Professional Documents
Culture Documents
)
COUNTY OF HORRY ) C/A NO. 2019-CP-26-____
)
Bryan Braddock, as Personal )
Representative of the Estate of Peggy ) COMPLAINT
Jo Rabon and Rabon & Rabon, Inc., ) (Jury Trial Demanded)
MB Boardwalk Entertainment, LLC; )
and Rabon & Rabon, Inc., ) 1. Conspiracy
) 2. Aiding and Abetting Breach of
Plaintiff, ) Fiduciary Duty
) 3. Breach of Fiduciary Duty
vs. ) 4. Professional Negligence
) 5. Negligent Supervision
David Hicks, Esq.; MACDONALD & ) 6. Breach of Contract
HICKS, P.A.; Lane D. Jefferies, Esq.; )
Henrietta U. Golding, Esq., MCNAIR )
LAW FIRM, P.A., n/k/a BURR & FORMAN, )
LLP, )
Defendants. )
Rabon, Rabon & Rabon, Inc., and MB Boardwalk Entertainment, LLC complaining of
Defendants, David Hicks, Esq.; MACDONALD & HICKS, P.A.; Lane D. Jefferies, Esq.;
Henrietta U. Golding, Esq.; and MCNAIR LAW FIRM would respectfully show the Court as
follows:
1. In 2014, Peggy Jo Rabon hired Henrietta Golding to represent herself and her
company, Rabon & Rabon, Inc., with regard to disputes arising with her daughter, Ms.
Mitchell, and her son-in-law, Mr. Mitchell. Over the course of the next four years, the
defendant attorneys destroyed not only the financial legacy of Peggy Jo Rabon, but the
design. Rather than meet the stated goal of Jack Rabon, the client, by attempting to
preserve the assets and reconcile the family, the Defendant lawyers unilaterally waged a
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war of inflammation and destruction against the assets of both family companies (Rabon
& Rabon, Inc. and MB Boardwalk Entertainment, LLC) and the children of Peggy Jo
Rabon. The intentional actions of the Lawyers were for a singular purpose: to fleece the
remaining assets of the Rabon Legacy for the financial benefit of the lawyers. Along the
way, David Hicks and his law firm assisted in destroying the family and insuring that the
most important asset of the family, MB Boardwalk Entertainment, LLC, remain insolvent.
PARTIES
2. Defendant, David C. Hicks, Esq. (“Mr. Hicks”) is, upon information and belief, a
citizen and resident of Horry County, South Carolina, and is a lawyer licensed to practice
3. Defendant, MACDONALD & HICKS, P.A. (“Hicks Firm”) is, upon information and belief,
a professional association organized and existing under the laws of the State of South
4. Defendant, Lane D. Jefferies, Esq. (“Mr. Jefferies”) is, upon information and belief,
a citizen and resident of Horry County, South Carolina, and is a lawyer licensed to practice
5. Defendant, Henrietta U. Golding, Esq. (“Ms. Golding”) is, upon information and
belief, a citizen and resident of Horry County, South Carolina, and is a lawyer licensed to
6. Defendant, MCNAIR LAW FIRM, P.A., n/k/a BURR & FORMAN, LLP (“McNair”), is a law
firm organized as a South Carolina professional association and has offices in Horry
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7. McNair is still listed in the South Carolina Secretary of State’s Website as an active
corporation in good standing. Burr & Forman, LLP is a limited liability partnership
incorporated in Alabama. Burr & Forman, LLP, is either a mere continuation of McNair,
or at least as to these Plaintiffs; or Burr & Forman, LLP, agreed to assume the liabilities
of Burr & Formal, LLP; or the representations provided to these Plaintiffs support a finding
of consolidation or merger of McNair and Burr & Forman, LLP. For simplicity’s sake and
to the extent necessary, references in this Complaint to “McNair” are intended to include
8. Plaintiff, Bryan Braddock, Esq., is a citizen and resident of Florence County, South
Carolina; a licensed South Carolina lawyer; and was appointed as successor Personal
Representative of the Estate of Peggy Jo Rabon by Order of the Horry County Probate
Court executed by the Honorable Carroll D. Padgett, Jr., on October 16, 2018, through
the initial probate case and number: Estate of Peggy Jo Rabon, 2014-ES-26-01933
(“Estate Case”).
company organized and existing under the laws of the State of South Carolina, owning
10. Plaintiff, RABON & RABON, INC. (“Rabon”), is a South Carolina Corporation with its
JURISDICTION
11. The Circuit Court has jurisdiction over these matters based upon Article V of the
South Carolina Constitution, S.C. CODE ANN. §§ 36-2-802 and 36-2-803 (1976), § 62-1-
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302 (1976, Supp. 2018), and its plenary powers.
VENUE
12. Venue is proper in Horry County, as it is, upon information and belief, the county
of residence of Mr. Hicks, Mr. Jefferies, and Ms. Golding. Horry County was the principal
place of business for Mr. Hicks, Mr. Jefferies, and Ms. Golding at the time the causes of
action asserted in this Complaint arose, and a substantial portion of the facts, actions and
FACTS
13. Prior to the incompetent legal work performed by the Defendant lawyers, the
Rabon family owned 11 prime properties in in Myrtle Beach. A substantial part of the
interests of those properties should have been included in the estate. By the end of the
respective representations complained of herein, the Rabon family, the corporation and
the estate had lost tremendously valuable business opportunities, all 11 properties, and
14. In addition to the loss of all 11 properties and the deficiency judgement in excess
of $550,000.00, the Rabon family paid Ms. Golding and Mr. Jefferies well over
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e. Ms. Mitchell’s husband, Kyle Mitchell (“Mr. Mitchell”) (collectively “the
Family”).
16. Through business entities, the Family owned several pieces of property in Horry
County. The business entities changed names over time, with the following two entities
being used by the Family to hold title to various pieces of property during times discussed
a. RABON & RABON, Inc., d/b/a SEA PALMS MOTEL (“R&R”); and
17. For all intents and purposes, property and assets of R&R and MB BOARDWALK
were used for the benefit of each business and the direct benefit of the Family with no
separation of the properties between each entity or management of the entities. The
members of each entity owed fiduciary duties to one another through each entity. On the
key properties were four hotels that had been operated and managed successfully and
profitably by Ms. Mitchell and Mr. Mitchell for over twenty-five years.
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Owning Entity Lot and Block RMS Common name
R&R Lot 1, Blk 15 181-11-04-005 Sea Palms #4
19. With the goal of building a sustainable and profitable miniature golf business, the
20. To that end, Ms. Mitchell and Mr. Mitchell contacted Riddick Skinner, a banker
with W EST TOWN SAVINGS BANK n/k/a W EST TOWN BANK & TRUST (“W EST TOWN”), to finance
21. Mr. Skinner advised using a USDA loan and using Mr. Hicks as the lawyer to
22. By the time Mr. Hicks became involved with Ms. Mitchell, Mr. Mitchell, Jack Rabon,
Peggy, MB BOARDWALK and R&R, the dealings between Ms. Mitchell and Mr. Mitchell on
the one hand and Jack Rabon on the other had deteriorated, with various police reports
being filed against Jack Rabon for his threatening and abusive behavior. Mr. Hicks was
on notice that the goals and motivations of Jack Rabon were not in line with the goals and
23. During this period of time, Peggy was less and less involved in the operation of
24. At the time of Mr. Hicks’ first involvement, he was working in a law firm known as
25. Mr. Hicks advised and approved of the use of properties owned by R&R to serve
as collateral for the contemplated $3.6M USDA loan, even though the loan was being
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26. Despite having knowledge or reason to know of the already tumultuous
relationship between Jack Rabon on the one hand and Ms. Mitchell and Mr. Mitchell on
the other, Mr. Hicks never advised or suggested the inclusion of any protective
BOARDWALK.
