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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
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,
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
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
4. Defendant Horry County (hereinafter, the County) is a body politic and corporate
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5. Defendant Horry County Council (the Council) is a body politic and corporate
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.
FACTS
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.
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,
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12. The Mining Permits Ordinance exists distinct, separate, and apart from and outside
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
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
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
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
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
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
25. Pursuant to the Code of Ordinances, since in or about 2006, there was no zoning
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
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
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,
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
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
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
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35. The Rezoning Review Sheet indicated that transportation information had been
36. The Rezoning Review Sheet indicated that Horry County Staff recommended
37. On or about February 21, 2017, the Council enacted Ordinance 06-17, which
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
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
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
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
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
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
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.
57. Again, upon information and belief, there is no official transcript of the September
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
62. Plaintiffs relied on Mr. Schwerds communications with Mr. Wooten and had no
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
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
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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
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.
72. Plaintiffs incorporate the foregoing paragraphs as if fully and completed restated
herein.
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
75. More specifically, the Councils decision denying the Resolution and issuance of
the Mining Permit should be reversed for each of the following reasons:
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c. The Councils decision and the Mining Permits Ordinance deprives Plaintiffs
wit: County council shall consider the adequacy of the transportation network
f. The Mining Permits Ordinance allowed Council to act with unbridled discretion
h. The Mining Permits Ordinance, including Section 13-63, conflicts with South
Carolina state law, specifically, the Planning Act, and any decision based
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
76. Plaintiffs are therefore entitled to an order reversing the decisions of the Council.
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
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.
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.
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
89. The Mining Permits Ordinance, in whole or in part, is a limitation and condition on
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.
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:
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c. The law vests arbitrary and unfettered discretion in the Council in determining
d. The law irrationally, arbitrarily, and capriciously deprives individuals and entities
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
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
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
104. There are no findings of fact or conclusions of law made by the Council relating to
the Resolution.
106. Plaintiffs have been deprived of developing an adequate record to appeal due to the
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.
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
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110. Plaintiffs had both the intent and capacity to develop the Property as aforesaid, and
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
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
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
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
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
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
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.
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
127. A finding of value must be considered under the Takings Clause by reference to the
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
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
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
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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
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
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.
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
139. If Plaintiffs prevails in this action, they will be entitled to recover their reasonable
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
b. award Plaintiffs reasonable compensation for the taking of its property, plus prejudgment
d. a judgment declaring the aforesaid Horry County mining ordinance, in whole or in part,
e. for such other and further relief as the court may deem just and proper.
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THE PEARCE LAW GROUP, P.C.
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