This appeal stems from a previously-litigated dispute between two upstate realtors over the sale and commission of a parcel of real estate on Lake Keowee. John Shaw (Mr. Shaw) claims the circuit court committed reversible error when it denied his motion for directed verdict on Adrienne Hennes’ (Ms. Hennes) claim for breach of contract and when it granted Ms. Hennes’ motion for directed verdict on Mr. Shaw’s claim for violation of the South Carolina Unfair Trade Practices Act (UTPA). Mr. Shaw also contends the circuit court erred in excluding evidence of attorney’s fees he incurred from the prior related litigation with Ms. Hennes. He argues the fees were an element of damages in his tortious interference with a contract claim against Ms. Hennes in the current litigation. Finally, Mr. Shaw claims the circuit court erred when it sua sponte charged the jury on conversion. We affirm in part, reverse in part, and remand in part.
FACTS
Ms. Hennes and Mr. Shaw are licensed realtors in the upstate of South Carolina. The parties first met in April 2005 and decided to co-list approximately nine or ten real estate
Subsequent to Mr. Shaw’s purchase of the Pelfrey Property, Ms. Hennes filed suit against Mr. Shaw in circuit court alleging Mr. Shaw breached a loan agreement between the parties and owed Ms. Hennes $27,662.15. In response, Mr. Shaw answered and counterclaimed against Ms. Hеnnes, asserting claims for tortious interference with contract, violation of the UTPA, fraud, conspiracy, and breach of fiduciary duty. During trial, Ms. Hennes claimed she issued three checks to Mr. Shaw in the amounts of $20,000, $3,800, and $3,862.15 in anticipation of them “working together to expand real estate.” To the contrary, Mr. Shaw testified Ms. Hennes endorsed three checks in those amounts to him as a partial advance for commissions on propertiеs they had co-listed. Once their relationship began to deteriorate, Ms. Hennes testified she requested Mr. Shaw return the money she gave to him for “the expansion of real estate” because the money was not a gift. Despite these requests, Ms. Hennes claimed Mr. Shaw refused to return the money, which prompted the present suit. In contrast, Mr. Shaw claimed he was entitled to keep these monies because Ms. Hennes and her reаlty company solely received the remainder of the commissions on several of the properties they co-listed.
At the conclusion of Mr. Shaw’s case, the court directed a verdict in favor of Ms. Hennes on Mr. Shaw’s claims for unfair trade practices and fraud. Mr. Shaw conceded his breach of contract claim against Ms. Hennes, but Ms. Hennes maintained her sole claim for breach of contract against Mr. Shaw. Mr. Shaw’s remaining claims for tortious interference with
The jury charge on conversion, which is before this court on aрpeal, was as follows:
Now, the plaintiff alleges that defendant assumed and exercised an unauthorized right of ownership or dominion over personal property belonging to the plaintiff to the exclusion of the owner’s rights. This may arise by some illegal use or misuse or by illegal detention of another’s personal property. It is a wrongful act which may arise from either a wrongful taking or a wrongful detention. It cannot arise from the defendant’s exercise of a legal right over property. Any act of the defendant inconsistent with the plaintiffs right of possession or subversive of her right to the property is conversion. The gist of conversion is the interference with control of the property. To recover in an action for conversion, the plaintiff must prove by the preponderance or greater weight of the evidence an interest by the plaintiff in the thing converted, the defendant converted the property to his own use and that the use was without the plaintiffs permission.
As soon as the jury exited the courtroom, Mr. Shaw objected to the jury charge on conversion on two grounds, stating, “[Ms. Hennes] never moved to amend under Rule 15(b) to add conversion. Their cause of action was breach of contract. I never hear [sic] the court instruct the jury that ... [Ms. Hennes] must show that [Mr. Shaw] did this without [Ms. Hennes’] pеrmission.... ” The circuit court overruled Mr. Shaw’s objection and stated,
I think that I did charge without permission, wrongful detention. It’s noted. I looked very carefully [at] plaintiffs claim or cause of action, and although it uses the word “loan agreement,” he does not allege a contract that was given according to a contract [sic]. And the law of conversion really is nothing more than the wrongful detention of someone else’s property when requested that it be returned. SoI note your objection and request and I deny it for the record.
