By
N. Bob Pesall
Attorney
At Law
Flandreau,
SD
Spring
is coming. Every year, at about this time, the snow begins to melt
and slowly reveals all the stuff the good lord saw fit to keep
covered up for the last six months. With spring foliage still weeks
away, this is our a once-a-year opportunity to get a good look at the
leftover junk lying around our shelter-belts, bushes, and backyards.
Truth be told, this is the ugliest time of year, and is probably the
reason we invented “spring cleaning.” One astute reader has
forwarded a question particularly appropriate for this time of year.
What do we do when the junk we find lying around is not ours?
Abandoned
property usually shows up in one of three situations. First, you
have abandoned money, like forgotten bank accounts, insurance
proceeds, or the contents of old safe-deposit boxes. Second, you
have property left behind by renters. This usually includes items
like old couches, broken bookshelves, and unopened cans of clam
chowder. Finally, there is the ubiquitous abandoned car. This
usually involves an abandoned car. For reasons I cannot fathom, we
in South Dakota have enacted completely different sets of rules for
handling abandoned property in each of these situations.
For
abandoned money, the rules are complex, and probably beyond the scope
of this column. In simple terms, if money is left behind with a
bank, insurer, credit company, or other financial institution, it has
to sit for around five years before it can be considered “abandoned.”
Once it is abandoned, the financial institution holding that money
does a bunch of paperwork and eventually turns it over to the State
Treasurer. Abandoned property handled in this way is governed by
S.D.C.L. Chapter 43-41B. Interestingly, this chapter purports to
apply to all forms of abandoned property, not just intangible stuff
like money. A quick call to the State Treasurer's office, however,
will confirm that they're not terribly interested in receiving other
forms of abandoned property, like old cars, used furniture, or canned
goods.
With
this in mind, let us next consider the abandoned car. Abandoned cars
enjoy their own set of rules, in a completely different part of South
Dakota law. For the private landowner who wants to remove someone
else's car from the premises, SDCL Chapter 32-36 provides a
surprisingly simple solution. He can have it towed. If a car is
left on private land without permission, the owner (or tenant) of
that land can call a towing company to come take the car away. The
towing company must then give notice to the owner of the car that it
has been towed, and if the owner does not take steps to claim it, the
towing company will eventually get title to the car. This simple
approach applies only to motor vehicles, however.
Finally,
we have the “old furniture and canned soup” dilemma. Often, when
a tenant moves out of his home or apartment, he will leave a few
items behind. Most of the time, the items left behind have little
value, like used couches, canned food, or broken electronics. Once
the tenant is gone, the landlord is left to figure out what to do
with this stuff. These situations are governed yet another set of
rules, set out in SDCL Chapter 43-32. For property with a value of
less than one hundred dollars, the property is simply presumed
abandoned and the landlord may “dispose of it” after ten days.
For property is worth more than one hundred dollars, the landlord
must store the property for at least 30 days. (He can place a lien
against it for the cost of doing so.) After that thirty days has
lapsed, he may likewise treat the property as abandoned and “dispose
of it.”
Unfortunately,
when it comes time for “disposal,” the law is not entirely clear
whether the landlord is free to (A) simply discard the property, (B)
keep it for himself, or (C) turn it over to the State. When asked
which option to take, most attorneys will groan and fake an emergency
meeting. Most landlords will pick option A and get on with their
spring cleaning.
The
foregoing column is written for informational purposes only, and does
not constitute legal advice. For those desiring more information see
SDCL Chapters 43-41B, 32-36, and 43-32. N. Bob Pesall can be
reached at P.O. Box 23, Flandreau, SD 57028, by telephone at (605)
573-0274, or on the web at http://www.pesall.com