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Williams Carpet Contractors, Inc. v. Skelly

Citations: 400 S.C. 320; 734 S.E.2d 177; 2012 S.C. App. LEXIS 307Docket: No. 5040

Court: Court of Appeals of South Carolina; October 24, 2012; South Carolina; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by Williams Carpet Contractors, Inc. from a circuit court decision granting Mark Skelly's motion for judgment notwithstanding the verdict (JNOV) in a dispute regarding payment for flooring work. Williams Carpet, having provided materials and services for a development project initiated by M.S. Industries and managed by Skelly, claimed outstanding payment after partial compensation. They sued for breach of contract, quantum meruit, negligent misrepresentation, and violations of the Unfair Trade Practices Act. The breach of contract claim was dismissed before trial, and the jury ultimately favored Williams Carpet on the quantum meruit claim, awarding them $168,000. Skelly's JNOV motion argued that payment to Ruonala and Company satisfied any obligations to Williams Carpet, but the trial court's ruling was reversed on appeal due to evidence suggesting incomplete payment to Ruonala. The appellate court found that the trial court improperly granted JNOV by not viewing evidence in Williams Carpet's favor and upheld Williams Carpet's quantum meruit claim, as unjust enrichment was established and Skelly's failure to contest the quantum meruit claim or raise an express contract defense at trial weakened his position. The appellate decision reinstated the jury's award in favor of Williams Carpet.

Legal Issues Addressed

Breach of Contract vs. Quantum Meruit

Application: Williams Carpet abandoned its breach of contract claim and pursued quantum meruit, allowing recovery since the jury did not evaluate a contract's existence and Skelly did not raise an express contract as a defense.

Reasoning: Breach of contract claims and quantum meruit claims can serve as alternative remedies rather than being mutually exclusive. In this case, Williams Carpet abandoned its breach of contract claim and pursued quantum meruit without contest from Skelly, and the jury did not evaluate whether a contract existed.

Judgment Notwithstanding the Verdict (JNOV) Standard

Application: The trial court erred in granting JNOV by not viewing evidence in the light most favorable to Williams Carpet, who presented sufficient evidence that M.S. Industries paid less than the full contract price.

Reasoning: The standard of review for a JNOV motion requires the trial court to view evidence favorably towards the nonmoving party. The appellate court must adhere to the same standard, submitting the case to the jury if reasonable inferences can be drawn from the evidence.

Quantum Meruit as an Equitable Remedy

Application: Williams Carpet could recover under quantum meruit as it conferred a benefit to M.S. Industries, which was recognized, and it would be inequitable for the latter to retain this benefit without compensation.

Reasoning: The court recognizes quantum meruit, quasi-contract, and implied by law contract as equivalent equitable remedies, wherein a plaintiff must demonstrate that they conferred a benefit to the defendant, the defendant recognized that benefit, and it would be inequitable for the defendant to retain the benefit without compensating for its value.

Subcontractor's Right to Recover under Quantum Meruit

Application: Despite not filing a mechanic’s lien, Williams Carpet was not barred from recovery under quantum meruit as Skelly persuaded them not to file, and unjust enrichment was established.

Reasoning: While some courts have ruled that a subcontractor’s failure to pursue a mechanic’s lien may negate a claim of unjust enrichment, the South Carolina Supreme Court has held that this failure does not automatically bar a quantum meruit claim if unjust enrichment can still be established.