#27557-a-DG
2016 S.D. 90
IN THE SUPREME COURT
OF THE
STATE OF SOUTH DAKOTA
****
CARLYLE SCHLIEM and
FARMERS STATE BANK OF CANTON, Plaintiffs and Appellants,
v.
STATE OF SOUTH DAKOTA,
by and through the Department
of Transportation and the South Dakota
Transportation Commission, Defendants and Appellees.
****
APPEAL FROM THE CIRCUIT COURT OF
THE SECOND JUDICIAL CIRCUIT
MINNEHAHA COUNTY, SOUTH DAKOTA
****
THE HONORABLE LAWRENCE E. LONG
Judge
****
MARK V. MEIERHENRY
CLINT SARGENT
CHRISTOPHER HEALY of
Meierhenry Sargent, LLP
Sioux Falls, South Dakota
and
LARRY A. NELSON of
Frieberg, Nelson & Ask, LLP
Canton, South Dakota Attorneys for plaintiffs
and appellants.
KARLA L. ENGLE
Special Assistant Attorney General
Department of Transportation
Office of Legal Counsel
Pierre, South Dakota Attorneys for defendants
and appellees.
****
ARGUED ON APRIL 26, 2016
OPINION FILED 12/07/16
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GILBERTSON, Chief Justice
[¶1.] Carlyle Schliem and Farmers State Bank of Canton (the Bank)
brought an inverse-condemnation action against the State in connection with the
State’s reconstruction of the interchange between Interstate 90 and Cliff Avenue in
Sioux Falls. Schliem argues the State’s closure of a nearby intersection diminished
the market value of his property. The circuit court granted summary judgment in
favor of the State, and Schliem and the Bank appeal. We affirm.
Facts and Procedural History
[¶2.] Schliem owns, and the Bank holds a mortgage on, Lots 13 and 14 in
the North Side Gardens Addition to the City of Sioux Falls (the Property). The
Property is located on the south side of 63rd Street North, approximately 748 feet
east of 63rd Street’s intersection with Cliff Avenue (the Intersection). The
Intersection was located approximately 66 feet south of Interstate 90’s eastbound
on-ramp. The Property abuts 63rd Street to the north and Wayland Avenue to the
east. 1 Schliem, who has owned the Property for approximately 25 years, and the
owners of several other properties in North Side Gardens intended to commercially
develop the area around the anticipated site of a new hotel.
1. Wayland Avenue is a 17-foot-wide dirt road that is sometimes impassable.
Because it is not currently suitable for traffic, we disregard its presence for
the purposes of this appeal.
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[¶3.] In 2013 and 2014, the State reconstructed a portion of Interstate 90
and Cliff Avenue. As part of the project, the State closed the Intersection because it
interfered with efficient traffic movements on Cliff Avenue and the on-ramp to
Interstate 90. Before the State’s project, 63rd Street terminated in a dead end
approximately 1,282 feet east of Cliff Avenue. Approximately 300 feet east of this
dead end, a separate segment of 63rd Street intersected with National Avenue and
continued east toward Gulby Avenue. Prior to closing the Intersection, the State
eliminated this 300-foot gap by installing an asphalt road connecting the two
segments of 63rd Street. The result is that the driving distance between the
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Property and the nearest intersecting highway is approximately 86 feet more than
before the State’s project. 2
[¶4.] As part of the project, the State purchased Lots 2, 3, 4, 16, 17, and a
portion of 18. The State condemned a small, triangular strip of land across the
northern border of Lots 6, 7, and 8. 3 It also took the right to directly access Cliff
Avenue from abutting Lot 19. 4 The State did not take or purchase any property
interest belonging to Schliem.
[¶5.] Even so, Schliem brought an action against the State alleging inverse
condemnation and a violation of due process. To support his claims, Schliem
produced evidence that the market value of the Property decreased from $464,800
to $151,000 after the Intersection’s closure. In response, the State asked the circuit
court to dismiss Schliem’s action for failure to state a claim. After a hearing, the
court converted the State’s motion to dismiss into a motion for summary judgment.
Schliem then also asked for summary judgment, and the circuit court held a
hearing to consider the competing motions. Concluding that Schliem had not
2. In its memorandum decision, the circuit court stated that the distance from
Cliff Avenue to Schliem’s property is approximately 748 feet, that the
distance from Cliff Avenue to 63rd Street’s preconstruction dead end was
approximately 1,282 feet, and that 63rd Street resumed and intersected with
National Avenue and Gulby Avenue 300 feet to the east of its preconstruction
dead end. Thus, Schliem’s property is only 534 feet away from the 300-foot,
asphalt extension of 63rd Street, and he must travel approximately 834 feet
to the east to reach the nearest intersecting highway.
3. This taking is the subject of State v. Miller & Walsh, 2016 S.D. 88,
___ N.W.2d ___.
4. This taking is the subject of State v. JB Enterprises, Inc., 2016 S.D. 89,
___ N.W.2d ___.
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identified a property interest that had been taken or damaged by the State, the
court granted the State’s motion.
[¶6.] On appeal, Schliem raises the following issue: Whether the circuit
court erred in granting the State’s motion for summary judgment.
Standard of Review
[¶7.] “In reviewing a grant or a denial of summary judgment under
SDCL 15-6-56(c), we must determine whether the moving party demonstrated the
absence of any genuine issue of material fact and showed entitlement to judgment
on the merits as a matter of law.” Gades v. Meyer Modernizing Co., 2015 S.D. 42,
¶ 7, 865 N.W.2d 155, 157-58 (quoting Peters v. Great W. Bank, Inc., 2015 S.D. 4, ¶ 5,
859 N.W.2d 618, 621). “We view the evidence ‘most favorably to the nonmoving
party and resolve reasonable doubts against the moving party.’” Id. ¶ 7,
865 N.W.2d at 158 (quoting Peters, 2015 S.D. 4, ¶ 5, 859 N.W.2d at 621).
Analysis and Decision
[¶8.] Schliem argues that he has a property right in direct access to the
Intersection and that by closing the Intersection, “the State’s project destroyed
100% of the commercial accessibility” to the Property. According to Schliem, this
loss of commercial accessibility diminished the market value of the Property by
$313,800. Concluding that Schliem had failed to identify a property right that had
been taken or damaged by the State, the circuit court noted: “It is perhaps true that
the value of the Property has been diminished as the result of the Project, but I find
that such diminishment in value, standing alone, is insufficient to qualify as
‘damage’ sufficient to allow compensation to be awarded from [the State].” Schliem
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claims that “[t]his statement by the trial court which finds the necessary elements
proving the State liable for a constitutional damaging is simply an error of law.”
Schliem is incorrect.
[¶9.] Before addressing the legal question whether the State was entitled to
judgment on the merits, we begin by examining whether there are any genuine
issues of material fact in this case. According to Schliem, “[t]here are facts in
dispute concerning the issue of the reasonableness of the replacement access.”
