Bouchelle Inc. v. Canopius US Insurance, Inc.

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

Bouchelle Incorporated, Appellant,

v.

Canopius US Insurance, Inc., Seneca Specialty Ins. Co.,
the Brinson Agency and John Brinson, Defendants,

Of Which the Brinson Agency and John Brinson are the
Respondents.

Appellate Case No. 2018-001353

Appeal From Charleston County
Jennifer B. McCoy, Circuit Court Judge

Unpublished Opinion No. 2019-UP-302
Submitted June 1, 2019 – Filed August 21, 2019

AFFIRMED

Karen Marie DeJong, of DeJong Law Firm, LLC, of
Mount Pleasant, for Appellant.

Andrew W. Countryman, of Countryman Law Firm, of
Mount Pleasant, for Respondents.
PER CURIAM: Appellant Bouchelle Incorporated, a general contractor, brought
this action against Canopius US Insurance, Inc., Seneca Specialty Ins. Co., and The
Brinson Agency and John Brinson (collectively, Brinson) for breach of contract, a
declaratory judgment, and attorney's fees after Canopius, Bouchelle's insurer, and
Seneca both refused to pay a claim for damage allegedly caused by a subcontractor
that was hired by Bouchelle and insured by Seneca. In separate orders, the circuit
court dismissed each of the defendants. Bouchelle appeals only the grant of
summary judgment to Brinson. We affirm.1

1. Bouchelle correctly points out the appealed order resulted from a second
summary judgment motion that Brinson filed and was issued by a different circuit
judge than the one who denied Brinson's first summary judgment motion. Based
on these circumstances, Bouchelle argues Brinson should not now be able to
"benefit from a different judge." Because nothing in the record before this court
indicates Bouchelle raised this concern when the circuit court considered Brinson's
second motion, we decline to address it on appeal. See Wilder Corp. v. Wilke, 330
S.C. 71, 76, 497 S.E.2d 731, 733 (1998) ("It is axiomatic that an issue cannot be
raised for the first time on appeal, but must have raised to and ruled upon by the
[circuit court] to be preserved for appellate review."); Bonaparte v. Floyd, 291 S.C.
427, 444, 354 S.E.2d 40, 50 (Ct. App. 1987) (stating the appellant "had the burden
of furnishing a sufficient record for this [c]ourt's review").

2. As to the circuit court's finding that there was no contract between Bouchelle
and Brinson, we affirm pursuant to Rule 220(b), SCACR, and the following
authorities: Pitts v. Jackson Nat'l Life Ins. Co., 352 S.C. 319, 336, 574 S.E.2d 502,
510 (Ct. App. 2002) (noting the supreme court "has held there is no relationship of
trust and confidence between an applicant and an insurance agent" (citing Gordon
v. Fidelity Cas. Co. of N.Y., 238 S.C. 438, 451, 120 S.E.2d 509, 515 (1961)));
Trotter v. State Farm Mut. Auto. Ins. Co., 297 S.C. 465, 471, 377 S.E.2d 343, 347
(Ct. App. 1988) ("Generally, an insurer and its agents owe no duty to advise an
insured."); id. at 472, 377 S.E.2d at 347 ("A request for 'full coverage,' 'the best
policy,' or similar expressions does not place an insurance agent under a duty to
determine the insured's full insurance needs, to advise the insured about coverage,
or to use his discretion and expertise to determine what coverage the insured
should purchase.").

3. We further affirm the circuit court's finding that Bouchelle's breach of contract
claim against Brinson must fail because even if Brinson acted without authority

1
We decide this case without oral argument pursuant to Rule 215, SCACR.
when it renewed, on Bouchelle's behalf, an insurance policy that allegedly
provided insufficient coverage, Bouchelle had the means to discover its coverage
was inadequate and to request additional coverage before the incident giving rise to
this litigation took place. See Gordon, 238 S.C. at 451, 120 S.E.2d at 515-16
(holding when an insured has "ample opportunity to examine the insurance policy
in question" yet fails to do so, this failure "negates [a] cause of action for fraud and
deceit" arising from allegations of insufficient coverage); Doub v.
Weathersby-Breeland Ins. Agency, 268 S.C. 319, 326, 233 S.E.2d 111, 114 (1977)
("One entering into a contract should read it and avail himself of every reasonable
opportunity to understand its contents and meaning."). Furthermore, even if
Bouchelle was correct that Brinson made itself a party to the insurance contract
between Bouchelle and Canopius by acting on Bouchelle's behalf without
authorization, the only obligations that would have been enforceable against
Brinson would have been those Bouchelle would have owed to Canopius under the
terms of the policy. See Skinner & Ruddock, Inc. v. London Guarantee & Accident
Co., 239 S.C. 614, 619, 124 S.E.2d 178, 180 (1962) (noting an agent may be held
liable on a contract made by the agent "in the name of his principal without
authority [when] the principal is not liable," but "recovery could not be had against
both the principal . . . and the agent").

4. Finally, we affirm the dismissal of Bouchelle's claim for attorney's fees against
Brinson. The claim was based on section 38-59-40 of the South Carolina Code
(2015), which authorizes a trial court to award reasonable attorney's fees when an
insurer has been sued by its insured for refusal to pay a claim and the court has
found "that the refusal was without reasonable cause or in bad faith." Brinson, as
an insurance agent rather than an insurer, cannot be found liable for attorney's fees
under this statute.

AFFIRMED.

LOCKEMY, C.J., and SHORT and MCDONALD, JJ., concur.