Bittmint, LLC v. Lynda H. Johnson

CourtCourt of Appeals of South Carolina
DecidedJuly 30, 2025
Docket2022-000867
StatusUnpublished

This text of Bittmint, LLC v. Lynda H. Johnson (Bittmint, LLC v. Lynda H. Johnson) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bittmint, LLC v. Lynda H. Johnson, (S.C. Ct. App. 2025).

Opinion

THIS OPINION HAS NO PRECEDENTIAL VALUE. IT SHOULD NOT BE CITED OR RELIED ON AS PRECEDENT IN ANY PROCEEDING EXCEPT AS PROVIDED BY RULE 268(d)(2), SCACR.

THE STATE OF SOUTH CAROLINA In The Court of Appeals

Bittmint, LLC and Harbour Town Surf Shop, LLC, Appellants,

v.

Lynda H. Johnson, Charles S. Giannone, and Sea Pines Resort, LLC, Respondents.

Appellate Case No. 2022-000867

Appeal From Beaufort County Bentley Price, Circuit Court Judge

Unpublished Opinion No. 2025-UP-273 Heard April 7, 2025 – Filed July 30, 2025

REVERSED

Mike W. Mogil, of Law Ofc. of Michael W. Mogil, P.A., of Hilton Head Island; Ian S. Ford and Ainsley Fisher Tillman, both of Ford Wallace Thomson, LLC, of Charleston; Edward Michael Kubec, of Novit & Scarminach, PA, of Hilton Head Island; and Maureen T. Coffey, of Bluffton; all for Appellants.

George Trenholm Walker and John Phillips Linton, Jr., both of Walker Gressette Freeman & Linton, LLC, of Charleston, for Respondents. PER CURIAM: Bittmint, LLC and Harbour Town Surf Shop, LLC (collectively, Bittmint) appeal the circuit court's grant of directed verdict in favor of sellers Lynda H. Johnson, Charles S. Giannone, and Sea Pines Resort, LLC (collectively, Respondents). Bittmint argues the circuit court erred in granting directed verdict because (1) it decided a fundamental question of fact on directed verdict, (2) the right of first refusal was an unreasonable restraint on the alienation of property, (3) Respondents' liability could be inferred from the evidence, and (4) the right of first refusal was nontransferable. Bittmint also argues this court should reverse the circuit court's award of attorney's fees to Respondents. We reverse the circuit court's grant of directed verdict to Respondents and its award of attorney's fees.

FACTS AND PROCEDURAL HISTORY

Sea Pines Resort's (Resort's) claimed right of first refusal was created in 1973 when Lighthouse Beach Company planned to develop commercial property on Hilton Head Island and recorded commercial use covenants (the 1973 Covenants) as part of that development. The 1973 Covenants are recorded in Book 206, at page 1143, of the Beaufort County Register of Deeds. The right of first refusal appears in section 19 of the 1973 Covenants and states:

In the event the owner desires to sell a Commercial Property site on Hilton Head Island together with its improvements, if any, then said property shall be offered for sale to the Company at the same price at which the highest bona fide offer has been made for the property, and the said Company shall have thirty (30) days within which to exercise its option to purchase said property at this price; and should the Company fail or refuse, within thirty (30) days after receipt of written notice of the price and terms, to exercise its options to purchase said property at the offered price, then the owner of said property shall have the right to sell said property, subject, however, to all covenants and limitations herein contained, at a price not lower than that at which it was offered to the Company.

The 1973 Covenants define the term "the Company" as "Lighthouse Beach Company, its successors and assigns." Lighthouse Beach Company was dissolved in 1975. In 1977, the Prospect Company, which was the liquidating partner of Lighthouse Beach Company, assigned Lighthouse Beach Company's option to repurchase property within Sea Pines Plantation to Sea Pines Planation Company. The assignment stated that it assigned to Sea Pines Planation Company "all rights, obligations, benefits, including the right to waive, all repurchase options in real property within Sea Pines Plantation on Hilton Head Island in Beaufort County, South Carolina, which was owned, possessed, and seized unto Lighthouse Beach Company." Sea Pines Plantation Company filed for bankruptcy in 1986. In 2006, Resort bought property owned by Sea Pines Company, Inc. f/k/a Sea Pines Plantation Company, Inc.; Sea Pines Forest Preserve Conservation Association, Inc.; Tide Pointe, Inc.; Sea Pines/Tide Pointe, Inc.; Sea Pines Real Estate Company, Inc.; Lighthouse Realty, Inc.; RG Subsidiary Corporation; The Fifth Golf Course Club, Inc.; and Sea Pines Associates, Inc.1

In 2018, Bittmint filed an amended complaint against Respondents that included causes of action to set aside a deed of sale from Johnson and Giannone (Sellers) to Resort and for breach of contract against Sellers. Claims against Resort included causes of action for interference with a contractual relationship and interference with prospective contractual relations. The complaint further asserted the claimed right to purchase violated the common law rule against perpetuities; was an invalid assignment; was unenforceable as violative of the statute of repose; and interfered with the third-party rights of Harbor Town Surf Shop, the intended beneficiary of Bittmint's contract of sale. With respect to this contract of sale, Bittmint, which owned Harbour Town Surf Shop, LLC, alleged that on March 17, 2017, it entered into a written contract with Sellers to purchase Shop 6 and Shop 8 of the Mariners Way Horizontal Property Regime in Harbour Town (the Property), which is part of Sea Pines Plantation. Bittmint stated it sent a request for waiver to Resort on April 14, 2017, "pursuant to historical transaction protocols regularly performed in real estate settlement involving property with Sea Pines Plantation, without any reference or knowledge of the source or authority of such [w]aivers." Resort informed Bittmint and Sellers on May 2, 2017, that it planned to exercise its right of first refusal to purchase the Property for $580,000, the price set forth in the contract between Bittmint and Sellers. Bittmint alleged it notified Sellers it did not believe Resort possessed a valid right of first refusal and that it planned to proceed

1 The deed from the 2006 sale to Resort was attached to an affidavit filed with Respondent's motion for summary judgment, which Judge Jennifer McCoy denied. The 2006 deed was not entered into evidence at trial, but it is included in the record on appeal. with the contract for sale. Sellers conveyed the Property to Resort in a deed recorded on May 12, 2017.

Bittmint filed several motions in limine, including a motion arguing the circuit court should restrict any evidence of the alleged right of first refusal because the right found in the 1973 Covenants was void under the common law rule against perpetuities. At the beginning of the trial, the circuit court denied Bittmint's motion in limine on this issue, stating:

As for the motion in limine on behalf of [Bittmint] . . . to exclude any discussion of evidence of right of first refusal, to be quite honest with you, I think that's pretty much the crux of the case. So, obviously, I'm going to deny that and allow that as a question of fact for the jury and I'm going to allow them to take that into consideration.

During the trial, Amir Bitton testified he and Alon Mintz opened Harbour Town Surf Shop in 2010, when they began leasing Shop 6, one of the shops that made up the Property, from Sellers' mother, Lorraine Giannone. In 2015, Bitton and Mintz signed an agreement to lease the Property from Lorraine for $54,250 per year ($4,520.83 per month). Bitton testified he and Mintz formed Bittmint as a real estate company in 2014. He stated Bittmint bought a business and property in Harbour Town called "the general store" in 2016. Bitton stated he was not aware of anyone sending a waiver of the right of first refusal to Resort regarding the sale of the general store, but he recalled reading something about the waiver in an email he reviewed after the sale of the general store closed.

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Bittmint, LLC v. Lynda H. Johnson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bittmint-llc-v-lynda-h-johnson-scctapp-2025.