Georgetown

Court of Appeals grants DeBordieu right to intervene in Baruch litigation

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The Belle W. Baruch Foundation (Baruch) owns approximately 8,000 acres of high ground in Georgetown County. Baruch brought a declaratory judgment action* against the State of South Carolina, claiming it also holds title to 8,000 acres of adjoining marshland.

The State answered, asserting its status as the presumptive titleholder of all marshlands, and counterclaimed that the public holds a presumptive easement over the marshlands. Alternatively, the State claimed that the property had been dedicated to the public.

DeBordieu is an upscale private coastal community which shares a boundary with the disputed marshlands.

Anyone familiar with Georgetown County history knows that Belle Baruch was the daughter of Bernard Baruch, a wealthy landowner and statesman who advised President Wilson during World War I and President Roosevelt during World War II.

Baruch owned Hobcaw Barony, a former rice plantation, and surrounding real estate. President Roosevelt famously convalesced during one of his illnesses at the property. Belle Baruch inherited much of the property and donated it to the Foundation as a nature and research preserve.

Hobcaw has relationships with the University of South Carolina and Clemson University for the purposes of conservation and other research. The property is also the location for delightful Lowcountry tours and events like oyster roasts and holiday parties. I learned on one of these tours that Belle Baruch was interested in preserving the real estate, but not the buildings. The funds she left were not intended for the upkeep of the buildings. The Foundation raises money for that purpose.

I highly recommend that locals and tourists take the time to visit Hobcaw. It’s a beautiful property that reminds me of George Washington’s Mount Vernon. If funds had been left to preserve the buildings, Hobcaw would likely be as impressive as Mount Vernon.

According to the lawsuit, DeBordieu’s members have a history of using the marshland for shellfish harvesting, crabbing, wade fishing and similar recreational activities. In the early 1970’s, DeBordieu created a system of creeks and canals allowing its members access to the marshland and to the Atlantic Ocean. DeBordieu has periodically dredged its canals to maintain its access to the marshland.

DeBordieu sought intervention as a matter of right or, alternatively, permissive intervention. The circuit court denied intervention under both theories.

The Court of Appeals reversed, stating that precedent and Rule 24(a) of the South Carolina Rules of Civil Procedure set a liberal standard for intervention. Although the State and DeBordieu similarly claim that if Baruch owns the disputed property, the marshlands are encumbered by the States and/or DeBordieu’s easements, it is not accurate to classify those easement claims as the same interest in the property.

The State’s and DeBordieu’s claims are independent of each other and require different proof, according to the Court.

The Court also addressed the practical effect of denying the motion to intervene. A declaratory judgment must name all parties having a claim or interest in the matter and must not prejudice the rights of persons who are not parties to the proceeding. The Court concluded that a judgment valid against the State but not against others claiming an interest in the marshlands would not be an efficient use of judicial resources.

DeBordieu is allowed to intervene, and the litigation will proceed. We will keep you posted.

*The Belle W. Baruch Foundation v. The State of South Carolina, South Carolina Court of Appeals Opinion 6043 (January 17, 2024.)

State Farm will no longer accept new applications for home insurance in California

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My family has a modest second home in North Litchfield Beach. It isn’t close to the ocean. My Fitbit clocks 700 steps to the beach, and most family members prefer to drive a golf cart for that reason. To call it a “raised beach house” is an understatement. Because of flood insurance concerns, the garage level of the house was required to be very tall when we built in 2011.

We can’t paint or power wash with the tallest ladders available to homeowners. If we had a big boat, we could park it in the garage.  My point is that the living area of our house is so far above ground, that if it floods, it is likely that inland Pawleys Island and Georgetown County will also flood.

Thinking all the way back to Hurricane Hugo in 1989, my extended Georgetown County family members evacuated to Columbia to stay with us. Much to everyone’s surprise, our property in Columbia suffered more damage than their properties in Georgetown.

Earlier this year, we received a letter from our insurance agency indicating that it would attempt to obtain insurance for us for the upcoming insurance year, but we should be prepared for difficulty because of the frequency of hurricanes in our area.  There is no reason our house should be difficult to insure other than its location on the beach side of Highway 17.  

I share this information with South Carolina dirt lawyers, particularly those who practice in our coastal counties, for discussion purposes only. I’m not pushing a panic button by any means. But the headlines I read last week about State Farm’s decision to pull out of California as to new homeowners’ applications certainly caught my attention.

State Farm pointed to wildfire risks and construction cost inflation to justify its decision. Everyone is suffering from the latter, and, as to the former, the company didn’t attempt to limit the impact of its decision to those areas most affected by wildfires. Other stated concerns were climate change, reinsurance costs affecting the entire insurance industry, and global inflation. All of those concerns also affect all locations.

The company pulled out of the entire state as to new applications. And some news articles reported that State Farm is the largest insurer based on premium.  The fact that the largest insurer pulled out of the third largest state seems impactful.

The announcement did state that existing customers will not be affected and that automobile insurance applications will continue to be accepted.

There doesn’t appear to be anything we should do at this point, other than to keep our eyes and ears open as to developments in the area of insurance for ourselves and our clients.

