South Carolina Workers’ Compensation Commission, Respondent, v. WestPoint Home, LLC, Appellant.
Appellate Case No. 2023-001663
THE STATE OF SOUTH CAROLINA In The Court of Appeals
Heard March 13, 2025 – Filed September 17, 2025
Opinion No. 6121
Appeal From Richland County
REVERSED AND REMANDED
Matthew Todd Carroll, of Womble Bond Dickinson (US) LLP, of Columbia, and Herbert Beigel, of Tucson, Arizona, both for Appellant.
Michael H. Montgomery, of Montgomery Willard, LLC, and James Keith Roberts, of the South Carolina Workers’ Compensation Commission, both of Columbia, for Respondent.
FACTS
WestPoint is the corporate entity that ultimately emerged out of the dissolution of WestPoint Stevens, a South Carolina textile manufacturer that went into bankruptcy and closed in August 2005. WestPoint Stevens was a self-insured employer for purposes of its workers’ compensation liabilities in South Carolina. In conjunction with the purchase of WestPoint Stevens‘s assets, WestPoint deposited $1.8 million in a private account to fund an irrevocable letter of credit as security for potential workers’ compensation claims against WestPoint Stevens.
In 2013, WestPoint sought to reduce the security amount held by the Commission. Eventually, in April 2014, the Commission filed a declaratory judgment action seeking clarification as to whether WestPoint was entitled to receive certain information—specifically, how much of its $1.8 million deposit had been disbursed and any actuarial reports projecting how much should remain in reserve—arguing that the information was confidential and could not be disclosed outside the agency. WestPoint filed a counterclaim seeking an accounting and a declaration that it was entitled to the information as well as “all monies owed and improperly retained” by the Commission.
At trial, Gary Cannon, the Commission‘s executive director, testified regarding the Memorandum of Understanding (MOU) governing the letter of credit between WestPoint Stevens and the Commission. The MOU stated, “[T]he Commission may at any time draw on the letter of credit, if needed, to pay any Workers’ Compensation claim or claims of administration expense which are the responsibility of the employer.” The MOU also stated that “if the Commission is notified that the letter of credit is being cancelled or will not be renewed and a new letter of credit . . . is not filed with the Commission, the Commission may at its discretion draw on the letter credit.” Cannon testified the Commission drew down the entire $1.8 million balance of the letter of credit on August 17, 2005. He acknowledged that, at the time of the withdrawal, the pending claims did not total $1.8 million, and, as of the date of trial, the Commission had “not needed $1.8 million to pay claims of former WestPoint Stevens employees.”
However, Cannon explained that the Commission nonetheless drew on the letter of credit because WestPoint Stevens had notified the Commission that “no further payments [would] be made with respect to workers’ compensation claims asserted” against it. Cannon stated the Commission was aware that WestPoint had assumed the obligations of WestPoint
Cannon explained the Commission was specifically concerned about “the potential asbestos claims that could have been filed.” He asserted that the Commission had a duty to “look at the potential claims coming in . . . 40, 50 years later” and to ensure that money is available to pay those potential claims. He testified that although the statute of repose is two years from the last exposure, “[a]ny latent claim” is governed by the statute of limitations which allows claims to be filed “two years from the date of diagnosis.”
Christopher Burkhalter, the Commission‘s expert witness, testified six WestPoint Stevens locations were “included on a list of jobsites where asbestos exposure was known to have occurred.” Burkhalter further explained the average latency period for asbestos-related diseases range[d] from 10 to 50 years.” He stated that if a twenty-year-old working for WestPoint Stevens was exposed in 2005, there “would be a 96.8 percent chance that [mesothelioma] would not have manifested” at the time of trial. Burkhalter testified it was “certainly” possible that former WestPoint Stevens employees were “alive and undiagnosed,” and that the “lack of claims in recent years” had “miniscule” bearing on the likelihood of future claims.
The circuit court found the Commission “did not act improperly when it drew down the entire letter of credit in 2005”
ISSUES ON APPEAL
- Did the circuit court err in determining the Commission was justified in withdrawing WestPoint‘s deposit and transferring it to an account with the State Treasurer even though there were no claims pending up to the full deposit amount?
- Did the circuit court err in finding the Commission could continue to retain the unused portion of WestPoint‘s deposit even though the statute of repose for new claims had expired?
- Is WestPoint entitled to collect prejudgment interest on the amount owed to it by the Commission?
