Kiriakides v. School District of Greenville County, 382 S.C. 8, 675 S.E.2d 439 (2009)

Case Type: Regulatory Inverse Condemnation / Abandoned Condemnation

Brief Summary:

The Greenville County School District was negotiating with Kiriakides (Landowner) to purchase property adjacent to an existing school. The negotiations broke down and the School District prepared and served a condemnation notice to take the property by eminent domain.  The School District served the condemnation notice but did not file the notice in court and it ultimately abandoned the condemnation.  Kiriakides filed suit to challenge the School District’s right to take the property and asserted an inverse condemnation claim for stigma damages during the nine month period between when the School District served the condemnation notice and when it ultimately abandoned the condemnation. 

The questions for the appellate court were whether Kiriakides had alleged an inverse condemnation claim for stigma damages and whether Kiriakides was entitled to attorney’s fees for the abandoned condemnation action.  The South Carolina Supreme Court decided that Kiriakides was entitled to attorney’s fees for the abandoned condemnation action but that it had not alleged a viable claim for inverse condemnation for stigma damages.

Landowner Takeaway:

• Document all instances where government action caused you to lose a potential buyer for your property, an opportunity to develop, or caused any other negative impacts.  The more concrete these impacts are, the stronger your potential argument for damages from an abandoned condemnation.
• The length of the restriction on your property and the behavior of the government entity during the process are key factors in evaluating a regulatory taking.  The more information and documentation you can provide your attorney on these issues the better.

Attorney Takeaway:

• A right-to-take challenge (S.C. Code § 28-2-470) must be commenced within 30 days from the date of service of the condemnation notice.  It is the service of the condemnation notice, not the filing of the condemnation notice in court, that triggers the time period for right-to-take challenges.
• Showing an unreasonably delay (something longer than 9-11 months), the condemnor’s bad faith, and solid proof of damages could be distinguishing factors for a similar case in the future.
• Where a condemnation is abandoned, the condemning authority must pay for reasonable attorney’s fees, litigation expenses, and costs.  S.C. Code § 28-2-510(C).