Rutland v. Holler, Dennis, Corbett, Ormond & Garner

637 S.E.2d 316, 371 S.C. 91, 2006 S.C. App. LEXIS 222
CourtCourt of Appeals of South Carolina
DecidedOctober 30, 2006
Docket4171
StatusPublished
Cited by10 cases

This text of 637 S.E.2d 316 (Rutland v. Holler, Dennis, Corbett, Ormond & Garner) 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
Rutland v. Holler, Dennis, Corbett, Ormond & Garner, 637 S.E.2d 316, 371 S.C. 91, 2006 S.C. App. LEXIS 222 (S.C. Ct. App. 2006).

Opinion

*94 BEATTY, J.:

Robert Rutland appeals the circuit court’s order awarding attorney’s fees and costs to Respondents pursuant to the South Carolina Frivolous Civil Proceedings Sanctions Act. We affirm. 1

FACTS

In 1987, Rutland was terminated from his employment as a project engineer for Yates Development Corporation (Corporation). After the Corporation filed for bankruptcy in 1991, a dispute over the Corporation’s patents arose between Rutland and Larry Yates, the owner of the Corporation. In conjunction with this dispute, Yates was indicted in federal court for bankruptcy fraud. Pursuant to an agreement, the charge was dismissed against Yates. In turn, Yates, who was represented by Francis Draine, filed a federal action against Rutland, the United States, and several government officials for what he claimed to be a groundless indictment and prosecution. After the case against Rutland was dismissed by the federal district court, Rutland brought suit, case number 97-CP-40-4380, in the Richland County Court of Common Pleas against Yates and Draine for several causes of action, including malicious prosecution. Although the court granted summary judgment in favor of Draine, Rutland’s counsel, James Corbett, obtained a $350,000 judgment against Yates. Corbett appealed the dismissal of the case against Draine to this court. After we affirmed the grant of summary judgment, Rutland’s counsel petitioned for certiorari to our supreme court. The supreme court denied the petition.

Subsequently, Rutland, proceeding pro se, sued Corbett and his law firm for legal malpractice, breach of contract, and fraud in case number 02-CP-40-1724. On January 30, 2004, Circuit Court Judge Alison Lee issued a form order, and ultimately a formal order, granting summary judgment in favor of Corbett and his law firm on the cause of action for legal malpractice and denying summary judgment for the remaining claims. On February 11, 2004, Circuit Court Judge *95 Reginald Lloyd dismissed Rutland’s claims for breach of contract and fraud pursuant to Rule 12(h)(2) of the South Carolina Rules of Civil Procedure.

While case number 02-CP-40-1724 was pending, Rutland filed another lawsuit against Corbett, case number 02-CP-40-1843, alleging legal malpractice arising out of the circuit court trial in which Corbett obtained a verdict of $350,000 in favor of Rutland against Yates. This lawsuit ended in a grant of summary judgment for Corbett.

On February 24, 2004, Rutland filed a third lawsuit, case number 04-CP-40-0900, against Corbett and his law firm for breach of contract and fraud based on the above-outlined facts. After a hearing, Circuit Court Judge Casey Manning issued a form order on August 9, 2004, granting the defendants’ motion to dismiss. Judge Manning indicated that he would issue a formal order. The clerk of court’s office mailed a copy of the form order to the parties on August 10, 2004.

On September 1, 2004, Respondents filed a motion for attorney’s fees and costs pursuant to the South Carolina Frivolous Civil Proceedings Sanctions Act. 2 On December 7, 2004, Judge Manning issued his formal order in which he dismissed Rutland’s lawsuit against Respondents on the grounds of res judicata/collateral estoppel and insufficient service of process. 3 .A hearing on Respondents’ motion for attorney’s fees and costs was originally scheduled for December 7, 2004, but was continued until April 12, 2005, as a result of Rutland being hospitalized.

By order dated September 20, 2005, Judge Manning granted Respondents’ motion for attorney’s fees and costs in the amount of $2,585.79. Rutland appeals.

*96 DISCUSSION

I.

Rutland argues Judge Manning did not have jurisdiction to rule on Respondents’ motion for attorney’s fees and costs because the motion was untimely. Specifically, Rutland contends Respondents failed to file their motion within ten days of Judge Manning’s order dismissing Rutland’s lawsuit on August 9, 2004. We disagree.

“The established case law is that a trial judge loses jurisdiction over a case when the time to file post-trial motions has elapsed.” Ex parte Beard, 359 S.C. 351, 358, 597 S.E.2d 835, 838 (Ct.App.2004). “[Bjecause a trial judge retains jurisdiction pursuant to Rule 59(e), SCRCP, to alter or amend a judgment within ten days of its issuance, a motion for sanctions would be timely if filed within ten days of judgment.” Pitman v. Republic Leasing Co., 351 S.C. 429, 431, 570 S.E.2d 187, 189 (Ct.App.2002).

In the instant case, Judge Manning issued a form order dismissing Rutland’s case against Respondents on August 9, 2004. In issuing this order, Judge Manning specifically indicated that he intended to file a formal order. Thus, Judge Manning retained jurisdiction until the time for post-trial motions elapsed after the issuance of his formal order on December 7, 2004. Accordingly, Respondents’ motion filed on September. 1, 2004, was timely and Judge Manning had jurisdiction to rule on the motion. See Cheap-O’s Truck Stop, Inc. v. Cloyd, 350 S.C. 596, 605, 567 S.E.2d 514, 518 (Ct.App.2002) (noting that a form order is not a final order if the circuit court specifies that a formal order will be filed); see also Culbertson v. Clemens, 322 S.C. 20, 23, 471 S.E.2d 163, 164 (1996) (“Any judgment or decree, leaving some further act to be done by the court before the rights of the parties are determined, is interlocutory and not final.”).

II.

Turning to the merits of the appeal, Rutland argues Judge Manning erred in granting Respondents’ motion. Rut-land contends Respondents failed to meet the burden of proof as required under the South Carolina Frivolous Civil Proceedings Sanctions Act. Additionally, Rutland asserts he presented *97 evidence that he brought the causes of action against Respondents with a proper purpose, thus, negating the imposition of sanctions under the Act. We disagree.

“The determination of whether attorney’s fees should be awarded under the Frivolous Proceedings Act is treated as one in equity.” Hanahan v. Simpson, 326 S.C. 140, 156, 485 S.E.2d 903, 912 (1997). “In reviewing the award in issue, this Court may take its own view of the preponderance of the evidence.” Id. “However, following the determination of facts, an appellate court applies an abuse of discretion standard in reviewing the decision to award sanctions and the specific sanctions awarded.” Ex parte Beard, 359 S.C. at 357, 597 S.E.2d at 838.

The South Carolina Frivolous Civil Proceedings Sanctions Act provides:

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Cite This Page — Counsel Stack

Bluebook (online)
637 S.E.2d 316, 371 S.C. 91, 2006 S.C. App. LEXIS 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rutland-v-holler-dennis-corbett-ormond-garner-scctapp-2006.