Full House, Inc. v. Stell

SABERS, Acting Chief Justice

(dissenting).

[¶29.] I dissent on Issue 1 because there are clearly genuine issues of material fact. BRI claims that it owns both the easement and sign at issue. BRI, however, stated that it was paying rent to Stell for the use of the easement and the sign on the Main Street property. It is unclear why BRI would pay unnecessary rent for a billboard if it believed it had an easement in the property. Paying rent for an easement is inconsistent with a belief in outright ownership in the easement. This question alone presents a genuine issue of material fact.

[¶ 30.] Moreover, there is a genuine issue of material fact regarding the agreement between BRI and Stell for the sale of the Best Western. BRI acknowledges that the sale documents did not reference the easement on the Main Street property. Again, such an acknowledgement may be inconsistent with a belief in outright ownership. Because of these questions, this case is inappropriate for summary judgment.

[¶ 31.] Even if the majority opinion is correct in its analysis of Issue 1, it reaches an incorrect result on Issue 2. The majority opinion concludes that the circuit court did not err in denying BRI’s application for taxation of costs. It states that the circuit court did not abuse its discretion by disallowing an award for costs and disbursements to BRI “in the interests of justice.” The majority opinion views an award of costs and disbursements as discretionary. The governing statute, however, provides that “[c]osts and disbursements shall be allowed as provided by statute.” SDCL 15-6-54(d) (emphasis added). The term “shall” does not allow for discretion. This Court has repeatedly stated that: 'When ‘shall’ is the operative verb in a statute, it is given ‘obligatory or mandatory’ meaning.” Fritz v. Howard Township, 1997 SD 122, ¶ 15, 570 N.W.2d 240, 242 (citing In re Groseth Int’l, Inc., *68442 N.W.2d 229, 231-32 (S.D.1989)). See also SDCL 2-14-2.1 (providing that “[a]s used in the South Dakota Codified Laws to direct any action, the term, shall, manifests a mandatory directive and does not confer any discretion in carrying out the action so directed”). Therefore, there is no allowance for discretion and costs and disbursements should be awarded.