2019-000598
S.C. Ct. App.Jun 30, 2021Background
- The Rickenbakers sued Schumacher Homes; Schumacher defaulted, and the circuit court referred the matter to a special referee under Rule 53(b), SCRCP.
- The special referee conducted a hearing and awarded the Rickenbakers $71,249.99 in actual damages for mold-related home repairs.
- Marjorie Rickenbaker testified about repair costs, provided contractor names, and supplied estimates for unrepaired portions of the home.
- Schumacher appealed, arguing (1) the special referee lacked subject matter jurisdiction and (2) the damages award lacked evidentiary support.
- The Court of Appeals held the referral and appointment of the special referee were proper under Rule 53(b) and § 15-31-150 and that the referee had the same authority to conduct hearings as the circuit court.
- The court also held the Rickenbakers presented competent evidence of damages and affirmed the $71,249.99 award; a reply-brief argument about appointment outside the county was deemed abandoned.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the special referee had subject matter jurisdiction to hear the damages claim | Referral to a special referee was proper under Rule 53(b); referee had authority to hear default cases | Appointment was improper and therefore referee lacked jurisdiction | Court affirmed: Rule 53(b) and §15-31-150 authorize appointment in default cases; referee had jurisdiction |
| Whether evidence supported the $71,249.99 damages award | Marjorie's testimony, contractor names, and estimates sufficed to prove damages by a preponderance | Evidence was insufficient to establish the awarded amount | Court affirmed: testimony and estimates constituted competent evidence to support the award |
Key Cases Cited
- Smith Cos. of Greenville, Inc. v. Hayes, 311 S.C. 358, 428 S.E.2d 900 (special referee may conduct hearings like circuit court under Rule 53)
- Evatt v. Campbell, 234 S.C. 1, 106 S.E.2d 447 (special referee findings have effect of jury verdict absent legal error)
- Solley v. Navy Fed. Credit Union, Inc., 397 S.C. 192, 723 S.E.2d 597 (credibility and weight of evidence are for the special referee)
- Mazloom v. Mazloom, 382 S.C. 307, 675 S.E.2d 746 (if record supports damages award, appellate review is limited to errors of law)
- Jackson v. Midlands Human Res. Ctr., 296 S.C. 526, 374 S.E.2d 505 (in default, plaintiff must prove damages by a preponderance of the evidence)
- Roche v. Young Bros., Inc. of Florence, 332 S.C. 75, 504 S.E.2d 311 (trial conduct and admission of testimony lie largely within referee's discretion)