Hilton Head town council member files another lawsuit against government critic

A Hilton Head Island town council member has filed a new lawsuit against a government critic she contends defamed her, saying an insurance policy that could be used to pay her if she wins her case has been canceled.

The lawsuit was filed Wednesday by council member Kim Likins and names critic Skip Hoagland, his wife, Catherine, and their homeowner insurance provider — Privilege Underwriters Reciprocal Exchange (PURE).

Likins initially sued Skip Hoagland for defamation in December 2015.

According to the latest lawsuit, filed in Beaufort County Circuit Court, the Hoaglands had $7 million in liability coverage, but their policies were terminated through a “policy buy-out agreement and release,” in which $200,000 was paid to Catherine Hoagland.

Likins is asking for a jury trial and for a judgment declaring the agreement between PURE and the Hoaglands “null, void and unenforceable with respect to Likins’ claim,” so that she can “retain her right to seek coverage under” the PURE policies in the defamation lawsuit.

The suit is also asking that PURE hold the $200,000 payment “for the benefit” of Likins.

“The reason they’re doing this is because they’re in fear they won’t win this (defamation) lawsuit ...,” Skip Hoagland said Thursday. “I have every right to criticize public officials.”

Likins, her attorneys — John Linton and Gregory Alford — and PURE did not immediately respond to requests for comment Thursday.

Barrett Brewer, an attorney for Hoagland, said Thursday he was unable to comment on the lawsuit because he had not yet seen it.

Likins‘ initial suit alleges Skip Hoagland made defamatory statements about her in connection with her roles as a director of the Hilton Head Boys and Girls Club and as a Town Council member.

The new lawsuit claims PURE issued a homeowners insurance policy to the Hoaglands that included liability coverage of $500,000, along with another policy. PURE is a “high net worth insurance” that is “designed exclusively for financially successful families,” according to its website.

Likins subpoenaed the Hoaglands’ insurance agent to get copies of full insurance policies. It was then discovered that the Hoaglands had a total of $7 million in coverage, according to the suit.

PURE filed suit against Hoagland, Likins and Bluffton Mayor Lisa Sulka — who is in a separate defamation suit against Hoagland — in October 2017 asking for a declaration that the policies did not provide coverage for claims made by Likins and Sulka. Likins’ latest lawsuit claims she was never served with PURE’s lawsuit.

PURE and the Hoaglands, however, “have purportedly settled” by releasing PURE from all liability in the Likins case, and by paying Catherine Hoagland $200,000, according to the lawsuit.

Likins’ defamation suit against Hoagland has cost taxpayers $201,545 since it was filed in 2015.

Last August, Town Council voted to switch the payment method from hourly billing to a contingency fee arrangement. Thirty percent of any award would first be paid to the law firms. The remaining 70 percent would go toward reimbursing the town for its costs with any leftover balance going to Likins.

Under the agreement, the town is still responsible for litigation costs. Since August 2017, $2,606 has been paid for court reporting services, director of finance John Troyer said last month.