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Justia Daily Opinion Summaries

South Carolina Supreme Court
March 11, 2021

Table of Contents

Palmetto Construction Group, LLC v. Restoration Specialists, LLC

Arbitration & Mediation, Civil Procedure, Contracts

Arredondo v. SNH SE Ashley River Tenant, LLC

Arbitration & Mediation, Civil Procedure, Medical Malpractice, Personal Injury

Nationwide Mutual Ins. Co. v. Walls

Civil Procedure, Insurance Law, Personal Injury

Baddourah v. Baddourah

Constitutional Law, Government & Administrative Law

COVID-19 Updates: Law & Legal Resources Related to Coronavirus

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Legal Analysis and Commentary

The Oprah Interview as a Truth Commission

LESLEY WEXLER

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Illinois Law professor Lesley Wexler explains how Oprah’s interview with Prince Harry and Meghan Markle might illuminate how a formal truth commission to deal with legacies of racism and colonialism might function in the British empire. Professor Wexler describes the purpose and function of state-operated truth commissions and notes the similarities and differences between those and the interview.

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South Carolina Supreme Court Opinions

Palmetto Construction Group, LLC v. Restoration Specialists, LLC

Docket: 28010

Opinion Date: March 10, 2021

Judge: Few

Areas of Law: Arbitration & Mediation, Civil Procedure, Contracts

At issue in this appeal was a civil action to collect a debt under a contract that contained an arbitration provision. The defendants appealed the master in equity's order refusing to set aside the entry of their default. The court of appeals dismissed the appeal on the basis that an order refusing to set aside an entry of default was not immediately appealable. The defendants filed a petition for a writ of certiorari claiming the order was immediately appealable because it had the effect of precluding their motion to compel arbitration, and in fact, the order states, "Defendants' motion to stay and compel arbitration is denied as [the defendants are] in default." Finding no reversible error, the South Carolina Supreme Court affirmed the court of appeals.

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Arredondo v. SNH SE Ashley River Tenant, LLC

Docket: 28011

Opinion Date: March 10, 2021

Judge: James

Areas of Law: Arbitration & Mediation, Civil Procedure, Medical Malpractice, Personal Injury

This appeal concerned the enforceability of an arbitration agreement executed between Ashley River Plantation, an assisted-living facility, and Thayer Arredondo, the attorney-in-fact under two powers of attorney executed by Hubert Whaley, a facility resident. When Whaley was admitted into the facility, Arredondo held two valid powers of attorney, a General Durable Power of Attorney (GDPOA) and a Health Care Power of Attorney (HCPOA). Arredondo met with a facility representative and signed various documents in connection with Whaley's admission. During that meeting, the facility representative did not mention or present an arbitration agreement to Arredondo. Later that day, after Whaley was admitted, Arredondo met with a different facility representative who, according to Arredondo, told her she "needed to sign additional documents related to [her] father's admission to the facility." Included among those documents was the arbitration agreement, which Arredondo signed. The arbitration agreement contained a mutual waiver of the right to a trial by judge or jury, and required arbitration of all claims involving potential damages exceeding $25,000. The agreement barred either party from appealing the arbitrators' decision, prohibited an award of punitive damages, limited discovery, and provided Respondents the unilateral right to amend the agreement. Two years into his stay at the facility, Whaley was admitted to the hospital, where he died six years later. Arredondo, as Personal Representative of Whaley's estate, brought this action alleging claims for wrongful death and survival against Respondents. The complaint alleged that during his residency at the facility, Whaley suffered serious physical injuries and died as a result of Respondents' negligence and recklessness. In an unpublished opinion, the court of appeals held the arbitration agreement was enforceable. The South Carolina Supreme Court held neither power of attorney gave Arredondo the authority to sign the arbitration agreement. Therefore, the court of appeals was reversed.

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Nationwide Mutual Ins. Co. v. Walls

Docket: 28012

Opinion Date: March 10, 2021

Judge: Kaye Gorenflo Hearn

Areas of Law: Civil Procedure, Insurance Law, Personal Injury

Nationwide Mutual Insurance Company ("Nationwide") relied on flight-from-law enforcement and felony step-down provisions in an automobile liability insurance policy to limit its coverage to the statutory mandatory minimum. Following a bench trial and after issuance of the South Carolina Supreme Court's opinion in Williams v. Government Employees Insurance Co. (GEICO), 409 S.C. 586 (2014), the circuit court held the step-down provisions were void pursuant to Section 38-77-142(C) of the South Carolina Code (2015). The court of appeals reversed. Three individuals, Sharmin Walls, Randi Harper, and Christopher Timms, were passengers in a vehicle driven by Korey Mayfield that crashed in 2008 following a high-speed chase by law enforcement. Mayfield refused to pull over, and during the chase, the trooper's vehicle reached speeds of 109 miles per hour. All the passengers begged Mayfield to stop the car, but Mayfield refused. Eventually, the trooper received instructions to terminate the pursuit, which he did. Nevertheless, Mayfield continued speeding and lost control of the vehicle. Timms died in the single-car accident, and Walls, Harper, and Mayfield sustained serious injuries. After being charged with reckless homicide, Mayfield entered an Alford plea. At the time of the accident, Walls' automobile was insured through her Nationwide policy, which included bodily injury and property damage liability coverage with limits of $100,000 per person and $300,000 per occurrence. Walls also maintained uninsured motorist (UM) coverage for the same limits, but she did not have underinsured motorist (UIM) coverage. In reliance on the aforementioned provisions, Nationwide paid only $50,000 in total to the injured passengers (the statutory minimum as provided by law) rather than the liability limits stated in the policy. Safe Auto, Mayfield's insurance company, also paid a total of $50,000 to the passengers. Nationwide brought this declaratory judgment action requesting the court declare that the passengers were not entitled to combined coverage of more than $50,000 for any claims arising from the accident. Walls answered, denying there was any evidence that the flight-from-law enforcement and felony provisions applied. The South Carolina Supreme Court reversed the court of appeals, holding that section 38-77-142(C) rendered Nationwide's attempt to limit the contracted-for liability insurance to the mandatory minimum void.

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Baddourah v. Baddourah

Docket: 28013

Opinion Date: March 10, 2021

Judge: Donald W. Beatty

Areas of Law: Constitutional Law, Government & Administrative Law

South Carolina Governor Henry McMaster issued an order suspending Mohsen Baddourah from his position as a member of the Columbia City Council after Baddourah was indicted for second-degree domestic violence. Baddourah initiated this declaratory judgment action seeking a determination that: (1) he was a member of the Legislative Branch and was, therefore, excepted from the Governor's suspension power under the South Carolina Constitution; and (2) second-degree domestic violence was not a crime involving moral turpitude, so it was not an act that was within the scope of the Governor's suspension power. The circuit court dismissed Baddourah's complaint on the ground the court lacked subject matter jurisdiction and, alternatively, for failure to state a cause of action. The South Carolina Supreme Court concluded Baddourah's indictment charged a crime involving moral turpitude, and the Governor had the constitutional authority to issue the Executive Order suspending Baddourah from his position as a member of the Columbia City Council. Although Baddourah disputed whether the suspension was warranted, "where the Governor was constitutionally authorized to impose a suspension, the decision whether to do so is a matter committed to the Governor's discretion after considering all of the attendant circumstances." Consequently, the circuit court's order dismissing Baddourah's challenge to the suspension order is affirmed as modified.

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