M.B. Kahn Construction Co. v. Three Rivers Bank & Trust Co.
M.B. Kahn Construction Co. v. Three Rivers Bank & Trust Co.
Opinion of the Court
We granted a writ of certiorari to review the Court of Appeals’ unpublished opinion affirming dismissal of this action. We reverse.
FACTS
Petitioner M.B. Kahn Construction Company (Contractor) appeals the dismissal of its causes of action against respondent Three Rivers Bank & Trust Company (Bank) for lack of personal jurisdiction.
In 1999, Owner defaulted, giving rise to foreclosure actions and litigation involving various lienholders.
Bank moved to dismiss contending it had no contact with South Carolina other than the note and mortgage agreement with Owner and the related foreclosure action. In response, Contractor submitted the affidavit of its project director, William P. Edmonds. Edmonds stated that he dealt regularly with Bob McKain, an employee of Management Engineering Corporation, who was Bank’s inspecting engineer at the project site in Spartanburg. The loan agreement between Owner and Bank provides the inspecting engineer was to perform services on behalf of Bank. Edmonds stated it was McKain who approved Contractor’s pay requests and processed them for payment. Contractor relied on McKain’s assurance of payment in continuing to work on the project. In addition, Edmonds’s affidavit references “Contractor’s Consents” executed by Contractor in South Carolina and Owner’s assignment to Bank of the construction contract performed in South Carolina.
Bank in return submitted the affidavits of its vice-president, Vincent W. Locher, who stated McKain was not Bank’s agent but was “an independent third-party inspecting engineer,” and McKain who stated he served as “an independent third party contractor” in inspecting the site.
ISSUE
Is long-arm jurisdiction proper under S.C.Code Ann. § 36-2-803 (2003)?
DISCUSSION
Section 36-2-803 provides:
(1) A court may exercise personal jurisdiction over a person who acts directly or by an agent as to a cause of action arising from the person’s
(a) transacting any business in this State;
(2) When jurisdiction over a person is based solely upon this section, only a cause of action arising from acts enumerated in this section may be asserted against him....
(emphasis added). Contractor’s causes of action allege McKain was acting as Bank’s agent transacting business on Bank’s behalf in South Carolina.
At the pre-trial stage, only a prima facie showing is required to support jurisdiction. Mid-State Distribs., Inc. v. Century Importers, Inc., 310 S.C. 330, 426 S.E.2d 777 (1993). On a motion to dismiss for lack of personal jurisdiction, factual disputes arising by affidavit will be resolved in favor of the non-moving party. Brown v. Investment Management and Research, Inc., 323 S.C. 395, 475 S.E.2d 754 (1996). Where the non-moving party submits facts sufficient to make a prima facie showing of an agency relationship supporting long-arm jurisdiction under § 36-2-803, the motion to dismiss should be denied. Id.
Edmonds’s affidavit and the loan agreement are sufficient here to make a prima facie showing that McKain was acting as Bank’s agent when he gave false assurances of payment. Bank’s contrary assertions do not defeat this showing. The fact that someone is employed as an independent
We hold the trial court erred in dismissing Contractor’s causes of action for lack of personal jurisdiction. Accordingly, the opinion of the Court of Appeals is
REVERSED.
. We need not address the procedural complexities of that litigation in light of our disposition here.
Reference
- Full Case Name
- M.B. KAHN CONSTRUCTION COMPANY, INC. v. THREE RIVERS BANK & TRUST COMPANY, RSI Properties/Spartanburg, LLC RSI, Inc., Orchard Place East at Spartanburg, Inc. Bailey Heating & Controls, Inc. Wellington Power Charleston Fire & Safety, Inc. TI Associates, Inc. and Lewis Nursery & Farm, Inc., of whom Three Rivers Bank & Trust Company is
- Cited By
- 1 case
- Status
- Published