Hollis v. STONINGTON DEVELOPMENT, LLC

714 S.E.2d 904, 394 S.C. 383, 2011 S.C. App. LEXIS 215
CourtCourt of Appeals of South Carolina
DecidedAugust 17, 2011
Docket4869
StatusPublished
Cited by15 cases

This text of 714 S.E.2d 904 (Hollis v. STONINGTON DEVELOPMENT, LLC) 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
Hollis v. STONINGTON DEVELOPMENT, LLC, 714 S.E.2d 904, 394 S.C. 383, 2011 S.C. App. LEXIS 215 (S.C. Ct. App. 2011).

Opinion

FEW, C.J.

The primary issue in this appeal is whether the trial court erred in imposing punitive damages of $3.5 million against Stonington Development, LLC. We find the trial court properly denied Stonington’s motion for a directed verdict as to punitive damages, and we find no reversible error in the charge given to the jury. However, we find the amount of punitive damages is excessive and therefore that due process requires the amount of the award to be reduced. As to all other issues, we affirm.

I. Facts

The plaintiffs are brothers Glenn and John Hollis; Janette Robinson, who is Glenn’s daughter; and Janette’s husband, Joseph Robinson. The Hollises and Robinsons jointly own approximately nineteen acres of land that has been in the Hollis family for generations. The Robinsons live on the property with their son in a house overlooking two ponds that Glenn, John, and their father built over fifty years ago. The only driveway to the Robinsons’ home crosses an earthen dam that divides the three-acre upper pond from the five-acre lower pond.

In 1999, Stonington purchased property directly upstream from the Hollis and Robinson property for the purpose of developing a residential subdivision. The Hollises and Robin-sons proved at trial that over the next five years Stonington ignored the recommendations of its own stormwater management engineers; violated State regulations and local laws regarding erosion control and stormwater runoff; and misled them, perhaps even lied, about Stonington’s intention to remedy the problems. The result was severe flooding on the Hollises and Robinsons’ property, which inhibited the Robin-sons’ access to their home and filled the ponds with as much as four feet of sediment. The estimated cost to restore the property is over $250,000.00. The jury awarded $400,000.00 in *391 actual damages and $3.5 million in punitive damages. The trial court reduced the actual damages award to $315,000.00 as a setoff to account for funds paid by other settling defendants.

The troubles between the parties began in 2000, shortly before Stonington began construction. At their first meeting, Stonington asked the Robinsons to relinquish easement rights for their driveway and asked if it could put a sewer line through their front yard to serve the development. When the Robinsons refused both requests, Stonington threatened to condemn the land and install the sewer line anyway. 1

Before beginning construction, Stonington hired Power Engineering to prepare stormwater management plans for the subdivision. The Hollises and Robinsons’ expert testified that stormwater management is a field of engineering that prevents the type of severe flooding, erosion, and sediment accumulation that eventually occurred on the Hollis and Robinson property. The plans Power Engineering prepared for Stonington included protective measures such as silt fences and detention ponds to catch eroding soil and sediment runoff. Stonington failed to follow the plans, despite its admitted responsibility to do so.

By late 2002, the Hollises and Robinsons started to see silt and sediment coming from the development and accumulating in the ponds. Around the same time, Stonington received its first notice of violation from Richland County, requiring it to alleviate the accumulation in the ponds to avoid penalties. By the spring of 2003, the runoff worsened to the point of causing the ponds to flood the Robinsons’ yard and cover part of their driveway with rushing water. The Hollises and Robinsons continually complained to Stonington and asked it to fix the problem. Stonington assured them the problem would be fixed, but failed to take action.

A Stonington employee testified that, as part of its attempt to compromise with the Hollises and Robinsons, Stonington placed a fifty-foot-wide conservation easement on the part of its property bordering the Hollises and Robinsons to provide them with a buffer for protection from the runoff. Stonington told them the buffer increased the size of their property *392 because it could never be used for anything but trees. In direct contravention of that statement, Stonington then removed all of the trees in the “buffer” to install a sewer line for its subdivision. Stonington received a $1 million tax deduction for creating the easement.

After numerous other State and County violation notices and no action from Stonington to alleviate the damage, the Hollises and Robinsons finally filed suit against Stonington and Power Engineering 2 on July 29, 2005, for negligence, trespass, private nuisance, and violation of the Unfair Trade Practices Act. By then, the runoff from Stonington caused the back of the dam on the upper pond to collapse, and the sediment in the pond had accumulated as deep as four feet in some locations. Even after the lawsuit was filed, Stonington received violation notices from Richland County directing it to protect the ponds from stormwater runoff.

At trial, the Hollises and Robinsons’ expert in stormwater management testified that Stonington did not follow Power Engineering’s stormwater management plans and failed to maintain the limited stormwater management system it did build. Stonington’s only representative to testify at trial admitted it was responsible for complying with the stormwater management plans. The Hollises and Robinsons’ expert testified that while the Hollises and Robinsons may still have experienced some problems if Stonington had followed the plans and maintained the system, the problems would have been “significantly” less serious. The expert gave an example of Stonington’s failure to follow the plans. He explained that the stormwater system as designed includes a temporary check dam to catch sediment after a rainstorm. The system then requires the check dam be cleaned out and the sediment hauled elsewhere. The expert said Stonington cleaned out the sediment, but then “piled it right on the slope right above it[,] ... obviously making it available for a source of erosion the next time it rains.”

*393 The Hollises and Robinsons presented evidence that the cost of repairing the damage caused by Stonington and restoring the ponds to their previous condition is $254,384.00, 3 in addition to the $9,813.76 in expenses they incurred before the trial. They also established damages for loss of use and enjoyment of the ponds. For example, Glenn testified the fishing in the ponds is now bad, the children cannot swim in the mud, and they can no longer access areas of the ponds due to the sediment accumulation.

II. Procedural History

At the end of a five-day trial, the jury returned a defense verdict for Power Engineering, but found for the Hollises and Robinsons against Stonington for negligence, trespass, and private nuisance. 4 The jury awarded $400,000.00 in actual damages and $3.5 million in punitive damages. After the verdict, the Hollises and Robinsons elected the private nuisance cause of action. Stonington filed a post-trial motion for judgment notwithstanding the verdict or, in the alternative, new trial absolute or new trial nisi remittitur.

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Bluebook (online)
714 S.E.2d 904, 394 S.C. 383, 2011 S.C. App. LEXIS 215, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hollis-v-stonington-development-llc-scctapp-2011.