PAIGE J. GOSSETT, Magistrate Judge.
The plaintiff, Richard Livingston, a self-represented litigant, filed this diversity action pursuant to 28 U.S.C. § 1332 raising state law claims of promissory estoppel, breach of fiduciary duty, and intentional infliction of emotional distress against Defendant. (ECF No. 1.) The Complaint has been filed pursuant to 28 U.S.C. § 1915. (ECF Nos. 3 & 18.) Defendant filed an answer and raised counterclaims of conversion and breach of fiduciary duty against the plaintiff. (ECF No. 28.) This matter is before the court pursuant to 28 U.S.C. § 636(b) and Local Civil Rule 73.02(B)(2) (D.S.C.) for a Report and Recommendation on Defendant's motion for summary judgment. (ECF No. 45.) Pursuant to
The following facts are either undisputed, or are taken in the light most favorable to Plaintiff, to the extent they find support in the record. Plaintiff Richard Livingston is the son of Phyllis Elaine Busby Livingston, who died on December 3, 2013. (Compl., ECF No. 1-1 at 1, 5.) At the time of her death, Phyllis Livingston was married to Defendant Robert Sackett, who is Plaintiff's stepfather. (
Prior to his mother's death, Plaintiff owned rental property in Michigan. (Compl., ECF No. 1 at 6.) At some point, the rental property went into foreclosure when Plaintiff filed for bankruptcy, and the lender set a redemption price for the rental property of $178,115. (Compl., ECF No. 1-1 at 2.) Central to Plaintiff's claims in this matter is the allegation that his mother promised Plaintiff she would purchase his rental property from foreclosure for his benefit.
Plaintiff further alleges that he relied on his mother's promise to redeem the rental property from foreclosure when he invested approximately $20,000 to improve the property while he was still in possession of it. (
Phyllis Livingston died in December 2013 without having purchased Plaintiff's rental property. (
Phyllis Livingston owned stocks in her former employer that were managed by Computershare, Inc. (Def.'s Mot. Summ. J., Exs. 4a & 4b, ECF Nos. 45-5 & 45-6.) Before Defendant was appointed as the personal representative of Phyllis Livingston's estate, Plaintiff submitted documents to Computershare to have the stocks liquidated and the proceeds distributed to Plaintiff's account at Huntington National Bank. (
Plaintiff also filed a Petition for Removal of the Personal Representative in the Lexington County Probate Court in the matter of the estate of Phyllis Livingston, but the Lexington County Probate Court denied the petition by order dated July 22, 2015, finding Plaintiff did not offer any evidence that Defendant mismanaged the estate. (Def.'s Mot. Summ. J., Ex. 10, ECF No. 45-12.)
As noted above, Plaintiff filed this action against Defendant personally, and as the personal representative of the estate of Phyllis Livingston, asserting state law claims of promissory estoppel, breach of fiduciary duty, and intentional infliction of emotional distress. Defendant answered and asserted counterclaims for conversion and breach of fiduciary duty.
In his motion, Defendant challenges both the sufficiency of the Plaintiff's pleading and his proof. A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) examines the legal sufficiency of the facts alleged on the face of the complaint.
At the proof stage, summary judgment is appropriate only if the moving party "shows that there is no genuine dispute as to any material fact and the [moving party] is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). A party may support or refute that a material fact is not disputed by "citing to particular parts of materials in the record" or by "showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact." Fed. R. Civ. P. 56(c)(1). Rule 56 mandates entry of summary judgment "against a party who fails to make a showing sufficient to establish the existence of an element essential to that party's case."
In deciding whether there is a genuine issue of material fact, the evidence of the non-moving party is to be believed and all justifiable inferences must be drawn in favor of the non-moving party.
The moving party has the burden of proving that summary judgment is appropriate. Once the moving party makes this showing, however, the opposing party may not rest upon mere allegations or denials, but rather must, by affidavits or other means permitted by the Rule, set forth specific facts showing that there is a genuine issue for trial.
