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State Ex Rel. Steffen v. Peterson
607 N.W.2d 262
S.D.
2000
Check Treatment

*1 hearing § of a required. Notice is 11-94. 2000 SD 39 may § 11-95. at SFC Witnesses called Dakota, Sandy STATE of ex South rel. hearing, board must enter STEFFEN, Appellant, Plaintiff and § Only of fact. SFC 11-96. after findings v. are these administrative remedies exhaust- Jerry PETERSON, ed, may Gregory County be appealed the board’s decision Register § Deeds, circuit SFC 11-97. Fail- Defendant and court. Appellee. ure to exhaust administrative remedies jurisdictional is a required where defect. No. 21025. Regents Heege, SD Bd. 428 N.W.2d Supreme Court of South Dakota. (1988). 535, recognized exceptions No requirement to the exhaustion are applica- Argued Jan. matter, practical ble this case. Id. As a March Decided ample Sioux Falls will have time to consider revocation of the license

without risk to the citizens Sioux Falls Neitge serving years five peni-

tentiary. Thus, only board

building jurisdiction has services to revoke

a contractor’s license. The circuit authority

this case had no to revoke

Neitge’s contractor license as of his for grand

sentence theft. It is fundamen

tal “[a] rendered a court jurisdiction

without to pronounce it

wholly void and without force or effect Haase, (cit

whatever.” 446 N.W.2d Mee,

ing State v. 67 S.D. 297 N.W. 40

(1941)); Nolan, Nolan v. 490 N.W.2d (S.D.1992). Accordingly, portion

of the circuit court’s sentence revoking

Neitge’s contractor license is reversed. entry

[¶ 14.] Reversed remanded for

of an amended sentence consistent with opinion. MILLER, Justice, Chief

SABERS, AMUNDSON and

KONENKAMP, Justices, concur. *3 Steffen,

Sandy J. Gregory County Burke, Dakota, Attorney, State’s South At- torney plaintiff appellant. L. Richard A. Travis David Pfeifle Johnson, Becker, May, P.C., Doyle and Falls, Dakota, Sioux Attorneys South defendant and appellee.

