Claims

Last Updated April 18, 2022

Q: Did members of the group file a lawsuit against Palmetto Bluff, South Street Partners, and the Montage Hotel?

A: Yes. Despite years of outreach to the Developer to resolve these original issues amicably and professionally, there was no other option. This group pursued two unsuccessful rounds of mediation – first with the original developer, then in good faith with the new Developer, South Street Partners (SSP) and their investors, and the Montage Palmetto Bluff Hotel. 

Since there was no resolution, members of this group filed a class-action lawsuit, and as individuals, with derivative claims against SSP, Palmetto Bluff’s affiliated entities, and the Montage Hotel and its affiliated entities, on April 12, 2022. 

Q: What are the main tenets of your claims?

The primary allegations behind the claims include:

• Violations of the Community Charter and other governing documents

• Breach of fiduciary duty by the Developer and by stewards of the Preservation Trust and Palmetto Bluff Club

• Improper management of the Palmetto Bluff Club and failure to plan for and provide adequate amenities for the anticipated increasing number of homes and lot sales

• Unlawful mandatory participation in the for-profit Club and associated illegal charging of purportedly automatic transfer (joining) fees that are now upwards of $30,000; and $5,000 for existing members to transfer when purchasing a new property

• Improper calculation of fees and dues

• Breaches of contract 

• Disparate treatment of and impact on owners of homes in Designated Rental Areas

Causes of action include but are not limited to Civil Conspiracy, Fraud, Breach of Fiduciary Duty, Violation of the South Carolina Unfair Trade Practices Act and the South Carolina Homeowners Association Act, violation of the law and public policy behind South Carolina’s statutory prohibition against Transfer Fee Covenants, and Breach of Contract and Interference with Contractual Relationships.

Q: Can you share the full complaint with me?

A: The complaint is public record. Anyone is welcome to read it at: 

Q: Have you engaged directly with South Street Partners and the Montage Hotel on the issues prior to the filing?

A: Yes. Good faith efforts to engage were made countless times over an extended period. Also, the group followed the suggested alternative dispute resolution procedures in the Community Charter, including two good faith mediations with the Developer and other stakeholders in a confidential setting. None of these attempts resulted in a resolution.