Court Opinion

ID: 9593294
Source: CourtListenerOpinion
Date Created: 2023-08-22 00:21:23.045359+00
Date Added: 2024-06-11T18:01:19.947352
License: Public Domain

WUEST, Justice
(concurring in part and dissenting in part).
The majority opinion wrongly disposes of the damages issue. The award of damages should be reversed in toto with directions only to redetermine damages. The authority cited by the majority does not support its decision requiring the trial court to redetermine damages based on the current state of the record. In M & M Contracting, cited by the majority, we held we were unable to make a determination of what damages should be from the record and remanded to the trial court with directions to make the determination. We did not direct that the redetermination be made from the record. Id., 334 N.W.2d at 225-26. In most instances, we have simply remanded to the trial court to redetermine damages. See, e.g., Rusch v. Kauker, 479 N.W.2d 496, 501 (S.D.1991); White Man v. Gunnick, 473 N.W.2d 148, 151 (S.D.1991); Nielsen v. McCabe, 442 N.W.2d 477, 482 (S.D.1989); Minor v. Sully Buttes School Dist., 345 N.W.2d 48 (S.D.1984); M & M Contracting, 334 N.W.2d at 225-26. For all the reasons given hereafter, that is the course I would follow here.
As explained in the majority opinion, the trial court found Centrol lost revenues and profits. Yet, he based compensatory damages on gross revenues failing to account for expenses. That was error. In order to ascertain lost profits, he should have deducted expenses. Groseth Int’l., Inc. v. Tenneco Inc., 440 N.W.2d 276, 278 (S.D.1989). See also Regan v. Moyle Petro. Co., 344 N.W.2d 695, 697 (S.D.1984); Big Band, Inc. v. Williams, 87 S.D. 24, 202 N.W.2d 121 (1972). Since punitive damages bear a relationship to compensatory damages, the award for punitive damages must also be reversed. SDCL 37-29-3(b). See also Flockhart v. Wyant, 467 N.W.2d 473, 479 (S.D.1991); Groseth Int’l., 440 N.W.2d at 278.
I would also reverse the award of $156,-054.88 in attorney fees. SDCL 37 — 29—4(iii) permits a prevailing party to recover “reasonable attorney’s fees” when “willful and malicious misappropriation exists.” (Emphasis added). Absent a stipulation, rea*899sonableness of attorney’s fees should be established on testimony produced at trial or hearing as distinguished from using affidavits.1 At first blush, the fees appear exorbitant and unreasonable. A hearing would provide the proper vehicle to determine whether or not they are reasonable.2
In its discussion of the jury trial issue, the majority cites SDCL 15-12-24 claiming it has some bearing on the issue. In my opinion it is not relevant. SDCL 15-6-38(d) cited in the majority opinion is the controlling statute.
I concur with the remainder of the majority opinion.

. We allow attorney fees in divorce cases on appeal supported by affidavit. See Malcolm v. Malcolm, 365 N.W.2d 863, 865-66 (S.D.1985). But, this is not a divorce proceeding. As an appellate court, we prefer to review the records of the trial court and do not take evidence except by reference. Estate of Schuldt, 428 N.W.2d 251, 255 (S.D.1988); Estate of Hansen, 366 N.W.2d 852, 855-56 (S.D.1985).

. Contrary to the majority’s assertion, the defendants propounded twelve specific objections to the plaintiffs Application for Attorney Fees. The issue was therefore preserved for appeal.