MILLER, Chief Justice County1 appeals from the circuit holding register court’s that its of deeds titled, 1. We note this case is "State ex rel. been as a named rather than Steffen. Steffen v. Gregory County titling Peterson.” The Steffen indicated the of the case was Steffen, Attorney, Sandy brings patterned State's previous proceed- after a Tarr, suit Gregory County ing, behalf Board of ex Hooper State rel. 62 S.D. Commissioners, (S.D.1934). so the Board should 252 N.W. 854 However Hoo- However, following nonfea- month. neither malfeasance or not commit did collection, legislative and ac- auditor submitted a formal writ- remittance sance in the removal. as to warrant of such action to the counting of so ten recommendation (Board). appeals from a County also county board commissioners By notice of disbursements. against it for July was due for review, appeals of deeds In conjunction another routine audit. with additional fees and trial court’s denial of audit, reported the result affirm retainment costs. We money allegations shortfall of theft award disburse- modify the full Peterson, thorough more against exami- Further, affirm the denial of ments. we nation office deeds’ additional fees and costs. audit, performed. During this it was dis- *4 covered that Peterson had been late FACTS fees the treasurer each remitting to month Jerry Grego- was elected [¶ 2.] Peterson previous thirty for the months. addi- Register and ry County of Deeds tion, it was Peterson had discovered that January 1988. He continues took office a receiving payment been from a cred- $15 having re-elect- position, to hold such been (CBC) agency nearly every it reporting 1986, 1990, 1994 to position ed that performing month 1991 for lien and since statutorily prescribed of 1998. As his report- searches. Rather than duties, responsible Peterson for collect- ing payment this to the auditor sub- ing various doc- charged recording fees treasurer, mitting it to the Peterson had month, his Each office re- uments. register simply depositing been into the a to transmit statement quired a Finally, “po- of account. checking deeds’ county showing the of fees auditor amount $1,500 shortage” approximately tential of required He collected that month. is also legislative was noted the auditor. county submit the he collects to the to fees monthly a At the time treasurer on basis. regarding The met the find- Board action, precipitating of the events this both ings- August August this audit on 5 and of the were to be the fee statement and fees meeting, August At the 5th the 1997. county remitted to the other offices no to he explain why Board asked Peterson day the the later than fifteenth of follow- fees. He remitting had been late in his ing month.2 late stated the remittances were due August At accounts receivable. 13th In 1993 and 1995 South Dakota Audit, agen- meeting, inquired the Board about Department of Legislative of that Peter- cy charged auditing shortage alleged with state local funds entities, him to son had taken it. The Board asked government conducted routine au- audit, County. replace money resign. a Peterson dits of In each random responded the mon- sample replace that he would one-month was reviewed ensure ey, he not a thief and not timely but that was did the fee statement and fees treasurer, resign. The also asked remitted to the auditor and re- intend to Board report failure and re- samples Both revealed about Peterson’s spectively. audit mit He his although that statement had been the CBC fees. admitted that the fee auditor, had timely handling payments been remitted fees CBC unspeci- At a third on an wrong. meeting had not been remitted to the trea- timely date, fied he was asked legislative surer. Each time the auditor Peterson claims resig- again that he about the shortfall and for made a comment to Peterson was try an ex- day provide He did not to remit the fifteenth of nation. changed requirement legislature per, attorney was fact the 2. The the state's suit, bringing the the Board or other not See footnote infra. entity. the shortfall because he was planation for was to collect fees in advance and not allow “really looking was people charge, not sure the Board the Minnehaha 20, 1997, anyway.” August Register answers On of Deeds testified on his behalf $1,500 deposited personal practice. such the common It register checking funds into the deeds’ was also common practice to remit fees up.” account to “catch from the current to pay month for fees charged which have been prior for the investiga- An even more thorough yet month and which paid, been register tive audit of the office deeds’ process called ex- “lapping.” Peterson’s September was conducted in cover- witness, CPA, pert testified that over a through July records from 1988 time, period of uncollectable and late ac- This review revealed counts receivable “pyramid” could create a months, previous 175 Peterson had been shortage effect and cause a in cash flow. remitting late in fees to the treasurer. Finally, Peterson admitted that his han- ranged delinquencies from one to one “mistake,” dling the CBC was a funds days addition, hundred total late. always deposited but that he had pay- $1,060 in payments CBC had been re- ments into the checking deeds’ deposited ceived Peterson and into the account and never used of it for per- account, checking of deeds’ *5 gain. sonal never recorded on the fee statement nor Further, submitted to the treasurer. [¶ 8.] addition to the allegations, other $216,308.60 to was found have $198.603 County also trial asserted at that Peterson statement, been recorded on fee but improperly conducting was political activi- never remitted to treasurer. Other duty, ties while on as evidenced the fact potential defalcations included uncollecta- that he asked his deputies two of to work ble accounts receivable in the amount of political flyers while on county time. $406.90,4uncollectable non-sufficient fund At the three-day [¶ 9.] conclusion of its (NSF) $138.95, checks in the amount of trial, bench the court ruled that the CBC and miscellaneous in the amount payments received not “fees” de- bypassing vouch- appropriate $76.73 statute, fined that Peterson did not system. er intend to evade fifteen-day require- 23, 1997, September [¶ 7.] On treasurer, ment for remitting funds to the told the Board he was not going resign. and that Peterson had mal- committed A proceeding removal Through- ensued. feasance, nonfeasance, theft or other the proceedings, out Peterson admitted crimes office so as to warrant removal. that he had been late remitting fees to later hearing, the trial court also the treasurer and that he improperly had $25,677.12 awarded Peterson in expenses However, handled the CBC funds. he ad- incurred his defense. amantly stealing any money denied from 10.] On appeal, County is- raises two his office. Peterson perpet- attributed the sues: ually late remittances to an admitted 1. Whether the trial its abused shortage in the checking deeds’ failing discretion to remove Peter- account, which was turn caused son for malfeasance nonfeasance receivable, accounts, accounts uncollectable pursuant to SDCL 3-17-6? supplies purchased, check charges “things like that.” While Peterson con- Did the trial court err in finding that that, pursuant statute, ceded his office the decision was “favorable” Pe- originally This alleged amount was originally be 4. This amount was claimed $285.60, $515.90, through but through at tri- $406.90 cross-examination was reduced to al, $198.60. the amount reduced to cross-examination trial. (S.D.1994) Gors, (citing Dacy v. terson, its discretion and abuse (S.D.1991)). “The N.W.2d him total disbursements? awarding mind, judicial in view of test is whether review, Peterson By notice of [¶ 11.] circumstances, could reason- the law and following issue: raises the ably reached the conclusion.” [same] erred in de- the trial court 3. Whether Id. disbursements nying additional found that al- The trial court [¶ 14.] expenses? attorney fees timely failure to remit though Peterson’s “certainly wrong,” is concluded the fees DISCUSSION to the that his did not rise level misconduct However, to warrant removal. sufficient did not abuse 1. The trial court did order Peterson to remit the court failing to remove its discretion (the $1,060, unreported amount Peterson from office. (the fees), $198.60, unremitted CBC proceedings As to reported and fees shortfall between fees 3-17-6, has stat this Court under SDCL remitted), These treasurer. ed: $1,500 of were in addition to the amounts that, under our asserted] been [has It previously funds Peterson had personal malfeasance, misconduct, statute, if check- into the of deeds’ deposited of the officer on the or nonfeasance ing account. fact, found as a then charged is appeal, County argues In this pending court where evidence, the trial light that in of all this option whatsoever but abso- has no in not remov- abused his discretion judge as a matter of law lutely compellable for malfeasance or nonfea- ing Peterson of immediate ouster enter argues It further sance. this contention we are from office. With *6 delegated the decision of improperly The agree. unable to in to oust Peterson the voters whether nature, and we are quasi judicial least election in which upcoming primary an trial court has some convinced that the to his seeking re-election matter, and that it is in the discretion disagree. position. We in the judge to determine for the a mecha- provides 3-17-6 instance, 16.] SDCL subject [¶ to re- doubtless first prior an official whether, removing elected nism for case particular view in each “Any officer his or her term: circumstances, to the end of given all the under may be malfeasance, government local unit of misconduct, or nonfeasance tried, for removed from office charged, and found, found, is sufficient to if malfeasance, nonfeasance, misconduct, removal from office. justify require or office, drunkenness, gross incom- crimes Tarr, 305, v. 62 S.D. Hooper ex rel. State theft, or oppression, corruption, petency, (S.D.1934). Thus, 309, 854, 856 252 N.W. gross partiality.” review is under an abuse the standard of “ that Peterson County asserts ‘Abuse of discre- of discretion standard. nonfeasance malfeasance justified by, and committed and/or tion’ is discretion collect fees advance he failed to and evidence.” because clearly against, reason 7-9-1,5 and because he Co., pursuant SDCL 513 N.W.2d Nelson v. Nelson Cattle sale, 1999, mortgages, conditional sale bills of being SDCL 7-9- amended in 5. Prior to contracts, autho- other instruments part: provided 1 register of by filed in the rized law to be keep register deeds shall full The office, offering any person deeds, if the books, deeds' proper of all true records in pays in advance the fee instruments such mortgages, autho- and other instruments filing recording required by for or law to be recorded in the rized law same. of all chattel deeds' and records 268 tions, (3rdEd 1992) (“Strict report pursuant §

