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Dougherty v. Beckman
347 N.W.2d 587
S.D.
1984
Check Treatment

*1 22-34-2, fense, and SDCL allows damages to be

treble recovered a civil against

action one who has violated SDCL

22-34-1. fail,

Mayrose’s contention must of our decision in K E& Land and

Cattle, (S.D. Mayer, Inc. v.

1983). In that case we held that SDCL dependent upon

22-34-2 is SDCL basis;

which is without tort the multi

ple damages provision of SDCL 22-34-2 is

inapplicable when a defendant has not been

prosecuted under SDCL 22-34-1. case,

present Mayrose admits there was no prosecution

criminal or conviction of Fend- Consequently,

rich for his acts. treble

damages cannot be awarded under SDCL

22-34-2; Mayrose entitled to the damages

actual awarded the trial court. is affirmed.

All the Justices concur. DOUGHERTY,

Richard E. Plaintiff Appellee, Henry

Patrick J. BECKMAN and

Carlson, Partnership, B & C d/b/a Appellants.

Defendants and

Nos. 14026.

Supreme Court of South Dakota.

Considered on Briefs Oct. 1983. April

Decided

Rehearing Denied June *2 plaintiff. defendants for Construction 3, 1981, completed plaintiff pay

tendered defendants as full ment for thei townhouse. Defendants re Plaintiff filed a turned the tender. com 1, 1981, asking perma plaint July on for a enjoining injunction nent defendants from disposing except through of townhouse warranty during penden- to him deed cy requested of the action. Plaintiff an spеcific performance ordering order for de convey plain property fendants to real $172,739. exchange tiff in for Defendants counterclaimed, asking that the contract parties between the be rescinded and that defendants be awarded interest on the money they had used to build the town alternative, In the plaintiff required asked that be $202,195.93, plus interest thereon from 17, 1981, April granted specific if the court performance. trial,

After the court decided that complete pur- tiff allowed to should be $196,- chase of the townhouse for total of plaintiff paid It found total of $28,400 and tendered an additional amount $144,339, totaling The court that the tender was found refused and money plaintiff returned to on June 1981. The trial court held that this tender stopped interest on this amount from 12, 1981, June but ‍​‌​​​​​​‌‌​​‌‌‌​‌​​‌‌‌‌​​‌‌‌‌​​‌​‌‌‌‌​‌‌‌‌​​‌‌​‌‍interest on the difference of should be payment, June to the date of final payment and that total would be a condi- precedent requirement specif- tion performance. provided ic court also required make that failure to specified within a time would constitute a Burke, Falls, John Sioux and would forfeiture terminate interest appellee. under the or other- wise. Boyce, Murphy, E.

James McMahon of Greenfield, Falls, McDowell & Sioux plaintiff paid After the trial to defend- appellants. defendants and $200,995, pur- ants which was the Court’s $196,400, price plus chase interest on BERNDT, Judge. Circuit purchase price from June payment. to date of The defendants CASE HISTORY conveyed property plaintiff. De- appeal disagreement This action arose from a fendants then filed a notice of of a filed a notice of review. The de- over townhouse constructed accept agreed to the terms of the appealed the issue of wheth- fendants denying them 27th letter. Defendant Beckman noted this the trial court erred er $172,- acceptance copy recovery interest on on the bottom his Plaintiffs notice of review asked defendant Carlson’s letter. purchase price to review set Court Plaintiff made even more revisions to the specific performance. trial court for plan July for the townhouse on *3 1980, 14, addition, and 1980. In October FACTS wife, requested plaintiff, or his that numer- in executed 1977 with In a contract extras All ous be added townhouse. tiff, agreed to construct town- in of these items were included the town- Falls, Dakota, “to be in South house Sioux completed ready house when it was and finished, specifications and according to occuрancy April 1981. Several dates The plans, designated as Plan No. 9-19.” finalizing property the transfer of the $142,000. upon purchase price agreed by plaintiff were set cancelled for one in- that no extras are The contract states reason or another. Defendant Beckman they are price in the unless cluded contract рlaintiff finally onmet to only extras in the contract. The set forth close the transaction. Plaintiff refused to included in the townhouse to be $202,195.93 pay by demanded defend- for, in an Adden- were set forth contracted but, completed townhouse in- ants for to the contract. dum stead, $172,739 full offered defendants as plaintiff hired architect years Two later payment. Plaintiff’s offer was refused and incorporate changes he Ward Whitwam to money all the he had to defendants plan. original to floor wished to make was returned to him on June January, made addition- Whitwam changes plan in the floor of the town- al DISCUSSION major These revisions included requiring are: The two issues resolution adding changes, such as an addi- structural (1) price The of the townhouse percent partitions, tional 12 in interior wall The interest award areas, framing in requiring double some adding square an additional 112 feet of The Price the Townhouse area, finishing

