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ELECTRONICALLY FILED - 2017 Nov 16 4:03 PM - HORRY - COMMON PLEAS - CASE#2017CP2607597

STATE OF SOUTH CAROLINA ) IN THE COURT OF COMMON PLEAS


) FIFTEENTH JUDICIAL CIRCUIT
COUNTY OF HORRY ) CIVIL ACTION NO.

Red Bluff Trade Center, LLC


and )
Red Bluff Rock, LLC, )
) SUMMONS
Plaintiffs, )
)
vs. )
)
Horry County and Horry County Council, )
)
Defendants. )
)

TO: THE DEFENDANTS ABOVE-NAMED:

YOU ARE HEREBY SUMMONED and required to reply to the Appeal and Complaint in

this action, a copy of which is herewith served upon you, and to serve a copy of your reply to the

said Appeal and Complaint upon their subscribers at The Pearce Law Group, P.C., 1314

Professional Drive, Myrtle Beach, South Carolina, 29577, within thirty (30) days after the service

hereof, exclusive of the day of such service. If you fail to reply to the Appeal and Complaint within

the time aforesaid, judgment by default will be rendered against you for the relief demanded in the

Appeal and Complaint.

[SIGNATURE PAGE TO FOLLOW]


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THE PEARCE LAW GROUP, P.C.

By: /s/ Christopher H. Pearce


Christopher H. Pearce., Esquire
S.C. Bar No.: 71083
cpearce@pearcelawgroup.com
Kerry K. Jardine, Esquire
S.C. Bar No.: 101090
kjardine@pearcelawgroup.com
1314 Professional Drive
Myrtle Beach, South Carolina 29577
Telephone: (843) 839-3210
Facsimile: (843) 839-3214

ATTORNEYS FOR PLAINTIFFS

November 16, 2017


Myrtle Beach, South Carolina
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STATE OF SOUTH CAROLINA ) IN THE COURT OF COMMON PLEAS
) FIFTEENTH JUDICIAL CIRCUIT
COUNTY OF HORRY ) Case No.

Red Bluff Trade Center, LLC and


Red Bluff Rock, LLC,

Plaintiffs,
APPEAL AND COMPLAINT
vs.
[JURY TRIAL DEMANDED]
Horry County and
Horry County Council,

Defendants.

The Plaintiffs Red Bluff Trade Center, LLC and Red Bluff Rock, LLC (together,

Plaintiffs) complaining of the Defendants Horry County and Horry County Council herein,

would show and allege to this Honorable Court as follows:

PARTIES AND JURISDICTION

1. A jury trial is hereby demanded on all issues so triable.

2. Red Bluff Trade Center, LLC is a limited liability company organized under the

laws of South Carolina. It owns that real property in the Red Bluff Community of Horry County,

South Carolina, containing approximately 53.83 acres and identified with PIN 30000000011 (the

Property). The Property is currently zoned Commercial Agriculture (AG2).

3. Red Bluff Rock, LLC is a limited liability company organized under the laws of

South Carolina and formed for the specific purpose of operating a limestone and fill dirt mine

on the property owned by Red Bluff Trade Center, LLC.

4. Defendant Horry County (hereinafter, the County) is a body politic and corporate

for the purpose of being sued.

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5. Defendant Horry County Council (the Council) is a body politic and corporate

and the county council for Horry County, South Carolina.

6. The Court has jurisdiction over the parties and subject matter hereto in that the

allegations involve the Councils denial of a resolution that would have allowed Red Bluff Rock,

LLC to operate a mine on Red Bluff Trade Center, LLCs property. Said property is located in

Horry County.

7. Venue is proper as the acts complained of occurred in Horry County.

FACTS

8. On or about September 25, 1984, the Council enacted a comprehensive Code of

Ordinances a/k/a the Horry County Code of Ordinances (hereinafter, the Code of Ordinances).

9. In 1994, the State of South Carolina enacted the South Carolina Local Government

Comprehensive Planning Enabling Act of 1994 (hereinafter, the Planning Act), S.C. Code Ann.

