Lightner v. Hampton Hall Club, Inc.

February 2, 2017 by Justia

Hampton Hall Club, Inc. was a nonprofit organization in Beaufort County. Respondent Brad Lightner was a member of Hampton Hall, and filed this action individually, and on behalf of all others similarly situated against Defendants, alleging Defendants wrongfully collected and retained an admissions tax on its members' club and golf dues. After Respondent filed a motion for class certification, the State and the SCDOR ("Petitioners") filed a motion to dismiss pursuant to Rule 12(b)(6), SCRCP, or, in the alternative, to strike pursuant to Rule 12(f), SCRCP, to dismiss the State as a party and to stay discovery. In so moving, Petitioners asserted, inter alia, Respondent was required to exhaust the administrative remedies under the South Carolina Revenue Procedures Act ("Act") and was prohibited from proceeding as a class action against the SCDOR. The circuit court determined the Act was inapplicable to this case because the General Assembly intended to limit the Act's application to disputes with the SCDOR concerning property taxes, which both parties conceded were not at issue. Thus, contrary to Petitioners' assertions, Respondent was not required to exhaust the administrative remedies under the Act in order to proceed individually against all Defendants. The court, however, granted Petitioners' motion to dismiss the class action allegations, finding the Act, which it determined was inapplicable to this dispute, nevertheless prohibited Respondent from bringing a class action lawsuit against Petitioners. In sum, we hold the circuit court erred in finding the Act's application is limited to disputes with the SCDOR concerning property taxes. The Supreme Court affirmed in part and reversed in part. Because the Act was applicable to this case, Respondent was required to follow the administrative remedies under the Act and was prohibited from proceeding as a class action against Petitioners. The case was remanded for further proceedings. View "Lightner v. Hampton Hall Club, Inc." on Justia Law