First Lady, LLC v. JMF Properties, LLC

Summary

The Supreme Court of South Dakota reversed and remanded a nuisance judgment involving alleged diversion of surface water from an upper property onto an adjacent motel property. The court held that the trial court failed to determine whether the civil-law drainage rule or reasonable-use rule applied and whether the defendant's conduct or resulting harm was unreasonable. The court also upheld the denial of attorney fees because the motel's claims were not frivolous.

Holdings

1. The circuit court erred by imposing nuisance liability without determining whether the civil-law drainage rule or the reasonable-use rule applied, whether the drainage involved a natural or established watercourse, and whether JMF's conduct or resulting harm was unreasonable.
2. JMF was not entitled to attorney fees and costs because First Lady's nuisance claim was not frivolous, and the circuit court did not abuse its discretion in denying the request.

Questions Presented

1. Whether the circuit court erred in concluding that JMF Properties' use and husbandry of its land created a nuisance by diverting surface water onto First Lady's property.
2. Whether JMF Properties was entitled to attorney fees and costs under SDCL 15-17-51.

Disposition

reversed_and_remanded