6-29-320, et al. Pursuant to the Planning Act, when a county adopts a comprehensive zoning plan,

zoning regulations must be made in accordance with the comprehensive plan for the jurisdiction

and all conditions, restrictions, or limitations must be set forth in the text of the zoning ordinance.

See S.C. Code Ann. 6-29-720(B), 6-29-79(B)(6).

10. On or about October 7, 1999, the Council enacted The Zoning Ordinance of Horry

County, South Carolina (hereinafter, the Zoning Ordinance) pursuant to Title 6, Chapter 29,

Code of Laws of South Carolina, 1976, as amended in accordance with the Comprehensive Plan.

11. On or about February 7, 2006, the Council enacted Ordinance 141-05, which

amended the Code of Ordinances to add review and permitting standards for all commercial

mining and established Chapter 13, Article VI, titled Mining Permits (hereinafter, Chapter 13,

Article VI or the Mining Permits Ordinance).

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12. The Mining Permits Ordinance exists distinct, separate, and apart from and outside

the regulatory plan, guidance, and text of the Zoning Ordinance.

13. Subject to two minor exceptions, the Mining Permits Ordinance requires a permit

be obtained for [a]ll mining operations in the Forest Agriculture (FA) and Commercial Forest

Agriculture (CFA) zoning districts as conditional uses pursuant to the zoning ordinance. By its

terms, the Mining Permits Ordinance does not apply to any other zoning district.

14. Upon information and belief, at some point in or prior to 2006, the Forest

Agriculture (FA) and Commercial Forest Agriculture (CFA) zoning districts ceased to be eligible

for zoning purposes under the Zoning Ordinance. However, the Mining Permits Ordinance

continues to reference these zoning districts.

15. In or about October 2007, Red Bluff Trade Center, LLC purchased the Property.

The purchase price was $2,691,500.00. At the time, the Property was zoned High Bulk Retail

(RE4).

16. Prior to purchase, Red Bluff Trade Center, LLC knew it was highly likely that the

Property contained limestone reserves. Red Bluff Trade Center, LLC confirmed that fact via

testing after purchase.

17. Red Bluff Rock, LLC did not commence efforts to commence a mining operation

on the Property for some time after purchase, because William H. Griste, the owner of Red Bluff

Rock, LLC and Red Bluff Trade Center, LLC, was subject to a pre-existing non-compete

agreement that extended for a fifty-mile radius with respect to mining, which radius encompassed

the site of the Property. The non-compete clause terminated in April of 2014.

18. Based on Plaintiffs intent and the results of the tests, when it was determined that

the far superior and most economically beneficial use of the Property was as a mine and Mr. Griste

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was no longer under the restrictions of a non-compete agreement, Plaintiffs began the process of

working with the County and State of South Carolina to take the necessary steps to mine the

Property.

19. Plaintiffs intended use of the Property was as a +/- 35 acre fill dirt and limestone

mine (the Mine).

20. Using conservative estimates, the Property has approximately 5,300,000 tons of

limestone, which at current market rate is worth approximately $12.00 a ton. The limestone is

highly valuable resource, which is scarcely located in this County. Thus, using conservatives

estimate, the limestone in the Property is worth $63,600,000.00.

21. Using conservative estimates, the Property has approximately 81,000 cubic yards

of topsoil, which at current market rates is worth approximately $8.00 a cubic yard. Thus, using

conservative estimates, the topsoil in the Property is worth a total of $648,000.00.

22. Using conservative estimates, the Property has approximately 1,300,000 cubic

yards of fill dirt, which at current market rates is worth approximately $4.50 a cubic yard. Thus,

using conservative estimates, the fill dirt in the Property is worth a total of $5,850,000.00.

23. In total, at conservative estimates, the retail value of the material sought to be mined

is $70,098,000.00.

24. In or around 2016, Plaintiffs and their agents and/or representatives began

discussions with the County regarding the mining and rezoning of the Property from High Bulk

Retail (RE4) to a zoning district that would permit mining activities.

