The South Dakota Supreme Court in Tschetter v. Berven, 2001 S.D. 11, 621 N.W.2d 372, determined that the LLC investments were not securities, and that there was no duty to perform a suitability assessment.

The case arose out of actions by the promoters of a Country Kitchen investment in Huron, South Dakota. The Trial Court had allowed that breach of fiduciary duty, fraud, and punitive damages can go forward at trial. The appeal focused on the issues that had been dismissed by the Trial Court.

The South Dakota Supreme Court in Tschetter v. Berven, 2001 SD 11, determined that the LLC investments were not securities, and that there was no duty to perform a suitability assessment. The fraud and breach of fiduciary duty issues were settled after the appeal and prior to trial.