Justia South Carolina Supreme Court Opinion Summaries

Appellant Jeffrey Allen, on behalf of his daughter, appealed the Administrative Law Court's (ALC) order affirming the Appeals Committee of the South Carolina Budget and Control Board Employee Insurance Program's (EIP Appeals Committee) decision to deny Appellant's insurance claim for his daughter's diabetes educational training session. Blue Cross's Appeals Review Committee upheld the denial of benefits on the basis that diabetes educational training was excluded under the State Health Plan, and that section 38-71-46 of the South Carolina Code, did not apply to the State Health Plan. Upon review, the Supreme Court reversed the ALC's decision that section 38-71­46 of the South Carolina Code did not apply to this matter. The EIP was mandated to promptly determine and pay the benefits that were due for Appellant's daughter under the State Health Plan. View "Allen v. SC Public Employee Benefit Authority" on Justia Law

Respondent David DeCarlis was the sole member of respondent Buncombe Professional Park, L.L.C., which owned an undeveloped parcel of land. In 2007, DeCarlis, as Buncombe's representative, executed a note and mortgage with Independence National Bank. At the same time, DeCarlis executed a personal guaranty. As part of this transaction, Bank satisfied the existing first mortgage at closing. Buncombe stopped paying on the mortgage. As Bank prepared to foreclose, it learned in 2010 that DeCarlis held what had been, prior to Bank's satisfaction of the original first mortgage, a second mortgage on the property executed and properly recorded in 2006. The same attorney represented both Bank and Buncombe at the 2007 mortgage closing, and had actual notice of DeCarlis' 2006 mortgage at the time of the 2007 closing since he had conducted the title search. The attorney testified at the hearing in this matter that he erroneously neglected to have DeCarlis execute a satisfaction, release, or subordination of his 2006 mortgage at the 2007 closing in order to effectuate the parties' agreement that Bank was to have a first mortgage. Since no such document was executed, DeCarlis' 2006 second mortgage became the first lien, with priority over Bank's 2007 mortgage. The Bank then foreclosed on Buncombe and DeCarlis. In a post-trial order following the parties' Rule 59 motions, the master found Bank was equitably subrogated to the original first mortgage which Bank had satisfied as part of the 2007 closing, thus giving Bank's 2007 mortgage priority over the 2006 DeCarlis mortgage on a second ground. Buncombe and DeCarlis appealed, and the Court of Appeals reversed. Upon review, the Supreme Court concluded the appellate court erred in finding that the Bank had notice of the 2006 second mortgage by virtue of its agent's actual knowledge of that lien. Accordingly, the Supreme Court reversed the Court of Appeals and reinstated the master's judgment. View "Independence National Bank v. Buncombe Professional Park" on Justia Law

Appellant Ortho-McNeil-Janssen Pharmaceuticals (Janssen) manufactured the antipsychotic drug Risperdal. The Attorney General of South Carolina believed that Janssen had violated the South Carolina Unfair Trade Practices Act (SCUTPA) by engaging in unfair methods of competition by willfully failing to disclose known risks and side effects associated with Risperdal. In 2007, the State and Janssen entered into a tolling agreement concerning the statute of limitations. The State filed its Complaint on April 23, 2007: the first claim arose from the content of the written material furnished by Janssen since 1994 with each Risperdal prescription (the "labeling claim"); the second claim centered on alleged false information contained in a November 2003 Janssen-generated letter sent to the South Carolina community of prescribing physicians (the "Dear Doctor Letter"). Because both claims arose more than three years prior to January 24, 2007, Janssen pled the statute of limitations as a bar to the Complaint. The matter proceeded to trial. A jury rendered a liability verdict against Janssen on both claims. The trial court rejected Janssen's defenses, including the statute of limitations, finding that both claims were timely. Janssen appealed. After review, the Supreme Court affirmed the liability judgment on the labeling claim but modify the judgment to limit the imposition of civil penalties to a period of three years from the date of the tolling agreement, which was coextensive with the three-year statute of limitations, subject to an additional three months by virtue of the time period between the January 24, 2007, tolling agreement and the filing of the Complaint on April 23, 2007. The Court affirmed the liability judgment on the doctor letter claim, but remitted the amount of penalties associated with that claim. View "South Carolina v. Ortho-McNeil-Janssen Pharmaceuticals" on Justia Law

Mark Baker was convicted of four counts of committing a lewd act upon a minor. In October 2004, Victim Two, Baker's youngest niece, informed her mother that "Uncle Mark was messing with" her older sister, Victim One. At that time, Victim Two denied that Baker had molested her. The Court of Appeals affirmed. Following the denial of his petition for rehearing, Baker petitioned the Supreme Court for review. The Court granted certiorari to analyze whether: (1) the trial judge erred in refusing to quash the indictments, which alleged the offenses occurred over a six-year time frame; and (2) qualifying a witness as an expert in forensic interviewing. After review, the Court reversed Baker's convictions because the Court found the indictments were unconstitutionally overbroad. View "South Carolina v. Baker" on Justia Law

Appellant George Chavis was convicted of multiple crimes involving unlawful sexual conduct with a minor, Appellant's step-daughter. The issues this case presented for the Supreme Court's review concerned the qualification and testimony of two child abuse assessment experts. Finding no reversible error as to the trial court's actions with regard to the experts, the Supreme Court affirmed. View "South Carolina v. Chavis" on Justia Law

