Hilton Head Island, SC, September 19, 2025
News Summary
The South Carolina Court of Appeals has reversed a circuit court ruling in a property dispute involving Bittmint LLC and Harbour Town Surf Shop LLC over a right of first refusal from a 1973 covenant. The appellate court determined that factual disputes need jury consideration, impacting property rights in Hilton Head Island.
Hilton Head Island – The South Carolina Court of Appeals has recently intervened in a property dispute that has significant implications for property rights in Hilton Head Island. The case revolves around a litigation involving Bittmint LLC and Harbour Town Surf Shop LLC as plaintiffs who claimed a right of first refusal as specified in a 1973 covenant recorded by the original property developer.
Previously, the circuit court had favorably ruled for the sellers by granting a directed verdict, effectively siding with the defendants in the case. However, the appellate court found that this decision was incorrect, asserting that the questions at hand presented matters of fact that warranted consideration by a jury.
In its opinion, titled Bittmint LLC v. Johnson, the appellate court clarified the foundational aspects of the case. The plaintiffs had entered into a contract in 2017 to buy two commercial shops located in Sea Pines Plantation. Shortly thereafter, the sellers transferred the properties to a defendant who claimed to have validly exercised and assigned the right of first refusal.
Details emerged as the plaintiffs contested the defendant’s claim, arguing that the asserted right of first refusal contravened common law rules against perpetuities and breached the statute of repose. They claimed that the sellers acted improbably by transferring the property despite their objections, constituting a breach of contract.
As the appeal progressed, the plaintiffs contended that important factual disputes existed regarding both the validity and the timely exercise of the right of first refusal by the defendant. The appellate court’s analysis indicated that there was evidence suggesting multiple reasonable inferences about the enforceability of the right and whether the defendant acted within the designated 30-day exercise period.
Ultimately, the appellate court’s ruling led to the reversal of the earlier judgment by the circuit court, remanding the case for further proceedings. This decision indicates that the legal battle over the right of first refusal will continue, leaving the outcome uncertain and hinging on the resolution of these factual disputes.
The outcome is expected to have a lasting impact on similar property disputes in South Carolina, particularly those involving claims of first refusal which are often complex and fraught with potential legal pitfalls. Stakeholders in the local real estate market will be keen to observe how the enforcement of such rights are interpreted following this ruling.
Background of the Case
Rights of first refusal are common provisions in real estate agreements, allowing designated parties the first opportunity to purchase property before it is offered to others. This case illustrates the intricacies involved in the enforcement of such rights, particularly across different legal interpretations. The original covenant established in 1973 is particularly significant, as it set the stage for the current litigation tensions.
Legal implications
This ruling stresses the importance of equitable considerations in property rights disputes, emphasizing how intentions documented in covenants can lead to complex legal challenges, and how even historical agreements must be analyzed with contemporary legal standards in mind.
Conclusion
With the appellate court’s recent decision, the legal standoff concerning the right of first refusal is far from over. Both the plaintiffs and the defendant now prepare for the next stages of litigation, which will potentially reshape local property rights for years to come.
FAQ
- What did the South Carolina Court of Appeals decide? The South Carolina Court of Appeals decided on a property dispute case from Hilton Head Island.
- Who were the plaintiffs in the case? The case involved Bittmint LLC and Harbour Town Surf Shop LLC as plaintiffs.
- What was the dispute about? The dispute centered around a claimed right of first refusal tied to a 1973 covenant recorded by the original developer.
- What was the circuit court’s initial ruling? The circuit court had previously granted a directed verdict in favor of the sellers and the resort, siding with the defendant.
- What did the appellate court rule? The appellate court ruled that the circuit court erred in granting the directed verdict, as it was a question of fact intended for jury consideration.
- What was the opinion titled? The opinion issued by the appellate court is titled Bittmint LLC v. Johnson.
- What was the nature of the contract the plaintiffs entered into? The plaintiffs had entered into a contract in 2017 to purchase two commercial shops in Sea Pines Plantation.
- What did the sellers claim regarding the right of first refusal? The sellers transferred the property to the defendant, who claimed that the right of first refusal had been validly assigned and exercised.
- What did the plaintiffs argue regarding the right of first refusal? The plaintiffs contested that the claimed right of first refusal was invalid under common law rules against perpetuities and violated the statute of repose.
- What were the results of the appellate court’s decision? The appellate court found that evidence indicated multiple reasonable inferences concerning the enforceability of the right and whether the defendant acted within the specified 30-day exercise period and remanded the case for further proceedings.
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Additional Resources
- South Carolina Lawyers Weekly
- The New York Times
- Island Packet
- The Guardian
- Andscape
- Wikipedia: Hilton Head Island
- Google Search: Hilton Head Island property dispute
- Google Scholar: Hilton Head Island property law
- Encyclopedia Britannica: Hilton Head Island
- Google News: Hilton Head land dispute
Author: STAFF HERE HILTON HEAD
The HILTON HEAD STAFF WRITER represents the experienced team at HEREHiltonHead.com, your go-to source for actionable local news and information in Hilton Head Island, Beaufort County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the RBC Heritage golf tournament, Hilton Head Island Wine & Food Festival, and the Gullah Celebration. Our coverage extends to key organizations like the Hilton Head Island-Bluffton Chamber of Commerce and Community Foundation of the Lowcountry, plus leading businesses in tourism and hospitality that power the local economy such as Sea Pines Resort and Sonesta Resort Hilton Head Island. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
