Estate of Susan Shaffer v. DEH Disaster Recovery LLC
2024-UP-414
| S.C. Ct. App. | Dec 11, 2024Background
- After Hurricane Matthew, Beaufort County hired Ceres Environmental Services as prime contractor for cleanup, which subcontracted to Spencer A. Olson Trucking (Olson), which further subcontracted to DEH Disaster Recovery (DEH).
- A fatal accident occurred when a DEH trailer became detached and struck Susan Shaffer’s vehicle; DEH employee Ryan Stoltz was driving.
- Susan Shaffer’s estate sued Beaufort, Ceres, Olson, DEH, and others for negligence; settlements were reached with Olson and DEH.
- The estate’s third amended complaint then asserted direct negligence claims against Beaufort and Ceres only.
- Beaufort and Ceres sought contractual and equitable indemnification from Olson and DEH based on their subcontracting relationships; trial court granted summary judgment for Olson and DEH on indemnification claims and for Beaufort and Ceres on direct negligence.
- Appeals were consolidated, raising issues related to direct negligence liability and rights to indemnification between the parties.
Issues
| Issue | Plaintiff’s Argument | Defendant’s Argument | Held |
|---|---|---|---|
| Direct negligence (negligent hiring) against Beaufort and Ceres | Negligent hiring is a direct claim per Restatement (Second) §411 and related authority | No SC authority allows negligent hiring as a direct claim against principal of an independent contractor | Summary judgment for Beaufort/Ceres reversed; direct negligence claim remanded per new SC Supreme Court decision (Ruh) |
| Contractual indemnification against Olson | Olson’s Master Subcontract requires indemnity for harms caused by Olson, including vicarious liability | Indemnification provision is void under SC Code §32-2-10 for trying to indemnify for Beaufort/Ceres’s own negligence | Summary judgment for Olson reversed; claim remanded for consideration |
| Contractual indemnification against DEH | DEH was arguably bound because contract documents referenced Master Subcontract | No contract binding DEH to indemnify Beaufort/Ceres | Summary judgment for DEH affirmed; no contractual duty found |
| Equitable indemnification against DEH | Special relationship or imputed fault creates viable equitable indemnity | No special relationship for equitable indemnity exists between DEH and Beaufort/Ceres | Summary judgment for DEH affirmed; relationship too attenuated for equity |
Key Cases Cited
- Brockbank v. Best Cap. Corp., 341 S.C. 372 (S.C. 2000) (standard for appellate review of summary judgment)
- Fleming v. Rose, 350 S.C. 488 (S.C. 2002) (summary judgment evidence viewed favorably to non-movant)
- Ruh v. Metal Recycling Servs., LLC, 439 S.C. 649 (S.C. 2023) (SC law allows direct liability for negligent selection of independent contractors)
- Standard Fire Co. v. Marine Contracting & Towing Co., 301 S.C. 418 (S.C. 1990) (when summary judgment appropriate)
- D.R. Horton, Inc. v. Builders FirstSource-Se. Grp., LLC, 422 S.C. 144 (S.C. Ct. App. 2018) (interpretation of indemnity clauses)
- Rock Hill Tel. Co. v. Globe Commc'ns, Inc., 363 S.C. 385 (S.C. 2005) (requirements for indemnity, equitable relationships)
- Stevens Aviation, Inc. v. DynCorp Int’l LLC, 394 S.C. 300 (S.C. Ct. App. 2011) (incorporation of contract terms)