living off the entire base- and, area, adding ment additional windows the central Plaintiff’s brief concedes that finally, adding sliding additional doors. сase the amount owed issue is for the construction plaintiff to defendants willing Defendants were not to construct dispute is whether the major The work. major with these revisions townhouse $142,000 figure delineated the contract original price for the stated in the contract. $162,500 sum, binding or whether the as therefore, Carlson, wrote a let- Defendant letter, quоted February in the 27th controls (the February ter to on held that this ‍​‌​​​​​​‌‌​​‌‌‌​‌​​‌‌‌‌​​‌‌‌‌​​‌​‌‌‌‌​‌‌‌‌​​‌‌​‌‍case. The trial court letter), telling plaintiff that February 27th sum was correct. latter they construct the townhouse ac- cording plans and informa- to the revised provides guidance. piv- The contract $180,000. they tion had as of that date for language is: otal alternative, told In the defendаnt Carlson property undersigned, as Which willing plaintiff that defendants would be owner, day agent for the has this sold to plaintiff’s deposit to return buyer ... for the sum architectural fees he had incurred. price are the fol- Included in the above forth) letter, (none, lowing if not set extras:

Pursuant to defendant Carlson’s ceiling price of the meeting attorney Burke's will be the was held at John # comparable purpose meeting selling price home. If office. The plan price is less—the will be ad- discuss defendant letter of Feb- Carlson’s accordingly. Any changes minor ruary apparently justed 1980. Plaintiff fore, $162,500, court, price in the the trial

