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Linder v. Paramount Acceptance Corp.

Citations: 291 S.C. 539; 354 S.E.2d 567; 28 Wage & Hour Cas. (BNA) 10; 1987 S.C. App. LEXIS 267Docket: 0894

Court: Court of Appeals of South Carolina; March 15, 1987; South Carolina; State Appellate Court

Narrative Opinion Summary

In a legal action initiated by a former employee, Linder, against Paramount Acceptance Corporation, the court addressed claims of unpaid wages, statutory penalties under Section 41-11-170 of the South Carolina Code, and common law fraud. Linder was initially awarded $14,000 by a jury, but the amount was reduced following a motion for a new trial nisi. Paramount appealed the decision, and the court consolidated the appeals, ultimately affirming the lower court's judgment. Under Section 41-11-170, employers are obligated to pay due wages promptly upon discharge; however, Linder's failure to personally demand payment within the statutory period precluded her from recovering penalties. Paramount's defense of a good faith dispute was rejected due to their failure to inform Linder of any wage disputes. The court allowed the jury to consider Linder's common law fraud claim, despite her testimony inconsistencies, as it met the necessary legal elements. Paramount's objections to jury instructions and evidence admission were dismissed, reinforcing the applicability of bonuses as wages. The court's decision resulted in the affirmation of the lower court's rulings, with Linder's second suit against Paramount not addressed due to insufficient legal grounds in her exceptions.

Legal Issues Addressed

Admissibility of Evidence in Wage Disputes

Application: Bonuses withheld before the last pay period qualify as wages under Section 41-11-110(2) and are therefore admissible as evidence.

Reasoning: The court affirming that these bonuses qualify as wages under Section 41-11-110(2).

Common Law Fraud Claim Submission to Jury

Application: Despite inconsistencies in testimony, if essential elements of fraud are addressed, the issue should be submitted to the jury. Linder's testimony was sufficient for jury consideration.

Reasoning: Firstly, despite inconsistencies in the plaintiff's testimony, she sufficiently addressed the essential elements of fraud, including her reliance on representations regarding wages when she began working for Paramount.

Good Faith Defense in Wage Disputes

Application: Employers must establish a good faith dispute as an affirmative defense within sixty days of an employee's demand for unpaid wages. Paramount's failure to notify Linder of any wage dispute nullified their good faith defense.

Reasoning: Paramount did not notify Linder of any wage dispute, thus cannot claim Linder must demonstrate a lack of good faith.

Requirement for Personal Demand in Wage Disputes

Application: The employee's failure to personally call for payment within seven days after a demand precludes recovery of penalties, as demonstrated by Linder's case.

Reasoning: Linder did not make the required personal call for payment within the seven-day timeframe post-demand, which precluded penalties under Section 41-11-170.

Unpaid Wages and Employer's Duty under South Carolina Code Section 41-11-170

Application: Employers are required to pay all due wages within 48 hours of discharge or by the next payday. If an employee sends a written demand and personally calls for payment within seven days, the employer must comply within 30 days or face penalties.

Reasoning: Section 41-11-170 mandates that all unpaid wages become due upon an employee's discharge, requiring employers to pay within 48 hours or by the next payday.