Opinion ID: 1240570
Heading Depth: 1
Heading Rank: 5

Heading: issues of fact/full and fair opportunity for discovery

Text: Petitioners argue the Court of Appeals erred in finding there were genuine material issues of fact. Respondents, on the other hand, contend the Court of Appeals correctly found there were issues of fact precluding summary judgment. Moreover, respondents argue as an additional sustaining ground that the motion for summary judgment was premature because they were deprived of a full and fair opportunity to conduct discovery. The purpose of summary judgment is to expedite disposition of cases which do not require the services of a fact finder. George v. Fabri, 345 S.C. 440, 452, 548 S.E.2d 868, 874 (2001). In reviewing the grant of a summary judgment motion, the Court applies the same standard as the trial court under Rule 56(c), SCRCP: summary judgment is proper when `there is no genuine issue as to any material fact and ... the moving party is entitled to judgment as a matter of law.' Baughman v. American Tel. and Tel. Co., 306 S.C. 101, XXX-XX-XXX S.E.2d 537, 545 (1991). In determining whether summary judgment is appropriate, the evidence and its reasonable inferences must be viewed in the light most favorable to the nonmoving party. Id. at 115, 410 S.E.2d at 545. Summary judgment is a drastic remedy and must not be granted until the opposing party has had a full and fair opportunity to complete discovery. Id. at 112, 410 S.E.2d at 543. Nonetheless, the nonmoving party must demonstrate the likelihood that further discovery will uncover additional relevant evidence and that the party is not merely engaged in a `fishing expedition.' Id. at 112, 410 S.E.2d at 544. The Court of Appeals found numerous issues of fact. However, in doing so, the Court of Appeals relied heavily on Professor Freeman's opinions and likewise found the verified complaint should have been considered as an affidavit. Given our rulings above, the record before the trial court properly consisted of the pleadings, Fields' affidavit, and the accompanying exhibit book. Our review of the record before the trial court compels a finding that summary judgment was properly granted. See Humana Hosp.-Bayside v. Lightle, 305 S.C. 214, 216, 407 S.E.2d 637, 638 (1991) (Where a plaintiff relies solely upon the pleadings, files no counteraffidavits, and makes no factual showing in opposition to a motion for summary judgment, the lower court is required under Rule 56, to grant summary judgment, if, under the facts presented by the defendant, he was entitled to judgment as a matter of law.). The record unequivocally shows that Seaside had corporate debts, properly notified its shareholders of the intent to satisfy the debts through a stock issuance, and fairly offered stock to all the shareholders. There is simply no factual support for respondents' claims; instead, all the evidence before the trial court shows that the stock was issued in good faith and for a proper business purpose. See Roper v. Dynamique Concepts, Inc., 316 S.C. 131, 447 S.E.2d 218 (Ct.App.1994) (the issuance of additional shares of stock as a last ditch effort to raise capital for a financially troubled corporation was sufficient to overcome a claim of oppression because the shares had been issued in good faith). Although we are bound to review the record in a light most favorable to respondents, [a] court `cannot ignore facts unfavorable to that party and [it] must determine whether a verdict for the party opposing the motion would be reasonably possible under the facts.' Bloom v. Ravoira, 339 S.C. 417, 423, 529 S.E.2d 710, 713 (2000) (citation omitted). It is undisputed that Dawkins participated in meetings where these issues were discussed and received notice of the stock offerings. Likewise, the only logical inference from the record is that Chisholm either was on notice of the stock offerings, or by his own conduct, prevented himself from receiving the notice. As to the value of the stock and respondents' allegations that the stock was undervalued, we note the stock was issued at par value. In addition, respondents knew the value of the south side tract exceeded $1 million because, in the early 1990's, Seaside had received a $1.75 million offer for the land. We find the trial court appropriately ruled that respondents failed to present any specific facts establishing a genuine issue for trial. Respondents are not permitted to simply rest on the allegations in their complaint, especially where, as here, the majority of the factual allegations are conclusory in nature. See Rule 56(e), SCRCP (an adverse party may not rest upon the mere allegations or denials of his pleading, but his response, by affidavits or as otherwise provided in this rule, must set forth specific facts showing that there is a genuine issue for trial.). As to respondents' argument that summary judgment was premature because they did not have a full and fair opportunity for discovery, we hold that under the unusual circumstances of this case, the trial court appropriately granted summary judgment. See Middleborough Horiz. Property Regime Council of Co-Owners v. Montedison S.p.A., 320 S.C. 470, 479-80, 465 S.E.2d 765, 771 (Ct.App.1995) (affirming summary judgment where appellants advance[d] no good reason why four months was insufficient time under the facts of this case to develop documentation in opposition to the motion for summary judgment). Furthermore, we agree with the trial court that further discovery was unlikely to create any genuine issue of material fact. See Baughman, 306 S.C. at 112, 410 S.E.2d 537, S.E.2d at 544 (nonmoving party must demonstrate that further discovery will likely uncover additional relevant evidence); see also George v. Fabri, 345 S.C. at 452, 548 S.E.2d at 874 (purpose of summary judgment is to dispose of cases which do not require a fact finder).