Justia South Carolina Supreme Court Opinion Summaries

Articles Posted in Business Law
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Petitioner Glenda Barron began working for Respondent Labor Finders of South Carolina in Respondent's Charleston office around 1990.  During petitioner's employment, Respondent planned to open a second office location in the Charleston area and informed Petitioner she would be promoted to regional sales manager for both Charleston locations.  In 2004, petitioner signed an agreement acknowledging her status as an at-will employee and setting her compensation as "straight commission" of 3% of customer payments deposited and posted by both Charleston offices each week, to be paid within ninety days of the invoice date. The second Charleston office opened in September 2004 and began earning income that November.  In January of the following year, Petitioner became concerned that respondent had not paid her the full amount of commissions she had earned. The supervisor contacted respondent's owner, who acknowledged that, due to an oversight, he forgot to pay Petitioner the commissions from the new Charleston location.  Petitioner never filed a written complaint with the Department of Labor, Licensing, and Regulation, as outlined by the Payment of Wages Act (Act). Respondent terminated Petitioner's employment the next day, stating it was forced to downsize in light of recent budget cuts.  Eight or nine days later, Respondent issued Petitioner a check in excess of the amount she was owed for commissions. Petitioner sued, alleging violations of the Act, breach of contract, breach of contract accompanied by a fraudulent act, and wrongful termination in violation of public policy.  The circuit court granted summary judgment in favor of Respondent as to all causes of action. Petitioner appealed the entry of summary judgment as to her wrongful termination claim.  The Court of Appeals affirmed. Petitioner argued on appeal that the Court of Appeals erred in holding she could not maintain a wrongful termination claim under the public policy exception to the at-will employment doctrine.  While the Supreme Court agreed the Court of Appeals erred in its analysis, the Court nonetheless affirmed the decision: "[a]lthough we agree. . . that there is no statutory remedy within the Act that would preclude an employee from maintaining a wrongful termination action, we nevertheless decline to address whether the public policy exception applies when an employee is terminated in retaliation for filing a wage complaint with the Department of Labor.  We find the Court of Appeals properly affirmed the circuit court's grant of summary judgment because there is simply no evidence the Act was ever implicated."  Petitioner never filed a complaint with the Department of Labor as required by the Act, nor did she ever indicate to respondent she had filed or intended to file a complaint.  "Thus, viewing the evidence in the light most favorable to petitioner, there is no genuine issue of material fact whether petitioner was terminated in retaliation for availing herself of the protections of the Act." View "Barron v. Labor Finders" on Justia Law

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Albert Epstein sued Coastal Timber Co., Inc. (Coastal) for damages, alleging that Coastal cut and removed standing timber that was subject to mortgages he held on property he owned. The circuit court found Mr. Epstein failed to properly secure an interest in the timber under South Carolina's Uniform Commercial Code (UCC). Epstein appealed that decision, arguing that the circuit court erred in granting summary judgment to Coastal after finding his mortgages did not constitute a lien on the standing timber cut by Coastal. Upon review, the Supreme Court agreed with Mr. Epstein that the UCC did not convert all standing timber to goods and thereby divest him of his interest in the timber. The Court concluded that "the proper analysis is not one of cancellation but of priority. [...] any security interest later recorded on timber to be cut under a contract of sale would be junior to any existing interests. To hold otherwise would allow a mortgagor to unilaterally void an existing lien imposed by a mortgage on the real property, which includes the timber, simply by thereafter executing a contract to sell the timber." The Court reversed the circuit court and remanded the case for further proceedings. View "Epstein v. Coastal Timber Co., Inc." on Justia Law