27. The advice that Mr. Hicks provided to Ms. Mitchell and Mr. Mitchell prior to and
after the closing of the loan created an attorney-client relationship between Mr. Hicks and
R&R, Mr. Hicks and the eventually formed MB BOARDWALK, and between Mr. Hicks and
28. As part of the closing on the $3.6M loan, Mr. Hicks drafted two Escrow
29. The “First Escrow Agreement” recited that $1.6M in proceeds from the $3.6M loan
were to be escrowed for payment of construction expenses. The First Escrow Agreement
30. The “Second Escrow Agreement,” attached as “Exhibit 2,” recited that $80,000 in
funds were to be escrowed for payment of taxes due on properties used as collateral to
31. After the $3.6M loan closed, construction moved forward with the new facility on
32. During construction, Mr. Skinner notified Ms. Mitchell and Mr. Mitchell that the
project would require more money to complete. With Mr. Hicks continuing to serve as
counsel to R&R and MB BOARDWALK and as the closing lawyer and escrow agent, a
second loan for $300,000 was taken out (“the $300k Loan”) through the Small Business
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Administration (“SBA”), again using properties owned by R&R and MB BOARDWALK as
collateral.
33. Mr. Hicks drafted two escrow agreements in connection with the $300k Loan, both
recited that $189,009 was to be escrowed for purposes of disbursing funds for demolition
and construction costs associated with the golf course project. The “Third Escrow
35. The “Fourth Escrow Agreement,” attached as “Exhibit 4,” recited that $45,086.66
was to be escrowed for the purpose of releasing all or a portion of the escrowed funds for
the payment of real property taxes and personal property taxes for the year 2012 on the
36. Mr. Hicks advised Peggy to execute a personal guaranty as part of both the $3.6M
Loan and the $300k Loan, without explaining the fact that such a personal guaranty would
structure of R&R and/or MB BOARDWALK or future difficulties between the family members.
37. All members of the Family were involved in all the loan transactions discussed in
this Complaint. All members of the Family signed a personal guaranty for each loan
transaction discussed in this Complaint, making each and all personally liable for the
38. The cross collateralization of the R&R properties for the MB Boardwalk loan, and
the personal guaranties by all members of the family, created a joint venture between
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39. Upon information and belief, by the end of calendar year 2012, all taxes on all
40. On July 1, 2013, W EST TOWN, Plaintiff and Mr. Hicks, as Escrow Agent, executed
41. The Termination recites that the Escrow Agreement date April 27, 2012, and the
Amendment to Escrow Agreement dated February 20, 2013, were terminated, and that
the Escrow Agent was directed to disburse the balance of the funds in escrow directly to
the borrowers.
42. The table below provides a summary of the various documents Mr. Hicks drafted
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43. On July 3, 2013, Mr. Hicks forwarded a letter and a check to Ms. Mitchell in the
amount of $1.58, which Mr. Hicks represented to be the entire remaining balance of the
escrow account, and Mr. Hicks indicated that the account had then been closed. This
44. With the July 3, 2013 letter from Mr. Hicks, it became apparent that MB
BOARDWALK, could not meet requirements to demonstrate funds sufficient to make loan
payments as required under the USDA loan documents without the financial assistance
of the other members of the joint venture, i.e. R&R and the Family. To this end, Mr.
Skinner arranged for R&R to take out another loan through the SBA, this time for
$150,000, so that R&R would provide the funds to MB BOARDWALK. All the members of
45. Mr. Hicks was aware of the plan to have R&R take out this additional loan to fund
MB BOARDWALK’s $3.6M loan payments, and Mr. Hicks never explained or advised that
46. Mr. Hicks never discussed potential conflicts of interest or waiver of potential
conflict of interest with Ms. Mitchell, Mr. Mitchell, Jack Rabon and Peggy, R&R, or MB
BOARDWALK at any time, and therefore never obtained any of their informed consents to
waive any conflicts of interest related to his joint and simultaneous representation of all
47. Per the requirements of Mr. Skinner and W EST TOWN, and in order for R&R to get
the $150,000 SBA loan to fund MB BOARDWALK’s payments for the USDA loan, Mr. Hicks
prepared a new set of By-Laws for R&R. The Family adopted these new By-Laws on June
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48. The By-Laws were severely lacking and provided no protection for Peggy in the
event of financial catastrophe for either MB BOARDWALK or R&R; and no protection was
provided for Peggy in the event of intrafamily discord or the typical problems that
accompany any business enterprise, especially one where assets from one business are
49. By April of 2014, money within MB BOARDWALK and R&R had become scarce.
R&R had gotten behind in payments on an older mortgage, and TD Bank filed for
foreclosure against property owned by R&R in the case styled: TD BANK, et al v. RABON
50. In August of 2014, the $3.6M loan was not incurably in default, as W EST TOWN
indicated that it would have allowed a six-month grace period on missed payments. In
July and August of 2014, Jack Rabon, Peggy Rabon, and R&R retained Ms. Golding to
investigate and pursue any viable claims against Ms. Mitchell, Mr. Mitchell, and MB
Boardwalk. Peggy withdrew approximately $70,000.00 to pay the initial retainer to hire
Ms. Golding.
51. Throughout 2014 and 2015, Ms. Mitchell contacted Mr. Hicks several times in
2015 to ask if there were any funds remaining in the escrow account. By this time, the
law firm that Mr. Hicks worked at changed names, from Rice, MacDonald & Hicks, P.A.,
52. MacDonald & Hicks, P.A. is either a mere continuation of Rice, MacDonald &
Hicks, P.A., or at least as to these Plaintiffs; or MacDonald & Hicks, P.A. agreed to
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assume the liabilities of Rice, MacDonald & Hicks, P.A., or at least as to these Plaintiffs;
or the circumstances surrounding the creation of MacDonald & Hicks, P.A. or the
of MacDonald & Hicks, P.A. and Rice, MacDonald & Hicks, P.A.
53. At the time of the 2014 and 2015 inquiries by Ms. Mitchell, the Escrow Agreements
had been terminated, and Mr. Hicks continued to represent that the only funds remaining,
in an amount of $1.58, had been refunded and that no funds remained in the escrow
accounts. This representation was false and as shown later in this pleading, in August
2015, Mr. Hicks disclosed to Ms. Mitchell that there had been $69,574.76 in his escrow
54. The timing of Mr. Hicks seemingly misplacing $69,574.76 in a highly regulated
lawyer trust account supports the inference that Mr. Hicks made representations, at the
55. At no point did Ms. Golding recognize or advise her clients that the Family and the
respective businesses were a joint venture, mutually dependent upon one another for the
56. At the time Ms. Golding agreed to represent Jack Rabon, Peggy Rabon, and R&R,
the single largest liability of all involved was the $3.6 million USDA loan with West Town
Bank.
57. At the time Ms. Golding agreed to represent Jack Rabon, Peggy Rabon, and R&R,
Mr. Jefferies was not a lawyer and Ms. Golding did not know how USDA loans worked.
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58. Ms. Golding filed a lawsuit on behalf of Jack Rabon and Peggy against Ms.
Mitchell, and Mr. Mitchell in the matter styled: Jack I. Rabon and Peggy Jo Rabon v. Karon
alleging that Ms. Mitchell and Mr. Mitchell essentially stole funds from MB BOARDWALK,
and that Ms. Mitchell and Mr. Mitchell were unable to pay the $3.6M loan and the $300k
loan because they had converted company funds for their personal use.
