The Court agreed to answer the following certified questions from the United States District Court for the District of South Carolina:
1. Does the South Carolina Real Estate Commission have exclusive jurisdiction to determine whether a violation of the South Carolina Vacation Time Sharing Plans Act1 (the Timeshare Act) has occurred?
2. Is the South Carolina Real Estate Commission’s determination of a violation of the Timeshare Act a condition precedent to a purchaser bringing a private cause of action to enforce the provisions of the Timeshare Act?
3. Are the South Carolina Real Estate Commission’s determinations as to whether the Timeshare Act was violated binding on courts of the judicial branch?
These questions arose from two sets of litigation (Fullbright and Chenard) in the federal district court involving individuals (collectively, Plaintiffs) who entered into contracts with developers (collectively, Defendants) to purchase interests in vacation time sharing plans (timeshare plans) for real estate on Hilton Head Island. As these cases present the same legal questions, they were consolidated for oral argument before the Court. We now resolve them in a single opinion.
Because the Timeshare Act contains an unambiguous provision authorizing a purchaser or lessee to bring a private action to enforce the Act, we are constrained to answer the first two questions “no.” We also answer the third question “no,” provided the South Carolina Real Estate Commission’s decision has not been subjected to judicial review.
I.
On June 24, 2014, Paula and Mark Fullbright (the Full-brights) entered into a contract with Spinnaker Resorts, Inc. (Spinnaker) to purchase an interest in a timeshare plan for the company’s Hilton Head resort, Bluewater by Spinnaker (Blue-water). The Fullbrights commenced a purported class action
After the Fullbrights filed the lawsuit, the South Carolina Real Estate Commission (the REC) issued an order dated September 15, 2015,
Like the Fullbrights, the plaintiffs in the Chenard cases are individuals that entered into contracts to purchase interests in timeshare plans for Hilton Head resorts. In addition to claims for violations of the Timeshare Act, they brought claims for, among other things, fraud, negligent misrepresentation, and violations of the South Carolina Unfair Trade Practices Act.
After further briefing by the parties, the court issued certification orders, and we agreed to answer the questions listed above. In answering these questions, we express no opinion as to the merits of Plaintiffs’ claims, the resolution of which remains in the federal district court.
II.
The questions posed to the Court are aimed at clarifying the extent of the REC’s authority to regulate the time sharing industry and what role, if any, the courts have in that process. Plaintiffs argue they have a constitutional and statutory right to initiate judicial proceedings without regard for the REC’s actions, whereas Defendants argue public policy requires the REC have broad and exclusive jurisdiction to enforce the Timeshare Act.
A.
In resolving this dispute, we must be cognizant of our role as a court. Defendants frame these certified questions in terms of public policy, appeals to which dominate their arguments. Determinations of public policy, however, are chiefly within the province of the legislature, whose authority on these matters we must respect. See, e.g., Taghivand v. Rite Aid Corp.,
When examining statutes, “[t]he cardinal rule of statutory construction is to ascertain and give effect to the intent of the legislature.” Brown v. Bi-Lo, Inc.,
B.
The Timeshare Act establishes procedures governing the offering and sale of timeshare plans in South Carolina. These plans, which may or may not include an ownership interest in the subject property, are arrangements by which the purchaser acquires the right to use real estate and associated facilities for a period of time during the year. S.C. Code Ann. § 27-32-10(7)-(9) (2007). “[T]he [REC], as part of its regulatory mandate, scrutinizes the practices and procedures of persons developing or selling interests in vacation time sharing plans in this State....” Id. § 27-32-405(L) (Supp. 2016).
Section 27-32-190 of the South Carolina Code describes the application process and the REC’s duties in more detail. Among other things, the REC must examine the applicant’s advertising materials to ensure they are not misleading, make sure neither the seller nor any officer or principal thereof has been convicted of certain crimes within the past ten years, and satisfy itself that there are no encumbrances on the property that could diminish the purchaser’s interest in, or use of, the property. Id. § 27-32-190(A)(l) (2007).
