Justia Non-Profit Corporations Opinion Summaries

Articles Posted in South Carolina Supreme Court

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In 1999, Ronnie and Jeanette Dennis purchased property on Callawassie Island. At that time, the Dennises joined a private club known as the Callawassie Island Club, and paid $31,000 to become "equity members." The Club's bylaws stated "Any equity member may resign from the Club by giving written notice to the Secretary. Dues, fees, and charges shall accrue against a resigned equity membership until the resigned equity membership is reissued by the Club." In 2010, the Dennises decided they no longer wanted to be in the Members Club, so they submitted a "letter of resignation" and stopped making all payments. The Club filed a breach of contract action against the Dennises, alleging the unambiguous terms of the membership documents required the Dennises to continue to pay their membership dues, fees, and other charges until their membership was reissued. The Dennises denied any liability, alleging they were told by a Members Club manager that their maximum liability would be only four months of dues, because after four months of not paying, they would be expelled. The Dennises also alleged the membership arrangement violated the South Carolina Nonprofit Corporation Act. Finding no ambiguity in the Club bylaws, the South Carolina Supreme Court reversed the court of appeals and reinstated summary judgment for all unpaid dues, fees and other charges. View "Callawassie Island Club v. Dennis" on Justia Law