STANDARD OF REVIEW
“In order to determine the standard of review to apply, we must look to the kind of action in which the issue involved would have been decided if there were no declaratory judgment procedure.” Barnacle Broad., Inc. v. Baker Broad., Inc., 343 S.C. 140, 146, 538 S.E.2d 672, 675 (Ct. App. 2000). “We review questions of statutory interpretation de novo.” Books-A-Million, Inc. v. S.C. Dep‘t of Revenue, 437 S.C. 640, 642, 880 S.E.2d 476, 477 (2022).
LAW/ANALYSIS
“The cardinal rule of statutory interpretation is to ascertain and effectuate the legislative intent whenever possible.” Mitchell v. City of Greenville, 411 S.C. 632, 634, 770 S.E.2d 391, 392 (2015). “With any question regarding statutory construction and application, the court must always look to legislative intent as determined from the plain language of the statute.” Peake v. S.C. Dep‘t of Motor Vehicles, 375 S.C. 589, 597-98, 654 S.E.2d 284, 289 (Ct. App. 2007). “The text of a statute is considered the best evidence of the legislative intent or will.” Id. at 598, 654 S.E.2d at 289. “In interpreting a statute, the language of the statute must be read in a sense that harmonizes with its subject matter and accords with its general purpose.” Town of Mt. Pleasant v. Roberts, 393 S.C. 332, 342, 713 S.E.2d 278, 283 (2011). “[S]tatutes must be read as a whole and sections which are part of the same general statutory scheme must be construed together and each given effect, if it can be done by any reasonable construction.” Hudson ex rel. Hudson v. Lancaster Convalescent Ctr., 407 S.C. 112, 124-25, 754 S.E.2d 486, 492-93 (2014); see also Hodges v. Rainey, 341 S.C. 79, 88, 533 S.E.2d 578, 583 (2000) (“Statutes dealing with the same subject matter must be reconciled, if possible, so as to render both operative.“).
“The canon of construction ‘expressio unius est exclusio alterius’ or ‘inclusio unius est exclusio alterius’ holds that ‘to express or include one thing implies the exclusion of another, or of the alternative.‘” Riverwoods, LLC v. County of Charleston, 349 S.C. 378, 384, 563 S.E.2d 651, 655 (2002) (quoting Hodges, 341 S.C. at 86, 533 S.E.2d at 582). “Where there is an express exception in a statute, all other exceptions which are not expressly set forth are e[x]cluded.” Vernon v. Harleysville Mut. Cas. Co., 244 S.C. 152, 157, 135 S.E.2d 841, 844 (1964). “The inclusion of one exception amounts to an affirmation of the applicability of the statute‘s provision to all other cases which are not excepted.” Id.
Withdrawal of Deposit
We hold the Commission improperly drew down the letter of credit because the funds were not needed for the payment of any pending claims.2
Here, the regulation at issue plainly states that the Commission may draw down the letter of credit ”if the proceeds are needed for payment of a claim” or if “the self-insurer fails to replace the letter with another accepted proof of compliance [with the surety requirement].”
However, on the date the Commission drew down the letter, it did not need the full $1.8 million balance to pay pending claims, and in fact, WestPoint has never had $1.8 million in claims pending against it. Moreover, the Commission was
Accordingly, we hold the circuit court erred in determining the Commission was justified in drawing down the entire $1.8 million letter of credit, and we reverse the circuit court as to this issue. See Peake, 375 S.C. at 597-98, 654 S.E.2d at 289 (“With any question regarding statutory construction and application, the court must always look to legislative intent as determined from the plain language of the statute.“); Murphy v. S.C. Dep‘t of Health & Envtl. Control, 396 S.C. 633, 639, 723 S.E.2d 191, 195 (2012) (“Regulations are interpreted using the same rules of construction as statutes.“); Brown v. Bi–Lo, Inc., 354 S.C. 436, 440, 581 S.E.2d 836, 838 (2003) (explaining that an agency‘s interpretation of its own regulation is usually entitled to deference, but if “the plain language of the statute is contrary to the agency‘s interpretation, the [c]ourt will reject the agency‘s interpretation“).
Return of Deposit
WestPoint asserts that the Commission has wrongfully retained the unused principal of $1.16 million because “the repose period for any new claims has closed.” The Commission argues there is no statute of repose that would prohibit new claims against WestPoint Stevens, and it needs to retain the funds because of the possibility that “latent” claims involving asbestos exposure and/or pulmonary disease could arise in the future. We hold WestPoint is entitled to the return of its unused funds.
