775 S.E.2d 697
S.C.2015Background
- Amber Johnson purchased a Charleston house on Sept. 14, 2006; closing attorney was Stanley Alexander.
- Title examination had been performed earlier by attorney Charles Feeley; Alexander purchased Feeley’s title work from Johnson’s prior counsel, Mario Inglese, and relied on it.
- The property had been sold at a tax sale on Oct. 3, 2005; Johnson later discovered she did not have title and the property entered foreclosure.
- Johnson sued Alexander and Inglese for legal malpractice, breach of fiduciary duty, and breach of contract; she moved for partial summary judgment on Alexander’s liability.
- The circuit court granted partial summary judgment finding Alexander breached his duty to ensure marketable title; the Court of Appeals reversed, focusing on whether Alexander reasonably relied on Feeley’s work.
- The South Carolina Supreme Court granted certiorari, held an attorney remains liable for delegated tasks absent an express limitation of representation, reversed the Court of Appeals, and reinstated summary judgment on liability, remanding for damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an attorney who delegates a title search can avoid liability for negligence in that task | Johnson: Delegation does not relieve the attorney of duty; attorney remains liable absent an express, informed limitation | Alexander: Liability should turn on whether it was reasonable to rely on another attorney's title search | Held: An attorney is liable for negligence in delegated tasks unless the client expressly and reasonably limits scope of representation |
| Whether summary judgment on liability was proper given competing affidavits about the title search and public records availability | Johnson: Public records (Scarborough affidavit) show delinquent taxes and prior tax sale were publicly available and should have been discovered; Feeley’s affidavit lacked supporting documentation | Alexander: Feeley attested he would have found no delinquent taxes; reasonableness of reliance creates a factual issue for trial | Held: No genuine issue of material fact as to liability or proximate cause; summary judgment for liability was proper (trial limited to damages) |
Key Cases Cited
- Stevens & Wilkinson of S.C., Inc. v. City of Columbia, 409 S.C. 568, 762 S.E.2d 696 (S.C. 2014) (summary judgment standard)
- Evening Post Publishing Co. v. Berkeley County School Dist., 392 S.C. 76, 708 S.E.2d 745 (S.C. 2011) (view evidence in light most favorable to nonmoving party)
- Turner v. Milliman, 392 S.C. 116, 708 S.E.2d 766 (S.C. 2011) (nonmoving party need only a scintilla of evidence to survive summary judgment in certain contexts)
- Harris Teeter, Inc. v. Moore & Van Allen, PLLC, 390 S.C. 275, 701 S.E.2d 742 (S.C. 2010) (elements of legal malpractice claim)
- Holy Loch Distributors, Inc. v. Hitchcock, 340 S.C. 20, 531 S.E.2d 282 (S.C. 2000) (standard of care for attorneys)
- Elrod v. All, 243 S.C. 425, 134 S.E.2d 410 (S.C. 1964) (pleadings bind the parties and admissions are conclusive)