The jury subsequently returned a verdict for Ms. Hennes in the amount of $27,662.15 and a verdict for Mr. Shaw in the amount of $8,750. 1 Mr. Shaw moved for additur to his verdict based on the attorney’s fees incurred in litigating his claim against Ms. Hennes in the previous action. Mr. Shaw also moved for judgment notwithstanding the verdict on the conversion claim. The court permitted ten days for the filing of рost-trial motions. On December 12, 2008, the circuit court formally denied Mr. Shaw’s motion for JNOV and new trial nisi additur as well as Ms. Hennes’ motion to alter or amend the judgment pursuant to Rule 59(e), SCRCP. This appeal followed.
LAW/ANALYSIS
I. Directed Verdict
When reviewing a motion for directed verdict or judgment notwithstanding the verdict, the appellate court applies the same standard as the circuit court.
Elam v. S.C. Dep’t of Transp.,
1. Breach of Contract
First, Mr. Shaw claims the circuit court erred in denying his directed verdict motion on Ms.- Hennes’ breach of contract claim. We disagree.
Viewing thе evidence in the light most favorable to Ms. Hennes, we find conflicting evidence exists on whether a contract was formed, and thus, the circuit court properly denied Mr. Shaw’s motion for a directed verdict on Ms. Hennes’ breach of contract claim. Mr. Shaw maintained the parties did not have a “loan agreement,” and Ms. Hennes was not entitled to a return of the money because the checks, which Mr. Shaw deposited into his business bаnking account, were an advance for commissions on the nine or ten properties they co-listed 'together. Despite the absence of a written contract, both parties’ testimony indicates the checks were not a gift, but rather were given to Mr. Shaw as part of their agreement to buy and sell real estate together. We find the checks constituted valuable consideration in that they created a benefit to Mr. Shaw and a detriment to Ms. Hennes.
See Shayne of Miami, Inc. v. Greybow, Inc.,
2. The UTPA
Next, Mr. Shaw claims the circuit court erred in directing a verdict on his unfair trade practices cause of action based on the regulated industries exemption in the UTPA. In response, Ms. Hennes claims that even if the circuit court erred in relying on this exemption, Mr. Shaw failed to demonstrate Ms. Hennes’ actions adversely affected the public interest. We agree with Ms. Hennes.
An action for damages may be brought under the UTPA for “unfair methods of competition and unfair or deceptive acts or practices” in the conduct of trade or commerce. S.C.Code Ann. § 89-5-20(a) (Supp.2010). A party’s ability to bring suit under the UTPA is limited, however, by section 39-5-40 of the South Carolina Code (Supp.2010). Subsection (a) provides the UTPA does not apply to “[ajctions or transactions permitted under laws administered by any regulatory body or officer acting under statutory authority of this State or the United States or actions or transactions permitted by any other South Carolina state law.” § 39-5-40(a).
The supreme court expounded on the breadth of subsection (a) in the case of
Ward v. Dick Dyer &
Assoc.,
Inc.,
The purpose of the exemption is to insure that a business is not subjected to a lawsuit under the [UTPA] when it does something required by law, or does something that wouldotherwise be a violation of the [UTPA], but which is allowed under other statutes or regulations. It is intended to avoid conflict between laws, not to exclude from the [UTPA]’s coverage every activity that is authorized or regulated by another statute or agency.
Id.
at 156,
In support of Mr. Shaw’s claim that Ms. Hеnnes violated the UTPA, he produced evidence that Ms. Hennes repeatedly replaced his contracts with her own contracts and excluded him from commissions to which he otherwise would have been entitled. At the close of evidence, the circuit court granted Ms. Hennes’ motion for a directed verdict on Mr. Shaw’s unfair trade practices claim. The majority of the colloquy between the parties and the circuit court regarding this particular ruling was omitted in the record on appeal, but the circuit court cited
Scott v. Mid Carolina Homes, Inc.,
Despite the circuit court’s error in relying on the regulated industries exemption, Mr. Shaw failed to present any evidence that Ms. Hennes’ actions cаused public harm, which is required for a viable claim under the UTPA.
See Columbia E.
