Abrasives-South, Inc. v. Korte

226 F. Supp. 3d 584, 2016 U.S. Dist. LEXIS 187750, 2016 WL 8136034
CourtDistrict Court, D. South Carolina
DecidedOctober 4, 2016
DocketNo: 2:16-cv-768-RMG
StatusPublished

This text of 226 F. Supp. 3d 584 (Abrasives-South, Inc. v. Korte) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abrasives-South, Inc. v. Korte, 226 F. Supp. 3d 584, 2016 U.S. Dist. LEXIS 187750, 2016 WL 8136034 (D.S.C. 2016).

Opinion

ORDER

Richard M. Gergel, United States District Court Judge

This matter is before the Court on Defendant’s motion for summary judgment. (Dkt. No. 19). For the reasons below, the Court GRANTS the motion for summary judgment.

Background

Plaintiff ASI is a North Charleston, South Carolina-based manufacturer, pro-cesser, and distributor of abrasive products (e.g., sandpaper). Defendant Marty Korte worked for Plaintiff as its national sales manager. In March 2012, Defendant Korte left Plaintiffs employ. At that time, Plaintiffs president, Jim Carter, confronted Defendant Korte regarding suspicions that he “had been providing information to other competitors and vendors.” (Dkt. No. 15-1 at 1-2). Defendant Korte denied any wrongdoing.

In October 2012, Carter wrote a letter to Defendant AWUKO’s president regarding his suspicions that AWUKO had improperly paid Korte. (Dkt. No. 15-1 at 2). Defendant AWUKO’s president subsequently denied any wrongdoing. The business relationship between Plaintiff and Defendant AWUKO deteriorated, and on October 29, 2012, Defendant AWUKO filed for declaratory negative relief in Gottingen District Court in Germany.

On November 14, 2012, AWUKO’s president received a letter from Plaintiffs then-counsel, which stated

[I]t is not disputed that, unknown to my client, your company paid my client’s sales representative substantial sums of money to promote your product to the exclusion of other brands that my client carries. This resulted in an inferior [586]*586product being marketed by my client, which resulted in lost business.

(Dkt. No. 16-2 at 2).

On January 25, 2013, Plaintiffs German counsel sent a letter to AWUKO’s German counsel stating that he had had the opportunity to “intensively discuss this matter with my co-counsel ... as well as our client.” (Dkt. No. 16-13 at 2). The letter goes on to state that counsel “was quite surprised to learn that AWUKO explicitly admitted in writing [to] having made substantial payments to Marty Korte.” (Dkt. No. 16-3 at 3).

On February 4, 2013, counsel for Plaintiff and Defendant AWUKO met in Germany to resolve the German lawsuit. At this meeting, Defendant AWUKO’s counsel allegedly admitted that AWUKO “had had an ongoing business relationship with Mr. Korte, including paying him and receiving information.” (Dkt. No. 15-2 at 2).

On February 1, 2016, Plaintiff filed this action in the Charleston County Court of Common Pleas, and the case was removed to this Court on March 10, 2016. (Dkt. No. 1). Defendants AWUKO and Wandmacher filed a motion to dismiss (Dkt. No. 11), which the Court granted due to the running of the relevant three-year statutes of limitations. (Dkt. No. 17). Defendant Korte subsequently filed this motion to dismiss based on the statutes of limitations. (Dkt. No. 19). While this motion was pending, Plaintiff filed a Rule 59(e) motion to reconsider the Court’s order dismissing Defendants AWUKO and Wandmacher, (Dkt. No. 24). The Court denied Plaintiffs motion for reconsideration. (Dkt. No. 30).

Legal Standard

Summary judgment is appropriate if a party “shows that there is no genuine dispute as to any material fact” and that the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). In other words, summary judgment should be granted “only when it is clear that there is no dispute concerning either the facts of the controversy or the inferences to be drawn from those facts.” Pulliam Inv. Co. v. Cameo Props., 810 F.2d 1282, 1286 (4th Cir. 1987). “In determining whether a genuine issue has been raised, the court must construe all inferences and ambiguities in favor of the nonmoving party.” Health-South Rehab. Hosp. v. Am. Nat’l Red Cross, 101 F.3d 1005, 1008 (4th Cir. 1996). The party seeking summary judgment shoulders the initial burden of demonstrating to the court that there is no genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

Once the moving party has made this threshold demonstration, the non-moving party, to survive the motion for summary judgment, may not rest on the allegations averred in his pleadings. Id. at 324, 106 S.Ct. 2548. Rather, the non-moving party must demonstrate that specific, material facts exist that give rise to a genuine issue. Id. Under this standard, “[c]onclusory or speculative allegations do not suffice, nor does a ‘mere scintilla of evidence’ ” in support of the non-moving party’s case. Thompson v. Potomac Elec. Power Co., 312 F.3d 646, 649 (4th Cir. 2002) (quoting Phillips v. CSX Transp., Inc., 190 F.3d 285, 287 (4th Cir. 1999)).

Discussion

The applicable statutes of limitations for Plaintiffs claims against Defendant Korte are all three years. S.C, Code Ann. §§ 39-8-70 (violations of trade secrets claim); 15-3-530 (claims of fraud and breach of fiduciary duty); 39-5-150 (SCUTPA violations claims).

As the Court previously explained, under “the discovery rule, the statute of limitations begins to run from the date the injured party either knows or should know, by the exercise of reasonable diligence, that a cause of action exists for [587]*587the wrongful conduct.” True v. Monteith, 327 S.C. 116, 489 S.E.2d 615, 616 (1997) (emphasis added). The “exercise of reasonable diligence” requires that the injured party “act with some promptness where the facts and circumstances of an injury place a reasonable person of common knowledge and experience on notice that a claim against another party might exist.” Dean v. Ruscon Corp., 321 S.C. 360, 468 S.E.2d 645, 647 (1996). The date on which the discovery of a cause of action should have been made is an objective question, Bayle v. S. Carolina Dept of Transp., 344 S.C. 115, 542 S.E.2d 736, 740 (S.C. Ct. App. 2001), and to the extent that there is no conflicting evidence regarding whether a claimant should have known that a cause of action existed, resolution of the question is appropriate at summary judgment. See Moriarty v. Garden Sanctuary Church of God, 341 S.C. 320, 534 S.E.2d 672, 681 (2000).

In a July 12, 2012 email to Korte, Jim Carter wrote:

You still have files and ASI information that is the property of Abrasives-South, Inc. This is documented by numerous e-mails I have copies of. You accessed our server files (Abrasives-South, Inc. Property) via your VPN and e-mail account and sent many confidential files (property of Abrasives-South, Inc.) to your personal e-mail.
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Related

Moriarty v. Garden Sanctuary Church of God
534 S.E.2d 672 (Supreme Court of South Carolina, 2000)
Dean v. Ruscon Corp.
468 S.E.2d 645 (Supreme Court of South Carolina, 1996)
Bayle v. South Carolina Department of Transportation
542 S.E.2d 736 (Court of Appeals of South Carolina, 2001)
True v. Monteith
489 S.E.2d 615 (Supreme Court of South Carolina, 1997)
Phillips v. CSX Transportation, Inc.
190 F.3d 285 (Fourth Circuit, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
226 F. Supp. 3d 584, 2016 U.S. Dist. LEXIS 187750, 2016 WL 8136034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abrasives-south-inc-v-korte-scd-2016.