59. In this lawsuit, the listed Plaintiffs sued the Mitchells in a derivative capacity to
60. This lawsuit was contrived, unfounded in fact, instigated to gain a collateral
advantage for Jack only, and not in the best interests of Peggy individually, nor for Peggy
61. Any competent review of the business records and transactions of R&R, MB
Boardwalk, and the Family members would reveal the fundamental nature of the family
businesses as a joint venture and demonstrate that the monies alleged to be “stolen” by
62. Peggy passed away on August 31, 2014. Jack Rabon opened her estate for
representative of the Estate, thus giving rise to fiduciary duties that Jack Rabon now owed
to the Estate. Those fiduciary duties included the duty to manage the Estate assets,
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63. Ms. Golding filed an Amended Complaint in the 2014-CP-26-05740 matter,
acknowledging that Peggy’s 25% share of MB BOARDWALK was part of Peggy’s Estate to
be probated, and that the members of MB BOARDWALK owed fiduciary duties to one
another.
64. MB BOARDWALK and R&R did not make a September 2014 payment to W EST TOWN
because the funds needed to make the payment were either paid to Ms. Golding or
65. On October 1, 2014, Ms. Golding conducted a shareholders meeting during which
Jack Rabon purported to vote Peggy’s shares, and Jack Rabon’s proxy was used to vote
Jack Rabon’s personal shares of R&R to appoint Jack Rabon as President and Vice
President and voted to appoint Jack Rabon’s wife, Nichole Rabon, as Secretary and
Treasurer of R&R.
66. This meeting and, in particular, Mr. Rabon’s self-dealing in electing himself and
his wife as the only officers of the corporation was damaging to Peggy’s individual
67. Under Peggy’s will, Mr. Rabon would not have possessed enough shares in R&R
to seize control of R&R, as he would only own 53% of the outstanding shares. The only
way Mr. Rabon mustered the control of at least 66% of the outstanding shares was
68. The Mitchells and their attorney were present at the October 1, 2014 shareholders
meeting and objected to the proceedings on several grounds. The Mitchells, who were
the officers of the corporation prior to the election of Jack Rabon and his wife, specifically
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objected to the By-Laws being used and declared that the purported election was void.
69. Despite the objections of the Mitchells and their attorneys, Ms. Golding drafted two
affidavits for Jack Rabon and Nicole Rabon that averred under oath that no current or
Treasurer. These affidavits were notarized by the legal assistant of Ms. Golding and
presented to the Horry County Magistrate’s Court less than two weeks after the October
70. In November 2014, Ms. Mitchell contacted Riddick Skinner about modifying the
MB Boardwalk loan to avoid foreclosure and provide relief with regard to the debt service
payments due under the original loan. Riddick Skinner stated that he was glad to begin
the modification process and would work with Ms. Mitchell to keep the loan out of
foreclosure.
71. Riddick Skinner indicated that he could not initiate the modification process without
discovered that in December of 2014 and again in December of 2015, Jack Rabon, who
relied on the bad advice of Ms. Golding and Mr. Jefferies, refused to sign the consent for
a modification of the West Town loan, thereby guaranteeing the foreclosure process
would begin with regards to the MB Boardwalk loan for which Peggy was a personal
guarantor.
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73. In May 2015, WEST TOWN foreclosed on the $3.6M Loan and the $300k Loan, in
the matter styled WEST TOWN SAVINGS BANK N /K /A WEST TOWN BANK & TRUST v.
74. Throughout the joint representation of Jack Rabon, the Estate and R&R, Ms.
Golding and Mr. Jefferies acted to protect the interests of Jack Rabon at the expense of
75. Throughout the joint representation of Jack Rabon, the Estate and R&R, Mr.
Jefferies and Ms. Golding acted to achieve the ultimate goal of obtaining a cash buyout
for Jack Rabon and completely disregarded the impending judgments that would result
76. At no time did Mr. Jefferies or Ms. Golding advise any of their joint clients that
failure to remedy the West Town default was likely to result in a substantial judgment
77. Ms. Golding or Mr. Jefferies actually advised Jack Rabon to take action to prohibit
and/or hinder Ms. Mitchell’s ability to successfully operate and derive income from Shark
Attack.
78. Ms. Golding or Mr. Jefferies assisted Jack Rabon in disabling the equipment at
Shark Attack to delay its opening and damage the ability of MB Boardwalk to pay its debts.
79. During the end of 2014 and early 2015, the Family engaged in settlement
negotiations through their respective attorneys. The primary focus of Ms. Golding or Mr.
Jefferies was to obtain the release of Jack Rabon from all debts and personal guarantees
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80. At no time did Ms. Golding or Mr. Jefferies demand any concessions or
consideration of R&R or the Estate beyond the removal of the Estate from the personal
81. In December 2014, Ms. Golding or Mr. Jefferies submitted a demand for
settlement that required the Estate and Jack Rabon to be released from the personal
guarantees on the various loans and a payment of $500,000.00 to Jack Rabon. The
demand would encumber the remaining R&R Properties with mortgages in favor of Jack
Rabon and obligate R&R to pay Jack Rabon a monthly payment of over $3000.00.
for the stock of R&R owned by Jack Rabon and the Estate. However, the demand
specifically allowed Jack Rabon to receive all of that consideration despite the fact that
he only owned less than 18% of the R&R stock being transferred. The remaining stock
being transferred was owned by the Estate. See Proposed Settlement Agreement,
82. In November 2014, a local investor made a written offer for the purchase of Sea
Palms #1 in the amount of $500,000.00. This offer was communicated to Ms. Golding,
83. Upon receipt of the $500,000.00 offer for the purchase of Sea Palms #1, Ms.
Golding called the real estate agency that procured the offer, Keystone Commercial
Realty, and demanded that they stop all attempts to pursue the marketing and sale of any
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84. At the time the $500,000.00 offer was made for the purchase of Sea Palms #1,
the joint venture was in default on three loans: TD Bank, BB&T, and West Town Bank.
TD Bank was owed less than $300,000.00, BB&T only required a payment of
approximately $22,000.00 to be renewed and brought current, and West Town required
a payment of only $78,000.00 to be made current with no payments due for at least 9
months.
85. If Sea Palms #1 had been sold for $500,000.00, all three loans would have been
either paid off or brought current before the end of 2014, avoiding three foreclosure
lawsuits against the joint venture, and leaving at least $100,000.00 in immediate cash for
86. Henrietta Golding told Ross “Buddy” Lindsay, the attorney for Karon and Kyle
Mitchell, that the $500,000.00 offer was rejected because they had “a better offer.”
87. In February 2015, unbeknownst to Ms. Mitchell and Mr. Mitchell at the time, Jack
Rabon consummated a sale where R&R sold Sea Palms #1 to Shai David and Beth David
for $242,000.00. This sale by Jack Rabon ignored the fact that the Estate was not yet
probated; was for less than half the price offered in November 2014, ignored Peggy’s
liability for each personal guaranty signed by Peggy, which was now a consideration for
the Estate; occurred even though the Estate owned 61% of the shares of R&R; occurred
without Probate Court approval or knowledge even though this sale liquidated a
significant asset of the Estate; was detrimental to the interests of all members of MB
BOARDWALK; and also endangered other assets of the Estate held in title by MB
BOARDWALK.
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88. This sale was damaging to Peggy’s individual interests and for Peggy’s interests
89. This sale was damaging to R&R as it disposed of an asset for less than half its
market value.
