Hickey Living Trust ( 2022 )


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  • #29677-r-SRJ
    
    2022 S.D. 53
    IN THE SUPREME COURT
    OF THE
    STATE OF SOUTH DAKOTA
    ****
    IN THE MATTER OF THE
    SHIRLEY A. HICKEY LIVING TRUST.
    ****
    APPEAL FROM THE CIRCUIT COURT OF
    THE SECOND JUDICIAL CIRCUIT
    MINNEHAHA COUNTY, SOUTH DAKOTA
    ****
    THE HONORABLE JON SOGN
    Judge
    ****
    JOHN K. NOONEY
    ROBERT J. GALBRAITH
    JARED D. NOONEY of
    Nooney & Solay LLP
    Rapid City, South Dakota                    Attorneys for appellants
    Kristina Lippert and Darren
    Hickey.
    JACK H. HIEB of
    Richardson, Wyly, Wise
    Sauck & Hieb, LLP
    Aberdeen, South Dakota                      Attorneys for appellees Warren
    Hickey, Jeannine Hickey-Reuer,
    and Annette Jarrell.
    ****
    CONSIDERED ON BRIEFS
    MARCH 21, 2022
    OPINION FILED 08/24/22
    ****
    LEE SCHOENBECK of
    Schoenbeck & Erickson, P.C.
    Watertown, South Dakota              Attorneys for appellees Warren
    Hickey and Jeannine Hickey-
    Reuer.
    #29677
    JENSEN, Chief Justice
    [¶1.]          Bradley Hickey filed a petition challenging the validity of an
    amendment to the Shirley A. Hickey Trust (Trust). Nearly a year later, Kristina
    Lippert and Darren Hickey filed a motion to intervene in the petition. The circuit
    court denied the motion to intervene, finding that the motion was untimely under
    SDCL 15-6-24(a) because Kristina and Darren had failed to timely challenge the
    validity of the Trust as required by SDCL 55-4-57(a). Kristina and Darren filed a
    motion for clarification and reconsideration, requesting the court to reconsider the
    denial of the motion to intervene and to clarify their ability to participate in
    discovery and at trial. The circuit court denied the motion for reconsideration and
    determined Kristina and Darren could not participate in the trial through the
    presentation of evidence and the examination of witnesses. Kristina and Darren
    appeal the denial of their motion to intervene and the denial of their motion for
    clarification and reconsideration. We reverse, vacate a portion of the order denying
    the motion for clarification and reconsideration, and remand for further
    proceedings.
    Facts and Procedural History
    [¶2.]          Shirley and Clifford Hickey were married in 1956. They had eight
    children: Jeannine Hickey-Reuer, Vance Hickey, Bradley, Michelle Hoesing,
    Terence Hickey, Warren Hickey, Darren, and Kristina. Shirley and Clifford owned
    and operated several successful businesses and accumulated significant assets
    during their lifetimes. Clifford died in 2007. Shirley established the Trust on
    March 22, 2010, and transferred substantially all of her assets into the Trust. The
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    Trust provided that upon Shirley’s death, each of her eight children would receive
    an equal share in the Trust. Shirley amended the Trust several times before her
    death.
    [¶3.]          Shirley initially amended and restated the Trust (First Amended
    Trust) in September 2016. The First Amended Trust distributed some real property
    to a separate trust and provided that upon Shirley’s death, the Trust corpus would
    be divided equally among her eight children. The First Amended Trust named
    Shirley and Kristina as co-trustees. In 2017, Kristina petitioned to place Shirley
    under a guardianship and conservatorship and requested to be appointed as
    Shirley’s guardian and conservator. 1 Bradley, Vance, Michelle, Terence, and
    Darren also supported the petition. A circuit court judge ultimately denied
    Kristina’s petition.