Within thirty days from the date the [REC] receives an application for registration, the [REC] must enter an order registering the vacation time sharing plan or rejecting the registration. If an order of rejection is not entered within thirty days from the date of application, the vacation time sharing plan is considered registered unless the applicant has consented in writing to a delay.
Id. § 27-32-190(A)(2) (2007). In addition to the initial registration, a seller must obtain the REC’s approval before making any substantial changes to a registered plan. See id. § 27-32-190(B)(5)(c) (2007).
To perform its duties, the REC is empowered to conduct investigations, issue subpoenas and cease-and-desist orders, and seek court orders compelling compliance with the REC’s requests. Id. § 27-32-190(B) (2007). The REC can revoke a registration for a variety of reasons, including failing to comply with a cease-and-desist order or concealing a material fact in an application. Id. § 27-32-190(B)(7) (2007). As part of its “responsibility] for the enforcement and implementation of’ the Timeshare Act, the REC can also direct the Department
III.
A. Jurisdiction and Condition Precedent (Certified Questions 1 and 2)
The answers to the first two certified questions flow directly from the language of section 27-32-130 of the South Carolina Code: “The provisions of this section do not limit the right of a purchaser or lessee to bring a private action to enforce the provisions of [the Timeshare Act].”
The first certified question asks us to determine whether the REC has exclusive jurisdiction to determine if a person has violated the Timeshare Act. Plaintiffs contend they have a clear statutory right to bring an action in the courts to seek redress for violations of the Timeshare Act. Defendants discount the clear language in section 27-32-130 and would have us declare the statute ambiguous, thereby allowing us to consider their argument that the state’s public policy—as evidenced by the extensive regulatory framework created by the Timeshare Ad>-requires the REC’s jurisdiction to be exclusive.
To the extent we decide courts have subject matter jurisdiction over these matters, the second certified question asks us if a finding by the REC of a violation is a condition precedent to bringing a claim under the Timeshare Act. Plaintiffs contend their right to file suit exists independently of the REC’s authority, while Defendants argue the ability to file suit is contingent on a favorable ruling from the REC.
1. Jurisdiction
“Subject matter jurisdiction is the power to hear and determine cases of the general class to which the proceedings in question belong.” Dema v. Tenet Physician Servs.-Hilton Head, Inc.,
The REC “is responsible for the enforcement and implementation of [the Timeshare Act] and the Department of Labor, Licensing and Regulation, at the request of the [REC], shall prosecute a violation under [the Timeshare Act].” S.C. Code Ann. § 27-32-130. For example, as noted above, the Timeshare Act requires all timeshare plans to be registered with the REC, and it tasks the REC with reviewing those plans. Id. § 27-32-190(A). The REC also has authority to investigate alleged violations
Defendants argue that this conferral of authority on the REC precludes the courts from hearing disputes arising under the Timeshare Act. Defendants note that the Timeshare Act is a comprehensive regulatory scheme intended both to protect consumers from unscrupulous business practices and to provide stability for developers. Compare id. § 27-32-405(E) (Supp. 2016) (acknowledging that “the purchaser of an interest in a vacation time sharing plan in this State is afforded significant and unique consumer protections not available to purchasers of other forms of real property”), with id. § 27-32-405(M) (Supp. 2016) (recognizing that “the economic health and continued stability of the vacation time sharing industry should be subject to the clear identification of various procedures involved in the purchase and sale of an interest in a vacation time sharing plan”).
