Justia South Carolina Supreme Court Opinion Summaries

Hystron Fibers, Inc. hired Daniel Construction Company in 1965 to build a polyester fiber plant in Spartanburg, South Carolina. When the plant began operating in 1967, Hystron retained Daniel to provide all maintenance and repair workers at the plant. Hystron soon became Hoechst Fibers, Inc. Pursuant to a series of written contracts, Hoechst paid Daniel an annual fee and reimbursed Daniel for certain costs. The contracts required Daniel to purchase workers' compensation insurance for the workers and required Hoechst to reimburse Daniel for the workers' compensation insurance premiums. Dennis Seay was employed by Daniel. Seay worked various maintenance and repair positions at the Hoechst plant from 1971 until 1980. The manufacture of polyester fibers required the piping of very hot liquid polyester through asbestos-insulated pipes. He eventually developed lung problems, which were later diagnosed as mesothelioma, a cancer caused by inhaling asbestos fibers. Seay and his wife filed this lawsuit against CNA Holdings (Hoechst's corporate successor) claiming Hoechst acted negligently in using asbestos and in failing to warn of its dangers. After Seay died from mesothelioma, his daughter, Angie Keene, took over the lawsuit as personal representative of his estate. Throughout the litigation, CNA Holdings argued Seay was a statutory employee and the Workers' Compensation Law provided the exclusive remedy for his claims. The circuit court disagreed and denied CNA Holdings' motion for summary judgment. A jury awarded Seay's estate $14 million in actual damages and $2 million in punitive damages. The trial court denied CNA Holdings' motion for judgment notwithstanding the verdict, again finding Seay was not a statutory employee. The South Carolina Supreme Court found the circuit court and the court of appeals correctly determined the injured worker in this case was not the statutory employee of the defendant. View "Keene v, CNA Holdings, LLC" on Justia Law

On November 5, 2010, James Nix poured kerosene from a gasoline can onto a burn pile in his yard. The kerosene ignited, and the flame entered the gas can through its unguarded pour spout. The gas can exploded and sprayed kerosene and fire onto Nix's five-year-old son Jacob, who was standing only a few yards away. Jacob suffered severe burn injuries to over 50% of his skin and was permanently scarred. Blitz U.S.A., Inc. manufactured the gas can. Blitz distributed the gas can involved in Jacob's injury through Fred's, a retail store chain headquartered in Tennessee. Fred's sold the gas can to a consumer at its store in the town of Varnville, in Hampton County, South Carolina. The explosion and fire that burned Jacob occurred at Nix's home in Hampton County, South Carolina. In 2013, Jacob's aunt Alice Hazel, his legal guardian, and Jacob's mother Melinda Cook, filed separate but almost identical lawsuits in state court in Hampton County seeking damages for Jacob's injuries. Both plaintiffs asserted claims against Blitz on strict liability, breach of warranty, and negligence theories. Both plaintiffs asserted claims against Fred's for strict liability and breach of warranty based on the sale of the allegedly defective gas can. Both plaintiffs also asserted a claim against Fred's on a negligence theory based only on Fred's negligence, not based on the negligence of Blitz. This is the claim important to this appeal, referred to as "Hazel's claim." Petitioner Fred's Stores of Tennessee, Inc. contended the circuit court erred by refusing to enjoin these lawsuits under the terms of a bankruptcy court order and injunction entered in the bankruptcy proceedings of Blitz U.S.A., Inc. The South Carolina Supreme Court found the circuit court correctly determined the bankruptcy court's order and injunction did not protect Fred's from these lawsuits. The matter was remanded back to the circuit court for discovery and trial. View "Hazel v. Blitz U.S.A., Inc." on Justia Law

