Chappell v. Ladles Soups -James Island, LLC
| Docket Number | 2023-UP-277,Appellate Case 2020-000201 |
| Decision Date | 02 August 2023 |
| Parties | Teri Chappell, as Personal Representative of the Estate of Craig Chappell, on behalf of himself and others similarly situated, Appellant, v. Ladles Soups -James Island, LLC; Ladlessoups, LLC; Ladles Soups at Cane Bay, LLC; Ladles Soups at Citadel Mall, LLP; Ladles Soups Calhoun, LLC; Ladles Soups Cane Bay, LLC; Ladles Soups Coosaw, LLC; Ladles Soups Downtown Charleston, LLC; Ladlessoups Fresh Fields, LLC; Ladles Soups @ Freshfields Village, LLC; Ladlessoups Mainstreet, LLC; Ladles Soups Moncks Corner, LLC; Ladlessoups Mount Pleasant, LLC; Ladles Franchise Development, LLC; Ladles Franchising, Inc.; Ladles Fort Mill, LLC; Ladles Knightsville, LLC; Ladles West Ashley; Teri Owens; Sue Allen; Tracy Allen; Steve Traeger; Erik Dyke; Julie Dyke; Stan Sutton; Carol Sutton; Jason Dalter; Kellie Henderson; Jane Doe 1-25 (Unknown Operating Company and Management Company Owners); John Doe 25-40 (Management Personnel), Defendants, Of Which Ladlessoups Mount Pleasant, LLC, Erik Dyke, and Julie Dyke, are Respondents. and Teri Chappell, as Personal Representative of the Estate of Craig Chappell, on behalf of himself and others similarly situated, Appellant, v. Ladles Soups -James Island, LLC; Ladlessoups, LLC; Ladles Soups at Cane Bay, LLC; Ladles Soups at Citadel Mall, LLP; Ladles Soups Calhoun, LLC; Ladles Soups Cane Bay, LLC; Ladles Soups Coosaw, LLC; Ladles Soups Downtown Charleston, LLC; Ladlessoups Fresh Fields, LLC; Ladles Soups @ Freshfields Village, LLC; Ladlessoups Mainstreet, LLC; Ladles Soups Moncks Corner, LLC; Ladles Franchise Development, LLC; Ladles Franchising, Inc.; Ladles Fort Mill, LLC; Ladles Knightsville, LLC; Ladles West Ashley; Teri Owens; Sue Allen; Tracy Allen; Steve Traeger; Erik Dyke; Julie Dyke; Stan Sutton; Carol Sutton; Jack Dalter; Kellie Henderson; Jane Doe 1-25 (Unknown Operating Company and Management Company Owners); John Doe 25-40 (Management Personnel), Defendants, Of Which Ladles Franchising, Inc., Ladlessoups, LLC, Sue Allen, and Tracy Allen, are Respondents. and Teri Chappell, as Personal Representative of the Estate of Craig Chappell, on behalf of himself and others similarly situated, Appellant, v. Ladles Soups -James Island, LLC; Ladlessoups, LLC; Ladles Soups at Cane Bay, LLC; Ladles Soups at Citadel Mall, LLP; Ladles Soups Calhoun, LLC; Ladles Soups Cane Bay, LLC; Ladles Soups Coosaw, LLC; Ladles Soups Downtown Charleston, LLC; Ladlessoups Fresh Fields, LLC; Ladles Soups @ Freshfields Village, LLC; Ladlessoups Mainstreet, LLC; Ladles Soups Moncks Corner, LLC; Ladles Franchise Development, LLC; Ladles Franchising, Inc.; Ladles Fort Mill, LLC; Ladles Knightsville, LLC; Ladles West Ashley; Teri Owens; Sue Allen; Tracy Allen; Steve Traeger; Erik Dyke; Julie Dyke; Stan Sutton; Carol Sutton; Jack Dalter; Kellie Henderson; Jane Doe 1-25 (Unknown Operating Company and Management Company Owners); John Doe 25-40 (Management Personnel), Defendants, Of Which Ladles Soups Coosaw, LLC, Ladles Soups Downtown Charleston, LLC, Ladlessoups Fresh Fields, LLC, Ladles Soups @ Freshfields Village, LLC, Ladles Soups Moncks Corner, LLC, Ladles Franchise Development, LLC, Ladles Fort Mill, LLC, Ladles Knightsville, LLC, Ladles West Ashley, Steve Traeger, Stan Sutton, Carol Sutton, and Kellie Henderson, are Respondents. |
| Court | South Carolina Court of Appeals |
THIS OPINION HAS NO PRECEDENTIAL VALUE. IT SHOULD NOT BE CITED OR RELIED ON AS PRECEDENT IN ANY PROCEEDING EXCEPT AS PROVIDED BY RULE 268(D)(2), SCACR.
Heard May 9, 2023
Appeal From Charleston County Bentley Price, Circuit Court Judge Benjamin Scott Whaley Le Clercq and David D. Ashley, both of the Le Clercq Law Firm, P.C., of Mount Pleasant, for Appellant.
Peter Brandt Shelbourne, of Shelbourne Law Firm, of Summerville for Respondents Ladlessoups Mount Pleasant, LLC, Erik Dyke and Julie Dyke.
