Railway to pay $4.15M for company’s building 

The state of South Carolina has reached a $4.15 million post-trial settlement with a family-owned technology company in a condemnation case, the company’s attorneys report. Trenholm Walker and John Linton Jr. of Walker Gressette Freeman Linton in Charleston report that the issue dates back to a 2016 attempt by the South Carolina Department of Commerce’s Division of Public Railways to acquire the Charleston location of eLifespaces for use as a Navy base intermodal facility.

According to filings, the division offered $1.8 million for the company’s building and half acre of land. But the landowners, Gateway Properties, argued that the structure, completed in 2007, was a “custom, state-of-the-art” facility and the proposed price was insufficient. At trial in county court in 2019 their experts put the true value as high as $4.58 million. A jury ultimately awarded $3.75 million. The court also awarded interest of nearly $225,000 and litigation expenses of more than $135,000. 

The state appealed the verdict. Ultimately, a settlement was reached in which Gateway received an additional $2.35 million in addition to the $1.8 million already on deposit, with $400,000 of that going to litigation expenses and interest.  

Walker and Linton said that their client “is pleased at the actions taken by the [South Carolina Ports Authority] board to finally honor the verdict of the jury and resolve this matter after four years of litigation.” 

Keith Babcock of Lewis Babcock represented the Division of Railways. He did not return a request for comment.  

SETTLEMENT REPORT – EMINENT DOMAIN 

Amount: $4.15 million 

Injuries alleged: Condemnation of 0.55 acres of improved land, attorney’s fees, litigation costs and interest 

Case name: South Carolina Department of Commerce, Division of Public Railways v. Gateway Properties of Greater Charleston, LLC; NBSC; VFC Partners 15 LLC; The Loft Pilates Center, LLC; Scott Miner; County of Charleston 

Court: Charleston County Circuit Court 

Case No.: 2017-CP-10-5382 

Judge: Alex Kinlaw, Jr.  

Date of verdict: March 28, 2019 (case settled while verdict was on appeal) 

Most helpful experts: Thomas Hartnett of Mount Pleasant (appraiser) and Steve Morey of Charleston (cost estimate) 

Attorneys for landowner: G. Trenholm Walker and John Linton Jr. of Walker Gressette Freeman Linton in Charleston 

Attorney for condemnor: Keith Babcock of Lewis Babcock