SC Public Interest Foundation v. Oconee County
CourtSupreme Court of South Carolina
Date FiledSeptember 9, 2026
Docket2025-000790
StatusPublished
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Full Opinion
THE STATE OF SOUTH CAROLINA
In The Supreme Court
South Carolina Public Interest Foundation, Jim Mann,
David Dial, Rachel Moore, Terri Meyerring, Carl
Meyerring, Doug Muzik, Bruce Burrell, India Lancaster,
John Wagner, Gwen McPhail, Lillian Lusk, and Linda
Love, on behalf of all others similarly situated,
Appellants-Respondents,
v.
Oconee County, Respondent-Appellant.
Appellate Case No. 2025-000790
Appeal from Oconee County
R. Lawton McIntosh, Circuit Court Judge
Opinion No. 28352
Heard June 16, 2026 – Filed September 9, 2026
AFFIRMED AS MODIFIED
James G. Carpenter, of Carpenter Law Firm, PC, of
Greenville, for Appellants-Respondents.
William W. Wilkins and Lane Whittaker Davis, of
Wilkins Davis Law Firm, and David Curry Dill, of
Maynard Nexsen PC, all of Greenville, for Respondent-
Appellant.
Frank Paul Calamita III, of Aqualaw PLC, of Richmond,
VA, for the South Carolina Water Quality Association
Amicus Curiae.
JUSTICE JAMES: The plaintiffs filed this action in Oconee County seeking an
injunction blocking Oconee County's implementation of an ordinance authorizing
the issuance of $25 million in general revenue bonds for the purpose of "designing,
acquiring, constructing, installing, equipping, or rehabilitating various capital
projects, including wastewater improvements and related equipment" in the
southernmost portion of Oconee County. The plaintiffs claim the ordinance violates
article X, section 12 of the South Carolina Constitution. The County contends (1)
the plaintiffs do not have standing to bring this action, (2) the action was not timely
commenced, and (3) the ordinance is constitutional. The County moved to dismiss.
The circuit court ruled in favor of the plaintiffs on the County's first two contentions
but granted the motion to dismiss, ruling the ordinance is constitutional. The
plaintiffs appealed and the County cross appealed.
We affirm the circuit court as modified and hold the plaintiffs' action is barred
by the twenty-day statute of limitations set forth in South Carolina Code section
11-15-30 (2011). Consequently, we need not address standing or the
constitutionality of the ordinance.
I.
Oconee County Ordinance 2023-13 authorizes the issuance of $25 million in
general revenue bonds to fund the third and final phase of a sewer and wastewater
treatment project to be located in and serve the southernmost tip of Oconee County,
specifically where Interstate 85 passes through the county. Section 11 of the
ordinance provides for an ad valorem tax to be levied and collected annually on all
taxable property in the county. The money collected would go into a sinking fund
to be used for repayment of the debt. The ordinance was adopted on September 5,
2023.
Section 11-15-10 of the South Carolina Code provides that when a county
issues the type of bonds issued in this case, the county "shall make a full record of
the proceedings connected with such bond issue, and a copy of the record of such
proceedings shall be filed and indexed in the office of the clerk of court of the county
in a special book to be furnished therefor." S.C. Code Ann. § 11-15-10 (2011). On
November 8, 2023, the Oconee County Clerk of Court filed a certificate confirming
the filing of "a true, correct, and full record of proceedings in connection with" the
bonds. This action was commenced over four months later on March 17, 2024.
II.
Article X, section 12 of the South Carolina Constitution provides:
No law shall be enacted permitting the incurring of bonded
indebtedness by any county for sewage disposal or treatment, fire
protection, street lighting, garbage collection and disposal, water
service or any other service or facility benefitting only a particular
geographical section of the county unless a special assessment, tax or
service charge in an amount designed to provide debt service on bonded
indebtedness or revenue bonds incurred for such purposes shall be
imposed upon the area or persons receiving the benefit therefrom.
S.C. Const. art. X, § 12. The plaintiffs claim the ordinance violates this provision
because the ordinance permits the incurring of bonded indebtedness for sewage
disposal or treatment benefiting only the southernmost portion of Oconee County,
while also providing in section 11 that there shall be levied and collected annually
an ad valorem tax on all taxable property in the county.
Section 11-15-30 of the South Carolina Code provides:
No action shall be commenced on account of the issuance of any such
bonds after the expiration of twenty days from the date of the filing and
indexing of such records as prescribed by §§ 11-15-10 and 11-15-20,
and such bonds so issued, when in the hands of a bona fide purchaser
for value, shall be incontestable, but the period within which such
actions may be commenced shall not begin to run until such records
have been filed as herein prescribed.
S.C. Code Ann. § 11-15-30.
The Oconee County Clerk of Court's November 8, 2023, certificate evidenced
the filing and indexing of a "full record of the proceedings connected with such bond
issue" as required by section 11-15-10.
III.