    [¶4.]          Shirley’s relationship with the children who had supported the
    guardianship became strained. In January 2018, Shirley removed Kristina as a co-
    trustee of the Trust. Shirley amended and restated the First Amended Trust,
    creating the Second Amended Trust in February 2018. Shirley named herself and
    First National Bank as the co-trustees of the Second Amended Trust. The Second
    Amended Trust directed the trustee, upon Shirley’s death, to distribute $1,000 each
    to Bradley, Vance, Michelle, Terence, Darren, and Kristina, and to distribute
    certain real property to a separate trust. The remainder of the trust corpus was to
    1.       Kristina petitioned for guardianship and conservatorship after learning that
    Shirley, on behalf of the Trust, signed a promissory note in favor of Warren
    for the sum of $4,000,000.
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    be divided equally into one-third shares and distributed to Warren and his wife Deb
    Crawford, Jeannine, and Shirley’s sister, Annette Jarrell.
    [¶5.]        Shirley died on September 12, 2019. Per the terms of the Second
    Amended Trust, the Trust became irrevocable and First National Bank became the
    sole trustee. On September 25, 2019, First National Bank sent letters to the
    beneficiaries of the Second Amended Trust, including Kristina and Darren,
    providing notice of the 60-day limitation period to challenge the validity of the
    Second Amended Trust under SDCL 55-4-57(a).
    [¶6.]        On November 22, 2019, Bradley filed a petition for court supervision of
    the Trust, an accounting, protection of privacy, and a declaration of invalidity,
    reformation and modification of the Trust (Petition). The Petition requested the
    court to invalidate the Second Amended Trust, alleging undue influence by Warren.
    Alternatively, the Petition alleged claims of mistake of fact and undue influence and
    requested the court to reform or modify the Second Amended Trust to distribute the
    Trust pursuant to the First Amended Trust to properly reflect Shirley’s lifelong
    intent to equally divide her estate between all eight children. None of the other
    siblings filed a petition challenging the validity of the Second Amended Trust.
    [¶7.]        The court granted the request for court supervision of the Second
    Amended Trust pursuant to SDCL 21-22-9. On June 18, 2020, the court entered a
    scheduling order for the litigation involving the Petition. On October 12, 2020,
    Kristina and Darren filed a motion to intervene (Motion) in the Petition. The
    Motion asserted that Kristina and Darren were entitled to intervene as a matter of
    right pursuant to SDCL 15-6-24(a)(2). They argued that as beneficiaries of the
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    Second Amended Trust they had an interest in the litigation because the Petition
    sought to invalidate or reform the Trust to equally divide the Trust assets between
    Shirley’s eight children. The Motion further alleged that Bradley was not
    adequately protecting Kristina’s and Darren’s interests in the litigation because
    they believed Warren, alone or with one or more of the other residuary
    beneficiaries, was attempting to settle the Petition to the exclusion of Kristina and
    Darren. Kristina and Darren also claimed that Bradley had refused to enter into an
    agreement to divide any monies received from litigation evenly among the
    beneficiaries who were to receive $1,000 under the Second Amended Trust and that
    there was other adverse, pending litigation between the siblings.
    [¶8.]         Warren, Jeannine, and Annette opposed the Motion, arguing that it
    was untimely under SDCL 15-6-24(a)(2). 2 Warren, Jeannine, and Annette argued
    that under SDCL 55-4-57(a), Kristina and Darren had 60 days after First National
    Bank provided notice to challenge the Second Amended Trust, and because the
    Motion was filed outside the 60-day period, they were prohibited from intervening.
    In response, Kristina and Darren asserted that they timely intervened as interested
    parties under SDCL 15-6-24(a)(2) once they learned that Bradley was no longer
    protecting their interests and also asserted that Warren, Jeannine, and Annette
    had failed to identify any prejudice arising from intervention.
    [¶9.]         Kristina and Darren served discovery requests on Warren on
    November 13, 2020. The discovery requests sought financial and tax information
    2.      Neither Bradley nor First National Bank took a position on the Motion and
    neither have taken a position in this appeal.
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    from Warren from 1988 to 2010. Warren filed a motion for a protective order to
    prohibit the discovery requests. Kristina and Darren also filed a motion to amend
    the scheduling order seeking to extend the discovery deadline, which Warren,
    Jeannine, and Annette opposed.