Defendant argues Plaintiff's promissory estoppel claim fails due to Plaintiff's failure and inability to offer any evidence demonstrating that Phyllis Livingston intended to purchase Plaintiff's Michigan rental property for Plaintiff's benefit. Under South Carolina law, promissory estoppel requires the plaintiff to prove: (1) an unambiguous promise by the promisor; (2) reasonable reliance on the promise by the promisee; (3) reliance by the promisee was expected by and foreseeable to the promisor; and (4) injury caused to the promisee by his reasonable reliance.
"Unlike a contract which requires a meeting of the minds and consideration, promissory estoppel looks at a promise, its subsequent effect on the promisee, and in certain cases bars the promisor from making an inconsistent disposition of the property."
In the case at hand, Plaintiff fails to forecast any admissible evidence that would support his allegation that Phyllis Livingston promised to purchase his Michigan rental property for his benefit.
Challenging the sufficiency of Plaintiff's pleading, Defendant argues Plaintiff fails to allege any particular instances of wrongful conduct that amounts to a breach of his fiduciary duty. He also argues, attacking the sufficiency of Plaintiff's proof, that, even assuming Plaintiff properly pled that a duty was breached, Plaintiff fails to point to any evidence to prove such an allegation.
"To establish a claim for breach of fiduciary duty, the plaintiff must prove (1) the existence of a fiduciary duty, (2) a breach of that duty owed to the plaintiff by the defendant, and (3) damages proximately resulting from the wrongful conduct of the defendant."
S.C. Code Ann. § 62-3-703(a).
Here, Plaintiff alleges Defendant neglected his duties as personal representative to settle the decedent's estate expeditiously for the purpose of denying Plaintiff his rights as a beneficiary. (Compl., ECF No. 1-1 at 9.) Plaintiff claims he was damaged financially by Defendant's neglect because a portion of the estate belonging to Plaintiff could have been used to finalize the purchase of Plaintiff's rental property. (
The court agrees that Plaintiff has failed to allege facts that would plausibly show Defendant breached his fiduciary duty to Plaintiff. Plaintiff's bald assertions that Defendant "neglected his duties" or "used the settlement process in bad faith" are wholly unsupported by specific facts that would plausibly suggest the assertions are true. Thus, Plaintiff's conclusory allegations as to his breach of fiduciary duty claim fail to even meet the minimum pleading standards.
Defendant argues Plaintiff is unable to prove the elements of his intentional infliction of emotional distress claim. Specifically, Defendant argues Plaintiff failed to plead that Defendant acted intentionally or recklessly, failed to demonstrate that Defendant failed to perform certain duties, and failed to produce evidence that Plaintiff suffered emotional distress as a result of Defendant's conduct. (Def.'s Mem. Supp. Mot. Summ. J. at 11, ECF No. 45-1 at 11.)
To state a claim for intentional infliction of emotional distress under South Carolina law, a plaintiff must show:
Here, Plaintiff alleges Defendant caused the bank to abandon the purchase agreement with Plaintiff by neglecting his duties as the personal representative of the estate and reporting Plaintiff's acquisition of Phyllis Livingston's stock shares to Michigan law enforcement. (Compl., ECF No. 1-1 at 10.) Plaintiff alleges this caused him anxiety, sleeplessness, and high blood pressure resulting from the collateral consequences of his inability to redeem his rental property—homelessness, loss of income, lack of transportation, and damage to his professional development and career. (
The court finds Plaintiff has failed to forecast any evidence that would support his claim that Defendant intended to inflict severe emotional distress, that Defendant's conduct was extreme and outrageous, or that Plaintiff suffered severe emotional distress caused by Defendant. As discussed below, Plaintiff has not identified any evidence that Defendant has neglected or mismanaged the estate, nor has Plaintiff presented any evidence that Defendant managed the estate with the intention of harming Plaintiff. As to Defendant's alleged reporting of Plaintiff to Michigan law enforcement, the court finds such conduct does not meet the requisite standard for the tort of intentional infliction of emotional distress under South Carolina law, especially considering the fact that Plaintiff admitted the stock shares he liquidated and had transferred to his bank account were property of the estate, of which Defendant had a duty protect as the personal representative. (Def.'s Mot. Summ. J., Ex. 7, ECF No. 45-9 at 1.) Finally, while Plaintiff alleges he suffered anxiety, sleeplessness, and high blood pressure as a result of Defendant's conduct, he has failed to point to any evidence that could establish that Defendant's conduct was the proximate cause of his purported injuries. Accordingly, the court finds Plaintiff's claim for intentional infliction of emotional distress fails.
