Narruhn v. Alea London Ltd.
745 S.E.2d 90
S.C.2013Background
- Narruhn sued RKC and Cato for injuries from a shooting at The Red Room in Myrtle Beach.
- A special referee was appointed to conduct supplemental proceedings to locate assets to satisfy the judgment.
- The referee granted Narruhn an assignment of all rights RKC might have against Insurer, including any claims.
- Narruhn filed a current action against Insurer and Anderson General for damages, arguing failure to pay or defend.
- Insurer moved under Rule 60(b) to set aside the referee’s assignment order; the circuit court denied.
- The circuit court ruled the motion untimely, without authority to rule, and lacking standing; this Court affirmed as modified.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of Rule 60(b) motion | Insurer timely under 60(b)(1),(4),(5). | Timeliness measured from order of reference; outside one-year limit. | Timeliness was correct; motion timely under 60(b) standards. |
| Circuit court authority to rule | Referee’s final order left no duties; circuit court lacks authority. | Rule 60(b) motion presents a separate matter and is properly before the circuit court. | Circuit court had authority to rule on the Rule 60(b) motion. |
| Standing to seek Rule 60(b) relief | Insurer, though not a party, may challenge under Rule 60(b). | Insurer was not a party to the challenged order and thus lacks standing. | Insurer did not have standing; motion affirmed as to standing grounds. |
| Merits of anti-assignment provision | Anti-assignment clause and notice defects merit reversal of assignment. | We do not reach merits; standing forecloses review of merits. | Merits not reviewed due to standing; defenses preserved for pending action. |
| Preservation of insurer defenses | Insurer retains defenses under the policy and can raise them later. | Narruhn’s stipulation preserves Insurer's rights; merits are for later action. | Insurer retains all defenses/rights; will be considered in Narruhn's pending action. |
Key Cases Cited
- McClurg v. Deaton, 380 S.C. 563 (Ct.App.2008) (party status governs Rule 60(b) standing to seek relief)
- Edwards v. Ferguson, 254 S.C. 278 (42 S.E.2d 224 (1970)) (nonparty insurer may seek Rule 60(b) relief prior to SCRCP era)
- Johnson v. Service Management, Inc., 319 S.C. 165 (Ct.App.1995) (supplemental proceedings reach third-party funds after notice)
- Wachovia Bank of S.C. v. Player, 341 S.C. 424 (2000) (master/referee authority to resolve related Rule 60(b) motions)
- Twelfth RMA Partners, L.P. v. Nat’l Safe Corp., 335 S.C. 635 (Ct.App.1999) (assignee stands in assignor's shoes with defenses)
- Fairchild v. S.C. Dep't of Transp., 398 S.C. 90 (Ct.2006) (interpretation of SCRCP rules follows plain meaning)
- Weeks v. McMillan, 291 S.C. 287 (Ct.App.1987) (alternative grounds sustain circuit court denial)