Specifically, Schliem contends he disputed items 17, 18, 19, and 20 from the State’s
statement of undisputed facts submitted in support of the State’s motion for
summary judgment. Those facts and responses are as follows:
[State’s Fact 17]: After the Project, drivers wishing to access
properties along 63rd Street will likely come from 60th Street,
travel north on National Avenue or Gulby Avenue, and then
proceed west down 63rd Street to their destination.
[Schliem’s Response]: Admit that is a legal alternative access
constructed by [the State] following its closure of the
intersection at 63rd and Cliff. After the closure of the
intersection, drivers attempting to reach the properties also use
routes across the Perkins Restaurant property (Lot 19) to reach
E. 63rd St. or use Wayland Avenue from 60th or 61st. Neither
these nor any alternative built by the State provides a reasonable
replacement access.
[State’s Fact 18]: After the Project, drivers coming from the
east on 60th Street will likely travel about 1,500 feet less to
reach the Property.
[State’s Fact 19]: After the Project, drivers coming from the
west on 60th Street or the south on Cliff Avenue will likely
travel about 1,100 feet more to reach the Property.
[State’s Fact 20]: After the Project, drivers coming from the
north on Cliff Avenue will likely travel about 3,050 feet farther
to reach the Property.
[Schliem’s Response]: Admit but deny the alternative routes
provide reasonable access which is why the fair market value of
the properties has diminished significantly.
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(Emphasis added.) According to Schliem, “[t]hese disputed facts prohibit summary
judgment.”
[¶10.] Although the foregoing certainly establishes a dispute between the
parties, it does not establish a genuine issue of material fact. Schliem and the State
disagree that the replacement access to the Property via National and Gulby
Avenues is reasonable. However, the question whether replacement access is
reasonable is synonymous with the question whether a landowner’s right of access
has been substantially impaired. See Hurley v. State, 82 S.D. 156, 163-64,
143 N.W.2d 722, 726 (1966). Although some jurisdictions have held that this
question is one of fact, “[i]n most jurisdictions, the issue . . . is a question of law.”
4A Julius L. Sackman, Nichols on Eminent Domain § 14.02[3][c][ii] (3d ed., rel. 116-
12/2014). 5 South Dakota adheres to the majority rule. Rupert v. City of Rapid City,
2013 S.D. 13, ¶ 29, 827 N.W.2d 55, 67 (“[T]he ultimate determination of whether
government conduct constitutes a taking or damaging is a question of law for the
court.”); Hall v. State ex rel. S.D. Dep’t of Transp., 2006 S.D. 24, ¶ 8, 712 N.W.2d 22,
5. See Triangle, Inc. v. State, 632 P.2d 965, 967-68 (Alaska 1981); Breidert v. S.
Pac. Co., 394 P.2d 719, 722 n.4 (Cal. 1964) (en banc); State Dep’t of Hwys.,
Div. of Hwys. v. Davis, 626 P.2d 661, 665 (Colo. 1981) (en banc); Palm Beach
Cty. v. Tessler, 538 So. 2d 846, 850 (Fla. 1989); Dep’t of Transp. v. Taylor,
440 S.E.2d 652, 655 (Ga. 1994); Dep’t of Pub. Works & Bldgs. v. Wilson & Co.,
340 N.E.2d 12, 17 (Ill. 1975); Teachers Ins. & Annuity Ass’n of Am. v. City of
Wichita, 559 P.2d 347, 357 (Kan. 1977); State ex rel. Dep’t of Hwys. v.
Linnecke, 468 P.2d 8, 10 (Nev. 1970); Narciso v. State, 328 A.2d 107, 110 (R.I.
1974); State v. Heal, 917 S.W.2d 6, 9 (Tex. 1996); Stefan Auto Body v. State
Hwy. Comm’n, 124 N.W.2d 319, 321 (Wis. 1963). Contra State ex rel. Herman
v. Schaffer, 467 P.2d 66, 72 (Ariz. 1970) (en banc); Wilson v. Iowa State Hwy.
Comm’n, 90 N.W.2d 161, 167-68 (Iowa 1958); Hendrickson v. State,
127 N.W.2d 165, 172 (Minn. 1964); Balog v. State, Dep’t of Rds., 131 N.W.2d
402, 410 (Neb. 1964); Cady v. N.D. Dep’t of Transp., 472 N.W.2d 467, 470
(N.D. 1991); State Hwy. Comm’n v. Peters, 416 P.2d 390, 395 (Wyo. 1966).
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25 (“[W]hether a taking occurred is a question of constitutional law which we review
de novo.”); Hurley, 82 S.D. at 163-64, 143 N.W.2d at 726 (conducting de novo review
of determination that landowner’s access had been substantially impaired). 6
[¶11.] Additionally, Schliem’s argument on appeal that the record needs to be
more fully developed before judgment is appropriate stands in direct opposition to
his argument before the circuit court. Schliem himself asked the circuit court to
render summary judgment. In doing so, he necessarily represented to the court
that the material facts of this case were undisputed. See SDCL 15-6-56(c)(1) (“A
party moving for summary judgment shall attach to the motion a separate, short,
and concise statement of the material facts as to which the moving party contends
there is no genuine issue to be tried.”). Moreover, in order to avoid summary
judgment, Schliem had an obligation to raise a genuine issue of material fact in
response to the State’s motion for summary judgment. Gades, 2015 S.D. 42, ¶ 7,
865 N.W.2d at 158 (“If the moving party properly supports the motion, the
nonmoving party may only avoid summary judgment by ‘setting forth specific facts
showing that there is a genuine issue for trial.’” (quoting SDCL 15-6-56(e))). Thus,
even if Schliem was able to produce evidence demonstrating a genuine issue of
material fact at this point, he failed to do so either in his own motion for summary
6. At oral argument, counsel for Schliem conceded that the question whether
compensation is due under Article VI, § 13, of the South Dakota
Constitution—e.g., whether a landowner’s right of access has been
substantially impaired—is a question of law.
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judgment or in his responses to the State’s motion for summary judgment. 7
Therefore, we proceed to the legal merits.
[¶12.] By the time of South Dakota’s 1885 constitutional convention, many
courts in other states had interpreted their states’ respective takings clauses as
limiting compensation to cases where a state physically appropriated or invaded
land (e.g., “by superinduced additions of water, earth, sand, or other matter”).
Searle v. City of Lead, 10 S.D. 312, 316, 73 N.W. 101, 103 (1897). This limited
interpretation of takings clauses resulted from “construing the word ‘property’ in its
narrow sense as the ‘thing’ owned, rather than giving to it the broader and truer
meaning of, ‘the exclusive right to possess, enjoy, and dispose of, a thing[.]’” Hyde v.
