MCCULLOUGH v. GOODRICH & PENNINGTON

No. 26303.

373 S.C. 43 (2007)

644 S.E.2d 43

Ralph C. McCULLOUGH, as Plan Trustee for the Estates of HomeGold, Inc., HomeGold Financial, Inc., and Carolina Investors, Inc., Plaintiff, v. GOODRICH & PENNINGTON MORTGAGE FUND, INC., Advanta Mortgage Corp., USA, and Chase Home Finance, LLC, Defendants.

Supreme Court of South Carolina.

Decided April 9, 2007.


Attorney(s) appearing for the Case

Richard G. Gleissner and William R. Padget, both of Finkel Law Firm, of Columbia, for Plaintiff.

Frank Langston Eppes and Jason James Andrighetti, both of Eppes and Plumblee, of Greenville, for Defendant Goodrich & Pennington.

Suzanne Taylor G. Grigg, of Nexsen Pruet, of Columbia, and Laura E. Krabill and Timothy E. Stauss, both of Wolf, Block, Schorr and Solis-Cohen, LLP, of Philadelphia, PA, for Defendant Advanta Mortgage Corp. USA.

C. Mitchell Brown, of Nelson Mullins Riley and Scarborough, of Columbia, William Stevens Brown, of Nelson Mullins Riley & Scarborough, of Greenville, and Gregory T. Parks, Jami Wintz McKeon, and John C. Goodchild, III, all of Morgan, Lewis and Bockius, LLP, of Philadelphia, PA, for Defendant Chase Home Finance, LLC.


Chief Justice TOAL.

This certified question asks whether South Carolina recognizes a secured creditor's right to bring a claim against a third party for causing a reduction in the value of the secured party's collateral. After giving the question full consideration, we answer "no."

FACTUAL/PROCEDURAL BACKGROUND

Beginning 1997, Goodrich & Pennington Mortgage Fund, Inc. ("G & P"), an originator of mortgage loans, entered into an agreement with...

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