Thomas Daniels Agency, Inc. v. Nationwide Insurance Co. of America
Thomas Daniels Agency, Inc. v. Nationwide Insurance Co. of America
Opinion of the Court
Defendant RGL Forensic, Inc. (RGL) has filed a Motion for Judgment on the Pleadings. (Dkt. No. 21.) For the reasons set forth below, the Court GRANTS the motion with prejudice.
I. BACKGROUND
This case involves an insurance coverage dispute between Plaintiff Thomas Daniels Agency, Inc. and its insurer Defendant Nationwide Insurance Company of America (Nationwide). The facts are taken from Plaintiffs Amended Complaint and for purposes of this motion are presumed to be true. Nationwide insured Plaintiff under a policy covering a building and other property located in North Charleston, South Carolina. (Dkt. No. 16 ¶ 7.) On February 18, 2007, an automobile struck the North Charleston building, starting a fire that caused extensive damage to the building and other covered property. (Id. ¶ 8.) Plaintiff filed a claim
On September 8, 2008, an employee of RGL informed Plaintiff that Nationwide had hired RGL to calculate Plaintiffs.loss. (Id. ¶ 11.) On July 24, 2012, RGL requested “materials” from Plaintiff. (Id. ¶ 13.) In response, Plaintiff furnished “all documents ... in Plaintiffs possession.” (Id. ¶ 14.) Plaintiff, after not hearing from Nationwide or RGL, wrote Nationwide for an update on February 17, 2014. (Id. ¶ 15.) That same day, “Nationwide responded by forwarding an email from [RGL] askirig for many of the same things as requested previously, which Plaintiff explained were unavailable.” (Id.) Nationwide has since refused to fully indemnify Plaintiff for the various losses caused by the. fire on February 18, 2007. (Id. ¶ 16.)
On November 25, 2014, Plaintiff filed a civil action against Nationwide and RGL, alleging claims of breach of contract, bad faith, negligence, and fraud. (Dkt. No. 1-1 ¶¶ 16-60.) Plaintiff then filed an Amended Complaint on March 31, 2015. (Dkt. No. 16.) Plaintiff alleges that RGL was a “servant,. agent or employee” of Nationwide, acting within the “scope of said service, agency, or employment, ... thereby making Nationwide liable for the acts and/or omissions of [RGL] under the theory of respondeat superior.” (Id. at ¶ 5.) Plaintiff further alleges that Nationwide and RGL “induced Plaintiff to not take legal action by repeatedly assuring Plaintiff that the claim would be paid, or that more information was required before the claim would be paid----” (Id. ¶ 17.)
II. LEGAL STANDARD
“After the pleadings are closed— but early enough not to delay trial — a party may move for judgment on the pleadings.” Fed.R.Civ.P. 12(c). Rule 12(c) motions operate to “dispose of cases in which there is no substantive dispute that warrants the litigants and the court proceeding further.” Lewis v. Excel Mech., LLC, 2:13-CV-281-PMD, 2013 WL 4585873 at *1 (D.S.C. Aug. 28, 2013) (quoting 5 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure, § 1368 (3d ed. 2010)). A judgment on the pleadings is only warranted if “the moving party has clearly established that no material issue of fact remains to be resolved and the party is entitled to judgment as a matter of law.” Id. at *2 (quoting Park Univ. Enters. v. Am., Cas. Co., 442 F.3d 1239, 1244 (10th Cir. 2006)).
III. DISCUSSION
RGL argues that it is entitled to a judgment on the pleadings because Plaintiffs allegations against it fail , to establish a claim for negligence or fraud. (Dkt. No. 21-1 at 2-3.) Specifically, RGL contends that Plaintiffs negligence claim fails because “RGL owed no legal duty to Plaintiff.” (Id. at 3.) RGL further argues that Plaintiffs allegations fail to establish that RGL had a legal duty to disclose information to Plaintiff or that RGL made a false representation. (Id. at 13-16.) Plaintiff responds that its negligence claim properly rests on the theory of respondeat superior, and that it has adequately alleged sufficient facts to support the existence of its fraud claim. (Dkt. No. 24 at 2-3, 4-8.).
A. Negligence
In order to establish negligence under South Carolina law, a plaintiff must show: “(1) a duty of care owed by the defendant to the plaintiff; (2) a breach of that duty; and (3) damage proximately resulting from the breach of duty.” Charleston Dry Cleaners & Laundry, Inc. v. Zurich Am. Ins. Co., 355 S.C. 614, 586 S.E.2d 586, 588 (2003). “An affirmative legal duty to act exists only if created by statute, contract, relationship,' status, property interest, or some other special circumstance.” Id. (citing Carson v. Adgar, 326 S.C. 212, 486 S.E.2d 3, 5 (1997)). The South Carolina Supreme ‘ Court has adopted the majority rule that an “independent insurance adjuster or insurance adjusting company” owes no general duty of due care to the insured. Id. at 588-89.