will be included home—but as found changes could effect large propеr price. structural is a base price of the home. [sic] dispute The core as to the amount began construc After defendants suit, due in this surrounded the base tion, upon substantial revi insisted —$142,000versus The costs to greatly increased the cost of sions basement, extras, as well as the finish the Thereafter, defendants sent construction. Therefore, dispute. are not the trial advising 27th letter that $196,400 justified. award of For court’s willing complete your are town “[w]e this court to reverse the trial court’s find De house for the sum of ...”. ings, they this court must find that were plaintiff adopted fendants contend this 15-6-52(a); clearly erroneous. SDCL Reif or, figure in the letter and its Smith, (S.D.1982). alternative, the contractual caveat of review, Upon the evidence and inferences *4 “large changes effecting] structural ... therefrom viewed in a must be most price” justifies applying not [sic] and, uphold favorable to the verdict if there $142,000 price. original either the Under competent and substantial evidence to letter, February 27th contract or the de verdict, support upheld.* it must be higher аppear entitled to the sum fendants contract, ($162,500). Considering first the Pre-Judgment Interest included as it is crucial that defendants A related issue is the amount now due that, along part agreement of the with a pre-judgment the defendants for interest. $142,000 price tag, “large structural empowering statute for changes could effect of the [sic] 21-1-11, provides: which intеrest is SDCL home.” Whatever the full breadth of the Every person who is entitled to recover be, phrase “large changes” may structural certain, damages capable being or certainly it would seem to embrace the calculation, by made certain and the original substantial revisions to the right to which is in him recover vested plan plaintiff dеmanded. Plaintiffs con upon particular day, is entitled also to language pre sent to the contractual now $142,- day, recover interest thereon from that any reading cludes letter black except during Therefore, such time as the debtor is the trial court’s decision to law, prevented by by or the act of the higher figure award the corrеct. creditor, paying the debt. Regardless ap America, Corp. v. Beka Lithium pears plaintiff adopted that 77 S.D. 92 N.W.2d we $162,500). (and 27th letter its offer of interpreted this statute and held: ample There is evidence in the record that plaintiff adopted $162,500price propos disputed The mere fact that the claim is Further, began al. defendants construc does not defeat the allowance of interest. Halloran, tion of the townhouse this letter was Corcoran v. 20 S.D. after acknowledged by plaintiff. applied received and 210. As N.W. to this case our If objected price, by statute construed this court in he should Hyde, have insisted that defendants Gearhart v. 39 S.D. 164 N.W. objection, cease construction. Absent such 58. The rule announced in that case is damages cannot now be heard ‍​‌​​​​​​‌‌​​‌‌‌​‌​​‌‌‌‌​​‌‌‌‌​​‌​‌‌‌‌​‌‌‌‌​​‌‌​‌‍that he did that interest is if allowable on higher figure. reasonably not consent to the There- there exists established or as- * considering by plaintiff's We this issue review could lead a denial reached or reduction of argue Sommerfeld, notice of review. Defendаnts that Siedenburg such benefits. right appeal by pay- tiff (1958). waived his the issue Had this court $200,995, ing pursuant to the trial contention, however, agreed plaintiff's with judgment. Voluntary disagree. court ceptance We ac- price of the townhouse would have decreased judgment of the benefits of a waives thereby and his benefit have would increased. right only tо review in those cases where the (if prices market or values of or certainable under the law he is entitled to subject by any matter reference to which other instrument of discharge, such lien) may discharge the amount due be determined as a he is entitled to computation. receive discharge a written to the extent paid; cаse, of the amount this if Engineering See also Northwestern Co. v. the sum tendered had been tendered Inc., Enterprises, Thunderbolt whatever, without conditions the lien (S.D.1981). N.W.2d (if destroyed have been it had been The trial court held that the amount of tendered with the condition owed defendants for plaintiff deliver a satisfaction of said lien capable construсtion of the townhouse was tendered, in the sum of the amount such being made certain calculation. The lien would destroyed). have been But court, pre- awarded defendants party under the Civil Code the has no $23,661, judgment interest on the differ- right, any more than he would have had plaintiffs ence between the law, under the common when tendering a tender of The court held that payment, require receipt in full or a plaintiff’s stopped pre- tender of lien, or, satisfaction full of the in other accruing interest from on that words, party when one honestly claim- amount, on the basis of SDCL ing greater to be due than the amount provides: party concedes, other he put cannot be perform- An offer of or other position losing the risk of his ance, made, duly though the title to the lien, only upon disputed claim, not *5 thing offered be not transferred to the upon undisputed part, but also the creditor, stops running the of interest on failing to receive the smaller amount in obligation, the and the same has effect full; right but he has the to test upon performаnce all the incidents as a claim, validity of his further and the con- thereof. dition attached to the tender must be plaintiff’s Defendants contend that such as to him leave free to contest such $172,739 tender of was insufficient to toll right. period. agree. the interest We Pittsburgh at Plate Glass 126 N.W. 274- $202,195.93 Defendants demanded as fi- 75; Savings American Federal at 329 payment May nal for the townhouse. On N.W.2d 127. 3, 1981, $172,739 plaintiff tendered as final $196,400 The trial court’s award of for payment. Defendants articulated their ob- the townhouse is affirmed. This amount jection to the tender and returned this mon- capable being made certain cal- 12, ey on June culation on June and the trial $172,739 pay Plaintiff’s tender of as full allowing prejudgment court erred in nоt ment, like the conditional tenders in Pitts interest on the full amount. We remand 256, burg Leary, Plate Glass Co. v. 25 S.D. for determination of the additional interest 126 271 N.W. American Feder 12, 1981, through from June the date of Savings al & Loan Assoc. v. Mid-America payment entry ‍​‌​​​​​​‌‌​​‌‌‌​‌​​‌‌‌‌​​‌‌‌‌​​‌​‌‌‌‌​‌‌‌‌​​‌‌​‌‍judgment against (S.D.1983), Corp., 329 N.W.2d 124 Service plaintiffs in this amount. him discharge was insufficient to from lia part, The is affirmed in re- bility prejudgment interеst on the full part, in versed and remanded. judgment: amount of the every Under the common law tender FOSHEIM, C.J., and WOLLMAN and made, in order to defeat of HENDERSON, JJ., concur. interest or to effect the incidents to the MORGAN, J., part in concurs and dis- obligation, main be unconditional. part. sents in changed party This has been so that the BERNDT, tendering payment right Judge, sitting has a to insist Circuit DUNN, J., upon rеceipt disqualified. a written of the amount MORGAN, (concurring part, in In Pittsburgh Leary, Justice Plate Glass v. (1910), part). N.W. the amount dissenting equal tendered was a sum to the value of disposition majority’s I concur with panes glass unbroken, that arrived issue, purchase price the first whereas creditor’s lien claim included the townhouse; dissent, however, pre- I on the panе. value of a broken The tender of judgment interest issue. was, however, payment upon conditioned prejudgment Whether interest under delivery of a lien waiver. In American appropriate 21-1-11 not in SDCL is- Service, Fed. Sav. v. Mid-America The issue is limited to whether the sue. (S.D.1983), N.W.2d 124 tender was erroneously limited the amount trial court mortgage, an amount due on the notes and of interest allowed because of tender. prepayment penalty less the claimed due trial court relied on SDCL by the creditor. The tender was condi- quoted majority opinion. in the The trial delivery tioned on of a satisfaction of the following findings at the court arrived McKeown, mortgage. In Eberle v. 83 S.D. fact and conclusions of lаw on this issue. the amount plus tendered was for farm land rental defendant Beckman On government price sup- landlord’s share of plaintiff that the total amount informed port payment, which latter sum was in $202,195.93. due for the townhouse was . check, dispute. The tendered time, Plaintiff, at that tendered a total acceptance bore notations that wаs “in full $172,839 payment of to defendant Beck- settlement for rent.” The fact that complete payment man as for the town- Dougherty’s tender check was characterized the trial court’s find- Pursuant to the ings as a or a pay- total final total of addition- tendered an application is immaterial ment $172,- (totalling al amount of statute since was unсonditional. 739). Bauer, (citations omitted), supra at 1292 This tender was refused and the entire Eighth Circuit noted that: returned to on June *6 recognized have Courts that an actual deposit of or an unconditional offer to stops running SDCL 20-5-18 the of inter- deposit interpleader the fund serves at est on this amount from June purposes: least two Eighth Appeals