The federal district court certified a question of South Carolina law to the South Carolina Supreme Court. Behrooz Taghivand was the manager of a Rite Aid store in a high crime area of North Charleston. While on duty, Taghivand observed a patron acting strangely and milling around the store with no apparent purpose. The patron stopped briefly in the section directly in front of the cashier, selected a few items, and made a purchase. After the patron checked out, the cashier told Taghivand that when the patron entered the store, he was carrying a bag that appeared to be empty but now had items in it. Taghivand instructed the cashier to call the police. An officer arrived at the scene and gathered together the items the patron claimed he purchased from the store, and Taghivand confirmed these as belonging to the patron. The officer also searched the patron's bag, and found it contained only dirty clothes. Taghivand was terminated effective that day, and was informed the incident was the reason for his termination. As a result, Taghivand filed this action against Rite Aid Corporation, Eckerd Corporation d/b/a Rite Aid, and Steve Smith in federal court for wrongful termination; the defendants moved to dismiss. After finding that South Carolina law was not clear on the issue raised by the motion to dismiss, the federal district court certified this question: under the public policy exception to the at-will employment doctrine in South Carolina, does an at-will employee have a cause of action in tort for wrongful termination where: (1) the employee, a store manager, reasonably suspects that criminal activity, specifically, shoplifting, has occurred on the employer's premises; (2) the employee, acting in good faith, reports the suspected criminal activity to law enforcement; and (3) the employee is terminated in retaliation for reporting the suspected criminal activity to law enforcement? After review, the South Carolina Supreme Court answered the certified question: no. View "Taghivand v. Rite Aid" on Justia Law

BADD, L.L.C. purchased three warehouse units in Myrtle Beach. To finance the transaction, BADD executed two promissory notes. A personal guaranty was also executed by William McKown, who was a member of BADD. After BADD defaulted, the Bank brought this foreclosure action and included McKown as a party based on his status as a guarantor. In McKown's amended answer and counterclaim, he demanded a jury trial because the Bank sought a money judgment for the breach of a guaranty arrangement. McKown further sought an accounting and a determination that the guaranty agreement was unconscionable. McKown then asserted two counterclaims: (1) civil conspiracy and (2) breach of contract, both based on an alleged conspiracy between the Bank and William Rempher. Finally, McKown asserted third-party claims against Rempher. The Bank moved for an order of reference. The circuit granted the motion, referring the matter in its entirety to the master-in-equity. The Court of Appeals reversed, holding McKown was entitled to a jury trial because the Bank's claim on the guaranty agreement was a separate and distinct legal claim. The Bank appealed, challenging the Court of Appeals' finding that McKown was entitled to a jury trial. The Supreme Court reversed, finding that McKown was not entitled to a jury trial solely because the Bank exercised its statutory right to join him as a party in the event of a deficiency judgment. Furthermore, the Court held McKown was not entitled to a jury trial based on his counterclaims, which, while legal, were permissive. McKown waived his right to a jury trial by asserting permissive counterclaims in an equitable action. View "Carolina First Bank v. BADD, L.L.C." on Justia Law

Appellant Jaquwn Brewer was convicted of multiple charges in connection with the shooting of two individuals at a nightclub. The issue on appeal to the Supreme Court concerned the admission of Brewer's unredacted audiotaped interrogation by the police. The Court found the admission of Brewer's interrogation was error. Nevertheless, the Court affirmed Brewer's convictions for assault and battery with intent to kill and possession of a weapon during the commission of a violent crime, finding the admission error was harmless with respect to these charges. The murder conviction was reversed and the matter remanded for a new trial. View "South Carolina v. Brewer" on Justia Law

Appellant Kenneth Morris, II appealed the trial court's denial of his motion to suppress ecstasy and marijuana discovered during a traffic stop, arguing they were obtained as the fruits of an illegal search and seizure in violation of the Fourth Amendment. The Supreme Court disagreed, finding the officers had both reasonable suspicion of criminal activity and probable cause to conduct a warrantless search of the entire vehicle. View "South Carolina v. Morris" on Justia Law

In late 2008, Cynthia McNaughton, who was in her early to mid 50's at the time, was accepted into the South Carolina Department of Education's Program of Alternative Certification for Educators (PACE program), which enabled individuals who earned a college degree but did not complete a traditional teacher preparation program, to become certified South Carolina public school teachers. When she was hired, Appellant Charleston Charter School of Math & Science, Inc. knew that McNaughton was participating in the PACE program, and that her completion of the program was contingent upon her fulfillment of further requirements, including the completion of an induction teaching year. McNaughton signed an employment agreement, which stated that McNaughton "agree[d] to be a full-time teacher at Charleston Charter School for Math and Science for the school year 2010–2011." The employment agreement further stated that it was "contingent on funding and enrollment." McNaughton received positive feedback from her students and their parents. Neither the principal nor any other faculty member experienced any problems with McNaughton's performance as a teacher, and McNaughton was never disciplined for any matter. However, on December 1, 2010 (in the middle of the school year) the principal informed McNaughton that the school was terminating her employment. The principal told McNaughton that Appellant needed to use the funds designated for McNaughton's salary to hire and pay a new math teacher because some of the students had performed poorly on a recent math achievement test. McNaughton sued and won on her wrongful termination/breach of contract complaint. The School appealed the trial court's decisions denying its motions for a directed verdict and judgment notwithstanding the verdict (JNOV); permitting the jury to award special damages; and granting attorney's fees to McNaughton. Finding no reversible error, the Supreme Court affirmed. View "McNaughton v. Charleston Charter School" on Justia Law