failed to and remit fees 12.229 con- authorizing struction of laws removal According County, SDCL 7-9-17.6 is the rule.”). remedy The provided by removal act, an such failure constitutes unlawful statutes is relatively heroic nature and theft, 7-9-18.7 under SDCL drastic where the usual method of remov- Tarr, this Court had the officeholders is resort to the ballot. to consider the pro- other occasion removal Bartz, (Iowa 632, v. State 224 N.W.2d 638 However, vision of 3-17-6. SDCL 1974) (citation omitted). Evidence in a merits of the case were not reached be- “clear, removal action satisfactory must be appeal cause the was dismissed on other also, convincing.” Id. See Kemp, 275 Tarr, 310, grounds.8 62 S.D. at 252 N.W. (To S.E.2d at 301 warrant removal of an Thus, at 857. we must look elsewhere official, convincing clear and evidence is guidance. necessary.). “Removal of offi “To constitute malfea a remedy, cers from office is drastic ... nonfeasance, sance or conduct must ‘affect statutory provisions prescribing performance of official duties and must grounds strictly removal are con relate to something of a substantial nature Kemp Boyd, v. strued.” 166 W.Va. directly affecting rights and interests ” (W.Va.1981). also, S.E.2d See Collins, public.’ Claude McQuillin, Eugene (Minn.1994) Municipal Corpora- N.W.2d (quoting Ja him, The 1999 amendment deleted the "in ad- law for services rendered or phrase. same, vance” keep shall fail to a record of the or to make a correct statement thereof to the being auditor, Prior amended in SDCL 7-9- county pay or to over such fees provided pertinent part: county provided treasurer as 7-9-17, § provi- with intent evade the shall, The of deeds within fifteen section, sions of said guilty shall be days expiration after the of each calendar theft. month office, also at the end of his term of county file with the auditor state- Tarr, proceedings 8.In were initiated showing ment under oath the fees ... Tarr, against Gregory County Commission- charged which he has or received as such er, by Gregory County Attorney. State's officer since the date report of his last proceedings dismissed short time beginning the shall, of his term of office and by stipulation later However, parties. between the days, depos- also within such fifteen acting commissioner subse- it with the treasurer the total *7 quently alleged stipulated that the dismissal depos- amount such fees which sum so was entered into with ulterior motives. Ac- placed ited shall be to the credit of the commissioner, cording acting Tarr and general fund. Attorney the State's were both in favor of completely SDCL 7-9-17 was re-written in courthouse, building county a new therefore provides: 1999 and now Attorney the State's dismissed the action Within the time frame established against Tarr so that he could be reinstated commission, county of deeds Upon learning vote for its construction. deposit county shall with the treasurer allegations, of these the trial court entered an the total amount of fees and other collec- reinstating against order the action Tarr and tions received. Unless otherwise re- replacing Attorney Special State's awith quired, all fees other collections shall Attorney. State's The court then conducted placed general be to the credit of the that, proceedings although removal and found fund. At the discretion of the guilty Tarr was of misconduct and nonfea- deeds, may fees and other transactions sance, egregious his actions were not so as to charged on account but shall be collected Special warrant removal from office. The following the end of the month. The decision, Attorney appealed State's register of deeds shall maintain a detailed this Court held the trial court did not have record of accounts receivable. any authority summarily to remove the State’s Attorney appoint Special from his office and 7. SDCL 7-9-18 states: Thus, Attorney. State’s Special all of the acts Any register effect, neglect of deeds Attorney who shall or State's were void and noof charge omit to or collect appeal. the fees allowed and the Court dismissed the intent, contrast, there was no such where N.W.2d Minn. Nagel, 255 cobsen v. omitted)). (citation In (Minn.1959) or nonfeasance existed. no malfeasance 569, 573 525, 259 susceptible Manning, of an exact 220 Iowa N.W. is “not State Malfeasance to evil con 213, (1935), it ‘has reference Supreme the Iowa definition 215-16 deed, doing illegal or an duct stated: Court do, perfor ought not which one [A]cts, or commis- whether of omission an officer his official of an act mance sion, grounds in order to constitute wrong wholly illegal and that is capacity knowing- have been done removal must “ ” ‘neglect or is the ful.’ Id.9 Nonfeasance corrupt with an evil or ly, willfully and excuse, refusal, to do sufficient without primary ... The purpose motive legal duty to is the officer’s that which protect ... is to of the law purpose do.’” Id.10 we cannot interest.... While factor in removal recurring A stamp approval upon place our Bartz, In of the actor. is the intent cases pursued by method these manner and were removed because supervisors county management in the defendants with contractors gifts from they accepted municipality, and are no affairs of the capacities, official they dealt their whom which excusing acts and conduct way from funds sales maintained “slush” statutory actual violation of amount to tools and purchase county equipment laws, purpose, discern no yet we can county supplies miscellaneous they officials in what of said unsub- exorbitant shops, and submitted harm, did, inimical to or which was re- reimbursement mileage stantiated or city. corrupt of such No the interests Bartz, at 634-37. N.W.2d quests. is manifest from design purpose evil or Claude, inexperi- or stating ignorance the evidenced excuse, the Minne- not a ence is sufficient city three removed Supreme sota Court 7-9-18, supra, requires Similarly, SDCL intentionally from office for council officers provisions evade the of SDCL an intent to open requirements of violating the to constitute theft. 