Wells Fargo Bank, N.A. v. Fallon Props. S.C., LLC
Wells Fargo Bank, N.A. v. Fallon Props. S.C., LLC
Opinion
**213 We granted a writ of certiorari to review the Court of Appeals' decision in this case, which raises the novel issue of whether an email that provides written notice of entry of an order or judgment triggers the time for serving a notice of appeal for purposes of Rule 203(b)(1) of the South Carolina Appellate Court Rules ("SCACR"). As will be discussed, we hold that such an email, if sent from the court, an attorney of record, or a party, triggers the time to serve a notice of appeal. Because the email giving rise to this appeal was from a master-in-equity's administrative assistant and provided written notice of the entry of an order, we find the email triggered the time to appeal. Since the notice of appeal was not served until thirty-one days after the parties received the email, we agree with the Court of Appeals that the service of the notice of appeal was untimely. However, given the novelty of the issue, the frequency in which the issue is likely to arise, and the inconsistent case law interpreting Rule 203, SCACR, fairness dictates that our ruling on this issue be applied prospectively. Accordingly, we affirm as modified and remand **214 to the Court of Appeals to allow the appeal to proceed on its merits.
I. Factual and Procedural History
On December 15, 2014, the master filed an order denying Fallon Properties South Carolina, LLC, Timothy R. Fallon, and Susan C. Fallon's ("Petitioners") petition for an order of appraisal. That same day, the master's administrative assistant emailed a signed and stamped copy of the order and Form 4 to both Petitioners and Wells Fargo Bank ("Respondent"). The email provided: "Please see attached copy of signed and clocked Form 4 and Order. I have also mailed a copy to all listed on the Form 4." Three days later, Petitioners received a copy of both documents in the mail.
Believing the time to appeal commenced on the day they received the copy of the order and Form 4 in the mail, Petitioners served their notice of appeal on January 15, 2015, which was thirty-one days after they received the email and twenty-eight days after they received the documents in the mail. Respondent subsequently filed a motion to dismiss, arguing the email triggered the time to appeal; therefore, Petitioners' notice of appeal was untimely served. The Court of Appeals agreed with Respondent and dismissed the appeal.
II. Discussion
Petitioners argue the Court of Appeals erred in determining the email triggered the time to serve their notice of appeal. We disagree.
Rule 203(b)(1), SCACR sets forth the procedures for appealing a decision of the court of common pleas and, by way of Rule 203(b)(4), SCACR, 1 a decision of a master-in-equity. This rule provides, in pertinent part: "A notice of appeal shall be served on all respondents within thirty (30) days after re ceipt of written notice of entry of the order or judgment *858 ." Rule 203(b)(1), SCACR (emphasis added). Thus, the time to serve the notice of appeal from a master's decision begins on the day **215 the party receives written notice that an order or judgment has been entered.
To be clear, Petitioners do not dispute that the email constituted written notice of entry of the order or judgment. Rather, Petitioners take issue with the manner in which they received written notice. Petitioners contend the time to serve a notice of appeal is only triggered at the time the parties receive written notice of the entry of an order or judgment by mail or hand delivery . As a result, Petitioners posit the time to serve their notice of appeal did not commence until the day they received the copy of the order and Form 4 in the mail.
In support of their position, Petitioners erroneously rely on Rule 5 of the South Carolina Rules of Civil Procedure ("SCRCP"), which requires, inter alia , all written notices be served by mail or hand delivery. However, because we are concerned with an appellate procedure, that is, the service of a notice of appeal, the South Carolina Appellate Court Rules control; therefore, the South Carolina Rules of Civil Procedure are inapplicable to the outcome of this case. See Rule 101(a), SCACR (mandating that the appellate court rules govern the practice and procedure in appeals before the Supreme Court or Court of Appeals); Rule 73, SCRCP (providing the procedure on appeal to the South Carolina Supreme Court or the South Carolina Court of Appeals must be in accordance with the appellate court rules); Rule 81, SCRCP (limiting the application of the rules of civil procedure to trial courts of civil jurisdiction as well as to magistrate's courts, probate courts, and family courts to the extent they are not inconsistent with the statutes and rules governing those courts). Accordingly, we will proceed to address the issue before us under the relevant appellate court rules.