25. Pursuant to the Code of Ordinances, since in or about 2006, there was no zoning

district that would allow a mine of the type proposed by Plaintiffs.

26. Upon information and belief, since in or about 2006, the County had been using the

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Planned Development District (PPD) zoning district to allow the operation of mines of the type

sought to be developed by Plaintiffs.

27. Upon information and belief, the County was using the Planned Development

District (PPD) zoning district as a loophole to avoid the Mine Permit Ordinance.

28. Upon information and belief, the County amended the Planned Development

District (PPD) zoning district so as to close this loophole.

29. Plaintiffs engaged DDC Engineers, Inc. to assist with rezoning its Property from

High Bulk Retail (RE4) to a district that would allow the development and operation of the Mine,

such as a Planned Development District (PDD).

30. DDC Engineers, Inc., acting as agent for Plaintiffs, originally intended to submit a

rezoning submittal to the County for the Property from High Bulk Retail (RE4) to a Planned

Development District (PDD).

31. However, on November 29, 2016, DDC Engineers, Inc. met with the Planning and

Zoning Department of the County regarding the planned rezoning district and proposed use

mining - and was specifically advised that the Property should be rezoned to Commercial

Agriculture District (AG2).

32. At that meeting, the County informed DDC Engineers, Inc. that the Commercial

Agriculture District (AG2) was being amended to allow mining as a conditional use.

33. The rezoning of Red Bluff Trade Center, LLCs Property and the amendment of

the Commercial Agriculture District (AG2) to allow mining as a conditional use occurred parallel

to one another.

34. The application for the rezoning clearly identified the reason for the requested

rezoning was to establish a mining operation.

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35. The Rezoning Review Sheet indicated that transportation information had been

assessed as part of the rezoning process.

36. The Rezoning Review Sheet indicated that Horry County Staff recommended

approval of the rezoning.

37. On or about February 21, 2017, the Council enacted Ordinance 06-17, which

amended Commercial Agriculture District (AG2) to permit mining as a conditional use.

38. On February 21, 2017, the Council enacted Ordinance 13-17 amending the official

zoning maps for Horry County, South Carolina, as to rezoning the Property from High Bulk Retail

(RE4) to Commercial Agriculture (AG2).

39. The rezoning also substantially changed the economic uses of the Property so that

the Property is no longer eligible for the more economically profitable uses that are associated with

High Bulk Retail (RE4) as opposed to Commercial Agriculture (AG2).

40. The only reason to rezone the Property from High Bulk Retail (RE4) to the lesser

economically profitable district Commercial Agriculture (AG2) was because the County and

Plaintiffs understood that the Property would be used as a mine, which is the only superior

economic use available with the Property zoned as Commercial Agriculture (AG2).

41. Simultaneously with its efforts to rezone the Property, Red Bluff Rock LLC

submitted an application for a Mine Operating Permit to the South Carolina Department of Health

and Environmental Control Bureau of Land and Waste Management Division of Mining and Solid

Waste Permitting (DHEC). The application was submitted on December 13, 2016.

42. Simultaneous with the rezoning efforts and submission of an application for a Mine

Operating Permit to DHEC, Red Bluff Rock, LLC prepared a Mining Permit Application for Horry

County. Plaintiffs filed this permit with Horry County Planning and Zoning on or about April 3,

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2017.

43. Plaintiffs have also submitted the required applications and documents to various

other state and federal authorities in accordance with its intent to mine the Property.

44. Both the Horry County Engineering and Horry County Stormwater Departments

deemed the mining operations approvable.

45. On July 24, 2017, the Infrastructure and Regulation Committee of Horry County,

recommended that the mining permit be issued in accordance with the terms and conditions of

DHEC.

46. On August 16, 2017, DHEC approved the Application and Reclamation Plan for a

Mine Operating Permit and issued Mine Permit I-002144 to Red Bluff Rock, LLC to operate Red

Bluff Rock Mine.

