Articles Posted in Real Estate & Property Law

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Respondent David Repko, the owner of two lots in Harmony Phase 2-D-1, commenced this action against the County alleging that the County negligently and grossly negligently failed to comply with or enforce its rules, regulations, and written policies governing its handling of a line of credit granted to a residential land developer in Harmony Township (part of Georgetown County, South Carolina). When the Developer began developing Harmony Phase 2-D-1 in 2006, the County determined it would allow the requirement of a financial guarantee to be satisfied by the Developer's posting of a letter of credit (LOC) to cover the remaining cost of completion of infrastructure. The South Carolina Supreme Court granted Georgetown County's petition for a writ of certiorari to review the court of appeals' decision in Repko v. County of Georgetown, 785 S.E.2d 376 (Ct. App. 2016). Georgetown County argued the court of appeals erred by: (1) construing the County Development Regulations as creating a private duty of care to Respondent David Repko; (2) holding the South Carolina Tort Claims Act1 (TCA) preempted certain language contained in the Regulations; (3) applying the "special duty" test; (4) finding Brady Development Co., Inc. v. Town of Hilton Head Island, 439 S.E.2d 266 (1993), distinguishable from this case; (5) reversing the trial court's ruling that the County was entitled to sovereign immunity under the TCA; and (6) rejecting the County's additional sustaining ground that Repko's claim was barred by the statute of limitations. The Supreme Court addressed only issue (5) and held the court of appeals erred in reversing the trial court's determination that the County was immune from liability under subsection 15-78- 60(4) of the TCA (2005); the Court therefore reversed the court of appeals and reinstated the directed verdict granted to the County by the trial court. View "Repko v. County of Georgetown" on Justia Law

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In 1999, Ronnie and Jeanette Dennis purchased property on Callawassie Island. At that time, the Dennises joined a private club known as the Callawassie Island Club, and paid $31,000 to become "equity members." The Club's bylaws stated "Any equity member may resign from the Club by giving written notice to the Secretary. Dues, fees, and charges shall accrue against a resigned equity membership until the resigned equity membership is reissued by the Club." In 2010, the Dennises decided they no longer wanted to be in the Members Club, so they submitted a "letter of resignation" and stopped making all payments. The Club filed a breach of contract action against the Dennises, alleging the unambiguous terms of the membership documents required the Dennises to continue to pay their membership dues, fees, and other charges until their membership was reissued. The Dennises denied any liability, alleging they were told by a Members Club manager that their maximum liability would be only four months of dues, because after four months of not paying, they would be expelled. The Dennises also alleged the membership arrangement violated the South Carolina Nonprofit Corporation Act. Finding no ambiguity in the Club bylaws, the South Carolina Supreme Court reversed the court of appeals and reinstated summary judgment for all unpaid dues, fees and other charges. View "Callawassie Island Club v. Dennis" on Justia Law

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In 1999, homeowners Renaul and Karen Abel contracted with Gilliam Construction Company, Inc. for the construction of a house in an upscale Landrum subdivision. In constructing the house, Gilliam used windows manufactured by Eagle & Taylor Company d/b/a Eagle Window & Door, Inc. (Eagle & Taylor). Sometime after the home was completed, the Abels discovered damage from water intrusion around the windows. The Abels brought suit against Gilliam for the alleged defects and settled with Gilliam and its insurer, Nationwide Mutual, for $210,000. Nationwide and Gilliam (collectively Respondents) then initiated this contribution action seeking repayment of the settlement proceeds from several defendants, including Eagle, alleging it was liable for the obligations of Eagle & Taylor. The narrow question presented by this case on appeal to the South Carolina Supreme Court was whether Eagle Window & Door, Inc. was subject to successor liability for the defective windows manufactured by a company who later sold its assets to Eagle in a bankruptcy sale. The Court determined answering that question required a revisit the Court's holding in Simmons v. Mark Lift Industries, Inc., 622 S.E.2d 213 (2005) and for clarification of the doctrine of successor liability in South Carolina. The court of appeals affirmed the trial court's holding that Eagle is the "mere continuation" of the entity. The Supreme Court reversed because both the trial court and court of appeals incorrectly applied the test for successor liability. View "Nationwide Mutual Insurance v. Eagle Window & Door" on Justia Law

