Thunderstik Lodge, Inc. v. Reuer

613 N.W.2d 44 (2000)

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Thunderstik Lodge, Inc. v. Reuer

South Dakota Supreme Court
613 N.W.2d 44 (2000)

  • Written by Mary Pfotenhauer, JD

Facts

Thunderstik Lodge, Inc. (Thunderstik) (plaintiff) leased agricultural land from the Reuers (defendants). The lease terms stated that the lease was for a 10-year term and could be extended for two additional 10-year terms, with the first extension for an increased annual rent of $33,000 and the second extension for $36,000 in rent. The terms also provided that if any portion of the lease was held invalid or unenforceable, the remainder was to remain valid and enforceable. South Dakota statutes prohibited agricultural leases of longer than 20 years. The Reuers sought a declaratory judgment holding the lease to be an invalid 30-year agricultural lease. The circuit court held that the second of the 10-year extensions was invalid but severed it from the agreement, leaving the remainder enforceable. The Reuers appealed, arguing that severance was improper and that the entire agreement was invalid.

Rule of Law

Issue

Holding and Reasoning (Konemkamp, J.)

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