Diana Keleher v. Technicolor Government Services, Inc., a Corporation

HEANEY, Circuit Judge.

This case raises the question whether proceeds from the sale of a home are exempt from claims of creditors under the South Dakota homestead exemption, S.D. Codified Laws § 43-45-3(2), when those proceeds are commingled with non-exempt monies in a savings account. We reverse the district court and hold that such proceeds do not lose their exempt status simply because they are commingled with nonexempt monies.

On April 11, 1986, the appellant, Diana Keleher, sold her home in Sioux Falls, South Dakota. She received $3,931.31 for the equity in the house. She deposited this…