The plaintiffs contend the twenty-day limitations period does not apply
because they did not bring this action "on account of the issuance of" the bonds.
They claim they brought the action to contest how the bond proceeds would be used.
In its cross appeal (actually the assertion of additional sustaining grounds), the
County contends the action is time barred. We agree with the County.
"The primary rule of statutory construction is to ascertain and give effect to
the intent of the General Assembly." Amisub of S.C., Inc. v. S.C. Dep't of Health &
Env't Control, 407 S.C. 583, 597, 757 S.E.2d 408, 416 (2014) (citing Town of Mt.
Pleasant v. Roberts, 393 S.C. 332, 342, 713 S.E.2d 278, 283 (2011)). "Where the
statute's language is plain, unambiguous, and conveys a clear, definite meaning, the
rules of statutory interpretation are not needed and the court has no right to impose
another meaning." Town of Mt. Pleasant, 393 S.C. at 342, 713 S.E.2d at 283 (citing
Gay v. Ariail, 381 S.C. 341, 345, 673 S.E.2d 418, 420 (2009)).
A.
Two South Carolina appellate decisions reference the language in section
11-15-30. Morgan v. Feagin, 230 S.C. 315, 95 S.E.2d 621 (1956), involved a
challenge to the validity of school bonds after approval from voters in a special
election. The applicable statute of limitations required such an action to be brought
within thirty days from the date of the filing with the clerk of court of a certified
copy of the school board trustees' resolution declaring the results of the election. Id.
at 317, 95 S.E.2d at 622. Referencing the prevalence and necessity of several short
statutes of limitations, including the predecessor to section 11-15-30, we observed:
Similar short statutes of limitation, applicable to actions which question
the proceedings upon the issuance of municipal and other bonds have
been of force in this State for many years, apparently without challenge
heretofore. Code of 1952, Sec. 1-645, twenty days; Sec. 21-976, thirty
days; and Sec. 47-842, thirty days. The practical necessity of them is
obvious. Purchasers of bonds could hardly be found if the bonds were
subject in their hands to attack for alleged illegality in the proceedings
upon the issuance of them. Furthermore, it is within common
knowledge that sales of bonds are frequently timed to take advantage
of a favorable market, which might well be hindered by long delay.
Id. (emphasis added).
Citing Morgan, the County argues that ignoring the time bar of section
11-15-30 would jeopardize the ability of the County and other local government
bodies to effectively use bonded indebtedness to finance public services. The
County argues the uncertainty resulting from protracted legal battles ensuing after
closure of the twenty-day contestability period would chill prospective bond
purchasers and impede local governments from availing themselves of favorable
bond markets.
In Berry v. McLeod, the court of appeals held the twenty-day limitations
period in section 11-15-30 barred a legal malpractice and civil conspiracy suit by
town residents against the town's former corporate counsel and bond counsel. 328
S.C. 435, 440, 492 S.E.2d 794, 797 (Ct. App. 1997). The residents alleged counsel
committed legal malpractice in handling a town revenue bond (issued to fund
construction and installation of a sewer system) by conspiring with a developer to
benefit his private development. Id. The action was brought more than twenty days
after the record required by section 11-15-10 was filed with the Aiken County Clerk
of Court, and the residents conceded the bond was incontestable when the suit was
brought. Id. at 440-41, 492 S.E.2d at 797. The residents alleged counsel
misrepresented a large septic system as an existing sewer system, which allowed the
town to pass the bond ordinance without holding a referendum. Id. at 441, 492
S.E.2d at 797. The residents also alleged counsel misrepresented the true financial
ramifications of the bond by misleading town council and the residents about its
economic viability and by assuring them connection to the sewer system would be
optional. Id. The residents claimed damages in the form of excessive, mandatory
tap-in and user fees, depreciation to their property resulting from the bond
indebtedness and obligations, and the loss of their right to vote on the issue. Id.
The trial court dismissed the action, ruling the twenty-day statute of
limitations in section 11-15-30 applied. Id. at 442-44, 492 S.E.2d at 798-99. The
court of appeals noted that according to the plain and ordinary meaning of the statute,
if an action is "commenced on account of the issuance" of a bond within the meaning
of section 11-15-30, the action must be commenced within twenty days after the
documents related to the bond were filed pursuant to section 11-15-10. Id. at 443,
492 S.E.2d at 798. The court of appeals explained the suit was undeniably
commenced more than twenty days after the filing of the documents, and, therefore,
to the extent the causes of action were "commenced on account of the issuance of a
bond," the suit was barred. Id. The residents acknowledged the incontestability of
the bonds themselves but argued they and/or the town suffered damages because of
the bond obligations and the economic burden placed on them now that the bonds
are incontestable. Id.
The court of appeals held that under section 11-15-30 and Morgan, the
residents were time barred from "attacking the legality of the bond proceedings,
which includes attacking the underlying factual basis for the bond or the procedure
employed for its passage." Id. at 444, 492 S.E.2d at 799. The court concluded its
ruling was "consistent with the policy considerations surrounding short statutes of
limitation involving bonds, as set forth in Morgan." 1 Id.
