v. Looby, 
    2003 S.D. 123
    , ¶ 14, 
    670 N.W.2d 885
    ,
    890. Fix contends that because the Bank did not assert a counterclaim or request
    an offset, the Bank should have not been allowed to comment about its financial
    losses. Second, Fix argues that the reference to the Bank’s losses misled the jury
    about the measure of damages and was highly prejudicial.
    [¶25.]         Allowing the reference in final argument is not reversible error. The
    Bank’s argument was relevant to Fix’s claim that the Bank used the criminal
    prosecution “primarily for an improper purpose.”2 The Bank presented evidence
    2.       The relevant portion of Jury Instruction No. 4 provides
    In this action, Rita Fix has the burden of proving . . . [t]hat [she]
    suffered an extreme and disabling emotional response as a
    result of [the Bank] and Vaughn Beck’s agreement to use, and
    their use of, a criminal prosecution primarily for an improper
    purpose.
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    and claimed that using criminal proceedings to seek restitution for the Bank’s
    losses was a proper purpose. Additionally, the Bank’s counsel explicitly told the
    jury that it was not seeking restitution from Fix as part of this lawsuit. Thus, we
    find that the trial court did not abuse its discretion by allowing the Bank to refer to
    its underlying loss in its closing argument.
    [¶26.]        4.     The joint tortfeasor’s settlement amount reduces a total
    judgment not just compensatory damages.
    [¶27.]        Before trial, Beck, an alleged co-conspirator in Fix’s abuse of process
    claim, settled with Fix for $50,000 in exchange for a complete release. The trial
    court indicated that it intended to deduct the $50,000 from any jury award for
    compensatory damages. Thus, if the jury awarded compensatory damages of
    $50,000 or less, the award would be reduced to zero leaving no compensatory
    damages to support a punitive damage claim. We find this rationale misplaced.
    Normally, we would not address this issue because the jury awarded no damages,
    and Fix was not affected by the ruling. However, since this may become an issue on
    retrial, we will address it.
    [¶28.]        The issue is controlled by SDCL 15-8-17, which was adopted pursuant
    to the Uniform Contribution Among Tortfeasors Act. The statute provides:
    A release by the injured person of one joint tort-feasor, whether
    before or after judgment, does not discharge the other tort-
    feasors unless the release so provides; but reduces the claim
    against the other tort-feasors in the amount of the consideration
    paid for the release, or in any amount or proportion by which the
    release provides that the total claim shall be reduced, if greater
    than the consideration paid.
    (Emphasis added.) The statute expressly allows a reduction to “total claim” against
    the remaining joint tortfeasors. It makes no distinction between compensatory and
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    #25898, #25911
    punitive damages. Although this issue has not been previously addressed, our
    analysis of SDCL 15-8-17 in prior cases contemplated that any settlement amount
    from one joint tortfeasor reduced the total judgment against other joint tortfeasors.
    See Schick v. Rodenburg, 
    397 N.W.2d 464
    , 467-68 (S.D. 1986); Duncan v.
    Pennington Cnty. Hous. Auth., 
    283 N.W.2d 546
    , 550 (S.D. 1979) (citing Degan v.
    Bayman, 
    90 S.D. 400
    , 
    241 N.W.2d 703
     (1976)). For example, in determining joint
    tortfeasor status under SDCL 15-8-17 in Schick, we reiterated “that [the settlement
    amount] must be so credited [against the judgment].” 397 N.W.2d at 468 (alteration
    in original). Thus, the $50,000 should be deducted from the total judgment, if any,
    not just to offset compensatory damages.
    [¶29.]       5.     Current procedural rules allow for seating an alternate
    juror by lot.
    [¶30.]       Supreme Court Rule 06-42 codified in SDCL 15-6-47(b) allows, in
    addition to regular jurors, additional jurors to “be called and impaneled to sit as
    alternate jurors.” Alternate jurors are seated to replace regular jurors who “prior to
    the time the jury retires to consider its verdict, become or are found to be unable or
    disqualified to perform their duties.” Id. Under this Rule, the alternate jurors are
    chosen “in the order in which they are called.” Id. An additional Rule, at issue
    here, allows the judge to select “alternate jurors by lot.” The Rule provides:
    In addition to the method of choosing or seating an alternate
    juror provided by § 15-6-47(b), the judge may choose the
    alternate jurors by lot, or by such other means as the parties
    agree on the record.
    SDCL 15-14-10.1. Fix argues that the Rule only allows selection by lot if the parties
    agree. Under her interpretation, the phrase “or by such other means as the parties
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    #25898, #25911
    agree on the record,” modifies the phrase “the judge may choose the alternate jurors
    by lot” and selection by lot could only be used if the parties agree. A plain reading
    of the Rule suggests otherwise. The grammatical construction of the sentence sets
    off the final phrase – “or by such other means as the parties agree on the record” –
    by a comma. The placement of the comma drives its meaning. The comma
    separates two distinct concepts, that is, picking jurors “by lot” and picking them “by
    such other means.” The second concept – “by such other means” – has a further
    qualifier – “as the parties agree on the record.” Perhaps without the comma, a
    stronger argument could be made that the parties have to agree to either method of
    picking alternate jurors. But, we have to assume the drafter’s placement of the
    comma was purposeful. Consequently, we conclude that the judge has the
    discretion to pick alternate jurors by lot.
    [¶31.]       6.     Whether costs incurred in a separate federal court
    proceeding can be taxed in this matter.
    [¶32.]       “We review an award of disbursements under an abuse of discretion
    standard.” Behrens v. Wedmore, 
    2005 S.D. 79
    , ¶ 69, 
    698 N.W.2d 555
    , 581.
    However, “[o]nly those expenses specifically authorized by statute may be taxed as
    disbursements, and although the trial court has some discretion, it must use
    cautious restraint within the statutory specifications.” 
    Id.
     (quoting Lewis v.
    Aslesen, 
    2001 S.D. 131
    , ¶ 10, 
    635 N.W.2d 744
    , 747 (additional citations omitted)).
    [¶33.]       If costs are again an issue on retrial, we caution the trial court, before
    awarding costs, to require a showing that the costs were “necessary expenditures
    ‘incurred in gathering and procuring evidence or bringing the matter to trial’” and
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    #25898, #25911
    only award the prevailing party expenses and charges that are of the same general
    kind as the
    costs of telephonic hearings, costs of telephoto or fax charges,
    fees of witnesses, interpreters, translators, officers, printers,
    service of process, filing, expenses from telephone calls, copying,
    costs of original and copies of transcripts and reporter’s
    attendance fees, court appointed experts . . . .
    DeHaven v. Hall, 
    2008 S.D. 57
    , ¶ 52, 
    753 N.W.2d 429
    , 445 (quoting SDCL 15-17-37).
    [¶34.]        Because the trial court provided the jury with the incorrect legal
    standard for the recovery of emotional damages, we reverse and remand for trial.
    [¶35.]        GILBERTSON, Chief Justice, and KONENKAMP, ZINTER, and
    SEVERSON, Justices, concur.
    [¶36.]        WILBUR, Justice, did not participate.
    -15-
    

