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JONES v. CITY OF FOLLY BEACH

2/18/1997

Jerry A. Jones (Jones) filed suit against the City of Folly Beach, its mayor and police chief (collectively referred to as Folly Beach), alleging causes of action for conspiracy, defamation and violation of the whistleblower statute. The trial court granted Folly Beach's motion for summary judgment on the basis of collateral estoppel. Jones also sued Ben Peeples (Peeples) for defamation, and the trial court granted his motion for summary judgment based on the expiration of the statute of limitations. Jones appeals both rulings. We affirm the disposition of the cause of action against Peeples based on the statute of limitations, but reverse the trial court's determination collateral estoppel bars the remaining causes of action against Folly Beach, Linville and Tittle.


FACTS


Jones began working as a public safety officer for the Folly Beach Public Safety Department (Department) in January 1990. The factual basis of Jones's complaint arises from two incidents which occurred while he was employed with the Department. These are summarized in a light most favorable to Jones as follows.


Teachey/Reed Incident


Jones was on patrol in August 1990 when he and another officer discovered a vehicle parked on a sand dune in violation of the city ordinance. The officers then discovered two nude swimmers (Teachey and Reed). The officers arrested Teachey and Reed for indecent exposure and illegal parking. Afterward, Chief Steve Shephard (Shephard) told Jones he had acted appropriately and no formal complaint had been filed. However, in October 1990 Jones learned that Teachey and Reed had filed a formal complaint, and had complained to the mayor. The mayor was highly upset and instituted an investigation into the incident. This ultimately led Shephard
Shephard/Linville Incident


In May 1991, Jones was on duty when the Department conducted a
Eventually, Jones was passed over as police chief and demoted to lieutenant when a new one was hired. Jones then quit, claiming he was harassed, demoted, discriminated against, and constructively discharged as a result of these two incidents.


Jones filed suit in the United States District Court for the District of South Carolina, asserting a § 1983 cause of action for a violation of his First Amendment right to freedom of speech. He also pled related state claims for constructive discharge in violation of the whistleblower statute, conspiracy and defamation, asking the federal court to assume supplemental jurisdiction. The same two incidents formed the factual
Jones's counsel apparently assumed until trial that the federal court would take jurisdiction of the state court claims. When asked on the morning of trial, however, the court declined to do so. The court cautioned counsel to limit opening argument and the introduction of evidence to those matters pertinent to the constitutional claim. The trial then proceeded with opening statements, after which Jones gave his testimony concerning both incidents and the resulting damages to him.


Unhappy with the direction of the trial, Jones's attorneys requested a voluntary dismissal without prejudice as to the constitutional claim following the lunch break. Folly Beach opposed the motion, and the trial court refused to grant a dismissal without prejudice. Adamant about not proceeding further with the trial, however, Jones's attorneys decided to take a voluntary dismissal with prejudice as to his federal claim. The federal court then entered orders consistent with its ruling, dismissing the § 1983 action with prejudice, and the state claims without prejudice.


Based on the same incidents, Jones subsequently filed this action in

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