Samuel v. Schumacher Homes of S.C.
Decision Date | 23 March 2022 |
Docket Number | Appellate 2019-001972,2022-UP-148 |
Court | South Carolina Court of Appeals |
Parties | Everett Samuel, Jr., Respondent, v. Schumacher Homes of South Carolina, Heather McCarley, and Dave Boldman, Appellants. |
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.
Submitted March 17, 2022
Appeal From Darlington County Roger E. Henderson, Circuit Court Judge
Kenneth Michael Barfield and John William Fletcher, both of Barnwell Whaley Patterson & Helms, LLC, of Charleston for Appellants.
Vincent Austin Sheheen and Gregory Brian Collins, both of Savage Royall & Sheheen, of Camden, for Respondent.
Schumacher Homes of South Carolina, Heather McCarley, and Dave Boldman (collectively, Appellants) appeal the circuit court's denial of their motion to dismiss Everett Samuel, Jr.'s action against them and compel arbitration. We affirm pursuant to Rule 220(b), SCACR.
1. We hold the issue of waiver of arbitration through litigation is one for the court to decide rather than arbitrators. We find Appellants' reliance on BG Group, PLC v. Republic of Argentina is misplaced because the waiver defenses the Supreme Court held were for arbitrators to decide did not include waiver of arbitration through litigation. See BG Grp., PLC v. Republic of Argentina, 572 U.S. 25, 35 (2014) ( ); Glass v. Kidder Peabody & Co. 114 F.3d 446, 455 n.62 (4th Cir. 1997) ( ); 9 U.S.C.A. § 3 (West) (the courts should stay an action which involves "any issue referable to arbitration under an agreement in writing for such arbitration" until arbitration is completed, "providing the applicant for the stay is not in default in proceeding with such arbitration" (emphasis added)) ; Glass, 114 F.3d at 455 n.62 ) ). In addition, we hold the delegation provision, which stated the arbitrators would "determine all issues regarding the arbitrability of the dispute" did not provide "'clear and unmistakable' evidence" that the parties intended to delegate the issue of waiver to the arbitrators. See Doe v. TCSC, LLC, 430 S.C. 602, 608, 846 S.E.2d 874, 877 (Ct. App. 2020) ().
2. We hold the circuit court correctly ruled Samuel met his burden of establishing Appellants waived their right to arbitration because Appellants took advantage of the judicial system causing prejudice to Samuel. See Rhodes v. Benson Chrysler- Plymouth, Inc., 374 S.C. 122, 125-26, 647 S.E.2d 249, 250-51 (Ct. App. 2007) ("[D]etermining whether a party waived its right to arbitrate is a legal conclusion subject to de novo review; nevertheless, the circuit factual findings underlying that conclusion will not be overruled if there is any evidence reasonably supporting them." ; Johnson v. Heritage Healthcare of Estill, LLC, 416 S.C. 508, 513, 788 S.E.2d 216, 218 (2016) . The case was pending for over two years and was eligible for trial according to the parties' consent scheduling order before Appellants moved to compel arbitration, and the parties engaged in mediation and significant discovery, including multiple depositions, upon which Samuel expended time and expense. See Rhodes, 374 S.C. at 126, 647 S.E.2d at 251 (...
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