Minn., Dak. & Pac. Ry. Co., 29 S.D. 220, 229, 136 N.W. 92, 95 (1912). Under these
early decisions, “there was no provision against the mere ‘damaging’ of the thing
7. The dissent notes that “cross-motions for summary judgment do ‘not mean
that there are no genuine issues, obliging a court to grant judgment for one
side or the other. Both motions must be denied if the court detects genuine
issues of fact or genuine issues regarding the inferences to be drawn from the
facts.’” Infra ¶ 41 n.26 (emphasis added) (quoting St. Paul Fire & Marine
Ins. Co. v. Engelmann, 2002 S.D. 8, ¶ 15, 639 N.W.2d 192, 199). Contrary to
the dissent’s implication, this opinion does not suggest otherwise. The point
is that Schliem had multiple opportunities to assert facts that he viewed as
material and disputed. He failed to do so both before the circuit court and in
argument to this Court. See supra ¶¶ 9-10. While the dissent would
nevertheless reverse to grant Schliem yet another opportunity to do so, our
firmly established summary-judgment jurisprudence requires otherwise. See
Gades, 2015 S.D. 42, ¶ 7, 865 N.W.2d at 158.
Like Schliem, the dissent also fails to identify any issue of material fact in
this case. Instead, the dissent is premised on Schliem’s incorrect argument
that the parties’ disagreement on the reasonableness of the remaining access
is a factual dispute. See infra ¶¶ 31-32 & nn.20-21. As explained above, the
question whether access has been substantially impaired (i.e., whether
remaining access is reasonable) is a question of law, not a question of fact.
See supra ¶ 10 & n.5.
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which was the subject of property[;] . . . one could recover only when there was an
actual ‘taking of the thing.’” Id. In recognition of this limitation, the drafters of
South Dakota’s constitution added the words or damaged to Article VI, § 13. 8 See
Searle, 10 S.D. at 317-19, 73 N.W. at 103-04. Thus, “[p]rivate property shall not be
taken for public use, or damaged, without just compensation[.]” S.D. Const. art. VI,
§ 13.
[¶13.] In light of the foregoing, the first step in any Article VI analysis 9 must
be to determine whether a recognized property right has been infringed by state
8. This conclusion is confirmed by an examination of the constitutional debates
of 1885. During debate on the meaning of the proposed Article VI, attorney
Robert Dollard commented:
As I remember it, [the Takings Clause] was in the constitution
of the state of Illinois, 1848, which was superceded by the
constitution of 1870. That didn’t work right. Their experience
proved that that was not sufficient to protect the people; hence
[the] addition [of the words or damaged]. Their condition and
our condition is substantially the same. The reason for the
addition here is the same as there—that private property shall
never be damaged without just compensation. . . . [I]t was held,
and I think it was uniformly held by the Supreme Court of the
state of Illinois, that it was only the property taken that a man
could demand compensation for. They might destroy his
property incidentally, but if they did not take it he was not
entitled to recover a penny’s compensation.
1 Dak. Const. Convention 297 (1885) (Doane Robinson ed., 1907). Mr.
Dollard—who was elected attorney general for the provisional government in
1885 and went on to become South Dakota’s first attorney general—was
uniquely qualified to make these comments. Before moving to Dakota
Territory in 1879, Mr. Dollard was admitted to the Illinois bar in 1870.
9. As the California Supreme Court has explained: “An inverse condemnation
action is an eminent domain proceeding initiated by the property owner
rather than the condemner. The principles which affect the parties’ rights in
an inverse condemnation suit are the same as those in an eminent domain
action.” Breidert, 394 P.2d at 721 n.1. Compare Hurley, 82 S.D. at 161,
(continued . . .)
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conduct. Schliem contends he is entitled to compensation because the Intersection’s
closure reduced the value of his property. He also contends the closure caused the
“loss of assemblage rights.” Finally, he claims he had “a legal interest in the
intersection at Cliff Avenue and 63rd Street” and that the State substantially
impaired his right to access his property by closing the Intersection. None of these
arguments are convincing.
[¶14.] Schliem first contends that the devaluation of the Property alone is
sufficient to warrant compensation under Article VI, § 13. However, a landowner is
not entitled to compensation under Article VI simply because he has suffered some
loss or his property has been devalued as a result of state action. “A property right
must be invaded before compensation is allowed.” Darnall v. State, 79 S.D. 59, 70,
108 N.W.2d 201, 207 (1961); Hyde, 29 S.D. at 233-34, 136 N.W. at 97 (“Legal
damage is the loss or detriment caused by . . . the infringement of some right vested
in one.”). 10 “Moreover, one is not [entitled to compensation], though he may have
suffered [loss], unless he has suffered the infringement of some right vested in him
which right is superior to the right vested in the party causing the damage . . . .”
Hyde, 29 S.D. at 234, 136 N.W. at 97 (emphasis added). Thus, the word damaged,
as used in the South Dakota Constitution, contemplates only legal injury. Id.
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(. . . continued)
143 N.W.2d at 725 (requiring peculiar injury for recovery in inverse-
condemnation case), with State Hwy. Comm’n v. Bloom, 77 S.D. 452, 461,
93 N.W.2d 572, 577 (1958) (requiring peculiar injury for recovery in formal-
condemnation case).
10. “What property is and the rights that attach to ownership are primarily a
matter of state law.” 2 Julius L. Sackman, Nichols on Eminent Domain
§ 5.01[2] (3d ed., rel. 102-7/2011).
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When a recognized property interest has not been infringed, “[t]here is no redress,
as there is no wrong to redress, though the [loss] may be great in dollars and cents.”
Id. (emphasis added); accord 4A Sackman, supra ¶ 10, § 14.03[2][c][i] (citing
Campbell v. United States, 266 U.S. 368, 45 S. Ct. 115, 69 L. Ed. 328 (1924)). 11
Therefore, in the absence of a recognized property right, the mere devaluation of
property resulting from state conduct is not a legally cognizable injury and is not
11. Some decisions seem to categorically deny compensation when the state
action complained of is labeled a manifestation of the police power rather
than the power of eminent domain. For example, this Court has said that
relocations of a highway, prohibitions against crossing it or
against left and U turns, the designation of one-way streets and
other similar restrictions and regulations have been upheld as
proper exercises of the police power of the state and not of the
power of eminent domain. As such they are not compensable.
Darnall, 79 S.D. at 68, 108 N.W.2d at 206. However, “[t]he distinction is not
whether [the conduct at issue] is a valid exercise of police power but
whether . . . the property itself is taken or damaged.” Hurley, 82 S.D. at 162,
143 N.W.2d at 725 (quoting Balog, 131 N.W.2d at 408). “While courts have
assumed that designating a regulation an exercise of police power prevents
compensation by eminent domain proceedings, for practical purposes this is
simply a convenient way of describing which activities confer a right to
damages and which do not.” Id. at 162-63, 143 N.W.2d at 726 (emphasis
added) (quoting Hendrickson, 127 N.W.2d at 170).
