Justia South Carolina Supreme Court Opinion Summaries

The South Carolina Coastal Conservation League (League) and the South Carolina Department of Health and Environmental Control (DHEC) appealed an administrative law judge's (ALJ) order that allowed Respondent Kiawah Development Partners to construct erosion control devices in a critical zone on Captain Sam's Spit (Spit). Respondent owend a peninsula (Spit) which lies primarily south of Kiawah Island, surrounded on three sides by the Atlantic Ocean, Kiawah River and Captain Sam's Inlet which separates the Spit from Seabrook Island. For the past sixty years, the Spit has been "growing," accreting sand on the ocean side at a greater rate than it has been losing ground to erosion on the river side. Respondent leased oceanfront property near the neck to the Charleston County Parks and Recreation Commission, which operates Beachwalker Park there. Respondent sought a permit from DHEC to erect a 2,783 foot bulkhead/revetment combination along the Kiawah River, with the structure to begin at the neck, that is, at Beachwalker Park. DHEC authorized construction of the proposed erosion control device for 270 feet, beginning at Beachwalker Park, and denied the remaining portion of the request. Both the League and Respondent requested a contested case hearing before the ALJ, the League to protest the portion of the permit request which was granted, and Respondent to challenge the portion denied. The Appellants contended the ALJ failed to give the deference due DHEC's interpretation of the statutes and regulations, and further that he exceeded his authority in rewriting the permit, resulting in one with terms neither approved by DHEC nor sought by Respondent. Upon review of the ALJ's ruling and the applicable legal standards, the Supreme Court reversed and remanded, finding the ALJ's decision was "affected by numerous errors of law … beginning with the ALJ's misunderstanding of the applicable statutes, regulations, and public policies, and concluding with his erroneous effort to craft a new permit, one which has never been sought by respondent, nor reviewed by OCRM, and which he, in any case, lack[ed] the authority to issue." View "Kiawah Development v. So. Car. Dept. of Health & Environ. Cont." on Justia Law

Respondent Atlantic Coast Builders & Contractors, LLC brought an action against Petitioner Laura Lewis for negligent misrepresentation, unjust enrichment, and breach of contract.  In 2003, Petitioner, acting through a leasing agent, entered into a commercial lease whereby Respondent would lease from Petitioner property located in Beaufort County.  Although Petitioner represented in the lease that the property could lawfully be used for a building and construction office, the property was zoned "rural," meaning virtually all commercial uses were prohibited. Respondent occupied the property and made numerous alterations to it. A few months later, a Beaufort County zoning official served Respondent with notice and warning of two violations for Respondent's failure to obtain a certificate of zoning compliance before occupying the premises and its failure to obtain a sign permit before erecting a sign.  Respondent vacated the property, relocated its business, and ceased making rental payments. Respondent then instituted this action. Petitioner denied the allegations and made a counterclaim for breach of contract.  The master in equity entered judgment in favor of Respondent. The Court of Appeals affirmed, finding the master properly granted judgment in favor of Respondent. Upon review, the Supreme Court found that Petitioner did not appeal all grounds on which the master's judgment was based.  Namely, she did not challenge the determination that Respondent was entitled to recover based on unjust enrichment.  Accordingly, the Court affirmed the master-in-equity's and appellate court's decisions in favor of Respondent. View "Atlantic Coast Builders & Contractors v. Lewis" on Justia Law

Before the Supreme Court was whether an action for separate maintenance and support could be pursued when the parties were still living together. Eileen (Wife) and Clifford (Husband) Theisen were married in 1980. At the time of this action, the parties owned three properties: the marital home, which was in Wife's name, and two rental properties, both of which were in Husband's name. Wife had filed for divorce on two previous occasions, at least one of which was premised on the fault ground of physical cruelty. Wife filed this action for separate maintenance alleging Husband "has engaged and continue[ed] to engage in a course of conduct making it unreasonable and unfair to require [Wife] to continue to live with him." Husband counterclaimed for equitable distribution of the marital assets and debts as well as attorney's fees. Husband further made motions to dismiss Wife's complaint for lack of subject matter jurisdiction and failure to state a claim upon which relief can be granted. Both of Husband's motions were premised on the fact that Husband and Wife were not living separate and apart. He also moved to cancel the lis pendens placed on his rental properties. The court found it "ha[d] the jurisdiction to order separate support and maintenance, [but it did] not have the authority to do so when the parties [were] living together." Accordingly, the court dismissed her complaint. The Supreme Court affirmed the family court because Wife failed to allege that she and Husband were living separate and apart at the time of filing. Furthermore, because Wife's lis pendens and claim for attorney's fees hinged on the validity of her complaint, the Court found no error in the family court's denial of that relief. View "Theisen v. Theisen" on Justia Law

