Case Information
*1 #26092, #26093-dismissed-DG
IN THE SUPREME COURT
OF THE
STATE OF SOUTH DAKOTA
* * * *
(#26092)
RABO AGRIFINANCE, INC., f/k/a AG
SERVICES OF AMERICA, INC., and
RABO AGSERVICES, INC., Plaintiffs, v.
ROCK CREEK FARMS, Defendant and Appellant, and
MICHAEL ARNOLDY; ANN ARNOLDY;
and THE UNITED STATES OF AMERICA, Defendants and Appellees, v.
DAVID M. FINNEMAN AND CONNIE S.
FINNEMAN, LUTZ/LAIDLAW PARTNERSHIP;
DANIEL R. MAHONEY; SUCCESSORS IN
INTEREST TO DAVID M. FINNEMAN AND
CONNIE S. FINNEMAN, d/b/a AIRPORT
FARMS; FARM CREDIT SERVICES OF
AMERICA f/k/a FARM CREDIT SERVICES OF
THE MIDLANDS, FCLA; BLACK HILLS
FEDERAL CREDIT UNION; AXA EQUITABLE
LIFE INSURANCE COMPANY; LAIDLAW
FAMILY PARTNERSHIP; TOM J. WIPF;
AMY WIPF; JOHNNY JAY WIPF, d/b/a WIPF
FARMS; JOANN WIPF; CEN-DAK LEASING
OF NORTH DAKOTA, INC.; SHEEHAN MACK
SALES AND EQUIPMENT, INC.; FARM CAPITAL
COMPANY, LLC; PORTFOLIO RECOVERY
ASSOCIATES, LLC; PFISTER HYBRID CORN CO.;
KAUP SEED & FERTILIZER, INC.; JOYCE M.
WOLKEN; CHARLES W. WOLKEN; STAN
ANDERSON; DENNIS ANDERSON; KENT
KJERSTAD; WILLIAM J. HUBER; KENDA K.
HUBER; YU BLU SNI, LLC; U.S. BANCORP
EQUIPMENT FINANCE, INC.; KENCO INC.
d/b/a WARNE CHEMICAL & EQUIPMENT
COMPANY, INC.; DOUG KROEPLIN AG
SERVICES, INC.; CREDICO, INC. d/b/a
CREDIT COLLECTIONS BUREAU;
SCOT D. EISENBRAUN, MELODY
EISENBRAUN; BART CHENEY; HALL
OBERLANDER, KEI OBERLANDER, RAY S.
OLSEN; PATRICK X. TRASK; ROSE MARY
TRASK; PENNINGTON COUNTY, SOUTH
DAKOTA; and, MEADE COUNTY, SOUTH
DAKOTA, Defendants.
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(#26093)
RABO AGRIFINANCE, INC., f/k/a AG
SERVICES OF AMERICA, INC., and
RABO AGSERVICES, INC., Plaintiffs, v.
DAVID M. FINNEMAN; CONNIE S.
FINNEMAN, Defendants and Appellants, and
MICHAEL ARNOLDY; ANN ARNOLDY;
and THE UNITED STATES OF AMERICA, Defendants and Appellees, v.
LUTZ/LAIDLAW PARTNERSHIP;
DANIEL R. MAHONEY; SUCCESSORS IN
INTEREST TO DAVID M. FINNEMAN AND
CONNIE S. FINNEMAN, d/b/a AIRPORT FARMS;
FARM CREDIT SERVICES OF AMERICA
f/k/a FARM CREDIT SERVICES OF THE
MIDLANDS, FCLA; BLACK HILLS FEDERAL
CREDIT UNION; AXA EQUITABLE LIFE
INSURANCE COMPANY; LAIDLAW FAMILY
PARTNERSHIP; TOM J. WIPF; AMY WIPF;
JOHNNY JAY WIPF, d/b/a WIPF FARMS;
JOANN WIPF; CEN-DAK LEASING OF NORTH
DAKOTA, INC.; SHEEHAN MACK SALES AND
EQUIPMENT, INC.; FARM CAPITAL COMPANY;
LLC; PORTFOLIO RECOVERY ASSOCIATES, LLC;
PFISTER HYBRID CORN CO.; KAUP SEED &
FERTILIZER, INC.; JOYCE M. WOLKEN; CHARLES
W. WOLKEN; STAN ANDERSON; DENNIS
ANDERSON; KENT KJERSTAD; WILLIAM J.