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At issue before the South Carolina Supreme court was the propriety of the grant of partial summary judgment in a condemnation action. The court of appeals affirmed the circuit court's ruling that the landowner, David Powell, was not entitled to compensation for any diminution in value of his remaining property due to the rerouting of a major highway which previously was easily accessible from his property. South Carolina Department of Transportation (SCDOT) condemned a portion of Powell's 2.5 acre property in connection with its upgrade to U.S. Highway 17 Bypass (the Bypass) near the Backgate area of Myrtle Beach. His unimproved parcel, located on the corner of Emory Road and Old Socastee Highway, was originally separated from the Bypass by a power line easement and a frontage road; access to that major thoroughfare was via Emory Road, which intersected with the Bypass. Because Powell's property was zoned "highly commercial," his easy access to the Bypass significantly enhanced its value. The Supreme Court reversed and remanded for a new trial. The record contained evidence the condemnation of Powell's property, the closure of the intersection, and the curving of the frontage road over the condemned parcel were all integrally connected components of the project, creating a material issue of fact as to which of these acts was a direct and proximate cause of the taking, thus rendering summary judgment improper. Employing the clear language of our just compensation statute, the Court held that a jury should have been permitted to hear evidence on the diminution in value to the remaining property. View "SCDOT v. Powell" on Justia Law

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The issue this case presented for the South Carolina Supreme Court’s review centered on whether Petitioner David Gooldy was entitled to an implied easement where his deed incorporated by reference a plat that indicated a road, marked "50' Road," bordered the adjoining property owned by Respondent Storage Center-Platt Springs, LLC (Storage Center). The master-inequity held Gooldy was entitled to the presumption of an implied easement, which the Storage Center failed to rebut, but the court of appeals reversed, holding the presumption did not apply and that no evidence supported the master's order. The Supreme Court concluded the appellate court erred in its conclusion that the master’s decision was not supported by evidence in the record. The Court determined parties to the 1986 conveyance intended to create an easement. The implied easement encumbered the Storage Center's property as the Loflin Plat was duly recorded in its chain of title. The master’s order was reinstated. View "Gooldy v. The Storage Center" on Justia Law

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The issue this case presented for the South Carolina Supreme Court’s review centered on whether Petitioner David Gooldy was entitled to an implied easement where his deed incorporated by reference a plat that indicated a road, marked "50' Road," bordered the adjoining property owned by Respondent Storage Center-Platt Springs, LLC (Storage Center). The master-inequity held Gooldy was entitled to the presumption of an implied easement, which the Storage Center failed to rebut, but the court of appeals reversed, holding the presumption did not apply and that no evidence supported the master's order. The Supreme Court concluded the appellate court erred in its conclusion that the master’s decision was not supported by evidence in the record. The Court determined parties to the 1986 conveyance intended to create an easement. The implied easement encumbered the Storage Center's property as the Loflin Plat was duly recorded in its chain of title. The master’s order was reinstated. View "Gooldy v. The Storage Center" on Justia Law

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The Respondents were the Protestant Episcopal Church in the Diocese of South Carolina (Disassociated Diocese); the Trustees of the Protestant Episcopal Church in South Carolina (Trustees); and thirty-six individual parishes that have aligned themselves with the Disassociated Diocese (Parishes). The Appellants were The Episcopal Church a/k/a The Protestant Episcopal Church in the United States of America (TEC) and The Episcopal Church in South Carolina, the diocese that remained affiliated with the TEC (Associated Diocese). This case was an appeal of a circuit court order holding that the Appellants have no legal or equitable interests in certain real and personal property located in South Carolina, and enjoining the Appellants from utilizing certain disputed service marks and names. “Overly simplified,” the issue in this case was whether the Disassociated Diocese, the Trustees, and the Parishes or appellant Associated Diocese and its parishes "owned" the real, personal, and intellectual property that the Appellants alleged was held in trust for the benefit of TEC in 2009. After a lengthy bench trial, and based upon the application of "neutral principles of law," the circuit court found in favor of the Respondents on property and the service mark causes of action. The circuit court order was reversed in part, and affirmed in part, with each South Carolina Supreme Court justice writing separately. Justice Hearn joined Acting Justice Pleicones and Chief Justice Beatty in reversing the trial court as to the twenty-nine parishes that documented their reaffirmation to the National Church. Chief Justice Beatty joined Acting Justice Toal and Justice Kittredge with respect to the remaining seven parishes. Four justices agreed the Dennis Canon created an enforceable trust, but Justice Kittredge disagreed with the majority and would have found the trust was revoked at the time of the schism. Moreover, though Acting Justice Pleicones and Justice Hearn believed ecclesiastical deference was required in this case, both opinions found all thirty-six parishes acceded to the Dennis Canon such that a legally cognizable trust was created in favor of the National Church. View "Protestant Episcopal Church v. Episcopal Church" on Justia Law

