732 S.E.2d 185
S.C. Ct. App.2012Background
- Broach and Loomis, real estate agents, sue for unpaid commissions from Advantage Real Estate, Inc.
- Contracts with Advantage: Independent Contractor Agreements stating commissions are paid after Advantage receives buyer payment.
- Paradise Grande, LLC hired Advantage to presell Horizon 77th condos; First Agreement required presales by August 31, 2006 and 6% commission.
- Paradise Grande later renegotiated with Wachovia for a construction loan, requiring a $500,000 letter of credit and commission subordination to the loan.
- Second Agreement between Paradise Grande and Advantage subordinated commissions to the construction loan; Carter testified it was a clear, no-brainer decision.
- Wachovia foreclosed after Horizon failed to meet presale requirements; all commissions were subordinated and none were paid; plaintiffs claim they are still owed commissions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Jacobson tortiously interfered with contracts | Jacobson knowingly interfered and caused breach | Interference was justified; no wrongful conduct | No liability; evidence insufficient due to justification |
| Whether punitive damages were properly awarded | Punitive damages supported by tortious interference | Judgment reversed on underlying tort claim, so punitive damages invalid | Punitive damages reversed |
Key Cases Cited
- Vortex Sports & Entm’t, Inc. v. Ware, 378 S.C. 197 (Ct.App. 2008) (elements of tortious interference with contract)
- Eldeco, Inc. v. Charleston County School District, 372 S.C. 470 (2007) (intent to harm not required; absence of justification controls liability)
- Rent-A-Center, Inc. v. Dept. of Consumer Affairs, 345 S.C. 251 (Ct.App. 2001) (parties generally free to contract terms)
- Futch v. McAllister Towing of Georgetown, Inc., 335 S.C. 598 (1999) (appellate review limits when dispositive issue exists)
- S. Contracting, Inc. v. H.C. Brown Constr. Co., Inc., 317 S.C. 95 (Ct.App. 1994) (absence of justification required to prove tortious interference)
- Townes Assocs., Ltd. v. City of Greenville, 266 S.C. 81 (196) (standard of review for jury verdicts in law actions)