Defendant argues Plaintiff is liable to Phyllis Livingston's estate for conversion because Plaintiff has not yet paid back to the estate all of the proceeds from the liquidated stock shares that Plaintiff had transferred to his bank account. Specifically, Defendant alleges that while Plaintiff received $73,991.82 in proceeds from Phyllis's liquidated stocks, the estate received only $59,280.36 from Huntington National Bank pursuant to the probate court's order to deposit the proceeds of the stocks into the trust account of the attorney representing the estate. Accordingly, Defendant argues, Plaintiff must have used $14,711.46 of the proceeds before Huntington National Bank put a "hold" on his account pursuant to Defendant's claim that the proceeds were assets of the estate.
Under South Carolina law, conversion is "the unauthorized assumption in the exercise of the right of ownership over goods or personal chattels belonging to another to the exclusion of the owner's rights."
The undisputed record in this case shows Plaintiff represented to Computershare, the company that held Phyllis Livingston's stock shares, that he was the rightful owner of the stock shares following his mother's death. (Def.'s Mot. Summ. J., Ex. 4a, ECF No. 45-5 at 2.) Plaintiff accomplished this by executing an irrevocable stock power that was endorsed with a Medallion Signature guarantee stamp endorsement from Huntington National Bank, where Plaintiff had a personal account. (
At a probate court hearing on June 22, 2015, Plaintiff admitted that all of the proceeds of the liquidated stocks were assets of Phyllis Livingston's estate. (Def.'s Mot. Summ. J., Ex. 7, ECF No. 45-9.) Thus, the probate court ordered that all of the proceeds from the stock transfer that were being held in Plaintiff's account at Huntington National Bank at that time, which totaled $59,280.36, be transferred to the trust account of the attorney representing the estate. (
Plaintiff does not dispute that he liquidated the stock shares and used some of those proceeds for his own personal use. (Pl.'s Resp., ECF No. 74 at 12.) He argues that at the time, his sister was closing another account of the decedent and it was agreed within the family that Plaintiff would receive $17,500 from that account. (
Initially, the court notes Plaintiff fails to present any evidence that would support his assertion that an agreement existed that Plaintiff would receive $17,500 from one of his mother's accounts that was being closed out by his sister. Nor does he identify the account. But even if that were true, it would not entitle Plaintiff to take money that was an asset of the estate and convert it to his own personal use. Plaintiff's right to any money from the estate will be determined by the probate court.
Defendant argues he is entitled to summary judgment on his claim that Plaintiff breached his fiduciary duty to the estate when he converted the stock share proceeds to his own personal use. The court disagrees.
As explained previously, to establish a claim for breach of fiduciary duty, a party must prove the existence of a fiduciary duty, a breach of that duty owed to the plaintiff by the defendant, and damages proximately resulting from the wrongful conduct of the defendant.
For all of the foregoing reasons, the court recommends Defendant's motion for summary judgment be granted in his favor as to Plaintiff's claims; granted as to Defendant's counterclaim for conversion, and denied as to Defendant's counterclaim for breach of fiduciary duty.
The parties are advised that they may file specific written objections to this Report and Recommendation with the District Judge. Objections must specifically identify the portions of the Report and Recommendation to which objections are made and the basis for such objections. "[I]n the absence of a timely filed objection, a district court need not conduct a de novo review, but instead must `only satisfy itself that there is no clear error on the face of the record in order to accept the recommendation.'"
Specific written objections must be filed within fourteen (14) days of the date of service of this Report and Recommendation. 28 U.S.C. § 636(b)(1); Fed. R. Civ. P. 72(b);
S.C. Code Ann. § 19-11-20. "The rule prohibits any interested person from testifying concerning conversations or transactions with the decedent if the testimony could affect his or her interest. The rule is founded on the principle that it is against public policy to allow a witness thus interested to testify as to such matters when such testimony, if untrue, cannot be contradicted."