Schein v. Lamar, 0365
| Decision Date | 20 September 1984 |
| Docket Number | No. 0365,0365 |
| Citation | 325 S.E.2d 573,284 S.C. 252 |
| Parties | Sadie G. SCHEIN, individually and on behalf of all other Capital Note Holders of American Bank & Trust, Respondents, v. Howard H. LAMAR, Jr., H. Ciremba Amick, Augustus T. Allen, Douglas R. Bryant, Sr., Robert B. Fickling, Dr. James H. Gressette by his guardian ad litem Mary S. Gressette, Jack G. Vallentine, Marshall B. Williams, J.W. Wall, Jr., Albert E. Odom, William H. Grier, Luther H. Adden, Jr., Forrest K. Abbott, and Watt E. Smith, II, Appellants. . Heard |
| Court | South Carolina Court of Appeals |
John Algar and J. Randolph Pelzer of Pelzer & Chard, North Charleston, Douglas McKay, Jr., of McKay & McKay, Henry Hammer of Hammer & Bernstein, Jeter E. Rhodes, Jr., of Whaley, McCutchen & Blanton, Donald W. Tyler, Columbia, and Terry E. Richardson, Jr., of Blatt & Fales, Barnwell, for appellants.
Isadore E. Lourie of Lourie, Curlee, Swerling & Popowski and Randall M. Chastain, Columbia, for respondents.
This action arises from the sale of certain capital notes of the American Bank & Trust Company (the Bank). Sadie Schein alleges she is the purchaser and holder of one of the notes. She seeks to bring a class action against the directors of the Bank (the Directors), for common law fraud, violation of the South Carolina Securities Act, negligence, and mismanagement, all of which she alleges caused her and other capital note holders similarly situated to suffer the loss of the value of their notes when the Bank became insolvent.
The case comes to us in a procedurally complicated posture. We recite only those facts relevant to our disposition of this appeal.
Schein commenced the action by a summons and complaint dated March 21, 1975, served on the several Directors at various times. On February 23, 1979, the circuit court granted Schein's motions for leave to file an amended complaint (the First Amended Complaint) and to certify the action as a class action. The Directors appealed that order. In Schein v. Lamar, 274 S.C. 329, 263 S.E.2d 383 (1980), the Supreme Court held that the order certifying the class action was interlocutory and nonappealable. The Court affirmed the order permitting amendment of the complaint on grounds not material to this appeal.
In March 1979 the several Directors filed demurrers, all identical in substance, to the First Amended Complaint. The demurrers challenged the sufficiency of the class action allegations of the First Amended Complaint as well as the sufficiency of its allegations of negligence, mismanagement, and fraud. On April 21, 1980, Schein moved to file a second amended complaint (the Second Amended Complaint).
The circuit court heard argument on the demurrers and the motion to file the Second Amended Complaint on May 1, 1980. The demurrers and the motion to amend were taken under advisement. On November 25, 1980, the circuit court issued an order sustaining in part the demurrers to the First Amended Complaint and overruling them in part. The November 25th order (the First Order) reserved decision on the motion to file the Second Amended Complaint until additional briefs had been submitted by the parties.
The Directors filed a notice of appeal from the First Order. On motion of Schein, the Supreme Court directed the appeal be held in abeyance until the circuit court had disposed of all remaining issues pending before it.
On March 26, 1982, the circuit court granted Schein's motion to file the Second Amended Complaint. An additional order correcting a clerical...
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