Opinion ID: 1302950
Heading Depth: 2
Heading Rank: 2

Heading: whether the trial judge erred in granting ssi summary judgment as to cox's liability on ssi's constructive trust claim

Text: SSI asserted a cause of action against Cox for constructive trust. Cox contends that the trial judge erred in granting SSI summary judgment as to his liability on this issue because SSI failed to show any inequity to SSI by his retention of funds received in excess of the residual value of the vehicles. He argues that even though he kept the surplus amounts received, his actions actually benefited SSI in that he successfully stopped SSI's losses. We disagree. A constructive trust arises entirely by operation of law without reference to any actual or supposed intentions of creating a trust. Whitmire v. Adams , 273 S.C. 453, 257 S.E. (2d) 160 (1979). A constructive trust arises whenever a party has obtained money which does not equitably belong to him and which he cannot in good conscience retain or withhold from another who is beneficially entitled to it as where money has been paid by accident, mistake of fact, or fraud, or has been acquired through a breach of trust or the violation of a fiduciary duty. Wolfe v. Wolfe , 215 S.C. 530, 56 S.E. (2d) 343 (1949). In order to establish a constructive trust, the evidence must be clear and convincing. Briggs v. Richardson , 288 S.C. 537, 343 S.E. (2d) 653 (Ct. App. 1986). A confidential or fiduciary relationship exists when one reposes special confidence in another so that the latter, in equity and good conscience, is bound to act in good faith and with due regard to the interests of the one reposing the confidence. Island Car Wash, Inc. v. Norris , 292 S.C. 595, 358 S.E. (2d) 150 (Ct. App. 1987). We find that a constructive trust is appropriate in this case and SSI is entitled to summary judgment in its favor as to Cox's liability under this cause of action. Cox was an employee of SSI at the time he began the disposal of SSI's leased vehicles. Cox was employed as SSI's fleet manager from 1983 through 1987 and as SSI's director of transportation from October of 1987 through April of 1988. He was in a position of trust and responsibility with SSI. Cox admitted that when he sold the leased vehicles, he retained part of the funds that he received from the sale of the individual vehicles. Cox never told the management of SSI that while handling the sale of the leased vehicles, he would make a personal profit on each transaction. No one at SSI was aware that Cox was retaining profits from the vehicles sold. The profits Cox retained from the sale of the vehicles were acquired through a breach of trust and fiduciary duty. Although Cox argues in his brief that he had an arrangement with SSI which permitted him to retain these funds, there is nothing in the record to support this assertion. Cox retained funds which did not equitably belong to him and which in good conscience, he should not have retained.