“A statute of limitations is a procedural device that operates as a defense to limit the remedy available from an existing cause of action.” Capco of Summerville, Inc. v. J.H. Gayle Const. Co., 368 S.C. 137, 142, 628 S.E.2d 38, 41 (2006). A statute of repose, on the other hand, “creates a substantive right in those protected to be free from liability after a legislatively determined period of time.” Id. “A statute of repose differs from a statute of limitations” because the “expiration of the time extinguishes not only the legal remedy
The right to compensation under this title is barred unless a claim is filed with the commission within two years after an accident, or if death resulted from the accident, within two years of the date of death. However, for occupational disease claims the two-year period does not begin to run until the employee concerned has been diagnosed definitively as having an occupational disease and has been notified of the diagnosis.
Neither an employee nor his dependents shall be entitled to compensation for disability or death from an occupational disease, except that due to exposure to ionizing radiation, unless such disease was contracted within one year after the last exposure to the hazard peculiar to his employment which caused the disease, save that in the case of a pulmonary disease arising out of the inhalation of organic or inorganic dusts the period shall be two years.
In workers’ compensation cases, “[t]he term ‘contracted’ is a term of art which has been defined for compensation purposes in occupational disease cases as ‘disablement or death.‘” Vespers v. Springs Mills, Inc., 276 S.C. 94, 97, 275 S.E.2d 882, 884 (1981). Accordingly, “in occupational disease cases[,] compensability accrues when disability or death occurs.” Id. (quoting Drake v. Raybestos-Manhattan, Inc., 241 S.C. 116, 121, 127 S.E.2d 288, 291 (1962)); see also Glenn v. Columbia Silica Sand Co., 236 S.C. 13, 21, 112 S.E.2d 711, 715 (1960) (“[T]he event to be treated ‘as an injury by accident’ [is] not contraction of the occupational disease, but ‘disablement or death’ resulting from it.“).
When the term “disablement or death” is substituted for “contracted,”
Neither an employee nor his dependents shall be entitled to compensation for disability or death from an occupational disease, except that due to exposure to ionizing radiation, unless such disease [caused disablement or death] within one year after the last exposure to the hazard peculiar to his employment which caused the disease, save that in the case of a pulmonary disease arising out of the inhalation of organic or inorganic dusts the period shall be two years.
Thus, we hold
Moreover,
We recognize that this holding may “impose on some plaintiffs the hardship of having a claim extinguished before it is discovered, or perhaps before it even exists.” Capco, 368 S.C. at 142, 628 S.E.2d at 41 (quoting Camacho v. Todd and Leiser Homes, 706 N.W.2d 49, 54 n.6 (Minn. 2005)). However, to hold otherwise “would upset the economic balance struck by the legislative body.” Id. “Under the plain meaning rule, it is not the court‘s place to change the meaning of a clear and unambiguous statute.” Hodges, 341 S.C. at 85, 533 S.E.2d at 581. Accordingly, we agree with WestPoint that the time period for any new claims has run because the two-year exposure period expired on August 8, 2007. We therefore reverse the circuit court‘s finding that the Commission could continue to hold WestPoint‘s funds and hold WestPoint is entitled to the return of its initial deposit plus any interest the funds have earned in the Treasury account up to the date the Commission returns the money.
Prejudgment Interest
WestPoint argues that it is statutorily entitled to prejudgment interest; the Commission asserts sovereign immunity bars the recovery of prejudgment interest. However, because the circuit court found against WestPoint regarding the propriety of the Commission‘s drawdown of the letter of credit and determined the Commission was entitled to retain those funds, it did not rule on WestPoint‘s request for prejudgment interest. Accordingly, we remand this issue to the circuit court for consideration of each party‘s arguments. See TransSouth Fin. Corp. v. Cochran, 324 S.C. 290, 297, 478 S.E.2d 63, 66-67 (Ct. App. 1996) (declining to enter judgment in favor of appellant and remanding for “an additional evidentiary hearing to determine the amount of the judgment,” because although the principal amount was undisputed, the
CONCLUSION
The order of the circuit court is therefore REVERSED, and this matter is REMANDED to the circuit court for further proceedings consistent with this opinion.
WILLIAMS, C.J., and GEATHERS, J., concur.