Here, RGL is a forensic accounting and consulting firm that was independently hired by Nationwide to calculate Plaintiffs loss. (Dkt. Nos. 16 ¶ 3; 21-1 at 9.) Because RGL is an independent insurance adjusting company, the Court is compelled to find that it owes no general duty of care to Plaintiff, the insured. See Charleston Dry Cleaners & Laundry, Inc., 586 S.E.2d at 588-89. Further, Plaintiffs attempt to establish that RGL owed Plaintiff a legal duty under the theory of respondeat superior fails for the reasons given in the Court’s March 17, 2015 Order. (Dkt. No. 15 at 7.) Accordingly, Plaintiffs negligence claim fails as a matter of law.
B. Fraud
To properly plead fraud, Plaintiff must allege the following elements: (1) a representation; (2) its falsity; (3) its materiality; (4) either knowledge of its falsity or a reckless disregard of its truth or falsity; (5) intent .tliat the representation be acted upon; (6) the hearer’s ignorance of its falsity; (7) the hearer’s reliance on its truth; (8) the hearer’s right to rely thereon; and (9) the hearer’s consequent and proximate injury. Regions Bank v. Schmauch, 354 S.C. 648, 582 S.E.2d 432, 444-45 (S.C.Ct.App. 2003).
Plaintiff alleges both fraudulent concealment, “in that RGL kept silent of the fact it sought, additional information from Plaintiff until” Plaintiff asked Nationwide for an update on its case (Dkt; No. 16 ¶76), and fraudulent misrepresentation, based on RGL’s February 17, 2014 email to Nationwide that RGL required additional information from Plaintiff to calculate Plaintiffs loss (id. ¶ 71-74). Plaintiff alleges that RGL “had reason to know that its statement as to additional information was false-in that they had received a plethora of information from Plaintiffs counsel, including information necessary to make a determination as, to Plaintiffs loss.” (Id. ¶ 74.) .
As an initial matter, the Court finds that Plaintiff has not alleged facts giving rise to a 'fraudulent concealment claim. Plaintiff does' not allege that there was a fiduciary relationship between Plaintiff and RGL, or that-the parties entered into a contract or transaction. See Doe 2, 331 F.3d at 420. Rather, the Amended Complaint establishes that Nationwide hired RGL to calculate Plaintiffs loss, and that Plaintiff interacted directly with RGL on only three occasions. (Dkt. No. 16 ¶¶ 5; 11, 13, 14.) Although Plaintiffs brief indicates that Plaintiff believes the parties have a fiduciary relationship, Plaintiff has failed to offer any facts that would support such an assertion. (Dkt. No. 24 at 5.) Because Plaintiff has not alleged facts indicating that RGL had a duty to disclose information to Plaintiff, the Court finds that Plaintiff cannot establish a fraudulent concealment claim.
The Court, further finds that Plaintiffs allegations fail to give rise to a fraudulent misrepresentation claim. Notably, the Amended Complaint fails to identify a false representation made by RGL. See Armstrong v. Collins, 366 S.C. 204, 621 S.E.2d 368, 375-76 (S.C.Ct.App. 2005) (citing Brown v. Stewart, 348 S.C. 33, 557 S.E.2d 676, 680-81 (S.C.Ct.App. 2001)) (noting that fraudulent misrepresentation “requires the conveyance of a known falsity”). Plaintiff alleges that RGL represented in an email to Nationwide on February 17, 2014, that “the information that had previously been requested by RGL Forensics, but was unable to be provided by Plaintiff, remained outstanding.” (Dkt. No. 16 ¶ 70.) Plaintiff further alleges that this representation was false because RGL “had received substantial information from Plaintiffs counsel” in a letter sent by Plaintiff to RGL on March 13, 2013. (Id. ¶¶ 67, 72.) However, the referenced email and letter, do not support Plaintiffs allegations. In RGL’s February 17, 2014 email, RGL wrote that “[a]fter reviewing the file, the information received was limited. The following is a list of the information that was requested in our original document request letter and remains outstanding: ...” (Dkt. No. 16-5 at 1.)
IV. CONCLUSION
For the reasons stated herein, the Court finds that Plaintiffs allegations of fraud and negligence against RGL fail as a matter of law. Defendant’s Motion for Judgment on the Pleadings (Dkt. No. 21) is therefore GRANTED with prejudice.
IT IS SO ORDERED.
. Although Plaintiff does not provide the exact date that it filed a claim with Nationwide, Plaintiff alleges that it "timely reported the loss.” (Id. at, 22.).
Reference
- Full Case Name
- THOMAS DANIELS AGENCY, INC. v. NATIONWIDE INSURANCE COMPANY OF AMERICA, and RGL Forensics, Inc.
- Cited By
- 2 cases
- Status
- Published