The fact that [the State] had under the police power the right to
improve its streets and thereby control the traffic thereon does
not mean that it had immunity from liability to respond in
damages which resulted to private property abutting the
improvement where a part of the property of appellee was taken
by condemnation. The exercise of police power may or may not
involve the taking of private property and it may or may not
involve mere non-compensable inconvenience to the owner
thereof.
Id. at 162, 143 N.W.2d at 725 (emphasis added) (quoting Balog, 131 N.W.2d
at 408). Thus, statements like that in Darnall should simply be read as
recognizing that loss resulting from a state’s use of its police power is
typically—though not always—noncompensable.
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compensable under Article VI, § 13. See Morris Family, LLC ex rel. Morris v. S.D.
Dep’t of Transp., 2014 S.D. 97, ¶ 28, 857 N.W.2d 865, 873-74.
[¶15.] Next, Schliem contends he is entitled to compensation for the “loss of
assemblage rights.” However, Schliem has not cited any decision—let alone one
from this Court—holding that a landowner’s intent to participate in an assemblage
is a property right contemplated by Article VI, § 13. On the contrary, the doctrine of
assemblage is simply a valuation rule that can affect the measure of compensation
due if a recognized property interest has been infringed. 12
The doctrine of assemblage applies when the highest and best
use of separate parcels involves their integrated use with lands
of another. Pursuant to this doctrine, such prospective use may
be properly considered in fixing the value of the property if the
joinder of the parcels is reasonably practicable. If applicable,
this doctrine allows a property owner to introduce evidence
showing that the fair market value of the owner’s real estate is
enhanced by its probable assemblage with other parcels.
Miller v. Preisser, 284 P.3d 290, 297-98 (Kan. 2012) (quoting 4 Julius L. Sackman,
Nichols on Eminent Domain § 13.01[20] (3d ed., 2003)). As explained above,
however, the fair-market value of a property is not relevant in a condemnation case
unless the predicate question—i.e., whether a recognized property right has been
infringed—has already been affirmatively answered. See supra ¶ 14. If a
12. As noted above, “the ultimate determination of whether government conduct
constitutes a taking or damaging is a question of law for the court.” Rupert,
2013 S.D. 13, ¶ 29, 827 N.W.2d at 67; accord Hall, 2006 S.D. 24, ¶ 8,
712 N.W.2d at 25; 4A Sackman, supra ¶ 10, § 14.02[3][c][ii]. If the court
determines a property right has been taken or damaged, then the case
proceeds to a jury. However, our Legislature has declared that “[t]he only
issue that shall be tried by the jury . . . shall be the amount of compensation
to be paid for the property taken or damaged.” SDCL 31-19-4 (emphasis
added); accord SDCL 21-35-15.
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recognized property right has not been infringed, then no compensation is due.
Thus, because the presence of an assemblage would only affect the measure of
compensation, and because the mere allegation of loss is not sufficient to establish a
right to compensation under Article VI, § 13, the State’s alleged frustration of
Schliem’s intent to participate in an assemblage does not support his claim that he
is entitled to compensation under Article VI, § 13. 13
[¶16.] Finally, Schliem contends he has a legal interest in the Intersection—
i.e., a right to access the Intersection via 63rd Street. Our cases establish that “the
owner of land [has a special, private right] to access [his] land . . . where it abuts
upon a highway.” Hyde, 29 S.D. at 238, 136 N.W. at 99. This right “extends
sufficiently beyond his own premises as to insure him reasonable facilities for
connection with [nonabutting] highways[.]” Id. at 238-39, 136 N.W. at 99 (emphasis
added). Thus,
[p]roperty ownership includes two access related rights:
the right to pass to or from the public way immediately
adjacent to the land (“ingress and egress”);
13. The dissent makes a similarly erroneous argument by claiming that “[i]n
Hurley, this Court considered a property’s highest and best use when
determining whether a substantial impairment occurred.” Infra ¶ 37. This
claim is factually incorrect. We did not use the change in highest and best
use of the property as a basis for concluding a taking had occurred; rather, we
referenced the highest and best use in stating the method for calculating the
resulting compensation due. In Hurley, we said:
The measure of damages for the obstruction or substantial
impairment of an abutting landowner’s right of access to a street
or highway is the difference between the market value of the
property considered at its highest, best, and most profitable use
immediately before and immediately after the destruction or
impairment.
82 S.D. at 164, 143 N.W.2d at 726 (emphasis added).
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and the right to go somewhere else once the owner is upon
the abutting road, or the right of access to the entire
system of roads.
8A Patrick J. Rohan & Melvin A. Reskin, Nichols on Eminent Domain
§ G16.03[2][a] (3d ed., rel. 109-5/2013). Except for the right to access an abutting
highway, “the law . . . does not protect any particular access route[.]” 2A Julius L.
Sackman, Nichols on Eminent Domain § 6.02[5][c] (3d ed., rel. 106-7/2012); accord
State, Idaho Transp. Bd. v. HI Boise, LLC, 282 P.3d 595, 600 (Idaho 2012). “The
right of access is unimpaired if an alternative means of reasonable access exists.”
2A Sackman, supra ¶ 16, § 6.02[7]; accord Hyde, 29 S.D. at 238-39, 136 N.W. at 99.
Schliem’s property does not abut Cliff Avenue or the Intersection—it only abuts
63rd Street. Therefore, contrary to Schliem’s contention, he does not have a right of
access to the Intersection per se; instead, he is simply entitled to reasonably
convenient access to the system of public highways.
[¶17.] Not every change in access to the system of public highways is
unreasonable such that a property owner is entitled to compensation. The right of
access is infringed in the constitutional sense only when it is destroyed or
substantially impaired. See Hurley, 82 S.D. at 163, 143 N.W.2d at 726; Darnall,
79 S.D. at 70, 108 N.W.2d at 207. “Courts uniformly agree that a reduction in value
resulting from ‘diversion of traffic’ is noncompensable, as is ‘mere circuity of travel.’”
8A Rohan & Reskin, supra ¶ 16, § G16.03[2][a]. 14 Although “[m]ost directional
14. The phrases diversion of traffic and mere circuity of travel refer to distinct
legal concepts.
“Diversion of traffic” implies a reduction in the volume of traffic
passing adjacent to the property, and concomitant loss of
(continued . . .)
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traffic regulations, by their very nature, involve mere diversion of traffic and
circuity of travel[,]” id. § G16.03[2][c][iv], some may nevertheless result in a
substantial impairment of access. For example, “[g]overnmental activity that
totally landlocks a parcel which previously had access is a taking of property.” Id.
§ G16.02[2][b][i]. Likewise, substantial increases in circuity may be compensable.