    [¶10.]       On April 15, 2021, the court denied the Motion. The court concluded
    that Kristina and Darren satisfied the tripartite test from Berbos v. Berbos, 
    2018 S.D. 82
    , ¶ 7, 
    921 N.W.2d 475
    , 477, but determined the Motion was untimely under
    SDCL 55-4-57(a) because it was not filed within 60 days after First National Bank
    provided notice to the beneficiaries of the repose period to challenge the validity of
    the Second Amended Trust. The court also entered a protective order prohibiting
    the discovery sought by Kristina and Darren and entered an order determining that
    Kristina and Darren’s motion to modify the scheduling order was moot.
    [¶11.]       On April 27, 2021, Kristina and Darren filed a motion for clarification
    and reconsideration of the circuit court’s orders denying the Motion, granting the
    protective order, and denying the motion to amend the scheduling order. Kristina
    and Darren also sought clarification as to whether they would be allowed to present
    evidence or examine witnesses at the trial.
    [¶12.]       The circuit court denied the motion for clarification and
    reconsideration on June 2, 2021. The order specified that Kristina and Darren
    would not be allowed to present evidence or examine witnesses at the time of trial.
    The court also denied the portion of the motion requesting reconsideration of the
    protective order and the order denying the request to amend the scheduling order.
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    [¶13.]       Kristina and Darren appeal, arguing that the circuit court erred in
    denying the Motion as untimely and in denying their motion for clarification and
    reconsideration.
    Analysis
    [¶14.]       “We review a circuit court’s denial of a motion to intervene for an
    abuse of discretion.” Berbos, 
    2018 S.D. 82
    , ¶ 5, 
    921 N.W.2d at 477
    . “An abuse of
    discretion refers to a discretion exercised to an end or purpose not justified by, and
    clearly against reason and evidence.” 
    Id.
     (quoting O’Day v. Nanton, 
    2017 S.D. 90
    ,
    ¶ 17, 
    905 N.W.2d 568
    , 572). “[S]tatutory interpretation and application are
    questions of law, and are reviewed by this Court under the de novo standard of
    review.” In re Est. of Flaws, 
    2016 S.D. 61
    , ¶ 12, 
    885 N.W.2d 580
    , 583 (citation
    omitted).
    I.     Appellate Jurisdiction
    [¶15.]       Warren, Jeannine, and Annette acknowledge that this Court has
    jurisdiction under SDCL 15-26A-3(2) to consider the appeal from the circuit court’s
    order denying the Motion. See Southard v. Hansen, 
    342 N.W.2d 231
    , 233 (S.D.
    1984) (holding that an appeal could be taken from an order denying intervention).
    However, they argue the Court lacks jurisdiction to consider Kristina and Darren’s
    appeal of the order denying the motion for clarification and reconsideration. To
    support their argument, Warren, Jeannine, and Annette cite People ex rel.
    S.M.D.N., 
    2004 S.D. 5
    , ¶ 7, 
    674 N.W.2d 516
    , 517, in which we held that “an order
    dismissing a motion to reconsider entered by the circuit court does not create a new
    avenue for appeal.” “A motion for reconsideration is not a separate and appealable
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    order. Rather, it is ‘an invitation to the court to consider exercising its inherent
    power to vacate or modify its own judgment.’” 
    Id.
     (quoting Breeden v. Neb.
    Methodist Hosp., 
    598 N.W.2d 441
    , 444 (Neb. 1999)).
    [¶16.]       In S.M.D.N., we determined this Court lacked jurisdiction to consider
    an appeal of an order denying a motion to reconsider because the underlying order
    being challenged had previously been summarily affirmed by this Court and the
    statutory right to appeal the order had long since passed. 
    2004 S.D. 5
    , ¶ 7, 674
    N.W.2d at 517. S.M.D.N. properly recognized that a motion to reconsider could not
    revive the appeal period for the underlying order. Here, however, the notice of
    entry of the circuit court’s order denying the Motion was not served on Kristina and
    Darren until May 12, 2021. Kristina and Darren timely appealed this order by
    filing their notice of appeal on June 8, 2021, less than 30 days after the written
    notice of entry of the order. See SDCL 15-26A-6 (“An appeal from a judgment or
    order must be taken within thirty days after the judgment or order shall be signed,
    attested, filed and written notice of entry thereof shall have been given to the
    adverse party.”).