7-9-17 order separate at least three meeting law on in the reviewing the record Upon Claude, at 843. 518 N.W.2d occasions. case, we cannot hold that the instant contrast, county commissioner Kemp, failing abused its discretion office, though from even was not removed from office. While Pe- remove Peterson meeting for commission he left comply with the admittedly failed terson game and to coach a basketball six hours law, he did not do so letter of the strict mileage reim- erroneously had received purpose. corrupt design or evil with a county. Kemp, 275 from the bursement rather than col- Although charged he 302-07. Instead of S.E.2d advance, was not the them in lecting was directed the commissioner from in the state to register of deeds’ office under which he obtained repay the sums charging, practice It was this do so. law, interpretation of the his erroneous *8 effect, that resulting “pyramiding” and its as place his duties and was admonished funds for Peterson. shortage the of caused coaching obli- official above his public a in turn resulted shortage of funds The survey A of these cases re- gations. Id. Peterson also remittance of fees. the late intent was to that where the official’s veals handling of the CBC law, that his testified the or otherwise circumscribe evade “mistake,” simply and that he funds was a was found. or nonfeasance malfeasance Dictionary nonfea- Law defines Black’s Dictionary, defines malfea- Law 9. Black's act; duty esp., wrongful to act when or unlawful sance as: "The failure sance as: "A by Dictionary, offi- wrongdoing or misconduct Black’s Law act existed.” (7thEd. Dictionary, 968 1999). Black’s Law (7thEd. cial." 1999). Additionally, find the we improperly handling payments the began authority its trial court did abdicate practice until the to do so continued and an elected official. SDCL 3-17-7 remove Perhaps part of in 1997. discovered “it pertinent part that shall be provides about how to handle confusion Peterson’s to ... duty judge of of the circuit court fact stems from the payments the CBC thereof, term at which term special hold found, that, payments court the trial shall be issues in such of any categories of the not fit into do by the court.” heard and determined 7-9-15.11 at SDCL “fees” described County argues “[threw] that the addition, report- that Peterson the $198.60 of over to the voters removal decision in comparison remit is small ed but did not Gregory County” when made follow during handled total amount of fees (after stating remark that there was $216,308.60. fourteen-year period, explanation for the late remittal adequate by Supreme the Iowa explanation As stated that such was suffi of fees and non-removal) Smith, justify ex rel. Crowder v. cient to Peterson’s in State Court (1942): ruling: its bench Iowa N.W.2d may have made some defendant] I of the fact that say “[The And mindful times, mistakes, or, opinions year is an election and that there others, an election on 2nd and that poor judgment; will be June may have exercised people Gregory County can decide may make mistakes and any officer practice whether or not Mr. Peterson’s absolutely may honest. An officer be still if warrants his removal. And he sur- and be honest incompetent be still even primary they again vives the can decide It integrity.” further con- soul if in the fall. And he doesn’t then the cluded, posi- is no man official “There And I people spoken. will believe in the law that he perfect tion so letter for them to do that on that issue. it’s by act or omission point not at some does law, though with misconstruction of the argues or that such com- motive, fall short of the perfect integrity only acknowledgement by the ment was statutory measure of his official court that its decision would be short-lived strict upcoming at 271. since there was an election and duty.” Id. 4 N.W.2d sale, (3) filing indexing a bill of seed 11. SDCL 7-9-15 slates: For lien, lien, grain or thresher's the sum of charge register of deeds shall and re- The may charged ten dollars. No fee for following fees: ceive the filing any satisfaction or termination of deeds, (1) recording mortgages, and all For prescribed in instrument as this sub- specifically provid- other instruments not division; code, ed in this section or this the sum leases, oil, (4) recording gas, mineral For page dollars for the first and two of ten relating and other recorded documents page for each additional or frac- dollars gas exploration or oil and lease mineral Each rider or addendum tion thereof. per page; development, six dollars page; shall be considered as an additional (2) copy For a certified instrument (5) Notwithstanding provisions of subdivi- record, including certificate and official section, (2) of this the board of coun- sion seal, plus twenty cents for two dollars ty shall resolution commissioners fix page pages, and for an each after five paid to be licensed abstracters dollar, copy, plus twenty uncertified one county by any person who has pages. page each cents for after five passed examination estab- the written board of commissioners resolu- Board of Exam- lished the Abstracters' charged tion shall the fees establish pursuant § iners 36-13-11 for uncerti- duplicate microfilm. In addition to the instruments, copies fied recorded copy fee for a certified of the record of *9 birth, may fee not exceed the actual cost charge which there is an of additional providing copies. for such copy requested, dollars for each two. may charge fee monthly The of deeds not a submitted which shall be on discharging canceling any personal deposited to be basis to the state treasurer fund; property lien. in the trust children’s

