Opinion ID: 901513
Heading Depth: 1
Heading Rank: 3

Heading: Partial Summary Judgment on Hoaas' Claims

Text: [¶ 11.] As we have repeatedly stated, summary judgment is appropriate when the pleadings, depositions, answers to interrogatories, admissions on file, and affidavits of the parties reveal no genuine issues of material fact. SDCL 15-6-56(c); Wulf v. Senst, 2003 SD 105, ¶ 17, 669 N.W.2d 135, 141. When considering a motion for summary judgment, the court must view the evidence in a light most favorable to the nonmoving party. Wulf, 2003 SD 105, ¶ 17, 669 N.W.2d at 141. The moving party bears the burden of proving that no such issues exist. Id. The nonmoving party, however, cannot merely rely on general allegations or denials. Id. ¶ 18. Rather, the nonmoving party must set forth specific facts which show the existence of genuine issues of material fact. Id. When reviewing summary judgment, we determine only whether a genuine issue of material fact exists and whether the law was applied correctly. Id. ¶ 19. [¶ 12.] An examination of the record in this case reveals that Griffiths filed no affidavits or other evidence to refute Hoaas' summary judgment motion. Hoaas, on the other hand, presented affidavits, documents, and Griffiths' deposition testimony in support of his motion. The only activity by Griffiths reflected in the record was his attorney's motion to withdraw because of a conflict of interest. The trial court allowed the attorney to withdraw and held all matters in abeyance until Griffiths retained new counsel or further informed the court. The new hearing on the summary judgment was scheduled for October 6, 2004. Griffiths did not inform the court nor did he appear for the October 6 hearing. Since Griffiths failed to respond to the summary judgment motion, the record presented no genuine issues of material fact. Consequently, the trial court orally granted summary judgment in Hoaas' favor. [¶ 13.] On October 14, 2004, Griffiths' current attorney noticed his appearance and requested additional time to acquaint himself with the case. The judge gave him additional time and also allowed time to respond to Hoaas' proposed findings of fact and conclusions of law. Griffiths' attorney filed objections to the findings; for the most part, however, those objections were general objections and did not point to specific evidence in the record sufficient to raise a genuine dispute of material fact. What the judge had before him was Griffiths' deposition testimony wherein he admitted selling the corporation and disposing of its proceeds as if he owned 100% of the shares, even though he knew that Hoaas owned 49% of the corporation. In his deposition, Griffiths also admitted claiming ownership of all the shares, income, and proceeds of the sale on IRS documents, and he acknowledged that he had been untruthful in that regard. Griffiths also did not deny holding a special meeting of the casino's board of directors on November 27, 2001, the minutes of which indicated that Griffiths was the only member of the board and that he served as both the president and secretary. In those minutes, Griffiths recorded that no stock had been issued to Hoaas, that Hoaas' debt to the corporation exceeded any interest he may have been due because of the missing cash, and that the corporation should proceed with the sale. Griffiths also admitted in his deposition that the statement that Hoaas owned no stock was untrue. [¶ 14.] On appeal, Griffiths claims that he intended to pay Hoaas when Hoaas accounted for the missing cash. He argues that this alone should have precluded summary judgment. His argument fails, however, because he did not present this argument or point to anything in the record to support his claim at the time the motion for summary judgment was considered by the trial court. Upon a motion for summary judgment, the trial court must consider the evidence in the light most favorable to the nonmoving party. The nonmoving party, however, has the responsibility to come forward with specific evidence which places a material fact in dispute. Griffiths failed to do so. He made no response to the summary judgment motion nor did he appear at the hearing. The judge had no disputing affidavit from Griffiths or anyone else. Griffiths did not offer evidence that money had been missing from the casino or that Hoaas had taken it. All the judge had in Griffiths' favor was Griffiths' general allegation that Hoaas owed him money from the casino. The specific evidence regarding his allegation only emerged when this case went to trial. [¶ 15.] Under these circumstances, we cannot say that the trial court incorrectly granted the summary judgment motion. Neither the mere assertion that Hoaas had taken casino money nor Griffiths' belated claim of a contingent intent to pay Hoaas does not counter Griffiths' admissions that he disposed of corporate assets without Hoaas' knowledge and that he intentionally withheld both the proceeds of that sale and profits of the corporation to which he knew Hoaas was entitled. All of the evidence before the trial court at the summary judgment motion indicated that Griffiths paid 100% of the proceeds from the sale of the corporation to himself and also kept 100% of the profits from the time period at issue. Griffiths placed those amounts in his personal account. He did not distribute the corporate assets to the other shareholder, Hoaas, and he did not place them in a corporate account. The evidence supports the trial court's finding that Griffiths failed to establish a genuine issue of material fact for any of Hoaas' claims, and therefore the trial court's grant of summary judgment was proper.