Callawassie club members must pay dues, even after resigning, says SC Supreme Court

On Wednesday, the S.C. Supreme Court ruled in favor of the Callawassie Island Club, concluding a case that begun in 2011, according to a news release from Group 46.

The ruling upholds a members agreement which requires members to keep paying dues, even after resigning. The club members must pay or transfer the membership to someone else.

“The wider significance of the ruling stems from its impact on any community development that includes club amenities and privileges, a sector prominent in the economic life of our region,” the release states. “For the Callawassie Island community, the Supreme Court ruling marks the ending of a long-running dispute and helps return attention to the widespread sense of satisfaction enjoyed by residents and club members.”

Callawassie Island Club has taken legal action against members for resigning from the club and not paying their dues since 2012.

Club members have argued that the club is separate from the homeowner’s association as a nonprofit organization — allowing them to leave at any time and forego their dues.

A S.C. Court of Appeals ruled in favor of the members in 2016. Tuesday’s decision from the Supreme Court overturns the 2016 decision.

Court filings show members have filed for bankruptcy in the past. Others have tried selling their memberships at discounted prices.

This story was originally published August 29, 2018 at 6:26 PM.