In 2004, Sherry Ray formed CFRE, a single-member limited liability company with herself as the sole member. CFRE conducts no business and was formed solely for estate planning and asset protection purposes. To that end, Ray declined to have CFRE taxed as a corporation and, in 2006, deeded the title in her home to it. Because there was a conveyance by deed of the property, the Greenville County Assessor automatically commenced a reassessment of the property for the 2007 tax year. Accordingly, the property was subjected to the default property tax ratio of six percent until CFRE could prove entitlement to the lower ratio under section 12-43-220. When CFRE sought the four percent ratio, the Assessor denied it eligibility. CFRE, LLC appealed the decision of the Administrative Law Court (ALC) that held that real estate owned by the company was not entitled to the residential tax ratio. Furthermore, CFRE argued the ALC erred in not sanctioning the Assessor for failing to respond to discovery requests from CFRE. While the Supreme Court held the ALC did not abuse its discretion in not sanctioning the Assessor, the Court reversed the ALC's conclusion regarding CFRE's entitlement to the legal residence tax ratio and remanded the case for further proceedings. View "CFRE v. Greenville County Assesor" on Justia Law

Appellant-Respondent Tykat, Inc. appealed an Administrative Law Court's (ALC) decision that upheld Clarendon County's tax assessment on real property Tykat leased from the South Carolina Public Service Authority.  Tykat contended the leased property was exempt from tax because the South Carolina Public Service Authority is constitutionally exempt from paying taxes and because Tykat's use of the property may be classified as a public purpose.  Clarendon County (through its Assessor) cross-appealed the Administrative Law Court's denial of its request for attorneys' fees and costs. Upon review of the lower court's record and the applicable legal authority, the Supreme Court affirmed the decision of the ALC.  Based on the limited challenge raised by Tykat, its leasehold interest was subject to ad valorem taxation under the plain language of section 12-37-950 of the South Carolina Code (2000):  "[t]hus, [the Court was] bound to apply the statute as written." Furthermore, the Court affirmed the denial of Clarendon County's request for attorneys' fees and costs. View "Clarendon County v. TYKAT" on Justia Law

In response to population growth and business development along U.S. Highway 278 in Beaufort County, the South Carolina Department of Transportation ("the Department") engaged experts for the purpose of streamlining the flow of traffic on that highway. The properties on the north side of Highway 278 agreed among themselves to share the cost of modifying and/or building private roads that would allow left turn access to all of their properties by way of the new median crossover.  The properties on the south side of the highway, however, were unable to reach such an agreement.  As a result, Appellant Hilton Head Automotive's (HHA) property—which is on the south side of the highway—lost its immediate left turn access to and from Highway 278.  Nonetheless, HHA retained direct right turn access to and from the eastbound lanes of Highway 278. HHA argued on appeal to the Supreme Court that the Department's reconfiguration of the median crossovers on U.S. Highway 278 was a taking because it deprived Appellant and its customers of the ability to enter or exit the highway by making a left turn.  Upon review of the applicable legal authority and the trial court record, the Supreme Court affirmed the decision of the circuit court granting summary judgment in favor of the Department of Transportation. View "Hilton Head Automotive, LLC v. So. Carolina Dept. of Transportation" on Justia Law