90. In March of 2015 and still unbeknownst to Ms. Mitchell and Mr. Mitchell at the time,
Jack Rabon consummated a sale where R&R sold Sea Palms #2 to Shai David and Beth
David for $175,000.00, which was a grossly undervalued sale price. This sale was
damaging and against the best interests of the Estate, R&R, creditors of the Estate, and
Jefferies) ignored the fact that the Estate was not yet probated; ignored the Estate’s
liability for Peggy’s liability for each personal guaranty signed by Peggy, which was now
a consideration for the Estate; occurred even though the Estate owned shares of R&R;
occurred without Probate Court approval or knowledge even though this sale liquidated
a significant asset of the Estate; was detrimental to the interests of MB BOARDWALK; and
91. The sales of Sea Palms #1 and Sea Palms #2 were extraordinary corporate acts
that required shareholder approval and the Probate Court’s approval because the sales
92. Jack Rabon, with the knowledge and assistance of Mr. Jefferies, structured the
sales of Sea Palms #1 and Sea Palms #2 to suggest that the sales were only for a total
of $417,000.00 for both hotels. In reality, Mr. Shai David agreed to pay Jack Rabon
additional funds outside of the closing after the property was deeded to Mr. David and the
mortgage had been satisfied, in the amount of $735,000.00. Jack Rabon’s actions were
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in breach of his fiduciary duties to the Estate and its beneficiaries, Ms. Mitchell, Mr.
93. The sales of Sea Palms #1 and Sea Palms #2 were against the interests of the
entities and therefore diminished the value of the Estate’s interest in the entities; and
should have been used to fund restructuring of the WEST TOWN Loan, however, based on
negligent advice of Mr. Jefferies and Ms. Golding, the proceeds of the sales were
transferred directly to Ms. Golding’s trust account to protect its fees generated by Mr.
Jefferies and Ms. Golding, as security for future fees to be generated by the two; and as
distributions to Jack Rabon as an individual and outside of the knowledge of the Probate
Court.
94. Later in 2015, Jack Rabon filed an inventory and appraisal that, upon information
and belief, makes no reference to the sale of Sea Palms #1 or Sea Palms #2.
Misrepresentations to Tribunals
95. In 2015, Ms. Mitchell and Mr. Mitchell filed a lawsuit styled Mitchell, Mitchell and
MB BOARDWALK, LLC v. RABON & RABON, Inc., et al., 2015-CP-26-01628, against Jack
96. An Amended Petition in the Estate case was filed requesting that Jack Rabon be
removed as the PR, citing Jack Rabon’s erratic behavior, breaches of fiduciary duties,
and believed fraud, waste, and abuse of assets of R&R and the Estate. At that time, Ms.
Mitchell and Mr. Mitchell were unaware of the extent Mr. Jefferies’ and Ms. Golding’s
97. Ms. Golding and Mr. Jefferies filed an Answer to the Amended Petition in the
Estate case, and the civil case 2015-CP-26-01628, on behalf of Jack Rabon. These
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Answers acknowledged the sales of Sea Palms #1 and Sea Palms #2. Most important,
cash and alleged that the funds were used “to preserve other Rabon & Rabon assets.”
98. The actual amount received Ms. Golding or Mr. Jefferies was $128,289.57. Both
Answers are noticeably silent concerning not applying the proceeds of the sales to protect
the assets of MB BOARDWALK, despite those being the most significant asset of the joint
venture and the Estate, and despite the existence of Peggy’s personal guaranty which
was part of the Estate. R&R’S assets, although allegedly preserved, were never identified.
99. At the time that Ms. Golding and Mr. Jefferies represented that the “$120,000.00”
was used to preserve assets of R&R, they held more than $123,000.00 of R&R funds in
a trust account.
100. Ms. Golding or Mr. Jefferies continued to hold the proceeds from the Sea Palms
#2 sale for nearly 2 years. During that time, only $39,299.52 the $128,289.57 was spent
towards expenses for the company. The rest of the funds were either paid to McNair Law
101. The Sale of Sea Palms #2 generated cash that the Estate could claim in the
approximate amount of $78,256.64, or the Estate’s 61% of the $128,289.57 that R&R
realized from the land sale. In the Answer to the Probate Petition, Ms. Golding and Mr.
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102. The $128,289.57 should have been used to secure assets of R&R and MB
BOARDWALK by making payments on the various loans the joint venture had taken out on
respective properties, including the $3.6M Loan and the $300,000 Loan.
103. Upon information and belief, the proceeds of legitimate sales for Sea Palms #2
should have been applied to bring the WEST TOWN loans current to avoid the foreclosure
and eventual deficiency judgment, and also to prevent the loss of property owned by MB
104. On August 5, 2015, Mr. Hicks sent the email attached as “Exhibit 10,” which
indicated that, contrary to his July 3, 2013 letter, Mr. Hicks still retained $69,574.76 in
funds from the closings he supervised and conducted. Upon information and belief, Mr.
Hicks profited from interest earned from one or more of the deposits made pursuant to
105. This was the first confirmation that anyone received that Mr. Hicks was holding
106. Upon information and belief, the funds the funds described in “Exhibit 10” were
first deposited into accounts held by Mr. Hicks’ former law firm, Rice, MacDonald & Hicks,
P.A., and that this time or sometime shortly thereafter, those funds and all other funds
controlled by Mr. Hicks for the benefit of his clients, were transferred to accounts owned
107. This confirmation email came too late to help the Estate, MB BOARDWALK, and
R&R salvage the $3.6M Loan, the $300k Loan, or the properties of MB BOARDWALK and
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The September Conspiracy
agreement wherein R&R would sell Sea Palms #3 and the Brick House, to FRIENDS OF
LBS, INC.
109. Jack Rabon informed Mr. Jefferies and Ms. Golding of the terms of the
agreement with Friends of LBS, Inc. and told them that he wanted to conceal the sale
110. Mr. Jefferies and Ms. Golding agreed to actively conceal the money received
from the sale of the Brick House from both BB&T and West Town Bank and acted
accordingly.
111. On August 20, 2015, on behalf of Jack Rabon, Ms. Golding petitioned the
Probate Court for approval of sales of Sea Palms #3 and the Brick House, to FRIENDS OF
LBS, INC., arguing that the sales were good for R&R, the Estate, its beneficiaries
(including Ms. Mitchell and Mr. Mitchell), and the creditors of the Estate, because the
sales, while not netting additional funds, would resolve outstanding mortgages on the
properties. These false representations and the actions themselves constituted a breach
of fiduciary duties owed by Jack Rabon to the Estate, MB BOARDWALK, and R&R. Mr.
Jefferies (and upon information and belief, Ms. Golding) knowingly aided and abetted
these breaches by Jack Rabon. Mr. Jefferies (and upon information and belief, Ms.
Golding) negligently pursued only the interests of Jack Rabon to the exclusion and
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112. Jack Rabon, by and through his attorneys Mr. Jefferies and Ms. Golding,
represented to the BB&T, West Town Bank, the Horry County Probate Court, Ms. Mitchell,
and Mr. Mitchell that Sea Palms #3 was being sold for a total sales price of $397,000.00.
113. Jack Rabon, by and through his attorneys Mr. Jefferies and Ms. Golding,
represented to the Horry County Probate Court, Ms. Mitchell, and Mr. Mitchell that the
Brick House was being sold for a total sales price of $145,000.00. The sale of the Brick
114. Unbeknownst to the Mitchells, BB&T, West Town Bank, or the closing attorney
Michelle Emery, Jack Rabon actually negotiated for the payment of an additional
$235,000.00 to be paid to him personally for the sale of Sea Palms #3. See Affidavit of
115. Michelle Cohen was the realtor involved in the deal and the primary
representative of Biderman. Ms. Cohen confirmed the conspiracy to pay the additional
illicit funds via affidavit. See Affidavit of Michelle Cohen, Paragraph 8, attached as
“Exhibit 12.”
116. Jacob Biderman, Atid Properties, LLC, Friends of LBS, LLC and Sarah Ginsberg
admitted in their joint answer to a separate lawsuit, 2017-CP-26-05757, that the additional
$235,000.00 was paid for Sea Palms #3 outside of the closing. See Answer of Biderman
Defendants, attached as “Exhibit 13.” Therefore, the payment of the illicit and
117. On or about August 25, 2015, the Probate Court approved the August 5, 2015
sales contracts based on the misrepresentations made by Jack Rabon, Mr. Jefferies and
Ms. Golding.
