Malloy gets judgment after four years

Hartsville attorney and State Sen. for Seat 29 Gerald Malloy finally got closure in an issue that began in August 2004.

On Monday, June 16, 2008, the South Carolina State Supreme Court ruled in Malloy’s favor in a counter suit he filed in 2004.

While a member of the Saleeby Law Firm in 2003, Malloy took a personal injury case for Jerry Bittle of Chesterfield, who was in the care of Annie B. Melton. Bittle was injured in a car accident and incurred many hospital bills.

Malloy and the insurance company for the at-fault vehicle agreed on a settlement based on the insurance coverage of the driver, but the settlement was for less than the bills incurred.

Malloy agreed to hold the settlement in his trust until the statute of limitations for Bittle’s hospital bills ended, which would have allowed Bittle and Melton to settle for the amount of the bills and be able to cover the bills more adequately.

The settlement check for $14,000 was deposited into Malloy’s trust account and accounted for at all times, Malloy said on Monday.

It was to remain there until the statute passed and Malloy could help Bittle and Melton get more from the settlement to help with the bills.

Melton contacted Cheraw attorney George Gregory, who was also a S.C. State Sen. at one time.

Gregory immediately filed action with the South Carolina Bar Association against Malloy citing unethical conduct and claiming that Malloy intended to keep the money and gather the interest accrued.

Malloy, however, immediately filed a counter suit citing Gregory’s lawsuit was frivolous and malicious. The lawsuit did come two months before a general election.

Malloy said he had agreed not to take a fee from Melton and Bittle because the level of insurance of the at-fault vehicle only had $15,000 in coverage.

Malloy said he wanted Bittle to receive as much as possible because he had continuing medical bills. “It was a case I kept with me when I left the Saleeby Law Firm,” Malloy said.

Malloy said Bittle and Melton wanted the check after the settlement, but law requires Medicaid be repaid for their services before Bittle and Melton received any compensation.

Malloy doesn’t know how Melton came in contact with Gregory. “[Melton] somehow got in contact with [Gregory] and they sent a letter to the insurance company and saw that the check had been deposited [in Malloy’s trust account.]”

Without researching the case, Gregory filed a disciplinary action and a lawsuit against Malloy.

“It just makes me sick to my stomach,” Malloy said. “It was just motivated by basic politics.” The disciplinary action may have resulted in Malloy losing his license to practice law. Malloy responded by acquiring legal representation to handle the suit. He filed a counter suit for his legal fees.

“Here’s the thing,” Malloy said of what he called a malicious lawsuit, “[politics] is difficult game, this political world, and I can take any kind of shot anyone wants to throw at me. But leave my family out of it.”

Gregory’s suit claimed Malloy converged some of the money into his own account. Gregory also immediately went to local newspapers and television stations after he filed the suit. Malloy believes that further demonstrates the malice intended.

On Monday, the South Carolina Supreme Court agreed with Malloy. They ruled in Malloy’s favor citing the South Carolina Frivolous Civil Proceedings Sanctions Act that provides for attorney fees and costs of frivolous suits, according to the decision released.

Malloy was awarded $27,364.31 in attorney fees and costs.

Malloy also said the disciplinary action Gregory filed with the S.C. Bar Association was dismissed with prejudice, meaning it cannot be brought before the committee again.
“Gregory is a former state senator,” Malloy said, “and an assistant of the solicitor’s office at one time. This is a poor thing to leave as part of his legacy.”

Malloy believes Gregory filed the lawsuit and disciplinary action in an attempt to slander Malloy’s name during a general election year. Malloy credits his wife with having the generosity to convince him not to file a disciplinary action against Gregory for the suit.

“Our reputation means more,” said Malloy. “What we’ve accomplished in this district means more. This is a time in our political system when the guy at the mill’s vote is the same as the executive’s vote. If you can’t find someone to represent them, what is it all for?”

Gregory also held the money in his trust account until the statute of limitations on the Medicaid bills ended as well, just as Malloy intended. However, when Gregory gave Melton and Bittle their check, he took out his fee.

At the time, Malloy told The Messenger he believed the lawsuit had no legal basis and that it was filed for politically motivated purposes. On Monday, June 16, the South Carolina State Supreme Court agreed.