Lovering v. Seabrook Island Property Owners Association

352 S.E.2d 707 (1987)

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Lovering v. Seabrook Island Property Owners Association

South Carolina Supreme Court
352 S.E.2d 707 (1987)

MP

Facts

Condominium-unit owners (plaintiffs) sued the condominium association and the developer (defendants) to challenge the validity of a special assessment imposed by the association to pay for bridge repairs and a beach-renourishment project. The assessment was based on the association’s calculation of the value received by each condominium-unit owner from the repairs and the completed renourishment, notwithstanding a provision in the bylaws that adjustments to annual maintenance charges had to be based on the property’s assessed value as fixed by the tax assessor. The association considered but rejected a plan to finance the costs of the repairs and the renourishment, The trial court granted summary judgment for the association and the developer. The court of appeals reversed after finding that the association’s actions were ultra vires (i.e., unlawful). The association and the developer appealed, arguing that the association’s power to levy the special assessment was an implied or incidental power of its authority under the condominium’s bylaws to maintain and preserve the amenities and values of the development and, alternatively, that the assessment was a permissible adjustment to its annual maintenance charges.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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