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118. Once the Probate Court issued the Order approving the sale of the real
properties, Biderman formed a new LLC, Atid Properties, LLC, for the sole purpose of
119. Once the Probate Court issued the Order approving the sale of the real properties
Jack and Nicole Rabon formed a new LLC, Daisy Ridge, LLC, for the sole purpose of
120. The formation of Daisy Ridge, LLC was suggested by Lane Mr. Jefferies who
referred the Rabons to Robert Frenz, an attorney in Columbia, for its formation.
121. Mr. Jefferies actually provided the fraudulent address for the Rabon’s to use as
the office for Daisy Ridge via text message. See Affidavit of Jack Rabon, paragraph 4,
attached as “Exhibit 11,” See text from Mr. Lane Jefferies to Jack Rabon on 8/26/2015,
attached as “Exhibit 14,” See Articles of Organization for Daisy Ridge, LLC; attached as
“Exhibit 15,” See Affidavit of Robert Frenz, attached as “Exhibit 16,”; and Affidavit of Dan
122. After the LLCs were formed, the last piece of the conspiracy involved the money.
The money from Biderman would be transferred through three wire transfers. The first
wire consisted of the legitimate funds under the contracts and transferred to the Emery
Law Firm Trust Account from a newly created Bank of America bank account in the name
of Atid Properties, LLC. This total of $527,627.77 arrived no later than September 2,
2015. See the Emails from Michelle Cohen to Emery Law Firm, attached as “Exhibit 18.”
123. The second wire in the amount of $100,000.00 was wired from Biderman’s
account in Austria to a bank account in Chile in the name of Gabby Yosef, Michelle
Cohen’s brother. See Paragraph 11 of Michelle Cohen Affidavit, attached as “Exhibit 12,”
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and the email between Cohen and Biderman, attached as “Exhibit 19.” These funds were
124. The third wire was in the amount of $135,000.00 and was transferred to a PNC
Bank Account in the name of Daisy Ridge, LLC. See the wire confirmation from Bank of
125. Due the anti-money laundering regulations in the U.S., the Daisy Ridge, LLC wire
had to go through a clearinghouse in New York and it did not arrive by September 3,
2015. This caused a ripple in the plan, resulting in Jack Rabon demanding that additional
126. Biderman wrote three checks for $45,000.00 each that were given to Mr. Jefferies
as security for the illicit funds. Mr. Jefferies signed a receipt for these three checks on
September 3, 2015. See the signed receipt by Mr. Jefferies, attached as “Exhibit 21.”
127. Mr. Jefferies asserted that these checks were for “security for the brick house,”
but this is false. All funds necessary for the closing of both properties arrived in the trust
account of the Emery Law Firm no later than September 2, 2018, the day before the three
128. On September 2, 2015, Mr. Jefferies engaged in a series of texts with Jack and
Nicole Rabon. These texts are the proverbial “smoking gun” with regard to proving Mr.
Jefferies’ knowing and intentional involvement in the conspiracy. See the text from Mr.
demonstrate Mr. Jefferies’ knowledge of both wires involving the illicit monies from
Biderman. The single text that conclusively proves Mr. Jefferies’ direct involvement reads
as follows:
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“Damn. Jack, can you get Michelle on the phone and see if gabby got his
wire?”
129. The only way Gabby Yosef was involved with any party in general, or with the
real estate transaction on September 3, 2015 in particular, was through the wire of
$100,000.00 to his bank account in Chile. Mr. Jefferies knew about and, more
importantly, was concerned about “gabby’s wire.” This proves he knew about the illicit
funds and was an active participant in the conspiracy to defraud the banks, the Mitchells
130. On September 3, 2015, Mr. Jefferies was picked up by Jack Rabon after the
closing was complete. See texts from Mr. Jefferies to Jack Rabon on 9/03/2015, attached
as “Exhibit 23.” They travelled to a parking lot off of 38th Avenue North in Myrtle Beach
to meet with Michelle Cohen and Gabby Yosef. Michelle then handed an envelope with
$50,000.00 cash inside. In front of Michelle Cohen, Jack Rabon immediately handed Mr.
Jefferies $10,000.00 of the cash. See paragraph 5 of Jack Rabon Affidavit, attached as
“Exhibit 11,” and paragraph 5-32 of Michelle Cohen Affidavit, attached as “Exhibit 12.”
131. Over the course of the next seven weeks, Jack Rabon withdrew nearly all of the
$135,000.00 from the Daisy Ridge, LLC account in cash. This excessive withdrawal
activity caused PNC Bank to initiate an investigation under its anti-money laundering
guidelines. One of the investigators working the file was named Jesse Cagle. Mr. Cagle
was an employee at the PNC branch where the Rabons opened the Daisy Ridge, LLC
account. Mr. Cagle spoke with Mr. Jefferies on the phone regarding the excessive
withdrawals by Jack Rabon. Mr. Jefferies told Mr. Cagle that he didn’t know why Jack
was withdrawing the cash. He suggested that Jack Rabon had a gambling problem or a
“girl on the side.” But it was his money and he should be able to do what he wanted with
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it. Mr. Jefferies actually billed the Rabon’s for this phone call in official billing records
134. The MSA purported to resolve not only the case that gave rise to the mediation,
but also RABON v. Michell, et al., 2014-CP-26-05740, Mitchell, et al. v. RABON, et al., 2015-
CP-26-01629, and “[a]ll existing probate cases” including but not limited to In Re Peggy
removed as the Personal Representative of Peggy’s Estate and Ms. Mitchell’s claims and
a. First, it required that within 30 days, Ms. Mitchell and Mr. Mitchell were to
obtain W EST TOWN’s release of its claims against R&R, Jack Rabon, and
the Rabon Estate from $4,000,000 of commercial debt, while also obtaining
similar releases from the USDA for the W EST TOWN loan, with Jack Rabon
keeping the whole of R&R for himself.
If Ms. Mitchell and Mr. Mitchell could not meet the terms of Part A, the MSA required
Part B:
b. Ms. Mitchell and Mr. Mitchell would give Jack Rabon their proxies
authorizing Jack Rabon to vote their shares of R&R and MB BOARDWALK,
and to sell the assets of R&R and MB BOARDWALK, under terms and
conditions as Jack Rabon would determine in his sole discretion.
136. The two scenarios presented in the MSA were only beneficial to the interests of
Jack Rabon and were detrimental and damaging to the interests of the Estate, MB
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BOARDWALK, and R&R. Mr. Jefferies (and upon information and belief, Ms. Golding)
negligently pursued only the interests of Jack Rabon to the exclusion and detriment of the
137. Jack Rabon never fully participated in efforts to work with W EST TOWN to modify
the loan. Mr. Jefferies contacted W EST TOWN’s lawyer a few times to discuss the
despite knowing that documents were required from Jack Rabon for WEST TOWN to even
consider modification of the loan to benefit MB BOARDWALK, R&R, and Ms. Mitchell and
Mr. Mitchell, Mr. Jefferies waited until a few days before the final foreclosure hearing to
send the requested documents. Jack Rabon delayed the transmission of the documents.
These actions were breaches of fiduciary duties owed by Jack Rabon to the Estate and
its beneficiaries, Ms. Mitchell, Mr. Mitchell, MB BOARDWALK, and R&R. Upon information
and belief, Mr. Jefferies and Ms. Golding knew or should have known of these breaches
of fiduciary duties, and further acted to aid and abet the breaches of fiduciary duties by
Jack Rabon. Mr. Jefferies (and upon information and belief, Ms. Golding) negligently
pursued only the interests of Jack Rabon to the exclusion and detriment of the Estate,
MB BOARDWALK, and R&R in connection with the events surrounding the WEST TOWN loan
modification efforts.
