Temple v. Tec-Fab, Inc.
| Decision Date | 09 March 2009 |
| Docket Number | No. 26610.,26610. |
| Citation | 675 S.E.2d 414 |
| Parties | Richard TEMPLE, Petitioner, v. TEC-FAB, INC., and Andrew Lytle, Respondents. |
| Court | South Carolina Supreme Court |
William Thomas Moody, of McKeown Law Firm, of York, for Petitioner.
J. Cameron Halford, of Halford & Niemiec Law Firm, of Ft. Mill, for Respondent.
We granted a writ of certiorari to review the Court of Appeals' opinion in Temple v. Tec-Fab, Inc., 370 S.C. 383, 635 S.E.2d 541 (Ct.App.2006). The issue on certiorari is whether the Court of Appeals erred in reversing an award of treble damages for a violation of the Payment of Wages Act. We affirm in part, reverse in part, and remand to the trial court.
Temple was employed at Tec-Fab, Inc., a metal fabrication company in York County, for a salary of $5000 per month. In December 2000, Temple purchased a 15% ownership interest in the company from Tec-Fab's president and sole shareholder, Richard Lytle. Temple became corporate vice-president and ran the company on a daily basis; his salary was increased to $6000 per month. Temple remained employed by Tec-Fab until February 2003, at which time he was fired by Lytle. The letter of termination advised Temple he would receive back pay upon receipt of money from Accutron, a Tec-Fab customer, in one month.
Temple filed a complaint in April 2003, alleging Tec-Fab failed to pay his monthly wages for the months of September, October, November, and half of December 2002, as well as February 2003, thereby owing him back wages. The complaint sought treble damages under the Payment of Wages Act. S.C.Code Ann. §§ 41-10-10 to -110 (1986 & Supp.2005).
Tec-Fab and Lytle answered and counterclaimed, alleging Temple 1) had failed to remit to it $15,000 in payments he had received from Accutron, 2) had failed to return a truck owned by Tec-Fab, and 3) had kept $5114 in proceeds from the sale of scrap metal which was owed to Tec-Fab. At trial, Temple admitted he had kept some of the proceeds from the sale of scrap metal, such that the master ruled Tec-Fab was entitled to a set-off of $5114 against the back-wages owed. Based on Lytle's testimony that he told Temple subsequent to his firing that he could keep the Tec-Fab truck if he assumed the liability on it (which was $20,568.30), the circuit court found there was no conversion of the vehicle nor any set-off required.
The trial court further ruled Temple was entitled to the gross amount of his back wages, totaling $27,500.00, which was then reduced by the $5114 scrap metal proceeds.1 The master's order goes on to state that the gross sum of $22,385.75 "will be trebled as required by statute, giving a total award of wages to Plaintiff of $67,157.25." (emphasis supplied). Temple was also awarded $7069.50 in costs and attorneys fees.
The Court of Appeals reversed the award of treble damages, finding the circuit court committed an error of law in concluding the statute mandated trebling. It further held, after a review of the record on appeal, that there was a bona fide dispute over the wages in question. It therefore modified Temple's award to $22,385.75 (Temple's gross unpaid wages less the $5,114.25 withheld in company proceeds).
The sole issue on certiorari is whether the Court of Appeals erred in reversing the award of treble damages to Temple?
In an action at law tried without a jury, an appellate court's scope of review extends merely to the correction of errors of law. The Court will not disturb the trial court's findings unless they are found to be without evidence that reasonably supports those findings. Townes Assocs., Ltd. v. City of Greenville, 266 S.C. 81, 86, 221 S.E.2d 773, 775 (1976).
The Court of Appeals held the circuit court's ruling was controlled by an error of law, inasmuch as the trial court held the statute required the imposition of treble damages. We agree.
S.C.Code Ann. § 41-10-80(c) states, "[i]n case of any failure to pay wages due to an employee as required by Section 41-10-40 or 41-10-50 the employee may recover in a civil action an amount equal to three times the full amount of the unpaid wages, plus costs and reasonable attorney's fees as the court may allow." The language of § 41-10-80(c) is discretionary and not mandatory. In Rice v. Multimedia, Inc., 318 S.C. 95, 98, 456 S.E.2d 381, 383 (1995), we held that "[t]he imposition of treble damages in those cases where there is a bona fide dispute would be unjust and harsh." The Court went on to note:
[T]here are some wage disputes when the issue may involve a valid close question of law or fact which should properly be decided by the...
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