Overland, Inc. v. Nance , 815 S.E.2d 431 ( 2018 )


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  •           THE STATE OF SOUTH CAROLINA
    In The Supreme Court
    Overland, Inc., d/b/a Land Rover Greenville, Petitioner,
    v.
    Lara Marie Nance, Charlie Andrew Nance, Roger Fields,
    Synovus Financial Corporation d/b/a NBSC, Branch
    Banking and Trust Company, Bank of America
    Corporation, and SunTrust Banks, Inc., Defendants,
    of which Bank of America Corporation and SunTrust
    Banks, Inc. are the Respondents.
    Appellate Case No. 2016-002151
    ON WRIT OF CERTIORARI TO THE COURT OF APPEALS
    Appeal from Greenville County
    Letitia H. Verdin, Circuit Court Judge
    Opinion No. 27800
    Heard May 2, 2018 – Filed May 23, 2018
    AFFIRMED
    Carl F. Muller, of Carl F. Muller, Attorney at Law, P.A.,
    and T. Hunt Reid, of Howard Howard Francis & Reid,
    both of Greenville, for Petitioner.
    James W. Sheedy and Susan E. Driscoll, both of Driscoll
    Sheedy, P.A., of Charlotte; Zachary Lee Weaver and W.
    Howard Boyd Jr., both of Gallivan, White & Boyd, PA, of
    Greenville, for Respondents.
    JUSTICE FEW: Overland, Inc., filed this lawsuit against Lara Marie Nance, Bank
    of America, SunTrust Banks, and other defendants seeking damages arising out of
    Nance's embezzlement of $1,282,000 from the Land Rover dealership Overland
    operated in the city of Greenville. Nance pled guilty in federal court to wire fraud
    for stealing the money and was sentenced to 46 months in prison. Overland's theory
    of liability against Bank of America and SunTrust was that allowing Nance to
    deposit forged checks into fraudulent accounts she created breached duties the banks
    owed to Overland. The banks made motions for summary judgment on the ground
    they owed no duty to Overland, who was not a customer of either bank. The circuit
    court granted the motions for summary judgment, stating, "Overland [was] unable
    to demonstrate that [the banks] owed it any duty . . . ." The circuit court denied
    Overland's Rule 59(e) motion. Overland filed a notice of appeal, which the court of
    appeals dismissed in an unpublished opinion. Overland, Inc. v. Nance, Op. No.
    2016-UP-368 (S.C. Ct. App. filed July 20, 2016). We granted Overland's petition
    for a writ of certiorari.
    This Court may affirm the trial court on any ground appearing in the record. Rule
    220(c), SCACR. After carefully reviewing the record and the parties' briefs to this
    Court and the court of appeals, we affirm on the merits the circuit court's order
    granting summary judgment. See Rule 220(b)(1), SCACR; Oblachinski v. Reynolds,
    
