Total Auctions & Real Estate, LLC v. S.D. Department of Revenue & RegulationAnnotate this Case
Total Auctions and Real Estate, LLC (Total Auctions) was a licensed automobile dealer that intended to hold automobile auctions in Lincoln County. Total Auctions met with a dealer agent employed by the Division of Motor Vehicles (DMV) on how to comply with the applicable law. Total Auctions informed the agent that its business plan included the sale of vehicles consigned from dealers outside Lincoln County, the county of Total Auctions’ place of business. The agent failed to inform Total Auctions that state law prohibited auctioning vehicles consigned from dealers outside Lincoln County. After incurring expenses setting up its business, Total Auctions was informed that there was a problem with the out-of-county consignments. Total Auctions sued the DMV agent, the DMV, its director, and the Department of Revenue and Regulation, alleging negligence and negligent supervision. The court of appeals dismissed the complaint for failure to state a claim. The Supreme Court affirmed, holding that because Total Auctions’ claimed damages were caused by the agent’s alleged misrepresentation of law, relief was barred as to all claims because misrepresentations of law are not actionable.