    [¶17.]       Because the appeal of the order denying the Motion is timely, this
    Court also has appellate jurisdiction to consider any error in the order denying the
    motion for clarification and reconsideration to the extent it implicates our appellate
    jurisdiction under SDCL 15-26A-3(2), relating to the order denying the Motion. See
    Southard, 342 N.W.2d at 233. In particular, this Court may exercise appellate
    jurisdiction under SDCL 15-26A-3(2) over the portion of the clarification order
    denying Kristina and Darren the ability to participate at trial, as that order is a
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    direct extension of the earlier order denying intervention that was timely appealed
    by Kristina and Darren. 3
    II.    Whether the circuit court abused its discretion in
    denying Kristina and Darren’s Motion as untimely.
    [¶18.]         “South Dakota’s court rule SDCL 15-6-24(a)(2) is almost identical to
    Federal Rule of Civil Procedure 24(a) . . . [and] governs intervention as a matter of
    right[.]” Berbos, 
    2018 S.D. 82
    , ¶ 6, 
    921 N.W.2d at 477
     (quoting In re Est. of Olson,
    
    2008 S.D. 126
    , ¶ 5, 
    759 N.W.2d 315
    , 318). SDCL 15-6-24(a) provides:
    Upon timely application anyone shall be permitted to intervene
    in an action:
    ...
    (2) When the applicant claims an interest relating to the
    property or transaction which is the subject of the action and he
    is so situated that the disposition of the action may as a
    practical matter impair or impede his ability to protect that
    interest, unless the applicant’s interest is adequately
    represented by existing parties.
    (Emphasis added.) This Court construes SDCL 15-6-24(a)(2) liberally and
    “resolve[s] all doubts in favor of the proposed intervenors.” Berbos, 
    2018 S.D. 82
    ,
    ¶ 7, 
    921 N.W.2d at 477
     (citation omitted).
    3.       Though, as we have stated, an order denying a motion for reconsideration
    generally does not provide an independent basis for appellate jurisdiction, the
    circuit court’s order did not simply deny reconsideration. The court’s order
    clarified the order denying intervention by prohibiting participation at trial
    by counsel for Kristina and Darren. Whether this aspect of the order would
    be appealable in its own right is an unsettled question that we need not
    resolve here, given our view that the court’s decision restricting Kristina and
    Darren’s participation is reviewable as part of the court’s decision denying
    their intervention.
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    [¶19.]        When applying intervention as a matter of right under SDCL 15-6-
    24(a), we utilize a tripartite test:
    1) the party must have a recognized interest in the subject
    matter of the litigation; 2) that interest must be one that might
    be impaired by the disposition of the litigation; and 3) the
    interest must not be adequately protected by the existing
    parties.
    
    Id.
     (citation omitted). Additionally, the language of the rule requires that “[a]n
    application to intervene must be timely made. Whether such requirement is
    satisfied is committed to the sound discretion of the trial court.” Weimer v.
    Ypparila, 
    504 N.W.2d 333
    , 334 (S.D. 1993) (citation omitted).
    [¶20.]        The circuit court found that Kristina and Darren met the tripartite
    test applied to SDCL 15-6-24(a)(2) for intervention as a matter of right, and neither
    party has challenged that determination on appeal. Therefore, the only question
    before this Court is whether Kristina and Darren timely applied for intervention
    under SDCL 15-6-24(a)(2).
    [¶21.]        Kristina and Darren argue that the circuit court erred in denying their
    Motion as untimely under SDCL 15-6-24(a)(2) because they filed their Motion as
    soon as they learned that Bradley was no longer protecting their interests. They
    cite our decision in Weimer where we explained that the timeliness for a motion to
    intervene “does not turn on when [the party] first became aware of the action, but
    rather on how quickly it acted once it learned that its interests were not protected
    by the existing parties.” 504 N.W.2d at 335 (citation omitted). Warren, Jeannine,
    and Annette respond that the circuit court properly denied the Motion as untimely
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    because Kristina and Darren could not challenge the Second Amended Trust after
    the repose period expired under SDCL 55-4-57(a).
