Seabrook Island Property Owners Association v. Pelzer

356 S.E.2d 411 (1987)

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Seabrook Island Property Owners Association v. Pelzer

South Carolina Court of Appeals
356 S.E.2d 411 (1987)

MP

Facts

The Seabrook Island Property Owners Association (the association) (plaintiff), a nonprofit corporation, was created to preserve the amenities of the Seabrook Island community and to maintain its roads, open spaces, and landscaping. Randolph Pelzer (defendant) owned two lots on Seabrook Island, one improved and one unimproved. The association sued Pelzer to collect unpaid maintenance assessments for 1984 on Pelzer’s two lots. Pelzer alleged that the assessments were invalid and counterclaimed for a refund of assessments that he had paid in previous years. The trial court entered judgment for the association on its claim and dismissed Pelzer’s counterclaim. Pelzer appealed, arguing argued that the association had been improperly assessing his properties based on a flat-fee system for the maintenance charges in violation of the restrictive covenants and bylaws, which required that the maintenance assessments be based on the value of the property fixed by the county tax assessor. The association argued that the bylaws, which permitted the association to set different rates for improved and unimproved property, authorized it to use a fixed rate for maintenance charges and that its flat-rate fees were reasonable and the result of the association’s business judgment.

Rule of Law

Issue

Holding and Reasoning (Bell, J.)

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