HUBER; KENDA K. HUBER; YU BLU SNI, LLC;
U.S. BANCORP EQUIPMENT FINANCE, INC.;
KENCO INC. d/b/a WARNE CHEMICAL &
EQUIPMENT COMPANY, INC.; DOUG KROEPLIN
AG SERVICES, INC.; CREDICO, INC. d/b/a
CREDIT COLLECTIONS BUREAU; SCOT D.
EISENBRAUN, MELODY EISENBRAUN;
BART CHENEY; HALL OBERLANDER,
KEI OBERLANDER, RAY S. OLSEN;
PATRICK X. TRASK; ROSE MARY TRASK;
PENNINGTON COUNTY, SOUTH DAKOTA;
and, MEADE COUNTY, SOUTH DAKOTA, Defendants.
* * * *
APPEAL FROM THE CIRCUIT COURT OF THE SEVENTH JUDICIAL CIRCUIT PENNINGTON COUNTY, SOUTH DAKOTA * * * *
THE HONORABLE JOHN J. DELANEY, SR.
Judge
* * * *
STEVEN W. SANFORD
ALEX M. HAGEN of
Cadwell Sanford Deibert & Garry, LLP
Sioux Falls, South Dakota
and
BRIAN L. UTZMAN of
Smoot & Utzman, P.C.
Rapid City, South Dakota Attorneys for defendant and
appellant Rock Creek Farms (#26092).
JAMES P. HURLEY of
Bangs, McCullen, Butler,
Foye & Simmons, L.L.P.
Rapid City, South Dakota Attorneys for defendants and
appellants Finnemans (#26093).
ROBERT R. SCHAUB of
Sundall, Schaub & Fox, P.C.
Chamberlain, South Dakota Attorneys for defendants and
appellees Arnoldys.
JAN HOLMGREN
Assistant United States Attorney
Sioux Falls, South Dakota Attorneys for defendant and
appellee the United States of America.
* * * *
CONSIDERED ON BRIEFS ON NOVEMBER 23, 2011 OPINION FILED 03/14/12 GILBERTSON, Chief Justice
[¶1.] Defendants and appellees Ann and Michael Arnoldy (Arnoldys) and the United States of America move to dismiss appeals filed by defendants and appellants Connie and David Finneman (Finnemans) (Appeal No. 26093) and Rock Creek Farms (RCF) (Appeal No. 26092) for failure to serve their notices of appeal on each party in this foreclosure action. The motions are granted and the appeals are dismissed.
Facts and Procedural History
[¶2.] Rabo Agrifinance, Inc., and Rabo AgServices, Inc. (Rabo) commenced a foreclosure action in 2009 on a mortgage granted by Finnemans on approximately 17,000 acres of farmland. Rabo commenced its action against Finnemans, RCF (Finnemans’ successor in interest), and all parties who had or may have had an ownership or leasehold interest in the land. Approximately 44 defendants were listed in Rabo’s complaint, including Arnoldys and the United States as lienholders. Arnoldys and the United States both filed answers in the action.
[¶3.] In late 2009, Rabo moved for judgment on the pleadings. The trial court granted the motion and, in January 2010, entered a judgment and decree of foreclosure in which it recognized RCF’s owner’s right of redemption. A sheriff’s sale took place in April 2010. In March 2011, Ann Arnoldy redeemed from an assignee of the purchaser of the sheriff’s certificate. In May 2011, Arnoldys filed a Rule 60(b) motion to partially vacate the order for judgment on the pleadings and judgment and decree of foreclosure with regard to RCF’s redemption rights. On May 26, 2011, the trial court entered an order granting Arnoldys’ motion. The order struck and vacated the portion of the judgment and decree of foreclosure recognizing RCF’s redemption rights on the basis that RCF and its predecessors, Finnemans, waived those rights. The order also contained the following provision concerning payment of the lien held by the United States:
The Judgment and Decree of Foreclosure is partially vacated upon the condition that the US Government’s one-million dollar conviction lien against David M. Finneman and Connie Finneman be satisfied after Ann Arnoldy or Michael Arnoldy receive a deed to the foreclosed land from the Sheriff of Pennington County and after all appeals from this Order have been fully determined.
