Argus Leader taking The Dakota Scout, city of Sioux Falls to trial
Litigation follows city's decision to designate The Scout newspaper of record
This content is courtesy of SiouxFallsLive.com, a Sioux Falls news outlet that operates independently of The Dakota Scout.
A trial date has been set in Argus Leader Media’s challenge to the City of Sioux Falls’ decision to designate The Dakota Scout as the official newspaper for publishing legal notices.
The trial before Circuit Court Judge Douglas Hoffman is scheduled for 9 a.m. on Nov. 7.
Judge Hoffman declined a previous request by the Argus Leader, and its parent company Gannett, to temporarily block the city’s decision, which was effective July 1.
The Dakota Scout was launched by two former Argus Leader reporters – Jonathan Ellis and Joe Sneve – in September 2022. The news organization also offers online subscriptions but it’s the free print version that is the focus of the legal battle.
“The Dakota Scout looks forward to Judge Hoffman affirming that the newspaper followed the law. This is merely a last ditch effort by Gannett to extract yet more money from this community on its way out of town,” Sneve told Sioux Falls Live.
The trial date is the culmination of a two-year debate over a state law that requires local governments to publish the legal notices in a qualifying newspaper.
The Dakota Scout worked to change the definition of a legal newspaper over two legislative sessions to make free weekly publications eligible. Lawmakers approved the changes earlier this year after the South Dakota News Media Association, which represents the interests of the state’s newspapers, dropped its opposition.
Hoffman heard oral arguments from lawyers for Argus Leader Media, the city and The Dakota Scout on July 18.
The case focuses on whether The Dakota Scout filed the appropriate paperwork in time to receive the designation.
The previous version of state law required the filing by Dec. 31 of each year. But the changes weren’t made by the Legislature until after that deadline.
The Dakota Scout filed the paperwork – which includes divulging circulation statistics and company ownership – in June to coincide with the City Council’s consideration.
The council agreed unanimously to switch newspapers.
The Argus Leader argued that disqualifies the fledgling company and asked Hoffman to order the city to revert to the previous agreement.
Lawyers for the city and The Dakota Scout said it was impossible to meet requirements that didn’t exist on Dec. 31.
Hoffman, ruling from the bench on the temporary injunction, denied the Argus Leader request, which meant the next step is the Nov. 7 trial.
Average spending by the city has averaged about $70,000 a year on legal notices. The Dakota Scout’s costs are anticipated to be lower.
The Sioux Falls School District and the City of Baltic have also designated The Dakota Scout as their official newspaper.
Gannett public relations said in a statement to Sioux Falls Live that its the company’s policy not to comment on pending litigation. The response offered a previous comment, attributed to an Argus Leader spokesperson.
"For decades, readers have trusted The Argus Leader for news and important information including public notices. Citizens expect this information to be where it can be seen by a broad, informed audience. We strongly encourage the Sioux Falls City Council to continue relying on The Argus Leader as the premier source for these important advertisements," the statement read.
The Sioux Falls City Attorney’s Office declined to comment.
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Yet another reason to dislike the Gannett gang which owns and runs the Argus. For decades, Gannett and the Argus hauled money out of Sioux Falls by the truckload, while giving very little back. Look how small they act when they have competition. Go Get ‘Em, Dakota Scout🙏
Will the Argus exist when the lawsuit is settled? Gannett's papers are a dwindling thing. Local is better.