Mount Pleasant Legal Costs Skyrocket in Shem Creek Parking Garage Lawsuit

Mount Pleasant Legal Costs Skyrocket in Shem Creek Parking Garage Lawsuit

The legal fees for the Town of Mount Pleasant have been rapidly accumulating due to an ongoing lawsuit involving the Shem Creek parking garage. The long-standing lawsuit dates back to 2017 when the Shem Creek Development Group (SCDG) filed a lawsuit against the town, alleging a breach of contract.

The case is centered around a structure on Coleman Boulevard. The building, which hosts a number of offices and pays to park spaces intended for Shem Creek businesses, had been subjected to restrictions placed by the town immediately prior to its inauguration.

A Legal Tussle Now Costing in Millions

Following a trial in 2020, the court directed the Town of Mount Pleasant to pay $2.6 million in damages to the developer for the breach of contract and cover all associated legal fees. The town, however, promptly appealed this decision. However, in 2024 the appeal was dismissed, leaving the original ruling intact.

As the litigation continued relentlessly, the damages owed by the town to the developer began to accrue interest. Furthermore, legal fees continued to multiply as hearings and filings persisted. As of April 2024, calculated interest on the damages had reached $1.2 million, according to Brandon Gaskins, the legal representative for the Shem Creek Development Group.

Gaskins stated that the interest rates fluctuated yearly but were applied daily for as long as litigation persisted. He also estimated that the sum of damages was rising $1,500 every day, and the appeal alone had cost taxpayers over $1 million in interest and attorney fees, with an anticipated additional cost of $40,000-$50,000 every month.

The Town Seeks Recourse in the South Carolina Supreme Court

Recently, the town filed an appeal to the South Carolina Supreme Court for a review of the case and a potential reversal. The appeal is currently awaiting review. However, as the town continues its quest for a favorable outcome, interest continues to pile upon the original sum of damages.

Gaskins, representing the SCDG, expressed confidence that their client’s case had merit, but also expressed disappointment that the expenses were being borne by the town’s taxpayers. Unfortunately, Gaskins remarked, the developer’s gain is at the expense of hardworking taxpayers who are footing the bill for poor decisions made by their elected officials.

Legal Expenses Continue to Pile Up

In addition to the developer’s damages and legal costs, the town is also responsible for its own legal expenses. Records established that, from the commencement of the lawsuit in 2017 to the trial in 2020, Mount Pleasant had spent more than $282,450 in legal fees. More recent records reveal that, during the appeal process leading into 2024, legal expenses had risen to over $171,550.

The Town of Mount Pleasant currently has neither commented on the legal costs at this point nor made a statement about its ongoing policy regarding pending litigation. Meanwhile, legal representatives for SCDG declared their intention to pursue the case unto its conclusion while expressing hope that the appeal denial could be made final.