Five Bluffton residents are suing the Palmetto Bluff Club over a mandatory membership waiver. Residents think that the developer is overreaching its authority to soften membership requirements without a membership vote.
The Lawsuit That Started It All
Ian Ford is the attorney who represents the Palmetto Bluff members in the current lawsuit. However, this is not the first legal battle he’s handling with Palmetto Bluff Club. A separate group, also represented by Ford, filed a lawsuit against the club, South Street Partners, and ten other defendants in 2022. It alleged that the club unlawfully required homeowners to become club members. Moreover, the lawsuit indicated how facilities were overcrowded, and it attacked short-term rentals.
Palmetto Bluff Club attempted to stop the protest against the membership requirement. They did so by changing the policies in 2023, saying that all current and future residents were no longer required to join. However, they only emailed the changes without obtaining members’ consent.
Mandatory Membership Waiver
The current lawsuit, initiated by five Bluffton residents, is partially a response to the developer’s decision to waive mandatory membership from residents. Homeowners allege that the developer’s choice altered the structure of the community without amending the governing documents or obtaining consent from the residents. However, Rob Duckett, the Vice President of South Street Partners, says otherwise. According to Duckett, the club can waive the governing documents’ provision that mandates membership.
South Street Partners is the entity that bought the club from a different developer in 2022. The residents were not given the first option to purchase the club. As such, they allege that the structure of the developer-owned, for-profit club is the cause of Palmetto Bluff’s issues. Now, the members are suing the Palmetto Bluff Club over the mandatory membership waiver.
