2022-001385
S.C. Ct. App.Jul 3, 2024Background
- Matthew Zetz sued Daniel Island Company, Inc. (Developer) and related entities after being injured in a park owned by a property owners’ association (the Association).
- Zetz alleged that the Developer remained liable based on its control, direct or indirect, over the park and Association.
- The park was owned and maintained by the Association for over 15 years prior to the lawsuit, with the Developer holding authority to appoint board members.
- The Association’s board operated independently of the Developer during this time.
- The circuit court granted summary judgment to the Developer, finding it did not exercise sufficient control for premises liability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability via control of park | Whoever controls park should be liable for injuries | Association not Developer controlled the park | Developer had no control = not liable |
| Liability via board selection | Board control by Developer creates liability | Board operated independently; ownership matters | No sufficient control by Developer |
| Fiduciary duty cases | Uses fiduciary duty precedent to argue control | Precedent irrelevant to premises liability | Fiduciary cases do not apply to premises liability |
| Corporate amalgamation | N/A (Plaintiff denied using) | Requires bad faith or wrongdoing, not present | No evidence for amalgamation liability |
Key Cases Cited
- Dunbar v. Charleston & W. C. Ry. Co., 211 S.C. 209 (S.C. 1947) (control, not ownership, determines premises liability)
- Walbeck v. I'On Co., LLC, 439 S.C. 568 (S.C. 2023) (developer fiduciary duty to HOA and members in transfer of amenities)
- Pertuis v. Front Roe Rests., Inc., 423 S.C 640 (S.C. 2018) (corporate liability requires evidence of bad faith or wrongdoing)