See Darnall, 79 S.D. at 67, 108 N.W.2d at 205 (“Circuity of travel is not a
compensable damage under these circumstances . . . .” (emphasis added)); City of
Memphis v. Hood, 345 S.W.2d 887, 890 (Tenn. 1961) (discussing State v. Rascoe,
178 S.W.2d 392 (Tenn. 1944), which held an increased-travel distance of about
seven miles compensable). 15 Other changes in the physical dimensions and
conditions of access may also amount to a substantial impairment. See City of Waco
v. Texland Corp., 446 S.W.2d 1, 4 (Tex. 1969) (holding the narrowing of an existing
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(. . . continued)
patronage. Since government has no vested interest or duty to
ensure that a business is successful when it builds roads for the
future, an owner likewise can have no reasonable expectation
that such roads are fixed forever. The task is to isolate “mere”
diversion of traffic cases from compensable takings which,
coincidentally, divert traffic.
Circuity of travel implies an indirect and more inconvenient
means of reaching the property.
8A Rohan & Reskin, supra ¶ 16, § G16.03[2][a].
15. Our citation to City of Memphis v. Hood should not be read as suggesting that
every increase in circuity of less than seven miles is noncompensable. “The
difference between ‘mere circuity of travel’ and unsuitable access is one of
degree, and is directly related to the unique fact pattern in every case.”
8A Rohan & Reskin, supra ¶ 16, § G16.03[2][a].
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street by the installation of support piers for an overpass substantially impaired
access to industrial property by preventing use of transport trucks). 16
[¶18.] In this case, the physical characteristics of Schliem’s access routes
before and after the Intersection’s closure are nearly identical. Schliem’s property
does not abut the Intersection, and the Intersection’s closure did not affect his
16. Although the dissent acknowledges that the circuit court applied the correct
legal test in this case, the dissent would nevertheless “remand for an
evidentiary hearing to more fully develop the record and to apply the test
articulated in Miller & Walsh.” Infra ¶ 41. It similarly claims that “[t]he
circuit court did not include an analysis of the factors it considered to reach
[its] conclusion, nor did it have the benefit of the guidance provided by this
Court in Miller & Walsh.” Infra ¶ 33 (footnote omitted). There are several
problems with this argument.
The dissent’s argument is inconsistent with our Miller & Walsh decision.
The significance of Miller & Walsh is the clarification of when to apply the
substantial-impairment rule—i.e., a change in access may not be included in
calculating the compensation due in the case of a partial taking unless the
change in access amounts to a substantial impairment of access. See Miller
& Walsh, 2016 S.D. 88, ¶¶ 45-46, ___ N.W.2d at ___ (overruling Schuler v.
Bd. of Supervisors of Lincoln Twp., 12 S.D. 460, 81 N.W. 890 (1900)). Unlike
Miller & Walsh, the present case does not involve a partial taking; therefore,
the central holding of Miller & Walsh has no application in the present case.
Although the substantial-impairment rule is of course discussed in Miller &
Walsh, it did not originate there—that rule has been the law in this State for
well over a century. See Hurley, 82 S.D. at 164, 143 N.W.2d at 726-27 (1966);
Searle, 10 S.D. at 316-19, 73 N.W. at 103-04 (1897). Thus, our Miller &
Walsh decision is not necessary to resolve the issue on appeal in this case.
Even if it was, the dissent’s argument is misconceived because it ignores both
the procedural posture of this case and the standard under which we review
the circuit court’s decision. In contrast to Miller & Walsh, which involves the
appeal of a jury verdict, the present case is an appeal of an order granting
summary judgment. Thus, as the dissent concedes, see infra ¶ 33 n.23, the
circuit court was not required to offer any analysis or issue any conclusions of
law whatsoever. SDCL 15-6-52(a) (“Findings of fact and conclusions of law
are unnecessary on decisions of motions [for summary judgment].”).
Moreover, as noted above, this Court does not afford any deference to the
circuit court’s conclusions of law on appeal—we apply the de novo standard of
review. See supra ¶ 10. Because we are not bound by the circuit court’s legal
conclusions, the law applied by the circuit court is immaterial to our decision.
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ability to access 63rd Street in any way. Before the closure, he had to travel
approximately 748 feet on 63rd Street—all of which was unimproved, gravel road—
before connecting to the general system of public highways. After the closure, he
must travel approximately 834 feet on 63rd Street—of which only 534 feet is
unimproved, gravel road—to reach the general system of public highways. An
increase in circuity of only 86 feet (or about 0.0163 mile) is substantially less than
increased circuity held to be noncompensable in other cases. 17 See Darnall, 79 S.D.
at 62, 108 N.W.2d at 202 (holding one-mile diversion noncompensable); Triangle,
632 P.2d at 967 (holding one-half-mile diversion noncompensable); Ark. State Hwy.
Comm’n v. Bingham, 333 S.W.2d 728, 729 (Ark. 1960) (holding diversion of more
than one mile noncompensable). While not every case alleging an impairment of
access can be decided by simply comparing travel distances, in this case the two
access routes presented for comparison (eastbound and westbound 63rd Street) are
physically identical in all other relevant respects. Under these facts, the Property
has not been landlocked, and Schliem’s replacement access is only marginally more
circuitous while otherwise physically identical. Therefore, we conclude that the
Intersection’s closure did not substantially impair Schliem’s general right of access
to the system of public highways, and any inconvenience occasioned thereby is not
compensable.
17. The dissent’s contrasting calculation that “those accessing Schliem’s property
from Cliff Avenue will travel 3,050 feet farther[,]” infra ¶ 30 n.19, reflects the
dissent’s erroneous belief that a nonabutting landowner has a right to access
his property via a particular route. As previously explained, a nonabutting
landowner has no such right. See supra ¶ 16.
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[¶19.] Even if Schliem’s access was materially and substantially impaired by
the intersection closure, he is not entitled to compensation. “[I]f the right of access
is destroyed or materially impaired, the damages are compensable if the injury
sustained is peculiar to the owner’s land and not of a kind suffered by the public
generally.” Hurley, 82 S.D. at 163, 143 N.W.2d at 726 (emphasis added). “Land
that does not directly abut the discontinued roadway and which is still accessible by
other public roadways is not specially damaged.” 2A Sackman, supra ¶ 16,
§ 6.01[12][c] n.74; accord Hyde, 29 S.D. at 239, 136 N.W. at 99 (“[A]ny interference
with a highway beyond the point where one’s special rights end is not a ‘taking or
damaging’ of property, and is not the infringement of any right giving rise to [an]
action for damages.”). As previously noted, Schliem’s land does not abut the
discontinued intersection, and the Property remains accessible from the east.
Therefore, Schliem’s loss is “different . . . merely in degree from that experienced by
the general public.” Rupert, 2013 S.D. 13, ¶ 10, 827 N.W.2d at 61 (quoting Krier v.
