24 N.W.3d 108
S.D.2025Background
- Bighorn Construction (Bighorn) and JED Spectrum (JED) filed mechanic’s liens against property owned by Stoakes, following disputed payments for construction work and a shared well system.
- Stoakes claimed he paid Bighorn in full via a check marked as a lien waiver, which Bighorn refused to cash due to concerns about waiving other claims; JED also demanded payment for well infrastructure, which Stoakes disputed.
- Bighorn and JED sued to foreclose on their liens; Stoakes counterclaimed for slander of title against both and other contract-related claims.
- The trial court ruled against Bighorn and JED on lien foreclosure, held for Stoakes on slander of title and promissory estoppel (later reversed), and awarded substantial damages and attorney’s fees to Stoakes.
- Bighorn and JED appealed, challenging the slander of title rulings, damages calculation, and statutory fee awards; Stoakes cross-appealed on promissory estoppel and attorney’s fees reductions.
- The Supreme Court reversed the slander of title awards and SDCL 44-9-22 findings, affirmed the denial of promissory estoppel, and upheld a reduced attorney’s fee award for Stoakes.
Issues
| Issue | Stoakes’s Argument | Bighorn/JED’s Argument | Held |
|---|---|---|---|
| Slander of Title | Liens were false and filed with malice to harm him | Believed liens valid, filed in good faith | For Bighorn/JED |
| Statutory Violation (44-9-22) | Bighorn owed satisfaction after full payment demand | No satisfaction owed as check was never cashed | For Bighorn/JED |
| Damages Calculation | Damages should include increased mortgage costs | Damages were speculative, should be reduced to PV | Not reached |
| Promissory Estoppel | Relied on promise for ownership in well system | Stoakes not substantially harmed, no $24,000 paid | For Bighorn/JED |
Key Cases Cited
- Gregory’s, Inc. v. Haan, 545 N.W.2d 488 (S.D. 1996) (sets standard for slander of title, including state of mind and elements)
- Brown v. Hanson, 798 N.W.2d 422 (S.D. 2011) (addresses standard for malice in slander of title cases)
- Tibke v. McDougall, 479 N.W.2d 898 (S.D. 1992) (discusses definition of malice and reckless disregard in defamation)
- Kieser v. Southeast Props., 566 N.W.2d 833 (S.D. 1997) (further refines actual malice standard in defamation context)
- Harvey v. Reg'l Health Network, Inc., 906 N.W.2d 382 (S.D. 2018) (explains what constitutes reckless disregard for truth in malice analysis)