Rule 203(b)(1), SCACR requires
the notice of appeal
be served within thirty days after receiving written notice of entry of the order or judgment. When determining whether the service of the notice of appeal is timely, which is the issue before us in this case, we look to the date the parties received written notice of entry of an order of judgment. Unlike the notice of appeal, there is no requirement that
the written notice of entry of an order or judgment
be served upon the parties. All that is required to trigger the time to appeal is
**216
that the parties
receive
such notice. Moreover, there is nothing in our appellate court rules suggesting that the manner in which a party may receive notice is limited to the methods used to effectuate service, that is, by mail or hand delivery. Thus, in determining the email did trigger the time to appeal, we find the Court of Appeals properly relied on
Canal Insurance Company v. Caldwell
,
In
Canal
, the trial court granted summary judgment in favor of the respondent on March 17, 1997.
Canal
,
In concluding it did not have subject matter jurisdiction over the case, the Court of Appeals determined: "[e]ven if [appellants'] counsel did not in fact receive the trial court's original form order,
there is no question that he received written notice of entry of the judgment
...
on July 8, 1997
," which was the day opposing counsel sent the fax.
Id
. at 5,
Similarly, we hold an email providing written notice of entry of an order or judgment for purposes of Rule 203(b)(1), SCACR triggers the time to appeal as long as the email is received from the court, an attorney of record, or a party . Here, it is undisputed the email Petitioners received came from the master's administrative assistant and provided written notice of the entry of the order. Consequently, we find Petitioners' receipt of the email triggered the time to appeal. Although Petitioners also received written notice by mail three days after receiving the email, the time to serve the notice of appeal commenced at the time the parties first received written notice of entry of the order. Accordingly, we find the Court of Appeals correctly determined the time to appeal was triggered on the day the parties received the email; therefore, the notice of appeal served thirty-one days thereafter was untimely.
Nevertheless, fairness dictates that our holding on this issue be applied prospectively given the novelty of the issue, the frequency in which the issue is likely to arise, and the inconsistency in the case law interpreting Rule 203, SCACR, which creates confusion as to whether receipt of electronic correspondence is sufficient to trigger the time to appeal. Specifically, we take issue with the Court of Appeals' decision in
White v. South Carolina Department of Health and Environmental Control
,
By way of background, unlike this case and Canal , White concerned, inter alia , the timeliness of a notice of appeal from a decision of the Administrative Law Court ("ALC"). Because the appeal arose out of the ALC, Rule 203(b)(6), SCACR controlled, not Rule 203(b)(1), SCACR. Rule 203(b)(6) provides: "When a statute allows a decision of the administrative law court ... to be appealed directly to the Supreme Court or the Court of Appeals, the notice of appeal shall be served on **218 ... the administrative law court ... and all parties of record within thirty (30) days after receipt of the decision ." Rule 203(b)(6), SCACR (emphasis added). Therefore, when determining whether the service of a notice of appeal from the ALC is timely, the court is concerned with the date the party actually receives the decision, not the date the party receives written notice that an order or judgment has been entered.
The ALC order that gave rise to the appeal in
White
was entered on January 28, 2009.
White
,
The Court of Appeals agreed, finding "receipt of the decision" requires service and "there is nothing in the current applicable rules that authorizes service of a decision of the ALC by electronic mail."
White
,
The Court of Appeals was correct in acknowledging that Rule 203(b)(1) and Rule 203(b)(6) necessitate the receipt of different things in order to trigger the time to appeal. As discussed, Rule 203(b)(1) only requires the party receive written notice that an order or judgment has been entered, whereas Rule 203(b)(6) requires the party receive a copy of **219 the decision in order to trigger the time to appeal. However, simply because the rules require the receipt of different things does not necessarily mean the manner in which a party receives those things must differ in order to trigger the time to appeal. 3
In effect, the Court of Appeals interpreted the term "receipt" under Rule 203(b)(1) broadly, permitting the receipt of written notice of entry of an order or judgment by various methods, including fax, email, mail, or hand delivery. However, the court interpreted the term "receipt" under Rule 203(b)(6) narrowly, permitting the receipt of a decision only in a manner used to effectuate service, that is, by mail or hand delivery. In addition to being inconsistent, the court's interpretation of the term "receipt" in White is unsupported by the controlling appellate court rules. As discussed, "receipt" under Rule 203, SCACR is not synonymous with the requirements of service. Therefore, we overrule the court's decision in White to the extent it holds otherwise and interprets "receipt of the decision" to require receipt of the decision by mail or hand delivery in order to trigger the time to appeal under Rule 203(b)(6), SCACR.
III. Conclusion
In conclusion, we hold an email sent from the court, an attorney of record, or a party that provides written notice of entry of an order or judgment triggers the time for serving a notice of appeal for purposes of Rule 203(b)(1), SCACR. For the reasons stated, our holding shall be applied prospectively and Petitioners' appeal is remanded to the Court of Appeals to proceed on its merits. 4 Accordingly, the Court of Appeals' decision dismissing the appeal as untimely is
AFFIRMED AS MODIFIED.
