717 S.E.2d 765
S.C. Ct. App.2011Background
- Riverwalk is a 228-unit condominium project in Horry County; construction ran 1997–1999 with HCI as parent and HRI/BuildStar as management and contractor respectively.
- Riverwalk POA (property owners) and individual unit owners, including Tony Pope, sued Appellants for construction defects and related damages.
- Trial court directed verdicts on several claims; jury awarded damages to the POA and the Class for loss of use and punitive damages.
- Court consolidated POA and Class actions; class certification granted for 228 condo owners under Rule 23(a).
- Appellants argued amalgamation of interests among HCI, HRI, and BuildStar; trial court found amalgamation; issues of punitive damages and class decertification were raised on appeal.
- The Court of Appeals affirmed the verdicts and all challenged rulings, including liability amalgamation and damages, after reviewing the trial record.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether jury instructions properly defined negligence and punitive damages | Pope/Class contend instructions merged willful conduct with negligence. | Appellants argue no reversible error; instructions adequate as a whole. | No reversible error; charge read as a whole was substantially correct. |
| Whether the court erred in finding amalgamation of interests among HCI, HRI, and BuildStar | Amalgamation supports veil-piercing theory for liability. | Alleged amalgamation supported; not preserved for piercing-the-veil review. | Amalgamation of interests found; preserved issues not reversible. |
| Whether the Class should have been decertified for commonality/typicality | Common issue of loss of use affects all members; typicality shown. | Use varies among members; no common issue. | Class certification affirmed; commonality/typicality satisfied. |
| Whether loss-of-use expert testimony was properly admitted | DeSantis’s methodology applies losses uniformly across owners. | Methodology flawed; need individualized analyses. | Testimony upheld; gatekeeping and reliability findings affirmed. |
| Whether evidence of defects at other developments supported punitive damages | Similar past conduct shows culpability; supports damages. | Evidence prejudicial; should be limited to HCI Riverwalk. | Evidence of other developments admissible; Gamble factors satisfied. |
Key Cases Cited
- Felder v. K-Mart Corp., 297 S.C. 446 (1989) (standard for review of jury verdicts; corrections of errors of law)
- Gardner v. S.C. Dep't of Revenue, 353 S.C. 1 (2003) ( Rule 23 class prerequisites; numerosity, commonality, typicality, adequacy, amount in controversy)
- McKnight v. S.C. Dep't of Corr., 385 S.C. 380 (Ct.App.2009) (proximate cause generally jury question; when law governs, court can decide)
- Collins v. Bisson Moving & Storage, Inc., 332 S.C. 290 (Ct.App.1998) (concessions at trial can support directed verdicts on liability/proximate cause)
- Gamble v. Stevenson, 305 S.C. 104 (1991) (factors for reviewing punitive damages; no need for explicit findings on each factor)
- Keaton ex rel. Foster v. Greenville Hosp. Sys., 334 S.C. 488 (1999) (charge review; substantial correctness standard)
- Futch v. McAllister Towing of Georgetown, Inc., 335 S.C. 598 (1999) (appellate review when prior ruling dispositive; no need to reach later issues)