271 $25,677.12 to The they amount of Peterson. Peterson if voters could unseat the “favor- agree. We issue is whether outcome was fit. saw Peterson, thereby him to entitling able” to of Our treatment extra County deci- argues disbursements. incorporated material into neous not favorable, Peterson sion not because fact and conclu findings court’s of likely not have been to retain would able of law is well settled: sions $2,700 repaid had he not over position opinion by or views “Any expression of asserts, from his funds. personal judge to his decision the trial extraneous however, outcome be- was favorable contemplated by manner in the and form position. cause to retain his he was able no force or as a binding law is of effect upon judge law the trial matter of either “A party filing 30.] motion [¶ v. Agard himself or one else. Cf. attorney’s for an award of fees bears 262, 379; 244 Menagh, 60 S.D. N.W. by a of proving preponderance burden of 248, 244 Hemenway, v. 60 S.D. Klundt evidence its entitlement such an award.” by Such the trial expressions N.W. 377. Wood, 854, Hartman v. 436 N.W.2d 857 are, judge helpful of course indeed (S.D.1989) (citing Bd. County Comm’rs of almost necessary advising counsel as Auslaender, v. 745 of of Jefferson to the views of the court for the (Colo.1987)). 999, Attorney P.2d 1001 fees information in drafting of counsel find are not unless recoverable either presentation and conclusions for ings specifically such action is authorized expression opin court. But of such ¶ Michlitsch, 69, 17, 1999 594 statute. SD proper ion constitutes no of Hartman, 734; N.W.2d at 436 N.W.2d appeal, announced in record whether Further, where an of open expenditure form of an statement oral involved, reporter or in public court transcribed statute authoriz funds is of a or letter the form memorandum strictly con expenditure such will be counsel, [cites omitted].” addressed Sisters, Appeal strued. Presentation Inc., 169, (S.D.1991); 471 174 N.W.2d Mellema, 827, v. 407 N.W.2d 829 Mellema Valley Hosp. Sioux Ass’n v. Davison (S.D.1987) Bldg. v. (quoting Western Co. (S.D.1980) (statute Co., County, 298 N.W.2d 85 630, 636-637, Penney 245 J.C. 60 S.D. (1932)). “Thus, 909, payment of medical ig- authorizing 911-912 we N.W. construed). pronouncements the trial oral indigent person strictly nore court’s Ohio, findings and limit our review to the written also Business Systems See CADO (citing v. and conclusions.” Id. Jones v. Inc. Bd. Educ. Cleveland Jones, (S.D.1983); 334 492 Hitzel N.W.2d Dist., 385, 457 App.3d School 8 Ohio Clark, (S.D.1983)). 334 37 N.W.2d (1983) 939, equip (payment N.E.2d ment denied where directives vendor judge The comments made not authorizing expenditure were not statute ruling incorporated in his bench findings followed); strictly Tracy into the of fact conclusions of v. Fresno Coun law, superfluous they therefore are ty, Cal.App.2d 270 P.2d not reviewable. (1954) to sheriff (payment attorney prosecution in defense of criminal denied trial court its abused only cov because statute reimbursement awarding discretion in Peterson to- normal incidents ered disbursements, deci- tal because the actions); Naylor, criminal re entirely sion was not “favorable” to (1940) (pay N.E.2d N.Y. him. denied, ment to third medical examiner payment where authorized statute trial court awarded at