The United States Court of Appeals for the Fourth Circuit certified a question of law to the South Carolina Supreme Court. John Harley Wickersham Jr. was seriously injured in an automobile accident. After months of severe pain from the injuries he received in the accident, he committed suicide. His widow filed lawsuits for wrongful death, survival, and loss of consortium against Ford Motor Company in state circuit court. She alleged that defects in the airbag system in Mr. Wickersham's Ford Escape enhanced his injuries, increasing the severity of his pain, which in turn proximately caused his suicide. She included causes of action for negligence, strict liability, and breach of warranty. Ford removed the cases to the United States District Court for the District of South Carolina. Ford then filed a motion for summary judgment in the wrongful death suit, arguing Mrs. Wickersham has no wrongful death claim under South Carolina law because Mr. Wickersham's suicide was an intervening act that could not be proximately caused by a defective airbag. The district court denied Ford's motion. 194 F. Supp. 3d at 448. The court ruled Mrs. Wickersham could prevail on the wrongful death claim if she proved the enhanced injuries Mr. Wickersham sustained in the accident as a result of the defective airbag caused severe pain that led to an "uncontrollable impulse" to commit suicide. Ford renewed the motion during and after trial, but the district court denied both motions. A jury ultimately returned a verdict in favor of Mrs. Wickersham on all claims. Ford appealed, and the Fourth Circuit asked: (1) whether South Carolina recognized an "uncontrollable impulse" exception to the general rule that suicide breaks the causal chain for wrongful death claims; and (2) did comparative negligence in causing enhanced injuries apply in a crashworthiness case when the plaintiff alleges claims of strict liability and breach of warranty and is seeking damages related only to the plaintiff's enhanced injuries? The Supreme Court responded that (1) South Carolina did not recognize a general rule that suicide was an intervening act which breaks the chain of causation and categorically precludes recovery in wrongful death actions. "Rather, our courts have applied traditional principles of proximate cause to individual factual situations when considering whether a personal representative has a valid claim for wrongful death from suicide." With respect to the federal court's second question, the Supreme Court held a plaintiff's actions that do not cause an accident but are nevertheless a contributing cause to the enhancement of his injuries, are not necessarily a legally remote cause. "Mr. Wickersham's non-tortious actions that were not misuse are not relevant to Ford's liability for enhancement of his injuries in terms of the defense of comparative negligence or fault." View "Wickersham v. Ford Motor Company" on Justia Law

The Fourth Circuit Court of Appeals certified two questions of law to the South Carolina Supreme Court. John Wickersham, Jr. was seriously injured in an automobile accident. After months of severe pain from the injuries he received in the accident, he committed suicide. His widow filed lawsuits for wrongful death, survival, and loss of consortium against Ford Motor Company in state circuit court. She alleged that defects in the airbag system in Mr. Wickersham's Ford Escape enhanced his injuries, increasing the severity of his pain, which in turn proximately caused his suicide. She included causes of action for negligence, strict liability, and breach of warranty. Ford removed the cases to the federal district court, then moved for summary judgment in the wrongful death suit, arguing Mrs. Wickersham had no wrongful death claim under South Carolina law because Mr. Wickersham's suicide was an intervening act that could not be proximately caused by a defective airbag. The district court denied Ford's motion, ruling Mrs. Wickersham could prevail on the wrongful death claim if she proved the enhanced injuries Mr. Wickersham sustained in the accident as a result of the defective airbag caused severe pain that led to an "uncontrollable impulse" to commit suicide. Ford renewed the motion during and after trial, but the district court denied both motions. In returning a verdict for Mrs. Wickersham, the jury found the airbag was defective and proximately caused Mr. Wickersham's enhanced injuries and suicide. However, the jury also found Mr. Wickersham's actions in being out of position enhanced his injuries, and found his share of the fault was thirty percent. The district court entered judgment for Mrs. Wickersham, but denied Ford's request to reduce the damages based on Mr. Wickersham's fault. Ford filed motions to alter or amend the judgment, for judgment as a matter of law, and for a new trial, all of which the district court denied. Responding to the two questions certified by the federal appellate court, the South Carolina Supreme Court held traditional principles of proximate cause governed whether a personal representative has a valid claim for wrongful death from suicide, and whether a person's own actions that enhance his injuries, as opposed to those that cause the accident itself, should be compared to the tortious conduct of a defendant in determining liability. View "Wickersham v. Ford Motor Co" on Justia Law

