812 S.E.2d 759
S.C. Ct. App.2018Background
- In 2011 A&P Enterprises (owned by Kim Patel) purchased at foreclosure three parcels in Lynchburg previously owned by his brother Sam Patel, who continued operating a liquor store and Tommy's Grill on the property.
- No written lease existed; Sam placed the operating business into SP Grocery (his daughter's LLC) and obtained licenses.
- A&P sued for ejectment and damages after Sam/SP failed to pay rent and reimburse A&P for taxes, gasoline purchases, and other expenses.
- Respondents counterclaimed asserting promissory estoppel: Kim had promised Sam he could repurchase the property and Sam relied by making improvements.
- The special referee found Sam had an equitable interest (promissory estoppel), denied eviction, and awarded A&P money for gasoline purchases; A&P appealed.
- The appellate court reviewed promissory estoppel, eviction, and quantum meruit/unpaid rent issues and modified the referee’s rulings accordingly.
Issues
| Issue | A&P's Argument | Respondents' Argument | Held |
|---|---|---|---|
| Whether promissory estoppel established an equitable interest in the property | No: promise was ambiguous and lacked definite terms; no meeting of minds | Yes: Kim promised Sam could repurchase for a stated price and anticipated payments; Sam relied and improved the property | Reversed: promise was ambiguous, no meeting of the minds, and reliance was unreasonable; promissory estoppel not proven |
| Whether Respondents could be evicted | A&P: occupancy terminated / rent unpaid; eviction appropriate | Respondents: equitable interest prevents eviction | Reversed and remanded: eviction proceedings may go forward because no equitable interest was shown |
| Whether A&P is entitled to unpaid rent (quantum meruit) | Yes: Respondents received benefit by occupying rent-free; unjust to retain benefit | Respondents: payments were intended as credits toward repurchase, not rent; also claim offsets for improvements | Reversed in favor of A&P on liability: remanded to compute unpaid rent beginning July 10, 2013 and to offset awards for Respondents’ improvements; consider prejudgment interest |
| Whether monetary awards for gasoline purchases and prejudgment interest were proper | A&P: entitled to recover for gasoline purchases | Respondents: disputed amounts/obligation | Affirmed: special referee’s awards for the two gasoline purchases and prejudgment interest upheld |
Key Cases Cited
- Ins. Fin. Servs., Inc. v. S.C. Ins. Co., 271 S.C. 289, 247 S.E.2d 315 (1978) (frames test whether action is equitable or legal)
- Linda McCo., Inc. v. Shore, 390 S.C. 543, 703 S.E.2d 499 (2010) (appellate review deference to special referee’s factual findings in legal actions)
- Florence Cty. Sch. Dist. No. 2 v. Interkal, Inc., 348 S.C. 446, 559 S.E.2d 866 (Ct. App. 2002) (appellate scope of review in equity referrals)
- Wright v. Craft, 372 S.C. 1, 640 S.E.2d 486 (Ct. App. 2006) (treats mixed equitable and legal claims with divided scope of review)
- N. Am. Rescue Prods., Inc. v. Richardson, 411 S.C. 371, 769 S.E.2d 237 (2015) (defines promissory estoppel as a quasi-contract remedy and elements)
- Satcher v. Satcher, 351 S.C. 477, 570 S.E.2d 535 (Ct. App. 2002) (sets out promissory estoppel elements and effect)
- Barnes v. Johnson, 402 S.C. 458, 742 S.E.2d 6 (Ct. App. 2013) (promissory estoppel requires an unambiguous promise with definite terms)
- Rushing v. McKinney, 370 S.C. 280, 633 S.E.2d 917 (Ct. App. 2006) (absence of clearly articulated terms precludes promissory estoppel)
- Earthscapes Unlimited, Inc. v. Ulbrich, 390 S.C. 609, 703 S.E.2d 221 (2010) (elements and equitable nature of quantum meruit recovery)
