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S.C. Court of Appeals Unpublished Case Summaries


Where the appellant argues the trial court erred in denying its motions for directed verdict and JNOV because it owed no duty of care to a printing company which put forth no evidence demonstrating the appellant’s negligent misrepresentation proximately caused the printing company’s business failure, we affirm since the appellant possessed special knowledge — the bleachery’s actual monthly utility costs for the preceding year — that the printing company could not obtain elsewhere; thus, the appellant had a duty to exercise reasonable care when it provided the printing company the utility chart.

Affirmed.

Background

Springs Industries, Inc. appeals a jury verdict for a printing company. Springs argues the trial court erred in denying its motions for directed verdict and JNOV because Springs owed no duty of care to the printing company and the printing company put forth no evidence demonstrating Springs’ negligent misrepresentation proximately caused the printing company’s business failure.

Discussion

Here, after Duke Power refused to provide information (citing privacy concerns) to the printing company regarding Springs’ monthly utility costs for the bleachery, the printing company turned to Springs for this information — information critical to the printing company’s decision to proceed with the purchase of the bleachery. With a clear understanding of the importance of this information to the printing company, Springs provided the printing company with a chart of the bleachery’s monthly utility costs for the preceding year, including the critical months of July and August 1998. This utility chart contained materially false information.

Springs had a pecuniary interest not only in selling the bleachery to the printing company, but also in leasing-back portions of the bleachery after the sale (and after the printing company agreed to pay for the Bleachery’s utility costs). Springs possessed special knowledge — the bleachery’s actual monthly utility costs…

Source : accessmylibrary.com



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