Lemmons v. Macedonia Water Works, Inc.

CourtCourt of Appeals of South Carolina
DecidedJuly 1, 2020
Docket2017-002171
StatusPublished

This text of Lemmons v. Macedonia Water Works, Inc. (Lemmons v. Macedonia Water Works, Inc.) 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
Lemmons v. Macedonia Water Works, Inc., (S.C. Ct. App. 2020).

Opinion

THE STATE OF SOUTH CAROLINA In The Court of Appeals

Joey Lemmons d/b/a Rugs International, Appellant,

v.

Macedonia Water Works, Inc., Respondent.

Appellate Case No. 2017-002171

Appeal From Cherokee County R. Keith Kelly, Circuit Court Judge

Opinion No. 5747 Submitted June 1, 2020 – Filed July 22, 2020

AFFIRMED

Christopher David Kennedy and N. Douglas Brannon, both of Kennedy & Brannon, P.A., of Spartanburg; and J. Falkner Wilkes, of Greenville, for Appellant.

Joseph L. Mathis and Joseph L.V. Johnson, both of Saint- Amand Thompson & Mathis, LLC, of Gaffney; and Lawrence Emile Flynn, III, of Pope Flynn, LLC, of Columbia, for Respondent.

GEATHERS, J.: Appellant Joey Lemmons, d/b/a Rugs International (Customer) seeks review of the circuit court's order granting summary judgment to Respondent Macedonia Water Works, Inc. (Utility) in Customer's action seeking a refund. Customer argues the circuit court erred in declining to enforce section 58-5-390 of the South Carolina Code (2015), which limits the fee a utility may charge for the installation and maintenance of a fire sprinkler system. Utility seeks a dismissal of this appeal on the ground that Customer did not timely serve the notice of appeal. We deny the motion to dismiss and affirm the circuit court's order.

FACTS/PROCEDURAL HISTORY

In 1999, Customer purchased a commercial building in Cherokee County, near Gaffney, for his business, Rugs International.1 At that time, a single tap onto Utility's water main supplied the water for the building's dual-purpose service line to a potable water system and a fire sprinkler system. The eight-inch line was accompanied by a four-inch bypass line to accommodate the variance in the volume of water flow—when the flow was low, a valve within the service line's compound meter assembly closed to force all of the water to flow through the assembly's four- inch meter, and when the flow increased to a certain point, the valve opened to allow the water to flow through the assembly's eight-inch meter. This assembly increased the accuracy of metering—a low flow could not be measured accurately by a large meter; therefore, the meter assembly compounded the readings between the eight- inch meter and the four-inch bypass meter.

Utility has billed its customers a certain monthly minimum charge based primarily on the size of the customer's water meter. The minimum charge has covered water usage up to 2,000 gallons, and a volumetric charge has been added for usage exceeding 2,000 gallons. Utility's water rate schedule (effective January 1, 2001) indicates that the minimum charge for an eight-inch meter is $650. Utility determined this amount to be the actual cost of providing an eight-inch line, explaining that this amount includes the cost of increased capacity in the event that a customer "decides to make maximum use of the volumes of water that are available to him at any time." On the other hand, the monthly charge for a service line that is dedicated exclusively to a fire sprinkler system is a flat rate of $50. These accounts

1 In his affidavit, Customer references one building. However, in an exhibit attached to the affidavit, specifically, a letter from Utility to Customer, Utility contends, "In the case of the Rugs International facility, there are multiple facilities, services, and buildings [that] are supplied water service from a single water meter and tap." Nonetheless, we need not resolve this discrepancy for purposes of deciding the issues on appeal. are charged much less than other accounts because "consumption virtually never occurs . . . unless there is a fire."2

In 2012, Customer became aware of section 58-5-390 of the South Carolina Code, which limits the fee a utility may charge for the installation and maintenance of a fire sprinkler system.3 Customer believed that the statute applied to his water line and sought a refund of amounts he claimed Utility had overbilled him. Utility took the position that it had not overbilled Customer because his building did not have a service line dedicated exclusively to a fire sprinkler system. In March 2014, Customer added a new one-inch meter to his building to accommodate the potable

2 Jeffrey Walker, Customer's expert witness and general manager for a nearby water district that bills in the same manner that Utility bills its customers, made this statement in his August 10, 2016 letter to Utility's counsel. 3 The legislation creating section 58-5-390 was passed in 2008. See Act No. 357, 2008 S.C. Acts 3601, effective June 25, 2008. This act was amended in 2010 to add subsection (C) to section 58-5-390. Section 58-5-390 states,

(A) A publicly or privately owned utility may not impose a tap fee, other fee, or a recurring maintenance fee of any nature or however described for the installation and maintenance of a fire sprinkler system that exceeds the actual costs associated with the water line to the system.

(B) For purposes of this section, actual costs include direct labor, direct material, the necessity of increased capacity, and other direct charges associated with the separate fire sprinkler line. The direct costs must be documented by either an invoice or work order that specifically assigns the costs to the separate fire sprinkler line. Nothing in this section may be construed as requiring a utility to provide service to support a private fire protection system.

(C) Nothing in this section shall give the commission or the regulatory staff any power to regulate or interfere with public utilities owned or operated by or on behalf of any municipality, county, or regional transportation authority as defined in Chapter 25 of this title or their agencies.

(emphases added). water system and dedicated the eight-inch meter to the fire sprinkler system. From that point forward, Utility charged Customer $50 per month for the line dedicated to the fire sprinkler system and a monthly minimum of $20 for the one-inch line to the potable water system.

On November 24, 2014, Customer filed this action seeking a refund based on section 58-5-390. In his complaint, Customer alleged that his former compound meter had included an eight-inch meter and a two-inch meter and regular water usage had flowed through the two-inch meter. Customer also alleged that the higher volume of water had flowed through the eight-inch meter only when a fire activated the sprinkler system and only fifteen gallons had passed through the eight-inch meter since it had been installed. After filing an answer to Customer's complaint, Utility filed a motion for summary judgment, and the circuit court conducted a hearing on the motion on January 6, 2017. In its order granting summary judgment to Utility, the circuit court concluded that section 58-5-390 did not apply to Customer's former dual-purpose line because it was not dedicated exclusively to a fire sprinkler system as contemplated by the statute. The circuit court later denied Customer's Rule 59(e) motion. This appeal followed. Utility did not file a separate motion to dismiss this appeal, but rather raised the issue of appellate jurisdiction for the first time in its appellate brief.

ISSUES ON APPEAL

1. Does this court have appellate jurisdiction over this action?

2. Did the circuit court err by interpreting section 58-5-390 to apply to only those lines dedicated exclusively to a fire sprinkler system?

3. Did Customer have a separate fire sprinkler line for purposes of section 58-5-390 during the period for which he seeks a refund?

STANDARD OF REVIEW

This court reviews the grant of a summary judgment motion under the same standard applied by the trial court pursuant to Rule 56(c), SCRCP. Jackson v. Bermuda Sands, Inc., 383 S.C.

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Lemmons v. Macedonia Water Works, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lemmons-v-macedonia-water-works-inc-scctapp-2020.