Summary
The South Carolina Supreme Court answered a certified question from the United States District Court for the District of South Carolina concerning whether the three-year statute of limitations in S.C. Code Ann. § 15-3-530 applies to promissory estoppel claims. The court held that the statute of limitations does not apply because promissory estoppel is an equitable claim, although the doctrine of laches may apply. The case involved an alleged promise to provide the plaintiff with a three-percent ownership interest in Lenco Marine.
Topics
Practice areas
Questions Presented
- Whether the three-year statute of limitations in S.C. Code Ann. § 15-3-530 applies to claims for promissory estoppel.
- Whether promissory estoppel is properly characterized as an equitable claim for purposes of applying the statute of limitations.
Holdings
- The three-year statute of limitations in S.C. Code Ann. § 15-3-530 does not apply to a claim for promissory estoppel.
- Promissory estoppel is an equitable claim, and equitable defenses such as laches, rather than the statute of limitations, govern the timeliness of the claim.
Key quotations
“We agree with Plaintiff that the statute of limitations is not applicable to a claim of promissory estoppel.”
“Promissory estoppel and contract are separate and distinct causes of action.”
“The claim—and the remedy—are still equitable because the recovery does not exist at law but is provided solely to avoid injustice in a court of equity.”
“As a result, equitable defenses such as laches, not the statute of limitations, apply.”
Factual background
Thomerson alleged that, as part of his compensation for employment at Lenco Marine, DeVito promised him a three-percent ownership interest. After Lenco planned to repurchase a minority shareholder's interest, the promised employee equity was not distributed, and DeVito repeatedly deferred or refused to discuss the matter. After Lenco was sold in December 2016, DeVito allegedly stated that he would not fulfill the promise, prompting Thomerson to sue in federal court in 2018.
Procedural history
Thomerson sued DeVito and Mullinax in federal district court over an allegedly unfulfilled promise of a three-percent ownership interest in Lenco Marine. The district court granted defendants summary judgment on all claims except promissory estoppel as time-barred under S.C. Code Ann. § 15-3-530, then certified the limitations question to the South Carolina Supreme Court under Rule 244, SCACR.
Remand instructions
The certified question was answered in the negative. The source does not state further remand instructions.