[¶ 29.] The examiners). torney fees and disbursements in the two such *10 272 statutory removal, Specific magistrate’s] authorization the conclusion una- can be attorney

for an award of found voidably follows that he is the ‘successful 3-17-10, provides: which SDCL party’ and is entitled to recover his ex- ” penses .... Id. pro- If the final determination of such favorable to such accused ceeding be Aiken, In [¶ 34.] Heath v. 302 officer, he shall be allowed the reason- 178, (S.C.1990), S.C. 394 S.E.2d 709 the necessary expenses able and he has in- Supreme South Carolina upheld Court the defense, including curred rea- attorney award of fees to a sheriff who had fee, attorney sonable to be fixed the brought a partially declaratory successful judge. court or Such shall be judgment action against county. if paid by county, he be a court regard the stated: officer; by township, if he a be Contrary assertion, appellants’ a par- officer; township municipali- ty need not be successful as to all issues ty if municipali- he be officer of such in order to be found to be a prevailing ty- party. A prevailing party has been de- deciding [¶ 32.] Other courts whether an fined as: “successful,” outcome was “favorable” “prevailed” or whether a so as be to one successfully prosecutes [t]he who fees, entitled to an attorney award of the action or successfully defends Maglio reached various conclusions. In it, against prevailing on the main is- York, 197, sue, New 15 A.D.2d 223 even though not to the extent of (N.Y.App.Div.1961), aff'd, N.Y.S.2d 60 12 original contention [and] is the one 515, N.Y.2d 238 N.Y.S.2d 188 N.E.2d in whose favor the decision or verdict (1963), appellate a New York is rendered and entered. magistrate judge held that where a was Heath, 394 at 711 (quoting S.E.2d Buza v. not removed from but was instead Co., Columbia Lumber 395 P.2d censured, only judicially magistrate (Alaska 1964)). party,” could not be deemed a “successful [¶ 35.] Reimbursement of attorney fees so attorney’s as to be reimbursed for fees. by a state officialwho successfully claim, defend- denying the magistrate’s against ed himself a removal proceeding court stated: upheld by was also the Supreme Court of The fact magistrate] [the was Thomson, New Hampshire. King v. spared the penalty extreme (1979). N.H. 400 A.2d In King does not detract gravity from the the court reasoned that the state manifest- effect of finding by this court that he an equally strong ed interest maintain- guilty was of conduct inconsistent with ing public official as it in removing did justice. fair administration of Only such a person, therefore defending him- play means of a can it words removal, self from the official protect- magistrate] said that [the was success- interest, an important state and the ful. obligated pay state was his counsel fees. Maglio, 223 N.Y.S.2d at 63. Id. at 1171. dissenting opinion Maglio, however, emphasized that the removal level, On a general more the Unit- magistrate was the “aim and purpose Supreme stated, ed States Court has “[A] proceeding,” and that the “aim and Court first must determine if the applicant purpose magis- failed.” Id. at 64. ‘prevailing party’ “[The is a by evaluating the trate], therefore, party’ was a ‘successful degree of success obtained.” Commis- sioner, Jean, ‘to him 154, 160, remove from of- INS v. 496 U.S. fice.’ ... 2316, 2320, Since the proceeding here failed S.Ct. 110 L.Ed.2d (1990). of its single purpose, intended to wit: [the

