Lancaster v. Smithco, Inc.

128 S.E.2d 915, 241 S.C. 451, 1962 S.C. LEXIS 65
CourtSupreme Court of South Carolina
DecidedDecember 31, 1962
Docket18010
StatusPublished
Cited by9 cases

This text of 128 S.E.2d 915 (Lancaster v. Smithco, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lancaster v. Smithco, Inc., 128 S.E.2d 915, 241 S.C. 451, 1962 S.C. LEXIS 65 (S.C. 1962).

Opinion

Moss, Justice.

Walker M. Lancaster and Thelma S. Lancaster, the appellants herein, on June 21, 1956, purchased from Smithco, Inc., the respondent herein, a certain lot of land in Spartan- *453 burg County. The deed is in the usual form conveying a fee simple title with a general warranty.

The present action is one by the appellants against the respondent for a breach of the covenant of general warranty contained in the aforesaid deed. The appellants allege that the respondent breached the aforesaid warranty in that it failed to deliver clear title to the entire lot conveyed to them for the reason that Transcontinental Gas Pipe Line Corporation had acquired an easement ninety feet wide across the rear of the lot for the installation of pipe lines and had installed thereon two such lines. It is further alleged that the appellants bought the lot described in the deed in reliance upon the general warranty therein contained, and that since the lot in question was burdened with the foregoing easement they have suffered damage.

The answer of the respondent admits that it conveyed the lot in question to the appellants by a deed containing a general warranty clause and that the pipe line corporation acquired an easement across the property now owned by the appellants prior to the time the respondent purchased' the said property. As a second defense, respondent alleged that it conveyed the premises in question to the appellants, incorporating as a part of the description of said premises so conveyed, a plat thereof, which said plat was of record, and showed a pipe line easement, and that the warranty therefore was subject to the easement shown on the recorded plat. As a third defense, the respondent set up what is denominated a plea in bar. In this defense the respondent alleged that the appellants had previously commenced another action against it, asserting that they had been defrauded and deceived by the failure of the respondent to deliver a fee simple title to the premises in question because of the existence of the easement heretofore referred to in the pleadings. It is then alleged that on motion of the respondent in the former action, the appellants were required to elect whether they would proceed in tort or in contract and they elected to proceed against the respondent for fraud and deceit. It is then alleged *454 that the appellants pursued their remedy in tort to a conclusion, which was adverse to them, and they are now barred from bringing this suit for a breach of warranty.

The previous action, pled as a bar to the present action, was the case of Lancaster v. Smithco, Inc., 238 S. C. 15, 119 S. E. (2d) 145. Such previous action, pursuant to the election made by the present appellants, was one for fraud and deceit and in which they obtained a verdict for actual damages. The present respondent, who was the appellant in the previous action, by one of its exceptions in this Court, charged error in the refusal of the Trial Judge to grant its motion for a nonsuit because the appellants here had failed to allege and prove that it intended to deceive them. In sustaining this exception of the appellant, we said:

“Stated more concisely, the respondents rely solely upon the general warranty of the deed to prove a false representation, with intent to' deceive.
“The question here is a novel one in that we have been cited no case by a purchaser of real estate for fraud and deceit based upon an alleged breach of the general warranty of the deed of conveyance. In this case, we are of the opinion that the general warranty does not justify a finding of an intent to deceive by the appellants.
“We limit this opinion to that one question, and express no opinion as to whether or not the evidence would justify a finding of a breach of warranty.
“The case will be remanded to the Circuit Court for the entry of a nonsuit in accordance with rule 27.”

The respondent pleads as a bar to the present action the judgment of this Court in the prior action between the parties, wherein the appellants unsuccessfully sought to sustain the judgment of the lower Court based upon a fraud and deceit action. The appellants assert that the aforesaid judgment does not constitute a bar but that the decision there authorizes the bringing of this action. We should point out that in the action which this Court decided, there was a fail *455 ure of proof in the sense that the evidence was legally insufficient to raise a factual issue as to fraud. This being true, we held that the lower Court was in error in refusing to grant the motion for a nonsuit as made by the respondent, in that case.

The respondent in the instant case moved for judgment on the pleadings as to its third defense, asserting that such barred the appellants from proceeding with the present action. The parties having stipulated as to the factual situation, the plea in bar was heard by the Judge of the Spartan-burg County Court. He sustained the respondent’s plea in bar upon the ground of res judicata and election of remedies. This appeal followed.

The first question for determination is whether our decision in Lancaster v. Smithco, Inc., 238 S. C. 15, 119 S. E. (2d) 145, was res judicata in the instant case. The Trial Judge so held and it is asserted that such was error.

In the case of Whaley v. Stevens, 24 S. C. 479, it was held that a judgment dismissing a complaint, which alleged the obstruction of road over which the plaintiff had a right of way in gross, for lack of evidence to sustain a right of way in gross, is not an adjudication that will defeat a second action alleging the obstruction of this same road over which the plaintiff had a right of way appendant or appurtenant. We quote from this case the following:

“* * * we think the judgment in the former case was nothing more than a judgment of nonsuit for failure of evidence to establish one of the material allegations of the complaint; and it certainly cannot be pretended that such a judgment, on such a ground, would support a plea of res adjudicata. * * *”

In the case of McCown v. Muldrow, 91 S. C. 523, 74 S. E. 386, this Court said:

“A motion for a nonsuit, on the ground that there is no testimony tending to sustain the material allegations of the *456 complaint, does not involve the merits, and the granting of such motion would not support a plea of res judicata

We have held that a former judgment of nonsuit is res judicata as to a second action only when it is made to appear that the former adjudication had been on the merits of the action. Whetsell v. Sovereign Camp W. O. W., 188 S. C. 106, 198 S. E. 153.

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Bluebook (online)
128 S.E.2d 915, 241 S.C. 451, 1962 S.C. LEXIS 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lancaster-v-smithco-inc-sc-1962.