138. Ms. Mitchell and Mr. Mitchell realized that they likely could not perform on Part A
of the Agreement.
139. Eventually, Ms. Mitchell and Mr. Mitchell filed a motion on their own behalf to set
aside the MSA, which Mr. Jefferies and Ms. Golding, acting only for the benefit of Jack
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140. Mr. Jefferies (and upon information and belief, Ms. Golding) negligently pursued
only the interests of Jack Rabon to the exclusion and detriment of the Estate, MB
142. As illustrated in the emails attached as “Exhibit 26,” in May of 2016, Jack Rabon
withdrew $9,890.00 from a bank account owned by and containing funds belonging to MB
BOARDWALK. When questioned about the withdrawal, Mr. Jefferies acknowledged that the
withdrawal occurred but that Jack Rabon was entitled to a distribution, despite MB
BOARDWALK being in foreclosure and losing money, and despite the fact that the
These actions constituted a breach of the fiduciary duties that Jack Rabon owed to
Plaintiffs. Mr. Jefferies knowingly participated in these breaches and, in fact, Mr. Jefferies
aided, abetted, and defended these breaches as indicated in his emails attached as
Exhibit 26. Mr. Jefferies (and upon information and belief, Ms. Golding) negligently
pursued only the interests of Jack Rabon to the exclusion and detriment of the Estate,
MB BOARDWALK, and R&R in connection with this and other distributions to Jack Rabon,
Ms. Golding in her professional capacity, and Mr. Jefferies, individually but also in his
professional capacity.
143. As illustrated in the document attached as “Exhibit 27,” on October 10, 2016, the
Internal Revenue Service assed a tax lien on the Estate of Peggy Jo Rabon in the amount
of $36,699.71.
144. As illustrated in the bank statement attached as “Exhibit 28,” on May 3, 2017,
Ms. Golding or Mr. Jefferies issued a refund of trust funds to R&R, although those funds
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were wired directly to the personal bank account of Nicole Rabon. Upon information and
belief, neither Ms. Golding nor Mr. Jefferies informed the Probate Court about the return
of these funds but should have, as at least some of these funds belong to the Estate
through Peggy’s interest in R&R. Additionally, the funds should have been deposited in a
corporate account of R&R thereby additionally devaluing R&R and consequently the
Estate. The funds were deposited into Nicole Rabon’s account while, upon information
and belief, Jack Rabon, Ms. Golding and Mr. Jefferies knew of the existence of the
October 2017 IRS lien. Ms. Golding and Mr. Jefferies breached their duties to the Estate,
beneficiaries to the Estate when they disbursed R&R funds to the personal bank account
of Nichole Rabon. In addition, without notifying and getting approval from the Probate
Court, such actions constituted a knowing participation by Ms. Golding and Mr. Jefferies
in Jack Rabon’s breach of his fiduciary duties as Personal Representative of the Estate.
145. On March 19, 2018, The Honorable Benjamin H. Culbertson entered the Order
attached as “Exhibit 29.” Among other findings, the order finds that fraud occurred when
Jack Rabon sold R&R properties, and that there was fraud in concealing the true
purchase price and/or value of the properties. Jack Rabon’s fraud in these land sales
constitute breaches of fiduciary duties owed to Plaintiffs. Upon information and belief, Mr.
Jefferies and Ms. Golding were directly involved in negotiating and consummating the
fraudulent land sales, and as such, Mr. Jefferies and Ms. Golding knowingly aided and
abetted and directly participated in these breaches of fiduciary duties, which caused harm
to Plaintiffs. Mr. Jefferies (and upon information and belief, Ms. Golding) negligently
pursued only the interests of Jack Rabon to the exclusion and detriment of the Estate,
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MB BOARDWALK, and R&R in connection with the fraud discussed in Judge Culbertson’s
Order.
146. By August 28, 2018, Jack Rabon provided counsel for Ms. Mitchell, Mr. Mitchell,
Boardwalk insolvent.
147. By this time, the Estate was open; the foreclosure and deficiency judgment had
been finalized; yet the Estate has still, to date, not received its proportionate share of the
funds that Mr. Hicks holds, which would flow through MB Boardwalk or R&R to the Estate.
148. To make matters worse, upon information and belief, West Town Bank, holding
a valid deficiency judgment and as a party to the Escrow Agreements drafted by Mr.
Hicks, has not authorized release of the $69,574.76 that Mr. Hicks still holds.
149. By all appearances, Mr. Hicks held the $69,574.76 in funds in escrow, despite
150. At all relevant times, Mr. Jefferies was employed by and working as an associate
151. At all relevant times, Mr. Jefferies was an agent of Ms. Golding.
152. The negligent acts, omissions, and liability of Ms. Golding includes the acts
and/or omissions of her agents, principals, employees and/or servants, including but not
limited to those by Mr. Jefferies, both directly and vicariously, pursuant to principles and
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153. Upon information and belief, at all relevant times, Ms. Golding acted by and
through her agents, including but not limited to Mr. Jefferies, who acted within the course
and scope of his respective employment and/or agency with all implied, inherent,
apparent and express authority to so bind his master and principal by his negligent, willful,
wanton and reckless actions and/or omissions making Ms. Golding vicariously liable for
same under the principles and doctrines of non-delegable duty, corporate liability,
154. Mr. Jefferies acted through the time periods discussed in this Complaint to
generate lawyer’s fees to be paid to Ms. Golding by the Estate, R&R, and Jack Rabon.
155. Mr. Jefferies also acted through the time periods discussed in this Complaint to
156. Mr. Jefferies and Ms. Golding acted through the time periods discussed in this
Complaint to aid and abet the multiple and various breaches of fiduciary duties owed by
157. Through the time periods discussed in this Complaint, Mr. Jefferies (and upon
information and belief, Ms. Golding) negligently pursued only the interests of Jack Rabon
158. At the times complained of herein, Mr. Jefferies and Ms. Golding acted in their
own self-interest or outside the scope of their role as counsel to Jack Rabon, or acted
outside of the mandates of the South Carolina Rules of Professional Conduct, Rule 407,
159. Mr. Jefferies and Ms. Golding owed duties directly to MB BOARDWALK and R&R
as counsel for each entity to represent the respective interests of MB BOARDWALK and
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R&R to the exclusion of the personal interests of Jack Rabon as an individual. Mr.
Jefferies and Ms. Golding failed to do so as discussed in the events complained of herein;
and their respective or joint negligence in failing to meet their duties devalued each entity,
160. Mr. Jefferies and Ms. Golding owed duties to Plaintiff to follow the South Carolina
Rules of Professional Conduct in their dealings when acting for the Estate, MB
BOARDWALK and R&R. Aiding and abetting Jack Rabon’s multiple breaches of fiduciary
duties violated such duties owed to Plaintiffs and directly and proximately caused Plaintiff
damages.
161. In summary, first, Mr. Hicks lost approximately $70,000 which would have staved
off foreclosure, and he did not find it until foreclosure had already become inevitable.
Then, Mr. Jefferies brokered a secret land sale of properties owned by R&R, the proceeds
of which if disclosed, would have also staved off foreclosure. Once foreclosure was
inevitable, Ms. Golding and Mr. Jefferies moved for court approval of two other grossly
undervalued land sale deals of property owned by R&R, which further harmed the
interests of Ms. Mitchell, Mr. Mitchell, MB BOARDWALK, and R&R. Then, Mr. Jefferies
negotiated the MSA that only advantaged Jack Rabon to the exclusion and detriment of
the interests of Estate, MB BOARDWALK and R&R; and then opposed setting aside the
MSA, to the exclusion and detriment of the interests of Estate, MB BOARDWALK and R&R.
