Real Property – Restrictive Covenants – Developer’s Voting Rights – Unpaid Obligations – Suspension

Litchfield Plantation Association, Inc. v. Litchfield Plantation Co. (Lawyers Weekly No. 011-111-15, 6 pp.) (Per Curiam) Appealed from Georgetown County Circuit Court (Larry Hyman Jr., J.) S.C. App. Unpub.

Holding: Although the defendant-developer has failed to pay certain sums required of it by the development’s declaration of restrictive covenants, according to the declaration, this means the developer’s voting rights on the board of directors of the plaintiff-homeowners’ association are merely suspended, not terminated.

We affirm summary judgment in favor of the developer.

The declaration provides for the termination of the developer’s voting rights in only three situations – two of which are dependent on lot sales and the third of which is in the developer’s discretion. None of these situations has occurred.

Because we hold that the circuit court correctly determined the developer’s voting rights were suspended until it paid $149,981.60 – which the developer paid prior to this appeal – the developer is now in control of the board. The homeowners’ association’s appeal did not stay the circuit court’s ruling.

Affirmed.