Supreme Court of South Carolina

White Oak Manor, Inc. and White Oak Manor-York, Inc. v. Lexington Insurance Company, Caronia Corporation, And…

January 15, 2014407 S.C. 1

Summary

The South Carolina Supreme Court held that the service‑of‑suit clause in an insurance policy is valid and not preempted by S.C. Code §15‑9‑270, allowing parties to agree to alternative methods of service. It also affirmed the circuit court’s discretion in refusing to set aside the default judgment. The Court reversed the Court of Appeals and reinstated the lower court’s judgment, while Justice Pleicones dissented, arguing the statutory method is exclusive.

Holding

  • Did the Court of Appeals err in holding that service on an insurance company can only be accomplished by compliance with §15‑9‑270?. Section 15‑9‑270 does not provide the exclusive method of service on an insurance company; parties may contract for alternative service methods consistent with the policy.
  • Did the circuit court err in failing to set aside the entry of default?. The circuit court did not abuse its discretion; it properly found substantial compliance with the service‑of‑suit clause and that Lexington failed to show good cause under Rule 55(c).

Docket Appellate Case No. 2011-201666; No. 27351

Cited authorities

  • S.C. Code Ann. § 38-3-110

Cited by

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