Fountain v. First Reliance Bank
Annotate this CasePetitioner Mark Fountain brought this action for defamation based on a statement by Thomas C. Ewart, chief banking officer for Respondent First Reliance Bank, as to why the bank would not make a loan on a business venture between Fountain and Ernest Pennell. With at least some of Fountain's financial background known to Pennell, Fountain and Pennell approached First Reliance to request funds after two other lending institutions denied their loan requests. At this point in time, Ewart called Pennell in for a meeting to discuss the matter. Fountain was not present. At that meeting, Ewart stated that First Reliance would not be making the loan if Fountain was involved in the business. Pennell subsequently relayed Ewart's statement to Fountain, and told him to "tear up" the agreement between the two of them. Fountain later requested Pennell to meet him at his lawyer's office, where Pennell repeated the statement in front of Fountain's attorney. Fountain filed a complaint against First Reliance, Ewart, and Pennell for defamation and intentional infliction of emotional distress. All three defendants filed motions for summary judgment. The circuit court granted the motions, finding the statement was not defamatory, the publication of the statement was privileged, and no intentional infliction of emotional distress claim was established. Fountain appeals only the grant of summary judgment in favor of First Reliance and Ewart on his defamation claim. Upon review, the Supreme Court concluded Ewart's statement was not defamatory, and even if it was, a qualified privilege existed in this case. As there was no evidence that this privilege was abused by Respondents, summary judgment was proper.
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