Jun. 9—MITCHELL — A court hearing on Friday sided with Horsemen's Sports Inc. on key motions in its legal battle with former tenant Corn Palace Stampede, allowing HSI a month-long window to hold a mid-July replacement rodeo in Mitchell.

First Circuit Court Judge David Knoff made a ruling that will allow HSI to have a semi-flexible, one-month window in which to prepare and tear down for the rodeo, with two weeks on either side of its planned mid-July rodeo date. From the end of that period, or two weeks after HSI's rodeo, CPS will have 30 days to remove its property from HSI's land. On the front end, CPS will also have until July 1 to remove property from the land as well.

"I'm trying to keep the parties from fighting," Knoff said during the hearing, held over video conferencing, adding later, "It's disappointing the parties have gotten to the point where they can't work something out. But sometimes that happens."

HSI Attorney Tim Whalen made it clear that his clients intend to hold a rodeo in mid-July that will replace the vacancy left by CPS' cancellation in May. Whalen accused CPS of wanting a larger window to take their property to try to block HSI from holding their own event.

"HSI incurred a tremendous amount of loss in this lawsuit. Our only means of making money is using its arena," Whalen said. "They want to disturb our most profitable months of the year. I think that's intentional."

Over the last month, the two parties disagreed on how much time CPS should get to remove its property from the rodeo grounds where the event has been held since its inception in 1971. CPS wanted up to 150 days to remove its equipment, while HSI sought 30 days.

"It's clear that HSI is trying to supplant CPS rodeo with additional events," CPS attorney Sam Nelson said. "If the court gives us a reasonable timeline, we need to make sure that our property is not used or damaged. ... A move of this magnitude can't be accomplished over a weekend. It took 30 plus years to build up. You can't demolish it in a day."

Knoff said Friday that if the bleachers remain on site during HSI's rodeo window, HSI can use them for their event, even though the April trial jury granted their ownership to CPS.

"HSI is prohibited from damaging the property," the judge said. "If that happens, there can be a separate court action brought forward. The court is not going to prohibit (HSI) from using the bleachers if they're still sitting on the property."

The case is under appeal with the South Dakota Supreme Court — a process that could take a year or more before there is a ruling. That decision could rule differently on the ownership of the various items from the April trial.

Nelson said CPS is committed to moving the bleachers and the large equipment they were awarded at trial, even at the risk of potentially having to move them back later if the appeal is successful.

"We plan on moving as of today," Nelson said. "We're going to take that risk."

Prior to the judge's decision, CPS said Friday that it likely couldn't move the bleachers until early July because it is waiting for an opening in the schedule of Robinson's House Moving, of Mitchell.

Knoff noted that the issue is made more complicated by the summer timing of the issue.

"It's the rodeo season in South Dakota," the judge said. "HSI has the right to use their property. They don't have the right to do what they want with the property owned by CPS. Court has to try to find the best means for the parties to separate their assets and go their separate ways."

Friday's hearing also shed light on the proposed settlement that the two parties failed to reach terms on that would have extended CPS' lease at the Horsemen's grounds. CPS attorney Sam Nelson said HSI offered a one-year extension for $30,000, a two-year extension for $50,000 or three-year extension for $70,000.

According to the attorneys on both sides of the case Friday, there was no further discussion. Nelson said CPS "didn't dignify (the offer) with a response because it's ridiculous." CPS Board President Jim Miskimins in a May press release about the cancellation of the rodeo indicated CPS was only interested in a one-year extension. Under the previous lease, CPS paid HSI $2,000 annually to use the rodeo grounds for its events.

Knoff did not grant an injunction against HSI regarding certain names for its planned July rodeo. He said he didn't believe the court should be issuing "anticipatory injunctions." CPS argued in court filings that HSI was making contact with CPS' past sponsors and contractors and sought to bar HSI from using any names related with the Corn Palace Stampede or being the Mitchell rodeo.

Whalen made it clear that HSI intends to sponsor a rodeo this year, potentially one that could be Professional Rodeo Cowboys Association-sanctioned like the CPS has been.

"What my people care about is having a rodeo in the month of July. We are going to have a rodeo," Whalen said. "We have no intention to use Corn Palace Stampede's name. We don't want to be associated with that name, quite honestly."

"One of the issues we're concerned with, is going for the PRCA sanctioning body and holding the rodeo at the exact same time," Nelson said. "And then when we're ready to go next year, it's a lot harder to go next year."

Knoff said that is likely an issue that would have to be sorted out with the PRCA.

CPS sought for more personal property to be awarded to its organization on Friday in court, seeking declaratory judgment from the court. That involved items that weren't fought over in court during the April trial. Knoff denied the request, saying that the items would likely have to be decided upon another day, even hinting that they could be subject to a second trial.

In the April case, a jury ruled that CPS can take major elements of the rodeo grounds with them to a new facility, plus award $100,000 to CPS in damages after ruling HSI breached the contract with CPS. The lawsuit was spurred in 2020 when HSI members moved fencing and tore out CPS-built VIP platforms as part of the arena expansion. CPS then accused HSI of breaching the lease agreement and argued the improvements it paid for were personal property and could be moved to a new location near the Mitchell Regional Airport.

HSI paid its $100,000 in damages in part to stop post-judgment interest from accruing in the case, Whalen said on Friday. It could recoup that money from CPS, if it wins on appeal.

Meanwhile, on Monday, the Mitchell Planning Commission will hear a conditional use permit request from Corn Palace Stampede for its planned new rodeo grounds on a city-owned parcel of land near the airport. The land is currently zoned as a Public Lands and Institutions district. The city and CPS reached a lease agreement for the property in late 2021.

While the rodeo has been canceled, CPS has already vowed to hold some events at the new site in 2023, including the chili cookoff and kids day events.