KITTREDGE, J., and Acting Justices James E. Moore and Howard P. King, concur. Acting Justice William P. Keesley, concurring in part and dissenting in part in a separate opinion.
ACTING JUSTICE KEESLEY:
**220 I respectfully concur in part and dissent in part. I agree with much of the majority's well-reasoned decision. In particular, I believe the majority correctly found the thirty-day period in which to file and serve the notice of appeal began upon the receipt of the emailed copy of the ruling from the master's administrative assistant. See Rule 203(b)(1), SCACR ("A notice of appeal shall be served on all respondents within thirty (30) days after receipt of written notice of entry of the order or judgment ." (emphasis added) ). 5 Likewise, I agree with the majority that Rule 5 of the South Carolina Rules of Civil Procedure is not controlling in an appellate *861 proceeding. See Rule 101(a), SCACR ; Rule 73, SCRCP ; Rule 81, SCRCP.
However, I part ways from the majority's argument, compelling and compassionate though it is, that we should only apply this "new" rule prospectively. South Carolina follows a bright-line rule: the timely service of the notice of appeal is a jurisdictional requirement, without which appellate courts lack the authority to hear and decide cases.
See, e.g.
,
Elam v. S.C. Dep't of Transp.
,
The notice of appeal in a case appealed from the Court of Common Pleas must be served on all respondents within thirty days after receipt of written notice of entry of the order or judgment. Rule 203(b)(1), SCACR. The requirement of service of the notice of appeal is jurisdictional, i.e. , if a party misses the deadline, the appellate court lacks jurisdiction to consider the appeal and has no authority or discretion to "rescue" the delinquent party by extending or **221 ignoring the deadline for service of the notice . Mears v. Mears ,287 S.C. 168 ,337 S.E.2d 206 (1985).
I concede our current precedent creates some confusion as to what type of written notice triggers the thirty-day window for filing a notice of appeal under Rule 203(b). As the majority correctly notes, current case law permits a facsimile from opposing counsel to trigger the thirty-day window under **222 Rule 203(b)(1), SCACR, 6 but prohibits an email from counsel from triggering the window under Rule 203(b)(6), SCACR. 7
Nonetheless, even were I to agree with the majority that the court of appeals erred in portions of its ruling in White related to triggering the window in appeals from administrative law courts, I respectfully fail to see how that would give rise to an exception allowing this appeal to proceed. I simply cannot reconcile the majority's decision to apply its ruling prospectively with the extensive body of law holding that appellate courts are not permitted to rescue a litigant from an untimely notice of appeal. Accordingly, I would affirm the dismissal by the court of appeals.
See Rule 203(b)(4), SCACR ("The notice of appeal from an order or judgment issued by a master or special referee shall be served in the same manner as provided by Rule 203(b)(1).").
In this case, the Court of Appeals determined White did not apply because White concerned a different appellate court rule than the one at issue in this case.
Nevertheless, we recognize that there may be some forms of communication used to receive written notice for purposes of Rule 203(b)(1) that could not practically be used to receive a decision for purposes of Rule 203(b)(6) due to technological limitations.
It appears that the dissent fails to consider, or give much weight to, the fact electronic written notification was not contemplated by Rule 203(b), SCACR when it was promulgated by this Court in 1990. Email did not come into widespread use until the mid-nineties. The Court of Appeals' attempt to overlay Rule 203, SCACR to modern practice has resulted in justifiable confusion to the Bench and Bar. Rule 263(b), SCACR notwithstanding, the Supreme Court is the final arbiter of South Carolina law. The Court's jurisdiction and authority emanates from the South Carolina Constitution not from rules promulgated by the Court.
Petitioners concede electronic communications such as email satisfy the written-notice requirement of Rule 203(b)(1).
Canal Ins. Co. v. Caldwell
,
White v. S.C. Dep't of Health & Envtl. Control
,
Reference
- Full Case Name
- WELLS FARGO BANK, N.A., Successor-By-Merger to Wachovia Bank, N.A., Respondent, v. FALLON PROPERTIES SOUTH CAROLINA, LLC, Timothy R. Fallon, Susan C. Fallon, Fallon Luminous Products Corporation, GE Business Capital Corporation, Formerly Transamerica Business Capital Corporation, and FSD Repurchase Solutions, LLC, and South Carolina Department of Revenue, Defendants, of Whom Fallon Properties South Carolina, LLC, Timothy R. Fallon and Susan C. Fallon Are the Petitioners.
- Cited By
- 5 cases
- Status
- Published