Thereafter, Mr. Jefferies worked with Jack Rabon to ensure that, despite the obvious
benefit to R&R and MB BOARDWALK and consequently the Estate, the foreclosure
modification could not occur because W EST TOWN never timely received the documents
it requested from Jack Rabon. The results of the actions of Mr. Hicks, Mr. Jefferies and
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Ms. Golding were the foreclosure or sale of all properties owned by MB BOARDWALK and
R&R, lost potential for profit in the miniature golf business enterprise, lost funds due to
the Estate, MB BOARDWALK and R&R from the secret land sales, a deficiency judgment
as to the Estate, MB BOARDWALK and R&R, in an amount over $550,000, and no money,
162. The foregoing factual and jurisdictional allegations are reiterated and realleged
163. Outside of his duties and attorney-client relationship with Ms. Mitchell, Mr.
Mitchell, Peggy, Jack, MB Boardwalk and R&R, Mr. Hicks combined with Mr. Jefferies or
Ms. Golding for the purpose of injuring MB Boardwalk, generating special damage to the
Estate where Mr. Hicks, as a result of the conspiracy, caused the Estate to lose its
proportionate share of the funds wrongly held in his possession, the use of those funds,
and the Estate can never be closed until the disposition of the funds Mr. Hicks wrongfully
retained is resolved.
164. The claims of Peggy Rabon that she could have asserted against Mr. Hicks, had
she known of the conspiracy, are now claims rightfully belonging to and asserted by her
Estate.
165. As a direct and proximate result of Mr. Hicks’ participation in the civil conspiracy
with intent to harm MB Boardwalk, an asset of Peggy Rabon and so an Asset of the
Estate, the Estate has sustained special damage in the loss of funds that would have run
to the Estate, the loss of use of the funds that would have benefitted the Estate.
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166. Mindful of the foregoing, the Estate hereby requests and demands judgment
against Mr. Hicks for its proportional amount of funds he holds that should have flowed
trier of fact to both push Mr. Hicks and deter similar conduct on the part of Mr. Hicks and
167. The foregoing factual and jurisdictional allegations are reiterated and realleged
168. As described throughout this Complaint, Jack Rabon breached fiduciary duties
169. As detailed above, Mr. Jefferies and Ms. Golding knowingly participated in Jack
Rabon’s various breaches of fiduciary duties owed to the Estate of Peggy Jo Rabon and
R&R, including but not limited to use of the Probate Court to seek approval for illicit or
undervalued land sales that devalued R&R and the Estate; and siphoning of Estate or
170. Mr. Jefferies and Ms. Golding knowingly encouraged, aided and abetted Jack
Rabon’s breaches of fiduciary duties in such other particulars as the evidence in this case
may demonstrate.
171. As a direct and proximate result of Jack Rabon’s various breaches of fiduciary
duties and the knowing participation of Mr. Jefferies and Ms. Golding in those breaches,
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the Estate suffered actual, consequential and incidental damages in an amount to be
172. In addition to the actual, consequential, and incidental damages suffered, the
Rabon, is informed and believes that the Lawyers’ highly reckless, wanton, and
irresponsible conduct as specified in certain causes of action in this Complaint entitle the
the Estate of Peggy Jo Rabon, prays for judgment on this cause of action against the Mr.
Jefferies and Ms. Golding for actual, special, consequential, and incidental damages
suffered, pre-judgment interest, punitive damages, and such other relief as the Court may
174. The foregoing factual and jurisdictional allegations are reiterated and realleged
175. At all relevant times, a client-lawyer relationship existed between Mr. Jefferies
and Ms. Golding as the lawyers, and the Personal Representative of the Estate as the
client.
176. Mr. Jefferies and Ms. Golding had and owed fiduciary duties to the Personal
Representative of the Estate, including the duty of loyalty, as well as the duty to act single-
mindedly in preserving, protecting and advancing the rights and interests of the Estate.
177. The Lawyers failed to meet the minimum standard of conduct and thereby
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breached their fiduciary duties of loyalty when the Lawyers did not remain loyal to the
Estate with regard to ensuring that funds were properly distributed to the Estate instead
178. The Lawyers failed to meet the minimum standard of conduct and thereby
breached their fiduciary duties of loyalty when the Lawyers agreed to distribute funds
directly to Jack Rabon and Mr. Jefferies rather than paying those funds into the Estate.
179. The Lawyers failed to meet the minimum standard of conduct and thereby
breached their fiduciary duties to the Estate in such other particulars as the evidence in
180. As a direct, proximate, and foreseeable cause of the Lawyers’ actions and
inactions breaching their fiduciary duties, the Estate sustained actual damages, is entitled
proven at trial.
181. Based on the Lawyers’ clear and serious breach of their fiduciary duties of
182. Based on the Lawyer’s clear and serious breach of their fiduciary duties of
loyalty, punitive damages should be awarded in an amount determined by the jury at the
183. WHEREFORE, the Estate, prays for judgment on this cause of action against
the Lawyers for actual, special, consequential, and incidental damages suffered, pre-
judgment interest, legal fees, punitive damages, and such other relief as the Court may
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(Ms. Golding and Mr. Jefferies)
(On behalf of the Personal Representative)
184. The foregoing factual and jurisdictional allegations are reiterated and realleged
185. At all relevant times, a client-lawyer relationship existed between Ms. Golding
and Mr. Jefferies as the lawyers for the Personal Representative of the Estate of Peggy
Jo Rabon, as client.
186. The scope of Ms. Golding’s and Mr. Jefferies representation included:
Personal Representative;
owned by MB Boardwalk and R&R that were subject to West Town Bank’s
mortgage;
regarding the maintenance and preservation of property in which the Estate had
187. Ms. Golding and Mr. Jefferies failed to meet the minimum standard of care
to purchase R&R real estate, which if transmitted, should have been accepted
and should have generated sorely needed cash to save other R&R and MB
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Boardwalk properties; or should have generated substantial cash that should
have been included in the assets of the Estate based on Peggy Jo Rabon’s
Representative to promote, maintain and preserve the assets of R&R and the
Estate, instead favoring the personal interests of Jack Rabon in advice given;
corporations R&R and MB Boardwalk and the respective properties held by such
corporations;
d. Failing to properly account for or apply funds trusted within their care, disbursing
such funds to Ms. Golding in her professional capacity, or Mr. Jefferies in his
personally, instead of depositing such funds into the Estate or an account owned
by R&R;
duties to the Personal Representative and R&R by other such particulars as the
188. As a direct and proximate result of Ms. Golding’s and Mrs. Jefferies’ breaches of
professional duties by the actions and omissions specified in this Complaint and other
actions and omissions known to Ms. Golding and Mr. Jefferies and expected to be
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uncovered in discovery of this matter, Plaintiffs suffered actual, consequential and
incidental damages in an amount to be determined by the jury at the trial of this case.
189. The foregoing factual and jurisdictional allegations are reiterated and realleged
190. At all relevant times, a client-lawyer relationship existed between Ms. Golding
191. MB Boardwalk, R&R, and the members of each and both were in a joint venture.
192. The client-lawyer relationship and the duties that come with that relationship
extended to MB Boardwalk through the client-lawyer relationship of Ms. Golding and Mr.
193. In the alternative, at all relevant times, a client-lawyer relationship also existed
between Ms. Golding and Mr. Jefferies as the lawyers and MB Boardwalk, as the client.
194. The scope of Ms. Golding’s and Mr. Jefferies representation included:
a. Extending all offers to purchase R&R and MB Boardwalk properties to R&R and
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preservation of all property owned by each and both entities.