B.
The County contends we considered and rejected an almost identical argument
to plaintiffs' in South Carolina Public Interest Foundation v. Calhoun County
1
The court of appeals also held that to the extent the residents' claim for damages
may be considered separate from an action "on account of the issuance of" the bond,
the action was still barred by the three-year statute of limitations for legal
malpractice actions. Id. at 444-46, 492 S.E.2d at 799-800.
Council, 432 S.C. 492, 854 S.E.2d 836 (2021). In Calhoun County Council, we
addressed the thirty-day limitations period set forth in subsection 4-10-330(F) of the
Capital Project Sales Tax Act (the Act). Id. at 494, 854 S.E.2d at 836. Calhoun
County voters approved a referendum imposing a penny tax to fund a list of fifteen
projects. Id. at 494, 854 S.E.2d at 836-37. Nearly five months later, SCPIF and two
taxpayers (together, "SCPIF") filed suit, contending four of the projects were not
authorized by the Act. Id. at 494, 854 S.E.2d at 837.
Calhoun County Council argued the thirty-day statute of limitations in
subsection 4-10-330(F) of the Act had expired and SCPIF's action was time barred.
Id. Subsection 4-10-330(F) provides:
Upon receipt of the returns of the referendum, the county governing
body must, by resolution, declare the results thereof. In such event, the
results of the referendum, as declared by resolution of the county
governing body, are not open to question except by a suit or proceeding
instituted within thirty days from the date such resolution is adopted.
Id. at 496, 854 S.E.2d at 838 (quoting S.C. Code Ann. § 4-10-330(F)).
SCPIF argued the thirty-day limitations period applied only to procedural
challenges, such as those alleging election irregularities. Id. at 496, 854 S.E.2d at
837. It argued that the statute of limitations did not apply because its lawsuit
pertained to the substance of the referendum—whether the projects fell outside the
scope of the Act. Id. at 496, 854 S.E.2d at 837-38. We explained subsection
4-10-330(F) contained no express language limiting "the results of the referendum"
to only procedural issues, such as a vote count. Id. at 497, 854 S.E.2d at 838. We
also noted that outside of the subsection pertaining to the statute of limitations, both
the title of and the rest of section 4-10-330 address the substance of the referendum.
Id. We concluded it would be inconsistent for the limitations period to apply only to
the vote count when section 4-10-330 addresses which projects are authorized to
receive penny tax funds. Id. Therefore, we held subsection 4-10-330(F) did not
distinguish between procedural and substantive challenges, and SCPIF's claims
regarding four of the projects were a direct challenge to the results of the referendum.
Id. at 499-500, 854 S.E.2d at 839-40. Thus, we held the lawsuit was time barred
because it focused on "the results of the referendum." Id. at 500, 854 S.E.2d at 840.
C.
In its amicus brief, the South Carolina Water Quality Association (SCWQA)
echoes the County's arguments and contends section 11-15-30's time bar is essential
to allow public utilities to timely and cost-effectively undertake public water and
sewer projects that are critical to protect public health and the environment and
support community growth and development. SCWQA maintains section 11-15-30
applies because the use of bond proceeds is clear at the time of the issuance of the
bonds and allowing an outside party to challenge the agreed-upon use of the bonds
outside the time window undermines the General Assembly's goal of providing
bondholders security in their investment in local governments. We agree.
IV.
We hold the plaintiffs' action in this case arose "on account of" the issuance
of the general revenue bonds. The words "on account of" plainly mean "because of"
the issuance of the bonds. The issuance of the bonds and their subsequent use are
inextricably linked, as the ordinance authorizes specific uses of the bond proceeds.
Seeking a judgment that the "use" of the bond proceeds is unconstitutional is a
challenge to the ordinance itself. As the court of appeals held in Berry, the residents
in that case were time barred from "attacking the legality of the bond proceedings,
which includes attacking the underlying factual basis for the bond or the procedure
employed for its passage." See Berry, 328 S.C. at 444, 492 S.E.2d at 799. Here, the
plaintiffs attack the underlying factual basis for the bonds and, therefore, the
twenty-day statute of limitations in section 11-15-30 applies. Because the plaintiffs
commenced this action more than twenty days after the County indexed and filed
the requisite record of the bond proceedings with the Oconee County Clerk of Court,
the plaintiffs' action is time barred. 2 Therefore, we affirm the circuit court as
modified.
AFFIRMED AS MODIFIED.
KITTREDGE, C.J., VERDIN, J., Acting Justices Thomas W. Cooper, Jr. and
William H. Seals, Jr.
2
We need not address the issue of standing or whether the ordinance is constitutional.
See Futch v. McAllister Towing of Georgetown, Inc., 335 S.C. 598, 613, 518 S.E.2d
591, 598 (1999) (holding an appellate court need not address remaining issues on
appeal when its determination of a prior issue is dispositive).