H & H of Johnston, LLC v. Old Republic National Title Insurance

748 S.E.2d 72, 405 S.C. 469, 2013 WL 2422867, 2013 S.C. App. LEXIS 159
CourtCourt of Appeals of South Carolina
DecidedJune 5, 2013
DocketAppellate Case No. 2012-211167; No. 5139
StatusPublished
Cited by2 cases

This text of 748 S.E.2d 72 (H & H of Johnston, LLC v. Old Republic National Title Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H & H of Johnston, LLC v. Old Republic National Title Insurance, 748 S.E.2d 72, 405 S.C. 469, 2013 WL 2422867, 2013 S.C. App. LEXIS 159 (S.C. Ct. App. 2013).

Opinions

LOCKEMY, J.

In this appeal arising out of a real estate transaction, H & H of Johnston, LLC (H & H) argues the circuit court erred in granting Henry Bufkin and Old Republic National Title Insurance Co.’s (Old Republic) summary judgment motions. H & H contends: (1) Bufkin’s agreement to provide H & H with title insurance coverage was not the practice of law requiring an expert witness affidavit under subsection 15-36-100(B) of the South Carolina Code (Supp.2012); and (2) Bufkin made an oral contract with H & H at closing for coverage as to three adverse claims. We affirm in part, reverse in part, and remand.

FACTS/PROCEDURAL BACKGROUND

This case arises out of a real estate transaction involving property purchased by H & H from Five Star Development, LLC (Five Star) within the Stoney Pointe subdivision in Chapin, South Carolina. The property consisted of twenty-six residential lots and an 11.44 acre tract.

Bufkin represented H & H and Five Star as the real estate closing attorney at the July 2007 loan closing. In conjunction with the closing, and as a title insurance agent for Old Republic, Bufkin also issued a title insurance commitment and policy to H & H. According to Stanley Herlong, a member of H & H, H & H had an oral contract with Bufkin as the title agent to: (1) insure H & H would be able to immediately sell the builder-ready lots through a listing agreement with Russell and Jeffcoat Realtors; (2) insure H & H would not be required to pay any Stoney Pointe Homeowners Association (HOA) assessments; and (3) insure H & H would be able to immediately sell the 11.44 acre tract without being subject to restrictions or assessments. Bufkin disputed this claim, main[472]*472taining he was never asked by H & H to act as a title agent and never promised or offered to provide a title commitment without any exceptions.

Following the closing, H & H entered into contracts to sell the property. P & K Construction (P & K) protested the sale of the property and sought to enforce a contract it had with Five Star concerning a right of first refusal. H & H filed a claim with Old Republic and paid P & K $25,000 to cancel the contract. In April 2008, the HOA filed suit against H & H claiming violations of certain restrictions and covenants and failure to pay assessments. H & H settled with the HOA and agreed to pay $16,300. Additionally, H & H agreed to the imposition of certain restrictive covenants on the 11.44 acre tract.

On July 1, 2010, H & H filed suit against Bufkin and Old Republic asserting breach of contract and promissory estoppel claims. In its complaint, H & H maintained Bufkin breached his duties as a title insurance agent by failing to explain to H & H what exceptions were included in the title insurance binder, specifically, the HOA restrictions and assessments and the right of first refusal contract with P & K. Old Republic filed an answer on August 5, 2010, denying the allegations in H & H’s complaint.

On September 8, 2010, Bufkin filed a motion to dismiss the complaint on the grounds that H & H failed to comply with subsection 15-36-100(B), which requires a plaintiff asserting a professional negligence claim against an attorney to file an affidavit of an expert witness specifying the particular negligent acts or omissions of the attorney. Following a hearing, the circuit court issued an order in March 2011, holding that “insofar as the [c]omplaint attempts to assert any claim against Bufkin in his capacity as an attorney, the same is dismissed for failure to state a claim pursuant to section 15-36-100.” Thereafter, Bufkin filed an answer and the parties engaged in discovery to determine if any of H & H’s remaining claims against Bufkin were asserted against him in any capacity other than his capacity as an attorney.

At the conclusion of discovery, Bufkin filed a motion for summary judgment and subsequently an amended motion for summary judgment. The grounds for Bufkin’s summary judg[473]*473ment motion included: (1) failure to comply with section 15-36-100; (2) no mutual understanding and intent between the parties sufficient to form a contract; (3) no promise made by Bufkin to H & H regarding the coverage exceptions; and (4) no proximate cause because even if the coverage exceptions at issue had not been listed as exceptions, the title policy would not have covered H & H’s claims. Old Republic also filed a motion for summary judgment asserting there was no evidence of an oral contract between the parties.

Following a hearing, the circuit court granted both summary judgment motions on February 8, 2012. The circuit court found the claims against Bufkin were made in his capacity as the real estate closing attorney, and H & H failed to file an expert witness affidavit as required by section 15-36-100. Additionally, the court found there was no evidence of an oral contract between H & H and Bufkin. Subsequently, H & H filed a motion to alter or amend which was denied by the circuit court. This appeal followed.

STANDARD OF REVIEW

When reviewing the grant of a summary judgment motion, this court applies the same standard that governs the trial court under Rule 56(c), SCRCP. Fleming v. Rose, 350 S.C. 488, 493, 567 S.E.2d 857, 860 (2002). “Summary judgment is appropriate when there is no genuine issue of material fact such that the moving party must prevail as a matter of law.” Id. In determining whether a genuine issue of fact exists, the evidence and all reasonable inferences drawn from it must be viewed in the light most favorable to the nonmoving party. Sauner v. Pub. Serv. Auth. of S.C., 354 S.C. 397, 404, 581 S.E.2d 161, 165 (2003). “Once the moving party carries its initial burden, the opposing party must come forward with specific facts that show there is a genuine issue of fact remaining for trial.” Sides v. Greenville Hosp. Sys., 362 S.C. 250, 255, 607 S.E.2d 362, 364 (Ct.App.2004).

LAW/ANALYSIS

I. Subsection 15-36-100(B)

H & H argues the circuit court erred in granting the summary judgment motions because Bufkin’s actions in making the oral contract did not involve claims of professional [474]*474negligence subject to the requirements of subsection 15-36-100(B). We disagree.

Pursuant to subsection 15-36-100(B), when a plaintiff asserts a professional negligence claim against an attorney, the plaintiff must file an affidavit of an expert witness in support of the complaint specifying particular negligent acts or omissions of the attorney.

H & H maintains it is seeking damages due to a breach of contract by Bufkin and not on the basis of a failure to disclose by Bufkin as an attorney. H & H argues Bufkin made the oral contract on behalf of Old Republic, the insurer, and therefore, Bufkin’s actions do not involve claims of professional negligence subject to the requirements of subsection 15-36-100(B). Bufkin and Old Republic assert H & H attempts to characterize its suit against Bufkin as something other than a professional malpractice action in order to circumvent the requirements of subsection 15-36-100(B).

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Bluebook (online)
748 S.E.2d 72, 405 S.C. 469, 2013 WL 2422867, 2013 S.C. App. LEXIS 159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-h-of-johnston-llc-v-old-republic-national-title-insurance-scctapp-2013.