Assoc.
v. Bi-Lo, Inc.,
II. Jury Charge on Conversion
Mr. Shaw contends the circuit court committed reversible error when it sua sponte charged the jury on conversion. In response, Ms. Hennes contends this issue is not preserved because Mr. Shaw failed to request a continuance after the charge as required by Rule 15(b), SCRCP. We agree with Mr. Shaw.
In reviewing an alleged error in jury instructions, we are mindful that an appellate court will not reverse the circuit court’s decision absent an abuse of discretion.
See Cole v. Rant,
Although Ms. Hennes contends Mr. Shaw did not properly preserve this issue for appeal because Mr. Shaw failed to request a continuance under Rule 15(b), we find Rule 15(b) does not apply in this instance. 3 Pursuant to Rule 15(b), SCRCP,
When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings. Such amendment of the pleadings ... may be made upon motion of any party at any time, even after judgment; but failure so to amend does not affect the result of the trial of these issues____ [T]he court may allow the pleadings to be amended and shall do so freely when the presentation of the merits of the action will be subserved thereby and the objecting party fails to satisfy the court that the admission of such evidence would prejudice him in maintaining his action or defense upon the merits. The court shall upon motiоn grant a continuance reasonably necessary to enable the objecting party to meet such evidence.
First, the record does not reflect the parties expressly consented to try the issue of conversion.
See
Rule 15(b),
In the alternative, Ms. Hennes argues Mr. Shaw was not prejudiced because Mr. Shaw was on notice of a cause of action for conversion based on the languagе of the complaint. We disagree.
In Ms. Hennes’ one-page complaint, she alleged the following: Ms. Hennes loaned Mr. Shaw $27,622.15; Ms. Hennes demanded payment; Mr. Shaw failed to make payment; and his actions were in breach of their loan agreement, which entitled her to damages for Mr. Shaw’s “breach of the contract.” We find the language in the complaint does not sufficiently place Mr. Shaw on notice of a claim for conversion as it specifically categorized the action as a “breach of contract.” While a conversion action may lie when the plaintiff shows unauthorized detention of property, after demand, we find the complaint failed to sufficiently flesh out the requisite facts to support a conversion claim.
See Mackela v. Bentley,
In conclusion, the circuit court’s sua sponte jury charge prejudiced Mr. Shaw because he was deprived of the opportunity to prepare for the issue of conversion and to raise the appropriate affirmative defenses at trial.
See Armstrong v. Collins,
CONCLUSION
Based on the foregoing, we affirm the circuit court’s decision to grant Ms. Hennes’ motion for a directed verdict on Mr. Shaw’s UTPA cause of action. We affirm the circuit court’s decision to deny Mr. Shaw’s motion for a directed verdict on Ms. Hennеs’ breach of contract cause of action. However, the circuit court erred in sua sponte charging the jury on conversion. Therefore, we reverse and remand for a new trial on the remaining causes of action: breach of contract, tortious interference with contract, conspiracy, and breach of fiduciary duty.
Accordingly, the circuit court’s decision is
AFFIRMED IN PART, REVERSED IN PART, and REMANDED.
Notes
. The $8,750 figure represented half the commission for the sale of two properties co-listed by Ms. Hennes and Mr. Shaw.
. In
Scott,
the court of appeals held that the regulation of a mobile home seller by the manufactured housing board exempted the seller from liability under the UTPA.
Id.
at 201,
. Ms. Hennes also makes a cursory assertion that Mr. Shaw failed to timely object to the circuit court’s jury charge. We disagree and find that Mr. Shaw’s counsel timely objected to the charge outside the jury’s presence pursuant to Rule 51, SCRCP, which states, "No pаrty may assign as error the giving or the failure to give an instruction unless he objects thereto before the jury retires to consider its verdict, stating distinctly the matter to which he objects and the grounds for his objection. Opportunity shall be given to make the objection out of the hearing of the jury.”
. In response to Mr. Shaw’s request, the circuit court stated, "Well, I'm not going to let you look over the charge. I'll tell you what it is. You can take the exceptions to it after it's charged.”
. In light of our disposition on this issue, we decline to address Mr. Shaw’s remaining arguments.
See Futch v. McAllister Towing Inc.,