Document Info

Docket Number: 25898, 25911

Citation Numbers: 2011 S.D. 80, 807 N.W.2d 612, 2011 SD 80, 2011 S.D. LEXIS 137, 2011 WL 6015757

Judges: Gilbertson, Konenkamp, Meierhenry, Severson, Wilbur, Zinter

Filed Date: 11/30/2011

Precedential Status: Precedential

Modified Date: 11/12/2024

Authorities (15)

Wangsness v. Builders Cashway, Inc. , 2010 S.D. LEXIS 13 ( 2010 )

State Ex Rel. Department of Transportation v. Spiry , 1996 S.D. LEXIS 14 ( 1996 )

Bertelsen v. Allstate Insurance Co. , 2011 S.D. LEXIS 13 ( 2011 )

Bean v. Best , 77 S.D. 433 ( 1958 )

DeHaven v. Hall , 2008 S.D. LEXIS 86 ( 2008 )

Lewis v. Aslesen , 2001 S.D. LEXIS 154 ( 2001 )

State v. Cottier , 2008 S.D. LEXIS 122 ( 2008 )

Citibank (S.D.), N.A. v. Hauff , 2003 S.D. LEXIS 127 ( 2003 )

Maryott v. First National Bank of Eden , 2001 S.D. LEXIS 43 ( 2001 )

Harris v. Jefferson Partners, L.P. , 2002 S.D. LEXIS 149 ( 2002 )

Schoon v. Looby , 2003 S.D. LEXIS 151 ( 2003 )

Anderson v. First Century Federal Credit Union , 2007 S.D. LEXIS 131 ( 2007 )

Roth v. Farner-Bocken Co. , 2003 S.D. LEXIS 108 ( 2003 )

Degen v. Bayman , 90 S.D. 400 ( 1976 )

Fix v. First State Bank of Roscoe , 559 F.3d 803 ( 2009 )

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