Dell Rapids Twp., 2006 S.D. 10, ¶ 26, 709 N.W.2d 841, 848); see also Hyde, 29 S.D.
at 243, 136 N.W. at 101 (“Possibly the depreciation in plaintiff’s property might
have been greater in degree than that of other owners of property in the vicinity,
but it was of the same nature, and did not physically interfere with any right,
easement, or appurtenance belonging to the plaintiff’s property.”). As such, it is not
compensable under Article VI, § 13.
[¶20.] Schliem nevertheless contends that under our decisions Hall and
Hurley, the circuit court erred by not considering the reasonableness of the State’s
decision to close the Intersection. In Hall, landowners owned a truck stop that
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abutted Interstate 90 and Ellsworth Road in Box Elder. The State closed the
interchange between Interstate 90 and Ellsworth Road, and the landowners closed
their business due to the resulting decline in sales. They brought an inverse-
condemnation action against the State, but the circuit court granted a motion for
summary judgment in favor of the State. Hall, 2006 S.D. 24, ¶¶ 1-7, 712 N.W.2d
at 23-24. In reversing and remanding, we said:
[T]he [circuit] court limited [its] analysis to whether the Owners
had a property right to passing traffic. The trial court did not
consider whether Owners still had reasonable access, whether
their access was materially impaired, or whether their injury
was peculiar to their land and not of a kind suffered by the
public generally. Also, the court did not address whether the
State’s action was arbitrary or unreasonable.
Id. ¶ 20, 712 N.W.2d at 30 (emphasis added). Based on the foregoing language from
Hall, Schliem concludes that in reviewing an inverse-condemnation claim, a circuit
court must always determine whether the State conduct at issue was reasonable.
[¶21.] A careful reading of Hall and Hurley reveals two distinct
reasonableness concepts. The first simply refers to the standard stated above: no
compensable injury to access occurs when a landowner is left with reasonable access
to his property. See supra ¶¶ 16-17. In Hall, we said: “[C]onsideration must be
given to the reasonableness of the exercise of the state’s police powers.” 2006 S.D.
24, ¶ 19, 712 N.W.2d at 30. However, we immediately explained and qualified this
statement by quoting the following language from Hurley:
The state cannot, under the guise of the police power, impose
unreasonable or arbitrary regulations which go beyond that
power, and in effect deprive a person of his property within the
purview of the law of eminent domain, as by depriving the
owner of all profitable use of the property not per se injurious or
pernicious, restricting the lawful uses to which the property can
be put and destroying its value, permanently so restricting the
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use of the property that it cannot be used for any reasonable
purpose, or completely destroying the beneficial interest of the
owner.
Hall, 2006 S.D. 24, ¶ 19, 712 N.W.2d at 30 (quoting Hurley, 82 S.D. at 163,
143 N.W.2d at 726). In Hurley, we introduced this quoted language with the phrase
“In other words,” which immediately followed the conclusion that a landowner is
only entitled to compensation when “the right of access is destroyed or materially
impaired” and the resulting loss is peculiar to the owner’s land. Hurley, 82 S.D.
at 163, 143 N.W.2d at 726. In context, then, considering the reasonableness of state
conduct simply refers to determining whether the landowner is left with reasonable
access—i.e., whether the owner’s right of access has been substantially impaired.
[¶22.] The second reasonableness concept mentioned in Hall and Hurley
relates to the validity of the State’s purpose. In Hall, we said: “The State’s
purpose . . . is material in determining whether the State’s exercise of police power
was unreasonable and arbitrary.” 2006 S.D. 24, ¶ 21, 712 N.W.2d at 30. In the
present case, however, the parties do not dispute the validity of the State’s purpose
in closing the Intersection. 18 Even if they did, the question whether a state’s
purpose is valid necessarily precedes the takings analysis. As the United States
Supreme Court has explained:
18. It is undisputed that the reason for the State’s decision to close the
Intersection was to facilitate efficient traffic movements on Cliff Avenue and
the Interstate 90 on-ramp. In its statement of undisputed material facts
supporting its motion for summary judgment, the State asserted: “The
proximity of [the intersection of Cliff Avenue and 63rd Street] to the on-ramp
hindered efficient traffic movements on Cliff Avenue and the interstate
ramp.” In his response, Schliem admitted this assertion without
qualification.
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[S]uch an inquiry is logically prior to and distinct from the
question whether a regulation effects a taking, for the Takings
Clause presupposes that the government has acted in pursuit of
a valid public purpose. The Clause expressly requires
compensation where government takes private property “for
public use.” It does not bar government from interfering with
property rights, but rather requires compensation “in the event
of otherwise proper interference amounting to a taking.”
Conversely, if a government action is found to be
impermissible—for instance because it fails to meet the “public
use” requirement or is so arbitrary as to violate due process—
that is the end of the inquiry. No amount of compensation can
authorize such action.
Lingle v. Chevron U.S.A. Inc., 544 U.S. 528, 543, 125 S. Ct. 2074, 2084,
161 L. Ed. 2d 876 (2005) (citation omitted) (quoting First English Evangelical
Lutheran Church of Glendale v. L.A. Cty., Cal., 482 U.S. 304, 315, 107 S. Ct. 2378,
2386, 96 L. Ed. 2d 250 (1987)). Likewise, a regulation with an invalid purpose
might “not significantly burden property rights at all, and it may distribute any
burden broadly and evenly among property owners. The notion that such a
regulation nevertheless ‘takes’ private property for public use merely by virtue of its
[invalid purpose] . . . is untenable.” See id.
[¶23.] In light of the foregoing, Schliem’s contention that the circuit court
failed to address the reasonableness of the Intersection’s closure is only partially
correct—the circuit court did not address the validity of the State’s purpose because
Schliem did not challenge that purpose as improper. However, unlike Hall, the
court did address the reasonableness of the State’s conduct in the context of
determining whether reasonable access to Schliem’s property remained after the
Intersection’s closure. The court specifically concluded: “In this case [Schliem’s]
right of access has not been ‘substantially’ impaired.” Therefore, the circuit court
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addressed the only question of reasonableness Schliem presented and correctly
concluded that he is not entitled to compensation.
Conclusion
[¶24.] Article VI, § 13, of the South Dakota Constitution does not require
compensation unless state conduct has infringed a recognized property interest.
“[T]he mere allegation that plaintiff has suffered damage [does not] suffice . . . .”
Hyde, 29 S.D. at 236, 136 N.W. at 98. In order for a change in access to constitute
an infringement of a property right in the constitutional sense, a landowner’s access
must be destroyed or substantially impaired. In this case, Schliem’s immediate
access to the highway abutting his property is completely unaffected by the
Intersection’s closure. While his access route to the general system of public
highways has changed, his access has not been substantially impaired. Schliem
failed to allege a genuine issue regarding any fact necessary to reach this
conclusion, and we see no basis for giving him another opportunity to do so.
