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Tolle v. Lev
804 N.W.2d 440
S.D.
2011
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Background

  • Cindy Tolle sues Peter Lev for damages for failure to transfer a government-owned cabin located in Grand Teton National Park and for tortious interference with her Exum employment.
  • Purchase of Lawrence County property by Lev and Coolidge in 2000; oral agreement allegedly required Lev to transfer the cabin when he retired from Exum.
  • Written sale documents (May 18, 2000 agreement and August 17, 2000 warranty deed) did not mention the cabin; the agreement contained an integration clause.
  • In 2005, Lev acknowledged an oral agreement to transfer the cabin by email; he later sold the cabin to his niece in 2009 for $1,000 after leaving Exum.
  • Circuit court granted summary judgment: (a) promissory estoppel barred by statute of frauds/merger/parol evidence; (b) tortious interference claim lacked genuine issues of material fact.
  • Tolle appeals the dismissals on promissory estoppel and tortious interference.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Promissory estoppel viability Tolle argues the 2005 email satisfied writing and collateral collateral contract. Lev contends statute of frauds, merger, and parol evidence bar enforcement. Promissory estoppel claim reversed; collateral contract exception applies.
Merger and collateral contract effect Oral cabin transfer was collateral to the land sale and not merged by the integration clause. Integration clause/comprehensive writing bars separate obligations. Collateral contract exception applies; merger does not defeat claim.
Statute of Frauds applicability 2005 email satisfies writing requirement for a contract to transfer personal property. Statute of frauds bars oral agreements under SDCL 53-8-2 and 53-8-2(3). Writing requirement satisfied for personal property; statute of frauds not bar under collateral contract theory.
Tortious interference with Exum employment Lev's emails and board communications interfered with Tolle's employment relationship with Exum. No evidence Lev knew of the employment offer or acted with intent to interfere; communications concerned cabin prices. Tortious interference claim affirmed as untenable; circuit court affirmed summary judgment on this claim.

Key Cases Cited

  • Johnson v. Sellers, 2011 S.D. 24 (2011) (summary judgment de novo standard; facts viewed in light favor of nonmoving party)
  • DRD Enters., L.L.C. v. Flickema, 2010 S.D. 88 (2010) (summary judgment burdens and evidentiary standards)
  • Northstream Invs., Inc. v. 1804 Country Store Co., 2007 S.D. 93 (2007) (parol evidence and merger principles in contract disputes)
  • Hammerquist v. Warburton, 458 N.W.2d 773 (S.D. 1990) (tests for collateral contract analysis)
  • Estate of Fisher v. Fisher, 2002 S.D. 62 (2002) (merger doctrine and integration clause effects)
  • Hofeldt v. Mehling, 658 N.W.2d 783 (2003) (parol evidence rule applicability post-contract formation)
  • Jacobson v. Gulbransen, 623 N.W.2d 84 (2001) (statute of frauds writing requirement and promissory estoppel exceptions)
  • United Bldg. Centers v. Ochs, 781 N.W.2d 79 (2010) (summary judgment standard and evidentiary burdens in SD)
Read the full case

Case Details

Case Name: Tolle v. Lev
Court Name: South Dakota Supreme Court
Date Published: Sep 28, 2011
Citation: 804 N.W.2d 440
Docket Number: 25931
Court Abbreviation: S.D.