818 S.E.2d 218
S.C. Ct. App.2018Background
- Crenshaw, a tenured Erskine College professor and former paramedic, intervened when a student became disoriented after an athletic practice; disagreement followed about calling an ambulance and whether athletic trainers delayed transport.
- Athletic staff filed grievances alleging Crenshaw violated concussion/athletic protocols and disparaged trainers; matter escalated through faculty grievance procedures to President Norman.
- Norman initiated termination-for-cause procedures under Erskine’s Faculty Manual, offered Crenshaw three options (apologies, formal proceedings, or early-retirement severance), and set a hearing date if formal proceedings proceeded.
- Crenshaw did not timely accept the early-retirement offer or request the scheduled hearing; Norman terminated his employment after extended deadlines passed. Crenshaw sued for breach of contract (merged with wrongful discharge) and intentional infliction of emotional distress.
- A jury found Erskine breached the contract and awarded $600,000; the trial court later granted JNOV for Erskine, concluding Crenshaw had breached the contract by failing to request a hearing. The court of appeals reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court erred in granting JNOV after jury verdict | Crenshaw: JNOV improper because jury (via special verdict) resolved fact whether contract breached and its findings should stand | Erskine: Crenshaw failed to follow contract procedures (timely request hearing), so JNOV proper as a matter of law | Reversed: JNOV improper—reasonable jury could find Manual/letters ambiguous, Plaintiff’s breach immaterial, so jury verdict stands |
| Whether implied covenant of good faith and fair dealing was breached | Crenshaw: Erskine acted in bad faith by compressing/shortening procedural stages, suspending him, and cutting off time to consider early-retirement | Erskine: Followed Manual; Crenshaw failed to request hearing and did not accept severance in time | Held for Crenshaw: jury could find Erskine breached implied covenant by jumbling procedures and denying a meaningful opportunity for hearing |
| Whether use of special verdict form precludes JNOV | Crenshaw: Special verdict binding; court cannot grant JNOV after parties accepted special verdict form | Erskine: Rule 50 allows post-verdict JNOV when issues were raised at directed-verdict stage | Issue not preserved below, but court notes special verdict does not automatically bar JNOV; nevertheless, here JNOV reversal was error because jury resolution permitted |
| Preservation of good-faith argument | Crenshaw: He repeatedly argued Erskine acted in bad faith during trial and post-trial | Erskine: Plaintiff failed to specifically raise implied-covenant claim in motions/hearing | Court: Argument preserved—Crenshaw argued bad faith conduct (compressing stages) at trial |
Key Cases Cited
- Elam v. S.C. Dep't of Transp., 361 S.C. 9, 602 S.E.2d 772 (standard for reviewing directed verdict/JNOV)
- Strange v. S.C. Dep't of Highways & Pub. Transp., 314 S.C. 427, 445 S.E.2d 439 (deny directed verdict/JNOV if evidence permits more than one reasonable inference)
- Gastineau v. Murphy, 331 S.C. 565, 503 S.E.2d 712 (JNOV only when no reasonable jury could reach challenged verdict)
- Adams v. G.J. Creel & Sons, Inc., 320 S.C. 274, 465 S.E.2d 84 (existence of implied covenant of good faith and fair dealing in every contract)
- Smith v. Ridgeway Chemicals, Inc., 302 S.C. 303, 395 S.E.2d 742 (Rule 50(b) JNOV availability when issues submitted at directed-verdict stage)