McCullough v. Goodrich & Pennington Mortgage Fund, Inc.

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 Advanta Mortgage Corp., USA (“Advanta”), in which Advanta agreed to service G & P mortgages. 1 Under a series of separate agreements, G & P was entitled to payments from…