[¶4.] On July 12, 2011, RCF filed a notice of appeal from the trial court’s order partially vacating the judgment and decree of foreclosure and order granting the motion for judgment on the pleadings. Finnemans filed a separate notice of appeal from the same order on July 13, 2011. [1]
[¶5.] On August 22, 2011, Arnoldys and the United States filed a joint motion for dismissal of Finnemans’ appeal for failure to serve the notice of appeal on the United States and a number of other named parties. On August 24, 2011, Arnoldys and the United States filed a similar motion to dismiss RCF’s appeal. On September 30, 2011, this Court entered orders in both cases deferring its decision, directing briefing on the motions, setting forth a briefing schedule, and staying briefing on the merits pending our final decision. We have consolidated the cases for purposes of deciding the motions to dismiss.
1. RCF and Finnemans are represented by separate counsel in this matter.
Issue
[¶6.] Whether Finnemans’ and RCF’s appeals should be dismissed
for failure to serve notices of appeal on the United States and other named parties.
[¶7.]
In
In re Reese Trust
,
SDCL 15-26A-4 sets forth the steps for taking an appeal to this Court. SDCL 15-26A-4(3) provides in pertinent part: “The appellant, or his or her counsel, shall serve the notice of appeal and docketing statement on counsel of record of each party other than appellant, or, if a party is not represented by counsel, on the party at his or her last known address.” (Emphasis added). Failure to timely serve and file a notice of appeal is jurisdictionally fatal to the appeal. Hardy v. W. Cent. Sch. Dist. ,478 N.W.2d 832 , 834 (S.D. 1991) (citing W. States Land & Cattle Co., Inc. v. Lexington Ins. Co. ,459 N.W.2d 429 , 432 (S.D. 1990)). . . . .
Failure to serve a notice of appeal on a party before the time for taking an appeal has expired is fatal to the appeal and requires its dismissal. See Long v. Knight Const. Co., Inc. , 262 N.W.2d 207 (S.D. 1978) (citing Morrell Livestock Co. v. Stockman’s Comm’n Co. ,77 S.D. 114 , 86 N.W2d 533 (1957)).
Accord In re B.C.
,
[¶8.]
Both Finnemans and RCF state in their briefs that approximately 44
defendants were named in Rabo’s foreclosure action, including the United States.
The complaint was served on the United States as a defendant. Captions on the
pleadings and other formal legal documents filed in the case listed the United
States as a defendant.
See Reese Trust
,
[¶9.]
On the face of the briefs and record summarized above, the United
States was a party defendant and should have been served with Finnemans’ and
RCF’s notices of appeal.
See Reese Trust
,
result. First, they assert that the requirement of timely service of the notice of appeal on a party is non-jurisdictional and may be suspended or waived by this Court. They rely on SDCL 15-26A-2, -6, and -92. Those rules collectively indicate that only timely filing of the notice of appeal may not be suspended or waived. [2] Although SDCL 15-26A-4 suggests that both timely service and filing of the notice of appeal may not be suspended or waived, [3] Finnemans and RCF argue a harmonious construction of SDCL 15-26A-2, -4, -6, and -92 makes clear that only the timely filing of the notice of appeal is jurisdictional and may not be suspended 2. SDCL 15-26A-2 provides:
In the interest of expediting decision in cases of pressing concern to the public or to litigants, or for other good cause shown, the Supreme Court, except as otherwise provided in § 15-26A-92 , may suspend the requirement or provision of these rules on application of a party or on its own motion and may order proceedings in accordance with its direction.
(Emphasis added).
SDCL 15-26A-6 provides in relevant part: “An appeal from a judgment or order must be taken within thirty days after the judgment or order shall be signed, attested, filed and written notice of entry thereof shall have been given to the adverse party.”
SDCL 15-26A-92 provides:
The Supreme Court for good cause shown may upon motion enlarge or extend the time prescribed by this chapter for doing any act or may permit an act to be done after the expiration of such time; but the Supreme Court may not enlarge the time for filing a notice of appeal.