The South Carolina Supreme Court accepted a certified question of South Carolina law from the federal district court, which stemmed from the construction of a home near Mount Pleasant, South Carolina. Mark Lawrence constructed his home using structural insulated panels manufactured by General Panel Corporation. Structural insulated panels (SIPs) are a structural alternative to traditional wood-frame construction. Lawrence claims faulty installation of the General Panel SIPs used in constructing his home allowed water intrusion, which in turn caused the panels to rot, damaging the structural integrity of his home. He brought a claim in federal district court alleging General Panel was liable for providing defective installation instructions to the subcontractor installing the SIPs. General Panel filed a motion for summary judgment, based on a South Carolina statute of repose: 15-3-640. The statute provided "No actions to recover damages based upon or arising out of the defective or unsafe condition of an improvement to real property may be brought more than eight years after substantial completion of the improvement." General Panel's relief depended on the date of "substantial completion." The subcontractor completed the installation of the SIPs in Lawrence's home by March 2007. The home was not finished, however, until over a year later. Charleston County issued a certificate of occupancy on December 10, 2008. Lawrence filed his lawsuit against General Panel on December 8, 2016, more than eight years after installation of the SIPs, but less than eight years after the certificate of occupancy was issued. The federal district court asked whether South Carolina Act 27 of 2005 amended section 15-3- 640 (Supp. 2018) so that the date of "substantial completion of the improvement" is measured from the date of the certificate of occupancy (unless the parties establish a different date by written agreement), thereby superseding the South Carolina Supreme Court's decision in Ocean Winds Corp. of Johns Island v. Lane, 556 S.E.2d 377 (2001). The Supreme Court responded in the negative: the 2005 amendments did not supersede Ocean Winds. View "Lawrence v. General Panel Corp." on Justia Law

In 1999, homeowners Renaul and Karen Abel contracted with Gilliam Construction Company, Inc. for the construction of a house in an upscale Landrum subdivision. In constructing the house, Gilliam used windows manufactured by Eagle & Taylor Company d/b/a Eagle Window & Door, Inc. (Eagle & Taylor). Sometime after the home was completed, the Abels discovered damage from water intrusion around the windows. The Abels brought suit against Gilliam for the alleged defects and settled with Gilliam and its insurer, Nationwide Mutual, for $210,000. Nationwide and Gilliam (collectively Respondents) then initiated this contribution action seeking repayment of the settlement proceeds from several defendants, including Eagle, alleging it was liable for the obligations of Eagle & Taylor. The narrow question presented by this case on appeal to the South Carolina Supreme Court was whether Eagle Window & Door, Inc. was subject to successor liability for the defective windows manufactured by a company who later sold its assets to Eagle in a bankruptcy sale. The Court determined answering that question required a revisit the Court's holding in Simmons v. Mark Lift Industries, Inc., 622 S.E.2d 213 (2005) and for clarification of the doctrine of successor liability in South Carolina. The court of appeals affirmed the trial court's holding that Eagle is the "mere continuation" of the entity. The Supreme Court reversed because both the trial court and court of appeals incorrectly applied the test for successor liability. View "Nationwide Mutual Insurance v. Eagle Window & Door" on Justia Law

