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STEINEKE v. DELZER

No. 25957.

807 N.W.2d 629 (2011)

2011 S.D. 96

Ronald STEINEKE and Sheryl Steineke, Plaintiffs and Appellants, v. Ross O. DELZER and Barbara T. Delzer, Defendants and Appellees, and Bob Gerkin d/b/a Tri-State Realty, Inc., Defendant and Third Party Plaintiff and Appellee, v. Patrick L. Donahue; Jeb Hughes; Western Properties, Inc. d/b/a United Country/Western Properties, Inc., and/or United Country Real Estate, Third Party Defendants and Appellees.

Supreme Court of South Dakota.

Decided December 28, 2011.

Attorney(s) appearing for the Case

Brad A. Schreiber , The Schreiber Law Firm, Prof. LLC, Pierre, SD, and John R. Frederickson , Frederickson Law Office, Deadwood, South Dakota, Attorneys for plaintiffs and appellants.

Kenneth E. Barker , Barker Wilson Law Firm, Belle Fourche, South Dakota, Attorneys for defendants and appellees Delzers.

Gregory J. Erlandson , Sarah E. Baron Houy , Bangs, McCullen, Butler, Foye & Simmons, LLP, Rapid City, South Dakota, Attorneys for defendant and third party plaintiff and appellee Gerkin/Tri-State Realty.

James S. Nelson , Rebecca L. Mann , Gunderson, Palmer, Nelson & Ashmore, LLP, Rapid City, South Dakota, Attorneys for third party defendants and appellees Donahue, Hughes and Western Properties, Inc.

KONENKAMP, Justice.

[¶ 1.] In this contract dispute, we conclude that the Restatement (Second) of Torts § 552B sets the proper measure of damages in a negligent misrepresentation claim.

Background

[¶ 2.] Ross and Barbara Delzer owned a ranch in Butte County, South Dakota. In 2004, they hired Bob Gerkin, a real estate agent with Tri-State Realty, Inc., to list the ranch for sale. They gave Gerkin general information about the property...

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