Daugaard v. Baltic Co-op. Bldg. Supply Ass'n

Decision Date07 June 1984
Citation349 N.W.2d 419
CourtSouth Dakota Supreme Court
PartiesDorothy A. DAUGAARD, Executrix of the Estate of Dwight R. Daugaard, Deceased (# 14052 and # 14170) and Darwin R. Daugaard (# 14053 and # 14171) and Daniel Chmela (# 14129) and Clair Hines and Linda Hines (# 14136), Plaintiffs and Appellants, v. The BALTIC COOPERATIVE BUILDING SUPPLY ASSOCIATION, a South Dakota Cooperative Association (# 14144), Defendant and Appellee, and Baltic Farmers Elevator Company, a South Dakota Cooperative Association; and Tri-State Insurance Company of Minnesota, a Minnesota Corporation, Defendants, and Koopman & Sons Gas Company, Inc., a South Dakota Corporation; Leroy Koopman; Don Koopman; Helen Koopman (# 14146) and Minnehaha Cooperative Oil Company, a South Dakota Cooperative Association, Defendants and Appellees, and Crane Co., an Illinois Corporation (# 14117, # 14118, # 14153, # 14154), Defendant-Appellee and Third Party Plaintiff, and United States Steel Corporation, a Delaware Corporation and Republic Steel Corporation, a New Jersey Corporation, Third Party Defendants and Appellees.

Terry N. Prendergast and Gary J. Pashby of Boyce, Murphy, McDowell & Greenfield, Sioux Falls, for plaintiffs and appellants Daugaards, Chmela, and Hines.

Thomas M. Frankman of Willy, Pruitt, Matthews, Farrell, Frankman & Johnson, Sioux Falls, on the brief for plaintiff and appellant Chmela.

William F. Day, Jr., of Day, Grossenburg & Whiting, Winner, on the brief for plaintiffs and appellants Hines.

Edward J. Leahy of May, Johnson, Doyle & Becker, Sioux Falls, for defendant and appellee Baltic Co-op. Building Supply Ass'n.

Carleton R. Hoy and Michael F. Pieplow of Davenport, Evans, Hurwitz & Smith, Sioux Falls, on the brief for defendant Baltic Farmers Elevator Co.

David Gerdes of May, Adam, Gerdes & Thompson, Pierre, on the brief for defendant Tri-State Ins. Co. of Minnesota.

John E. Simko of Woods, Fuller, Shultz & Smith, Sioux Falls, for defendants and appellees Koopman & Sons Gas Co., Inc., Leroy Koopman, Don Koopman, and Helen Koopman.

James E. Doyle of Doyle, Bierle, Porter & Kennedy, Yankton, on the brief for defendant and appellee Minnehaha Co-op. Oil Co.

James A. Wyly of Richardson, Groseclose, Kornmann, Wyly, Wise & Klinkel, Aberdeen, for defendant-appellee and third party plaintiff Crane Co.

Michael E. Ridgway and Gerald L. Reads, of Brady, Kabeiseman, Reade, Abbott & Johnson, Yankton, on the brief for third party defendants and appellees U.S. Steel Corp.

Joseph M. Butler of Bangs, McCullen, Butler, Foye & Simmons, Rapid City, on

the brief for third party defendant and appellee Republic Steel Corp.

HENDERSON, Justice.

PREFACE

This action is a complicated consolidation of four primary actions seeking damages emanating from a propane gas explosion at the Baltic Farmers Elevator Company on May 28, 1980. The voluminous settled record, consisting of two large boxes, is digested for benefit of the parties, their attorneys, and a decision of this case. A recitation of the procedural history focuses the complexity of this litigation but the substantive aspect of this decision is riveted upon the unconstitutionality of two state statutes.

PROCEDURAL HISTORY

In one action, appellants Claire Hines and Linda Hines (Hines) filed a complaint on March 30, 1981, against appellees Koopman & Sons Gas Company, Inc. (Koopman Gas), Helen Koopman (Koopman), and Baltic Farmers Elevator Company (Baltic Elevator). Answers were filed. Discovery commenced. Crane Company (Crane) became a defendant and brought in United States Steel Corporation (U.S. Steel) and Republic Steel Corporation (Republic) as third-party defendants via a third-party complaint. On June 28, 1982, Crane moved for summary judgment. U.S. Steel then moved for summary judgment on July 8, 1982. On July 26, 1982, counsel for Hines filed an affidavit in opposition to summary judgment. Crane filed a cross-claim against the other appellees on September 21, 1982. Koopman Gas and Koopman motioned to amend their answers and cross-claim against Baltic Elevator, the Baltic Cooperative Building Supply Association (Baltic Builders), Crane, U.S. Steel, and Republic. On November 24, 1982, Republic filed a motion for summary judgment. Affidavits in favor of, and in resistance to, the summary judgments were filed.

