Wachovia Bank National Ass'n ex rel. Wachovia Bank, N.A. v. Beane

725 S.E.2d 715, 397 S.C. 612, 2012 WL 1109350, 2012 S.C. App. LEXIS 87
CourtCourt of Appeals of South Carolina
DecidedApril 4, 2012
DocketNo. 4962
StatusPublished
Cited by1 cases

This text of 725 S.E.2d 715 (Wachovia Bank National Ass'n ex rel. Wachovia Bank, N.A. v. Beane) 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
Wachovia Bank National Ass'n ex rel. Wachovia Bank, N.A. v. Beane, 725 S.E.2d 715, 397 S.C. 612, 2012 WL 1109350, 2012 S.C. App. LEXIS 87 (S.C. Ct. App. 2012).

Opinions

FEW, C.J.

Wachovia Bank National Association appeals from judgment entered on a jury verdict in favor of Arthur and Virginia Beane. Wachovia contends the trial court erred in denying its motion for a new trial absolute. We agree and reverse.

I. Facts and Procedural History

In January 2002, the Beanes borrowed $370,473.41 from Wachovia to start a new business. As security for the loan, the Beanes pledged a securities account they held with Wachovia since 2000. In May 2003, after the Beanes defaulted on the note, Wachovia filed a complaint demanding payment of the entire outstanding balance on the loan, which at that time was $224,625.37.

[615]*615Almost three years later, in March 2006, the Beanes sought to amend their answer to assert a counterclaim for negligent mismanagement of the securities account. In January 2007, Wachovia filed a motion for summary judgment as to the Beanes’ obligation on the note. The master-in-equity heard both motions in August 2007. The master granted Wachovia’s motion for summary judgment finding “no genuine issue as to any material fact that the debt is owed by the Beanes.” However, the master found “a genuine question of fact as to the amount now due, owing and unpaid upon the Note” and set a damages hearing. The master granted the Beanes’ motion to amend their answer “to the extent the Defendant seeks to establish the right to setoff of the amount owed under the Note.”

The issues of damages due to Wachovia under the note and the Beanes’ setoff claim were tried before the circuit court in December 2008. The Beanes’ expert testified Wachovia’s mismanagement of the securities account resulted in under-performance in the amount of $176,121.00. At the close of the Beanes’ evidence, Wachovia made a motion for a directed verdict as to setoff. Wachovia argued the master’s order allowing the Beanes to assert setoff limited their recovery to the amount due on the note and the only evidence of damages incurred by the Beanes was the testimony of $176,121.00 of underperformance. The trial court denied the motion.

The trial court submitted the Beanes’ setoff claim to the jury. The court charged the jury that it may award only one form of relief — money damages. The charge and verdict form gave the jury two options: award the Beanes damages in a specific amount for Wachovia’s alleged mismanagement of the securities account, or find no liability and award a verdict to Wachovia. Nevertheless, the jury awarded the Beanes three separate elements of relief: (1) money damages “in the amount of $198,395.17,” (2) “plus all attorney fees,” and (3) “any remaining amount on the Beanes’ loan account forgiven.”

Wachovia renewed the arguments it made for directed verdict in a motion for judgment notwithstanding the verdict. Wachovia also made motions for new trial absolute or, in the alternative, new trial nisi remittitur. The trial court denied Wachovia’s motions.

[616]*616II. New Trial Absolute

Wachovia made a motion for a new trial absolute based on the jury’s failure to follow the trial court’s instructions. Specifically, Wachovia argued the jury’s award of attorney’s fees and forgiveness of the note was improper under the law, not supported by any evidence, and in direct contradiction of the jury charge. In Wachovia’s motion for a new trial nisi remittitur it argues even the dollar amount of the verdict exceeds the amount of the recoverable loss testified to by the Beanes’ own expert. We agree and hold the motion for a new trial absolute should have been granted.

“If the amount of the verdict is grossly inadequate or excessive so as to be the result of passion, caprice, prejudice, or some other influence outside the evidence, the trial judge must grant a new trial absolute.” O’Neal v. Bowles, 314 S.C. 525, 527, 431 S.E.2d 555, 556 (1993) (emphasis omitted); Curtis v. Blake, 392 S.C. 494, 500, 709 S.E.2d 79, 82 (Ct.App.2011) (internal quotations marks omitted). “A trial judge’s refusal to grant a new trial absolute when the verdict is grossly inadequate or excessive is an abuse of discretion” and on appeal this court will grant a new trial absolute. Allstate Ins. Co. v. Durham, 314 S.C. 529, 531, 431 S.E.2d 557, 558 (1993). The combined effect of the three elements of the jury’s verdict in this case demonstrates the jury awarded relief that was grossly excessive, based its decision on matters outside of the evidence, and did not follow the jury instructions.

First, the jury awarded the Beanes forgiveness of the remaining amount of the loan account. Because the trial court’s charge did not permit the jury to award this relief, and because the master awarded summary judgment on the note, the jury acted outside of its authority in awarding this relief. Moreover, there was no evidence presented as to the amount due on the loan as of the date of trial. Therefore, it was impossible for the jury to determine if the Beanes proved damages that equaled or exceeded the amount due on the loan. As to this element of the verdict, the jury awarded relief not permitted by the trial court in an unknown amount as to which there is no evidentiary support.

[617]*617Second, the jury awarded the Beanes attorney’s fees. The parties presented no evidence of attorney’s fees, the trial court did not instruct the jury that it could award attorney’s fees, and as a matter of law, attorney’s fees are not recoverable in this action. See Jackson v. Speed, 326 S.C. 289, 307, 486 S.E.2d 750, 759 (1997) (“Attorney’s fees are not recoverable unless authorized by contract or statute.”). After the jury returned the verdict, both parties and the trial court agreed that attorney’s fees were not recoverable. The trial court could not cure this improper action of the jury by simply excluding the attorney’s fees from the judgment.

Third, the jury awarded the Beanes $198,395.17. However, the only evidence of damages suffered by the Beanes as a result of the negligent mismanagement of the securities account is the testimony of their expert stating the account underperformed by $176,121.00. While it may have been possible for the Beanes to prove consequential damages beyond the financial loss due to underperformance of the account, no such proof was offered. The Beanes contend on appeal that the expert’s testimony of $176,121.00 does not include interest. However, the record gives the jury no basis on which to determine how to calculate any lost interest. We also note the trial court charged pain and suffering as an element of damages. However, there is no evidence in the record concerning pain and suffering.1 Therefore, the maximum award supported by the evidence presented in this case is the amount of damages testified to by the Beanes’ expert— $176,121.00.

The combination of the three elements of damages yields a grossly excessive verdict. The verdict demonstrates that the jury acted on some basis other than the evidence presented and that it did not follow the legal instructions given by the trial court. Our courts have consistently held that when a [618]*618grossly excessive jury verdict is based on improper considerations such as these, the trial judge must grant a new trial.

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Bluebook (online)
725 S.E.2d 715, 397 S.C. 612, 2012 WL 1109350, 2012 S.C. App. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wachovia-bank-national-assn-ex-rel-wachovia-bank-na-v-beane-scctapp-2012.