Justia Real Estate & Property Law Opinion Summaries

This case arose from a construction defect suit brought by a number of homeowners (Petitioners) against their homebuilder and general contractor, Lennar Carolinas, LLC (Lennar). Lennar moved to compel arbitration, citing the arbitration provisions in a series of contracts signed by Petitioners at the time they purchased their homes. Petitioners pointed to purportedly unconscionable provisions in the contracts generally and in the arbitration provision specifically. Citing a number of terms in the contracts, and without delineating between the contracts generally and the arbitration provision specifically, the circuit court denied Lennar's motion to compel, finding the contracts were grossly one-sided and unconscionable and, thus, the arbitration provisions contained within those contracts were unenforceable. The court of appeals reversed, explaining that the United States Supreme Court's holding in Prima Paint Corp. v. Flood & Conklin Manufacturing Co. forbade consideration of unconscionable terms outside of an arbitration provision (the Prima Paint doctrine). The court of appeals found the circuit court's analysis ran afoul of the Prima Paint doctrine as it relied on the oppressive nature of terms outside of the arbitration provisions. While the South Carolina Supreme Court agreed that the circuit court violated the Prima Paint doctrine, it nonetheless agreed with Petitioners and found the arbitration provisions, standing alone, contained a number of oppressive and one-sided terms, thereby rendering the provisions unconscionable and unenforceable under South Carolina law. The Court further declined to sever the unconscionable terms from the remainder of the arbitration provisions, as "it would encourage sophisticated parties to intentionally insert unconscionable terms—that often go unchallenged—throughout their contracts, believing the courts would step in and rescue the party from its gross overreach. ... Rather, we merely recognize that where a contract would remain one-sided and be fragmented after severance, the better policy is to decline the invitation for judicial severance." View "Damico v. Lennar Carolinas, LLC et al." on Justia Law

A church entity became the legal or beneficial owner of certain real and personal property after The Protestant Episcopal Church in the Diocese of South Carolina (Disassociated Diocese) and thirty-six individual Episcopal Parishes (Parishes) disassociated from The Episcopal Church in the United States of America (National Church). The dispute presented two broad questions to the South Carolina Supreme Court: (1) who owned the real estate long-owned and occupied by the individual Parishes; and (2) who was the beneficiary of a statutorily-created trust controlled by the Trustees of The Protestant Episcopal Church in South Carolina (Trustees). The National Church and the Episcopal Church in South Carolina (Associated Diocese) contended the South Carolina Supreme Court made a final decision as to who owned all the disputed property when the Court heard the case in 2015 and each Justice sitting on the Court in 2015 issued a separate opinion in 2017. The Parishes disagreed the Court made a final decision as to the real property occupied by twenty-nine Parishes, and contended the Court left much to be decided by the circuit court as to these Parishes. The Disassociated Diocese and the Trustees agreed the Supreme Court made a final decision as to real and personal property the Trustees formerly held in trust for the Lower Diocese—the second question—but they disagree what that decision was. To the second question presented, the Supreme Court agreed with the National Church and the Associated Diocese that the 2017 Court decided the real and personal property held in trust by the Trustees was held for the benefit of the Associated Diocese. As to the first question, the Supreme Court determined the 2017 Court did not make a final decision as to the real property owned by the twenty-nine Parishes. As to some Parishes, the Court held the circuit court correctly ruled the individual Parish retained ownership of its property. As to other Parishes, those Parishes created an irrevocable trust in favor of the National Church and its diocese, now the Associated Diocese. As to the Parishes that created a trust, the Court directed that appropriate documentation be filed in the public record indicating the National Church and the Associated Diocese now owned that real estate. From its decision here, there will be no remand. "The case is over." View "The Protestant Episcopal Church v. The Episcopal Church" on Justia Law

