Phillip W. White v. J.M. Brown Amusement Co., Inc., 360 S.C. 366

Summary

The Supreme Court of South Carolina held that a contract for placing video poker machines became void and unenforceable when operation of those machines became illegal under local referenda and required licenses were revoked. The subsequent declaration that the local option law was unconstitutional did not revive the contract. The court reversed the court of appeals and remanded for summary judgment in favor of White on Brown's breach of contract counterclaim.

Holdings

1. When a contract is originally legal but performance becomes illegal because of a change in law, the parties' subsequent duties to perform are discharged, and courts will not enforce the contract or require performance that violates public policy.
2. A contract that became void and unenforceable when its subject matter became illegal is not revived by a later judicial determination that the law causing the illegality was unconstitutional.
3. Summary judgment in favor of White was proper because neither party breached the contract after the parties' duties were discharged by the illegality of the contract's subject matter.

Questions Presented

1. Whether the contract for placement of video poker machines became void and unenforceable when operation of the machines became illegal under the local option law and the required licenses were revoked.
2. Whether the later judicial invalidation of the local option law revived the contract.
3. Whether summary judgment was proper on Brown's breach-of-contract counterclaims.

Disposition

reversed_and_remanded