Appellant Matthew Kundinger received a default judgment against Louis and Linda Frazer (the Frazers) before the Frazers closed a refinance mortgage with Matrix Financial Services Corporation (Matrix).  In Matrix's foreclosure action, the master-in-equity granted Matrix equitable subrogation, giving the refinance mortgage priority over Appellant's judgment lien. Appellant counterclaimed, alleging his judgment had priority over Matrix's mortgage because it had been recorded first.  Matrix, attempting to gain the primary priority position, then sought to have the refinance mortgage equitably subrogated to the rights of its January 2001 mortgage.  The master-in-equity granted Matrix's request, and Appellant appealed that order. Upon review of the applicable legal authority, the Supreme Court found that a lender that refinances its own debt is not entitled to equitable subrogation.  The Court reversed the lower court's decision and remanded the case for further proceedings. View "Matrix Financial Services Corp. v. Frazer" on Justia Law

Carolina Chloride, Inc. sued Richland County alleging the County incorrectly advised it of the legal zoning classification of its property and that it lost a potential sale of the property due to the zoning issue.  The trial judge directed a verdict for the County on all of Carolina Chloride's claims.  The Court of Appeals reversed and remanded as to the claims for negligence and negligent misrepresentation but upheld the directed verdict as to Carolina Chloride's remaining claims. On appeal, the County argued the Court of Appeals erred in reversing the directed verdict in its favor on Carolina Chloride's claims for negligence and negligent misrepresentation. Upon review of the trial record and the applicable legal authority, the Supreme Court concluded that "[a]lthough it is certainly unfortunate that a mistake occurred in this case, Carolina Chloride had no legal right to rely solely upon the representations of County personnel and should have consulted the official record to determine the legal zoning classification of its property.  Carolina Chloride's owner and its broker are both experienced in business matters, but it appears that neither [the Company] nor his broker personally inspected the County's official records prior to making a sizable investment in developing the property."  The Court reversed the appellate court's decision with respect to the directed verdict as to the negligence and negligent misrepresentation claims. The Court affirmed the appellate court on all other matters. View "Carolina Chloride v. Richland County" on Justia Law

Albert Epstein sued Coastal Timber Co., Inc. (Coastal) for damages, alleging that Coastal cut and removed standing timber that was subject to mortgages he held on property he owned. The circuit court found Mr. Epstein failed to properly secure an interest in the timber under South Carolina's Uniform Commercial Code (UCC). Epstein appealed that decision, arguing that the circuit court erred in granting summary judgment to Coastal after finding his mortgages did not constitute a lien on the standing timber cut by Coastal. Upon review, the Supreme Court agreed with Mr. Epstein that the UCC did not convert all standing timber to goods and thereby divest him of his interest in the timber. The Court concluded that "the proper analysis is not one of cancellation but of priority. [...] any security interest later recorded on timber to be cut under a contract of sale would be junior to any existing interests. To hold otherwise would allow a mortgagor to unilaterally void an existing lien imposed by a mortgage on the real property, which includes the timber, simply by thereafter executing a contract to sell the timber." The Court reversed the circuit court and remanded the case for further proceedings. View "Epstein v. Coastal Timber Co., Inc." on Justia Law

Appellant Georgetown County League of Women Voters appealed an order that dismissed its action that sought a declaration that Respondent Smith Land Company had unlawfully filled wetlands and dismissed its request for an injunction requiring Smith to restore those wetlands. Respondent owns a .332 acre lot in Pawleys Island, .19 acres of which are isolated wetlands often referred to as Carolina Bays. Before developing the lot, Respondent notified both the Army Corps of Engineers and the Department of Health and Environmental Control (DHEC) of its plans. While the Corps cautioned respondent to notify DHEC before performing the work and respondent did so, it received no response from DHEC. Respondent then filled the wetlands. The League then filed suit seeking a declaratory judgment and related equitable relief. After a hearing, the circuit court held that DHEC did not have jurisdiction over isolated wetlands, that Respondent complied with all requirements before filling the wetlands, and that the League could not maintain a private suit under the South Carolina Pollution Control Act. Finding that the circuit court erred in holding that: (1) the DHEC lacked jurisdiction to regulate the wetlands; (2) Respondent did not violate the Act; and (3) the Act does not create a private cause of action, the Supreme Court reversed the reversed the case and remanded the case for further proceedings. View "Georgetown County League of Women Voters v. Smith Land Co." on Justia Law