195. Ms. Golding and Mr. Jefferies failed to meet the minimum standard of care
R&R and MB Boardwalk, and otherwise acted in a negligent manner by, among other
things:
have been accepted and should have generated sorely needed cash to save
cash that should have been available for distribution to R&R and MB Boardwalk,
e. Failing to resolve conflicts, seek conflict waivers, or otherwise advise R&R and
favored the interests of R&R and MB Boardwalk, or the members of R&R and
Boardwalk, instead favoring the personal interests of Jack Rabon in advice given;
g. Failing to properly account for or apply funds trusted within their care, disbursing
such funds to Ms. Golding in her professional capacity, or Mr. Jefferies in his
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members of R&R and MB Boardwalk;
196. As a direct and proximate result of Ms. Golding’s and Mrs. Jefferies’ breaches of
professional duties by the actions and omissions specified in this Complaint and other
actions and omissions known to Ms. Golding and Mr. Jefferies and expected to be
incidental damages in an amount to be determined by the jury at the trial of this case.
197. WHEREFORE, Plaintiffs pray for judgment on this cause of action against the
Lawyers for actual, special, consequential, and incidental damages suffered, pre-
judgment interest, legal fees, punitive damages, and such other relief as the Court may
198. The foregoing factual and jurisdictional allegations are reiterated and realleged
199. At all relevant times, a client-lawyer relationship existed between Ms. Golding
200. MB Boardwalk, R&R, and the members of each and both were in a joint venture.
201. The client-lawyer relationship and the duties that come with that relationship
extended to MB Boardwalk through the client-lawyer relationship of Ms. Golding and Mr.
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202. In the alternative, at all relevant times, a client-lawyer relationship also existed
between Ms. Golding and Mr. Jefferies as the lawyers and MB Boardwalk, as the client.
203. Mr. Jefferies and Ms. Golding had and owed fiduciary duties to R&R and MB
Boardwalk, or the members of R&R and MB Boardwalk, including the duty of loyalty, as
well as the duty to act single-mindedly in preserving, protecting and advancing the rights
and interests of to R&R and MB Boardwalk, or the members of R&R and MB Boardwalk.
204. The Lawyers failed to meet the minimum standard of conduct and thereby
breached their fiduciary duties of loyalty when the Lawyers did not remain loyal to R&R
and MB Boardwalk, or the members of R&R and MB Boardwalk; with regard to ensuring
that funds were properly distributed to R&R and MB Boardwalk, or the members of R&R
205. The Lawyers failed to meet the minimum standard of conduct and thereby
breached their fiduciary duties of loyalty when the Lawyers agreed to distribute funds
directly to Jack Rabon and Mr. Jefferies rather than paying those funds to R&R and MB
206. The Lawyers failed to meet the minimum standard of conduct and thereby
breached their fiduciary duties to R&R and MB Boardwalk, or the members of R&R and
MB Boardwalk, in such other particulars as the evidence in this case may demonstrate.
207. As a direct, proximate, and foreseeable cause of the Lawyers’ actions and
inactions breaching their fiduciary duties, R&R and MB Boardwalk, or the members of
208. Based on the Lawyers’ clear and serious breach of their fiduciary duties of
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loyalty, the Lawyers should be ordered to disgorge any benefit obtained.
209. Based on the Lawyer’s clear and serious breach of their fiduciary duties of
loyalty, punitive damages should be awarded in an amount determined by the jury at the
210. WHEREFORE, Plaintiffs pray for judgment on this cause of action against the
Lawyers for actual, special, consequential, and incidental damages suffered, pre-
judgment interest, legal fees, punitive damages, and such other relief as the Court may
211. The foregoing factual and jurisdictional allegations are reiterated and realleged
212. MCNAIR entered into a contract or several contracts with Plaintiffs, under the
terms of which McNair agreed and contracted to provide competent and prudent legal
services.
213. Plaintiffs fulfilled all necessary preconditions, if any, of the one or several
214. MCNAIR breached the Contract by failing to provide competent and prudent legal
services; failing to protect and accurately account for funds belonging to Plaintiffs, failing
complained of herein, and other such failures that were explicit or implicit terms of the
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determined by the jury at the trial of this case.
216. WHEREFORE, Plaintiffs pray for judgment on this cause of action against the
Lawyers for actual, special, consequential, and incidental damages suffered, pre-
judgment interest, legal fees, and such other relief as the Court may deem reasonable
and proper.
217. The foregoing factual and jurisdictional allegations are reiterated and realleged
218. At all times herein, Jefferies and Golding were employed by McNair.
Defendant had a duty of reasonably supervising and directing the actions of Jefferies.
220. Given Golding’s position as the senior lawyer, she had a duty to reasonably
supervise and direct the actions of Jefferies. Golding’s actions and/or failures in these
221. Jefferies or Golding or both perpetrated the wrongs, acts and omissions
222. McNair or Golding or both failed to prevent Jefferies from perpetrating the
223. McNair was and is under a duty to exercise care to control Jefferies or Golding
or both while each or both were acting outside the scope of employment; including a duty
to exercise care and control over the lawyer trust account that Jefferies or Golding or both
utilized to perpetrate the wrongs discussed throughout this Complaint; and a duty to
monitor or act on the actions taken by Jefferies or Golding or both as reflected in the
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correspondence, other documents and time and billing information Jefferies or Golding of
both recorded and submitted through McNair for approval and issuance to the Estate,
224. Jefferies or Golding or both intentionally harmed Plaintiffs - each or all - when
upon the premises of McNair; or when using chattel of McNair, where McNair knew or
had reason to know that it could control Jefferies or Golding or both, and McNair knew or
should have known of the necessity and opportunity for exercising such control.
supervising Jefferies to correct or prevent Jefferies from perpetrating the wrongs, acts
and omissions attributed to him throughout this Complaint, and other actions and
omissions known to Ms. Golding and Mr. Jefferies and expected to be uncovered in
discovery of this matter, Plaintiffs suffered actual, consequential and incidental damages
226. WHEREFORE, Plaintiffs pray for judgment on this cause of action McNair for
legal fees, punitive damages, and such other relief as the Court may deem reasonable
and proper.
TRIAL BY JURY
227. Plaintiffs request and demand a trial by jury on all claims so triable.
EXPERT AFFIDAVIT
228. Pursuant to S.C. CODE ANN. § 15-36-100(B), because this Complaint is being
filed when there is a good faith basis to believe the expiration of the statute of limitations
is imminent or that the Defendants may argue that the expiration of the statute of
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limitations may expire, it is filed without an affidavit by expert licensed by the Supreme
Court of the State of South Carolina specifying at least one negligent act or omission
claimed to exist and the factual basis for each claim based on the available evidence at
the time of the filing of the affidavit. Plaintiff intends to file an Amended Complaint with
WHEREFORE, Plaintiffs pray for judgment against Defendants, David Hicks, Esq.,
MACDONALD & HICKS, P.A., Lane D. Jefferies, Esq., Henrietta Ms. Golding, ESQ., and
MCNAIR; jointly and severally, for all actual damages, consequential damages, and
incidental damages, punitive damages, and for prejudgment interest, all in an amount to
be more specifically proven at trial, and the costs of this action, and for such other and
further relief as this Honorable Court may deem just and proper.
Respectfully submitted,
s/ Thomas A. Pendarvis_____
Thomas A. Pendarvis (SC Bar # 064918)
Christopher W. Lempesis, Jr. (SC Bar #77012)
710 Boundary Street, Unit A-1
Beaufort, SC 29902-4188
843.524.9500
Thomas@PendarvisLaw.com
Chris@PendarvisLaw.com
s/Joseph R. Weston
Joseph R. Weston (SC Bar # 066430)
Stephanie P. Anthony (SC Bar #101833)
P.O. Box 1992
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Mt. Pleasant SC 29465-1992
843.881.4995
joe@wcalawfirm.com
stephanie@wcalawfirm.com
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