47. Upon information and belief, all applicable state and federal authorities have given

the required approvals for the Property to be operated as a mine or will give their approval once

the Mine Permit is approved by Council.

48. Upon information and belief, as of August 22, 2017, the only step necessary to

establish the Mine, and to comply with Horry Countys Mining Permits Ordinance was a hearing,

at which Plaintiffs would have the opportunity to be heard, public comments to be taken, and

Councils approval of the Resolution and Mining Permit Application.

49. Prior to August 22, 2017, Plaintiffs invested at least $100,000.00 in geological

testing and fees to consultants to rezone the Property, acquire Mine Permit I-002144, acquire all

other necessary approvals from state and federal agencies, and to apply for a mining permit with

Horry County.

50. Upon information and belief, prior to August 22, 2017, there were investors who

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would be willing to invest or enter into business relationships with Plaintiffs.

51. The August 22, 2017, Council meeting, Plaintiffs Mine Permit Application was

submitted as Resolution R-92-17 (the Resolution) and brought before counsel for public

presentation and a public hearing. After several members of the community voiced objections,

public input was closed and Councilman Hardee moved to defer the Resolution until the

community could gather to meet and discuss the same. The motion passed.

52. Plaintiffs and/or their agents or representatives were not provided any opportunity

to be heard at the August 22, 2017 meeting by Council in support of its Mine Permit Application.

53. Upon information and belief, there is no official transcript of the August 22, 2017,

Council meeting.

54. Upon information and belief, there was no sworn testimony regarding the Mine

Permit Application.

55. Upon information and belief, there was no evidentiary basis to defer the Resolution.

56. On September 26, 2017, a community meeting was subsequently held at the

Pleasant Hill Baptist Church located near the Property to discuss the proposed mining operation.

This meeting was attended by agents of Plaintiffs and County staff.

57. Again, upon information and belief, there is no official transcript of the September

26, 2017, community meeting.

58. Upon information and belief, there was no sworn testimony regarding the Mine

Permit Application.

59. Thereafter, the Resolution was again placed on the agenda for the October 17, 2017,

Council meeting.

60. However, on the morning of October 17, 2017, James M. Wooten, PE a/k/a Mike

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Wooten of DDC Engineers, Inc., as agent for Plaintiffs, called David Schwerd, the Deputy Director

of Horry County Planning and Zoning and specifically requested the Resolution be withdrawn and

removed from the October 17, 2017 agenda and/or deferred until Plaintiffs had time to fully

address and respond to all of the public comments received related to the Mine.

61. A confirmatory email was sent that morning to Mr. Schwerd, by Mr. Wooten, with

a copy of that email sent to Council Chair Mark Lazarus.

62. Plaintiffs relied on Mr. Schwerds communications with Mr. Wooten and had no

notice that the Resolution would be heard on October 17, 2017.

63. However, on October 17, 2017, the Resolution was taken up by Council, public

comments were received, and a vote on the Resolution was taken wherein the resolution was

denied.

64. Once again, Plaintiffs and their agents and/or representatives were denied the

opportunity to be heard by Council in support of its Mine Permit Application.

65. Upon information and belief, Council did not consider the adequacy of the

transportation network and the compatibility with the surrounding community in determining

whether the Resolution should be approved as required by 13-63 of the Code of Ordinances.

66. Upon information and belief, there is no official transcript of the October 17, 2017

Council meeting.

67. Upon information and belief, there was no sworn testimony regarding the Mine

Permit Application.

68. Upon information and belief, there was no evidentiary basis to deny the Resolution.

69. As of the date of this filing, no meeting minutes for the October 17, 2017 Council

meeting are publicly available.

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70. On November 2, 2017, Christopher Pearce, Esquire, of The Pearce Law Group,

P.C. sent a letter to Arrigo Carotti, Esquire, the County Attorney, David Schwerd of County

Planning and Zoning, and Pat Hartley, the Clerk to Council requesting a Request for

Reconsideration or pre-litigation mediation, pursuant to S.C. Code of Laws 6-29-310, et al..