Hobcaw Barony owner claims title to North Inlet

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hobcaw-church

Image from south-carolina-plantations.com

I grew up in Georgetown, SC, and enjoyed visiting the beach with my family on Pawleys Island. Between the City of Georgetown and the beautiful “arrogantly shabby” Pawleys beach lies Hobcaw Barony, a gorgeous stretch of land that was developed as a winter hunting resort by Bernard Baruch.

Bernard Baruch is a name South Carolinians should cherish. Baruch was born in Camden in 1870 and became a Wall Street financier, stock investor, philanthropist, statesman and political consultant. After his success in business, he devoted time advising war-time Presidents Woodrow Wilson and Franklin Roosevelt. He was a personal friend of Winston Churchill.

Between 1905 and 1907, Baruch purchased a total of 69,690 acres of the former 18th century Hobcaw Barony, consolidating 69 plantations located on the peninsula known as Waccamaw Neck between the Winyah Bay and the Atlantic Ocean. Famous visitors included presidents, royalty and world leaders.

For an interesting and entertaining history of the plantation properties developed by wealthy northerners in Georgetown County for hunting purposes, I highly recommend Columbian David Hodges’ book Sunset Lodge in Georgetown: The Story of a Madam.  Hodges is a frequent visitor to Georgetown who conducted extensive interviews and research about Hazel Weisse, who moved to Georgetown in 1936, when the International Paper Company plant was being built, and established a brothel to entertain the builders. Despite being illegal, the business remained open for thirty-three years until Weisse retired in 1969.  Do yourself a favor, South Carolinians. Read this book.

But I digress.

Hobcaw Barony is a treasure. Baruch’s daughter, Belle, established a foundation to use the property as an educational and research preserve. The property includes 37 historic buildings representing the 18th and 19th century rice growing industry and the 20th century winter hunting resort. Tours of the property are open to the public. My brother, Alec Tuten, is one of the tour guides who will happily talk your ear off given half a chance.

The picturesque property reminds me of George Washington’s home at Mount Vernon but, sadly, little or no funding was established to maintain the buildings, so they are not preserved to the standards of Mount Vernon. The grounds, on the other hand, are beautifully maintained. For example, both Carolina and Clemson have established coastal and marine sciences programs at Hobcaw. Wetlands, forests and coastal ecosystems are studied. The entire property was named to the National Register of Historic Places in 1994. I recommend a visit to this little-known local gem!

An interesting lawsuit is now brewing in Georgetown County involving the property of Hobcaw Barony and adjacent North Inlet. The Baruch Foundation is claiming title to 8,000 acres of marsh at North Inlet, a vast marshland that has always been used by the public for recreational purposes. The lawsuit claims title to the property by virtue of a Kings Grant.

stay tuned

Local gossip indicates the Foundation simply intends to clean up title issues and does not intent to preclude the public from enjoying the property. But the complaint reads like a normal quiet title action of marshland property and the locals are nervous. An easement has been suggested to resolve the conflict, but this suggestion has been rebuffed by the Foundation.

Stay tuned to learn more about what will happen to this slice of God’s country.

Dear History, please stop repeating yourself!

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Hurricane Irma is the third disaster in two years for South Carolina

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Hurricane Irma is the third disaster to pummel our beloved state since this blog was launched in 2014. After the 1,000 year flood in October of 2015, Hurricane Matthew struck in October of 2016. Rebuilding is not complete from either catastrophe.

On my way to work this morning, I passed the remains of several businesses that were destroyed when Gills Creek flooded in 2015. Thankfully, I heard recently that Richland County is about to purchase those properties to turn them into green spaces. Other areas in and around Columbia are still in the rebuilding process or have been completely abandoned. Many homeowners have made their homes bigger, stronger and certainly taller. Others have given up and moved away.

Enter Irma. A friend joked on Facebook that we’re lucky here in South Carolina Irma passed us by. You would never know it passed us by from the many feet of water we’re seeing in pictures of Charleston, Beaufort, Hilton Head, Georgetown, Garden City and surrounding areas. And the pictures and video coming from Florida and the Caribbean, not to mention the pictures and video coming from the Hurricane Harvey disaster in Texas and Louisiana, all show unspeakable damage.

Our company’s home office is located in Jacksonville where surrounding streets are under water. Employees with power are trying to work remotely. Others are out of commission.

A wise man in our building here in Columbia said to me this morning that these disasters bring out the best and the worst in folks. There are looters, but there are many more heroes who have rescued their neighbors in boats. There are neighborhoods without power who are gathering in their streets for impromptu block parties. Chainsaws are chopping downed trees. Supplies and helping hands are being donated. Celebrities and charities are raising millions. I’d like to believe that we’re seeing much more good than bad in people.

Our hearts are breaking for those who have lost so much. Rebuilding will take time, resources and patience. Many have lost everything and are without insurance coverage. Millions are without power and water. Many are in shock.

Dirt lawyers are in an exceptional position to support clients who may not be familiar with the assistance available to them. We have all learned a lot in the last few years. I challenge each of us to continue to educate ourselves and to be available to offer the valuable advice our neighbors and others will need in the days ahead. Local, state and federal governments seem better prepared this time around and seem to be working better to coordinate efforts. Here is a link to the South Carolina Bar’s Key Assistance Numbers. South Carolinians are strong and resilient, and we are stronger and more resilient now than we were for the last disaster.

Let’s once again rise to the occasion, real estate lawyers, and provide the best advice available for our clients and friends who will need it as they sort out, clean up and rebuild.