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Sub-Zero Freezer Co. v. R.J. Clarkson Co.

Citations: 417 S.E.2d 569; 308 S.C. 188; 1992 S.C. LEXIS 100Docket: 23634

Court: Supreme Court of South Carolina; April 13, 1992; South Carolina; State Supreme Court

Narrative Opinion Summary

The case involves an appeal by Clarkson against the enforcement of a Wisconsin judgment in South Carolina and the dismissal of its counterclaims against Sub-Zero Freezer Company. Clarkson, a South Carolina distributor, had previously settled a lawsuit with Sub-Zero, agreeing to a payment and inventory repurchase. After defaulting, Sub-Zero successfully sued Clarkson in Wisconsin for breach of settlement, and Clarkson's jurisdictional challenge failed on appeal. Sub-Zero sought to enforce this judgment in South Carolina, where the Circuit Court dismissed Clarkson's counterclaims under the doctrine of res judicata. Clarkson's appeal argued that the Wisconsin judgment was inadmissible due to procedural non-compliance, but the court found the judgment properly certified. Res judicata barred Clarkson's claims related to breach, fraud, and unfair trade practices as they were or could have been litigated in Wisconsin. The Circuit Court's decision was affirmed, and Sub-Zero was awarded $1,000 in attorney's fees for prevailing on appeal. The alignment of Wisconsin's res judicata law with South Carolina's principles was noted, and the remittitur was scheduled for issuance fifteen days post-opinion.

Legal Issues Addressed

Admissibility of Foreign Judgments under State Procedural Rules

Application: The court deemed the Wisconsin judgment admissible in South Carolina as it complied with the state's procedural requirements, evidenced by proper certification.

Reasoning: The judgment was accompanied by a properly certified document from the Wisconsin court, including signatures and seals confirming its authenticity.

Attorney's Fees for Prevailing Party on Appeal

Application: The court granted Sub-Zero's motion for attorney's fees, recognizing its prevailing status on appeal and the reasonableness of the fee request.

Reasoning: Sub-Zero's motion for attorney's fees of $1,000 was granted, as it was deemed reasonable and Sub-Zero prevailed on appeal.

Res Judicata and Enforcement of Foreign Judgments

Application: The court applied res judicata to bar Clarkson's counterclaims and upheld the enforcement of the Wisconsin judgment in South Carolina, since the issues had been or could have been litigated previously.

Reasoning: Clarkson's appeal challenges the admissibility of the Wisconsin judgment based on procedural grounds, specifically citing non-compliance with South Carolina Rule of Civil Procedure 44(a)(1).

Res Judicata in Settlement Agreements

Application: Claims related to the settlement agreement, including breach and wrongful termination, were barred by res judicata as they had been or could have been addressed in prior litigation.

Reasoning: Clarkson alleged that Sub-Zero owed him $12,000 under a settlement agreement, but the Wisconsin Court had previously determined that Sub-Zero had not breached the agreement, thus the claim was dismissed as barred by res judicata.