71. Attorney Carrottis response, dated November 2, 2017, stated, inter alia, that the

Countys position was that S.C. Code Ann. 6-29-310 et al did not apply.

FOR A FIRST CAUSE OF ACTION


(Appeal)

72. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

73. Section 13-65 of the Code of Ordinances provides that:

Any person having a substantial interest in the issuance, denial or revocation


of a mining permit may appeal the decision of county council to circuit court
in and for the County of Horry by filing with the clerk of court a petition in
writing setting forth plainly, fully and distinctly wherein such decision is
contrary to law.

74. Plaintiffs hereby appeal from Councils denial of the Application for Mining Permit

and denial of the Resolution, which denial occurred at a meeting of the Council on October 17,

2017, on the ground that the Councils decision is unlawful, irrational, arbitrary and capricious and

unsupported by substantial, reliable, and probative evidence, was made with unbridled discretion,

conflicts with state law, and violates the Plaintiffs rights as secured by the Fifth and Fourteenth

Amendments to the Constitution of the United States.

75. More specifically, the Councils decision denying the Resolution and issuance of

the Mining Permit should be reversed for each of the following reasons:

a. It was in violation of the Plaintiffs Fifth and Fourteenth Amendment rights;

b. It was made without permitting Plaintiffs notice and an opportunity to be heard;

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c. The Councils decision and the Mining Permits Ordinance deprives Plaintiffs

of an adequate record to appeal;

d. It was arbitrary and capricious;

e. It was based on a decision made without consideration of Councils own criteria

to approve a mine, as required by Section 13-63 of the Code of Ordinances, to

wit: County council shall consider the adequacy of the transportation network

and the compatibility with the surrounding community in determining whether

the request should be approved or disapproved;

f. The Mining Permits Ordinance allowed Council to act with unbridled discretion

and, thus, any decision based thereon should be reversed;

g. Section 13-63 of the Code of Ordinances should be considered void for

vagueness and any decision based thereon should be reversed;

h. The Mining Permits Ordinance, including Section 13-63, conflicts with South

Carolina state law, specifically, the Planning Act, and any decision based

thereon should be reversed;

i. The Council is estopped from permitting the rezoning of the Property for the

specific use of a mine and then refusing to issue permit in accordance with its

approved use, to Plaintiffs detriment;

76. Plaintiffs are therefore entitled to an order reversing the decisions of the Council.

FOR A SECOND CAUSE OF ACTION


(Promissory Estoppel)

77. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

78. At all relevant times, Plaintiffs were in communication with County, including

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Council and the County Planning and Zoning Department.

79. It was at the express direction of the County Planning and Zoning Department that

Red Bluff Trade Center, LLC requested the zoning change of its Property from High Bulk Retail

(RE4) to Commercial Agriculture (CA2) to accommodate a mining operation.

80. Council passed ordinance 13-17 rezoning the Property from High Bulk Retail

(RE4) to Commercial Agriculture (CA2) with the knowledge that Plaintiffs intended to establish

a mining operation.

81. At all relevant times, County agents and/or representatives promised that that it

would approve the mining operation and gave suggestions as to how to accomplish that goal.

82. Plaintiffs reasonably relied on Countys promises.

83. Plaintiffs reliance was expected and foreseeable by County.

84. Plaintiffs have been injured in that as a direct and proximate result of Countys

misconduct, it is unable to develop, occupy and use its real property for a lawful use, it has and

will continue to suffer the loss of business revenues and profit, the loss of the economic use of its

Property and the loss of the value of its investment, for which it is entitled to recover compensatory

damages.

FOR A THIRD CAUSE OF ACTION


(Declaratory Judgment -Mining Permits Ordinance)

85. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

86. An active and now existing dispute and/or controversy exists between Plaintiffs and

Defendants.

87. This action is brought under the provisions of Rule 57, SCRCP, and S.C. Code Ann.

15-53-10, the Declaratory Judgment Act, and there is a real and justiciable controversy between

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the parties by these proceedings, the Plaintiffs ask that this Court inquire into and declare the rights

and obligations of the parties hereto arising out of the facts set forth above and below.