In consolidated appeals filed by Greenville County, South Carolina, the issue central to the cases involved a zoning dispute between the County and Greenville Bistro, LLC, d/b/a Bucks Racks & Ribs. Greenville Bistro filed suit against the County to enjoin the County from enforcing an ordinance to deny Greenville Bistro's desired method of operating Bucks Racks & Ribs. Citing other ordinances, the County counterclaimed and moved to enjoin Greenville Bistro from operating Bucks as a sexually oriented business. Both appeals concerned the legality of Greenville Bistro operating Bucks as a restaurant with the added feature of scantily clad exotic dancers. The circuit court granted Greenville Bistro's motion for a temporary injunction, and the County appealed. While the County's appeal was pending, another circuit court denied the County's motion for temporary injunctive relief, ruling that in light of the County's appeal it did not have jurisdiction to consider the County's motion. The South Carolina Supreme Court reversed both rulings, dissolved the injunction granted to Greenville Bistro, and held the County was entitled to injunctive relief. The case was remanded to the circuit court for further proceedings. View "Greenville Bistro, LLC. v. Greenville County" on Justia Law

Lucille Ray sued the City of Rock Hill, South Carolina (the City) for inverse condemnation, claiming her property was taken as a result of stormwater flowing through pipes under City streets and into a terra cotta pipe that ran underneath and behind her property. The circuit court granted summary judgment to the City, and the court of appeals reversed, holding a genuine issue of material fact existed as to whether the City engaged in an affirmative, positive, aggressive act sufficient to support Ray's claim. The South Carolina Supreme Court affirmed the court of appeals (as modified), and remanded the case back to the circuit court for a determination on the merits as to whether the City's reconnection of its three stormwater pipes to the catch basin and the resumed flow of water through the Pipe constituted an affirmative, positive, aggressive act causing damage to the Property over and above any damage that had occurred before the three pipes were severed and reconnected. "Given the posture of this case and the above discussion, Ray cannot recover for any damage to the Property caused by the flow of water though the Pipe before the City reconnected its three pipes to the catch basin in November 2012." View "Ray v. City of Rock Hill" on Justia Law

This action involves a dispute stemming from the removal of a drainage pipe running across neighboring properties. The pipe was part of an easement originally owned by the Seabrook Island Property Owners Association (SIPOA) and was intended to carry away stormwater from a road within the community, with a pipe running through the backyard portions of seven contiguous lots. Over the years, the pipe degraded and began draining standing water from the backyards of those seven lots. Nearly twenty years later, SIPOA installed a new drainage system for the road. At a property owner's request, SIPOA formally abandoned the easement, though the old, degraded pipe remained in place. Petitioners Paul and Susan McLaughlin later purchased one of the seven lots containing the old drainage pipe (Lot 22). After years of meetings and consultation with SIPOA and their neighbors, Petitioners removed the pipe and built a new house over the area in which the pipe was previously located. Respondents Richard and Eugenia Ralph owned the parcel next door to Petitioners (Lot 23). Following removal of the old pipe, Respondents claimed their backyard flooding became worse that it already was and sued Petitioners. A jury awarded Respondents $1,000 in "nominal" damages, and they appealed. The Court of Appeals reversed and remanded for a new trial on damages alone. The South Carolina Supreme Court reversed, finding the trial court did not err in any respect, thus reversing the appellate court's decision. View "Ralph v. McLaughlin" on Justia Law

Petitioners' real property was sold at a delinquent tax sale. They filed an action in circuit court to challenge the sale, and all parties consented to have the case referred to a special referee for trial. Petitioners agreed to allow defendants (respondents here) to present their evidence first. After the testimony of one witness, the county's tax collector, defendants moved to approve the sale. The special referee granted the motion. Petitioners objected, arguing they were not permitted to give their factual presentation of the case. The special referee denied the motion, and the court of appeals affirmed. On appeal to the South Carolina Supreme Court, petitioners argued they were deprived of due process, including the right to be heard and the right to present witnesses and other evidence. The Supreme Court granted the petition, dispensed with briefing, reversed the court of appeals, and remanded to the circuit court for a new trial. "The special referee made factual findings and issued judgment in the middle of a trial after hearing from only one witness. ... The law ... does not permit a court to issue judgment against a party before giving that party an opportunity to present evidence in support of her position." View "Halsey v. Simmons" on Justia Law