Therefore, Schliem has not suffered compensable loss by the Intersection’s closure,
and the circuit court did not err in granting the State’s motion for summary
judgment.
[¶25.] We affirm.
[¶26.] ZINTER, SEVERSON, and WILBUR, Justices, concur.
[¶27.] KERN, Justice, dissents.
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KERN, Justice (dissenting).
[¶28.] I respectfully dissent. I would reverse and remand for an evidentiary
hearing so the record can be more fully developed and the test recently articulated
in State v. Miller & Walsh, 2016 S.D. 88, ¶ 44, ___ N.W.2d ___, ___, applied.
[¶29.] Before the State’s project, Schliem had two access points to and from
his property. One was from the south on Wayland Avenue—“a seventeen-foot-wide
dirt road that is sometimes impassable.” The other was from the west on Cliff
Avenue. The only street abutting Schliem’s property, 63rd Street, ended in a dead
end east of his property. The development to the east of Schliem’s property is
predominately industrial. The development to the west is predominately
commercial.
[¶30.] As part of its project, the State closed the Cliff Avenue access. The
State opened the dead end on 63rd Street to the east of Schliem’s property and
extended it to intersect with National Avenue and Gulby Avenue. In essence, the
State’s action reversed the orientation of Schliem’s property where what used to be
the front with prime commercial access is now the back without any access—and
the front is now accessed by driving through an industrial park. 19
[¶31.] During the summary-judgment proceedings, Schliem maintained that
the replacement access provided by the State was unreasonable. He offered three
property appraisals into the record. The appraisals showed that before the State
19. Those wishing to access Schliem’s property from Cliff Avenue before the
State’s project turned east onto 63rd Street and traveled approximately 748
feet. After the project, those accessing Schliem’s property from Cliff Avenue
will travel 3,050 feet farther—through an industrial park.
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closed the Cliff Avenue access, the highest and best use of Schliem’s property was
commercial development. However, after the State closed the Cliff Avenue access
and opened the new access point to the east, the highest and best use of his
property changed from commercial use to industrial.
[¶32.] The State failed to refute this evidence. Instead, one week before the
summary-judgment hearing, the State submitted an affidavit stating that, “[i]f the
[c]ourt agrees with [Schliem] that the proper test for compensability is whether [he]
lost reasonable access . . . then the State asks for a continuance to permit the State
to obtain additional evidence on this subject.” The State maintained that it needed
to gather evidence “necessary to establish that the intersection of Cliff Avenue and
63rd Street would not provide reasonable commercial access to [Schliem’s]
property.” A continuance was not granted, and the summary-judgment hearing was
held as scheduled. At the summary-judgment hearing, the State urged the court
not to consider the reasonableness of the remaining access and to only look to
whether the injury was peculiar to the land and not the kind of injury suffered by
the general public. 20 The State also asked to submit additional evidence if the court
considered the reasonableness of Schliem’s remaining access. 21
20. The State argued that “the test for reasonable access applies [only] to
landowners who abut a street where their access ha[d] been changed.”
Because Schliem’s property did not abut the access closure on Cliff Avenue,
the State maintained that the court must only consider whether Schliem
could show a special injury. The state submitted, “So it’s this special injury
test that applies in this case, not a reasonableness standard.”
21. The State urged, “[I]f the [c]ourt decides that you agree with them and that
these old cases justify them claiming damages in inverse condemnation as a
result of the closure of the intersection, if you think that’s the right test, that
(continued . . .)
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[¶33.] Following the summary-judgment hearing, the circuit court issued a
letter decision concluding Schliem’s access had not been substantially impaired. 22
The circuit court did not include an analysis of the factors it considered to reach this
conclusion, 23 nor did it have the benefit of the guidance provided by this Court in
Miller & Walsh. Remand is necessary in this case because the circuit court lacked
an adequate factual basis to fully consider and balance the unique facts of this case.
[¶34.] It is well settled that “a special private right . . . pertains, not only to
the part of the highway abutting the owner’s land, but extends sufficiently beyond
his own premises as to insure him reasonable facilities for connection with those
highways in which he has no special rights.” Hyde, 29 S.D. 220, 238-39, 136 N.W.
at 99. The taking or damaging of this right occurs when the State substantially
impairs a landowner’s access. Miller & Walsh, 2016 S.D. 88, ¶ 43, ___ N.W.2d
at ___.
________________________
(. . . continued)
it’s a reasonableness test instead of a special injury test that we urged, if
you think that’s the correct test, then we’d like the opportunity to submit
additional evidence . . . to prove that that intersection was not a good place
for commercial access for these lots to the east, and in addition, we’d like the
opportunity to prove that they didn’t suffer the damages that they claim.”
Additional evidence was not submitted to the circuit court.
22. The circuit court did not make a determination regarding whether Schliem’s
alleged injury was peculiar to his land and not the kind suffered by the public
in general.
23. While findings of fact and conclusions of law are “unnecessary” in summary
judgment cases, see SDCL 15-6-52(a), a reasoned analysis to support the
conclusion that a substantial impairment did or did not occur in light of the
unique facts of the case is warranted due to the fact-intensive nature of
inverse-condemnation cases.
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[¶35.] “The determination whether a substantial impairment occurred
requires a court to consider the unique fact pattern in each case.” Id. ¶ 44. Factors
that the court may consider include “the nature of the property involved, the
character of the access before and after governmental activity, and the location
(rural or urban).” Id. Moreover, even where normal access remains available, the
court may consider whether the “access for which the property was specifically
intended [has been] rendered [unreasonably] deficient.” Id. (quoting State v.
Dawmar Partners, Ltd., 267 S.W.3d 875, 879 (Tex. 2008)). In this particular case,
the State did not physically take any of Schliem’s land. Therefore, Schliem must
also demonstrate that the alleged injury he suffered is peculiar to his land and not
the kind suffered by the public in general. Bloom, 77 S.D. at 461, 93 N.W.2d at 577.
[¶36.] This Court has continually held that “[t]he difference between ‘mere
circuity of travel’ and unsuitable access is one of degree, and is directly related to
the unique fact pattern in every case.” Miller & Walsh, 2016 S.D. 88, ¶ 43 n.3, ___
N.W.2d at ____ n.3 (quoting 8A Rohan & Reskin, supra ¶ 16, § G16.03[2][a]). 24 The
24. See also Darnall, 79 S.D. at 70, 108 N.W.2d at 207 (“[W]here there is no
physical taking and the owner’s access to the highway on which he abuts is
not unreasonably diminished or interfered with, his loss is due to the
diversion of traffic, a lawful exercise of the police power and there can be no
recovery.”); Hurley, 82 S.D. at 163, 143 N.W.2d at 726 (“In each case,
therefore, the relative rights of the public and private interests must be
considered and the reasonableness of the regulation and the degree of its
interference with private property determined. If, after the construction of a
public improvement an abutting landowner continues to have reasonable
access to his property, he has no compensable complaint. But if the right of
access is destroyed or materially impaired, the damages are compensable if
the injury sustained is peculiar to the owner’s land and not of a kind suffered
by the public generally.”); Hall, 2006 S.D. 24, ¶ 18, 712 N.W.2d at 29 (“[A]
landowner’s right of access and the state’s police power to regulate highways
(continued . . .)