88. Local government ordinances conflict with state laws when its conditions, express

or implied, are inconsistent and irreconcilable with South Carolina law.

89. The Mining Permits Ordinance, in whole or in part, is a limitation and condition on

zoning not set forth in the Zoning Ordinance.

90. The Mining Permits Ordinance, in whole or in part, directly conflicts with the

Planning Act.

91. Plaintiffs are therefore entitled to a declaration that the Mining Permits Ordinance

(Chapter 13, Article VI, of the Code of Ordinances) is void, in whole or in part.

FOR A FOURTH CAUSE OF ACTION


(Declaratory Judgment Violation of the Fourteenth Amendment)

92. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

93. An active and now existing dispute and/or controversy exists between Plaintiffs and

Defendants.

94. This action is brought under the provisions of Rule 57, SCRCP, and S.C. Code Ann.

15-53-10, the Declaratory Judgment Act, and there is a real and justiciable controversy between

the parties by these proceedings, the Plaintiffs ask that this Court inquire into and declare the rights

and obligations of the parties hereto arising out of the facts set forth above and below.

95. Section 13-63 of the Code of Ordinances is unconstitutional under the Fourteenth

Amendment on its face and as applied to Plaintiffs for each of the following reasons:

a. The law is unconstitutionally vague;

b. The law is unconstitutionally overbroad;

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c. The law vests arbitrary and unfettered discretion in the Council in determining

whether to issue a mine permit; and

d. The law irrationally, arbitrarily, and capriciously deprives individuals and entities

of a cognizable property interest.

96. The Mining Permits Ordinance is unconstitutional under the Fourteenth

Amendment as applied to Plaintiffs because Plaintiffs were deprived of notice and an opportunity

to be heard.

97. Plaintiffs are therefore entitled to a declaration that Section 13-63 of the Code of

Ordinances is unconstitutional on its face and as applied and that the Mining Permits Ordinance

(Chapter 13, Article VI of the Code of Ordinances) is unconstitutional as applied.

FOR A FIFTH CAUSE OF ACTION


(Damages - Violation of the Fourteenth Amendment)

98. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

99. As a direct result of Councils misconduct, Plaintiffs have been deprived of its

rights secured by the Fourteenth Amendment, as they are unable to develop, occupy, and use their

real property for a lawful use, they will suffer the loss of business revenues and profits, the loss of

the economic use of their property and the loss other value of their investment, for which they are

entitled to recover compensatory damages.

FOR A SIXTH CAUSE OF ACTION


(Declaratory Judgment Insufficiency of Record/Due Process)

100. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

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101. An active and now existing dispute and/or controversy exists between Plaintiffs and

Defendants.

102. This action is brought under the provisions of Rule 57, SCRCP, and S.C. Code Ann.

15-53-10, the Declaratory Judgment Act, and there is a real and justiciable controversy between

the parties by these proceedings, the Plaintiffs ask that this Court inquire into and declare the rights

and obligations of the parties hereto arising out of the facts set forth above and below.

103. The actions of Council, as the Countys governing body, are unconstitutional under

the Fourteenth Amendment as applied to Plaintiffs.

104. There are no findings of fact or conclusions of law made by the Council relating to

the Resolution.

105. There is no signed document denying the resolution.

106. Plaintiffs have been deprived of developing an adequate record to appeal due to the

actions, inactions, and regulations of the Council.

107. Plaintiffs are therefore entitled to a declaration that the Councils actions in failing

to develop a sufficient record to appeal violate Plaintiffs Fourteenth Amendment rights, reversing

the Councils denial of the Resolution and requiring the Council to develop a full record to appeal.

FOR A SEVENTH CAUSE OF ACTION


(Damages Violation of the Fifth Amendment)

108. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

109. Plaintiffs are aggrieved by the actions of the Council in denying the Resolution

because it substantially diminishes the value of Plaintiffs Property and preclude Plaintiffs

publicly announced plans to develop its Property as a mining operation.

