Opinion ID: 901222
Heading Depth: 1
Heading Rank: 12

Heading: City's ClaimSanctions

Text: [¶ 28.] The City filed a motion for sanctions against Prunty pursuant to SDCL 15-6-56(g) which provides: Should it appear to the satisfaction of the court at any time that any of the affidavits presented pursuant to 15-6-56 are presented in bad faith or solely for the purpose of delay, the court shall forthwith order the party employing them to pay to the other party the amount of the reasonable expenses which the filing of the affidavits caused him to incur, including reasonable attorneys fees, and any offending party or attorney may be adjudged guilty of contempt. Id. (emphasis added). The trial court denied the motion. This Court has not previously addressed this provision. However, SDCL 15-6-11(a) (Rule 11) is similar to SDCL 15-6-56(g). Both statutes allow for imposition of sanctions for actions performed in bad faith or to cause delay. Rule 11 provides in part: Every pleading, motion and other paper of a party ... [signed by an attorney] constitutes a certificate by him that he has read the pleading, motion and exhibits or attachments thereto, or other paper; that to the best of his knowledge, information and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass, embarrass another party or person, or to cause unnecessary delay or needless increase in the cost of litigation. SDCL 15-6-11(a) (emphasis added). If a violation of this rule occurs, the following provision provides for the imposition of sanctions: If a pleading, motion, exhibits or attachments thereto, or other paper is signed or filed in violation of this rule, the court, upon motion or upon its own initiative, shall impose upon the person who signed or filed it, a represented party, or both, an appropriate sanction, which may include an order to pay to the other party or parties the amount of the reasonable expenses incurred because of the filing of the pleading, motion or other paper, including a reasonable attorneys fee. SDCL 15-6-11(b). Rule 11 appeals are reviewed under an abuse of discretion standard. Anderson v. Prod. Credit Assn., 482 N.W.2d 642, 645 (S.D.1992). Abuse of discretion is discretion not justified by, and clearly against, reason and evidence. Gronau v. Wuebker, 2003 SD 116, ¶ 5, 670 N.W.2d 380, 382 (citation omitted). Similarly, we review sanctions under SDCL 15-6-56(g) under the abuse of discretion standard. [¶ 29.] The trial court did not enter findings to support its denial of sanctions. The record, however, supports the trial court's denial of sanctions. The Complaint and Amended Complaint are both stated in broad terms allowing for different approaches to the claims. The City argues, however, that Prunty's affidavits assert contrary positions. Specifically, Prunty initially claimed that the adjustments were due to subsurface site conditions. Prunty's second affidavit, issued after the trial court granted the City summary judgment, states that the adjustments did not come within the provisions of paragraph 17 of the General Conditions related to subsurface site conditions ... there were no site conditions existing within the intent or meaning of paragraph 17. Under the contract, not all site conditions come within the mandate of paragraph 17. Only such conditions that differed materially from those indicated in the contract or those ordinarily encountered and generally recognized in work of this character have to follow the work stoppage-prior approval procedure. Prunty claims that what it encountered at the sites was unknown prior to the work but nevertheless were conditions that were anticipated. The trial court did not abuse its discretion by denying the City's request for sanctions. [¶ 30.] We reverse and remand in part, and affirm in part. [¶ 31.] GILBERTSON, Chief Justice, and SABERS, KONENKAMP, and ZINTER, Justices, concur.