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Equilease Corp. v. Weathers

Citations: 275 S.C. 478; 272 S.E.2d 789; 1980 S.C. LEXIS 507Docket: 21343

Court: Supreme Court of South Carolina; December 3, 1980; South Carolina; State Supreme Court

Narrative Opinion Summary

This case involves a dispute over the proper service of a Cross-Complaint in a litigation involving a stolen truck. Jerry F. Weathers and James G. Ledford leased a truck from Equilease Corporation and insured it with Kentucky Insurance Company, but after the truck was stolen, Equilease sued Kentucky for refusing to pay the insurance claim. Weathers and Ledford attempted to serve a Cross-Complaint on Kentucky via the South Carolina Commissioner of Insurance, but failed to serve Kentucky's attorneys, Alford and Johnson, as required once an attorney has appeared for a party under Code Section 15-9-990. Kentucky did not respond to the Cross-Complaint, leading Weathers and Ledford to seek a default judgment. Kentucky moved to quash the service, and the court ruled in favor of Kentucky, determining that the service was improper because it was not directed to the attorneys of record. The court emphasized the importance of following proper service procedures once jurisdiction is established. The court allowed Kentucky to respond to the Cross-Complaint, affirming that further service was unnecessary as Kentucky had already received the counterclaim. This decision underscores the necessity of adhering to procedural rules regarding service of process and jurisdiction in litigation involving foreign insurance companies.

Legal Issues Addressed

Invalid Service and Response Obligations

Application: The court affirmed that Kentucky should be permitted to respond to the Cross-Complaint because the initial service was invalid due to non-compliance with the proper service requirements.

Reasoning: Consequently, the service of the Answer and Cross-Complaint against Kentucky by Weathers and Ledford was deemed improper and invalid due to non-compliance with 15-9-990.

Jurisdiction and Service Requirements

Application: The court found that once jurisdiction over Kentucky was established, the substituted service statutes cited by Weathers and Ledford were inapplicable.

Reasoning: The court found that these statutes were irrelevant since jurisdiction over Kentucky had already been established, making the accompanying Summons unnecessary.

Service of Process Requirements under Code Section 15-9-990

Application: The court quashed the service of the Cross-Complaint against Kentucky because Weathers and Ledford did not serve Kentucky's attorneys, Alford and Johnson, in accordance with Code Section 15-9-990.

Reasoning: The court is addressing Kentucky's Motion to Quash the service of the Cross-Claim based on Code Section 15-9-990, which stipulates that once an attorney has appeared for a party, all legal documents must be served on that attorney rather than the party themselves.