Opinion ID: 1803214
Heading Depth: 2
Heading Rank: 3

Heading: Prejudicial Evidentiary Rulings

Text: The trial court's rejection of Exhibits Nos. 25 and 26, offered by Cemetery, was an evidentiary ruling which impacted against Cemetery's case to such a degree that it caused an unfair result; both of these exhibits were pertinent letters containing facts that were in favor of Hills of Rest and against Witte, in this: Had these statements been presented to the jury, it would have reduced the authenticity of the accountants' claim that Witte's commissions were chargeable as reflected by statements of the accountants. Audits of accountants can be wrong, and such audits are only as reliable as the sources of information relied on by the accountants. These exhibits were the accountants' exploration of the scope and limitations of their methods. Prepared by Henry Scholten & Company accountants as part of the audit process carried out at Cemetery's request, they constitute business records admissible under SDCL 19-16-10. Exhibit No. 25 indicated that the information used in the audit was the representation of the management of Hills of Rest Memorial Park, Inc., i.e., Witte, who testified that this exhibit described what the accountants were hired, by him, to do. Exhibit No. 26 reflected that errors and irregularities could occur in the audits and yet the trial court withheld the letters from the jury. These audits are certainly not binding on any of the parties and when the accountants, themselves, reflect that there could be errors in the figures (the commissions being the heart of the lawsuit), a jury should know that the figures on the commissions are not absolutely a given on accuracy. Therefore, the trial court abused its discretion in rejecting this evidence. It was prejudicial error. Gross v. Gross, 355 N.W.2d 4 (S.D. 1984); Rykhus v. Rykhus, 319 N.W.2d 167 (S.D.1982); Herndon v. Herndon, 305 N.W.2d 917 (S.D.1981). We reject Cemetery's assertions of error regarding the additional expenses awarded in the equitable action. Witte is entitled to his reasonable expenses incurred in maintaining and improving his property. A contrary result would unjustly enrich Cemetery. Under our holding, Cemetery maintains title to the adjoining railroad property. We do not reach the prejudgment interest issue. Judgment affirmed in part and reversed in part. MORGAN and MILLER, JJ., concur. SABERS, J., concurs specially. WUEST, C.J., dissents.