LEXINGTON, S.C. — After years of back and forth between how much the former Carolina Water service property is worth, a verdict was made in court Friday in the case against them and the Town of Lexington.
The jury unanimously awarded $7.25 million to Blue Granite Water, the new name for Carolina Water, after a two week trial. The jury came to their decision after deliberating for nearly six hours Friday after hearing arguments from lawyers from both the town and water company.
The town offered to purchase the water service back in 2017 for $1.58 million before taking possession of the plant in 2018.
"You are entitled to fair market value of your property, no more but specifically not no less and what the town wanted to do they wanted to buy it for a song," said Joe Conner, lead counsel for Blue Granite. "We didn't say the system was worth a Taylor Swift song, but it was sure worth a good ole Hank Williams song and I think the jury found that too."
The Town of Lexington's Attorney David Black said in a statement, "it was a hard fought two week trial with a very attentive jury. The Town of Lexington is pleased with the jury's service and greatly appreciates their hard work."
"We appreciate the jury's service and were glad to have this matter settled and we look forward to providing quality service to the I-20 customers," said Laurin Barnes, the spokesperson for the town of Lexington.
The water service says they intend to seek attorney fees and cost from the Town of Lexington and the town also has a right to appeal the verdict.
THE TURBULENT HISTORY OF CAROLINA WATER SERVICE
Before it became Blue granite Water, Carolina Water Service had a history of violations cited by South Carolina's Department of Health and Environmental Control for discharging wastewater into the Saluda River.
Although the plant had been allowed to dump a certain amount of treated wastewater into the river, CWS had been cited by DHEC for failed tests for fecal coliform, biochemical oxygen demand (depletion in the oxygen levels in the river that threatens fish and other wildlife), and floating solids or visible foam near the company's I-20 facility.
In August 2016, DHEC denied CWS a wastewater discharge permit and required the facility to shut down within the year and tie into the Lexington sewer system.
Both the privately-owned utility and the Town of Lexington were ordered by DHEC to develop a coordinated plan for the transition.
Catherine Heigel, DHEC Director at the time, said in a news release then, "After several months of trying to get both parties to reach a solution, we have been left with no other option but to move forward with these orders. In the interest of public health, we continue to urge both the Town of Lexington and CWS to work together quickly to complete the transfer of the I-20 plant to the Town in accordance with the federal Clean Water Act."
In September 2017, it was reported that Lexington town officials offered to purchase CWS for $1.6 million after a study showed that the company needed equipment upgrades totaling nearly $9.5 million in order to stop sewage spills into the Lower Saluda River.
CWS was facing a $1.5 million federal fine at the time -- a result of a lawsuit brought by Congaree Riverkeeper Bill Stangler against CWS to end discharges into the Saluda River. CWS was found to be in violation of the US Clean Water Act.
According to court records, CWS valued their company -- two facilities serving 3,300 customers -- to be worth $13 million in 2015.
In October 2017, Lexington filed papers for condemnation of the CWS property and acquisition by eminent domain, offering $1.58 million in compensation to the utility's owners.
On February 1, 2018, former DHEC director Heigle was named the new president of CWS. She stayed at that position until August 2019.
In February 2018, the Town of Lexington formally took possession of the CWS plant near I-20. News reports quoted CWS Vice President Bob Gilroy as saying that the company had "worked diligently with the town to make sure this has been a smooth transition" after turning over the keys to the I-20 plant.
