Updates

WARMTH, BALANCE, CONNECTION

THE CALLAWASSIE ISLAND MEMBERS CLUB (“CIMC”)
MEMBERSHIP REQUIREMENTS AND LEGAL UPDATES

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Membership Requirements

Callawassie Island’s facilities and amenities are owned, operated and maintained by the Callawassie Island Members Club (CIMC), an entity owned in its entirety by Callawassie Island property owners. Since no other financial support, such as tax or developer monies, is available to maintain the community and its amenities, all owners equally share in that cost. This support obligation is the basis for requiring that a purchaser of Callawassie Island real estate also become a member of the CIMC. This membership requirement is not unique to Callawassie Island; it exists at many of our neighboring, gated, member-owned communities. Typically, owners of property are obligated to pay monthly fees as long as they own property. This requirement is fully-explained and clearly detailed prior to any property purchase in the membership contracts new residents execute.

A small number of our members, mostly lot owners who do not reside on the island, determined that they no longer intended to honor their contractual commitments to pay their share of the costs of owning on Callawassie Island, despite having previously agreed to do so.

  • CIMC obtained summary judgments against specific members confirming the members’ obligations to honor their written commitments to pay Club dues.
  • On appeal in one case, the South Carolina Court of Appeals decided there were issues of fact not considered earlier and sent the case back to the trial court for trial.
  • CIMC appealed this decision to the SC Supreme Court and asked the SC Supreme Court to reverse the Court of Appeals and restore the summary judgment on the basis that the Court of Appeals did not properly apply the applicable statute. The Supreme Court agreed to review the case and heard oral arguments on May 1, 2018. We are now awaiting its written decision.
  • On May 2, 2018, the day after the Supreme Court hearing, the South Carolina Court of Appeals reversed three additional trial court summary judgments in favor of CIMC. The Court of Appeals based its decision in the three cases on the same reasoning of its earlier decision, which the Supreme Court currently has under review. We are in the process of appealing these new decisions to the Supreme Court, and we anticipate that the decision of the Supreme Court will apply to all of the cases that are on appeal.
  • On August 29, 2018, the Supreme Court reversed the Court of Appeals and reinstated the Beaufort Circuit Court’s judgment in favor of the Club.

The substantial majority of the Island owners continue to honor their commitments and support the Club’s efforts to have delinquent owners comply with their obligations to contribute their share of the costs of owning on Callawassie on Island.

Membership Satisfaction

Property values have rebounded from 2008 at rates similar to those of other private communities and clubs, and CIMC has added 182 new members (on a total membership base of 636 members) since the litigation began. Our annual membership survey shows an 18% increase in overall member satisfaction during the last five years.

WARMTH, BALANCE, CONNTECTION

THE CALLAWASSIE ISLAND MEMBERS CLUB (“CIMC”)
MEMBERSHIP REQUIREMENTS AND LEGAL UPDATES

Download a PDF copy


Membership Requirements

Callawassie Island’s facilities and amenities are owned, operated and maintained by the Callawassie Island Members Club (CIMC), an entity owned in its entirety by Callawassie Island property owners. Since no other financial support, such as tax or developer monies, is available to maintain the community and its amenities, all owners equally share in that cost. This support obligation is the basis for requiring that a purchaser of Callawassie Island real estate also become a member of the CIMC. This membership requirement is not unique to Callawassie Island; it exists at many of our neighboring, gated, member-owned communities. Typically, owners of property are obligated to pay monthly fees as long as they own property. This requirement is fully-explained and clearly detailed prior to any property purchase in the membership contracts new residents execute.

A small number of our members, mostly lot owners who do not reside on the island, determined that they no longer intended to honor their contractual commitments to pay their share of the costs of owning on Callawassie Island, despite having previously agreed to do so.

  • CIMC obtained summary judgments against specific members confirming the members’ obligations to honor their written commitments to pay Club dues.
  • On appeal in one case, the South Carolina Court of Appeals decided there were issues of fact not considered earlier and sent the case back to the trial court for trial.
  • CIMC appealed this decision to the SC Supreme Court and asked the SC Supreme Court to reverse the Court of Appeals and restore the summary judgment on the basis that the Court of Appeals did not properly apply the applicable statute. The Supreme Court agreed to review the case and heard oral arguments on May 1, 2018. We are now awaiting its written decision.
  • On May 2, 2018, the day after the Supreme Court hearing, the South Carolina Court of Appeals reversed three additional trial court summary judgments in favor of CIMC. The Court of Appeals based its decision in the three cases on the same reasoning of its earlier decision, which the Supreme Court currently has under review. We are in the process of appealing these new decisions to the Supreme Court, and we anticipate that the decision of the Supreme Court will apply to all of the cases that are on appeal.
  • On August 29, 2018, the Supreme Court reversed the Court of Appeals and reinstated the Beaufort Circuit Court’s judgment in favor of the Club.

The substantial majority of the Island owners continue to honor their commitments and support the Club’s efforts to have delinquent owners comply with their obligations to contribute their share of the costs of owning on Callawassie on Island.

Membership Satisfaction

Property values have rebounded from 2008 at rates similar to those of other private communities and clubs, and CIMC has added 182 new members (on a total membership base of 636 members) since the litigation began. Our annual membership survey shows an 18% increase in overall member satisfaction during the last five years.