Opinion ID: 1665643
Heading Depth: 1
Heading Rank: 7

Heading: whether the summary judgments for scansteel, h & m investors, and for roger lynn huncilman and j. william manning, sr. and their companies were improper

Text: Appellants contend that summary judgments were improperly granted to appellees, Roger Lynn Huncilman and J. William Manning, Sr., and their respective companies, Bert R. Huncilman & Son, Inc., Manning Equipment, Inc., and Manning Truck Modification, Inc. Appellants maintain evidence reveals that these appellees aided, abetted, and conspired with Scanlan to breach his fiduciary duty to Steelvest by assisting in planning, organizing, and financing the formation of the new enterprise Scansteel. One who knowingly aids, abets, or joins a fiduciary in the breach of his duty in order to make a profit becomes jointly liable with the fiduciary for such profits. See, e.g., Jackson v. Smith, supra , and Lappas v. Barker, supra . It is recognized that a party who, without privilege, aids or assists an agent to violate a duty to his principal is subject to tort liability to the principal. In such a general situation there are two possible theories of liability, one being that one who knowingly and for his own end, and without justification, aids and abets or procures another to break a contract may be held liable to the other party to the contract for such damage as may accrue on the basis of the interference with the legal rights of another. The other theory being that the agent's breach of duty to his principal is a tort as well as a breach of contract and the one procuring, aiding or abetting such breach is a joint tort feasor. See, Lowndes Products, Inc. v. Brower, 259 S.C. 322, 191 S.E.2d 761 (1972). It can be inferred that both Huncilman's corporation and Manning's corporations are, in a sense, their alter egos and are the instrumentalities through which these parties profited, all to the detriment of the appellants, and the benefits which accrued to the individuals now take on the form of corporate assets. The record reflects that Huncilman's and Manning's support and assistance were crucial to the successful efforts of Scanlan to form Scansteel. Huncilman and Manning were contracted by Scanlan on several occasions as he secured investors for the new company. They were the chief executive officers of customers of Steel Suppliers and Steelvest. In fact, the Huncilman company was the largest customer of Steel Suppliers. Huncilman, Manning and Scanlan formed a partnership, H & M Investors, and purchased the building, real estate, and equipment for their new company, Scansteel. The evidence demonstrates that both Huncilman and Manning met Scanlan on many occasions while he was still employed with Steelvest in order to discuss the formation of Scansteel. Huncilman and Manning also made a substantial loan to Scansteel during its formation period as well as obtaining an equity investment in the company. Finally, there is a question as to whether First National Bank would have ever financed the formation of Scansteel without the involvement and guaranteed support of Huncilman and Manning and their respective companies. Were a jury to decide Scanlan had breached his fiduciary duty to appellants, it may also decide whether Huncilman and Manning are liable for aiding and abetting the breach and summary judgments were improper.