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The Respondents were the Protestant Episcopal Church in the Diocese of South Carolina (Disassociated Diocese); the Trustees of the Protestant Episcopal Church in South Carolina (Trustees); and thirty-six individual parishes that have aligned themselves with the Disassociated Diocese (Parishes). The Appellants were The Episcopal Church a/k/a The Protestant Episcopal Church in the United States of America (TEC) and The Episcopal Church in South Carolina, the diocese that remained affiliated with the TEC (Associated Diocese). This case was an appeal of a circuit court order holding that the Appellants have no legal or equitable interests in certain real and personal property located in South Carolina, and enjoining the Appellants from utilizing certain disputed service marks and names. “Overly simplified,” the issue in this case was whether the Disassociated Diocese, the Trustees, and the Parishes or appellant Associated Diocese and its parishes "owned" the real, personal, and intellectual property that the Appellants alleged was held in trust for the benefit of TEC in 2009. After a lengthy bench trial, and based upon the application of "neutral principles of law," the circuit court found in favor of the Respondents on property and the service mark causes of action. The circuit court order was reversed in part, and affirmed in part, with each South Carolina Supreme Court justice writing separately. Justice Hearn joined Acting Justice Pleicones and Chief Justice Beatty in reversing the trial court as to the twenty-nine parishes that documented their reaffirmation to the National Church. Chief Justice Beatty joined Acting Justice Toal and Justice Kittredge with respect to the remaining seven parishes. Four justices agreed the Dennis Canon created an enforceable trust, but Justice Kittredge disagreed with the majority and would have found the trust was revoked at the time of the schism. Moreover, though Acting Justice Pleicones and Justice Hearn believed ecclesiastical deference was required in this case, both opinions found all thirty-six parishes acceded to the Dennis Canon such that a legally cognizable trust was created in favor of the National Church. View "Protestant Episcopal Church v. Episcopal Church" on Justia Law

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The Surface Water Withdrawal, Permitting, Use, and Reporting Act regulated surface water withdrawals in South Carolina. Surface water is defined as "all water that is wholly or partially within the State . . . or within its jurisdiction, which is open to the atmosphere and subject to surface runoff, including, but not limited to, lakes, streams, ponds, rivers, creeks, runs, springs, and reservoirs . . . ." Agricultural users are treated differently under the Act. Plaintiffs jointly filed this action against DHEC in Barnwell County, challenging the Act's registration system for agricultural users, contending, amongst other things, that the Act’s provisions were an unconstitutional taking, a violation of due process, and a violation of the public trust doctrine. The circuit court granted summary judgment against the plaintiffs on the grounds the case did not present a justiciable controversy, both because the plaintiffs lacked standing and the dispute was not ripe for judicial determination. Finding no reversible error with that holding, the South Carolina Supreme Court affirmed. View "Jowers v. SCDHEC" on Justia Law

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The South Carolina Supreme Court answered two certified questions of South Carolina law, posed by the U.S. District Court for the District of South Carolina. These questions arose from two sets of litigation (“Fullbright” and “Chenard”) at the federal district court involving individuals (collectively, Plaintiffs) who entered into contracts with developers (collectively, Defendants) to purchase interests in vacation time sharing plans (timeshare plans) for real estate on Hilton Head Island. The federal court asked the Supreme Court whether: (1) the South Carolina Real Estate Commission had exclusive jurisdiction to determine whether there was a violation of the state Vacation Time Sharing Plans Act; (2) whether the Commission’s determination of a violation of the Timeshare Act was a condition precedent to a purchaser suing to enforce the Act; and (3) whether the Commission’s determinations as to whether the Timeshare Act was violated was binding on courts. The Supreme Court answered the first two questions in the negative; the Court answered the third question “no” too, provided the Commission’s decision had not bee subjected to judicial review. View "Fullbright v. Spinnaker Resorts" on Justia Law