273 its discretion in the trial court abused Here, was able although Peterson [¶ disburse- complete- full reimbursement of awarding he was not position, his to retain wrongdoing, all The case is remanded of ments to Peterson. ly exonerated County proceeding, the removal with directions that through to the trial court restitu- bringing in about modify was successful its order to award Peterson 50% Peter- in his behavior. change and a tion disbursements. his timely failure to remit his son admitted treasurer, im- as well as

funds to the The trial did not err in [¶ 40.] payments. the CBC accounting of proper denying additional disbursements timely on a basis to remit fees agreed He attorney expenses. for fees future, agreed properly and he in the denied Pe The trial court Further, payments. CBC account for the attorney request for additional terson’s repay over was ordered Peterson regard writing, and expenses, “[w]ith fees $1,500 per- $1,200,12in to the addition fees, attorney request for additional already repaid. funds he had sonal obtaining attorney I not award fees for will are actions 38.] Peterson’s [¶ review, attorney By notice of Pe fees.” 3-17-10 type of conduct SDCL not the that 3-17-10 man argues terson SDCL Rather, intended the statute is rewards. attorney fees and payment dates who are inno to reimburse officials attorney fees expenses, and the additional in think the office. We wrongdoing cent of incurred because must in SDCL 3-17-10 term “favorable” such di acknowledge refused to “exculpation to mean strictly construed he is enti Therefore he asserts rective. degree of success.” and not some lesser expenses. to reimbursement for these tled Trenton, N.J.Super. 184 Kerwick v. contrast, County simply asserts SDCL (Law Div.1982). A.2d the award of attor 3-17-10 does allow Winbush, An Kimberly J. generally, See pursuing attorney an award of ney fees notation, Payment Attorneys’ Services agree. fees. We Brought Against Action Defending in Of Poioer or Individually as Within attorney fees incurred Actions ficials Body, 47 A.L.R.5th Obligationof Public underly- obtaining attorney fees for (1997). action, litiga- so-called “fees-for-fees” tion, two lines. along decided have been determination this case 39.] The reasoning holds fees-for-fees One line of the sense that was favorable Peterson underlying sub- part as litigation How- managed position. he to retain his being litigated. that is Un- stantivé issue ever, unfavorable to him because he it was rationale, statutes such SDCL der this $2,700 required repay excess of vindicated to make a 3-17-10 were enacted county, and he personal funds to whole, all therefore related defendant aspects change certain was admonished underlying part of the are authorized as In view of the procedure. of his office Commissioner, See, INS v. e.g., claim. case, that an of this we hold circumstances Jean, 154, 110 496 U.S. S.Ct. Peterson’s ex- apportionment of equal (1990); Am. Fed’n Gov’t L.Ed.2d 134 since appropriate, penses is reasonable Local 3882 v. Fed. AFL-CIO Employees, favorable totally was not the determination Auth., F.2d 20 Thus, Labor Relations 3-17-10. party. to either SDCL however, example, Peterson was late with his noteworthy, For It $1060 for specifically payments Peterson to and he had to remit court did not order retaining money repay $198.60 as a condition of that he was short CBC fees and opinion position. It in its letter stated This is not an indication on his fees. awarding disbursements: would be obli- won. Peterson state gated pay whether these sums allegations points Steffen out that several or not. proven court ordered it pleadings were to be true. in the (D.C.Cir.1993); KONENKAMP, and Salmon Davis SABERS and 1996). (Utah Justices, Fol- concur in P.2d 890 concur County, 916 reasoning, part. line of result lowing this *12 fees-for-fees, because would be entitled KONENKAMP, Justice (concurring pursued part of the litigation was such part concurring in result in part). him to vindicate and make larger effort him whole. majority opinion I concur in the [¶ 48.] reasoning join The other line of fol on Issues 1 and I and on Issue lows the traditional American rule that points with Justice Sabers on attorney by fees cannot be recovered special writing. express statutory absent