Appellant Don Weaver brought a declaratory judgment action to challenge the constitutionality of S.C. Code Ann. section 6-11-271 (2004), which addressed the millage levied in certain special purpose districts. Appellant owned property and was a taxpayer in the Recreation District, a special purpose district created to fund the operation and maintenance of parks and other recreational facilities in the unincorporated areas of Richland County, South Carolina. Appellant first argued section 6-11-271 was unconstitutional because it violated the South Carolina Constitution's prohibition on taxation without representation. Appellant next contended section 6-11-271 did not affect all counties equally and was, therefore, special legislation that was prohibited by the South Carolina Constitution. Appellant lastly argued section 6-11-271 was void because it violated Home Rule as set forth in the state constitution and the Home Rule Act. The circuit court found Appellant failed to meet his burden of establishing any constitutional infirmity. To this, the South Carolina Supreme Court concurred and affirmed judgment. View "Weaver v. Recreation District" on Justia Law

This case concerned accreting land along the South Carolina coast that owned by the Town of Sullivan. Petitioners Nathan and Ettaleah Bluestein and Theodore and Karen Albenesius (collectively, Petitioners) bought property in the Town that abutted the accreting land. Petitioners' properties were once considered oceanfront lots only a short distance from the beach, but due to accretion, the properties were now a substantial distance away. The accreting land was subject to a 1991 deed, which set forth certain rights and responsibilities respecting the condition of the property and the Town's duties concerning upkeep of the land. Petitioners were third party beneficiaries of the 1991 deed. Petitioners argued the 1991 deed mandated the Town keep the vegetation on the land in the same condition as existed in 1991, particularly as to the height of shrubs and vegetation. Conversely, the Town contended the 1991 deed granted it unfettered discretion to allow unchecked growth of the vegetation on the accreting land. The South Carolina Supreme Court determined all parties cherrypicked language from the 1991 deed to support their respective interpretations of the deed. But contrary to the holding of the court of appeals and the trial court's findings, the Supreme Court held the deed was “far from unambiguous;” because the 1991 deed is ambiguous in terms of the Town's maintenance responsibilities, the court of appeals erred in affirming the entry of summary judgment for the Town. As a result, the matter was remanded to the trial court for further proceedings. View "Bluestein v. Town of Sullivans Island" on Justia Law

Homeowners Devery and Tina Hale purchased their home (the Property) twenty-one years ago and made timely mortgage payments ever since, accruing over $60,000 in equity in the Property, which had a fair market value of $128,000. However, after failing to pay $250 in homeowners' association dues to Winrose Homeowners' Association, Inc. (the HOA), the HOA foreclosed on the Property, and a third-party purchaser, Regime Solutions, LLC (Regime), bought it for a pittance. The Hales challenged the judicial sale, arguing the winning bid price of approximately $3,000 was grossly inadequate compared to the value of the Property. The South Carolina Supreme Court found there were two methods used to determine whether a winning bid at a foreclosure is grossly inadequate. While it did not draw a bright-line rule requiring the use of one method over the other, here, Regime took no affirmative steps to assume the Hales' mortgage. As a result, in determining whether the purchase price was grossly inadequate, the Supreme Court found it would be wholly inappropriate to add the value of the mortgage to Regime's winning bid. "When the value of the mortgage is not added to Regime's winning bid, the bid shocks the conscience of the court." The Supreme Court therefore reversed the judicial sale and remanded to the master-in-equity. View "Winrose Homeowners' Association v. Hale" on Justia Law

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