Eli v. Eli

In Eli v. Eli, 1997 SD 1, 557 N.W.2d 405 (S.D. 1997), the South Dakota Supreme Court addressed the issue of the impact of monetary considerations in deciding whether to partition property in kind or by sale. In that case over 100 acres of land were jointly owned by three members of the Eli family. The land had been owned by the Eli family for almost 100 years, and was used solely as farm land. Two of the co-owners sought to have the land partitioned and sold. A trial judge found that the land would be worth less if partitioned in kind, therefore the court ordered the land be sold at public auction. The co-owner who sought a partition in kind appealed the trial court's decision. The South Dakota Supreme Court found that the trial court erroneously relied upon the fact that the property would be worth less if partitioned in kind. In reversing the trial court's decision, the Eli court reasoned as follows: Monetary considerations, while admittedly significant, do not rise to the level of excluding all other appropriate considerations. . . . The sale of property "without the owner's consent is an extreme exercise of power warranted only in clear cases." We believe this to be especially so when the land in question has descended from generation to generation. While it is true that the Eli brothers' expert testified that if partitioned, the separate parcels would sell for $ 50 to $ 100 less per acre, this fact alone is not dispositive. One's land possesses more than mere economic utility; it "means the full range of the benefit the parties may be expected to derive from their ownership of their respective shares." Such value must be weighed for its effect upon all parties involved, not just those advocating a sale. (557 N.W.2d at 409-410.)