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majority concludes that Schliem’s “access routes before and after the Intersection’s
closure are nearly identical,” supra ¶ 18, and focuses on circuity of travel. In doing
so, it fails to adequately consider and balance Schliem’s evidence. Further, it
attempts to balance the parties’ relative rights and interests on an incomplete
record.
[¶37.] Schliem alleged that his remaining access was unreasonable and that
the highest and best use of his property changed from commercial to industrial. In
Hurley, this Court considered a property’s highest and best use when determining
whether a substantial impairment occurred. 25 82 S.D. at 163-64, 143 N.W.2d at
________________________
(. . . continued)
often conflict. This conflict clearly manifests when the state eliminates an
abutting landowner’s highway access . . . the relationship between the rights
of the property owner and the rights of the state must be considered in light
of the facts of each case.”).
25. Although Hurley involved an abutting landowner, this case is no different.
Abutting and nonabutting landowners may have differing property rights.
However, the change in highest and best use in Hurley went toward
determining whether the property right had been substantially impaired—
not whether there was an initial property right.
Before the construction of Interstate 90 free, open, and unobstructed
access was available from the property to both Omaha Street on the
south and West Boulevard on the east. Its highest, best and most
profitable use was for an automobile service station and one of the
major considerations contributing to its value for such purpose was the
right of access to two streets. Negotiations with major oil companies
were in progress when the state erected the steel barrier closing all
access to the property from West Boulevard and for a limited distance
on Omaha Street. The barrier left access only to the west-bound traffic
on Omaha Street. Likewise, all pedestrian traffic was closed off from
the east and from the south. Consequently, the Referee correctly
concluded plaintiffs’ right of access was substantially impaired and
they suffered a compensable loss.
Hurley, 82 S.D. at 163-64, 143 N.W.2d at 726.
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726. Other jurisdictions also recognize highest and best use of a property as a factor
to consider in determining whether access rights have been substantially impaired.
8A Rohan & Reskin, supra ¶ 16, § G16.03[2][a] (“Some courts hold that the issue of
reasonable remaining access can only be determined with reference to the highest
and best use of the property.”). In New York, it is well settled that “[s]uitability of
access is not to be determined in the abstract, but in relation to the need for access
inherent in the highest and best use of the property.” E.g., Chemung Canal Tr. Co.
v. State, 456 N.Y.S.2d 518, 519 (N.Y. App. Div. 1982). Other courts have rejected
this notion. See Dawmar, 267 S.W.3d at 879 (“We have implicitly rejected the
proposition that the degree of impairment of access must be evaluated in light of a
property’s highest and best use.”). Regardless, it is implicit from the language used
by this Court in Hurley that it endorsed consideration of the highest and best use of
the property as a factor when determining whether a substantial impairment of
access occurred. See supra n.25.
[¶38.] Ordinarily, on review, this Court considers the unique fact pattern of
the case and then ascertains the degree of the alleged impairment. However,
because there was inadequate evidence presented to the circuit court on the
reasonableness of Schliem’s remaining access, a fully balanced consideration cannot
be made and prevents a determination of whether Schliem’s access rights were
substantially impaired.
[¶39.] In addition to having an incomplete record, the circuit court decided
this case before our decision in Miller & Walsh. In that case, we reversed and
remanded and articulated specific factors that the court should use when
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determining whether access rights were substantially impaired. Those factors
included “the nature of the property involved, the character of the access before and
after governmental activity, and the location (rural or urban).” Miller & Walsh,
2016 S.D. 88, ¶ 44, ___ N.W.2d at ___. We also provided that the court must
consider whether the “access for which the property was specifically intended [has
been] rendered [unreasonably] deficient.” Id. It is unclear precisely what factors
the circuit court used when it concluded that Schliem’s access rights were not
substantially impaired, but it certainly did not have the benefit of this Court’s
guidance when this case was decided.
[¶40.] Based on the arguments and admissions of the parties, there was some
confusion as to what test applied in this case. See Hall, 2006 S.D. 24, ¶ 20, 712
N.W.2d at 30 (“Undoubtedly, the trial court’s analysis was hindered by the parties’
failure to thoroughly address the issues or offer sufficient evidence.”). The State
argued that the court should disregard the reasonableness of Schliem’s remaining
access—even though that is a factor in determining whether his access rights were
substantially impaired. Schliem focused on the devaluation of his property. And
while the circuit court articulated the correct test, there was also confusion on the
part of the court when it found that Schliem did not have a property right but then
went on to conclude that Schliem’s right of access was not substantially impaired.
[¶41.] All in all, this was a rush to summary judgment. 26 The circuit court
and this Court were not presented with adequate evidence to determine whether
26. The majority suggests that there are no genuine issues of material fact in
dispute and that Schliem, in filing his own motion for summary judgment,
(continued . . .)
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the State substantially impaired Schliem’s access. I would reverse and remand for
an evidentiary hearing to more fully develop the record and to apply the test
articulated in Miller & Walsh. If the circuit court concludes that Schliem’s access
rights were substantially impaired, it must then determine whether that
impairment was peculiar to his land.
________________________
(. . . continued)
“necessarily represented to the court that the material facts of this case were
undisputed.” Supra ¶ 11. However, we have held that cross-motions for
summary judgment do “not mean that there are no genuine issues, obliging a
court to grant judgment for one side or the other. Both motions must be
denied if the court detects genuine issues of fact or genuine issues regarding
the inferences to be drawn from the facts.” St. Paul Fire & Marine Ins. Co. v.
Engelmann, 2002 S.D. 8, ¶ 15, 639 N.W.2d 192, 199. Here, there were
inferences to be drawn from the facts necessary to make a determination on
substantial impairment. Moreover, Hall came to this Court on cross-motions
for summary judgment; yet we still reversed and remanded because the
parties disagreed on the purpose of the State’s action. Hall, 2006 S.D. 24,
¶ 21, 712 N.W.2d at 30. In this case, the parties disagreed on the
reasonableness of the remaining access—a factor which the circuit court must
consider before deciding whether Schliem’s access had been substantially
impaired.
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Schliem v. State Ex Rel. Department of Transportation
Court: South Dakota Supreme Court
Date filed: 2016-12-07
Citations: 2016 SD 90, 888 N.W.2d 217, 2016 S.D. LEXIS 154, 2016 WL 7238946
Copy CitationsCombined Opinion