prevailing authorization. This ratio or contractual SABERS, (concurring Justice in litigation nale characterizes fees-for-fees concurring part). in result in separate and distinct from as an issue respects I concur in all except [¶ 49.] underlying action. Because such fees that I concur result on Issue 3 for four litigant the individual would benefit reasons: sought not in furtherance of and are underlying claim or for the benefit of the First, 1. since we affirming are the tri- general, they would be barred al court in denying additional disburse- 3-17-10, under statutes such as SDCL (for attorney ments fees and expenses), it only provide which for expenses incurred necessary is not to decide at this time See, of the defense substantive issue. they whether or not permitted are under Comm’n, v. e.g., Barker Utah Pub. Serv. the statute. (Utah Salmon, 1998), 970 P.2d (Russon, J., P.2d at 899-900 dissenting); Second, 2. deny since we decide to ad- Beach, City Thornber Fort Walton ditional disbursements because the result 570 (Fla.Dist.Ct.App.1993); So.2d Peterson, entirely was not favorable to Trenton, Van Horn v. 80 N. J. (SDCL interpretation of the statute 3-17- (N.J.1979). 404 A.2d 615 ap Under this 10) necessary is not to the holding, and proach, Peterson’s fees-for-fees would not therefore, simply dicta. 3-17-10, be authorized SDCL because Third, ais mistake to reach that litigation pursued such was not defense unnecessary interpretation an now for the removal and because important even more reason. It wrong. is such an award not specifically autho rized statute or contract. SDCL 3-17-10 specific statutory au- Although arguments both are thorization for an appel- award of trial and persuasive, hereby adopt somewhat we attorney late fees. It provides part: “If reasoning latter line of and hold that Pe- determination of such proceeding final officer, terson is not entitled to fees-for-fees. He be favorable to such accused he was not completely vindicated as a result shall be allowed the reasonable and neces- proceeding, and SDCL 3- sary expenses he has incurred in his de- specifically fense, 17-10 does not provide fee, for the including attorney a reasonable payment (em- of fees-for-fees. to be fixed judge[.]” the court or added). phasis Obviously, the deter- final We affirm in part, reverse and mination is at the appellate level in the in part, remand and award no appellate Court, Supreme not the trial court. attorney fees. Fourth, it would be a mistake to incorrect, [¶ 46.] AMUNDSON and have an unnecessary interpreta- GILBERTSON, Justices, concur. tion on the books this state because it advantage, especially when this one-sided County Commissioners enable the would intended otherwise. Legislature in circumstances county officer punish initial determina- this, though the even like KONENKAMP, Justice, joins result, tion, entirely or trial 1 and 2. special writing points do this They him. could favorable to the cost forcing pay him to personal costs appeal without them provide We should

themselves.

Case Details

Case Name: State Ex Rel. Steffen v. Peterson
Court Name: South Dakota Supreme Court
Date Published: Mar 15, 2000
Citation: 607 N.W.2d 262
Docket Number: None
Court Abbreviation: S.D.
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