Kerry W. Koon, of Kerry W. Koon, Attorney at Law, and Michael Evan Lacke, of Lacke Law Firm, LLC, both of Charleston, for Respondents Ladles Franchising Inc., Ladlessoups, LLC, Sue Allen, and Tracy Allen.
Paul B. Ferrara, III, and Janel Kleinhardt Ferrara, both of Ferrara Law Firm, PLLC, of North Charleston, for Respondents Ladles Soups Coosaw, LLC, Ladles Soups Downtown Charleston LLC, Ladlessoups Fresh Fields, LLC, Ladles Soups @ Freshfields Village, LLC, Ladles Soups Moncks Corner, LLC, Ladles Franchise Development, LLC, Ladles Fort Mill, LLC, Ladles Knightsville, LLC, Ladles West Ashley, Steve Traeger, Stan Sutton, Carol Sutton, and Kellie Henderson.
Teri Chappell (Appellant), as the Personal Representative of the Estate of Craig Chappell,[1] appeals circuit court orders granting summary judgment to Respondents[2] in this class-action lawsuit against multiple locations and entities of Ladles Soups. As to all Respondents, Appellant argues the circuit court erred in (1) granting summary judgment because Appellant did not have a full and fair opportunity to complete discovery and (2) finding Appellant lacked standing. As to the Mount Pleasant Respondents and the Charleston Respondents Appellant argues the circuit court additionally erred in granting summary judgment because the court had not heard Appellant's motion for class certification. As to the Mount Pleasant Respondents and the Franchising Respondents, Appellant argues the circuit court erred in not finding an issue of triable fact for the jury existed. As to the Franchising Respondents, Appellant argues the circuit court erred in granting summary judgment because the Franchising Respondents were employers liable under the South Carolina Payment of Wages Act (SCPWA).[3] Finally, as to the Charleston Respondents, Appellant argues the circuit court erred in failing to deem admitted certain requests for admission. We affirm.[4]
Chappell was an employee at the Ladles Soups restaurant on James Island and was paid an hourly wage, plus tips. Although Chappell worked for and earned credit card and cash tips, he was allowed to retain only some cash tips while the restaurant retained the credit card tips. Chappell asserted he was immediately terminated when he complained about the policy of withholding credit card tips.
On February 14, 2018, Chappell brought a lawsuit against Respondents on behalf of himself and others similarly situated, alleging class-action causes of action for failure to pay wages under the SCPWA, breach of contract, and conversion. Chappell alleged Ladles Soups, as part of a company-wide policy, wrongfully and intentionally withheld credit card tips that were rightfully intended for himself and others similarly situated in violation of the SCPWA. It is undisputed that Chappell was an employee of Ladles Soups James Island only, and he was never employed by any other Ladles Soups store. Each Ladles Soups is independently owned and operated, and Chappell had no contractual relationship with any of the defendants except Ladles Soups James Island which is not a respondent in these appeals.
Numerous of the Respondents testified in depositions. Julie Dyke, co-owner with Erik Dyke of Ladlessoups Mount Pleasant, LLC, testified that she and Erik were the sole members of Ladlessoups Mount Pleasant, a separate franchise. Dyke stated Chappell never worked at Ladlessoups Mount Pleasant. She testified that each month, all credit card tips for Ladlessoups Mount Pleasant are "distributed among all the employees based on how many hours they work." She also testified she attended meetings once or twice a year with the Ladles Soups franchisor and other Ladles Soups franchisees where a tipping policy and wages were discussed. At an October 29, 2019 hearing, the Mount Pleasant Respondents' counsel stated that they "turn over the tips, the credit card tips, through a bonus program to the employees." Sue Allen, a Franchising Respondent and Chief Executive Officer of Ladles Franchising, testified that while she owned Ladles Soups locations, she paid her employees hourly wages and retained the credit card tips to subsidize the employees' hourly wage. The employees split the cash tips. However, Allen stated there was no company-wide policy concerning the handling of credit card or cash tips.
Non-respondents also testified in depositions. Corey Paul, a franchise owner, testified that his employees did not get credit card tips, but they received cash tips as an added bonus to their hourly wage. Paul explained that employees were hired as non-tipped employees. Teri Owens, owner of Ladles Soups James Island, stated the credit card tips went into the business to pay employees a higher pay rate and the cash tips were kept by the employees.
Chappell filed a motion for an extension of time to serve the summons and complaint on June 13, 2018, when he was unable to effect service on all parties. The Mount Pleasant Respondents filed their answer to the complaint on June 20, 2018. The Franchising Respondents filed an answer on August 1, 2018. The Charleston Respondents filed six separate answers on July 18 and 26, 2018.
On July 24, 2018, the Charleston Respondents filed a motion to disallow class certification and a motion to dismiss improper parties pursuant to Rule 12(b)(6) of the South Carolina Rules of Civil Procedure. The circuit court held a hearing on the Charleston Respondents' motions to disallow class certification and to dismiss, and the court denied the motions on January 29, 2019, by form orders. In denying the motions, the court stated, "the Plaintiff[], despite filing the present action as a 'class action,' never moved . . . to certify the class." Respondents also filed motions for summary judgment.[5] On September 11, 2019, Chappell filed a motion for class certification.
By orders issued January 7, 2020, the court denied Chappell's motion for class certification by...
To continue reading
Request your trial