    [¶22.]       SDCL 55-4-57(a) provides in relevant part:
    A judicial proceeding to contest whether a revocable trust or any
    amendment thereto, or an irrevocable trust was validly created
    may not be commenced later than the first to occur of:
    (1) One year after the settlor’s death; [or]
    (2) Sixty days after the trustee . . . sent the person who is
    contesting the trust a copy of the trust instrument and a
    notice informing the person of the trust’s existence, of the
    trustee’s name and address, and of the time allowed for
    commencing a proceeding[.]
    SDCL 55-4-57(a) is a statute of repose. Matter of Elizabeth A. Briggs Revocable
    Living Tr., 
    2017 S.D. 40
    , ¶ 9, 
    898 N.W.2d 465
    , 469. “SDCL 55-4-57(a)(1) bars claims
    contesting the validity of revocable and irrevocable trusts one year after the settlor’s
    death, regardless of when the injury arose or when the person received notice.” In re
    Wintersteen Revocable Tr. Agreement, 
    2018 S.D. 12
    , ¶ 27, 
    907 N.W.2d 785
    , 793
    (quoting Briggs, 
    2017 S.D. 40
    , ¶ 9 n.5, 
    898 N.W.2d at
    469 n.5). “[W]ith the
    expiration of the period of repose, the putative cause of action evanesces; life cannot
    thereafter be breathed back into it.” Wintersteen, 
    2018 S.D. 12
    , ¶ 27, 907 N.W.2d at
    793–94 (alteration in original) (citation omitted). “[E]quitable tolling [may not be]
    invoked to alleviate a claimant from a loss of his right to proceed with a claim.”
    Briggs, 
    2017 S.D. 40
    , ¶ 12, 
    898 N.W.2d at 470
     (second alteration in original); see
    also Pitt-Hart v. Sanford USD Med. Ctr., 
    2016 S.D. 33
    , ¶ 20, 
    878 N.W.2d 406
    , 413
    (explaining that a statute of repose can “not be tolled for any reason” (citation
    omitted)). “[T]he purpose of SDCL 55-4-57(a) is to facilitate the expeditious
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    administration of trusts by limiting the time period to commence a trust contest.”
    Briggs, 
    2017 S.D. 40
    , ¶ 13, 
    898 N.W.2d at 470
    .
    [¶23.]         To the extent that Kristina and Darren sought to intervene to assert
    an independent claim challenging the validity of the Second Amended Trust, that
    effort was untimely and barred by SDCL 55-4-57(a). 4 First National Bank provided
    notice to the beneficiaries of the Second Amended Trust on September 25, 2019,
    commencing a 60-day repose period under SDCL 55-4-57(a)(2). Kristina and
    Darren did not challenge the validity of the Second Amended Trust within 60 days
    after they received notice.
    [¶24.]         However, the circuit court did not consider whether, under the
    timeliness standards applicable to requests under SDCL 15-6-24(a)(2), Kristina and
    Darren were precluded from intervening to join in the Petition filed by Bradley. We
    have emphasized that intervention “is strictly procedural.” Southard, 
    342 N.W.2d 4
    .       In Police & Fire Ret. Sys. of City of Detroit v. IndyMac MBS, Inc., 
    721 F.3d 95
    , 102 (2d Cir. 2013), the lead plaintiff, a state retirement system, filed a
    class action for claims arising from the purchase of securities from the
    defendant. The claims arose from the similar securities purchased by other,
    unrelated governmental retirement systems (putative class members), who
    were not named parties. 
    Id.
     at 102–03. The lower court dismissed certain
    claims on behalf of the putative class members, determining the lead plaintiff
    lacked standing. 
    Id. at 103
    . Following the dismissal of the claims and the
    expiration of the statute of repose under federal law, the putative class
    members sought to intervene in the action to revive their claims. 
