Mathis v. Brown & Brown of South Carolina, Inc.

698 S.E.2d 773, 389 S.C. 299, 2010 S.C. LEXIS 287
CourtSupreme Court of South Carolina
DecidedAugust 9, 2010
Docket26851
StatusPublished
Cited by60 cases

This text of 698 S.E.2d 773 (Mathis v. Brown & Brown of South Carolina, 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
Mathis v. Brown & Brown of South Carolina, Inc., 698 S.E.2d 773, 389 S.C. 299, 2010 S.C. LEXIS 287 (S.C. 2010).

Opinion

*304 Justice PLEICONES.

This is an appeal from a trial court’s order awarding damages under claims for breach of contract and violation of the Payment of Wages Act. Appellant Brown & Brown of South Carolina (Appellant) contends the trial court erred (1) in finding it breached its contract with Respondent Blair Mathis (Mathis); (2) in finding it violated the Payment of Wages Act; (3) in applying the Payment of Wages Act to prospective wages; (4) in failing to comply with Rule 52, SCRCP; and (5) in denying Appellant’s motion for change of venue. We affirm on all issues with the exception of the trial court’s holding that the Payment of Wages Act applies to prospective wages.

FACTS

A. Employment History

Mathis was employed as an account executive and producer for Reidman Insurance in Spartanburg, which was acquired by Appellant during Mathis’s employment. In 2003, Mathis left employment with Appellant and went to work with a company that would later become Carolina First.

In 2004, Mathis received a call from an acquaintance, Herb McBride, the Profit Center Manager for Appellant’s Green-ville office. The two had lunch a number of times and began to discuss Mathis returning to work for Appellant. In August 2004, McBride verbally offered Mathis a salary of $90,000 per year for the first year of employment with Appellant, as well as a 20% commission on new business generated by Mathis. Additionally, Mathis would be assigned the $300,000 book of business of a departing producer and, in six months, would be named the Sales Manager. Mathis declined the offer.

McBride later laid out a new offer, which he then communicated in an e-mail (the McBride e-mail) which provided in part:

This offer is from Hyatt Brown. The guaranteed salary for the first year is $110,000. You will be assigned the duties, responsibilities, and title of sales manager. Going forward I will assign, at least, $500,000 in coded existing business to comply with the 40/20 [commission structure] or apply the appropriate salary as a sales manager to insure that the *305 second year will be $120,000 earnings. As we discussed, if you are meeting your goals and achievements, doing your part, we will make sure we do our part and you are taken care [of] going forward. You will have an open expense account for customary expenses less than $100. Anything larger will require my approval.

Hyatt Brown was the CEO of Appellant’s corporate office. Mathis testified that McBride explained that Hyatt Brown was involved through “corporate assistance,” which meant that corporate headquarters was willing to pay part of Mathis’s salary. After further negotiations, on September 17, 2004, Mathis accepted the offer and sent his resignation letter to Carolina First. Mathis began work on September 27, 2004. Two days later, he signed an Employment Agreement.

B. Employment with Appellant

Mathis testified that he arrived for work one morning and found a blank copy of a corporate assistance form on his chair with a note from McBride saying that they needed to discuss the document. Mathis reviewed the document and noticed that it contained language providing for certain production goals and consequences for failing to meet the goals. According to Mathis, he objected to McBride that such contingencies were not part of his contract deal to which McBride responded that Mathis’s salary would be unaffected by any failure to meet the goals.

In February 2005, McBride was replaced as Profit Center Manager by Clay Collins. Mathis testified that he met with Collins and brought his correspondence and employee records. Collins explained that he would not need a sales manager as he would be handling those duties himself. Mathis testified that he told Collins that he expected to have his job offer honored, to which Collins responded that he needed time to get acclimated to the new job and they would discuss the matter later.

In an e-mail in May 2005, Collins placed limits on expense accounts which were inconsistent with Mathis’s agreement with McBride. In July 2005, Collins asked to meet with Mathis and informed him that, due to his failure to meet corporate assistance goals, he would reduce Mathis’s salary to $90,000. According to Mathis, he told Collins that “it was *306 wrong” and that the two of them needed to speak with McBride, but Collins declined to do so. Mathis testified that he then turned to McBride who explained that he could not help Mathis. Beginning August 8, Appellant paid Mathis at the reduced salary.

In January 2006, Collins set new goals for Mathis for the coming year and warned that “[a]ny future short falls in new business and growth to your book will certainly have an impact on your compensation.” Mathis responded with a letter in which he detailed his negotiations with McBride and the terms set forth in the e-mails from McBride. In a memo dated March 10, 2006, Collins again outlined payment reductions and extended a termination offer to Mathis. The memo provided, in part:

In an email sent by Herb McBride (Profit Center Manager at the time) in September 2004, it was agreed that you would earn $110,000 in the first year and $120,000 in the second year of employment. In return for full cooperation with reasonable requests made by me, I am prepared to continue paying your current bi-weekly draw of $3,461.54 through March 31, 2006. During this time, you will be expected to meet with all current clients and future prospects currently in inventory in order to make full introductions to the new agent handling the account or myself as the Profit Center Manager. In return, I will provide you with a severance package totaling $16,124.86 which is equivalent to the pro-rata difference of $110,000 Year 1 and $120,000 Year 2 salaries that were originally agreed upon versus amounts paid through March 31, 2006.

Mathis did not respond to the offer and was terminated. Mathis then instituted this action.

C. Procedural History

The trial court found a two-year contract of employment existed between the parties and that Appellant breached the terms of the contract by reducing Mathis’s pay. The court further found that there was no bona fide dispute regarding the wages due Mathis and that Appellant violated the Payment of Wages Act by failing to pay Mathis the contract amount. Pursuant to the Payment of Wages Act, the trial court awarded Mathis three times the unpaid wages of his *307 two-year contract, plus attorney’s fees. See S.C.Code Ann. § 41-10-80(C) (Supp.2005). The award was based on the difference between the reduced wages and the contractual compensation during the period Mathis remained employed, plus the wages he would have earned for the remaining term of the contract, less post-termination wages earned from other employment during that term. Appellant appealed, contesting a number of issues from the trial court.

STANDARD OF REVIEW

Actions seeking damages for breach of contract and actions for violation of the Payment of Wages Act are actions at law.

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Cite This Page — Counsel Stack

Bluebook (online)
698 S.E.2d 773, 389 S.C. 299, 2010 S.C. LEXIS 287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mathis-v-brown-brown-of-south-carolina-inc-sc-2010.