(Emphasis added). 3. SDCL 15-26A-4 provides in relevant part: “Failure of an appellant to take
any step other than timely service and filing of a notice of appeal does not affect the validity of the appeal, but is ground only for such action as the Supreme Court deems appropriate, which may include dismissal of the appeal.” (Emphasis added).
or waived. This argument ignores that to timely file a notice of appeal, it is necessary to timely serve the notice of appeal. See SDCL 15-26A-4(4) (stating the clerk of court shall not accept for filing a notice of appeal, “unless accompanied by . . . proof of service of copies thereof on each party other than the appellant”). Thus the requirement of timely service is subsumed within the requirement of timely filing of the notice of appeal and, like that requirement, it is jurisdictional and may not be suspended or waived by this Court. Finnemans and RCF argue that this Court expressly concluded in
People ex rel. South Dakota Department of Social Services (Ex rel. DSS)
that “the
only
requirement which cannot be suspended is timely
filing
[of] a notice of appeal.”
party entitled to service of the notice of appeal because it lost its party status by
failing to act on its redemption rights and by allowing those rights to lapse. In
support of this argument, they offer an analysis of the substantive law of foreclosure
proceedings and redemption rights. As authority for such analysis, Finnemans and
RCF cite
Morrell
,
5. The Foundation was served with the petition for distribution of trust assets
that commenced the lower court proceedings in the case. See Reese Trust ,2009 S.D. 111 , ¶ 13 n.5,776 N.W.2d at 836 n.5.
this Court held the Tribes were parties entitled to service of the notices of appeal.
[6]
Id
. ¶ 10,
[¶14.]
This case offers none of the unique challenges of
Morrell
,
Reese Trust
,
or
In re B.C.
in identifying the United States’ status as a party in this matter.
See
Geier
,
judgment or order was necessary for it to have party status in this matter, that interest is also present. As set forth under the facts, the order on appeal specifically provided as to the lien of the United States that:
6.
Two more recent cases have offered similar challenges in identifying parties.
In
Estate of Geier
,
The Judgment and Decree of Foreclosure is partially vacated upon the condition that the US Government’s one-million dollar conviction lien against David M. Finneman and Connie Finneman be satisfied after Ann Arnoldy or Michael Arnoldy receive a deed to the foreclosed land from the Sheriff of Pennington County and after all appeals from this Order have been fully determined.
This provision guarantees the United States payment when Arnoldys receive a deed, obviating the need for further action. A lien, however, would require foreclosure by the United States and the additional costs and delays attendant to such an action before the debt would be satisfied. As the United States summarizes it, therefore, this provision, “represents the difference between being handed a check and going back to court.” While Finnemans and RCF argue this provision is not the subject of their appeals, the entire order of the trial court would be before this Court on appeal and subject to reversal or a reversal and remand for further proceedings, placing the provision at risk. Therefore, we hold the United States’ interest in having this provision upheld [7] reinforces its status as a party in this matter entitled to service of the notice of appeal. Finnemans and RCF also cite a series of cases requiring an appellant
to have an interest in the controversy and to be prejudiced or aggrieved by the
decision appealed from.
See In re Estate of Bartholow
,
non-party to this appeal. However, these requirements apply only to the appellant and concern the right of appeal, not the right to respond. See id . [8] The United States was not the appellant here. Therefore, we find these requirements of no assistance in determining the United States’ status in this matter as a party entitled to service of the notice of appeal.
Waiver or Cure of Procedural Default Finally, Finnemans and RCF again request that this Court exercise
discretion to waive the requirement of timely service of the notice of appeal or
permit them to otherwise cure their procedural default. We have addressed the
jurisdictional nature of the service requirement and our inability to suspend or
waive it above and will not readdress those issues here. The authorities cited by
Finnemans and RCF in support of a waiver or cure have not involved procedural
errors deemed jurisdictional in nature and, therefore, we find them distinguishable.
See Fair v. Nash Finch Co
.,
statement of issues in an administrative appeal in circuit court);
W. States
, 459
N.W.2d 429 (failure to file a statement of issues in an appeal before this Court);
Meade Educ. Ass’n v. Meade Sch. Dist. 46-1
,
[¶18.]
Matter of Weickum’s Estate
,
Conclusion
[¶19.] For the foregoing reasons, Finnemans’ and RCF’s appeals are dismissed for failure to serve their notices of appeal on each party to the action. [¶20.] Dismissed. KONENKAMP, ZINTER, SEVERSON, and WILBUR, Justices, concur.
