Crenshaw's TV v. Jocassee Partners

THIS OPINION HAS NO PRECEDENTIAL VALUE. IT SHOULD NOT BE
CITED OR RELIED ON AS PRECEDENT IN ANY PROCEEDING
EXCEPT AS PROVIDED BY RULE 268(d)(2), SCACR.

THE STATE OF SOUTH CAROLINA
In The Court of Appeals

Crenshaw's TV and Radio Service, Inc., d/b/a Crenshaw's
TV & Appliance, Respondent,

v.

Jocassee Partners Holdings, LLC Individually and d/b/a
The Jocassee Club and Bank of Travelers Rest,
Defendants,

Of whom Jocassee Partners Holdings, LLC Individually
and d/b/a The Jocassee Club is Appellant.

Appellate Case No. 2010-175307

Appeal From Oconee County
R. Lawton McIntosh, Circuit Court Judge

Unpublished Opinion No. 2012-UP-610
Heard October 3, 2012 – Filed November 14, 2012

REVERSED AND REMANDED

Violet Elizabeth Wright and T.S. Stern, Jr. of Covington
Patrick Hagins Stern & Lewis, P.A. of Greenville, for
Appellant.
James W. Logan of Logan Jolly & Smith, LLP of
Anderson, for Respondent.

PER CURIAM: Jocassee Partners Holdings, LLC (Jocassee) appeals the trial
court's grant of summary judgment to Crenshaw's TV and Radio (Crenshaw) on its
mechanic's lien foreclosure action and the award of costs and attorney's fees to
Crenshaw. We reverse and remand to the trial court for an award of reasonable
attorney's fees to Jocassee as the prevailing party.

Jocassee argued that the trial court erred in finding Crenshaw was the prevailing
party and in awarding Crenshaw attorney's fees under section 29-5-20 of the South
Carolina Code (2007) when Jocassee had previously tendered the full amount of
the mechanic's lien, the final half of which Crenshaw had refused before it
commenced foreclosure proceedings.

As a general rule, attorney's fees are not recoverable unless authorized by contract
or statute. Blumberg v. Nealco, Inc., 310 S.C. 492, 493, 427 S.E.2d 659, 660
(1993). Under the mechanic's lien statute, attorney's fees are awarded by the court
only if there is an action filed with the court. S.C. Code Ann. § 29-5-20 (A)
(2007). The court may award to the prevailing party

the costs of the action and a reasonable attorney's fee
which must be determined by the court in which the
action is brought but only if the party seeking to enforce
the lien prevails. If the party defending against the lien
prevails, the defending party must be awarded costs of
the action and a reasonable attorney's fee as determined
by the court.

Id. (emphasis added).

Our supreme court has defined a "prevailing party" as
"one who successfully prosecutes the action or
successfully defends against it, prevailing on the main
issue, even though not to the extent of the original
contention [and] is the one in whose favor the decision or
verdict is rendered and judgment entered."
EFCO Corp. v. Renaissance on Charleston Harbor, LLC, 370 S.C. 612, 618, 635
S.E.2d 922, 925 (Ct. App. 2006) (quoting Heath v. County of Aiken, 302 S.C. 178,
182-83, 394 S.E.2d 709, 711 (1990)).

"Clearly, the intent of the legislature in allowing the prevailing party in an action
brought under the mechanic's lien statute to recover attorney fees and costs stems
from a desire to deter both wrongful filing of liens and unjustified refusal to pay
debts subject to mechanic's liens." Cedar Creek Properties v. Cantelou Associates,
Inc., 320 S.C. 483, 486, 465 S.E.2d 774, 775 (Ct. App. 1995).

In this case the lien was properly filed, but Crenshaw did not accept payment of the
debt and refused to accept the second half of the payment for the mechanic's lien
after previously accepting the first half. At that point in time, Crenshaw was not
entitled to costs and fees. In defending the foreclosure action against the improper
addition of costs and fees, Jocassee should have been the prevailing party and
awarded attorney's fees. See § 29-5-20 (A) (stating the party defending against the
lien prevails, the defending party must be awarded costs of the action and a
reasonable attorney's fee as determined by the court).

REVERSED AND REMANDED.

HUFF, THOMAS, and GEATHERS, JJ., concur.