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Jones Ex Rel. Jones v. E'prise Leas. Company-Southeast

Citations: 678 S.E.2d 819; 383 S.C. 259; 2009 S.C. App. LEXIS 185Docket: 4548

Court: Court of Appeals of South Carolina; May 18, 2009; South Carolina; State Appellate Court

Narrative Opinion Summary

In this case, a plaintiff, acting through a guardian ad litem, appealed a decision affirming summary judgment in favor of Enterprise Rent-A-Car (ERAC) regarding a claim of negligent entrustment. The plaintiff alleged that ERAC negligently allowed a vehicle to be driven by an individual with a history of reckless driving, leading to a serious accident. The legal issues included whether ERAC could be held liable as the alter ego of its subsidiary, Enterprise Leasing Company Southeast, and whether summary judgment was appropriately granted. The circuit court found that ERAC did not own or control the vehicle, and thus no negligent entrustment claim was viable. Additionally, the court found insufficient evidence to pierce the corporate veil and hold ERAC liable as the alter ego of its subsidiary. The appellate court affirmed the lower court's ruling, emphasizing the necessity of proving actual control and ownership for negligent entrustment claims, and upheld the summary judgment due to a lack of preserved issues for appeal. The outcome was that ERAC was not found liable for the plaintiff's injuries, and Jones's additional claims were dismissed.

Legal Issues Addressed

Alter Ego Doctrine and Piercing the Corporate Veil

Application: The court found no basis to pierce the corporate veil as Jones failed to show that ERAC exercised control over Southeast, or that maintaining separate corporate identities would result in fraud, injustice, or contravene public policy.

Reasoning: Jones's claims lacked evidence of ERAC exercising control over Southeast, such as undercapitalization, fraud, or financial instability.

Negligent Entrustment under South Carolina Law

Application: The court determined that Jones did not establish the necessary elements for a claim of negligent entrustment, specifically ownership and control of the vehicle by ERAC, rendering further discovery unnecessary.

Reasoning: Jones must demonstrate that her existing evidence or potential evidence from discovery would create a genuine issue regarding ERAC’s liability for negligent entrustment.

Preservation of Issues for Appeal

Application: The appellate court found that Jones's argument concerning the prior ruling was not preserved for review because it was not included in her initial appellate brief.

Reasoning: The appellate court found that this issue was not preserved for review, as new arguments cannot be introduced in a reply brief.

Summary Judgment Standard

Application: The court emphasized that summary judgment is appropriate only if there is no genuine issue of material fact regarding an essential element of the nonmoving party's case, which they must prove at trial.

Reasoning: Summary judgment may only be granted if there is no genuine issue of material fact regarding an essential element of the nonmoving party's case, which they must prove at trial.