The Fourth Circuit Court of Appeals certified a question of South Carolina law to the South Carolina Supreme Court. Sarah Hartsock was killed in an automobile crash on Interstate 26 in Calhoun County, South Carolina. Her personal representative, Theodore Hartsock, Jr., brought a survival and wrongful death action asserting claims under South Carolina law for negligence, strict liability, and breach of warranty. Hartsock alleged that the vehicle in which Mrs. Hartsock was riding was struck head-on by another vehicle. That vehicle had crossed the median after suffering a blowout of an allegedly defective tire that Goodyear Dunlop Tires North America Ltd. and Goodyear Tire & Rubber Company [collectively "Goodyear"] designed, manufactured, and marketed. The federal court had subject-matter jurisdiction based upon complete diversity of citizenship between the parties and damages alleged to be greater than $75,000. During pretrial discovery a dispute arose between the parties over certain Goodyear material relating to the design and chemical composition of the allegedly defective tire. Goodyear objected to producing this material, asserting that it constituted trade secrets. The district court eventually found, and Hartsock did not dispute, that the material did, in fact, constitute trade secrets. However, the court ordered Goodyear to produce the material subject to a confidentiality order. In doing so, the court applied federal discovery standards, rejecting Goodyear's contention that South Carolina trade secret law applied. The federal appellate court asked the South Carolina Supreme Court whether South Carolina recognized an evidentiary privilege for trade secrets. The South Carolina Court responded yes, but that it was a qualified privilege. View "Hartsock v. Goodyear" on Justia Law

Comparative negligence does not apply in crashworthiness cases, and that South Carolina's public policy does not bar a plaintiff, allegedly intoxicated at the time of the accident, from bringing a crashworthiness claim against the vehicle manufacturer. This case concerned the applicability of comparative negligence to strict liability and breach of warranty claims in a crashworthiness case brought by Plaintiff Reid Donze against Defendant General Motors ("GM"). The United States District Court for the District of South Carolina certified two questions to the South Carolina Supreme Court Court addressing the defenses available to a manufacturer in crashworthiness cases brought under strict liability and breach of warranty theories. View "Donze v. General Motors" on Justia Law

Defendant Carus Corp. (Carus) was an international company that developed and sold chemical products for municipal and industrial applications. Defendant's products included a chemical called Totalox, which essentially, was designed as a deodorizer for sewer systems. The Town of Lexington (Town) used Totalox in its sewer treatment plants. In 2010, Plaintiff John Machin, a Town employee, was exposed to Totalox when a storage container valve broke during the delivery of Totalox to one of the Town's wastewater stations. Plaintiff suffered reactive airways syndrome, which was also known as chemically induced asthma or obstructive lung disease. As a result of his injuries, Plaintiff filed a workers' compensation claim and was awarded workers' compensation benefits. The South Carolina Supreme Court accepted four certified questions from the United States District Court for the District of South Carolina: (1) Under South Carolina law, when a Plaintiff seeks recovery from a person, other than his employer, for an injury sustained on the job, may the jury hear an explanation of why the employer is not part of the instant action?; (2) when a Plaintiff seeks recovery from a person, other than his employer, for an injury sustained on the job, may a defendant argue the empty chair defense and suggest that Plaintiff's employer is the wrongdoer?; (3) In connection with Question 2, if a defendant retains the right to argue the empty chair defense against Plaintiff's employer, may a court instruct the jury that an employer's legal responsibility has been determined by another forum, specifically, the South Carolina Workers' Compensation Commission?; and (4) when a Plaintiff seeks recovery from a person, other than his employer, for an injury sustained on the job, may the Court allow the jury to apportion fault against the nonparty employer by placing the name of the employer on the verdict form? The South Carolina Supreme Court answered these questions in the abstract, without any suggestion as to the resolution of the post-trial motion before the federal court: Questions 1, 2, and 3 "yes," provided a defense seeks to assign fault to the plaintiff's employer. The Court answered Question 4, "no." View "Machin v. Carus Corporation" on Justia Law

The underlying dispute in this case involved the repair of faulty windows and sliding glass doors in a condominium development, Shipyard Village Horizontal Property Regime (Shipyard Village), in Pawleys Island. Fifty co-owners of units in Buildings C & D of the development (Petitioners) appealed the court of appeals' decision to reverse the trial court's finding that the business judgment rule did not apply to the conduct of the Board of Directors of the Shipyard Village Council of Co-Owners, Inc., and the trial court's decision granting Petitioners partial summary judgment on the issue of breach of the Board's duty to investigate. Finding no reversible erro, the Supreme Court affirmed the court of appeals' decision. View "Fisher v. Shipyard Village" on Justia Law