    Id. at 104
    .
    The court denied intervention, determining that the claims could not be
    equitably tolled or relate back to the time of the filing of the class action
    under the repose statute and holding that “absent circumstances that would
    render the newly asserted claims independently timely,” intervention is not
    permissible “in order to revive claims that were dismissed from the class
    action complaint for want of jurisdiction.” 
    Id.
     at 111–12. We conclude the
    same rule applies under the repose statute in SDCL 55-4-57(a) to any
    independent claim by Kristina and Darren to challenge the Trust.
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    at 234 (citation omitted). Intervention “creat[es] an opportunity to persons directly
    interested in the subject matter to join in an action or proceeding already
    instituted.” Berbos, 
    2018 S.D. 82
    , ¶ 7, 
    921 N.W.2d at 477
     (emphasis added) (citation
    omitted). Under our procedural intervention rule, “[a]n intervenor’s presence in the
    action does not necessarily ‘clothe it with the status of an original party.’” 5 Citibank
    (S.D.), N.A. v. State, 
    1999 S.D. 124
    , ¶ 11, 
    599 N.W.2d 402
    , 405 (quoting Harris v.
    Amoco Prod. Co., 
    768 F.2d 669
    , 675 (5th Cir. 1985)). Nevertheless, intervention
    allows their “voice . . . to be heard” by the court. 
    Id.
     (citation omitted).
    [¶25.]         In denying the Motion as untimely, the circuit court relied on
    Wintersteen, but Wintersteen did not address the question of whether a beneficiary
    with a recognized interest in a properly filed challenge to a trust may intervene in
    the proceeding after the repose period has run. Rather, in Wintersteen, this Court
    concluded that a widow could not amend her original petition for court supervision
    of her deceased husband’s trust to include a belated challenge to the validity of the
    trust that was otherwise barred by SDCL 55-4-57(a). 
    2018 S.D. 12
    , ¶ 27, 907
    N.W.2d at 793.
    5.       It is unclear whether intervention would provide Kristina and Darren with
    any different status in the litigation involving the Petition than they already
    have as beneficiaries under SDCL 21-22-13 “as to any matter relevant to the
    administration of the trust[.]” See also Matter of Russell I. Carver Revocable
    Tr., 
    2020 S.D. 31
    , ¶ 32, 
    944 N.W.2d 808
    , 816 (noting that under provisions in
    SDCL chapter 21-22, interested parties must be given notice of the
    proceedings and an opportunity to object and be heard). The parties have not
    addressed Kristina and Darren’s participation under SDCL 21-22-13.
    Therefore, in this appeal we consider only the issues involving their Motion
    under SDCL 15-6-24(a)(2).
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    [¶26.]       Unlike Wintersteen, Bradley’s Petition challenging the validity of the
    Second Amended Trust was commenced before the statute of repose in SDCL 55-4-
    57(a) had expired. Kristina and Darren have a recognized interest in the Petition
    that was timely instituted, as the remedies sought by the Petition directly impact
    them. Therefore, the circuit court erred by denying the Motion as untimely under
    SDCL 55-4-57(a).
    [¶27.]       The circuit court also erred in denying the portion of Kristina and
    Darren’s motion for clarification and reconsideration seeking to participate in the
    trial. The court had already entered an order for court supervision of the Trust.
    See SDCL 21-22-9 (allowing trustors, fiduciaries, and beneficiaries to request the
    court to exercise supervision of the trust). SDCL 21-22-13 treats beneficiaries of a
    trust as interested parties after an order for court supervision is entered. Under the
    trust statutes, Kristina and Darren, as beneficiaries, are interested parties in “any
    matter relevant to the administration of the trust[.]” SDCL 21-22-13. By denying
    the request from Kristina and Darren to participate in the trial proceedings, the
    circuit court improperly placed Kristina and Darren at a disadvantage relative to
    the other beneficiaries who did not seek intervention.