As the (1) Circuit Cоurt of protects it the claimants from the Co., Uniroyal stated v. Bauer Tire that the surety risk stakeholder or its (8th Cir.1980): ...; F.2d will become insolvent stakeholder, prevents the who has no The South Supreme Dakota Court has fund, using claim to the the fund little opportunity interpret to section and, thus, becoming for his benefit un- 20-5-18 predecessors_ and its In or- justly expense enriched at the of the interest, stop der accruing to of claimants who have a inter- colorable tender must be an “unconditional tender” est in the fund[.] effectively deprives the stakehold- (Citations er of dominion over the fund. The unconditional tender herein left de- omitted.) deposit fendants free to check in the same manner as the check noteworthy It that the trial court did is deposited. Acceptance had been of the not find the tender was conditioned precluded tender would not have suit Indeed, any manner. the record does not the balance claimed due under the contract. disclose evidence of a condition and the distinguishable clearly case is thеrefore Let us take note that this was not a suit heavily upon by agreement promissory from the cases so relied on a or ‍​‌​​​​​​‌‌​​‌‌‌​‌​​‌‌‌‌​​‌‌‌‌​​‌​‌‌‌‌​‌‌‌‌​​‌‌​‌‍note lease majority. stipulated principal where the rental or the against clearly rate out. sum and interest were set a debtor who tendered the amount was This lawsuit is on contract which impact the crеditor claimed due.* The party’s so often claim revised that neither require therefore is decision to agreed due the trial as to amount with debtor on a peril to settle creditor’s term at final court’s determination. As I read the prejudgment paying interest on the en opinion, way majority a debtor can import statute, tire sum. The on the a successful tender when the sum make hand, permit other is the debtor to disputed, is to the full owed tender due, leaving such as he amount concedes is If this amount creditor’s demand. parties litigate only which is true, why did the in Pittsburgh courts Plate issue, due, the balance if any. Clearly the Glass, supra, Sav., supra, American Fed. opinion emasculates the statute. Eberle, suрra, the various wherein I affirm the of the trial than the amounts tendered were less court on issues. both claimed, agonize amounts creditors over conditional tender. It would issue simply have much easier to hold that been the tender less than the

because claimed, stop

amount it was insufficient prejudgment interest.

Looking at the issue in the cold rarely bring suit

reality, a creditor would * Hotel, during Widmann Smith that the tender rentals holdover it is merely ancillary N.W.2d obvious that lawsuit an issue. breaking building was centered on a lease on

Case Details

Case Name: Dougherty v. Beckman
Court Name: South Dakota Supreme Court
Date Published: Apr 25, 1984
Citation: 347 N.W.2d 587
Docket Number: 14018, 14026
Court Abbreviation: S.D.
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