Oskin v. Johnson

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Robert W. Oskin, Glenn Small, and Freddie Kanos (collectively "Appellants") contested the Master-in-Equity's ruling that the assignment of a note and mortgage on a Myrtle Beach property did not violate the South Carolina Fraudulent Conveyance Statute, and that a payment made to South Carolina Bank & Trust (SCB&T) did not result in a pay-off of the amount due under the note and mortgage. Oskin entered into a contract to broker the sale of Wild Wing Plantation and Golf Course on behalf of Respondent Stephen Johnson (Johnson). The contract obligated Johnson to pay Oskin a finder's fee upon closing. Oskin found a buyer for the property, and the deal was closed. Johnson, however, failed to pay the finder's fee, and Oskin brought suit successfully obtaining a judgment against Johnson. While the breach of contract action was pending, Johnson approached his uncle, Respondent Michael Brown, about jointly purchasing an oceanfront lot and home located in Myrtle Beach. Johnson and Brown co-signed a promissory note to jointly purchase the property. Title to the property was conveyed to Brown and Johnson as tenants in common. In addition to the SCB&T mortgage, the property was later encumbered by a second mortgage lien in favor of Ameris Bank. Initially, Johnson made the monthly interest-only payments on the SCB&T note until early 2008 when he could no longer afford to; Brown paid the remaining monthly payments. Faced with his nephew unable to make payments on the loan, and because the Myrtle Beach property was appraised at a value considerably less than what was owed, Brown's wife Joan Brown formed an LLC to obtain another loan to pay down debt owed to SCB&T. The parties disputed the motive for the formation of the LLC and the subsequent assignment of the note. Oskin's complaint centered enforcement of his judgment for the finder's fee and its subrogation to that of the various banks once notes on the property were reassigned. Finding no error with the Master-in-Equity's ruling, the Supreme Court affirmed. View "Oskin v. Johnson" on Justia Law