    [¶28.]       Warren, Jeannine, and Annette nevertheless argue that intervention
    would allow Kristina and Darren to step into Bradley’s shoes and litigate their
    time-barred claims, undermining the purpose of SDCL 55-4-57(a). However, this
    misapprehends the procedural nature of SDCL 15-6-24(a)(2). Southard, 342
    N.W.2d at 233–34. An order granting intervention does not create additional
    substantive claims for the intervening party, but rather permits a party to join an
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    existing action in which the intervenor has an interest. Berbos, 
    2018 S.D. 82
    , ¶ 7,
    
    921 N.W.2d at 477
    ; see also IndyMac MBS, Inc., 
    721 F.3d at 109
     (explaining that
    the expiration of a statute of repose extinguishes the intervenors’ right to revive
    independent claims and that the proposed intervenors do not have any other
    recognized interest in the pending litigation).
    [¶29.]       There is no dispute that Kristina and Darren have a recognized
    interest in Bradley’s Petition and have satisfied the tripartite test for mandatory
    intervention applicable to requests under SDCL 15-6-24(a). Therefore, the question
    of timeliness must be considered in the context of SDCL 15-6-24(a). The timeliness
    of the Motion under SDCL 15-6-24(a) turns on “how quickly [Kristina and Darren]
    acted once [they] learned that [their] interests were not protected by [Bradley].”
    Weimer, 504 N.W.2d at 335 (citation omitted). “[T]he most important factor is
    whether the delay in moving for intervention will unduly delay or prejudice the
    adjudication of the rights of the original parties.” Larson v. All-American
    Transport, Inc., 
    83 S.D. 622
    , 
    164 N.W.2d 603
    , 606 (1969). “[I]ntervention standards
    are flexible, allowing for some tailoring of decisions to the facts of each case.”
    Berbos, 
    2018 S.D. 82
    , ¶ 7, 
    921 N.W.2d at 477
     (citation omitted). Because the circuit
    court failed to consider the timeliness of the Motion applying the intervention
    standards under SDCL 15-6-24(a), we reverse the court’s order denying
    intervention.
    [¶30.]       Warren, Jeannine, and Annette argue that allowing Kristina and
    Darren to intervene in the Petition would be prejudicial and cause undue delay,
    where there had already been months of time-consuming and expensive discovery.
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    The circuit court seems to have alleviated some of these concerns by entering a
    protective order and denying the request to modify the scheduling order. However,
    it is not apparent from the record that the circuit court considered whether the
    other beneficiaries would be prejudiced if Kristina and Darren intervened. While
    the court has discretion to determine timeliness of an application for intervention,
    “[t]he most important factor” for the court to consider in making this determination
    “is whether the delay in moving for intervention will unduly delay or prejudice the
    adjudication of the rights of the original parties.” Larson, 
    164 N.W.2d at 606
    ; see
    Weimer, 504 N.W.2d at 336 (granting intervention because a party would not have
    suffered any prejudice from allowing a party to intervene). On remand, the court
    may consider any further prejudice concerns, and if the court grants intervention, it
    may appropriately “tailor” the intervention order to facilitate the expeditious
    administration of the Trust and address any alleged prejudice. See In re Adoption
    of D.M., 
    2006 S.D. 15
    , ¶ 4, 
    710 N.W.2d 441
    , 443 (“We have emphasized . . . ‘that
    intervention standards are flexible, allowing for some tailoring of decisions to the
    facts of each case.’” (citation omitted)).
    Conclusion
    [¶31.]        We reverse the order denying intervention and remand for the circuit
    court to consider the timeliness of Kristina and Darren’s request to intervene under
    the standards set forth in SDCL 15-6-24(a)(2). We also vacate the portion of the
    circuit court’s order on the motion for clarification and reconsideration, denying the
    request by Kristina and Darren to participate at the trial, and direct the court to
    reconsider this order after reconsidering their request for intervention.
    -15-
    #29677
    [¶32.]   KERN, SALTER, DEVANEY, and MYREN, Justices, concur.
    -16-
    

Document Info

Docket Number: #29677-r-SRJ

Filed Date: 8/24/2022

Precedential Status: Precedential

Modified Date: 5/29/2024