On January 20, 1983, the trial court entered findings granting summary judgment in favor of Crane. On February 1, 1983, the trial court entered an order allowing Hines to amend their complaint. Findings granting summary judgment in favor of U.S. Steel were entered on February 10, 1983, and for Republic on February 23, 1983. An amended complaint making Tri-State Insurance Company of Minnesota (Tri-State) a defendant and alleging concealment against some defendants was filed on March 10, 1983. On March 23, 1983, Hines filed a notice of appeal (# 14136) to this Court from the summary judgment. On April 1, 1983, Koopman Gas and Koopman filed a notice of review (# 14146) with this Court. On April 5, 1983, Crane filed a notice of review (# 14154) with this Court.

In another action, appellant Daniel Chmela filed a complaint on April 13, 1982, against Baltic Elevator, Koopman Gas, Koopman, Leroy Koopman, Don Koopman, Minnehaha Cooperative Oil Company (Minnehaha Oil), Crane, U.S. Steel, and Republic. Answers were filed. Discovery commenced. Crane cross-claimed against all defendants. On May 21, 1982, Republic also cross-claimed against all defendants. Minnehaha Oil motioned for summary judgment on June 24, 1982, as did Crane on June 28, 1982, U.S. Steel on July 8, 1982, and all Koopman defendants on November 22, 1982. Affidavits were filed. All Koopman defendants motioned for an amended answer and cross-claimed against Baltic Elevator, Minnehaha Oil, Crane, U.S. Steel, and Republic. Republic motioned for summary judgment on November 24, 1982.

On January 20, 1983, the trial court entered findings granting summary judgment for Crane. On February 3, 1983, the trial court entered an order allowing Chmela to amend his complaint and also bring in Tri-State as a defendant. On February 4, 1983, findings were entered granting summary judgment for Minnehaha Oil. Chmela filed an amended complaint alleging concealment against some defendants on February 9, 1983. Findings allowing summary judgment for U.S. Steel were entered on February 10, 1983, and for Minnehaha Oil In the third primary action, appellant Darwin R. Daugaard filed a complaint on October 14, 1981, against Baltic Builders, Baltic Elevator, Koopman Gas, Leroy Koopman, Don Koopman, Helen Koopman, Minnehaha Oil, Crane, U.S. Steel, and Republic. Answers were filed and discovery commenced. Crane cross-claimed against all defendants. On June 22, 1982, Baltic Builders motioned for summary judgment; Minnehaha Oil similarly motioned on June 24, 1982; Crane on June 28, 1982; U.S. Steel on July 8, 1982; and all Koopmans on November 22, 1982. Affidavits were filed.

on February 17, 1983. All of the Koopman defendants motioned for summary judgment on February 22, 1983. Findings granting summary judgment in favor of Republic were entered on February 23, 1983. Chmela appealed to this Court from the summary judgments (# 14129) on March 17, 1983. On April 5, 1983, Crane filed a notice of review (# 14153) with this Court. All Koopman defendants answered the amended complaint on June 14, 1983, and the individual Koopmans cross-claimed against Baltic Elevator and Tri-State.

On November 17, 1982, Darwin Daugaard motioned to amend his complaint. On November 22, 1982, all Koopmans cross-claimed against Baltic Builders, Baltic Elevator, Minnehaha Oil, Crane, U.S. Steel, and Republic. Republic motioned for summary judgment on November 24, 1982. Minnehaha Oil motioned for summary judgment against Crane on November 24, 1982. The trial court entered an order on December 10, 1982, allowing an amended complaint and summary judgments for Baltic Builders, Minnehaha Oil, Crane, U.S. Steel, and Republic. An amended complaint was filed on December 10, 1982, alleging concealment against all Koopmans and Baltic Elevator. Tri-State was brought in as a defendant. Nunc pro tunc orders were entered on December 16, 1982.

On January 20, 1983, Darwin Daugaard filed a notice of appeal (# 14053) to this Court from the summary judgments entered below. On February 9, 1983, Baltic Builders answered Darwin Daugaard's amended complaint, motioned for summary judgment, and answered the Koopmans' cross-claim. Tri-State answered the Koopmans' cross-claim on February 16, 1983. All Koopmans motioned for summary judgment on February 22, 1983. A petition for allowance of appeal from an intermediate order was filed by Darwin Daugaard with this Court on January 26, 1983. On February 22, 1983, this Court denied the petition. On March 14, 1983, Crane filed a notice of appeal (# 14118) with this Court from the summary judgments entered dismissing its cross-claims.

The trial court entered an order on March 23, 1983, granting summary judgment in favor of Baltic Builders against the amended complaint and the individual Koopmans' cross-claims. This order also denied the Koopmans' motion for summary judgment on the amended complaint. On April 13, 1983, Darwin Daugaard filed a notice of appeal (# 14171) to this Court from the trial court's summary judgment. On April 21, 1983, the trial court entered an amended order on the motions for summary judgment which granted the Koopman defendants a partial summary judgment against the amended complaint. Summary judgment was not granted in favor of the Koopmans for Daugaards' negligence, breach of warranty, strict liability, and violation of statute causes of action. An amended notice of appeal (# 14053) was filed with this Court on April 26, 1983. A stipulation allowing the amended appeal, to relate back to the original appeal, was filed on April 25, 1983.

In the final primary...

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