Defendants contend that the vitality of the timeshare industry relies on the REC’s decisions being respected by the courts. If individuals are allowed to initiate proceedings in court, Defendants claim, the timeshare industry will be destabilized, with resulting negative impacts on the entire South
We readily acknowledge there is considerable merit to Defendants’ concerns, and we do not reject them lightly. However valid Defendants’ concerns may be, they must yield to the plain language of a statute that commands a different result. See Brown,
2. Condition Precedent
For the same reasons, a finding by the REC of a statutory violation cannot be a condition precedent to bringing a private suit under the Timeshare Act. The plain language of section 27-32-130 imposes no such limit, and we are not free to judicially engraft the Defendants’ desired limitation onto the statute. See Grier v. AMISUB of S.C,, Inc.,
B. Effect of the REC’s Findings on the Courts (Certified Question 3)
The third certified question asks us to declare what effect a decision by the REC has on the judicial branch. Plaintiffs argue they have a constitutional right to challenge the REC’s findings in court. Defendants cite two principles they claim require courts to accept the REC’s findings: the “filed rate doctrine” and the doctrine of primary jurisdiction.
We are mindful that this question implicates the separation of powers vital to the proper functioning of our government
The state constitution declares, “No person shall be finally bound by a judicial or quasi-judicial decision of an administrative agency affecting private rights except on due notice and an opportunity to be heard ..., and he shall have in all such
Citing the filed rate doctrine and the doctrine of primary jurisdiction, Defendants argue the REC’s decisions should not be subject to such review. The filed rate doctrine “stands for the proposition that because an administrative agency is vested with the authority to determine what rate is just and reasonable, courts should not adjudicate what a reasonable rate might be in a collateral lawsuit.” Edge v. State Farm Mut. Auto. Ins. Co.,
The second doctrine cited by Defendants, the doctrine of primary jurisdiction,
applies where a claim is originally cognizable in the courts, and comes into play whenever enforcement of the claim requires the resolution of issues which, under a regulatory scheme, have been placed within the special competence of an administrative body; in such a case the judicial process is suspended pending referral of such issues to the administrative body for its views.
United States v. W. Pac. R.R. Co.,
IV.
As Defendants have made clear, these certified questions have serious public policy implications. Defendants would have us declare section 27-32-130 ambiguous, thereby allowing us to take those concerns into consideration when answering these questions. However, the statute is not ambiguous, and our rules of statutory interpretation require us to give effect to its unambiguous language. We leave Defendants’ policy concerns for the legislature. See Taghivand,
CERTIFIED QUESTIONS ANSWERED.
Notes
. S.C. Code Ann. §§ 27-32-10 to -410 (2007 & Supp. 2016).
. These requirements are discussed infra, Part II.B.
. Although the final order was dated September 15, the REC apparently reached this decision at a meeting held on August 20. The Fullbrights accuse Spinnaker of going behind their backs by seeking to have this meeting occur in private. In any event, the parties agree that the Fullbrights did not attend the meeting and they were unsuccessful in their attempts to intervene and appeal the REC’s decision.
. S.C. Code Ann. §§ 39-5-10 to -180 (1985 & Supp. 2016). Whatever relief the Chenard plaintiffs may be entitled to on these claims, we make clear now that the remedy for a violation of the Timeshare Act is limited to that found in the Act itself—the rescission of the purchase contract and a refund of all consideration paid. See id. § 27-32-120(C) (2007).
. These include any "act of fraud, misrepresentation, or failure to make a disclosure of a material fact.” S.C. Code Ann. § 27-32-110(11) (2007).
. See S.C. Const. art. I, § 8 (requiring "the legislative, executive, and judicial powers of the government” to "be forever separate and distinct from each other”).
. S.C. Code Ann. §§ 1-23-10 to -680 (2005 & Supp. 2016).
. A "contested case” is any “proceeding ... in which the legal rights, duties, or privileges of a party are required by law to be determined by an agency after an opportunity for hearing.” Id. § 1-23-310(3) (2005).
. We recognize that Plaintiffs were not parties in the proceedings before the REC. The Fullbrights attempted to intervene and appeal the REC’s decision to the administrative law court but were prevented from doing so. See supra note 3.
. Defendants cite the court of appeals’ decision in Medical University of South Carolina v. Taylor,
