843 N.W.2d 334
S.D.2014Background
- Humble sued Wyant for specific performance of Humble's option to purchase Humble Ranch; Wyant counterclaimed for rent.
- Ranch is 4,820 acres in Perkins County, owned by Wyant since 2005; Humble is a family member who sought to exercise the option.
- In 2005, Wyant bought out Bruce and Bessie Humble interests and granted Humble a two-year option to purchase; Casey (Humble's son) occupied the ranch.
- Option required a Purchase Agreement within 30 days after exercise, seller's right to match financing, and closing within six months but before option expiry.
- Humble exercised the option in June 2006; no purchase agreement or matching financing occurred before the January 10, 2008 expiry; discussions and partial financing terms occurred in 2006–2007; the option expired without a signed purchase agreement.
- Court denied specific performance and awarded rent to Wyant on counterclaim; Humble appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether specific performance was proper given missed conditions. | Humble | Wyant | No; court reasonably denied due to material noncompliance by Humble. |
| Whether Humble partially performed and the partial-performance exception applies. | Humble | Wyant | Remand for findings on partial performance and full compensation feasibility. |
| Whether there was a valid express or implied rent obligation. | Humble | Wyant | Rent claim rejected; no express contract; no viable implied contract with Humble; if any, with Casey. |
Key Cases Cited
- Advanced Recycling Sys., L.L.C. v. Se. Props. Ltd. P’ship, 2010 S.D. 70 (S.D. 2010) (early-stage option contract becomes bilateral upon acceptance)
- Kuhfeld v. Kuhfeld, 292 N.W.2d 312 (S.D. 1980) (specific performance requires mutuality and full compliance with conditions)
- Renner v. Crisman, 80 S.D.532 (S.D. 1964) (early authority on conditions precedent and specific performance)
- Lamar Adver. of S.D., Inc. v. Heavy Constructors, Inc., 745 N.W.2d 371 (S.D. 2008) (equitable balancing governs specific performance; abuse-of-discretion review)