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110. Plaintiffs had both the intent and capacity to develop the Property as aforesaid, and

Plaintiffs expectations were reasonable under the circumstances.

111. Plaintiffs expended large amounts of money and other resources in preparation for

the development of the Property, all of which are lost as a result of the actions taken by the Council

in denying the Resolution and Application for a Mine Permit.

112. The Fifth Amendment to the United States Constitution, which is applicable to the

State of South Carolina and its political subdivisions, including the Council as the Countys

governing body, by virtue of the Fourteenth Amendment to the United States Constitution provides

in pertinent part as follows: No person shall be deprived of property, without due process of

law; nor shall private property be taken for the public use, without just compensation.

113. But for the Countys Mining Permit Ordinance, Councils action in denying the

Resolution would have been unnecessary.

114. The Councils action was affirmative government action.

115. Government statutes, ordinances, or regulations that substantially further important

public policies may nevertheless amount to a taking of private property for public use to the extent

that such statutes, ordinances, or regulations frustrate the property owners when there is an

economic impact of the regulation or regulatory action on the property owner.

116. Here, Plaintiffs acquired its Property with the expectation of developing a mining

operation.

117. The Councils denial of the issuance of the Mining Permit for Plaintiffs Property

has substantially diminished the value of Plaintiffs Property.

118. The character of the governmental action taken by the Council is not such that the

County can avoid compensating Plaintiffs for the economic effect of its regulations on Plaintiffs.

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The Council, in effect, imposed a regulation that does not permit Plaintiffs to develop their

property to anything of significant value whereas the Mine would generate, at conservative

estimates, materials worth $70,098,00.00.

119. There is no sound evidence to support the Councils denial of the Mining Permit.

120. The Councils decision was arbitrary, irrational, and undertaken without having

heard from Plaintiffs, their representatives and/or agents.

121. The Councils denial of the Resolution and Application for Mining Permit

constitutes a regulatory taking of Plaintiffs property without just compensation or due process of

law in violation of the Fifth and Fourteenth Amendments of the United States Constitution.

122. S.C. Code Ann 28-11-30(3) provides that [w]here an inverse condemnation

proceeding is instituted by the owner of any right, title or interest in real property because of use

of his property in any program or project, the court, rendering a judgment for the plaintiff in such

proceeding and awarding compensation for the taking of property shall determine and award or

allow to such plaintiff, as part of such judgment, such sum as will, in the opinion of the

courtreimburse such plaintiff for his reasonable costs, disbursements and expenses, including

reasonable attorney, appraisal and engineering fees actually incurred because of such proceeding.

123. Plaintiffs are informed and believe that they are entitled to recover in these

proceedings just compensation for the regulatory taking of its Property, plus prejudgment interest

as well as its expenses as aforesaid, including attorneys fees, and/or a judgment declaring the

aforesaid Mining Permits Ordinance invalid, in part or in whole, on its face or as applied to

Plaintiffs.

FOR AN EIGHTH CAUSE OF ACTION


(Violation of the Article I 13 of the South Carolina Constitution)

124. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

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herein.

125. The actions of the Council in taking Plaintiffs Property without just compensation

also violate Article I, 13 of the South Carolina Constitution, which provides in pertinent part that

private property shall not be takenfor public use without just compensation being first made

therefor.

126. Under the South Carolina Constitution, a regulation that advances a legitimate state

interest may nevertheless constitute a taking if it deprives an owner of significantly all of its

economically viable use of its land.

127. A finding of value must be considered under the Takings Clause by reference to the

economic impact on the regulatory action.

128. The Councils action as aforesaid in denying the Resolution and the Application for

the Mine Permit has deprived Plaintiffs of substantially all of the economically viable use of all or

part of its land.

129. Plaintiffs are informed and believe it is entitled to recover in these proceedings just

compensation for the regulatory taking of its property as aforesaid, including prejudgment interest,

expenses, and attorneys fees, and/or a judgment declaring the aforementioned Mining Permits

Ordinance invalid, in part or in whole, and facially or as applied to Plaintiffs.

