New Leaf, LLC v. FD Development of Black Hawk LLC, 2010 SD 100

In 1982, Dvoraks owned a BJ’s Country Store and fueling station in Black Hawk, SD.
The Dvoraks later sold their interest in BJ’s to family members who leased the property.
In 1995, the Dvoraks platted BJD Subdivision, creating 19 commercial lots and recording a Declaration of Restrictions prohibiting grocery sales and gasoline on any lot.
In 2006, the Dvoraks sold the land beneath BJ’s to Raymond and Roberta; FD Development later acquired Lot 17.
FD Development’s title commitment included the covenant prohibiting grocery sales, though its agent allegedly misrepresented there were no restricting restrictions.
Family Dollar opened on Lot 17 in February 2007, selling groceries in violation of the covenant; the Dvoraks sued for injunctive relief.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the covenant is valid and enforceable against Family Dollar.	Dvoraks prevailed on validity and enforceability of the covenant.	FD Development/Family Dollar contend the covenant should not restrict their operations.	Covenant valid and enforceable; resolved the merits for injunction analysis.
Whether irreparable harm and balancing of equities justify an injunction.	Injunctive relief is warranted due to breach and anticipated irreparable harm.	No irreparable harm; balance of hardships favors the defendants; injunction unwarranted.	Courts denied injunction; no abuse of discretion in balancing equities.

Harksen v. Peska, 581 N.W.2d 170 (S.D. 1998) (clear-error standard for findings; abuse of discretion in injunctive relief)
Poindexter v. Hand Cnty. Bd. of Equalization, 565 N.W.2d 86 (S.D. 1997) (judgment correct even if reasons may be erroneous)
Horne v. Crozier, 565 N.W.2d 50 (S.D. 1997) (guidance on whether injunction should issue despite other conclusions)
Knodel v. Kassel Twp., 581 N.W.2d 504 (S.D. 1998) (balancing factors for injunctive relief, including irreparable harm and hardship)