Tort/Negligence – Negligent Misrepresentation – Labor & Employment – Wrongful Termination

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Hand v. SunTrust Bank, Inc. (Lawyers Weekly No. 002-153-12, 8 pp.) (J. Michelle Childs, J.) 6:11-cv-00501; D.S.C.

Holding: Plaintiff was fired from her job as assistant branch manager for servicing the business account of a company for which she performed part-time work. Plaintiff alleges her supervisors at the defendant-bank engaged in negligent misrepresentation when they directed her to service the account. However, plaintiff had worked for the bank for 28 years and was serving in a management capacity at the time of her termination. She was privy to the relevant company policies and could have referred to them to determine whether her actions were in compliance. She cannot now claim that her reliance on her supervisors’ statements was reasonable or justified in light of company policies prohibiting such transactions.

Defendant’s motion to dismiss is granted.

Although there is no authority addressing the issue under S.C. law, several other jurisdictions have barred negligent misrepresentation claims in the employer-employee context. However, the court need not go so far as to find that negligent misrepresentation claims are so restricted under S.C. law.

A review of the complaint reveals that plaintiff actually seeks redress for an alleged wrongful termination, albeit categorized as a negligent misrepresentation claim. Generally, absent express contractual obligations, an S.C. employer may discharge an employee without incurring liability for good reason, no reason, or bad reason. Allowing plaintiff to proceed on a claim for negligent misrepresentation under the facts pled in her complaint would nullify South Carolina’s employment at-will doctrine.