FOR A NINTH CAUSE OF ACTION


(Violation of 42 U.S.C. 1983)

130. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

131. 42 U.S.C. 1983 provides Plaintiffs with a cause of action for the taking of its

property under color of any state statute, ordinance, or regulation without just compensation as a

deprivation of its rights or privileges secured by the United States Constitution.

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132. The Councils denial of the Resolution and denial of the Application of the Mining

Permit has the effect of depriving Plaintiffs of substantially all of the Propertys economic value

and constitutes a deprivation of Plaintiffs rights secured by the United States Constitution under

the color of state law, entitling Plaintiffs to the remedies provided by 42 U.S.C. 1983.

133. The actions of the Council acting under color of state law also have deprived

Plaintiffs of its rights secured by the Fourteenth Amendment of the United States Constitution, in

that the Council, in denying the Resolution and the Application of the Mining Permit :(i) deprived

Plaintiffs of the notice and opportunity to be heard and (ii) acted arbitrarily, irrationally and

capriciously. The Councils actions thereby deprived Plaintiffs of substantially all of the economic

value of its Property.

134. 42 U.S.C. 1983 also provides Plaintiffs with the remedy of damages.

135. Plaintiffs have suffered general damages resulting from the diminution in the value

of its Property, special or consequential damages in the form of reasonable expenditures made in

preparation for its Propertys development, and profits lost because of Plaintiffs inability to

develop its Property. All of the aforementioned damages were proximately caused by the actions

of the Council, as aforesaid, acting under color of state law.

136. Plaintiffs are informed and believe that they are entitled to recover under said statue

reasonable compensation for the taking of its Property plus prejudgment interest, as well as

damages and costs, including reasonable attorneys fees and/or a judgment declaring the aforesaid

Mining Permits Ordinance invalid, in whole or in part, on its face or as applied to Plaintiffs.

FOR A TENTH CAUSE OF ACTION


(Attorneys Fees Under S.C. Code Ann. 15-77-300)

137. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated

herein.

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138. S.C. Code Ann. 15-77-300 provides that [i]n any civil action brought by the

state, any political subdivision of the state, or any party contesting state action, unless the

prevailing party is the state or any political subdivision of the state, the court may allow the

prevailing party to recover reasonable attorneys fees to be taxed as court costs against the

appropriate agency if (1) the court finds that the agency acted without substantial justification

and (2) the court finds that there are no special circumstances that would make the award of

attorneys fees unjust.

139. If Plaintiffs prevails in this action, they will be entitled to recover their reasonable

attorneys fees and costs pursuant to S.C. Code Ann. 15-77-300.

PRAYER FOR RELIEF

WHEREFORE Plaintiffs Red Bluff Trade Center, LLC and Red Bluff Rock, LLC pray

that:

a. the Court inquire into the matters and things alleged herein and reverse the decision of the

Horry County Council allowing Plaintiffs to mine their property;

b. award Plaintiffs reasonable compensation for the taking of its property, plus prejudgment

interest and actual and consequential damages;

c. the cost of this action including reasonable attorneys fees;

d. a judgment declaring the aforesaid Horry County mining ordinance, in whole or in part,

invalid as applied to Plaintiffs; and

e. for such other and further relief as the court may deem just and proper.

[SIGNATURE PAGE TO FOLLOW]

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THE PEARCE LAW GROUP, P.C.

By: /s/ Christopher H. Pearce


Christopher H. Pearce, Esquire
S.C. Bar No.: 71083
E-mail: cpearce@pearcelawgroup.com
Kerry K. Jardine, Esquire
S.C. Bar No.: 101090
E-mail: kjardine@pearcelawgroup.com
1314 Professional Drive
Myrtle Beach, South Carolina 29577
Telephone: (843) 839-3210
Facsimile: (843) 839-3214

ATTORNEYS FOR PLAINTIFFS RED BLUFF


TRADE CENTER, LLC AND RED BLUFF ROCK,
LLC

November 16, 2017

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