    391 S.C. 557
    , 560, 
    706 S.E.2d 844
    , 845 (2011) ("A motion for summary judgment
    on the basis of the absence of a duty is a question of law for the court to determine.");
    S.C. Code Ann. § 36-3-103(a)(9) (Supp. 2017) ("In the case of a bank that takes an
    instrument for processing for collection or payment by automated means, reasonable
    commercial standards do not require the bank to examine the instrument if the failure
    to examine does not violate the bank's prescribed procedures and the bank's
    procedures do not vary unreasonably from general banking usage not disapproved
    by this chapter or Chapter 4."); Kerr v. Branch Banking & Tr. Co., 
    408 S.C. 328
    ,
    333, 
    759 S.E.2d 724
    , 727 (2014) (holding a bank's limited duty of care to customers
    does not extend to non-customers where the non-customer's claims are premised on
    disputed contractual obligations between a bank and its customer, but the non-
    customer is not an intended third-party beneficiary to that contract).
    We clarify, however, a point of confusion that appears to have existed between the
    parties and the circuit court.1 Rule 6(b) of the South Carolina Rules of Civil
    Procedure gives trial courts limited authority to extend deadlines set forth in the
    Rules. However, Rule (6)(b) explicitly excludes Rule 59 and certain other rules from
    that authority. Rule 6(b) states, "The time for taking any action under rules 50(b),
    52(b), 59, and 60(b) may not be extended except to the extent and under the
    conditions stated in them." Rule 59(e) does not have any "conditions stated" which
    would allow such an extension. Rather, Rule 59(e) states, "A motion to alter or
    amend the judgment shall be served not later than 10 days after receipt of written
    notice of the entry of the order."
    We have previously held that the ten-day limit for serving a Rule 59(e) motion is an
    absolute deadline. In Leviner v. Sonoco Prods. Co., 
    339 S.C. 492
    , 
    530 S.E.2d 127
    (2000), the circuit court entered a dispositive order on January 10, 
    1997. 339 S.C. at 493
    , 530 S.E.2d at 127. "Neither party filed a Rule 59(e), SCRCP, motion within
    the ten day period allowed by that rule." 
    Id. Nevertheless, on
    February 10, the
    circuit court issued another dispositive order completely reversing itself from the
    January 10 order. We held,
    the trial judge's . . . order filed February 10, 1997, more
    than thirty days later, was patently untimely. Under Rule
    59(e), SCRCP, the trial judge has only ten days from entry
    of judgment to alter or amend an earlier order on his own
    initiative . . . . When no timely Rule 59 motion was made
    nor timely sua sponte order filed under Rule 59(e), the
    January . . . order "matured" into a final judgment. The
    order filed on February 10 was a nullity because the trial
    judge no longer had jurisdiction over the 
    matter. 339 S.C. at 494
    , 530 S.E.2d at 128; see also Russell v. Wachovia Bank, N.A., 
    370 S.C. 5
    , 20, 
    633 S.E.2d 722
    , 730 (2006) ("Generally, a trial judge loses jurisdiction
    over a case when the time to file post-trial motions has elapsed."); Doran v. Doran,
    
    288 S.C. 477
    , 
    343 S.E.2d 618
    (1986) (on appeal from an order entered just before
    the effective date of the Rules of Civil Procedure, holding the trial court lost the
    1
    Although we affirm the circuit court order pursuant to Rule 220(b)(1), the
    discussion following this footnote is not in the nature of a memorandum opinion
    pursuant to Rule 220(b)(1), and is intended to be precedential in all future civil
    litigation in this State.
    power to modify the final order after end of the term of court, and noted that under
    Rule 59(e) the trial court would have the power to alter or amend such an order for
    a ten-day period after entry of judgment).
    In light of these authorities, we repeat that the ten-day deadline in Rule 59(e) is an
    absolute deadline. A trial court does not have the power to alter or amend a final
    order if more than ten days passes and no Rule 59(e) motion has been served,
    Leviner, 339 S.C. at 
    494, 530 S.E.2d at 128
    , nor does a trial court have any power to
    grant the moving party an extension of time in which to file a Rule 59(e) motion, see
    Alston v. MCI Commc'ns Corp., 
    84 F.3d 705
    , 706 (4th Cir. 1996) ("It is clear . . . that
    the district court was without power to enlarge the time period for filing a Rule 59(e)
    motion."). The failure to serve a Rule 59(e) motion within ten days of receipt of
    notice of entry of the order converts the order into a final judgment, and the
    aggrieved party's only recourse is to file a notice of intent to appeal.
    The order of the circuit court granting summary judgment to the banks is
    AFFIRMED on the merits.
    BEATTY, C.J., KITTREDGE, HEARN and JAMES, JJ., concur.
    

Document Info

Docket Number: Appellate Case 2016-002151; Opinion 27800

Citation Numbers: 815 S.E.2d 431

Judges: Few

Filed Date: 5/23/2018

Precedential Status: Precedential

Modified Date: 10/19/2024