SC Public Interest Foundation v. Alan Wilson (2)

CourtSupreme Court of South Carolina
DecidedNovember 12, 2025
Docket2024-000065
StatusPublished

This text of SC Public Interest Foundation v. Alan Wilson (2) (SC Public Interest Foundation v. Alan Wilson (2)) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SC Public Interest Foundation v. Alan Wilson (2), (S.C. 2025).

Opinion

THE STATE OF SOUTH CAROLINA In The Supreme Court

South Carolina Public Interest Foundation and John Crangle, individually and on behalf of all others similarly situated, Appellants,

v.

Alan Wilson, Attorney General for the State of South Carolina; Willoughby & Hoefer, P.A.; and Davidson & Wren, P.A., f/k/a Davidson, Wren & DeMasters, P.A., Respondents.

Appellate Case No. 2024-000065

Appeal from Richland County Daniel Coble, Circuit Court Judge

Opinion No. 28307 Heard April 2, 2025 – Filed November 12, 2025

AFFIRMED IN RESULT

James Mixon Griffin, Badge Humphries, and Margaret Nicole Fox, all of Griffin Humphries LLC, of Columbia, and James G. Carpenter, of The Carpenter Law Firm, of Greenville, for Appellants.

John S. Simmons, of Simmons Law Firm, LLC, of Columbia, Gerald Malloy, of Malloy Law Firm, of Hartsville, and James Todd Rutherford, of Rutherford Law Firm, LLC, of Columbia, for Respondent Willoughby & Hoefer, P.A.; William H. Davidson II and Kenneth P. Woodington, both of Davidson & Wren, P.A., of Columbia, for Respondent Davidson & Wren, P.A., f/k/a Davidson, Wren & DeMasters, P.A.; Attorney General Alan McCrory Wilson, Solicitor General Robert D. Cook, and Deputy Solicitor General J. Emory Smith, Jr., all of Columbia, for Respondent Alan Wilson.

JUSTICE JAMES: In this case, we address the South Carolina Attorney General's authority to enter into contingent fee agreements with private law firms. Attorney General Alan Wilson retained Willoughby & Hoefer, P.A. (W&H) and Davidson & Wren, P.A. (D&W), f/k/a Davidson, Wren & DeMasters, P.A., (collectively, the Law Firms) to represent the State in litigation against the United States Department of Energy (DOE) involving "defense plutonium or defense plutonium materials" the DOE transported into the State beginning in 2002. In 2016, Wilson and the Law Firms executed a fee agreement (amended in 2019), which provided the Law Firms would be paid on a sliding scale contingent fee basis. After the DOE paid the State $600 million to settle the case, Wilson transferred $75 million in attorney's fees to the Law Firms. Appellants challenged the transfer in the circuit court, which dismissed the case, finding Appellants did not have standing. In 2022, we held Appellants had public importance standing and remanded the case to the circuit court "to consider the merits of Appellants' claims." S.C. Pub. Int. Found. v. Wilson, 437 S.C. 334, 343, 878 S.E.2d 891, 896 (2022). Upon remand, the circuit court granted summary judgment to Wilson and the Law Firms, ruling Wilson had the threshold authority to enter into the fee agreements. Even though the circuit court did not address the merits of all of Appellants' claims, the claims present only questions of law. Therefore, we will address those claims.

Subsection 1-7-150(B) of the South Carolina Code is at the center of this dispute. It provides: All monies, except investigative costs or costs of litigation awarded by court order or settlement, awarded the State of South Carolina by judgment or settlement in actions or claims brought by the Attorney General on behalf of the State or one of its agencies or departments must be deposited in the general fund of the State, except for monies recovered for losses or damages to natural resources, which must be deposited in the Mitigation Trust Fund, or where some other disposition is required by law. S.C. Code Ann. § 1-7-150(B) (2005) (emphasis added). Appellants concede the term "costs of litigation" includes attorney's fees, and they concede the Attorney General has the authority to enter into contingent fee agreements with private law firms. However, harkening to subsection 1-7-150(B), Appellants argue that because the fees were not awarded "by court order or settlement," the entire $600 million settlement must be deposited into the general fund of the State or into a legislatively-created Litigation Recovery Account (LRA)1 before attorney's fees can be paid. According to Appellants, payment of a fee to the Law Firms would then be at the discretion of the General Assembly. Wilson contends his office has the authority to transfer the fees to the Law Firms without the gross settlement proceeds first being deposited into the general fund or the LRA. We agree with Wilson and affirm the circuit court in result. I. A.

In 2002, South Carolina reached an agreement with the DOE concerning the storage and removal of weapons-grade (also referred to as "defense" or "weapons-usable") plutonium at the Savannah River Site in Aiken, South Carolina. To that end, Congress enacted 50 U.S.C. § 2566, entitled "Disposition of weapons-usable plutonium at Savannah River Site." Among other things, the legislation summarized plans for the DOE's construction and operation of a mixed-oxide (MOX) fuel fabrication facility at the Savannah River Site and

1 Proviso 59.8 of the 2019-2020 Appropriations Act provided the following: (AG: Litigation Recovery Account) During the current fiscal year, when there is a recovery or an award in any litigation managed by the Attorney General, any funds received that would have otherwise been credited to the General Fund shall be deposited to the credit of a special account created in the Office of State Treasurer entitled "Litigation Recovery Account." The funds deposited in this account must be expended only as prescribed by law. H. 4000, 123rd Leg., 1st Reg. Sess. (S.C. 2019). The effect of Proviso 59.8 was extended into the 2020-2021 fiscal year. H. 3411, 123rd Leg., 2nd Reg. Sess. (S.C. 2020) ("The effective dates of Parts IA and IB of [the 2019-2020 Appropriations Act] are extended until the effective date for appropriations made in a general appropriations act for Fiscal Year 2020-2021 . . . ."). provided the State could collect economic and impact assistance payments should the DOE fail to achieve the mixed-oxide production objective by January 1, 2016. § 2566(a)(1), (d), (h). Specifically, the legislation provided that if the MOX production objective was not achieved by January 1, 2016, the DOE would make economic and impact assistance payments to the State not to exceed $100 million per year beginning in 2016 and going through 2021, until either the MOX production objective was achieved or the DOE removed from South Carolina at least one metric ton of defense plutonium or defense plutonium materials—whichever happened later. § 2566(d)(1). If, as of January 1, 2022, the MOX facility had not processed certain amounts of fuel, the DOE would pay additional economic and impact assistance payments not to exceed $100 million per year until the removal of a certain amount of defense plutonium or defense plutonium materials. § 2566(d)(2). Unfortunately for South Carolina, Congress amended the legislation in 2005 to provide that the DOE's obligation to make the economic and impact assistance payments was "subject to the availability of appropriations" by Congress. § 2566(d)(1). And behold, Congress did not appropriate funds for these statutory payments during the years relevant to this case.

Wilson retained the Law Firms to protect the State's interests with respect to the DOE's obligations, and in 2014, the State learned the DOE was preparing to place the MOX facility in "cold standby" status, which the State feared would effectively terminate the MOX project. When the DOE failed to meet the MOX production objective by the legislated target date of January 1, 2016, then-Governor Nikki Haley requested Wilson to sue the DOE.

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SC Public Interest Foundation v. Alan Wilson (2), Counsel Stack Legal Research, https://law.counselstack.com/opinion/sc-public-interest-foundation-v-alan-wilson-2-sc-2025.